This category includes a variety of different
types of debt secured by limited or special taxes or revenues and
issued to finance public facilities to meet special needs or for special governmental
districts or authorities. Included here would be so-called special
assessment debt issued by a local government to finance street, water and
sewerage, or other public improvements that benefit specific property
owners. The debt is secured by and paid from assessments that the local
government imposes on the benefiting property owners. Such assessments
are considered to be user charges, rather than taxes, and they are
typically levied only against property that borders on or lies very near the
project for which the assessment is levied. Usually, a special assessment
district, limited in size, is formed and assessments are levied only against
property in the district. The assessments may vary within the district
depending on how much various properties benefit from the project for
which the assessments are levied.Usually, property owners pay the assessments
in installments, with interest, over a period of years.