Special Assessment Districts

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Special Assessment Districts (SADs)

A Special Assessment District (SAD) is an arrangement between property owners and the City of Reno to help fund infrastructure improvements that benefit adjacent property owners.

Why use a SAD for sewer projects?

Sewer infrastructure is essential to public health, environmental protection, and property value. A SAD allows the cost to be:

Shared fairly among property owners who directly benefit
Spread out over time, so owners don’t have to pay the full cost upfront
Coordinated with street work, so sewer and road improvements can be completed together, reducing future disruption and cost

In short, a SAD ensures needed improvements can move forward while keeping costs equitable for residents.

How does the process work?

1. Council Meeting #1 – Adopts Resolution to Prepare Plans

Council directs the City Engineer to prepare plans
Staff begin detailed design and cost estimating work

2. Council Meeting #2 – Provisional Order

Council reviews the engineer’s plans/plat and the cost estimate
The City Council adopts a Provisional Order that says “We intend to form the SAD” and sets a public hearing date.
All affected property owners receive notice by mail at least 20 days before the hearing. The notice explains:
Project type
Estimated cost
How much each property is expected to pay
How to protest or ask questions
How to apply for a hardship deferral

3. Council Meeting #3 — Introduction to Ordinance Creating the District (Public Hearing)

Order of proceedings:

City verifies notice and opens the hearing.
Engineer presents project summary.
Persons who submitted written protests (filed on time) are called to speak first; then anyone else may speak for or against the proposed district.
The City Engineer is then asked to address the protests and objections.
The Council deliberates and must consider:
All oral and written complaints/protests and evidence presented at the hearing — the governing body must dispose of each complaint by resolution or ordinance.
The Council votes on:
Resolution addressing all protests and objections
Resolution directing the recordation of the maximum special benefits (the estimated amount of the assessment)
Ordinance creating the district

4. Council Meeting #4 — Ordinance adoption and District Formation

Council votes to adopt the ordinance and the district is formed

5. Construction

Public Works staff prepares final plans and specifications.
Staff advertises for bids for the project.
Construction begins typically in the spring and ends in the fall.
Once work is complete, as-built plans are prepared, and final quantities are determined.
The information for the assessment work is submitted to the Assessment District Coordinator and the process for closing the district begins.

6. Final Assessment & Closing

City Council directs the City Engineer to prepare a final assessment roll.
A preliminary final assessment roll is completed by the Assessment District Coordinator. This includes calculating the Processing Fees associated with the assessment district.
The final assessment cannot exceed the Maximum Special Benefit amount adopted by the City Council when the district was created.
A resolution “Fixing the Time” then goes before Council which establishes the Public Hearing date to close the district.
Property owners receive a certified letter with the final cost and another public hearing notice to close the district.
The Public Hearing procedure is exactly the same as when the district was created and the ordinance this time levies the assessment upon the property

7. Payment Options

Assessment Management Group (AMG) in Las Vegas handles all of the billings for the City of Reno.
Pay in full: You can pay the entire assessment during the “cash payment period” (30 days after the final assessment hearing). The property owner can pay all, part, or none of this bill.
Pay over time: If you don’t pay in full, the assessment may potentially be paid in installments, typically over 10 –30 years, with semi-annual payments.

Your Rights as a Property Owner

Protest rights: You may submit a written protest or speak at the public hearing if you disagree with the project or the assessment amount.
Hardship requests: If the payments would create a serious financial burden, you can apply for a hardship deferral.
Transparency: At every stage, you’ll be notified by mail, and hearings are open to the public.

Why this matters to you

If your property is included in a sewer SAD:

You will benefit from reliable sewer service, improved property value, and reduced risk of septic system failure.
You’ll share the cost with your neighbors, with flexible payment options.
You’ll have opportunities to review, comment, and ask questions before the project moves forward.

Questions? Contact Us

Public Works Department: SewerSAD@reno.gov

Special Assessment District - Public Feedback Questions and Answers

Are you installing curb and gutter as part of this project? Does the $7M street construction cost cover curb and gutter?
Can only property owners vote?
Can the City apply for the loan, complete the construction, and defer all charges until the time of connection to recoup costs?
Can the city pre-qualify a minimum of 3 or 4 contractors to do the extension work into private properties.
Can the city waive connection fees to help lower the burden on the homeowners?
Can we get a no interest loan?
Can we get more information on financing options and costs before the final vote is taken?
Do these properties fit within the guidelines to qualify for ADU's? Are the parcels big enough for an ADU?
Does the city pay for the sewer infrastructure when a new home is constructed?
How will the decision to move forward be made?
If I'm involved in a SAD, will there be a lien on my home? Will I be able to sell my home?
If we proceed with the sewer and lateral improvements, will this increase my property value and, consequently, my taxes? If so, by how much?
I'm already paying property taxes, why do my property taxes not cover this project?
I'm already paying taxes, why do I have to pay for this?
Is right now our only opportunity to connect to sewer? If the majority votes no on a SAD, do we miss our opportunity?
Is there an online site keeping the status of potential grants being offered/ procured we can access?
The Rivermount Neighborhood was annexed into the City 25 years ago. The City has received taxes from the residents but has not provided basic services in return.

What exactly are the details of the SAD hardship deferral? What gets deferred and for how long? If the assessment is deferred, does it accrue interest? Is the deferral active until the sale of the property?

Why did the residents on Plumb Lane not receive a special assessment for sewer when it was brought up their street only a block from us?
Will an SAD increase my property tax rate?
Will there be a formal vote, and how many owners need to agree?
Will you address all the drainage issues with the roadway project?

Special Assessment Districts
- What’s Happening?
  - Streets will be repaved in 2026–2027.
  - City may extend public sewer lines to each property through a Special Assessment District (SAD).
  - This makes it easier and more affordable to connect when needed.
- What Is a Special Assessment District (SAD)?
- Why switch from septic to sewer?
  - Protects groundwater and drinking water.
  - Reduces risk of septic failure & costly repairs.
  - Provides long-term, reliable service.
  - May remove certain land use constraints, such as those related to leach field placement, potentially allowing for improvements like a adding a shed or room addition that would otherwise be restricted. This does not change zoning or permit allowances for accessory dwelling units (ADUs) .
- How will costs be shared?
  - Current estimate: ~$25,000 per property (subject to change).
  - Pay upfront OR finance over City established payback period of 10–30 years with interest.
  - Can pay off early at any time with potential early pay off penalties.
  - Additional homeowner costs:
    - Sewer connection fee (~$12,745)
    - Private lateral re-plumbing ($ varies per property)
    - Septic system abandonment ($750 County fee + Construction $ varies per property)
- Are there financial assistance options?
  - City may apply for future state grants to reduce private property sewer connection costs.
  - Washoe County loan programs may help with connection costs. More information can be found on Washoe County's website.
- Do I have to connect right away?
- What if my septic system fails before sewer is available?
- What if I recently replaced my septic system?
- What if I sell my home?
- Will this raise my property taxes permanently?
- How will construction affect me?
  - Driveway access restored daily, though short delays may occur.
  - Work is in the street/right-of-way; laterals are 5–10 feet deep.
  - Contractor restores pavement and driveways; landscaping in the right-of-way replaced with standard materials.
- When will construction happen?
  - Winter 2025 – Public hearings and Council decision
  - 2026–2027 – Construction in two phases
    - Phase 1 – begins spring 2026
    - Phase 2 – begins spring 2027
  - 2028 – Assessments finalized and billed
- Will this affect property value?

Number of Persons in Household	Annual Household Income Limits
1	$38,700
2	$44,200
3	$49,750
4	$55,250
5	$59,650
6	$64,100
7	$68,500
8	$72,950

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