What is a management district?
Although relatively new to Fulton Avenue, nearly 1000 Management Districts currently operate throughout the United States and Canada.
A Management District provides essential services, such as increased landscaping, security, maintenance, and economic development in addition to those provided by local government. These services are concentrated within a distinct geographic area and are paid for by means of a special property owner assessment. The organization responsible for providing these services is governed by a Board of Directors representing those who pay. Many districts have been formed as a local business community response to declining municipal budgets and services.
Management Districts are proven to work by providing services that improve the overall viability of business districts resulting in higher property values and sales volumes.
The Fulton Avenue Management District was formed pursuant to a State Law that took effect in January, 1995. The “Property and Business Improvement District Law of 1994,” which was signed into law by Governor Pete Wilson, ushers in a new generation of Management Districts in California by allowing a greater range of services and independence from government. The following are key provisions of the new law:
Property owners, merchants, and other Fulton Avenue stakeholders have emphasized that an assessment formula for the proposed Management District be fair, balanced, and commensurate with benefits received.
Each property owner will pay based on benefits received. The variables used for the assessment formula are gross lot square footage and linear street frontage along Fulton Avenue. Lot square footage is relevant to the highest and best use of a property and will reflect the long-term value implications of the Management District. Street frontage reflects the benefit derived from services provided directly on the street. By incorporating the frontage variable, properties off of Fulton Avenue that receive less benefit from the District, pay less assessment.
Annual assessments on property throughout the proposed district is $0.02 (2 cents) per square foot of land plus $8.50 per linear front foot along Fulton Avenue.
For example, a parcel with 30,000 square feet of parcel area and 100 of street frontage would pay $1,450 per year. [(30,000 x $.02)+(100 x $8.50) = $1,450.00.] The same parcel with no frontage along Fulton Avenue would pay $600 per year. [30,000 x $.02 = 600.]
Proposition 218 and Publicly Owned Properties
Under “The Right to Vote on Taxes Act” (also known as Proposition 218) all public properties are required to pay assessments unless they can demonstrate by clear and convincing evidence that their property does not receive benefit. Any and all public properties within the district boundaries must comply with this constitutional requirement.
Apartments and Mobile Home Parks
Apartments and Mobile Home Parks, while residential in nature, also have a commercial component. These properties derive some benefit from the proposed improvements, but do not receive as much benefit as the other properties included in the proposed district. The primary benefit received by these properties is in relation to their frontage along Fulton Avenue. Therefore, apartment and mobile home park properties shall be assessed based only on $8.50 per front foot along Fulton Avenue, and shall not be assessed the $.02 (two cents) per square foot of parcel.
An Assessment Notice will be sent to owners of each property in the Management District. The Assessment Notice provides an estimated assessment based upon the lot front footage and lot square footage of each individual property. The final individual assessment for any particular property may change, up or down, if the lot square footage factor or front footage factor differs from the data available from Sacramento County.
Time and Manner for Collecting Assessments
As provided by State Law, the Fulton Avenue Management District assessment will appear as a separate line item on annual Property Tax bills prepared by the County of Sacramento. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Sacramento shall distribute funds collected to the FAA pursuant to the authorization of this Plan. Existing laws for enforcement and appeal of Property Taxes apply to the Management District assessments.