special assessment - Many projects are financed through the...

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What is a special assessment special project? How are special assessment projects reported? A special assessment is a fee for public improvement projects such as street and sewers that is levied against properties that will benefit from an improvement project. Most know special assessments are charges levied against lands when drinking water lines are installed, or even when streets are built too. The owners of property can also petition the government to initiate such projects to enhance property values.
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Unformatted text preview: Many projects are financed through the issuance of bonds, which are then repaid through special assessments from the benefiting property owners. As the bonds are issued and special assessments are approved, the special assessments are recorded as receivables. If for example a street light has to be added to a neighborhood for $10,000. The city will most likely sell bonds of this amount to finance the construction with repayment to be made using funds collected from the owners of the property benefited....
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This note was uploaded on 04/08/2012 for the course BUS 5643 taught by Professor Katherin during the Spring '11 term at University of Minnesota Duluth.

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