Special Improvement Districts
Special Improvement Districts (SID) may be formed by property
owners to bring their neighborhoods up to City Standards by
installing items such as:
- curb and gutters
- street lights
- water mains
- sewer mains
- fire hydrants
- and other miscellaneous improvements
Special Improvement Districts are formed in accordance to the
Arizona Revised Statutes Sections 48-571 to 48-619 both
inclusive and amendments thereto.
At the request of a property owner, City Staff prepares a
cost estimate and survey of interest. By State law, the City can
initiate a Special Improvement District without a request from
any of the property owners. However, to save time and money, a
survey of interest is circulated around the neighborhood by one
of the property owners to determine the overall interest.
This survey is only advisory, and indicates to the City the
interest of the property owners in accepting the estimated
assessments for the desired improvements. Upon receipt of the
survey, if it appears there is an adequate amount of support,
the survey along with the cost estimate, and all other pertinent
data is presented to the City Council for their review and
authorization to proceed with the design of the requested
Special Improvement District.
After the design is completed, but before the construction
can begin, the City Council passes the Resolution of Intention.
This Resolution states the City's intention to form the Special
Improvement District and describes the improvements and property
to be assessed. The Resolution is published five (5) times in a
daily newspaper. A "Notice of Proposed Improvements" is posted
along the line of the proposed improvements at intervals not
more than 300 feet apart.
After the publication and posting has been completed,
property owners within the district boundary may, within 15
days, submit a written protest on the formation of the district
or object to the extent of the assessment district in writing.
If the written protest received is clearly less than a majority
of the front footage, no hearing is required. If the protest
received appears to represent a majority, a hearing must be
After the protest period has been completed, and assuming the
district was approved by the Council, the Council will then pass
a Resolution Ordering Work. Sealed bids are then received on the
work in accordance with the approved plans. During construction,
all work is inspected under the jurisdiction of the
Superintendent of Streets, of the City of Mesa.
The actual costs of the improvements are assessed to the
properties within the district boundary proportional to the
benefits derived from the improvements. The method of
distributing the costs may vary based upon the type of
improvements and the property use. Assessments can be calculated
on front footage, square footage, units, etc...
As a general policy, the City of Mesa will not assess more
than the amount shown on the assessment estimate map that was
included with the official survey. Estimates are usually
guaranteed for a period of six months.
After the assessments have been recorded, a Notice of Special
Assessment Due is sent to each of the believed property owners
as shown on the Maricopa County tax rolls. At that time the
following payment options are available:
(a) Cash Payment: All, or any portion of the
assessed amount may be paid in cash without interest or
penalties within thirty (30) days from the Warrant Date.
(b) Installment Plan: After the thirty (30) day cash
collection period ends, the remaining unpaid assessment balance
will automatically be set up on the installment plan. It is then
payable over a ten (10) year period in ten (10) equal annual
installments. Interest will be added to all assessments that are
paid on the installment plan. The interest rate is based upon
the most current bond rate at the time the Resolution of
Intention is passed. The principal payment is due annually on or
before December 1st of each year. Interest on the assessment
will begin from the warrant date and is due semiannually on or
before June 1st and on or before December 1st of each year.
Statements are mailed thirty (30) day in advance to the last
known address of the person believed to be interested in the
property. Installment payments are made to the City of Mesa,
Special Assessment Division, Finance Department, P.O. Box 1466,
Mesa, Arizona, 85211-1466.
If the installment payments are not made on or before the due
dates, penalties for delinquency are attached. If not paid
thereafter, the property is subject to advertisement and sale.
Note: This installment plan is made possible by the sale
or issuance of Special Improvement District Bonds that have a
guaranteed return to the bondholder. Therefore, if a property
owner decides to pay their assessment off early, they must pay
the remaining principal balance due, together with all accrued
interest thereon to the date of prepayment, and in addition they
must pay a prepayment penalty of one eighth (1/8) of once
percent (1%) per month on the entire principal balance being
paid, for the period between the date of prepayment and date
that last principal payment would have become due had no
prepayment been made.
For additional information, contact
Anthony Araza at