Batavia aims to establish tax-funded back-up plan for new community development maintenance

Batavia plans to establish a new special service area that would act as a tax-funded fail-safe in case common areas of the soon to be developed Ashton Ridge subdivision are not maintained.

Atlanta-based developer Pulte Homes, LLC plans to build a mixed residential development known as Ashton Ridge at 1000 McKee St. It will consist of 73 single-family homes and 86 townhomes. The development will be built on 32 acres of vacant land located on both sides of McKee Street west of Van Nortwick Avenue and north of Wilson Street.

The City Council approved plans for Ashton Ridge at its Aug. 5 meeting and developers are hoping to have the first model homes open by the end of the year.

Council members now are planning to establish a special service area, SSA 71, for properties in the Ashton Ridge subdivision development. The SSA was proposed at the Aug. 19 City Council meeting.

The Ashton Ridge properties will be served by common facilities including privately maintained stormwater management facilities and associated improvements, common areas and landscaping.

The SSA would allow the city to impose an additional tax levy on parcels within the development that benefit from the improvements.

As proposed, the SSA would serve as a backup in case the city ever has to maintain one or more of those common facilities. The SSA would be dormant and only would be activated when a homeowners association fails to maintain the common area improvements.

The dormant SSA would appear on residents’ tax bills with a tax rate of zero.

Should the city incur expenses to repair or maintain common areas in the neighborhood, the SSA would be activated to prevent the city from relying on general funds. If the SSA is activated, there would be a levy on the tax bill to reimburse the city for repair or maintenance costs incurred.

The maximum levy rate proposed in the ordinance is 75 centers per $100 of equalized assessed home value.

The next step in the process, as required by state law, is to hold a public hearing to discuss the creation of the SSA. The city would detail the proposed geographic area, budget, services and tax levy amount at the hearing.

The public hearing is planned to take place during the Oct. 21 City Council meeting.

State law requires the city to provide a 60-day waiting period after the public hearing before implementing the SSA ordinance. During that time, opponents may submit petitions against the ordinance.

If during that 60-day period an opposing petition is submitted to the city clerk with the signatures of at least 51% of registered voters residing in the proposed SSA area, the SSA will be defeated and the city will not be allowed to resubmit another for two years.

After the Oct. 21 public hearing, the 60-day period will end Dec. 20, which will be the deadline to submit objecting petitions. If a petition is not filed by Dec. 20, or a petition is filed without the required number of signatures, then the city may establish the SSA.