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Can the cost of connecting a home to the public system be added to the property tax assessment?
This cost is negotiated between you and a private contractor. Each homeowner pays for this work separately from the assessment.
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Do the utility companies contribute to the cost of the undergrounding?
The utility companies do not contribute funds to undergrounding districts. Some portion of the surcharges found in your electric bill goes to local communities to help underground utilities in areas that benefit the public in general (such as Coast Highway) rather than specific local neighborhood
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How Am I Billed?
Residential solid waste collection charges are included with the annual property tax statement. Commercial collection is billed directly by Waste Management of Orange County on a monthly basis. Properties with 5 or less dwelling units are classified as residential. Properties with 6 or more dwelling units or properties used for commercial purposes are considered commercial.
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How are assessments calculated?
A Preliminary Report and a Final Report are prepared. The reports describe the scope of the project and list all costs and assessments to be levied. Assessments are based on the special benefit that each property receives from the improvement project. For instance, properties gaining enhanced views, safer conditions and improved neighborhood aesthetics pay higher assessments than properties only benefiting from safety and aesthetic improvements. The reports are made available at City Hall for your review and during the hearing process.
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How do I pay for it? Is the assessment tax deductible?
Assessments are placed on your property tax bills to be paid over a 15 year financing period typically. If preferred, you may pay the assessment in full during a 30 day period before the bonds for the project are issued. Cash payments are made to the City Treasurer. Consult your financial advisor for your tax related questions.
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How much does it cost?
Costs vary substantially from project to project depending on physical constraints impacting construction access and feasibility, the number of parcels sharing the costs and the number of transformers and lines to be placed underground. Recent costs for a single family dwelling ranged from $8,000 to $20,00
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Is financial assistance available?
The State offers two programs to assist persons who meet minimum requirements for economic and physical hardship. See earlier sections of this report for general information on these programs or call the Laguna Beach Senior Center at 497-2441 or the State Controller?s Office at 1-800-952-5661.
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Is the interest rate fixed or variable? At what rate?
The interest rate is fixed and is set at the time the bonds are sold. Recently, rates have averaged between 3 and 5 percent, but will vary depending on economic fluctuations.
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Is there any benefit for me to prepay my share? Can the assessment be paid after the cash pay-off period has lapsed?
If you choose to prepay your assessment during the cash pay-off period, you do not have to pay for certain bond issuance costs, representing a discount of about 8 to 10 percent. Also, you do not have to pay for the interest charged over the life of the bond. The financing company charges a penalty up to three percent if you choose to prepay your assessment in full after the cash pay-off period and before the bonds mature.
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What costs are included in the Project?
Two thirds of the cost for a recent project were construction related. Each utility charges for its expenses to design and convert the system. Other expenses include engineering, legal, administration and bond issuance costs required to finance the project.
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What do I do if I have other questions?
Call Joe Chiquete at the City of Laguna Beach at 497-0338
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What if I sell my home before the debt is paid in full?
This is a matter that can be negotiated between the buyer and the seller. As a lien to the property, the assessment is transferred to the new owner unless you pay it off in full. Ask your realtor and tax advisor for advice.
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