Local Improvement District (LID) Process
The Contracts and Standards Division administers the CBJ Local Improvement District (LID) Program. Local Improvement Districts are formed in order to provide construction improvements for some utility and street improvement projects within the borough. The LID program is administered according to section 15.10 of CBJ Code. CBJ Codes are available online through the CBJ Law Department website at www.juneau.org/law.
This LID process has been initiated by either the City and Borough of Juneau (CBJ) or the impacted property owners. If initiated by the property owners, the residents may submit a petition to the CBJ to create an LID. It must be signed by a majority of the property owners in the proposed area. If the CBJ Assembly’s Public Works & Facilities Committee (PWFC) determines that the project warrants continuing the LID process, the CBJ Engineering Department shall prepare a preliminary project cost estimate and recommend an apportionment method. The CBJ may then send the property owners a “ballot” with a preliminary cost estimate to conduct an informal poll and determine the level of support for the project.
CBJ staff conducts a publicly advertised Neighborhood Meeting with affected local residents and the general public. Local residents are contacted individually by mail and through advertisement in the local newspaper. The purpose of the Neighborhood Meeting is to explain the scope of the proposed project, the LID process, and the proposed method of assessment for the benefited properties.
INFORMAL POLL OF PROPERTY OWNERS
The informal poll of property owners is used by the PW&FC to determine whether to proceed with the formal LID process. Poll ballots are mailed to affected property owners for their vote on forming the LID. The CBJ Engineering staff will receive the ballots and prepare a summary for the PW&FC to review and approve or reject proceeding with the LID.
LID IS FORMED
Once an LID is recommended by the PW&FC, an ordinance creating the LID is introduced to the Assembly, and the date is set for the Public Hearing on the proposed LID. Notice of the hearing is published in the Juneau Empire and sent by certified mail to all involved property owners at least 30 days in advance of the Public Hearing. During this 30 day period, property owners may file written objections to the formation of the LID. If property owners who would contribute 50% or more of the total amount of assessments file such written objections, the LID must be canceled, unless at least eight Assembly members vote to proceed. If the ordinance is passed by the Assembly, the LID is formed. CBJ contracts with a construction contractor for the improvements (through a competitive bid process), and construction proceeds.
AFTER CONSTRUCTION IS COMPLETE
The final LID hearing is scheduled and, at least 15 days in advance of the hearing, notice is sent by certified mail and published locally. The assessment roll is certified and adopted by the Assembly, and LID assessments are recorded as liens against the property assessed.
PAYMENT OF ASSESSMENTS
Each property owner can elect to pay the LID assessment either all at one time or in ten annual installments along with the regular property tax payment. If the 10 year installment plan is chosen, the interest rate for this option is set by the CBJ Finance Department and is based on the cost to the City and Borough to finance the LID local contribution.