LID Assesment

What is a LID Assessment?

A LID stands for Local Improvement District Assessment.  A Local Improvement District is a method used by local governments to pay for a portion of the cost of developing a local improvement, such as a sewer or a street.  The assessment is charged to properties in the district, the district is formed of all the properties that receive a benefit from the improvement.

LID’s can be used to help properties finance improvements to make their property safer, provide needed utilities, improve ascetics, or make it more marketable for development.

Coburg Wastewater Project Local Improvement District Assessment

In 2011, the Waster Wastewater Local Improvement District was established to help finance the construction of the Coburg wastewater system.  The City Council held multiple public hearings and heard testimony from property owners, and as a result of those sessions, there were some changes to the methodology of the assessment.

With the completion of the project in August 2014, the City Council of Coburg  adopted Ordinance A-231: An Ordinance Levying Certain Final Assessments for Wastewater Improvements. Construction was completed in August of 2014, and pursuant to Coburg ordinances and state law, the assessment was charged for properties within the LID. 

All property owners in Coburg were notified of the assessment and were given the opportunity to make corrections to the property size listed in the adopted assessment role, and to file objections to other aspects of the assessment. 

Assessment billings were sent out in October 2014 and were due in December 2014.  Property owners were given the choice of paying the assessment in full, monthly, or annually over a 10 year financed period.  Contracts were required for property owners who chose to finance their assessment through the City of Coburg.  Interest rates are 7% per annum for annual contracts and 6.8% per annum for monthly contracts.  A City Lien was placed on properties choosing to finance their properties.  These liens are removed when a LID assessment has been paid in full. Property owners who did not respond to the assessment billings are considered delinquent and a County lien has been placed on their properties.

QUESTIONS?

If I sell my home with a pending lien, will I still be financially responsible?

• Ordinarily, the lien must be satisfied as a part of the sale.  There might be some circumstances where the City would agree to subrogate the lien that is, keep it in place after the sale (as long as payments are made), but many mortgage companies will not accept that situation.

If I paid the LID Assessment in full, then develop my property, will I need to pay a wastewater SDC?

• You will receive a credit for the LID assessment as a part of calculating the SDC.  There are also SDC credits for paying sewer user rates after the property is developed.  These credits apply to the reimbursement portion of the SDC.  There is also an improvement portion of the wastewater SDC.  The LID will not be applied as a credit for that element of the wastewater SDC.

Can I petition for another LID for other improvements around my property?

• Yes. LID’s are often started with interested property owners approaching the City about desired improvements, usually in the form of a signed petition. The more property owners who are interested in the LID for a given area the more likely a successful formation will occur.
• After the petition is received by the City, the City will approach relevant neighbors and may send out an interest survey to all properties within the proposed LID boundary.  Surveys help the City judge the number of properties in favor of the proposed improvements. Generally, a response in favor of the improvements, of at least 50% of the participating properties is required to move forward. If there is enough interest, staff will recommend to City Council that the LID be formed and a public formation hearing will be held.

PO Box 8316 Coburg, OR 97408 - Phone: (541) 682-7852
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