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House Amendment 3777

Amendment Text

PAG LIN
  1  1    Amend House File 222 as follows:
  1  2    #1.  By striking everything after the enacting
  1  3 clause and inserting the following:
  1  4    "Section 1.  NEW SECTION.  358C.1  DEFINITIONS.
  1  5    As used in this chapter, unless the context
  1  6 otherwise requires:
  1  7    1.  "Board" means the board of trustees of a real
  1  8 estate improvement district.
  1  9    2.  "Construction" includes materials, labor, acts,
  1 10 operations, and services necessary to complete a
  1 11 public improvement.
  1 12    3.  "Cost" of a public improvement includes the
  1 13 cost of engineering, preliminary reports, property
  1 14 valuations, estimates, plans, specifications, notices,
  1 15 legal services, acquisition of land, consequential
  1 16 damages, easements, rights-of-way, construction,
  1 17 repair, supervision, inspection, testing, notices and
  1 18 publication, interest during construction and for not
  1 19 more than six months thereafter, and printing and sale
  1 20 of bonds.
  1 21    4.  "District" means a real estate improvement
  1 22 district as created in this chapter.
  1 23    5.  "Public improvement" includes the principal
  1 24 structures, works, component parts, and accessories of
  1 25 the facilities or systems specified in section 358C.3.
  1 26    6.  "Repair" includes materials, labor, acts,
  1 27 operations, and services necessary for the
  1 28 reconstruction, reconstruction by widening, or
  1 29 resurfacing of a public improvement.
  1 30    Sec. 2.  NEW SECTION.  358C.2  REAL ESTATE
  1 31 IMPROVEMENT DISTRICT CREATED.
  1 32    1.  A majority of the owners having an interest in
  1 33 the real property within the limits of a proposed
  1 34 district may file a petition in the office of county
  1 35 auditor of the county in which the proposed district
  1 36 or major part of the proposed district is located,
  1 37 requesting that the question be submitted to the
  1 38 registered voters of the proposed district of whether
  1 39 the territory within the boundaries of the proposed
  1 40 district shall be organized as a real estate
  1 41 improvement district as provided in this chapter.
  1 42 Areas of contiguous and noncontiguous territory may be
  1 43 incorporated within a district.  The petition shall be
  1 44 addressed to the board of supervisors if all or part
  1 45 of the proposed district includes territory located
  1 46 outside the boundaries of a city, shall be submitted
  1 47 to and approved by the board of supervisors before it
  1 48 is filed with the county auditor, and shall set forth
  1 49 the following information:
  1 50    a.  The name of the district.
  2  1    b.  The district shall have perpetual existence.
  2  2    c.  The boundaries of the district.
  2  3    d.  The names and addresses of the owners of land
  2  4 in the proposed district.
  2  5    e.  The description of the tracts of land situated
  2  6 in the proposed district owned by those persons who
  2  7 may organize the district.
  2  8    f.  The names and descriptions of the real estate
  2  9 owned by the persons who do not join in the
  2 10 organization of the district, but who will be
  2 11 benefited by the district.
  2 12    g.  A listing of one or more of the district
  2 13 improvements specified in section 358C.3 which will be
  2 14 carried out by the district.
  2 15    h.  The owners of real estate in the proposed
  2 16 district that are unknown may also be set out in the
  2 17 petition as being unknown.
  2 18    i.  That the establishment of the proposed district
  2 19 will be conducive to the public health, comfort,
  2 20 convenience, and welfare.
  2 21    2.  The petition shall also state that the owners
  2 22 of real estate who are forming the proposed district
  2 23 are willing to pay the taxes which may be levied
  2 24 against all of the property in the proposed district
  2 25 and special assessments against the real property
  2 26 benefited which may be assessed against them to pay
  2 27 the costs necessary to carry out the purposes of the
  2 28 district.
  2 29    3.  The petition shall also state whether or not
  2 30 owners of real estate who are forming the proposed
  2 31 district shall waive any objections to a subsequent
  2 32 annexation by a city if the district has issued bonds
  2 33 or obligations for public improvements within the
  2 34 district and the annexing city assumes those
  2 35 obligations.
  2 36    4.  The petition shall propose the names of five or
  2 37 more trustees who shall be owners of real estate in
  2 38 the proposed district, to serve as a board of trustees
  2 39 until their successors are elected and qualified if
  2 40 the district is organized.  The board of trustees
  2 41 shall only carry out those purposes which are
  2 42 authorized in this chapter and listed in the petition.
  2 43    5.  If the proposed district includes real estate
  2 44 located in whole or in part within the boundaries of a
  2 45 city, the petition shall be submitted to and approved
  2 46 by the city council before it is filed with the county
  2 47 auditor as provided in subsection 1.  If a petition
  2 48 includes a proposed district located solely within the
  2 49 boundaries of a city, the petition is not subject to
  2 50 action by the board of supervisors except for the
  3  1 purpose of selecting the initial trustees and setting
  3  2 the election date to finally organize the district.
  3  3    6.  A proposed district shall be created only from
  3  4 parcels of land within the boundaries of a city, on
  3  5 parcels of land within two miles of the boundaries of
  3  6 a city, or on parcels of land from both locations.
  3  7    Sec. 3.  NEW SECTION.  358C.3  PUBLIC IMPROVEMENTS
  3  8 AUTHORIZED.
  3  9    1.  A district may acquire, construct, reconstruct,
  3 10 install, maintain, and repair any of the public
  3 11 improvements listed in subsection 2.
  3 12    2.  A public improvement includes the principal
  3 13 structures, works, component parts, and accessories of
  3 14 any of the following:
  3 15    a.  Underground gas, water, heating, sewer, and
  3 16 electrical connections located in streets for private
  3 17 property.
  3 18    b.  Sanitary, storm, and combined sewers.
  3 19    c.  Waterworks, water mains, and extensions.
  3 20    d.  Emergency warning systems.
  3 21    e.  Sidewalks and pedestrian underpasses or
  3 22 overpasses.
  3 23    f.  Drainage conduits, dikes, and levees for flood
  3 24 protection.
  3 25    g.  Public waterways, docks, and wharfs.
  3 26    h.  Public parks, playgrounds, and recreational
  3 27 facilities.
  3 28    i.  Street grading, paving, graveling,
  3 29 macadamizing, curbing, guttering, and surfacing with
  3 30 oil and gravel or chloride.
  3 31    j.  Drives and driveway approaches located within
  3 32 the public right-of-way.
  3 33    k.  Street lighting fixtures, connections, and
  3 34 facilities.
  3 35    l.  Sewage pumping stations and disposal and
  3 36 treatment plants.
  3 37    m.  Traffic control devices, fixtures, connections,
  3 38 and facilities.
  3 39    n.  Public roads, streets, and alleys.
  3 40    Sec. 4.  NEW SECTION.  358C.4  DATE AND NOTICE OF
  3 41 HEARING.
  3 42    1.  The board of supervisors to which the petition
  3 43 is addressed, at its next meeting, shall set the time
  3 44 and place for a hearing on the petition.  The board
  3 45 shall direct the county auditor in whose office the
  3 46 petition is filed to cause notice to be given to all
  3 47 persons whom it may concern, without naming them, of
  3 48 the pendency and content of the petition, by
  3 49 publication of a notice as provided in section
  3 50 331.305.  Proof of giving the notice shall be made by
  4  1 affidavit of the publisher and the proof shall be on
  4  2 file with the county auditor at the time the hearing
  4  3 begins.  The notice of hearing shall be directed to
  4  4 all persons it may concern, and shall state:
  4  5    a.  That a petition has been filed with the county
  4  6 auditor of the county, naming it, for establishment of
  4  7 a proposed district, and the name of the proposed
  4  8 district.
  4  9    b.  An intelligible description of the boundaries
  4 10 of the territory to be embraced in the district.
  4 11    c.  The date, hour, and the place where the
  4 12 petition will be brought for hearing before the board
  4 13 of supervisors of the named county.
  4 14    d.  That the board of supervisors will fix and
  4 15 determine the boundaries of the proposed district as
  4 16 described in the petition or otherwise, and for that
  4 17 purpose may alter and amend the petition.  At the
  4 18 hearing all interested persons shall have an
  4 19 opportunity to be heard on the location and boundaries
  4 20 of the proposed district and to make suggestions
  4 21 regarding the location and boundaries.
  4 22    2.  For a district which does not include land
  4 23 within a city, copy of the notice shall also be sent
  4 24 by mail to each owner, without naming them, of each
  4 25 tract of land or lot within the proposed district as
  4 26 shown by the transfer books of the auditor's office.
  4 27 The mailings shall be to the last known mailing
  4 28 address unless there is on file an affidavit of the
  4 29 auditor or of a person designated by the board to make
  4 30 the necessary investigation, stating that a mailing
  4 31 address is not known and that diligent inquiry has
  4 32 been made to ascertain it.  The copy of notice shall
  4 33 be mailed no less than twenty days before the day set
  4 34 for hearing and proof of service shall be by affidavit
  4 35 of the auditor.  The proofs of service required by
  4 36 this subsection shall be on file at the time the
  4 37 hearing begins.
  4 38    3.  In lieu of the mailing to the last known
  4 39 address a person owning land affected by a proposed
  4 40 district may file with the county auditor an
  4 41 instrument in writing designating the address for the
  4 42 mailing.  This designation when filed is effective for
  4 43 five years and applies to all proceedings under this
  4 44 chapter.  The person making the designation may change
  4 45 the address in the same manner as the original
  4 46 designation is made.
  4 47    4.  In lieu of publication, personal service of the
  4 48 notice may be made upon an owner of land in the
  4 49 proposed district in the manner and for the time
  4 50 required for service of original notices in the
  5  1 district court.  Proof of the service shall be on file
  5  2 with the auditor on the date of the hearing.
  5  3    Sec. 5.  NEW SECTION.  358C.5  HEARING OF PETITION
  5  4 AND ORDER.
  5  5    The board of supervisors to whom the petition is
  5  6 addressed shall preside at the hearing provided for in
  5  7 section 358C.4 and shall continue the hearing in
  5  8 session, with adjournments from day to day, if
  5  9 necessary, until completed, without being required to
  5 10 give any further notice of the hearing.  Proof of the
  5 11 residences and qualifications of the petitioners as
  5 12 registered voters shall be made by affidavit or
  5 13 otherwise as the board may direct.  The board may
  5 14 consider the boundaries of a proposed district,
  5 15 whether the boundaries are described in the petition
  5 16 or otherwise, and for that purpose may alter and amend
  5 17 the petition and limit or change the boundaries of the
  5 18 proposed district as stated in the petition.  The
  5 19 board shall adjust the boundaries of a proposed
  5 20 district as needed to exclude land that has no
  5 21 reasonable likelihood of benefit from inclusion in the
  5 22 proposed district.  The boundaries of a proposed
  5 23 district shall not be changed to incorporate property
  5 24 not included in the original petition and published
  5 25 notice until the owner of the property is given notice
  5 26 of inclusion as on the original hearing.  All persons
  5 27 in the proposed district shall have an opportunity to
  5 28 be heard regarding the location and boundaries of the
  5 29 proposed district and to make suggestions regarding
  5 30 the location and boundaries, and the board of
  5 31 supervisors, after hearing the statements, evidence,
  5 32 and suggestions made and offered at the hearing, shall
  5 33 enter an order fixing and determining the limits and
  5 34 boundaries of the proposed district and whether or not
  5 35 all present and future property owners within the
  5 36 district have waived any objections to the annexation
  5 37 by a city if the district has issued obligations or
  5 38 bonds for public improvement and the city assumes
  5 39 those obligations, and directing that an election be
  5 40 held for the purpose of submitting to the registered
  5 41 voters owning land within the boundaries of the
  5 42 proposed district the question of organization and
  5 43 establishment of the proposed district as determined
  5 44 by the board of supervisors.  The order shall fix a
  5 45 date for the election not more than sixty days after
  5 46 the date of the order.
  5 47    Sec. 6.  NEW SECTION.  358C.6  NOTICE OF ELECTION.
  5 48    In its order for the election the board of
  5 49 supervisors shall direct the county commissioner of
  5 50 elections of the county in which the petition is filed
  6  1 to cause notice of the election to be given at least
  6  2 thirty days before the date of election by publication
  6  3 of the notice as provided in section 331.305.  The
  6  4 notice shall state the time and place of holding the
  6  5 election and the hours when the polls will open and
  6  6 close, the purpose of the election, with the name of
  6  7 the proposed district and a description of the
  6  8 boundaries of the proposed district, and shall set
  6  9 forth briefly the limits of each voting precinct and
  6 10 the location of the polling places.  Proof of
  6 11 publication shall be made in the manner provided in
  6 12 section 358C.4 and filed with the county auditor.
  6 13    Sec. 7.  NEW SECTION.  358C.7  ELECTION.
  6 14    1.  Each registered voter resident within the
  6 15 proposed district shall have the right to cast a
  6 16 ballot at the election and a person shall not vote in
  6 17 any precinct but that of the person's residence.
  6 18 Ballots at the election shall be in substantially the
  6 19 following form, to wit:  
  6 20        For Real Estate Improvement District     
  6 21        Against Real Estate Improvement District 
  6 22    2.  The board of supervisors shall cause a
  6 23 statement of the result of the election to be included
  6 24 in the records of the county auditor.  If a majority
  6 25 of the votes cast upon the question of incorporation
  6 26 of the proposed district shall be in favor of the
  6 27 proposed district, the proposed district shall be
  6 28 deemed an organized real estate improvement district
  6 29 under this chapter and established as conducive to the
  6 30 public health, comfort, convenience, and welfare.
  6 31    3.  In the event the petition and order provide
  6 32 that any present or future owner of property within
  6 33 the district waives objection to annexation if the
  6 34 district has issued obligations or bonds for a public
  6 35 improvement and the annexing city assumes those
  6 36 obligations, the board of supervisors shall file a
  6 37 certified declaration of that provision and a legal
  6 38 description of all real estate in the district with
  6 39 the county recorder in each county in which the
  6 40 district is located.
  6 41    Sec. 8.  NEW SECTION.  358C.8  EXPENSES AND COSTS
  6 42 OF ELECTION.
  6 43    The election held pursuant to this chapter shall be
  6 44 conducted by the county commissioner of elections.
  6 45 All expenses incurred in carrying out the preceding
  6 46 sections of this chapter, and the costs of the
  6 47 election, as determined by the county commissioner of
  6 48 elections, shall be paid by those who will be
  6 49 benefited by the proposed district.  If the district
  6 50 is not established, the expenses and costs shall be
  7  1 collected upon the bonds of the petitioners.
  7  2    Sec. 9.  NEW SECTION.  358C.9  SELECTION OF
  7  3 TRUSTEES &endash; TERM OF OFFICE.
  7  4    1.  At the election provided for in section 358C.7,
  7  5 the names of candidates for trustee of the district
  7  6 shall be submitted to the registered voters, and the
  7  7 board of supervisors which had jurisdiction of the
  7  8 proceedings for establishment of the district,
  7  9 together with the board of supervisors of any other
  7 10 county in which any part of the district is located,
  7 11 shall appoint five trustees from among the five or
  7 12 more persons receiving the greatest number of votes as
  7 13 trustees of the district.  One of the trustees shall
  7 14 be designated to serve a term expiring on the first
  7 15 day of January which is not a Sunday or legal holiday
  7 16 following the next general election, two to serve a
  7 17 term expiring on the first day of January which is not
  7 18 a Sunday or legal holiday two years later, and two to
  7 19 serve a term expiring on the first day of January
  7 20 which is not a Sunday or legal holiday four years
  7 21 later.  Thereafter, each term shall be for a term of
  7 22 years established by the board of supervisors, not
  7 23 less than three years or more than six years.
  7 24 Successors to trustees shall be elected by special
  7 25 election or at a special meeting of the board of
  7 26 trustees called for that purpose.  For each special
  7 27 election called after the initial election, a
  7 28 candidate for office of trustee shall be nominated by
  7 29 a personal affidavit of the candidate or by petition
  7 30 of at least ten registered voters of the district and
  7 31 the candidate's personal affidavit, which shall be
  7 32 filed with the county commissioner of elections at
  7 33 least twenty-five days before the date of the
  7 34 election.  The form of the candidate's affidavit shall
  7 35 be substantially the same as provided in section 45.3.
  7 36    2.  Vacancies in the office of trustee of a
  7 37 district shall be filled by the remaining members of
  7 38 the board for the period until a successor is chosen
  7 39 in the manner prescribed by this section or by section
  7 40 69.12, whichever is applicable.
  7 41    3.  In lieu of a special election, successors to
  7 42 trustees shall be elected at a special meeting of the
  7 43 board of trustees called for that purpose.  Upon its
  7 44 own motion, the board of trustees may, or upon
  7 45 petition of landowners owning more than fifty percent
  7 46 of the total land in the district, shall, call a
  7 47 special meeting of the residents of the district to
  7 48 elect successors to trustees of the board.  Notice of
  7 49 the meeting shall be given at least ten days before
  7 50 the date of the meeting by publication of the notice
  8  1 in a newspaper of general circulation in the district.
  8  2 The notice shall state the date, times, and location
  8  3 of the meeting and that the meeting is called for the
  8  4 purpose of electing one or more trustees to the board.
  8  5    Sec. 10.  NEW SECTION.  358C.10  TRUSTEE'S BOND.
  8  6    Each trustee, before entering upon the duties of
  8  7 office, shall execute a bond payable to the district,
  8  8 with security to be approved by the board of
  8  9 supervisors which had jurisdiction of the petition for
  8 10 establishment of the district, in such form and amount
  8 11 as the board of supervisors may determine, which bond
  8 12 shall be filed with the county auditor of the county.
  8 13    Sec. 11.  NEW SECTION.  358C.11  REAL ESTATE
  8 14 IMPROVEMENT DISTRICT TO BE A BODY CORPORATE &endash; EMINENT
  8 15 DOMAIN.
  8 16    1.  Each district organized under this chapter
  8 17 shall be a body corporate and politic, with the name
  8 18 and style under which it was organized, and by that
  8 19 name and style may sue and be sued, contract and be
  8 20 contracted with, acquire and hold real and personal
  8 21 property necessary for corporate purposes, adopt a
  8 22 corporate seal and alter the same at pleasure, and
  8 23 exercise all the powers conferred in this chapter.
  8 24    2.  All courts of this state shall take judicial
  8 25 notice of the existence of real estate improvement
  8 26 districts organized under this chapter.
  8 27    3.  A district shall not own or hold land in excess
  8 28 of ten acres unless the land is actually used for a
  8 29 public purpose within three years of its acquisition.
  8 30 A district which owns or holds land in excess of ten
  8 31 acres for more than three years without devoting it to
  8 32 a public purpose as provided in this chapter shall
  8 33 divest itself of the land by public auction to the
  8 34 highest bidder.
  8 35    4.  A district may acquire by purchase,
  8 36 condemnation, or gift, real or personal property,
  8 37 right-of-way, and easement within or without its
  8 38 corporate limits necessary for its corporate purposes
  8 39 specified in section 358C.3.
  8 40    5.  If the board of trustees of the district decide
  8 41 to make a public improvement pursuant to this chapter
  8 42 which requires that private property be taken or
  8 43 damaged, the board may exercise the power of eminent
  8 44 domain.  The procedure to condemn property shall be
  8 45 exercised in the manner provided in chapter 6B.
  8 46    Sec. 12.  NEW SECTION.  358C.12  BOARD OF TRUSTEES
  8 47 &endash; POWERS &endash; PROHIBITED ACTIONS.
  8 48    1.  The board of trustees is the corporate
  8 49 authority of the district and shall manage and control
  8 50 the affairs and property of the district.  A majority
  9  1 of the board of trustees shall constitute a quorum,
  9  2 but a smaller number may adjourn from day to day.  The
  9  3 board of trustees shall elect a president, a clerk,
  9  4 and a treasurer from its membership and may employ
  9  5 employees as necessary, who shall hold their
  9  6 employment during the pleasure of the board.  The
  9  7 board shall prescribe the duties and fix the
  9  8 compensation of all employees of the district and the
  9  9 amount of bond to be filed by the treasurer of the
  9 10 district and by any employee for whom the board may
  9 11 require bond.  The members of the board of trustees
  9 12 shall receive a per diem of forty dollars for
  9 13 attendance at a meeting of the board or while
  9 14 otherwise engaged in official duties, but the total
  9 15 per diem for each member shall not exceed two thousand
  9 16 four hundred dollars for a fiscal year.  However, the
  9 17 board of trustees, by resolution, may establish for
  9 18 its members a lower rate of pay than is fixed by this
  9 19 section.  The members of the board shall also be
  9 20 reimbursed for their travel and other necessary
  9 21 expenses incurred in performing their official duties.
  9 22 Travel expenses are reimbursable at the rate specified
  9 23 in section 70A.9.
  9 24    2.  The board of trustees may adopt the necessary
  9 25 ordinances, resolutions, and regulations for the
  9 26 proper management and conduct of the business of the
  9 27 board of trustees and the corporation and for carrying
  9 28 out the purposes for which the district is formed.
  9 29    3.  If the board of trustees wishes to expand its
  9 30 authority to carry out public improvements in addition
  9 31 to the public improvements listed in the board's
  9 32 original petition as provided in section 358C.3, the
  9 33 board shall submit a petition to the board of
  9 34 supervisors specifying the additional public
  9 35 improvements to be included within the authority of
  9 36 the district and requesting that the board of
  9 37 supervisors order an election as provided in section
  9 38 358C.6 to approve or disapprove the amendment.  If the
  9 39 petition includes public improvements as specified in
  9 40 section 358C.3, the board of supervisors shall order
  9 41 the election to be conducted as otherwise provided in
  9 42 this chapter.  If the amendment is approved, the
  9 43 original petition is amended to include the additional
  9 44 public improvements.
  9 45    4.  The board of trustees of a district shall not
  9 46 purchase and resell electric service.
  9 47    Sec. 13.  NEW SECTION.  358C.13  TAXES &endash; POWER TO
  9 48 LEVY &endash; TAX SALES.
  9 49    1.  The board of trustees of a real estate
  9 50 improvement district shall have the power by ordinance
 10  1 to levy annually for the purpose of paying the
 10  2 administrative costs of the district, or for the
 10  3 payment of deficiencies in special assessments, or for
 10  4 both, a tax upon property within the territorial
 10  5 limits of the district not exceeding fifty-four cents
 10  6 per thousand dollars of the adjusted taxable valuation
 10  7 of the property within the district for the preceding
 10  8 fiscal year.
 10  9    2.  All taxes thus levied by the board shall be
 10 10 certified by the clerk on or before March 1 to the
 10 11 county auditor of each county in which any of the
 10 12 property included within the territorial limits of the
 10 13 district is located, and shall be placed upon the tax
 10 14 list for the current fiscal year by the auditor.  The
 10 15 county treasurer of more than one county shall collect
 10 16 all taxes so levied in the same manner as other taxes,
 10 17 and when delinquent the taxes shall draw the same
 10 18 interest.  All taxes levied and collected shall be
 10 19 paid over by the officer collecting the taxes to the
 10 20 treasurer of the district.
 10 21    3.  Sales for delinquent taxes owing to the
 10 22 district shall be made at the same time and in the
 10 23 same manner as the sales are made for other taxes, and
 10 24 all provisions of the law of this state relating to
 10 25 the sale of property for delinquent taxes shall be
 10 26 applicable, so far as may be, to the sales.
 10 27    Sec. 14.  NEW SECTION.  358C.14  RENTALS AND
 10 28 CHARGES.
 10 29    1.  A board of trustees may by ordinance establish
 10 30 equitable rates, charges, or rentals for the utilities
 10 31 and services furnished by the district to be paid to
 10 32 the district by every person, firm, or corporation
 10 33 whose premises are served by a connection to the
 10 34 utilities and services directly or indirectly.  The
 10 35 rates, charges, or rentals, as near as may be in the
 10 36 judgment of the board of trustees, shall be equitable
 10 37 and in proportion to the services rendered and the
 10 38 cost of the services, and taking into consideration in
 10 39 the case of the premises the quantity of sewage or
 10 40 water produced or used and the concentration,
 10 41 strength, and pollution qualities of the sewage.  The
 10 42 board of trustees may change the rates, charges, or
 10 43 rentals as it may deem advisable, and by ordinance may
 10 44 provide for collection.  The board may contract with
 10 45 any municipality within the district, whereby the
 10 46 municipality may collect or assist in collecting any
 10 47 of the rates, charges, or rentals, whether in
 10 48 conjunction with water rentals or otherwise, and the
 10 49 municipality may undertake the collection and render
 10 50 the service.  The rates, charges, or rentals, if not
 11  1 paid when due, shall constitute a lien upon the real
 11  2 property served by a connection.  The lien shall have
 11  3 equal precedence with ordinary taxes, may be certified
 11  4 to the county treasurer and collected in the same
 11  5 manner as taxes, and is not divested by a judicial
 11  6 sale.
 11  7    2.  Sewer rentals, charges, or rates may supplant
 11  8 or replace, in whole or in part, any monetary levy of
 11  9 taxes which may be, or have been, authorized by the
 11 10 board of trustees for any of the following purposes:
 11 11    a.  To meet interest and principal payments on
 11 12 bonds legally authorized for the financing of sanitary
 11 13 utilities in any manner.
 11 14    b.  To pay costs of the construction, maintenance,
 11 15 or repair of the facilities or utilities, including
 11 16 payments to be made under any contract between
 11 17 municipalities for either the joint use of water or
 11 18 sewage facilities, or for the use by one municipality
 11 19 of all or a part of the water or sewer system of
 11 20 another municipality.
 11 21    Sec. 15.  NEW SECTION.  358C.15  DEBT LIMIT &endash;
 11 22 BORROWING &endash; BONDS &endash; PURPOSES.
 11 23    1.  A district may borrow money for its corporate
 11 24 purposes, but shall not become indebted in any manner
 11 25 or for any purpose to an amount in the aggregate
 11 26 exceeding its constitutional debt limit of five
 11 27 percent on the value of the taxable property within
 11 28 the district, to be ascertained by the last state and
 11 29 county tax lists previous to the incurring of the
 11 30 indebtedness.  Indebtedness within this constitutional
 11 31 limit shall not include the indebtedness of any other
 11 32 municipal corporation located wholly or partly within
 11 33 the boundaries of the district, special assessment
 11 34 bonds or obligations authorized under section 358C.16,
 11 35 or revenue bonds authorized under section 358C.17.
 11 36    2.  Subject only to this debt limitation, a
 11 37 district shall have the same powers to issue bonds,
 11 38 including both general obligation and revenue bonds,
 11 39 which cities have under the laws of this state.  In
 11 40 the application of the laws to this chapter, the words
 11 41 used in the laws referring to municipal corporations
 11 42 or to cities shall be held to include real estate
 11 43 improvement districts organized under this chapter;
 11 44 the words "council" or "city council" shall be held to
 11 45 include the board of trustees of a district; the words
 11 46 "mayor" and "clerk" shall be held to include the
 11 47 president and clerk of a board of trustees; and like
 11 48 construction shall be given to any other words in the
 11 49 laws where required to permit the exercise of the
 11 50 powers by real estate improvement districts.
 12  1    3.  All bonds issued shall be signed by the
 12  2 president of the board of trustees and attested by the
 12  3 clerk, with the seal of the district, if any, affixed,
 12  4 and interest coupons attached to the bonds shall be
 12  5 attested by the signature of the clerk.
 12  6    4.  The proceeds of any bond issue made under this
 12  7 section shall be used only for the public improvements
 12  8 specified in section 358C.3.  Proceeds from the bond
 12  9 issue may also be used for the payment of special
 12 10 assessment deficiencies.  The bonds shall be payable
 12 11 in not more than forty annual installments and with
 12 12 interest at a rate not exceeding that permitted by
 12 13 chapter 74A, and shall be made payable at the place
 12 14 and be of the form as the board of trustees shall by
 12 15 resolution designate.  A district issuing bonds as
 12 16 authorized in this section is granted authority to
 12 17 pledge the future avails of a tax levy to the payment
 12 18 of the principal and interest of the bonds after the
 12 19 same come due, and the power to impose and certify the
 12 20 levy is granted to the trustees of real estate
 12 21 improvement districts organized under this chapter.
 12 22    Sec. 16.  NEW SECTION.  358C.16  SPECIAL
 12 23 ASSESSMENTS.
 12 24    1.  The board of trustees of a real estate
 12 25 improvement district may provide for payment of all or
 12 26 any portion of the costs of a public improvement
 12 27 specified in section 358C.3, by assessing all, or any
 12 28 portion of the costs, on adjacent property according
 12 29 to the benefits derived.  For the purposes of this
 12 30 chapter, the board of trustees may define "adjacent
 12 31 property" as all that included within a designated
 12 32 benefited district to be fixed by the board, which may
 12 33 be all of the property located within the real estate
 12 34 improvement district or any lesser portion of that
 12 35 property.  It is not a valid objection to a special
 12 36 assessment that the improvement for which the
 12 37 assessment is levied is outside the limits of the
 12 38 district, but a special assessment shall not be made
 12 39 upon property situated outside of the district.
 12 40 Special assessments pursuant to this section shall be
 12 41 in proportion to the special benefits conferred upon
 12 42 the property, and not in excess of the benefits.  The
 12 43 value of a property is the present fair market value
 12 44 of the property with the proposed public improvements
 12 45 completed.  Payment of installments of a special
 12 46 assessment against property used and assessed as
 12 47 agricultural property shall be deferred upon the
 12 48 filing of a request by the owner in the same manner
 12 49 and under the same procedures as provided in chapter
 12 50 384 for special assessments by cities.
 13  1    2.  The assessments may be made to extend over a
 13  2 period not to exceed fifteen years, payable in as
 13  3 nearly equal annual installments as practicable.  A
 13  4 majority vote of the board of trustees is requisite
 13  5 and sufficient for any action required by the board of
 13  6 trustees under this section.
 13  7    3.  Subject to the limitations otherwise stated in
 13  8 this section, a district organized under this chapter
 13  9 has all of the powers to specially assess the costs of
 13 10 improvements described in this section, including the
 13 11 power to issue special assessment bonds, warrants,
 13 12 project notes, or other forms of interim financing
 13 13 obligations, which cities have under the laws of this
 13 14 state.
 13 15    Sec. 17.  NEW SECTION.  358C.17  REVENUE BONDS.
 13 16    A district incorporated under this chapter may
 13 17 exercise the powers granted to counties in sections
 13 18 331.462 to 331.470, to issue revenue bonds for the
 13 19 purposes in section 358C.3, subsection 2, paragraphs
 13 20 "b", "c", "g", "h", and "l".
 13 21    Sec. 18.  NEW SECTION.  358C.18  ADDITIONAL
 13 22 TERRITORY.
 13 23    1.  The district may be enlarged and additional
 13 24 territory annexed to the district by either of the
 13 25 following methods:
 13 26    a.  By petitions signed by the owners of all the
 13 27 property to be annexed to the district.  If a petition
 13 28 requesting annexation is presented to the trustees and
 13 29 approved by the trustees the change in the boundaries
 13 30 to include the additional area shall be certified by
 13 31 the clerk of the district to the county auditor in
 13 32 which the greater portion of the district is located
 13 33 and thereafter the district shall include the area
 13 34 thus annexed.
 13 35    b.  By a petition filed with the clerk of the
 13 36 district, signed by persons owning not less than fifty
 13 37 percent of the area to be annexed, but not signed by
 13 38 persons owning all the area requested to be annexed.
 13 39 On the filing of the petition, the trustees of the
 13 40 district shall fix a time and place for a hearing on
 13 41 the petition and give notice of the hearing, as
 13 42 provided in section 331.305, and by certified mail to
 13 43 the record owners of all persons owning land within
 13 44 the territory sought to be annexed, not less than ten
 13 45 days prior to the date of the hearing, if the address
 13 46 of the owners is known or can be ascertained by
 13 47 reasonable diligence by the trustees.  At the hearing,
 13 48 any person owning property within the area proposed to
 13 49 be annexed or any person owning property or residing
 13 50 within the district may appear and be heard.  If,
 14  1 after the hearing, the board of trustees determines
 14  2 that annexation of the additional area will be
 14  3 conducive to the public health, convenience, and
 14  4 welfare and will not be an undue burden on the
 14  5 district, the board of trustees may, by resolution,
 14  6 annex the additional area and fix the boundary which
 14  7 shall not include more than the area requested in the
 14  8 petition.  A copy of the resolution shall be filed
 14  9 with the county auditor of the county in which the
 14 10 largest portion of the district is located and
 14 11 thereafter the area included by the resolution shall
 14 12 be a part of the district.
 14 13    2.  All property, from and after it is annexed to
 14 14 the district, shall be subject to all taxes and other
 14 15 burdens levied by the district, regardless of when the
 14 16 obligation for which the taxes or assessments are
 14 17 levied was incurred.
 14 18    Sec. 19.  NEW SECTION.  358C.19  ANNEXATION BY A
 14 19 CITY.
 14 20    When a city or real estate improvement district
 14 21 proposes that the district be annexed by the city,
 14 22 either wholly or partially, an owner of property in
 14 23 the district shall not object to the annexation if the
 14 24 district has issued, and there remain, outstanding
 14 25 obligations of the district for public improvements
 14 26 and the original petition and order of the board of
 14 27 supervisors provide that a property owner has waived
 14 28 any right to object if obligations are issued for
 14 29 public improvements.  When a city annexes all the
 14 30 territory within the boundaries of a real estate
 14 31 improvement district, the district shall merge with
 14 32 the city and the city shall succeed to all the
 14 33 property and property rights of every kind, contracts,
 14 34 and obligations, held by or belonging to the district,
 14 35 and the city shall be liable for and recognize,
 14 36 assume, and carry out all valid contracts and
 14 37 obligations of the district.  The city may assume and
 14 38 provide for the payment of the obligations of any
 14 39 bonds of the district by issuing general obligation,
 14 40 special assessment, or revenue refunding bonds which
 14 41 may be sold at public or private sale or exchanged for
 14 42 outstanding bonds.  General obligation bonds of the
 14 43 city may be issued to refund special assessment and
 14 44 revenue obligations if the governing body of the city
 14 45 determines that it is in the best interest of the
 14 46 city.  The refunding of these obligations shall
 14 47 constitute an essential corporate purpose under
 14 48 section 384.24.  All taxes, assessments, claims, and
 14 49 demands of every kind due or owing to the district
 14 50 shall be paid to and collected by the city.  Any
 15  1 special assessments which the district was authorized
 15  2 to levy, assess, relevy, or reassess, but which were
 15  3 not levied, assessed, relevied, or reassessed, at the
 15  4 time of the merger, for improvements made by the
 15  5 district or in the process of construction or
 15  6 contracted for may be levied, assessed, relevied, or
 15  7 reassessed by the annexing city to the same extent as
 15  8 the district may have levied or assessed but for the
 15  9 merger.  However, this section does not authorize the
 15 10 annexing city to revoke any resolution, order, or
 15 11 finding made by the district in regard to special
 15 12 benefits or increase any assessments made by the
 15 13 district, but the city shall be bound by all findings
 15 14 or orders and assessments to the same extent as the
 15 15 district would be bound.  Also, a district shall not
 15 16 levy any special assessments after the effective date
 15 17 of the annexation.
 15 18    Sec. 20.  NEW SECTION.  358C.20  EFFECTIVE DATE OF
 15 19 MERGER.
 15 20    The merger shall be effective thirty days after the
 15 21 effective date of the ordinance annexing the territory
 15 22 within the district.  However, if the validity of the
 15 23 ordinance annexing the territory is challenged by a
 15 24 court proceeding, the effective date of the merger
 15 25 shall be thirty days after the final determination of
 15 26 the validity of the ordinance.  The trustees of a
 15 27 district shall continue in possession and conduct the
 15 28 affairs of the district until the effective date of
 15 29 the merger, but shall not during the period levy any
 15 30 special assessments after the effective date of
 15 31 annexation.
 15 32    Sec. 21.  NEW SECTION.  358C.21  PARTIAL ANNEXATION
 15 33 &endash; DIVISION AGREEMENT.
 15 34    If only a part of the territory within a district
 15 35 is annexed by a city, the district and the city may
 15 36 agree between themselves as to the equitable division
 15 37 of the assets, liabilities, maintenance, or other
 15 38 obligations of the district for a change in the
 15 39 boundaries of the district so as to exclude the
 15 40 portion annexed by the city or may agree upon a merger
 15 41 of the district with the city.  If a merger is agreed
 15 42 upon, the city shall have all the rights, privileges,
 15 43 duties, and obligations as provided in this chapter
 15 44 when the city annexes the entire territory within the
 15 45 district, and the trustees shall be relieved of all
 15 46 further duties and liabilities and their bonds
 15 47 exonerated.  An agreement between the district and the
 15 48 city shall not be effective until submitted to and
 15 49 approved by the district court of the county in which
 15 50 the major portion of the district is located.  An
 16  1 agreement shall not be approved which may prejudice
 16  2 the rights of any bondholder or creditor of the
 16  3 district.  The district court may direct amendments to
 16  4 the agreement before approving the agreement.  If the
 16  5 district and city do not agree upon the proper
 16  6 adjustment of all matters growing out of the
 16  7 annexation of a part of the territory located within
 16  8 the district, either the district or the annexing city
 16  9 may apply to the district court of the county where
 16 10 the major portion of the district is located for an
 16 11 adjustment of all matters growing out of or in any way
 16 12 connected with the annexation of the territory, and
 16 13 after a hearing the district court may enter an order
 16 14 or decree fixing the rights, duties, and obligations
 16 15 of the parties.  However, in every case the decree or
 16 16 order shall require a change of the district
 16 17 boundaries so as to exclude from the district that
 16 18 portion of the territory of the district which has
 16 19 been annexed.  The change of boundaries shall become
 16 20 effective on the date of entry of the decree.  Only
 16 21 the district and the city shall be necessary parties
 16 22 to the action.  The decree when entered shall be
 16 23 binding on both parties the same as though the parties
 16 24 had voluntarily agreed thereto.  This section does not
 16 25 authorize any district to levy any special assessments
 16 26 within the annexed area after the effective date of
 16 27 annexation.
 16 28    Sec. 22.  NEW SECTION.  358C.22  DISSOLUTION OF
 16 29 DISTRICT.
 16 30    When a majority of the board of trustees of a
 16 31 district desire that the district be wholly dissolved,
 16 32 the trustees shall first propose a resolution
 16 33 declaring the advisability of the dissolution and
 16 34 setting out the terms and conditions of the
 16 35 dissolution, and also setting out the time and place
 16 36 when the board of trustees shall meet to consider the
 16 37 adoption of the resolution.  Notice of the time and
 16 38 place when the resolution shall be set for
 16 39 consideration shall be published as provided in
 16 40 section 331.305, which publication shall contain the
 16 41 entire wording of the proposed resolution.  If any
 16 42 part of the district lies within the area of the
 16 43 jurisdiction of a city, then the trustees shall mail a
 16 44 copy of the proposed resolution to the city on the
 16 45 date of first publication of the resolution.  At the
 16 46 hearing the owners of property within the district, or
 16 47 a city if any part of the district lies within the
 16 48 city, may appear and make objections to the proposed
 16 49 resolution.  If the owners representing a majority of
 16 50 the area of real estate within the district fail to
 17  1 sign and present to the board, on or prior to the
 17  2 hearing date, a written petition opposing the
 17  3 resolution, a majority of the board of trustees may
 17  4 pass the resolution and adopt the proposed
 17  5 dissolution.  However, the resolution shall not be
 17  6 adopted if the district is obligated on any
 17  7 outstanding bonds, warrants, or other debts or
 17  8 obligations unless the holders of the bonds, warrants,
 17  9 or other debts or obligations all sign written
 17 10 consents to the dissolution prior to the adoption of
 17 11 the resolution of dissolution.  If the petition
 17 12 opposing the resolution is signed by property owners
 17 13 representing a majority of the area of real estate
 17 14 within the district and presented to the board of
 17 15 trustees on or prior to the hearing date, the board of
 17 16 trustees shall not adopt the resolution.  After the
 17 17 board of trustees has adopted the resolution of
 17 18 dissolution, the clerk of the district shall prepare
 17 19 and file a certified copy of the resolution of
 17 20 dissolution in the office of the county auditor where
 17 21 the original petition was filed.
 17 22    Sec. 23.  NEW SECTION.  358C.23  DETACHMENT OF
 17 23 LAND.
 17 24    1.  When a majority of the board of trustees of a
 17 25 district desires that any property within the district
 17 26 be detached from the district, the trustees shall
 17 27 first propose a resolution declaring the advisability
 17 28 of the detachment and setting out the terms and
 17 29 conditions of the detachment and also setting out the
 17 30 time and place when the board of trustees will meet to
 17 31 consider the adoption of the resolution.  Notice of
 17 32 the time and place when the resolution is set for
 17 33 consideration shall be published as provided in
 17 34 section 331.305, which publication shall contain the
 17 35 entire wording of the proposed resolution.  If any
 17 36 part of the district lies within a city, then the
 17 37 trustees shall mail a copy of the proposed resolution
 17 38 to the city on the date of first publication of the
 17 39 resolution.  At the hearing the owners of property
 17 40 within the district, or any city, may appear and make
 17 41 objections to the proposed resolution.  If the owners
 17 42 representing a majority of the area of real estate
 17 43 within the district fail to sign and present to the
 17 44 board of trustees, on or prior to the hearing date, a
 17 45 written petition opposing the resolution, a majority
 17 46 of the board of trustees may pass the resolution and
 17 47 adopt the proposed detachment, except that the
 17 48 resolution shall not be adopted if the district is
 17 49 indebted on any outstanding bonds or warrants of the
 17 50 district unless the holders of the bonds and warrants
 18  1 all sign written consents to the detachment prior to
 18  2 the adoption of the resolution of detachment.  If the
 18  3 petition opposing the resolution is signed by property
 18  4 owners representing a majority of the area of real
 18  5 estate within the district and presented to the board
 18  6 of trustees on or prior to the hearing date, the board
 18  7 of trustees shall not adopt the resolution.  After the
 18  8 board of trustees has adopted the resolution of
 18  9 detachment, the clerk of the district shall prepare
 18 10 and file a certified copy of the resolution of
 18 11 detachment in the office of the county auditor where
 18 12 the original petition was filed, and the area detached
 18 13 shall become excluded and detached from the boundaries
 18 14 of the district.
 18 15    2.  The owner of a discrete tract of land which is
 18 16 part of a district but which is not connected to the
 18 17 main area of the district may petition the board of
 18 18 trustees of the district to have the property detached
 18 19 from the district.  Following receipt of the petition,
 18 20 the board of trustees shall propose a resolution
 18 21 declaring the advisability of the detachment and
 18 22 setting out the terms and conditions of the detachment
 18 23 and setting out the time and place when the board of
 18 24 trustees will meet to consider the adoption of the
 18 25 resolution.  Notice of the time and place for the
 18 26 consideration shall be published as provided in
 18 27 subsection 1.  If any part of the district lies in
 18 28 whole or in part within a city, the board of trustees
 18 29 shall mail a copy of the proposed resolution to the
 18 30 municipality within five days after the date of first
 18 31 publication of the resolution.  At the hearing for
 18 32 consideration of the resolution, the board of trustees
 18 33 shall determine if the tract of land proposed for
 18 34 detachment has all of the following characteristics:
 18 35    a.  Has an area of twenty-five acres or more.
 18 36    b.  Is wholly detached from the main area of the
 18 37 district and separated from the district by a distance
 18 38 of at least one thousand feet at the nearest points.
 18 39    c.  Is undeveloped and predominantly devoted to
 18 40 agricultural uses.
 18 41    d.  Has no improvements placed upon it by the
 18 42 district and receives no current services from the
 18 43 district.
 18 44    3.  If the board of trustees by majority vote
 18 45 determines that the tract in question meets all of the
 18 46 conditions provided in subsection 2, paragraphs "a"
 18 47 through "d", the resolution shall be adopted, except
 18 48 that the resolution shall not be adopted if the
 18 49 district is indebted on any outstanding bonds or
 18 50 warrants of the district unless the holders of the
 19  1 bonds and warrants all sign written consents to the
 19  2 detachment.  After the board of trustees has adopted
 19  3 the resolution of detachment, the clerk of the
 19  4 district shall prepare and file a certified copy of
 19  5 the resolution of detachment in the office of the
 19  6 county auditor where the original petition was filed
 19  7 and the area detached shall become excluded and
 19  8 detached from the boundaries of the district.
 19  9    Sec. 24.  NEW SECTION.  358C.24  CHAPTER LIBERALLY
 19 10 CONSTRUED.
 19 11    The provisions of this chapter shall be liberally
 19 12 construed to facilitate the development of land for
 19 13 housing."
 19 14    #2.  Title page, by striking lines 1 and 2 and
 19 15 inserting the following:  "An Act relating to the
 19 16 creation of real estate improvement districts,
 19 17 authorizing the issuance of general obligation bonds
 19 18 and revenue bonds, the imposition of ad valorem
 19 19 property taxes, special assessments and fees, and
 19 20 other related matters." 
 19 21 
 19 22 
 19 23                              
 19 24 JACOBS of Polk
 19 25 
 19 26 
 19 27                              
 19 28 MYERS of Johnson
 19 29 
 19 30 
 19 31                              
 19 32 HAMMITT of Harrison
 19 33 
 19 34 
 19 35                              
 19 36 VANDE HOEF of Osceola
 19 37 
 19 38 
 19 39                              
 19 40 SIEGRIST of Pottawattamie
 19 41 
 19 42 
 19 43                              
 19 44 BELL of Jasper
 19 45 
 19 46 
 19 47                              
 19 48 JOCHUM of Dubuque
 19 49 
 19 50 
 20  1                              
 20  2 NELSON of Pottawattamie
 20  3 
 20  4 
 20  5                              
 20  6 RANTS of Woodbury
 20  7 
 20  8 
 20  9                              
 20 10 WISE of Lee
 20 11 
 20 12 
 20 13                              
 20 14 CARROLL of Poweshiek
 20 15 
 20 16 
 20 17                              
 20 18 WARNSTADT of Woodbury
 20 19 
 20 20 
 20 21                              
 20 22 HEATON of Henry
 20 23 
 20 24 
 20 25                              
 20 26 BRAND of Benton
 20 27 HF 222.302 76
 20 28 mk/cf
     

Text: H03776                            Text: H03778
Text: H03700 - H03799                   Text: H Index
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