MSBU Contact Information

SHANNAN LAKIS Special Assessment Coordinator Hernando County Public Works Phone: 352-754-4060 Email: SLakis@HernandoCounty.us

A special assessment district as established in Hernando County is commonly referred to as a MSBU (Municipal Service Benefit Unit). Through the MSBU Program, non-ad valorem tax assessments are levied by the Board of County Commissioners to provide a funding mechanism for a variety of services and improvements.

The MSBU boundary area is determined by those properties what will derive a benefit from the service or improvement. The non-ad valorem assessments associated with MSBUs are based on the cost to provide the improvement, number of participating properties, and the benefit unit allocated to each participating property. Typically, community improvements that are financed via special assessments include residential household solid waste collection and disposal services, residential street lighting, fire protection, and a variety of construction projects such as road paving, drainage, and water/sewer infrastructure.

• MSBU Application Form
• Policy 16-1 Revised July 2023

MSBU Application Process

Applications for MSBU projects are accepted and processed on a first-come, first-served basis and require a $250 non-refundable application fee. Below is a brief description of the MSBU process.

1. At the time of the application submittal, you will speak with the Special Assessment Coordinator to discuss the scope of work and boundaries for the project.
2. A preliminary engineering cost estimate will be prepared. 100% of all MSBU costs will be the responsibility of the affected property owners.
3. Prior to voting, any property owners within the MSBU boundary for road paving projects only who own two or more contiguous buildable lots will be notified of their eligibility to unify their parcels for the purpose of a single tax assessment. They will have 45 days to submit their completed Covenant of Unity of Title application packet.
4. Voting cards will be mailed to every property owner within the MSBU boundary and will include the project cost estimate and proposed assessment rate. Property owners will have 45 days to return their votes. In order to proceed, 51% of the returned votes must be in favor of the project.
5. Once 51% favorable votes are received, a public hearing will be set with the Board of County Commissioners to adopt the MSBU Ordinance.
6. Engineers will design the specifications for the scope of work and the project will be placed out to bid for the lowest responsive bidder. If all received bids are more than 125% above the approved funding amount, the bids will be rejected and the project will be reposted. If all received bids are more than 150% above the approved funding amount, the project shall be rejected and a public hearing to rescind the MSBU Ordinance will be scheduled.
7. Construction will begin. Once the construction is complete and all invoices have been paid, a second public hearing will take place for the Board of County Commissioners to adopt the assessment rates.
8. The property owners will have 30 days to pay for the assessment as a one-time fee or have the option to finance it over 10 years at current market interest rate. If financing is chosen, the assessment will appear on the annual tax bill as a non ad-valorem assessment.

The methodology for assessing the properties is a per platted lot assessment. Government properties are exempt from the assessment. Before you apply, talk to your neighbors to be sure there is an interest in the community for the improvement project and resulting assessment. 

Please email us if you have questions about the MSBU program.

Start your MSBU Application today.

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Street Lighting

There are currently 31 street lighting districts within Hernando County. Most street lighting MSBUs are either created by the developer of a new subdivision or a subdivision's homeowners association. The residents pay for the MSBU as non-ad valorem assessment on their tax bill, which is a continuous annual assessment without an end date. The rates may vary depending on the number of streetlights and the number of lots within the boundary area, and may have installation charges the first year and then level out for preceding years. The utility bills and administrative costs are distributed equally among the property owners.

The process for creating a street lighting MSBU involves working with the electric company to establish a design for the street lighting area; preparing an estimate of installation costs, rental, and electric usage fees; and petitioning the benefitting property owners within the proposed street lighting boundary.

Please email us if you are interested in creating a street lighting MSBU.

Reporting outages: For all street lighting outages and repair requests located within an existing MSBU, contact the appropriate utility company directly.  The county contracts with Duke Energy and Withlacoochee River Electric Cooperative (WREC) for maintenance of the street lights.

• Duke Energy: (800) 700-8744
• WREC: (352) 596-4000

Limerock Road Paving

County-Owned Roads: Property Owners residing on county maintained limerock roads who wish to have their road paved may do so via the MSBU program. The affected property owners will be responsible for 100% of all project costs including construction, engineering services, and administrative fees.  The improvements consist of preparing existing limerock base and covering with 1¾ inch of asphalt, sodding, seeding, and mulching. Existing permitted driveways will receive a five-foot asphalt apron with a maximum width of twenty feet per County Standards. Vacant lots will not receive an apron.

Florida Statutes Chapter 125.01(1)(q) authorizes the Board of County Commissioners to create Municipal Service Benefit Units (MSBUs) to provide specific municipal services to any specified portion or all of the unincorporated areas of the county.

Non County-Owned Roads: Requests for maintenance on unaccepted roadways within the County right-of-way will require the street to be brought into compliance prior to acceptance by the County. Such improvements will be performed under an assessment program wherein the residents are charged 100% for the cost of such improvements.

If you and your neighbors are interested in having your road paved via an MSBU Assessment, please email us for additional information or submit the MSBU Application Form to begin the process.

Traffic Calming

Hernando County now has a Traffic Calming program that can assist residents concerned by the increase in traffic intrusion, volume, speed and safety on their neighborhood roads. Options may include but not limited to raised crosswalks, speed humps, mini traffic circles, or narrowing driving lanes with curb extensions to discourage speeders while allowing for safer pedestrian crossings.

Once you have read the guidelines, you may petition for calming devices in your neighborhood. Requests for traffic calming from five (5) homes on a street are required. Once five requests are received, the County Engineering Office will conduct a warrant study to review and analyze the speeds and vehicle volumes in these neighborhoods.

Where needed, a traffic calming plan will be recommended based upon neighborhood preferences combined with engineering judgment. If the request meets the minimum requirements of 51% of property owners voting in favor of the traffic plan, an MSBU will be created to fund the project. 100% of all costs associated with implementing traffic measures will be paid solely by affected property owners.

To find out more, please email us or call 352-754-4060.