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Resolution to Adopt Non-Ad Valorem Special Assessment for Village at Hill-N-Dale Multi-Purpose Municipal Service Benefit Unit and Establishment of Future Maximum Rate
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BRIEF OVERVIEW
The Village at Hill-N-Dale Municipal Service Benefit Unit (MSBU) was created by Ordinance 1984-01 to provide for the maintenance and operation of a street lighting system. The annual operational expenses have steadily increased beyond the annual assessment revenue received, thus diminishing reserves. In addition, Withlacoochee River Electric Cooperative (WREC) is gradually phasing out older Sodium Vapor fixtures at a monthly cost of $6.52 per light and upgrading lights to a LED style Cobra fixture at a monthly cost of $12.51 per light for both replacement and additions within the district. These anticipated changes in fixtures will have further impact on the overall operational cost to the district in the coming years. The Village at Hill-N-Dale MSBU currently has twelve Type 110 and one Type 620 Coach-Post Top (Sodium Vapor) lights and two Type 210 LED Coach Lights.
As a result, the Village at Hill-N-Dale MSBU district's assessment revenue can no longer support the increasing annual operating expenses and maintain the required 18% reserves at the current assessment rate of $45.00. The projected operating expense for FY 2025 is $50.00 per unit. Assuming an estimated 2% annual inflation on utility services, the projected operating expense for FY 2026 is $55.00 increasing to $65.00 by FY 2030.
Therefore, staff recommends increasing the FY 2026 non-ad valorem assessment rate to $50.00 per unit to operate the 15 street lights; and increasing the maximum assessment rate from $45.00 to $70.00. The MSBU contains 80 units and the estimated annual assessment revenue to be collected is $3,800 based on 95% collection rate.
Current Proposed Proposed Rate
MSBU Name Fund Rate ...
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