The concept of a special assessment contains little dark secrets that city officials like to keep to themselves. The ability to assess the cost of maintenance — a questionable concept at best — is the only thing allowing many cities to avoid facing their true reality. Elected officials and the public need to understand assessments, their legal and practical implications, and the dramatic shift that is likely to happen as more taxpayers resist paying them.
Last Friday, I received a couple of boisterous reactions by email to the Baxter assessment story I linked to. These guys were livid, and I suspect many others will be as I discuss it more fully here today. I too often forget that people don’t know this stuff. I’ve been immersed in it for years and have, as a mostly powerless bystander, become numb to it. Thanks for the reminder — this will be eye opening for many.
As we’ve discussed at Strong Towns for years, almost all of America’s cities are financially insolvent. They have far, far more liabilities than they have revenue that they can tap into to pay for those commitments. This is the result of 60 years of the Suburban Experiment, a development pattern that creates (for a while) the illusion of wealth by allowing cities to exchange near term cash benefits associated with new growth for long term liabilities associated with infrastructure maintenance. We’re now in the long term and, financially, everything is breaking down.