Water and Sewer Improvement District Program
What Is An Improvement District?
An improvement district is a public capital improvement to install water (WID) and/or sanitary sewer (LID) mains into a neighborhood. Property owners who benefit from the installment of the mains elect to pay for the improvements through special assessments which are levied against their property.
Who Pays For Constructing Improvement District Mains?
Benefited property owners pay the costs through special assessments levied against their property after the project is complete. Assessments are payable in annual payments, up to 20 years.
What Is An Assessment?
An assessment is a parcel’s share of project costs to install a water or sewer main. It may, or may not, include service connection costs from the main to your property.
How Does the Improvement District Program Work?
An Improvement District begins with a request from neighborhood property owners who want public water and/or sewer service. Next, AWWU evaluates the potential of each service request. Balloting for an improvement district follows to determine the level of support. If approved, the project can begin with the start of next construction season.
Ballots and Elections
AWWU ballots property owners to get a confirmation for:
1) Property owners' interest in the project; and
2) The cost sharing method (or allocation) property owners prefer.
Two methods are sanctioned by AWWU’s tariffs and are described below. The process consists of a preliminary ballot and, depending on its results, a second ballot to approve final cost estimates.
Property Assessment Methods
Benefited Area Assessment Method
The benefited area for a parcel is measured from the property line that is adjacent to the water or sewer main to a depth of 150 feet within the parcel.
Benefited Area = Frontage x Depth (to a maximum depth of 150’)
The total project costs are divided by the total benefited area of all parcels in the district and a rate is established. This rate is then applied to each parcel’s benefited area to determine each parcels share of the total project costs.
Equal Assessment Method
The total project costs are equally divided among all parcels that benefit, regardless of the parcel sizes.
Equal Assessment = Total Project Cost ÷ Number of Parcels
Ballot 1: Preliminary Interest - Survey and Project Cost Allocation
Ballot 1 asks property owners to declare whether they favor or oppose the project, and, if in favor, the method they desire to distribute project costs among the properties in the district. If more than 50 percent of the ballots are returned favoring one method, AWWU will send Ballot 2.
Failure of property owners to attain more than 50 percent for a single payment method terminates the project.
Ballot 2: Final Interest Survey
If property owners return Ballot 1 to AWWU with over 50 percent in support of a specific cost allocation method, AWWU will prepare cost estimates for a second, and final, ballot. This second ballot will include an estimate assessment for each parcel as calculated by the method chosen in Ballot 1.
If Ballot 2 is returned with a favorable response from properties owners who will assume more than 50 percent of the total project costs, AWWU will present the project to the Municipal Assembly for creation.
Your Vote Counts!
To ensure your vote counts - deliver or mail your ballot no later than the date printed on the ballot package.
The Weight of Your Property’s Vote
On the first ballot, all parcels have an equal weight in the election.
On a second ballot (if applicable and contingent on the district having selected a method), the weight of a parcel's vote is directly proportional to the parcel's share of the total project cost.
District Creation
After the ballots are collected and the property owners have supported the creation of an improvement district, the project goes before the Municipal Assembly as a Municipal Ordinance for review and approval. The Ordinance includes a general description of the project and contains an estimated assessment for each parcel.
The Assembly will schedule a public hearing at which time property owners will have the opportunity to testify. Following the public hearing, the Assembly may approve the Ordinance. If approved, the Ordinance is recorded with the State’s Anchorage District Recorder’s Office and AWWU begins to design the improvement project.
Design and Construction
Property owners may be contacted throughout the design and construction phases of the improvement project for information and decisions. For example, you may want to discuss the location of the service connections to your property line during the project’s design.
Final Assessment Calculations
Final assessments are calculated when certified, actual project costs are known. Project costs are allocated to the parcels using the method approved by property owners in the Creation Ordinance.
Assessments are presented to property owners, then to the Assembly. After the public hearing, the Assembly typically confirms the assessment “roll” and approves to levy the assessments. At this point, the assessments become liens against the properties until paid in full.
Assessments are payable in equal annual installments, with terms ranging from one to 20 years, depending on the amount of the assessment. Interest is charged on unpaid balances. First installments are usually due within three to four months following Assembly action.
Assessments are payable in accordance with AWWU’s tariffs at the time of levy. From time to time the tariffs are subject to change.
Contact AWWU's Assessment Office, 564-2716, for more information.