SF 2058 (LSB 5080XS (6) 86)

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 the establishment of municipal park improvement districts, the issuance of bonds, and the imposition of specified taxes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  386A.1  Definitions.
   As used in this chapter, unless the context requires otherwise:
   1.  “Book”, “list”, “record”, or “schedule” kept by a county auditor, assessor, treasurer, recorder, sheriff, or other county officer means the county system as defined in section 445.1.
   2.  “Cost” of any improvement includes construction contracts and the cost of engineering services, architectural services, technical services, legal services, preliminary reports, property valuations, estimates, plans, specifications, notices, acquisition of real and personal property, consequential damages or costs, easements, rights-of-way, supervision, inspection, testing, publications, printing and sale of bonds, interest during construction and for not more than six months after construction is completed, and provisions for contingencies.
   3.  “Improvement” means the acquisition, construction, reconstruction, enlargement, improvement, and equipping of recreation grounds, recreation buildings, juvenile playgrounds, swimming pools, recreation centers, and parks, and the acquisition of real estate for such improvements.
   4.  “Property” means real property as defined in section 4.1, subsection 13, and in section 427A.1, subsection 1, paragraph “h”.
   5.  “Property owner” or “owner” means the owner of property, as shown by the transfer books in the office of the county auditor of the county in which the property is located.
   6.  All definitions in section 362.2 are incorporated by reference as a part of this chapter, except as provided in subsection 4 of this section.
    Sec. 2.  NEW SECTION.  386A.2  Authorization.
   A city that proposes to establish a municipal park improvement district, to provide for its existence and operation, to provide for improvements for the district, to authorize and issue bonds for the purposes of the district, and to levy the taxes authorized by this chapter must do so in accordance with the provisions of this chapter.
    Sec. 3.  NEW SECTION.  386A.3  Establishment of district.
   1.  A municipal park improvement district may be established by action of the city council in accordance with the provisions of this chapter. A district shall:
   a.  Be comprised of contiguous property wholly within the boundaries of the city. A district shall be comprised only of property that is zoned for residential, commercial, or industrial uses.
   b.  Be given a descriptive name containing the words “municipal park improvement district”.
   c.  Be comprised of property related in some manner, including but not limited to present or potential use, physical location, condition, or relationship to an area, so as to be benefited in any manner, including but not limited to a benefit from present or potential use or enjoyment of the property, by the operation of the district or of any improvement of the district.
   2.  The council shall initiate proceedings for establishing a district upon the filing with the city clerk of a petition containing the following:
   a.  The signatures of at least twenty-five percent of all owners of property within the proposed district. These signatures must together represent ownership of property with an assessed value of twenty-five percent or more of the assessed value of all of the property in the proposed district.
   b.  A description of the boundaries of the proposed district or a description of the property within the proposed district.
   c.  The name of the proposed district.
   d.  A statement of the maximum rate of tax that may be imposed upon property within the district. The maximum rate of tax may be stated in terms of separate maximum rates for the debt service tax, the park improvement capital fund tax, and the operation tax.
   e.  The purpose of the establishment of the district, which may be stated generally or in terms of the relationship of the property within the district or the interests of the owners of property within the district or in terms of the improvements proposed to be undertaken for the purposes of the district.
   f.  A statement that taxes levied for the municipal park improvement district operation fund shall be used for the purpose of paying maintenance expenses of improvements for a specified length of time, along with any options to renew, if the taxes are to be used for this maintenance purpose.
   3.  a.  The council shall notify the city planning commission upon receipt of a petition. It shall be the duty of the city planning commission to make recommendations to the council in regard to the proposed district. The city planning commission shall, with due diligence, prepare an evaluative report for the council on the merit and feasibility of the project. The council shall not hold its public hearings or take further action on the establishment of the district until it has received the report of the city planning commission. In addition to its report, the commission may, from time to time, recommend to the council amendments and changes relating to the project.
   b.  If no city planning commission exists, the council shall notify the metropolitan or regional planning commission upon receipt of a petition, and such metropolitan or regional planning commission shall have the same duties set forth in this subsection as the city planning commission. If no metropolitan or regional planning commission exists, the council shall notify the zoning commission upon receipt of a petition, and the zoning commission shall have the same duties set forth in this subsection as the city planning commission. If no planning or zoning commission exists, the council shall set a time and place for holding a public hearing on establishment of a district upon receipt of a petition and shall publish notice of the hearing as provided in section 362.3.
   4.  Upon receipt of the commission’s final report, or after the public hearing if applicable, the council shall set a time and place for a meeting at which the council proposes to take action for the establishment of the district and shall publish notice of the meeting as provided in section 362.3. The clerk shall send a copy of the notice by certified mail not less than fifteen days before the meeting to each owner of property within the proposed district at the owner’s address as shown by the records of the county auditor. If a property is shown to be in the name of more than one owner at the same mailing address, a single notice may be mailed addressed to all owners at that address. Failure to receive a mailed notice is not grounds for objection to the council taking any action authorized in this chapter.
   5.  In addition to the time and place of the meeting for hearing on the petition, the notice must state the following:
   a.  That a petition has been filed with the council asking that a district be established.
   b.  The name of the district.
   c.  The purpose of the district.
   d.  The property proposed to be included in the district.
   e.  The maximum rates of tax which may be imposed upon the property in the district.
   6.  At the time and place set in the notice the council shall hear all owners of property in the proposed district or residents of the city desiring to express their views. The council must wait at least thirty days after the meeting has been held before it may adopt an ordinance establishing a district meeting the requirements of section 386A.3, subsection 1. Property included in the petition proposing the district need not be included in the established district. However, the council may not include property in the district that was not included in the petition until the council has held another meeting after it has published notice and mailed notice to owners of the additional property, as required in subsection 4, and containing the information required in subsection 5.
   7.  Adoption of the ordinance establishing a district requires the affirmative vote of three-fourths of all of the members of the council, or, in cities having but three members of the council, the affirmative vote of two members. However, if a remonstrance has been filed with the clerk signed by at least twenty-five percent of all owners of property within the proposed district representing ownership of property with an assessed value of twenty-five percent or more of the assessed value of all of the property in the proposed district, the adoption of the ordinance requires a unanimous vote of the council.
   8.  The city clerk shall cause a copy of the ordinance to be filed in the office of the county recorder of each county in which any property within the district is located.
   9.  At any time prior to adoption of an ordinance establishing a district, the entire matter of establishing such district shall be withdrawn from council consideration if a petition objecting to establishing such district is filed with the city clerk containing the signatures of at least forty percent of all owners of property within the proposed district or signatures which together represent ownership of property with an assessed value of forty percent or more of the assessed value of all property within the proposed district.
   10.  The adoption of an ordinance establishing a district is a legislative determination that the property within the district has the relationship required and includes all of the property within the area that has that relationship in the district.
   11.  Any resident or property owner of the city may appeal the action and the decisions of the council, including the establishment of the district and the levying of the proposed taxes for the district, to the district court of the county in which any part of the district is located within thirty days after the date upon which the ordinance establishing the district becomes effective, but the action and decision of the council are final and conclusive unless the court finds that the council exceeded its authority. An action may not be brought questioning the regularity of the proceedings pertaining to the establishment of a district or to the validity of the district or to the propriety of the inclusion or exclusion of any property within or from the district or to the ability of the city to levy taxes in accordance with the ordinance establishing the district after thirty days from the date on which the ordinance establishing the district becomes effective.
   12.  The procedural steps for the petitioning and establishment of the district may be combined with the procedural steps for the authorization of any improvement or the procedural steps for the authorization of any tax or any combination thereof.
   13.  The rate of debt service tax referred to in the petition and the ordinance establishing the district shall only restrict the amount of bonds which may be issued and shall not limit the ability of the city to levy as necessary in subsequent years to pay interest and amortize the principal of that amount of bonds.
   14.  The ordinance establishing the district may provide for the division of all of the property within the district into two or more zones based upon a reasonable difference in the relationship of the property or the interest of its owners, whether the difference is qualitative or quantitative. The ordinance establishing the district and establishing the different zones may establish a different maximum rate of tax for each zone or may provide that the rate of tax for a zone shall be a certain set percentage of the maximum rate of tax specified in the ordinance for levy in the district.
    Sec. 4.  NEW SECTION.  386A.4  Amendments to district.
   1.  The ordinance establishing the municipal park improvement district may be amended and property may be added to the district and the maximum rate of taxes specified in the ordinance may be increased at any time in the same manner and by the same procedure as for the establishment of a district. Property added to a district shall be subject to all taxes currently and subsequently levied, including debt service levies for bonds previously or subsequently issued.
   2.  Action by the city council amending the ordinance establishing the district, including adding eligible property to the district or severing property from the district or changing any maximum rate of taxes, shall be by ordinance adopted by an affirmative vote of three-fourths of all of the members of the council, or, in cities having but three members of the council, the affirmative vote of two members. However, if a remonstrance has been filed with the clerk signed by at least twenty-five percent of all owners of property within the district and all property proposed to be included representing ownership of property with an assessed value of twenty-five percent or more of the assessed value of all the property in the district and all property proposed to be included, the amending ordinance must be adopted by unanimous vote of the council.
   3.  The clerk shall cause a copy of the amending ordinance to be filed in the office of the county recorder of each county in which any property within the district, as amended, is located.
   4.  At any time prior to council amendment of the ordinance establishing the district, the entire matter of amending such ordinance shall be withdrawn from council consideration if a petition objecting to amending such ordinance is filed with the city clerk containing either the signatures of at least forty percent of all owners of property within the district and all property proposed to be included or signatures which together represent ownership of property with an assessed value of forty percent or more of the assessed value of all property within the district and all property proposed to be included.
   5.  Any resident or property owner of the city may appeal the action or decisions of the council amending the ordinance establishing the district to the district court of the county in which any part of the district, as amended, is located, within fifteen days after the date upon which the amending ordinance becomes effective, but the action and decision of the council are final and conclusive unless the court finds that the council exceeded its authority. An action may not be brought questioning the regularity of the proceedings pertaining to the adoption of the amending ordinance or the validity of the district, as amended, or the propriety of the inclusion or exclusion of any property within or from the amended district or the ability of the city to levy taxes in accordance with the ordinance establishing the district, as amended, after thirty days from the date upon which the amending ordinance becomes effective.
   6.  All other provisions in section 386A.3 shall apply to an amended district and to an ordinance amending the ordinance establishing the district with the same effect as they apply to the original district and the ordinance establishing the original district.
    Sec. 5.  NEW SECTION.  386A.5  Dissolution.
   1.  A municipal park improvement district may be dissolved and terminated by action of the city council repealing the ordinance establishing the district, and any subsequent ordinances amending the district, by an affirmative vote of three-fourths of all members of the council, or, in cities having but three members of the council, the affirmative vote of two members. However, if a remonstrance has been filed with the clerk signed by at least twenty-five percent of all owners of property within the district representing ownership of property with an assessed value of twenty-five percent or more of the assessed value of all the property in the district, the repeal of the ordinance establishing the district, and any subsequent ordinances amending the district, requires a unanimous vote of the council.
   2.  At any time prior to action of the council repealing the ordinance establishing the district, and any subsequent ordinances amending the district, the entire matter of dissolving a district shall be withdrawn from council consideration if a petition is filed with the city clerk containing the signatures of at least forty percent of all owners of property within the district or signatures which together represent ownership of property with an assessed value of forty percent or more of the assessed value of all property within the district.
    Sec. 6.  NEW SECTION.  386A.6  Improvements.
    A city proposing to construct an improvement the cost of which is to be paid or financed under the provisions of this chapter must do so in accordance with the provisions of this section, as follows:
   1.  The city council shall initiate proceedings for a proposed improvement upon receipt of a petition signed by at least twenty-five percent of all owners of property within the district representing ownership of property with an assessed value of twenty-five percent or more of the assessed value of all the property in the district.
   2.  Upon receipt of such a petition, the council shall notify the city planning commission, if one exists, the metropolitan or regional planning commission, if one exists, or the zoning commission, if one exists, in the order set forth in section 386A.3, subsection 3. Upon notification by the council, the commission shall prepare an evaluative report for the council on the merit and feasibility of the improvement and carry out all other duties as set forth in section 386A.3, subsection 3. If no planning or zoning commission exists, the council shall set a time and place for a public hearing on a proposed improvement upon receipt of a petition.
   3.  Upon receipt of the commission’s report, or after the public hearing if applicable, the council shall set a time and place for a meeting at which the council proposes to take action on the proposed improvement and shall publish and mail notice as provided in section 386A.3, subsection 4.
   4.  The notice must include a statement that an improvement has been proposed, the nature of the improvement, the source of payment of the cost of the improvement, and the time and place of the meeting.
   5.  At the time and place set in the notice, the council shall hear all owners of property in the district or residents of the city desiring to express their views. The council must wait at least thirty days after the meeting has been held before it may adopt a resolution ordering construction of the improvement. The provisions of section 386A.3, subsections 7 and 9, relating to the adoption of the ordinance establishing a district, the requisite vote for adoption, the remonstrance to adoption, and the withdrawal of the entire matter from council consideration, apply to the adoption of the resolution ordering the construction of the improvement.
   6.  If the council orders the construction of the improvement, it shall proceed to let contracts for construction of the improvement in accordance with chapter 26.
   7.  The adoption of a resolution ordering the construction of an improvement is a legislative determination that the proposed improvement is in furtherance of the purposes of the district and that all property in the district will be affected by the construction of the improvement, or that all owners of property in the district have an interest in the construction of the improvement.
   8.  Any resident or property owner of the city may appeal the action or decisions of the council ordering the construction of the improvement to the district court of the county in which any part of the district is located within thirty days after the adoption of the resolution ordering construction of the improvement, but the action and decisions of the council are final and conclusive unless the court finds that the council exceeded its authority. An action may not be brought questioning the regularity of the proceedings pertaining to the ordering of the construction of an improvement or to the right of the city to apply moneys in the park improvement capital fund referred to in this chapter to the payment of the costs of the improvement or to the right of the city to issue bonds referred to in this chapter for the payment of the costs of the improvement or to the right of the city to levy taxes which with any other taxes authorized by this chapter do not exceed the maximum rate of tax that may be imposed upon property within the district for the payment of principal of and interest on bonds issued to pay the costs of the improvement after thirty days from the date of adoption of the resolution ordering construction of the improvement.
   9.  The procedural steps contained in this section may be combined with the procedural steps for the petitioning and establishment of the district or the procedural steps for the authorization of any tax or any combination thereof.
    Sec. 7.  NEW SECTION.  386A.7  Operation tax —— municipal park improvement district operation fund.
   A city may establish a municipal park improvement district operation fund and may certify taxes not to exceed the rate limitation specified in the ordinance establishing the district, or any amendment to the ordinance, each year to be levied for the fund against all of the property in the district for the purpose of paying the administrative expenses of the district, which may include but are not limited to administrative personnel salaries, a separate administrative office, planning costs, including consultation fees, engineering fees, architectural fees, and legal fees, and all other expenses reasonably associated with the administration of the district and the fulfilling of the purposes of the district. The taxes levied for this fund may also be used for the purpose of paying maintenance expenses of improvements for a specified length of time with one or more options to renew if such is clearly stated in the petition requesting the council to authorize construction of the improvement, whether or not such petition is combined with the petition requesting establishment of a district. A tax levied under this section is not subject to the levy limitation in section 384.1.
    Sec. 8.  NEW SECTION.  386A.8  Municipal park improvement capital tax —— fund.
   A city may establish a municipal park improvement capital fund for a district and may certify taxes not to exceed the rate specified in the ordinance establishing the district, or any subsequent amendment thereto, each year to be levied for the fund against all of the property in the district for the purpose of accumulating moneys for the financing or payment of a part or all of the costs of any improvement. A tax levied under this section is not subject to the levy limitations in section 384.1 or 384.7.
    Sec. 9.  NEW SECTION.  386A.9  Debt service tax —— fund.
   A city shall establish a municipal park improvement district debt service fund whenever any municipal park improvement district bonds are issued and outstanding, other than revenue bonds, and shall certify taxes to be levied against all of the property in the district for the district debt service fund in the amount necessary to pay interest as it becomes due and the amount necessary to pay, or to create a sinking fund to pay, the principal at maturity of all municipal park improvement district bonds as authorized in section 386A.10, issued by the city.
    Sec. 10.  NEW SECTION.  386A.10  Municipal park improvement district bonds.
   1.  A city may issue and sell municipal park improvement district bonds at public or private sale payable from taxes which must be levied in accordance with chapter 76. The bonds are payable from the levy of unlimited ad valorem taxes on all the taxable property within the district through the district debt service fund authorized by section 386A.9. When municipal park improvement district bonds are issued and taxes are levied, the taxes shall continue to be levied until the bonds and interest thereon are paid in full, against all of the taxable property that was included in the district at the time of the issuance of the bonds, regardless of any subsequent severance of property from the district or the dissolution of the district. In addition, all property added to a district shall be subject to such taxes pursuant to section 386A.4, subsection 1.
   2.  The proceeds of the sale of the bonds may be used to pay any or all of the costs of an improvement or may be used to pay any legal indebtedness incurred for the cost of an improvement, including bonds or warrants previously issued to pay the costs of an improvement, or the bonds may be exchanged for the evidences of such legal indebtedness.
   3.  Before the city council may institute proceedings for the issuance of bonds, it shall proceed in the same manner as is required for instituting proceedings for the issuance of bonds for an essential corporate purpose as provided in section 384.25, subsection 2, and all of the provisions of that subsection apply to bonds issued pursuant to this section.
   4.  A city may issue bonds authorized by this section pursuant to a resolution adopted at a regular or special meeting of the city council by an affirmative vote of a majority of the total members to which the council is entitled. The proceeds of a single bond issue may be used for more than one improvement.
   5.  The provisions of sections 384.29, 384.30, and 384.31 apply to bonds issued pursuant to this section, except that the bonds shall be designated “municipal park improvement district bonds”.
   6.  An action may not be brought questioning the legality of bonds issued pursuant to this section or the power of a city to issue the bonds or the effectiveness of any proceedings relating to the authorization and issuance of the bonds after thirty days from the time the bonds are ordered issued by the city.
    Sec. 11.  NEW SECTION.  386A.11  Payment for improvements.
   The costs of improvements may be paid from any of the following sources or a combination of the following sources:
   1.  The municipal park improvement capital fund referred to in section 386A.8.
   2.  The proceeds of bonds referred to in section 386A.10.
   3.  Any other funds of the city which are legally available to pay all or a portion of the cost of an improvement. The fact that an improvement is initiated under the provisions of this chapter, or that any of the costs of an improvement or any part of an improvement are being paid under the provisions of this chapter, shall not preclude the city from paying any costs of an improvement from any fund from which the city might otherwise have been able to pay such costs. In addition, and not in limitation of the foregoing, an improvement that constitutes an essential corporate purpose or a general corporate purpose, as defined in section 384.24, subsections 3 and 4, may be financed in whole or in part with the proceeds of the issuance of general obligation bonds of the city pursuant to the provisions of chapter 384, division III.
   4.  Payment for the costs of an improvement may also be made in warrants drawn on any fund from which payment for the improvement is authorized by this chapter. If such funds are depleted, anticipatory warrants may be issued bearing a rate of interest not exceeding that permitted by chapter 74A, which do not constitute a violation of section 384.10, even if the collection of taxes or income received from the sale of bonds applicable to the improvement is after the end of the fiscal year in which the warrants are issued. If the city arranges for the private sale of anticipatory warrants, the warrants may be sold and the proceeds used to pay the costs of the improvement.
    Sec. 12.  NEW SECTION.  386A.12  Low-income tax abatement —— petition.
   1.  If a residential property owner within the district has annual household income that is less than one hundred percent of the federal poverty level based on the number of people in the owner’s household, as defined by the most recently revised poverty income guidelines published by the United States department of health and human services, the owner may file a petition, duly sworn to, with the city council stating that fact and giving a statement of parcels, as defined in section 445.1, owned or possessed by the petitioner and used by the owner as a primary residence, and other information as the city council may require. The petition shall be filed with the city clerk by March 1 of the current tax year.
   2.  If the owner satisfies the requirements of subsection 1, the city council shall order the county treasurer to suspend the collection of all taxes imposed under this chapter on the petitioner’s property used as a primary residence for the current year and each of the two years immediately following the current year.
   3.  An abatement of taxes under this section is rescinded when the property is sold or transferred.
   4.  Following expiration of the three-year abatement period approved under subsection 2, a new petition must be filed by the owner.
   5.  If an abatement petition is denied by the city council, the property owner may appeal the decision of the city council to the district court of the county in which any part of the city is located within fifteen days after the date of the denial, but action of the council is final and conclusive unless the court finds that the council exceeded its authority.
    Sec. 13.  NEW SECTION.  386A.13  Independent provisions.
   The provisions of this chapter with respect to notice, hearing, and appeal for the construction of improvements and the issuance and sale of bonds are in lieu of the provisions contained in chapters 73A and 75, or any other law, unless specifically referred to and made applicable by this chapter.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to municipal park improvements by authorizing the establishment of municipal park improvement districts, the issuance of municipal park improvement district bonds, and the imposition of specified taxes.
   Under new Code chapter 386A, a municipal park improvement district (district) may be established by action of the city council for the purpose of undertaking improvements within the district. The bill defines “improvement” to be the acquisition, construction, reconstruction, enlargement, improvement, and equipping of recreation grounds, recreation buildings, juvenile playgrounds, swimming pools, recreation centers, and parks, and the acquisition of real estate therefor.
   A district must be comprised of contiguous property wholly within the boundaries of the city, be comprised only of property that is zoned for residential, commercial, or industrial uses, and be comprised of property related in some manner, including but not limited to present or potential use, physical location, condition, or relationship to an area so as to be benefited in any manner, including but not limited to a benefit from present or potential use or enjoyment of the property, by the operation of the district or of any improvement of the district.
   The proceedings for establishing a district are initiated upon the filing of a petition containing the signatures of at least 25 percent of all owners of property within the proposed district. These signatures must together represent ownership of property with an assessed value of 25 percent or more of the assessed value of all of the property in the proposed district. The petition must also, in part, include a description of the boundaries of the proposed district or a description of the property within the proposed district, the name of the proposed district, a statement of the maximum rate of tax that may be imposed upon property within the district, and the purpose of the establishment of the district.
   Following receipt of a petition, the city council must notify the city planning commission. It is the duty of the city planning commission to make recommendations to the council in regard to the proposed district. The bill provides alternative review procedures if the city does not have a city planning commission.
   Upon receipt of the planning commission’s final report, the city council is to set a time and place for a meeting at which the council proposes to take action for the establishment of the district. In addition to the time and place of the meeting for hearing on the petition, the notice of the meeting must state that a petition has been filed with the council asking that a district be established, the name of the district, the purpose of the district, the property proposed to be included in the district, and the maximum rate of tax which may be imposed upon the property in the district.
   At the meeting, the city council is required to hear all owners of property in the proposed district or residents of the city desiring to express their views. The council must wait at least 30 days after the meeting has been held before it may adopt an ordinance establishing a district. Property included in the proposed district need not be included in the established district. However, property may not be included in the district that was not included in the petition proposing the district until the council has held another meeting for hearing.
   Adoption of the ordinance establishing a district requires the affirmative vote of three-fourths of all of the members of the council, or, in cities having a three-member council, the affirmative vote of two members. However, if a remonstrance has been filed with the city clerk signed by at least 25 percent of all owners of property within the proposed district representing ownership of property with an assessed value of 25 percent or more of the assessed value of all of the property in the proposed district, the adoption of the ordinance requires a unanimous vote of the council. Additionally under the bill, at any time prior to adoption of an ordinance establishing a district, the entire matter of establishing such district shall be withdrawn from council consideration if a petition objecting to establishing such district is filed with the city clerk containing the signatures of at least 40 percent of all owners of property within the proposed district or signatures which together represent ownership of property with an assessed value of 40 percent or more of the assessed value of all property within the proposed district.
   The ordinance establishing the district may provide for the division of all of the property within the district into two or more zones based upon a reasonable difference in the relationship of the property or the interest of property owners. The ordinance may establish a different maximum rate of tax for each zone in the district.
   The bill specifies the procedures for residents of the city and property owners to appeal establishment of a district.
   The council shall initiate proceedings for a proposed park improvement in a district upon receipt of a petition signed by at least 25 percent of all owners of property within the district representing ownership of property with an assessed value of 25 percent or more of the assessed value of all the property in the district. The notice, meeting, and approval requirements for an improvement in the district are similar to those for establishment of the district. The bill, however, provides for the consolidation of procedural steps for the petitioning and establishment of the district with the procedural steps for the authorization of any improvement or with the procedural steps for the authorization of any tax, or any combination thereof. The bill also specifies the procedures and requirements for amending the ordinance establishing the district and for dissolution of the district.
   Contracts for improvements within a district must be entered into in accordance with Code chapter 26.
   The bill authorizes a city to establish a municipal park improvement district operation fund, and the city may certify taxes not to exceed the rate limitation as established in the ordinance establishing the district for the purpose of paying the administrative expenses of the district. The taxes levied for this fund may also be used for the purpose of paying maintenance expenses of improvements for a specified length of time, and may be renewed, if such is clearly stated in the petition requesting the improvement.
   A city may also establish a municipal park improvement capital fund for a district, and the city may certify taxes not to exceed the rate specified in the ordinance establishing the district for the purpose of accumulating moneys for the financing or payment of a part or all of the costs of any improvement.
   The bill authorizes a city to issue and sell municipal park improvement district bonds. The proceeds of the sale of the bonds may be used to pay any or all of the costs of an improvement or may be used to pay any legal indebtedness incurred for the cost of an improvement, including bonds or warrants previously issued to pay the costs of an improvement, or the bonds may be exchanged for the evidences of such legal indebtedness.
   A city shall establish a municipal park improvement district debt service fund whenever any municipal park improvement district bonds are issued and outstanding, other than revenue bonds, and shall certify taxes to be levied against all of the property in the district for the debt service fund in the amount necessary to pay interest as it becomes due.
   The bill provides that if a residential property owner within the district has annual household income that is less than 100 percent of the federal poverty level, the owner may file a petition with the city clerk for abatement of the taxes imposed under the authority contained in new Code chapter 386A. If the owner satisfies the requirements for abatement, the city council shall order the county treasurer to suspend the collection of all municipal park improvement district taxes imposed on the petitioner’s property used as a primary residence for the current year and each of the two years immediately following the current year. An approved abatement of taxes is rescinded when the property is sold or transferred. Following expiration of the three-year abatement period, a new petition must be filed by the property owner. The bill provides for appeal of denial of an abatement petition to the district court of the county in which any part of the city is located.