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House File 2224

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 386.1, subsection 2, Code 1995, is
  1  2 amended to read as follows:
  1  3    2.  "District" means a self-supported municipal improvement
  1  4 district or a self-supported neighborhood improvement district
  1  5 which may be created and the property therein in the district
  1  6 taxed in accordance with this chapter.
  1  7    Sec. 2.  Section 386.1, subsection 6, paragraph a, Code
  1  8 1995, is amended to read as follows:
  1  9    a.  To aid in the commercial or residential development of
  1 10 the district.
  1 11    Sec. 3.  Section 386.3, subsection 1, paragraph a, Code
  1 12 1995, is amended to read as follows:
  1 13    a.  Be comprised of contiguous property wholly within the
  1 14 boundaries of the city.  A self-supported municipal
  1 15 improvement district shall be comprised only of property in
  1 16 districts which are zoned for commercial or industrial uses
  1 17 and properties within a duly designated historic district.  A
  1 18 self-supported neighborhood improvement district shall only
  1 19 include property zoned for commercial, industrial, or
  1 20 residential uses and properties within a duly designated
  1 21 historic district; however, at least seventy-five percent of
  1 22 the land area shall be zoned for residential uses or at least
  1 23 seventy-five percent of the assessed value of all property in
  1 24 the proposed district shall be residential property.
  1 25    Sec. 4.  Section 386.3, subsection 1, paragraph b, Code
  1 26 1995, is amended to read as follows:
  1 27    b.  Be given a descriptive name containing the words "self-
  1 28 supported municipal improvement district" or "self-supported
  1 29 neighborhood improvement district".
  1 30    Sec. 5.  Section 386.3, subsection 1, paragraph c, Code
  1 31 1995, is amended to read as follows:
  1 32    c.  Be comprised of property related in some manner,
  1 33 including but not limited to present or potential use,
  1 34 physical location, condition, relationship to an area, or
  1 35 relationship to present or potential commercial, residential,
  2  1 or other activity in an area, so as to be benefited in any
  2  2 manner, including but not limited to a benefit from present or
  2  3 potential use or enjoyment of the property, by the condition,
  2  4 development or maintenance of the district or of any
  2  5 improvement or self-liquidating improvement of the district,
  2  6 or be comprised of property the owners of which have a present
  2  7 or potential benefit from the condition, development or
  2  8 maintenance of the district or of any improvement or self-
  2  9 liquidating improvement of the district.
  2 10    Sec. 6.  Section 386.7, subsection 2, paragraph a, Code
  2 11 1995, is amended to read as follows:
  2 12    a.  Aid in the commercial or residential development or a
  2 13 combination of commercial and residential development of the
  2 14 district.
  2 15    Sec. 7.  Section 386.7, subsection 4, paragraph a, Code
  2 16 1995, is amended to read as follows:
  2 17    a.  Aid in the commercial or residential development or a
  2 18 combination of commercial and residential development of the
  2 19 district.
  2 20    Sec. 8.  Section 386.8, Code 1995, is amended to read as
  2 21 follows:
  2 22    386.8  OPERATION TAX – MUNICIPAL AND NEIGHBORHOOD
  2 23 IMPROVEMENT DISTRICT FUNDS.
  2 24    1.  A city may establish a self-supported improvement
  2 25 district operation fund, and may certify taxes not to exceed
  2 26 the rate limitation as established in the ordinance creating
  2 27 the district, or any amendment thereto, each year to be levied
  2 28 for the fund against all of the property in the district, for
  2 29 the purpose of paying the administrative expenses of the
  2 30 district, which may include but are not limited to
  2 31 administrative personnel salaries, a separate administrative
  2 32 office, planning costs including consultation fees,
  2 33 engineering fees, architectural fees, and legal fees and all
  2 34 other expenses reasonably associated with the administration
  2 35 of the district and the fulfilling of the purposes of the
  3  1 district.  The taxes levied for this fund may also be used for
  3  2 the purpose of paying maintenance expenses of improvements or
  3  3 self-liquidating improvements for a specified length of time
  3  4 with one or more options to renew if such is clearly stated in
  3  5 the petition which requests the council to authorize
  3  6 construction of the improvement or self-liquidating
  3  7 improvement, whether or not such petition is combined with the
  3  8 petition requesting creation of a district.  Parcels of
  3  9 property which are assessed as residential property for
  3 10 property tax purposes are exempt from the tax levied under
  3 11 this section except residential properties within a duly
  3 12 designated historic district.  A tax levied under this section
  3 13 subsection is not subject to the levy limitation in section
  3 14 384.1.
  3 15    2.  A city may establish a self-supported neighborhood
  3 16 improvement district operation fund, and may certify taxes not
  3 17 to exceed the rate limitation as established in the ordinance
  3 18 creating the district, or any amendment to the ordinance, each
  3 19 year to be levied for the funds against all of the property in
  3 20 the district, for the purpose of paying the administrative
  3 21 expenses of the district, which may include but are not
  3 22 limited to administrative personnel salaries, a separate
  3 23 administrative office, planning costs including consultation
  3 24 fees, engineering fees, architectural fees, and legal fees and
  3 25 all other expenses reasonably associated with the
  3 26 administration of the district and the fulfilling of the
  3 27 purposes of the district.  The taxes levied for this fund may
  3 28 also be used for the purpose of paying maintenance expenses of
  3 29 improvements or self-liquidating improvements for a specified
  3 30 length of time with one or more options to renew if renewal is
  3 31 clearly in the petition which requests the council to
  3 32 authorize construction of the improvement or self-liquidating
  3 33 improvement, whether or not the petition is combined with the
  3 34 petition requesting creation of the district.  A tax levied
  3 35 under this subsection is not subject to the levy limitation in
  4  1 section 384.1.
  4  2    Sec. 9.  Section 386.9, Code 1995, is amended to read as
  4  3 follows:
  4  4    386.9  CAPITAL IMPROVEMENT TAX – MUNICIPAL CAPITAL
  4  5 IMPROVEMENT FUND OR NEIGHBORHOOD CAPITAL IMPROVEMENT FUND.
  4  6    1.  A city may establish a capital improvement fund for a
  4  7 self-supported municipal improvement district and may certify
  4  8 taxes, not to exceed the rate established by the ordinance
  4  9 creating the district, or any subsequent amendment thereto to
  4 10 the ordinance, each year to be levied for the fund against all
  4 11 of the property in the district, for the purpose of
  4 12 accumulating moneys for the financing or payment of a part or
  4 13 all of the costs of any improvement or self-liquidating
  4 14 improvement.  However, parcels of property which are assessed
  4 15 as residential property for property tax purposes are exempt
  4 16 from the tax levied under this section except residential
  4 17 properties within a duly designated historic district.  A tax
  4 18 levied under this section subsection is not subject to the
  4 19 levy limitations in section 384.1 or 384.7.
  4 20    2.  A city may establish a capital improvement fund for a
  4 21 self-supported neighborhood improvement district and may
  4 22 certify taxes, not to exceed the rate established by the
  4 23 ordinance creating the district, or any subsequent amendment
  4 24 to the ordinance, each year to be levied for the fund against
  4 25 all of the property in the district, for the purpose of
  4 26 accumulating moneys for the financing or payment of all or
  4 27 part of the costs of any improvements or self-liquidating
  4 28 improvement.  A tax levied under this subsection is not
  4 29 subject to the levy limitations in section 384.1 or 384.7.
  4 30    Sec. 10.  Section 386.10, Code 1995, is amended to read as
  4 31 follows:
  4 32    386.10  DEBT SERVICE TAX – MUNICIPAL IMPROVEMENT DISTRICTS
  4 33 AND NEIGHBORHOOD IMPROVEMENT DISTRICTS.
  4 34    1.  A city shall establish a self-supported municipal
  4 35 improvement district debt service fund whenever any self-
  5  1 supported municipal improvement district bonds are issued and
  5  2 outstanding, other than revenue bonds, and shall certify taxes
  5  3 to be levied against all of the property in the district for
  5  4 the debt service fund in the amount necessary to pay interest
  5  5 as it becomes due and the amount necessary to pay, or to
  5  6 create a sinking fund to pay, the principal at maturity of all
  5  7 self-supported municipal improvement district bonds as
  5  8 authorized in section 386.11, issued by the city.  However,
  5  9 parcels of property which are assessed as residential property
  5 10 for property tax purposes at the time of the issuance of the
  5 11 bonds are exempt from the tax levied under this section until
  5 12 the parcels are no longer assessed as residential property or
  5 13 until the residential properties are designated as a part of
  5 14 an historic district.
  5 15    2.  A city shall establish a self-supported neighborhood
  5 16 improvement district debt service fund when any self-supported
  5 17 neighborhood improvement district bonds are issued and
  5 18 outstanding, other than revenue bonds, and shall certify taxes
  5 19 to be levied against all of the property in the district for
  5 20 the debt service fund in the amount necessary to pay interest
  5 21 as it becomes due and the amount necessary to pay, or to
  5 22 create a sinking fund to pay, the principal at maturity of all
  5 23 self-supported neighborhood improvement district bonds as
  5 24 authorized in section 386.11, issued by the city.
  5 25    Sec. 11.  Section 386.11, Code 1995, is amended by adding
  5 26 the following new subsection:
  5 27    NEW SUBSECTION.  1A.  A city may issue and sell self-
  5 28 supported neighborhood improvement district bonds at public or
  5 29 private sale payable from taxes which must be levied in
  5 30 accordance with chapter 76.  The bonds are payable from the
  5 31 levy of unlimited ad valorem taxes on all of the taxable
  5 32 property within the district through the district debt service
  5 33 fund authorized by section 386.10.  When self-supported
  5 34 neighborhood improvement district bonds are issued and taxes
  5 35 are levied in accordance with chapter 76, the taxes shall
  6  1 continue to be levied until the bonds and interest on the
  6  2 bonds are paid in full, against all of the taxable property
  6  3 that was included in the district at the time of the issuance
  6  4 of the bonds, regardless of any subsequent removal of any
  6  5 property from the district or the dissolution of the district.
  6  6    Sec. 12.  Section 386.11, subsection 2, Code 1995, is
  6  7 amended to read as follows:
  6  8    2.  The proceeds of the sale of the bonds may be used to
  6  9 pay any or all of the costs of any improvement, or be used to
  6 10 pay any legal indebtedness incurred for the cost of any
  6 11 improvement including bonds or warrants previously issued to
  6 12 pay the costs of an improvement, or bonds may be exchanged for
  6 13 the evidences of such legal indebtedness.  The proceeds of the
  6 14 sale of self-supported neighborhood improvement bonds may also
  6 15 be used to establish a neighborhood rehabilitation loan fund
  6 16 to make loans to property owners to rehabilitate housing units
  6 17 in the self-supported neighborhood improvement district.  
  6 18                           EXPLANATION
  6 19    This bill amends chapter 386 which provides for the
  6 20 creation of self-supported municipal improvement districts, to
  6 21 allow for the creation of self-supported neighborhood
  6 22 improvement districts using the same basic procedures.  The
  6 23 self-supported neighborhood improvement districts are created
  6 24 to improve residential property within its boundaries while
  6 25 the municipal improvement districts are created to improve
  6 26 commercial and industrial properties.  Another difference is
  6 27 that the municipal improvement districts are prohibited from
  6 28 taxing residential properties which are included in the
  6 29 district.  The neighborhood improvement districts may include
  6 30 commercial and industrial property, but at least 75 percent of
  6 31 the land area or total assessed valuation of the district must
  6 32 be residential property or zoned for residential development.
  6 33    Except for the differences noted above and the authority of
  6 34 neighborhood improvement districts to loan moneys to property
  6 35 owners to improve their housing units, the two improvement
  7  1 districts have basically the same taxing and bonding
  7  2 authority.  The city council creates the district upon request
  7  3 of at least 25 percent of all owners of property within the
  7  4 proposed districts.  The owners must also represent the
  7  5 ownership of property with an assessed value of 25 percent or
  7  6 more of the assessed value of all property in the proposed
  7  7 district.  There are a number of procedures required,
  7  8 including review by planning and zoning bodies, public
  7  9 hearings, and final approval of an ordinance, before the
  7 10 district is operational.  The city, on behalf of a district,
  7 11 may levy an operation tax, a capital improvement tax, and a
  7 12 debt service tax, at the rates specified in the ordinance
  7 13 creating the district.  A city may also issue and sell
  7 14 neighborhood improvement district bonds to pay for
  7 15 improvements.  
  7 16 LSB 3071HH 76
  7 17 tj/cf/24.1
     

Text: HF02223                           Text: HF02225
Text: HF02200 - HF02299                 Text: HF Index
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