Underground utility district fails

A majority of the property owners included in a proposed underground assessment district voted it down, perhaps sounding the death knell for future projects.

Canyon Acres property owners opposed the formation of AD 08-1 by a 59.8% to 40.2% vote, including the city’s four votes in favor of the project, as approved by the council. The vote by the property owners in Summit Drive/Van Dyke portion of the district was closer: 50.5% opposed, 49.5% in favor. The vote was taken and the results announced at the Sept. 15 council meeting.

“We will have to consider if [the city] wants to even proceed on any more of these projects,” City Manager Ken Frank said.

If the property owners reject a district, the city must pick up the tab for preliminary work.

“We are accumulating the figures now,” Public Works Director Steve May said. “It will be somewhere between $80,000 and $100,000.”

The city requires a petition for the formation of a district to have 70% of the property owners in favor, but Proposition 218 requires only a simple majority to approve or reject the district at the ballot box.

Canyon Acres had 111 assessable parcels, including the city’s four, and the Summit Drive area had 15.

Assessments for the Canyon Acres property owners was based on improved safety, reliability and aesthetics. Assessments for the rest of the district included view enhancement.

Total assessments in Canyon Acres ranged from $16,668 to $21,520. Annual assessments were projected to range from $1,628 to $2,072, assuming a tax rate of 5%. Summit Drive zone total assessments ranged from $15,013 to $21,668. Annual assessments were estimated to range from $1,608 to $2,328, assuming a 7% interest rate.