Text: HF02223 Text: HF02225 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 propertythereinin 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 thissection3 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 amendmenttheretoto 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 thissectionsubsection 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 Bills and Amendments: General Index Bill History: General Index
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