Clayton v. City of Farmington

695 P.2d 490, 102 N.M. 340
CourtNew Mexico Court of Appeals
DecidedJanuary 22, 1985
DocketNo. 7741
StatusPublished
Cited by2 cases

This text of 695 P.2d 490 (Clayton v. City of Farmington) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clayton v. City of Farmington, 695 P.2d 490, 102 N.M. 340 (N.M. Ct. App. 1985).

Opinion

OPINION

HENDLEY, Judge.

Plaintiffs, residents of the City of Farmington, New Mexico, own property located within an improvement district created by the City of Farmington. The district was created under the authority of NMSA 1978, Sections 3-33-1 to -43 (Repl.Pamp.1984). Plaintiffs were assessed for part of the costs of certain road improvements within the district. Subsequently, plaintiffs filed a petition in district court objecting to the assessment and asking for an injunction prohibiting the City from assessing them. Plaintiffs claimed that the assessment of the properties exceeded benefits, and that the City’s method for determining benefits was arbitrary. The trial court dismissed plaintiffs’ complaint. The court found that plaintiffs failed to present evidence which would support a conclusion that the City acted arbitrarily, capriciously, or unreasonably in assessing their property. The court concluded, as a matter of law, that the City’s actions in regard to plaintiffs’ properties were valid and regular in all respects. Plaintiffs appealed. We affirm.

A governing body can create an improvement district when it determines a district is necessary for public safety, health, and welfare. It may create the district by the provisional order method or by the petition method. With certain exceptions not relevant in this case, the district includes, for purposes of assessment, all property which the governing body determines is benefited by the improvements, and which abuts any street on which an improvement is to be constructed. Section 3-33-1. An improvement district can be created to construct, among other things, curbs, gutters, and sidewalks, as well as to pave and repave streets. Section 3-33-3. Under the provisional order method, which was used by the City in this case, the governing body directs the (City’s) engineer to prepare preliminary plats and an estimate of the costs of the improvement district. The engineer is required to prepare an assessment plat of the area to be included in the district, and an addendum to the plat showing the amount of maximum benefit estimated to be assessed against each tract or parcel on the front foot, zone, area, or other equitable basis. Section 3-33-11. The front foot basis was used in this case.

Standard of Review

We review the City’s determination that the assessed property will be benefited by the improvement only to determine whether the City acted in an arbitrary manner in reaching its decision. Oliver v. Board of Trustees of Town of Alamogordo, 35 N.M. 477, 1 P.2d 116 (1931). As stated in Feldhake v. City of Santa Fe, 61 N.M. 348, 300 P.2d 934 (1956):

The underlying reason for the court’s taking the determination of the municipal council to be conclusive, in the absence of fraud or conduct so arbitrary as to be the equivalent of fraud, is that the council is a legislative body and has a right within the scope of its powers to legislate for the city. The courts cannot legislate and any legislative action by a duly constituted legislative body is final and binding as far as the courts are concerned except for the existence of fraud or such arbitrary conduct as amounts to fraud.
* * * * # *
* * * [T]he burden of proof as to fraud or arbitrary conduct equivalent to fraud necessarily rests upon him who makes an attack upon the action of the city in determining that a municipal improvement district shall be established.

See also Bowdich v. City of Albuquerque, 76 N.M. 511, 416 P.2d 523 (1966); Teutsch v. City of Santa Fe, 75 N.M. 717, 410 P.2d 742 (1966); Hedges v. City Commission of City of Albuquerque, 62 N.M. 421, 311 P.2d 649 (1957); Shalit v. City Commission of City of Albuquerque, 62 N.M. 55, 304 P.2d 578 (1956).

Method Used to Assess Benefit

The first issue on appeal is whether the method used by the City to determine benefits to plaintiffs’ properties was arbitrary. The consulting engineer hired by the City to prepare documents for the assessment hired, in turn, an appraiser to assist him in determining benefits to properties located within the improvement district. The following is an outline of the procedure followed by the appraiser in his determination of benefits to the assessed properties:

1. He looked at residential properties recently sold in Farmington. He divided the properties into three price categories: $16,000-$40,000; $40,000-$75,000; over $75,000.

2. He determined the per-square-foot selling price for residential properties in the lowest price category, breaking those properties into a group with paving, and a group without paving. The average value of the unpaved group: $29.64 per square foot; the average value of the paved group: $32.44 per square foot.

3. He figured the percentage difference between the paved and unpaved selling prices. There was a 9.4% increase in price from the unpaved to the paved.

4. He took the average sale price of a house in the lowest priced unpaved group— $30,200. A 9.4% increase over $30,200 is $2,838.

5. He determined the typical lot frontage in the lower-priced category — seventy feet.

6. He took the average increase in value (at no. 4 above), and divided it by the typical lot footage of seventy feet, and arrived at a figure of $40.54 benefit per front foot in the lowest price category.

7. He was informed by the engineers that costs were estimated at $37.50 per front foot, so he adjusted the benefits per-front-foot figure to equal the cost figure.

Plaintiffs argue that this method was arbitrary because it provided a meaningless comparison. They claim the comparison was meaningless because the sample properties used by the appraiser, consisting exclusively of residential properties, were fundamentally different from plaintiffs’ properties. Plaintiffs’ tracts were vacant lots. Other parcels were vacant trailer lots. The gist of plaintiffs’ argument is that the benefit a residential lot receives from an improvement cannot be compared to a benefit a vacant lot receives. Because the two cannot be compared, plaintiffs contend the City’s method of determining plaintiffs’ benefits by comparing their property to residential property was arbitrary. It is important to note that plaintiffs do not attack the comparison method of appraisal itself, but only the City’s choice to use residential properties rather than vacant properties in its model.

Underlying plaintiffs’ argument is their assumption that they are entitled to have their property assessed on the value of its present use. We disagree. 14 E. McQuillin, The Law of Municipal Corporations § 38.33 (3d ed. 1970) states:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Village of Angel Fire v. Wheeler
2003 NMCA 041 (New Mexico Court of Appeals, 2003)
Rowley v. Murray
748 P.2d 973 (New Mexico Court of Appeals, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
695 P.2d 490, 102 N.M. 340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clayton-v-city-of-farmington-nmctapp-1985.