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Homer Natural Gas Special Assessment District - How Will it Work?

Stage 1 – Initiation of HSAD by Resolution
Council initiated the Homer Natural Gas Special Assessment District by Resolution 12-069 on July 23rd 2012.

Stage 2 – Neighborhood Meeting/Improvement Plan
The City will hold a series of meetings for record owners of real property in the Homer Natural Gas Special Assessment District this fall. Many, but not all, lots in the City of Homer will be included in the Homer Natural Gas Special Assessment District. Some reasons for lots to be excluded are if they do not have a developed access to their property or they are unlikely to be developed. Council adopted criteria to guide the decision making process on what lots to exclude in Resolution 12-076.

At the neighborhood meeting, property owners will receive an improvement plan that includes proposed boundaries, design, cost estimate, assessment against properties, method for allocating costs among the properties, and the time period which assessments will be financed. You can view the Improvement Plan that was adopted by City Council at the September 24th meeting here.

Stage 3 – Public Hearing/Written Objection
A public hearing is scheduled and published. The City is aiming for January to hold a public hearing. Property owners will receive notice via certified mail no less than 60 days before the hearing.
A record owner of real property within the Homer Natural Gas Special Assessment District may file a written objection to the improvement plan no later than the day before the public hearing. If owners of real property that would bear 50% or more of the assessed cost of the improvement (building a natural gas distribution system) file timely written objections, Council may not proceed with the improvement unless it revises the improvement plan to reduce the assessed cost of the improvement that is borne by objecting owners to less than 50% of the assessed cost of the improvement. In the event of a boundary change Council must pass a resolution and all property owners shall be notified of the change.
Council will hold the public hearing and then vote on a resolution determining to proceed with the construction of a natural gas distribution system for the City of Homer.

Stage 4 – Contract for Construction/Solicitation of Bids
a. After the Homer Natural Gas Special Assessment District is created, Enstar will solicit bids for construction. If cost of constructing the natural gas distribution system will exceed 115% of the estimated cost in the improvement plan, property owners will be notified via certified mail of the increased cost.
b. If record owners of property that would bear 50% or more of the cost of the improvement object in writing, the City will not contract to construct the improvement

State 5 – Assessment Roll and Objections
a. After completion of the natural gas distribution system, Council shall assess costs to each property benefited in the district.
b. An assessment roll will include the name and address of the record owner, Kenai Peninsula Borough Parcel number, property description, amount assessed, and assessed value of the property.
c. A hearing is scheduled to hear objections to the assessment roll.
d. Property owners are notified of the hearing date and sent the assessment roll via certified mail.

Click here for frequently asked question on the Homer Natural Gas Line Special Assessment District.