A Refresher on Special Assessments

Since the Apple Dumpling Gang of inept crooks is attempting to steal our money again, and they are trying to appear that they are doing it legally, let’s review the laws.

This download is from the Department of Revenue. This is more of a layman’s guide, and I’ll publish another post with the actual statutes. Let’s get started.

It is my belief that the Board is still pointing to the Special Maintenance Fee and trying to say that’s what we have been paying. However, the actual statute makes it clear this is not the case. I’ll provide that just after page 8.

Ok, we have arrived at the “Special Maintenance Fee” mention. One paragraph. 10 pages of info and we have one paragraph pertaining to Special Maintenance Fees. And to read the above, it is possible to construe that it means the road district can impose this fee. Especially if that’s what someboy wants to construe. But here is the actual statute:

Leaving aside that it is still our contention that a road district does not have the power to impose a special maintenance fee, because it is NOT mentioned in the SDCL 31.12a chapter for road districts, it is still clear that they cannot simply charge everybody in the district the same fee. They can only charge owners with property that front or abut the improvement.

In 2021, this law was updated to include 2 exemptions, which currently do not appear to apply here.

The main meat to be concerned with here is this statute is the ONLY statute that pertains to Special Maintenance Fees. This fee is not mentioned in the Road District chapter, SDCL 31.12a. The Road District chapter mentions only Special Assessments or levies as possible forms of funding. Now the Board has stated that because the special maintenance fee is mentioned in the chapter that we are referred to for ‘how to govern the assessment’, that we can therefore use it. As if it were the same thing.

If it were the same thing, meaning it was simply one form of a special assessment, then you would still need to follow ALL the required steps for a special assessment. And those steps are discussed in this download, but are also stated pretty clearly in the actual statutes in SDCL 9.43, the chapter on special assessments.

This download implies they are not the same thing as in the beginning this download states: “Special Assessments are a financing mechanism that allow payment for improvements by those who benefit, or for specific items, rather than general taxation.

Maintenance Fees (see page 8) are fees that municipalities are allowed to charge for maintenance of improvements. This Guide will deal with both items.”

“This Guide will deal with both items,” implies they are two different items. So, again, we contend that the road district does not have the authority to impose a special maintenance fee. If it did, it would be a special assessment, and therefore require the mandatory steps.

Still with me?

To add to this, the idea that ‘because it was mentioned in the chapter we are referred to, we therefore can utilize it,’ implies the road district can build a sidewalk, because sidewalks are mentioned in SDCL 9.46. Of course, we have heard the board members state they can build sidewalks for this very reason.

They likely think they can build alleys, too. Or a utility company.

The following is the list of required steps to impose a special assessment or a special maintenance fee.