Senate File 2058 - Introduced SENATE FILE 2058 BY McCOY , DVORSKY , DOTZLER , PETERSEN , HORN , DEARDEN , GRONSTAL , JOCHUM , and QUIRMBACH A BILL FOR An Act relating to municipal park improvements by authorizing 1 the establishment of municipal park improvement districts, 2 the issuance of bonds, and the imposition of specified 3 taxes. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5080XS (6) 86 md/sc

S.F. 2058 Section 1. NEW SECTION . 386A.1 Definitions. 1 As used in this chapter, unless the context requires 2 otherwise: 3 1. “Book” , “list” , “record” , or “schedule” kept by a county 4 auditor, assessor, treasurer, recorder, sheriff, or other 5 county officer means the county system as defined in section 6 445.1. 7 2. “Cost” of any improvement includes construction contracts 8 and the cost of engineering services, architectural services, 9 technical services, legal services, preliminary reports, 10 property valuations, estimates, plans, specifications, notices, 11 acquisition of real and personal property, consequential 12 damages or costs, easements, rights-of-way, supervision, 13 inspection, testing, publications, printing and sale of 14 bonds, interest during construction and for not more than six 15 months after construction is completed, and provisions for 16 contingencies. 17 3. “Improvement” means the acquisition, construction, 18 reconstruction, enlargement, improvement, and equipping of 19 recreation grounds, recreation buildings, juvenile playgrounds, 20 swimming pools, recreation centers, and parks, and the 21 acquisition of real estate for such improvements. 22 4. “Property” means real property as defined in section 4.1, 23 subsection 13, and in section 427A.1, subsection 1, paragraph 24 “h” . 25 5. “Property owner” or “owner” means the owner of property, 26 as shown by the transfer books in the office of the county 27 auditor of the county in which the property is located. 28 6. All definitions in section 362.2 are incorporated by 29 reference as a part of this chapter, except as provided in 30 subsection 4 of this section. 31 Sec. 2. NEW SECTION . 386A.2 Authorization. 32 A city that proposes to establish a municipal park 33 improvement district, to provide for its existence and 34 operation, to provide for improvements for the district, to 35 -1- LSB 5080XS (6) 86 md/sc 1/ 20

S.F. 2058 authorize and issue bonds for the purposes of the district, 1 and to levy the taxes authorized by this chapter must do so in 2 accordance with the provisions of this chapter. 3 Sec. 3. NEW SECTION . 386A.3 Establishment of district. 4 1. A municipal park improvement district may be established 5 by action of the city council in accordance with the provisions 6 of this chapter. A district shall: 7 a. Be comprised of contiguous property wholly within the 8 boundaries of the city. A district shall be comprised only 9 of property that is zoned for residential, commercial, or 10 industrial uses. 11 b. Be given a descriptive name containing the words 12 “municipal park improvement district”. 13 c. Be comprised of property related in some manner, 14 including but not limited to present or potential use, physical 15 location, condition, or relationship to an area, so as to be 16 benefited in any manner, including but not limited to a benefit 17 from present or potential use or enjoyment of the property, 18 by the operation of the district or of any improvement of the 19 district. 20 2. The council shall initiate proceedings for establishing 21 a district upon the filing with the city clerk of a petition 22 containing the following: 23 a. The signatures of at least twenty-five percent of 24 all owners of property within the proposed district. These 25 signatures must together represent ownership of property 26 with an assessed value of twenty-five percent or more of the 27 assessed value of all of the property in the proposed district. 28 b. A description of the boundaries of the proposed district 29 or a description of the property within the proposed district. 30 c. The name of the proposed district. 31 d. A statement of the maximum rate of tax that may be 32 imposed upon property within the district. The maximum rate 33 of tax may be stated in terms of separate maximum rates for the 34 debt service tax, the park improvement capital fund tax, and 35 -2- LSB 5080XS (6) 86 md/sc 2/ 20

S.F. 2058 the operation tax. 1 e. The purpose of the establishment of the district, which 2 may be stated generally or in terms of the relationship of the 3 property within the district or the interests of the owners of 4 property within the district or in terms of the improvements 5 proposed to be undertaken for the purposes of the district. 6 f. A statement that taxes levied for the municipal park 7 improvement district operation fund shall be used for the 8 purpose of paying maintenance expenses of improvements for a 9 specified length of time, along with any options to renew, if 10 the taxes are to be used for this maintenance purpose. 11 3. a. The council shall notify the city planning commission 12 upon receipt of a petition. It shall be the duty of the city 13 planning commission to make recommendations to the council in 14 regard to the proposed district. The city planning commission 15 shall, with due diligence, prepare an evaluative report for 16 the council on the merit and feasibility of the project. The 17 council shall not hold its public hearings or take further 18 action on the establishment of the district until it has 19 received the report of the city planning commission. In 20 addition to its report, the commission may, from time to time, 21 recommend to the council amendments and changes relating to the 22 project. 23 b. If no city planning commission exists, the council 24 shall notify the metropolitan or regional planning commission 25 upon receipt of a petition, and such metropolitan or regional 26 planning commission shall have the same duties set forth 27 in this subsection as the city planning commission. If no 28 metropolitan or regional planning commission exists, the 29 council shall notify the zoning commission upon receipt of 30 a petition, and the zoning commission shall have the same 31 duties set forth in this subsection as the city planning 32 commission. If no planning or zoning commission exists, the 33 council shall set a time and place for holding a public hearing 34 on establishment of a district upon receipt of a petition and 35 -3- LSB 5080XS (6) 86 md/sc 3/ 20

S.F. 2058 shall publish notice of the hearing as provided in section 1 362.3. 2 4. Upon receipt of the commission’s final report, or after 3 the public hearing if applicable, the council shall set a time 4 and place for a meeting at which the council proposes to take 5 action for the establishment of the district and shall publish 6 notice of the meeting as provided in section 362.3. The clerk 7 shall send a copy of the notice by certified mail not less 8 than fifteen days before the meeting to each owner of property 9 within the proposed district at the owner’s address as shown by 10 the records of the county auditor. If a property is shown to be 11 in the name of more than one owner at the same mailing address, 12 a single notice may be mailed addressed to all owners at that 13 address. Failure to receive a mailed notice is not grounds for 14 objection to the council taking any action authorized in this 15 chapter. 16 5. In addition to the time and place of the meeting for 17 hearing on the petition, the notice must state the following: 18 a. That a petition has been filed with the council asking 19 that a district be established. 20 b. The name of the district. 21 c. The purpose of the district. 22 d. The property proposed to be included in the district. 23 e. The maximum rates of tax which may be imposed upon the 24 property in the district. 25 6. At the time and place set in the notice the council 26 shall hear all owners of property in the proposed district or 27 residents of the city desiring to express their views. The 28 council must wait at least thirty days after the meeting has 29 been held before it may adopt an ordinance establishing a 30 district meeting the requirements of section 386A.3, subsection 31 1. Property included in the petition proposing the district 32 need not be included in the established district. However, the 33 council may not include property in the district that was not 34 included in the petition until the council has held another 35 -4- LSB 5080XS (6) 86 md/sc 4/ 20

S.F. 2058 meeting after it has published notice and mailed notice to 1 owners of the additional property, as required in subsection 4, 2 and containing the information required in subsection 5. 3 7. Adoption of the ordinance establishing a district 4 requires the affirmative vote of three-fourths of all of the 5 members of the council, or, in cities having but three members 6 of the council, the affirmative vote of two members. However, 7 if a remonstrance has been filed with the clerk signed by at 8 least twenty-five percent of all owners of property within the 9 proposed district representing ownership of property with an 10 assessed value of twenty-five percent or more of the assessed 11 value of all of the property in the proposed district, the 12 adoption of the ordinance requires a unanimous vote of the 13 council. 14 8. The city clerk shall cause a copy of the ordinance to be 15 filed in the office of the county recorder of each county in 16 which any property within the district is located. 17 9. At any time prior to adoption of an ordinance 18 establishing a district, the entire matter of establishing such 19 district shall be withdrawn from council consideration if a 20 petition objecting to establishing such district is filed with 21 the city clerk containing the signatures of at least forty 22 percent of all owners of property within the proposed district 23 or signatures which together represent ownership of property 24 with an assessed value of forty percent or more of the assessed 25 value of all property within the proposed district. 26 10. The adoption of an ordinance establishing a district 27 is a legislative determination that the property within the 28 district has the relationship required and includes all of the 29 property within the area that has that relationship in the 30 district. 31 11. Any resident or property owner of the city may appeal 32 the action and the decisions of the council, including the 33 establishment of the district and the levying of the proposed 34 taxes for the district, to the district court of the county 35 -5- LSB 5080XS (6) 86 md/sc 5/ 20

S.F. 2058 in which any part of the district is located within thirty 1 days after the date upon which the ordinance establishing the 2 district becomes effective, but the action and decision of 3 the council are final and conclusive unless the court finds 4 that the council exceeded its authority. An action may not 5 be brought questioning the regularity of the proceedings 6 pertaining to the establishment of a district or to the 7 validity of the district or to the propriety of the inclusion 8 or exclusion of any property within or from the district or to 9 the ability of the city to levy taxes in accordance with the 10 ordinance establishing the district after thirty days from the 11 date on which the ordinance establishing the district becomes 12 effective. 13 12. The procedural steps for the petitioning and 14 establishment of the district may be combined with the 15 procedural steps for the authorization of any improvement or 16 the procedural steps for the authorization of any tax or any 17 combination thereof. 18 13. The rate of debt service tax referred to in the petition 19 and the ordinance establishing the district shall only restrict 20 the amount of bonds which may be issued and shall not limit the 21 ability of the city to levy as necessary in subsequent years 22 to pay interest and amortize the principal of that amount of 23 bonds. 24 14. The ordinance establishing the district may provide 25 for the division of all of the property within the district 26 into two or more zones based upon a reasonable difference 27 in the relationship of the property or the interest of its 28 owners, whether the difference is qualitative or quantitative. 29 The ordinance establishing the district and establishing the 30 different zones may establish a different maximum rate of tax 31 for each zone or may provide that the rate of tax for a zone 32 shall be a certain set percentage of the maximum rate of tax 33 specified in the ordinance for levy in the district. 34 Sec. 4. NEW SECTION . 386A.4 Amendments to district. 35 -6- LSB 5080XS (6) 86 md/sc 6/ 20

S.F. 2058 1. The ordinance establishing the municipal park 1 improvement district may be amended and property may be added 2 to the district and the maximum rate of taxes specified in the 3 ordinance may be increased at any time in the same manner and 4 by the same procedure as for the establishment of a district. 5 Property added to a district shall be subject to all taxes 6 currently and subsequently levied, including debt service 7 levies for bonds previously or subsequently issued. 8 2. Action by the city council amending the ordinance 9 establishing the district, including adding eligible property 10 to the district or severing property from the district or 11 changing any maximum rate of taxes, shall be by ordinance 12 adopted by an affirmative vote of three-fourths of all of the 13 members of the council, or, in cities having but three members 14 of the council, the affirmative vote of two members. However, 15 if a remonstrance has been filed with the clerk signed by at 16 least twenty-five percent of all owners of property within the 17 district and all property proposed to be included representing 18 ownership of property with an assessed value of twenty-five 19 percent or more of the assessed value of all the property in 20 the district and all property proposed to be included, the 21 amending ordinance must be adopted by unanimous vote of the 22 council. 23 3. The clerk shall cause a copy of the amending ordinance to 24 be filed in the office of the county recorder of each county in 25 which any property within the district, as amended, is located. 26 4. At any time prior to council amendment of the ordinance 27 establishing the district, the entire matter of amending such 28 ordinance shall be withdrawn from council consideration if a 29 petition objecting to amending such ordinance is filed with the 30 city clerk containing either the signatures of at least forty 31 percent of all owners of property within the district and all 32 property proposed to be included or signatures which together 33 represent ownership of property with an assessed value of forty 34 percent or more of the assessed value of all property within 35 -7- LSB 5080XS (6) 86 md/sc 7/ 20

S.F. 2058 the district and all property proposed to be included. 1 5. Any resident or property owner of the city may appeal 2 the action or decisions of the council amending the ordinance 3 establishing the district to the district court of the county 4 in which any part of the district, as amended, is located, 5 within fifteen days after the date upon which the amending 6 ordinance becomes effective, but the action and decision of 7 the council are final and conclusive unless the court finds 8 that the council exceeded its authority. An action may not 9 be brought questioning the regularity of the proceedings 10 pertaining to the adoption of the amending ordinance or the 11 validity of the district, as amended, or the propriety of the 12 inclusion or exclusion of any property within or from the 13 amended district or the ability of the city to levy taxes 14 in accordance with the ordinance establishing the district, 15 as amended, after thirty days from the date upon which the 16 amending ordinance becomes effective. 17 6. All other provisions in section 386A.3 shall apply to 18 an amended district and to an ordinance amending the ordinance 19 establishing the district with the same effect as they apply 20 to the original district and the ordinance establishing the 21 original district. 22 Sec. 5. NEW SECTION . 386A.5 Dissolution. 23 1. A municipal park improvement district may be dissolved 24 and terminated by action of the city council repealing the 25 ordinance establishing the district, and any subsequent 26 ordinances amending the district, by an affirmative vote of 27 three-fourths of all members of the council, or, in cities 28 having but three members of the council, the affirmative vote 29 of two members. However, if a remonstrance has been filed 30 with the clerk signed by at least twenty-five percent of all 31 owners of property within the district representing ownership 32 of property with an assessed value of twenty-five percent or 33 more of the assessed value of all the property in the district, 34 the repeal of the ordinance establishing the district, and 35 -8- LSB 5080XS (6) 86 md/sc 8/ 20

S.F. 2058 any subsequent ordinances amending the district, requires a 1 unanimous vote of the council. 2 2. At any time prior to action of the council repealing 3 the ordinance establishing the district, and any subsequent 4 ordinances amending the district, the entire matter of 5 dissolving a district shall be withdrawn from council 6 consideration if a petition is filed with the city clerk 7 containing the signatures of at least forty percent of all 8 owners of property within the district or signatures which 9 together represent ownership of property with an assessed value 10 of forty percent or more of the assessed value of all property 11 within the district. 12 Sec. 6. NEW SECTION . 386A.6 Improvements. 13 A city proposing to construct an improvement the cost of 14 which is to be paid or financed under the provisions of this 15 chapter must do so in accordance with the provisions of this 16 section, as follows: 17 1. The city council shall initiate proceedings for a 18 proposed improvement upon receipt of a petition signed by at 19 least twenty-five percent of all owners of property within the 20 district representing ownership of property with an assessed 21 value of twenty-five percent or more of the assessed value of 22 all the property in the district. 23 2. Upon receipt of such a petition, the council shall notify 24 the city planning commission, if one exists, the metropolitan 25 or regional planning commission, if one exists, or the zoning 26 commission, if one exists, in the order set forth in section 27 386A.3, subsection 3. Upon notification by the council, the 28 commission shall prepare an evaluative report for the council 29 on the merit and feasibility of the improvement and carry out 30 all other duties as set forth in section 386A.3, subsection 31 3. If no planning or zoning commission exists, the council 32 shall set a time and place for a public hearing on a proposed 33 improvement upon receipt of a petition. 34 3. Upon receipt of the commission’s report, or after the 35 -9- LSB 5080XS (6) 86 md/sc 9/ 20

S.F. 2058 public hearing if applicable, the council shall set a time 1 and place for a meeting at which the council proposes to take 2 action on the proposed improvement and shall publish and mail 3 notice as provided in section 386A.3, subsection 4. 4 4. The notice must include a statement that an improvement 5 has been proposed, the nature of the improvement, the source of 6 payment of the cost of the improvement, and the time and place 7 of the meeting. 8 5. At the time and place set in the notice, the council 9 shall hear all owners of property in the district or residents 10 of the city desiring to express their views. The council must 11 wait at least thirty days after the meeting has been held 12 before it may adopt a resolution ordering construction of the 13 improvement. The provisions of section 386A.3, subsections 7 14 and 9, relating to the adoption of the ordinance establishing a 15 district, the requisite vote for adoption, the remonstrance to 16 adoption, and the withdrawal of the entire matter from council 17 consideration, apply to the adoption of the resolution ordering 18 the construction of the improvement. 19 6. If the council orders the construction of the 20 improvement, it shall proceed to let contracts for construction 21 of the improvement in accordance with chapter 26. 22 7. The adoption of a resolution ordering the construction of 23 an improvement is a legislative determination that the proposed 24 improvement is in furtherance of the purposes of the district 25 and that all property in the district will be affected by the 26 construction of the improvement, or that all owners of property 27 in the district have an interest in the construction of the 28 improvement. 29 8. Any resident or property owner of the city may appeal the 30 action or decisions of the council ordering the construction 31 of the improvement to the district court of the county in 32 which any part of the district is located within thirty days 33 after the adoption of the resolution ordering construction of 34 the improvement, but the action and decisions of the council 35 -10- LSB 5080XS (6) 86 md/sc 10/ 20

S.F. 2058 are final and conclusive unless the court finds that the 1 council exceeded its authority. An action may not be brought 2 questioning the regularity of the proceedings pertaining to the 3 ordering of the construction of an improvement or to the right 4 of the city to apply moneys in the park improvement capital 5 fund referred to in this chapter to the payment of the costs 6 of the improvement or to the right of the city to issue bonds 7 referred to in this chapter for the payment of the costs of the 8 improvement or to the right of the city to levy taxes which 9 with any other taxes authorized by this chapter do not exceed 10 the maximum rate of tax that may be imposed upon property 11 within the district for the payment of principal of and 12 interest on bonds issued to pay the costs of the improvement 13 after thirty days from the date of adoption of the resolution 14 ordering construction of the improvement. 15 9. The procedural steps contained in this section may be 16 combined with the procedural steps for the petitioning and 17 establishment of the district or the procedural steps for the 18 authorization of any tax or any combination thereof. 19 Sec. 7. NEW SECTION . 386A.7 Operation tax —— municipal park 20 improvement district operation fund. 21 A city may establish a municipal park improvement district 22 operation fund and may certify taxes not to exceed the rate 23 limitation specified in the ordinance establishing the 24 district, or any amendment to the ordinance, each year to 25 be levied for the fund against all of the property in the 26 district for the purpose of paying the administrative expenses 27 of the district, which may include but are not limited to 28 administrative personnel salaries, a separate administrative 29 office, planning costs, including consultation fees, 30 engineering fees, architectural fees, and legal fees, and all 31 other expenses reasonably associated with the administration 32 of the district and the fulfilling of the purposes of the 33 district. The taxes levied for this fund may also be used for 34 the purpose of paying maintenance expenses of improvements 35 -11- LSB 5080XS (6) 86 md/sc 11/ 20

S.F. 2058 for a specified length of time with one or more options to 1 renew if such is clearly stated in the petition requesting the 2 council to authorize construction of the improvement, whether 3 or not such petition is combined with the petition requesting 4 establishment of a district. A tax levied under this section 5 is not subject to the levy limitation in section 384.1. 6 Sec. 8. NEW SECTION . 386A.8 Municipal park improvement 7 capital tax —— fund. 8 A city may establish a municipal park improvement capital 9 fund for a district and may certify taxes not to exceed the 10 rate specified in the ordinance establishing the district, or 11 any subsequent amendment thereto, each year to be levied for 12 the fund against all of the property in the district for the 13 purpose of accumulating moneys for the financing or payment of 14 a part or all of the costs of any improvement. A tax levied 15 under this section is not subject to the levy limitations in 16 section 384.1 or 384.7. 17 Sec. 9. NEW SECTION . 386A.9 Debt service tax —— fund. 18 A city shall establish a municipal park improvement district 19 debt service fund whenever any municipal park improvement 20 district bonds are issued and outstanding, other than revenue 21 bonds, and shall certify taxes to be levied against all of the 22 property in the district for the district debt service fund in 23 the amount necessary to pay interest as it becomes due and the 24 amount necessary to pay, or to create a sinking fund to pay, 25 the principal at maturity of all municipal park improvement 26 district bonds as authorized in section 386A.10, issued by the 27 city. 28 Sec. 10. NEW SECTION . 386A.10 Municipal park improvement 29 district bonds. 30 1. A city may issue and sell municipal park improvement 31 district bonds at public or private sale payable from taxes 32 which must be levied in accordance with chapter 76. The 33 bonds are payable from the levy of unlimited ad valorem taxes 34 on all the taxable property within the district through the 35 -12- LSB 5080XS (6) 86 md/sc 12/ 20

S.F. 2058 district debt service fund authorized by section 386A.9. When 1 municipal park improvement district bonds are issued and taxes 2 are levied, the taxes shall continue to be levied until the 3 bonds and interest thereon are paid in full, against all of 4 the taxable property that was included in the district at the 5 time of the issuance of the bonds, regardless of any subsequent 6 severance of property from the district or the dissolution of 7 the district. In addition, all property added to a district 8 shall be subject to such taxes pursuant to section 386A.4, 9 subsection 1. 10 2. The proceeds of the sale of the bonds may be used to pay 11 any or all of the costs of an improvement or may be used to pay 12 any legal indebtedness incurred for the cost of an improvement, 13 including bonds or warrants previously issued to pay the costs 14 of an improvement, or the bonds may be exchanged for the 15 evidences of such legal indebtedness. 16 3. Before the city council may institute proceedings for 17 the issuance of bonds, it shall proceed in the same manner 18 as is required for instituting proceedings for the issuance 19 of bonds for an essential corporate purpose as provided in 20 section 384.25, subsection 2, and all of the provisions of that 21 subsection apply to bonds issued pursuant to this section. 22 4. A city may issue bonds authorized by this section 23 pursuant to a resolution adopted at a regular or special 24 meeting of the city council by an affirmative vote of a 25 majority of the total members to which the council is entitled. 26 The proceeds of a single bond issue may be used for more than 27 one improvement. 28 5. The provisions of sections 384.29, 384.30, and 384.31 29 apply to bonds issued pursuant to this section, except that the 30 bonds shall be designated “municipal park improvement district 31 bonds”. 32 6. An action may not be brought questioning the legality of 33 bonds issued pursuant to this section or the power of a city 34 to issue the bonds or the effectiveness of any proceedings 35 -13- LSB 5080XS (6) 86 md/sc 13/ 20

S.F. 2058 relating to the authorization and issuance of the bonds after 1 thirty days from the time the bonds are ordered issued by the 2 city. 3 Sec. 11. NEW SECTION . 386A.11 Payment for improvements. 4 The costs of improvements may be paid from any of the 5 following sources or a combination of the following sources: 6 1. The municipal park improvement capital fund referred to 7 in section 386A.8. 8 2. The proceeds of bonds referred to in section 386A.10. 9 3. Any other funds of the city which are legally available 10 to pay all or a portion of the cost of an improvement. The 11 fact that an improvement is initiated under the provisions of 12 this chapter, or that any of the costs of an improvement or 13 any part of an improvement are being paid under the provisions 14 of this chapter, shall not preclude the city from paying any 15 costs of an improvement from any fund from which the city might 16 otherwise have been able to pay such costs. In addition, 17 and not in limitation of the foregoing, an improvement that 18 constitutes an essential corporate purpose or a general 19 corporate purpose, as defined in section 384.24, subsections 3 20 and 4, may be financed in whole or in part with the proceeds of 21 the issuance of general obligation bonds of the city pursuant 22 to the provisions of chapter 384, division III. 23 4. Payment for the costs of an improvement may also be 24 made in warrants drawn on any fund from which payment for the 25 improvement is authorized by this chapter. If such funds are 26 depleted, anticipatory warrants may be issued bearing a rate 27 of interest not exceeding that permitted by chapter 74A, which 28 do not constitute a violation of section 384.10, even if the 29 collection of taxes or income received from the sale of bonds 30 applicable to the improvement is after the end of the fiscal 31 year in which the warrants are issued. If the city arranges 32 for the private sale of anticipatory warrants, the warrants 33 may be sold and the proceeds used to pay the costs of the 34 improvement. 35 -14- LSB 5080XS (6) 86 md/sc 14/ 20

S.F. 2058 Sec. 12. NEW SECTION . 386A.12 Low-income tax abatement —— 1 petition. 2 1. If a residential property owner within the district has 3 annual household income that is less than one hundred percent 4 of the federal poverty level based on the number of people in 5 the owner’s household, as defined by the most recently revised 6 poverty income guidelines published by the United States 7 department of health and human services, the owner may file a 8 petition, duly sworn to, with the city council stating that 9 fact and giving a statement of parcels, as defined in section 10 445.1, owned or possessed by the petitioner and used by the 11 owner as a primary residence, and other information as the city 12 council may require. The petition shall be filed with the city 13 clerk by March 1 of the current tax year. 14 2. If the owner satisfies the requirements of subsection 1, 15 the city council shall order the county treasurer to suspend 16 the collection of all taxes imposed under this chapter on the 17 petitioner’s property used as a primary residence for the 18 current year and each of the two years immediately following 19 the current year. 20 3. An abatement of taxes under this section is rescinded 21 when the property is sold or transferred. 22 4. Following expiration of the three-year abatement period 23 approved under subsection 2, a new petition must be filed by 24 the owner. 25 5. If an abatement petition is denied by the city council, 26 the property owner may appeal the decision of the city council 27 to the district court of the county in which any part of the 28 city is located within fifteen days after the date of the 29 denial, but action of the council is final and conclusive 30 unless the court finds that the council exceeded its authority. 31 Sec. 13. NEW SECTION . 386A.13 Independent provisions. 32 The provisions of this chapter with respect to notice, 33 hearing, and appeal for the construction of improvements and 34 the issuance and sale of bonds are in lieu of the provisions 35 -15- LSB 5080XS (6) 86 md/sc 15/ 20

S.F. 2058 contained in chapters 73A and 75, or any other law, unless 1 specifically referred to and made applicable by this chapter. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill relates to municipal park improvements by 6 authorizing the establishment of municipal park improvement 7 districts, the issuance of municipal park improvement district 8 bonds, and the imposition of specified taxes. 9 Under new Code chapter 386A, a municipal park improvement 10 district (district) may be established by action of the 11 city council for the purpose of undertaking improvements 12 within the district. The bill defines “improvement” to be 13 the acquisition, construction, reconstruction, enlargement, 14 improvement, and equipping of recreation grounds, recreation 15 buildings, juvenile playgrounds, swimming pools, recreation 16 centers, and parks, and the acquisition of real estate 17 therefor. 18 A district must be comprised of contiguous property 19 wholly within the boundaries of the city, be comprised only 20 of property that is zoned for residential, commercial, or 21 industrial uses, and be comprised of property related in some 22 manner, including but not limited to present or potential use, 23 physical location, condition, or relationship to an area so 24 as to be benefited in any manner, including but not limited 25 to a benefit from present or potential use or enjoyment of 26 the property, by the operation of the district or of any 27 improvement of the district. 28 The proceedings for establishing a district are initiated 29 upon the filing of a petition containing the signatures of at 30 least 25 percent of all owners of property within the proposed 31 district. These signatures must together represent ownership 32 of property with an assessed value of 25 percent or more of the 33 assessed value of all of the property in the proposed district. 34 The petition must also, in part, include a description of the 35 -16- LSB 5080XS (6) 86 md/sc 16/ 20

S.F. 2058 boundaries of the proposed district or a description of the 1 property within the proposed district, the name of the proposed 2 district, a statement of the maximum rate of tax that may be 3 imposed upon property within the district, and the purpose of 4 the establishment of the district. 5 Following receipt of a petition, the city council must 6 notify the city planning commission. It is the duty of 7 the city planning commission to make recommendations to the 8 council in regard to the proposed district. The bill provides 9 alternative review procedures if the city does not have a city 10 planning commission. 11 Upon receipt of the planning commission’s final report, the 12 city council is to set a time and place for a meeting at which 13 the council proposes to take action for the establishment of 14 the district. In addition to the time and place of the meeting 15 for hearing on the petition, the notice of the meeting must 16 state that a petition has been filed with the council asking 17 that a district be established, the name of the district, the 18 purpose of the district, the property proposed to be included 19 in the district, and the maximum rate of tax which may be 20 imposed upon the property in the district. 21 At the meeting, the city council is required to hear all 22 owners of property in the proposed district or residents of 23 the city desiring to express their views. The council must 24 wait at least 30 days after the meeting has been held before 25 it may adopt an ordinance establishing a district. Property 26 included in the proposed district need not be included in the 27 established district. However, property may not be included in 28 the district that was not included in the petition proposing 29 the district until the council has held another meeting for 30 hearing. 31 Adoption of the ordinance establishing a district requires 32 the affirmative vote of three-fourths of all of the members of 33 the council, or, in cities having a three-member council, the 34 affirmative vote of two members. However, if a remonstrance 35 -17- LSB 5080XS (6) 86 md/sc 17/ 20

S.F. 2058 has been filed with the city clerk signed by at least 25 1 percent of all owners of property within the proposed district 2 representing ownership of property with an assessed value of 25 3 percent or more of the assessed value of all of the property in 4 the proposed district, the adoption of the ordinance requires a 5 unanimous vote of the council. Additionally under the bill, 6 at any time prior to adoption of an ordinance establishing a 7 district, the entire matter of establishing such district shall 8 be withdrawn from council consideration if a petition objecting 9 to establishing such district is filed with the city clerk 10 containing the signatures of at least 40 percent of all owners 11 of property within the proposed district or signatures which 12 together represent ownership of property with an assessed value 13 of 40 percent or more of the assessed value of all property 14 within the proposed district. 15 The ordinance establishing the district may provide for 16 the division of all of the property within the district into 17 two or more zones based upon a reasonable difference in the 18 relationship of the property or the interest of property 19 owners. The ordinance may establish a different maximum rate 20 of tax for each zone in the district. 21 The bill specifies the procedures for residents of the city 22 and property owners to appeal establishment of a district. 23 The council shall initiate proceedings for a proposed park 24 improvement in a district upon receipt of a petition signed 25 by at least 25 percent of all owners of property within the 26 district representing ownership of property with an assessed 27 value of 25 percent or more of the assessed value of all 28 the property in the district. The notice, meeting, and 29 approval requirements for an improvement in the district are 30 similar to those for establishment of the district. The bill, 31 however, provides for the consolidation of procedural steps 32 for the petitioning and establishment of the district with 33 the procedural steps for the authorization of any improvement 34 or with the procedural steps for the authorization of any 35 -18- LSB 5080XS (6) 86 md/sc 18/ 20