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.
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.
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.
Special Assessment District - Public Feedback Questions and Answers
Options for curb and gutter are being evaluated. The $7 million budget covers street rehabilitation and minor storm drain upgrades but does not guarantee curb and gutter throughout. Design standards, downstream capacity and resident input will guide the final design.
Yes. Only property owners are eligible to vote.
The City is exploring this approach. It would require adjusting connection fees to recover construction costs, and any plan to install sewer must be approved by the Reno City Council.
Yes, the City is exploring ways to pre-qualify contractors for septic conversion work on private properties.
Connection fees are established by City ordinance and cannot be waived without City Council approval. Grants may help offset some costs. The City plans to apply for the second round of grant funding through the Nevada Division of Environmental Protection Capital Projects Grant program. The announcement of the second round of grant funding is anticipated in Spring of 2026, with applications due in Fall of 2026.
Currently, no-interest loans are not available. The City is evaluating all funding options.
Yes. Updated cost estimates and available financing options will be provided once the grant status is confirmed.
Minimum lot size for an ADU is 5,000 sq. ft. Parcels must connect to City sewer before building an ADU. Other requirements like setbacks and lot coverage also apply. For parcel-specific questions, contact Grace Mackedon at MackedonG@reno.gov or 775-741-3004.
No. Developers install sewer infrastructure for new neighborhoods and recover costs through home prices. The City maintains the system afterward, funded by sewer fees.
Resident surveys are used to gather input on sewer and pedestrian pathway preferences. The City reviewed survey results and there is NOT sufficient support to pursue a Special Assessment District (SAD).
Yes, a lien is placed until the assessment is paid in full. If you sell your home, the remaining assessment transfers to the new owner.
Property values are assessed by the Washoe County Assessor's Office. Taxable values reflect factors such as location, zoning, and actual use. Sewer improvements may influence property value, but specific impacts on your taxes cannot be determined by the City. For details on how property tax is calculated , visit Property Tax Overview.
Sewer service is a utility, funded by user and connection fees, not property taxes or sales taxes. Sewer projects are funded through these fees, not general taxation. For more information about where your tax dollars are spent, please visit Property Tax Overview and Consolidated Tax.
Sewer service is a utility comparable to NV Energy for electric and gas service and TMWA for water service. Utilities are funded by service fees paid. The City's sewer utility operates the same way. The City's sewer utility is funded by user fees and connection fees, not by property tax, CTAX (sales tax), or any other form of local taxes.
Maybe. If the NDEP grant is approved, the City is looking at any and all available funding opportunities for this project.
No comprehensive online site exists. Currently, one application has been submitted for the Nevada Department of Environmental Protection Capital Projects grant, with awards anticipated November 19, 2025. A second round is expected in Spring 2026.
The City does not fund new sewer infrastructure for existing neighborhoods through taxes. Sewer service is funded by sewer fees. Those in the Rivermount area that are not connected to City sewer have never paid sewer user or connection fees, which fund sewer infrastructure projects.
City of Reno Ordinance Number 5385 established the criteria for establishing eligibility for approving hardship deferrals for assessments. The applicant must have a principal residence within the boundaries of the special assessment district and have equal to or less than 50% of the area median income for Washoe County, Nevada, adjusted for household size, as determined by the United States Department of Housing and Urban Development.
| 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 |
- Application due at least 3 days prior to the City Council meeting creating the SAD roll.
- City Council approves or denies the deferral.
- Principal is deferred; interest must be paid and is secured by a lien.
- Deferral lasts until property is sold, the bond term expires, renewal is denied, interest payments are missed, or the assessment is voluntarily paid.
- Re-application required at least every 5 years.
The Plumb Lane project was completed by the Regional Transportation Commission as part of their Regional Road Improvement Program in 2014 and an SAD was not required at that time. This project brought the backbone infrastructure to this neighborhood and connected a significant gap of sewer infrastructure within the City. Without this infrastructure, this project would not be feasible today.
No. An SAD creates a separate assessment to cover sewer installation costs. The assessment ends when the project is fully paid.
The current survey is not a formal vote. However, if there was sufficient support to pursue an SAD, a formal vote would need to occur, and at least 50% of property owners must agree.
The project will evaluate existing drainage conditions and make improvements within the public right-of-way where feasible. Existing roadside ditches throughout the neighborhood will also be perpetuated.
Special Assessment Districts
- 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.
A Special Assessment District allows property owners to share in the cost of public infrastructure improvements that directly benefit their properties.
- 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) .
- 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)
- 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.
No. You only need to connect to municipal sewer if your septic fails. All properties will still pay the assessment whether they decide to connect or not.
You would need to repair or replace it temporarily until the public sewer line is available. We encourage homeowners with failing systems to contact the City about timing.
You will still be assessed for the sewer main, but you are not required to connect until your system fails.
The assessment transfers to the new owner.
No. The assessment ends once paid off.
- 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.
- 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
Yes. Homes with sewer access are generally more attractive to buyers and avoid uncertainty around septic inspections and failures.