Golden Hill maintenance district to dissolve

The city may have to return more than $2 million it collected from property owners in Golden Hill and South Park after a San Diego County Superior Court judge invalidated a special maintenance district that was formed in 2007.

The Greater Golden Hill Maintenance Assessment District will be dissolved after Judge Richard Whitney signed an order Feb. 9 to confirm a state appeals court ruling. The state 4th District Court of Appeal ruled Sept. 22 in favor of property owners challenging the district, which levied higher taxes in exchange for increased services such as litter removal, sidewalk sweeping, power washing, landscaping services, graffiti removal and trail and canyon beautification.

A maintenance district is a legal mechanism by which property owners can vote to assess themselves to pay for and receive services above and beyond what the city normally provides.

Golden Hill Neighborhood Association Secretary-Treasurer John Kroll said the city has assessed $476,000 a year from property owners over the last five years, a sum that adds up to $2.38 million. City officials could not confirm that figure.

“I’m very pleased with the decision,” Kroll said. “Now is the time for the City Council to retract their error and refund the $2 million they’ve collected from us.”

The city formed the district in August 2007 with the goal of providing improvements for the benefit of the properties in the district. However, property owners immediately challenged it.

When maintenance districts are formed, the voting is weighted based on the assessment that will be charged to an individual property. Part of the district included sections of Balboa Park, and property owners successfully argued that the weight assigned to city-owned land was improperly inflated.

The Golden Hill Neighborhood Association claimed the district would have otherwise been defeated.

Councilman Todd Gloria said Wednesday that the City Council moved toward shutting down the district in closed-session meetings and will not appeal.

However, residents may not see all their money returned because some of it has been spent, he said.

“There’s a disagreement over what should be refunded because services were rendered,” Gloria said. “People supplied these services and were paid. We’re going to do what the law requires us to do. We will do everything that we are required. We will work to make sure that everything the court has ordered is done.”

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Golden Hill maintenance district to dissolve