## Facts

- The City of Boca Raton adopted a downtown revitalization plan involving enumerated infrastructure improvements estimated at $44 million.
- The City proposed issuing special assessment improvement bonds up to $21 million, payable solely from special assessments on benefitted downtown property.
- The assessments were to be allocated among properties largely in relation to their ad valorem values within the assessment district.
- The State of Florida and certain downtown property owners opposed bond validation, disputing both the City’s authority and the legality of the assessment scheme.
- The trial court refused to validate the bonds, ruling the City lacked authority to impose special assessments without a specific legislative grant and reasoning that the state constitution preempted non–ad valorem municipal taxation.
- The City appealed directly to the Florida Supreme Court in the statutory bond-validation proceeding.

## Issues

1. Whether a municipality, acting under the Florida Constitution and the Municipal Home Rule Powers Act, may levy special assessments to repay bonds without a specific, separate statutory authorization.
2. Whether the proposed special assessments satisfied Florida requirements for validity—special benefit to assessed property and fair, reasonable apportionment—despite using property value as an allocation factor.

## Decision

- The Florida Supreme Court reversed the judgment denying validation.
- The Court held the City had authority under municipal home rule to impose special assessments for municipal improvements absent an express prohibition.
- The Court held special assessments are not “taxes” for purposes of the constitutional taxing provision relied upon by the trial court.
- The Court held the assessment plan was legally valid because the improvements conferred special benefits on the assessed properties and the apportionment method was reasonable, even though tied to property values.
- The Court directed that the bonds be validated.

## Legal Principles

- Florida municipalities possess broad home-rule authority to act for municipal purposes unless specifically prohibited by general law.
- Special assessments are charges imposed to pay for special benefits to particular property and are distinct from general taxes.
- Constitutional limits on municipal taxation do not bar municipalities from imposing special assessments when acting within home-rule authority.
- Statutory procedures governing municipal special assessments (including those in chapter 170, Florida Statutes) are supplemental rather than the exclusive source of assessment authority.
- A special assessment is valid if (1) the assessed property receives a special benefit and (2) the assessment is fairly and reasonably apportioned; use of ad valorem value as an apportionment proxy is permissible when supported by evidence of benefit and nonarbitrary allocation.

## Conclusion

The court upheld municipal authority to finance local improvements through bonds repaid by special assessments, clarifying that assessments are not taxes for constitutional preemption purposes and that value-based apportionment is permissible when the record shows special benefit and reasonable cost allocation among benefitted properties.


City of Boca Raton v. State, 595 So. 2d 25 (Fla. 1992)