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House Study Bill 186

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 357.1A, Code 1995, is amended to read
  1  2 as follows:
  1  3    357.1A  COMBINED WATER AND SANITARY DISTRICT DISTRICTS.
  1  4    1.  Upon receipt of a petition having the required
  1  5 signatories as provided in section 357.1 or 358.2 357.1,
  1  6 358.2, or 403B.3, the board of supervisors shall grant a
  1  7 hearing relative to the establishment of a proposed combined
  1  8 water home development, water, and sanitary district.  The
  1  9 petition shall include the information required in sections
  1 10 357.1 and 358.2 for proposed water districts and sanitary
  1 11 districts and section 403B.3 for home development districts.
  1 12 The board of supervisors of the county in which the proposed
  1 13 combined district or largest part of the proposed combined
  1 14 district is located, shall have jurisdiction of the
  1 15 proceedings on the petition and the decision of a majority of
  1 16 the members of that board of supervisors is necessary for
  1 17 adoption.  The orders of the board of supervisors made
  1 18 pursuant to this chapter, and chapter 358, or chapter 403B
  1 19 relating to the proposed combined district shall be kept as
  1 20 official records, but the records need not be published under
  1 21 section 349.16.  An existing district may petition the board
  1 22 of supervisors to establish a combined water and sanitary
  1 23 district after the approval of a majority of the district
  1 24 electorate.
  1 25    2.  The board of supervisors having jurisdiction to
  1 26 establish the proposed combined water and sanitary district
  1 27 may proceed with its establishment under this chapter, or
  1 28 chapter 358, or chapter 403B in the same manner as a benefited
  1 29 water district, or a sanitary district, or a home development
  1 30 district is separately established under those chapters.  The
  1 31 differences between this chapter, and chapter 358, or chapter
  1 32 403B including, but not limited to, the membership of the
  1 33 board of trustees, per diem, and maximum annual per diem, or a
  1 34 power or duty relating to rents, fees, taxation, or bonded
  1 35 indebtedness shall be resolved as a part of the petition
  2  1 submitted to the board of supervisors.  Before becoming
  2  2 effective, a change in the membership, per diem, maximum
  2  3 annual per diem, or a power or duty relating to rents, fees,
  2  4 the levy of a tax, or the issuance of bonds, or other
  2  5 differences specified on the petition shall be submitted for
  2  6 the approval of the district electorate.  However, the number
  2  7 of members, per diem, maximum annual per diem, or differences
  2  8 in powers and duties included in a combined district shall not
  2  9 be inconsistent with this chapter, or chapter 358, or chapter
  2 10 403B.
  2 11    3.  For the purpose of establishing, operating, or
  2 12 dissolving a combined water and sanitary district under this
  2 13 chapter, and chapter 358, or chapter 403B, the term "benefited
  2 14 water district" includes combined water, and sanitary, and
  2 15 home development district where applicable.
  2 16    4.  Water services and a water service plan prepared by the
  2 17 combined district are subject to approval by an affected city
  2 18 as provided in section 357.1.
  2 19    Sec. 2.  NEW SECTION.  403B.1  INCORPORATION &endash; INTENT.
  2 20    If an area of territory is so situated that the development
  2 21 of housing would encourage economic development in the area
  2 22 and promote the public convenience or welfare, the area may be
  2 23 incorporated as a home development district in the manner set
  2 24 forth in this chapter.  Areas of contiguous or noncontiguous
  2 25 territory may be incorporated in a home development district.
  2 26    It is the intent of the general assembly that home
  2 27 development districts target the development of single family,
  2 28 owner-occupied residences.
  2 29    Sec. 3.  NEW SECTION.  403B.2  COMBINED DISTRICTS.
  2 30    1.  The board of supervisors of a county or major part of a
  2 31 county in which a proposed combined home development district
  2 32 and water and sanitary district will be located, may proceed
  2 33 with the establishment, operation, or dissolution of the
  2 34 combined district as provided in section 357.1A.
  2 35    2.  For the purpose of establishing, operating, or
  3  1 dissolving a combined water and sanitary and home development
  3  2 district under chapter 357, chapter 358, and this chapter, the
  3  3 term "home development district" includes combined water and
  3  4 sanitary and home development district where applicable.
  3  5    Sec. 4.  NEW SECTION.  403B.3  PETITION &endash; DEPOSIT.
  3  6    1.  Any twenty-five or more eligible electors who reside
  3  7 within the limits of any proposed home development district
  3  8 may file a petition in the office of the county auditor of the
  3  9 county in which the proposed home development district, or the
  3 10 major portion thereof, is located, requesting that there be
  3 11 submitted to the registered voters of the proposed district
  3 12 the question whether the territory within the boundaries of
  3 13 the proposed district shall be organized as a home development
  3 14 district under this chapter.  The petition shall be addressed
  3 15 to the board of supervisors of the county in which it is filed
  3 16 and shall contain the following:
  3 17    a.  An intelligible description of the boundaries of the
  3 18 territory to be included in the district.
  3 19    b.  The name of the proposed home development district.
  3 20    c.  That economic development in the area will be
  3 21 encouraged and the public convenience or welfare will be
  3 22 promoted by the establishment of the home development
  3 23 district.
  3 24    d.  The signatures of the petitioners.
  3 25    2.  A territory shall not be included within more than one
  3 26 home development district organized under this chapter, and if
  3 27 any proposed home development district shall fail to receive a
  3 28 majority of votes cast at any election thereon as provided in
  3 29 this chapter, a petition shall not be filed for establishment
  3 30 of a home development district within one year from the date
  3 31 of the previous election.
  3 32    3.  The petitioners shall file with the petition a bond
  3 33 with sureties approved by the auditor, or a certified check,
  3 34 credit union certified share draft, or cash in an amount
  3 35 sufficient for the payment of all costs and expenses incurred
  4  1 in the proceedings if the district is not finally established.
  4  2    4.  Preliminary expense shall not be incurred before the
  4  3 establishment of the proposed home development district by the
  4  4 board in excess of the amount of bond filed by the
  4  5 petitioners.  In case it is necessary to incur any expense in
  4  6 addition to the amount of the bond, the board of supervisors
  4  7 shall require the filing of an additional security until the
  4  8 additional bond is filed in sufficient amount to cover the
  4  9 expense.
  4 10    Sec. 5.  NEW SECTION.  403B.4  JURISDICTION &endash; DECISIONS &endash;
  4 11 RECORDS.
  4 12    The board of supervisors of the county in which the
  4 13 proposed home development district, or the major portion
  4 14 thereof, is located shall have jurisdiction of the proceedings
  4 15 on the petition as provided in this chapter, and the decision
  4 16 of a majority of the members of the board shall be necessary
  4 17 for adoption.  All orders of the board made under this chapter
  4 18 shall be contained in the record of the proceedings of the
  4 19 board of supervisors, but need not be published under section
  4 20 349.16.
  4 21    Sec. 6.  NEW SECTION.  403B.5  DATE AND NOTICE OF HEARING.
  4 22    1.  The board of supervisors to which the petition is
  4 23 addressed, at its next meeting, shall set the time and place
  4 24 for a hearing on the petition.  The board shall direct the
  4 25 county auditor in whose office the petition is filed to cause
  4 26 notice to be given to all persons whom it may concern, without
  4 27 naming them, of the pendency and content of the petition, by
  4 28 publication of a notice as provided in section 331.305.  Proof
  4 29 of giving the notice shall be made by affidavit of the
  4 30 publisher and the proof shall be on file with the county
  4 31 auditor at the time the hearing begins.  The notice of hearing
  4 32 shall be directed to all persons it may concern, and shall
  4 33 state:
  4 34    a.  That a petition has been filed with the county auditor
  4 35 of the county, naming it, for establishment of a proposed home
  5  1 development district, and the name of the proposed district.
  5  2    b.  An intelligible description of the boundaries of the
  5  3 territory to be included in the district.
  5  4    c.  The date, hour, and the place where the hearing will be
  5  5 held on the petition before the board of supervisors of the
  5  6 named county.
  5  7    d.  That the board of supervisors will fix and determine
  5  8 the boundaries of the proposed district as described in the
  5  9 petition or otherwise, and for that purpose may alter and
  5 10 amend the petition.  At the hearing all interested persons
  5 11 shall have an opportunity to be heard on the location and
  5 12 boundaries of the proposed district and to make suggestions
  5 13 regarding the location and boundaries.
  5 14    2.  For a district which does not include land within a
  5 15 city, copy of the notice shall also be sent by mail to each
  5 16 owner, without naming them, of each tract of land or lot
  5 17 within the proposed district as shown by the transfer books of
  5 18 the auditor's office.  The mailings shall be to the last known
  5 19 mailing address unless there is on file an affidavit of the
  5 20 auditor or of a person designated by the board to make the
  5 21 necessary investigation, stating that a mailing address is not
  5 22 known and that diligent inquiry has been made to ascertain it.
  5 23 The copy of notice shall be mailed no less than twenty days
  5 24 before the day set for hearing and proof of service shall be
  5 25 by affidavit of the auditor.  The proofs of service required
  5 26 by this subsection shall be on file at the time the hearing
  5 27 begins.
  5 28    3.  In lieu of the mailing to the last known address a
  5 29 person owning land affected by a proposed district may file
  5 30 with the county auditor an instrument in writing designating
  5 31 the address for the mailing.  This designation when filed is
  5 32 effective for five years and applies to all proceedings under
  5 33 this chapter.  The person making the designation may change
  5 34 the address in the same manner as the original designation is
  5 35 made.
  6  1    4.  In lieu of publication, personal service of the notice
  6  2 may be made upon an owner of land in the proposed district in
  6  3 the manner and for the time required for service of original
  6  4 notices in the district court.  Proof of the service shall be
  6  5 on file with the auditor on the date of the hearing.
  6  6    Sec. 7.  NEW SECTION.  403B.6  HEARING OF PETITION AND
  6  7 ORDER.
  6  8    The board of supervisors to whom the petition is addressed
  6  9 shall preside at the hearing provided for in section 403B.5
  6 10 and shall continue the hearing in session, with adjournments
  6 11 from day to day, if necessary, until completed, without being
  6 12 required to give any further notice of the hearing.  Proof of
  6 13 the residences and qualifications of the petitioners as
  6 14 eligible electors shall be made by affidavit or otherwise as
  6 15 the board may direct.  The board may consider the boundaries
  6 16 of a proposed home development district, whether they shall be
  6 17 as described in the petition or otherwise, and for that
  6 18 purpose may alter and amend the petition and limit or change
  6 19 the boundaries of the proposed district as stated in the
  6 20 petition.  The board shall adjust the boundaries of a proposed
  6 21 district as needed to exclude land that has no reasonable
  6 22 likelihood of benefit from inclusion in the proposed district.
  6 23 The boundaries of a proposed district shall not be changed to
  6 24 incorporate property not included in the original petition and
  6 25 published notice until the owner of the property is given
  6 26 notice of inclusion as on the original hearing.  All persons
  6 27 in the proposed district shall have an opportunity to be heard
  6 28 regarding the location and boundaries of the proposed district
  6 29 and to make suggestions regarding the location and boundaries,
  6 30 and the board of supervisors, after hearing the statements,
  6 31 evidence and suggestions made and offered at the hearing,
  6 32 shall enter an order fixing and determining the limits and
  6 33 boundaries of the proposed district and directing that an
  6 34 election be held for the purpose of submitting to the
  6 35 registered voters owning land within the boundaries of the
  7  1 proposed district the question of organization and
  7  2 establishment of the proposed home development district as
  7  3 determined by the board of supervisors.  The order shall fix a
  7  4 date for the election not more than sixty days after the date
  7  5 of the order.
  7  6    However, a majority of the landowners, owning in the
  7  7 aggregate more than seventy percent of the total land in the
  7  8 proposed district, may file a written objection against the
  7  9 proposed district at or before the time fixed for the hearing
  7 10 on the proposed district with the county auditor.  If the
  7 11 objection is filed, the board of supervisors shall discontinue
  7 12 all further proceedings on the proposed district and charge
  7 13 the costs incurred to date relating to the establishment of
  7 14 the proposed district.
  7 15    Sec. 8.  NEW SECTION.  403B.7  NOTICE OF ELECTION.
  7 16    In its order for the election the board of supervisors
  7 17 shall direct the county commissioner of elections of the
  7 18 county in which the petition is filed to cause notice of the
  7 19 election to be given at least thirty days before the date of
  7 20 election by publication of the notice as provided in section
  7 21 331.305.  The notice shall state the time and place of holding
  7 22 the election and the hours when the polls will open and close,
  7 23 the purpose of the election, with the name of the proposed
  7 24 home development district and a description of the boundaries
  7 25 of it, and shall set forth briefly the limits of each voting
  7 26 precinct and the location of the polling places.  Proof of
  7 27 publication shall be made in the manner provided in section
  7 28 403B.5 and filed with the county auditor.
  7 29    Sec. 9.  NEW SECTION.  403B.8  ELECTION.
  7 30    Each registered voter who resides within the proposed home
  7 31 development district shall have the right to cast a ballot at
  7 32 the election and no person shall vote in any precinct but that
  7 33 of the person's residence.  Ballots at the election shall be
  7 34 in substantially the following form:
  7 35    For home development district        
  8  1    Against home development district        
  8  2    The board of supervisors shall cause a statement of the
  8  3 result of the election to be noted in the records of the
  8  4 county auditor.  If a majority of the votes cast upon the
  8  5 question of incorporation of the proposed home development
  8  6 district shall be in favor of the proposed home development
  8  7 district, the proposed home development district shall
  8  8 thenceforth be deemed an organized home development district
  8  9 under this chapter and established as conducive to the public
  8 10 convenience and welfare.
  8 11    Sec. 10.  NEW SECTION.  403B.9  EXPENSES AND COSTS OF
  8 12 ELECTION.
  8 13    The election held pursuant to this chapter shall be
  8 14 conducted by the county commissioner of elections.  All
  8 15 expenses incurred in carrying out the foregoing sections of
  8 16 this chapter, together with the costs of the election, as
  8 17 determined by the county commissioner of elections, shall be
  8 18 paid by those who will be benefited by the proposed home
  8 19 development district.  If the district is not established, the
  8 20 expenses and costs shall be collected upon the bond or bonds
  8 21 of the petitioners.
  8 22    Sec. 11.  NEW SECTION.  403B.10  SELECTION OF TRUSTEES &endash;
  8 23 TERM OF OFFICE.
  8 24    1.  At the election provided for in section 403B.8, the
  8 25 names of candidates for trustee of the district shall be
  8 26 written by the voters on blank ballots without formal
  8 27 nomination, and the board of supervisors which had
  8 28 jurisdiction of the proceedings for establishment of the home
  8 29 development district, together with the board of supervisors
  8 30 of any other county in which any part of the district is
  8 31 located, shall appoint three trustees from among the five
  8 32 persons receiving the greatest number of votes as trustees of
  8 33 the district.  One of the trustees shall be designated to
  8 34 serve a term expiring on the first day of January which is not
  8 35 a Sunday or legal holiday following the next general election,
  9  1 one to serve a term expiring on the first day of January which
  9  2 is not a Sunday or legal holiday two years later, and one to
  9  3 serve a term expiring on the first day of January which is not
  9  4 a Sunday or legal holiday four years later.  Thereafter, each
  9  5 term shall be for a term of years established by the board of
  9  6 supervisors, not less than three years or more than six years.
  9  7 Successors to trustees shall be elected by special election or
  9  8 at a special meeting of the board of trustees called for that
  9  9 purpose.  For each special election called after the initial
  9 10 election, a candidate for office of trustee shall be nominated
  9 11 by a personal affidavit of the candidate or by petition of at
  9 12 least ten eligible electors of the district and the
  9 13 candidate's personal affidavit, which shall be filed with the
  9 14 county commissioner of elections at least twenty-five days
  9 15 before the date of the election.  The form of the candidate's
  9 16 affidavit shall be substantially the same as provided in
  9 17 section 45.3.
  9 18    2.  Vacancies in the office of trustee of a home
  9 19 development district shall be filled by the remaining members
  9 20 of the board for the period until a successor is chosen in the
  9 21 manner prescribed by this section or by section 69.12,
  9 22 whichever is applicable.
  9 23    3.  In lieu of a special election, successors to trustees
  9 24 shall be elected at a special meeting of the board of trustees
  9 25 called for that purpose.  Upon its own motion, the board of
  9 26 trustees may, or upon petition of landowners owning more than
  9 27 fifty percent of the total land in the district, shall, call a
  9 28 special meeting of the residents of the district to elect
  9 29 successors to trustees of the board.  Notice of the meeting
  9 30 shall be given at least ten days before the date of the
  9 31 meeting by publication of the notice in a newspaper of general
  9 32 circulation in the district.  The notice shall state the date,
  9 33 times, and location of the meeting and that the meeting is
  9 34 called for the purpose of electing one or more trustees to the
  9 35 board.
 10  1    Sec. 12.  NEW SECTION.  403B.11  TRUSTEE'S BOND.
 10  2    Each trustee, before entering upon the duties of office,
 10  3 shall execute a bond payable to the district, with security to
 10  4 be approved by the board of supervisors which had jurisdiction
 10  5 of the petition for establishment of the district, in such
 10  6 form and amount as the board of supervisors may determine,
 10  7 which bond shall be filed with the county auditor of the
 10  8 county.
 10  9    Sec. 13.  NEW SECTION.  403B.12  HOME DEVELOPMENT DISTRICT
 10 10 TO BE A BODY CORPORATE.
 10 11    1.  Each home development district organized under this
 10 12 chapter shall be a body corporate and politic, with the name
 10 13 and style under which it was organized, and by such name and
 10 14 style may sue and be sued, contract and be contracted with,
 10 15 acquire and hold real and personal property necessary for
 10 16 corporate purposes, adopt a corporate seal and alter the same
 10 17 at pleasure, and exercise all the powers conferred in this
 10 18 chapter.
 10 19    2.  All courts of this state shall take judicial notice of
 10 20 the existence of home development districts organized under
 10 21 this chapter.
 10 22    Sec. 14.  NEW SECTION.  403B.13  BOARD OF TRUSTEES &endash;
 10 23 POWERS.
 10 24    1.  The trustees elected as provided in section 403B.10
 10 25 constitute a board of trustees for the district by which they
 10 26 are elected.  The board of trustees is the corporate authority
 10 27 of the home development district and shall manage and control
 10 28 the affairs and property of the district.  A majority of the
 10 29 board of trustees shall constitute a quorum, but a smaller
 10 30 number may adjourn from day to day.  The board of trustees
 10 31 shall elect a president, a clerk, and a treasurer from its
 10 32 membership and may employ employees as necessary, who shall
 10 33 hold their employment during the pleasure of the board.  The
 10 34 board shall prescribe the duties and fix the compensation of
 10 35 all employees of the home development district and the amount
 11  1 of bond to be filed by the treasurer of the district and by
 11  2 any employee for whom the board may require bond.  The members
 11  3 of the board of trustees shall receive a per diem of forty
 11  4 dollars for attendance at a meeting of the board or while
 11  5 otherwise engaged in official duties, but the total per diem
 11  6 for each member shall not exceed two thousand four hundred
 11  7 dollars for a fiscal year.  However, the board of trustees, by
 11  8 resolution, may establish for its members a lower rate of pay
 11  9 than is fixed by this section.  The members of the board shall
 11 10 also be reimbursed for their travel and other necessary
 11 11 expenses incurred in performing their official duties.  Travel
 11 12 expenses are reimbursable at the rate specified in section
 11 13 70A.9.
 11 14    2.  The board of trustees may adopt the necessary
 11 15 ordinances, resolutions, rules, and regulations for the proper
 11 16 management and conduct of the business of the board of
 11 17 trustees and the corporation and for carrying out the purposes
 11 18 for which the home development district is formed.
 11 19    Sec. 15.  NEW SECTION.  403B.14  ORDINANCES &endash; PUBLICATION
 11 20 OR POSTING &endash; TIME OF TAKING EFFECT.
 11 21    All ordinances, resolutions, orders, rules, and regulations
 11 22 adopted by the board take effect from and after their adoption
 11 23 and publication.  The publication shall be by one publication
 11 24 in a newspaper of general circulation in the district, by
 11 25 posting copies in three public places within the district, or
 11 26 by other steps necessary to inform the public.
 11 27    Sec. 16.  NEW SECTION.  403B.15  PROOF OF ORDINANCES.
 11 28    All ordinances, resolutions, orders, rules, and
 11 29 regulations, and the date when they became effective, may be
 11 30 proven by the certificate of the clerk, under the seal of the
 11 31 corporation, if one has been adopted, and when printed in book
 11 32 or pamphlet form and purporting to be published by the board
 11 33 of trustees such book or pamphlet shall be received as
 11 34 evidence of the passage and legal publication or posting
 11 35 thereof as of the dates mentioned therein, in all courts and
 12  1 places, without further proof.
 12  2    Sec. 17.  NEW SECTION.  403B.16  PERSONAL INTEREST IN
 12  3 CONTRACTS.
 12  4    A trustee of a district shall not be directly or indirectly
 12  5 interested in any contract, work, or business of the district,
 12  6 or in the sale of any article the expense, price, or
 12  7 consideration of which is paid by the district; nor in the
 12  8 purchase of any real estate or other property belonging to the
 12  9 district, or which shall be sold for taxes or assessments, or
 12 10 by virtue of legal process at the suit of the district;
 12 11 provided, that nothing herein shall be construed as
 12 12 prohibiting the selection of any person as trustee because of
 12 13 the person's ownership of real estate in the district or
 12 14 because the person is a taxpayer in the district.
 12 15    Sec. 18.  NEW SECTION.  403B.17  POWERS TO PROVIDE FOR HOME
 12 16 DEVELOPMENT.
 12 17    The board of trustees of a home development district
 12 18 organized pursuant to this chapter shall have power to provide
 12 19 for the planning, acquisition, financing, construction, and
 12 20 marketing of housing property within the district.  The
 12 21 district shall consult with the department of economic
 12 22 development regarding the development of housing facilities in
 12 23 the district.
 12 24    Sec. 19.  NEW SECTION.  403B.18   TAXES &endash; POWER TO LEVY &endash;
 12 25 TAX SALES.
 12 26    1.  The board of trustees of any home development district
 12 27 organized under this chapter shall have the power by ordinance
 12 28 to levy annually for the purpose of paying the administrative
 12 29 costs of such district, or for the payment of deficiencies in
 12 30 special assessments, or for both, a tax upon property within
 12 31 the territorial limits of such home development district not
 12 32 exceeding fifty-four cents per thousand dollars of the
 12 33 adjusted taxable valuation of the property within such
 12 34 district for the preceding fiscal year.
 12 35    2.  All taxes thus levied by the board shall be certified
 13  1 by the clerk on or before March 1 to the county auditor of
 13  2 each county wherein any of the property included within the
 13  3 territorial limits of the home development district is
 13  4 located, and shall be placed upon the tax list for the current
 13  5 fiscal year by the auditor or auditors.  The county treasurer,
 13  6 or treasurers, of more than one county, shall collect all
 13  7 taxes so levied in the same manner as other taxes, and when
 13  8 delinquent the taxes shall draw the same interest.  All taxes
 13  9 levied and collected shall be paid over by the officer
 13 10 collecting the taxes to the treasurer of the home development
 13 11 district.
 13 12    Sales for delinquent taxes owing to the home development
 13 13 district shall be made at the same time and in the same manner
 13 14 as such sales are made for other taxes, and all provisions of
 13 15 the law of this state relating to the sale of property for
 13 16 delinquent taxes shall be applicable, so far as may be, to the
 13 17 sales.
 13 18    Sec. 20.  NEW SECTION.  403B.19  RECORDS AND DISBURSEMENTS.
 13 19    The clerk of each home development district shall keep a
 13 20 record of all the proceedings and actions of the trustees.
 13 21 The treasurer shall receive, collect, and disburse all moneys
 13 22 belonging to the district, and no claim shall be paid or
 13 23 disbursement made until it has been duly audited by the board
 13 24 of trustees.
 13 25    Sec. 21.  NEW SECTION.  403B.20  RENTALS AND CHARGES.
 13 26    1.  A home development district may by ordinance establish
 13 27 just and equitable rates, charges, or rentals for the
 13 28 utilities and services furnished by the district to be paid to
 13 29 the district by every person, firm, or corporation whose
 13 30 premises are served by a connection to the utilities and
 13 31 services directly or indirectly.  The rates, charges, or
 13 32 rentals, as near as may be in the judgment of the board of
 13 33 trustees of the district, shall be equitable and in proportion
 13 34 to the services rendered and the cost of the services.  The
 13 35 board of trustees may change the rates, charges, or rentals
 14  1 from time to time as it may deem advisable, and by ordinance
 14  2 may provide for collection.  The board may contract with any
 14  3 municipality within the district, whereby the municipality may
 14  4 collect or assist in collecting any of the rates, charges, or
 14  5 rentals, whether in conjunction with water rentals or
 14  6 otherwise, and the municipality may undertake the collection
 14  7 and render the service.  The rates, charges, or rentals, if
 14  8 not paid when due, shall constitute a lien upon the real
 14  9 property served by a connection.  The lien shall have equal
 14 10 precedence with ordinary taxes, may be certified to the county
 14 11 treasurer and collected in the same manner as taxes, and is
 14 12 not divested by a judicial sale.
 14 13    2.  Rentals, charges, or rates may supplant or replace, in
 14 14 whole or in part, any monetary levy of taxes which may be, or
 14 15 have been, authorized by the board of trustees for any of the
 14 16 following purposes:
 14 17    a.  To meet interest and principal payments on bonds
 14 18 legally authorized for the financing of home development
 14 19 activities in any manner.
 14 20    b.  To pay costs of the construction, maintenance, or
 14 21 repair of such home development facilities or utilities,
 14 22 including payments to be made under any contract between
 14 23 municipalities for either the joint use of water or sewerage
 14 24 or sewage facilities, or for the use by one municipality of
 14 25 all or a part of the sewerage or sewer system of another
 14 26 municipality.
 14 27    3.  When a sewer rental ordinance has been passed and put
 14 28 into effect, prior ordinances or resolutions providing for
 14 29 monetary levy of taxes against real and personal property for
 14 30 such purposes, or the portion thereof replaced, may be
 14 31 repealed.
 14 32    Sec. 22.  NEW SECTION.  403B.21  DEBT LIMIT &endash; BORROWING &endash;
 14 33 BONDS &endash; PURPOSES.
 14 34    1.  Any home development district organized under this
 14 35 chapter may borrow money for its corporate purposes, but shall
 15  1 not become indebted in any manner or for any purpose to an
 15  2 amount in the aggregate exceeding five percent on the value of
 15  3 the taxable property within the district, to be ascertained by
 15  4 the last state and county tax lists previous to the incurring
 15  5 of such indebtedness.  Indebtedness within this constitutional
 15  6 limit shall not include the indebtedness of any other
 15  7 municipal corporation located wholly or partly within the
 15  8 boundaries of the home development district.
 15  9    2.  Subject only to this debt limitation, a home
 15 10 development district organized under this chapter shall have
 15 11 and it is hereby vested with all of the same powers to issue
 15 12 bonds, including both general obligation and revenue bonds,
 15 13 which cities now or may hereafter have under the laws of this
 15 14 state.  In the application of such laws to this chapter, the
 15 15 words used in any such laws referring to municipal
 15 16 corporations or to cities shall be held to include home
 15 17 development districts organized under this chapter, the word
 15 18 "council" or "city council" shall be held to include the board
 15 19 of trustees of a home development district; the words "mayor"
 15 20 and "clerk" shall be held to include the president and clerk
 15 21 of any such board of trustees or home development district;
 15 22 and like construction shall be given to any other words in
 15 23 such laws where required to permit the exercise of such powers
 15 24 by home development districts.
 15 25    3.  Any and all bonds issued hereunder shall be signed by
 15 26 the president of the board of trustees and attested by the
 15 27 clerk, with the seal of the district, if any, affixed, and
 15 28 interest coupons attached thereto shall be attested by the
 15 29 signature of the clerk.
 15 30    4.  The proceeds of any bond issue made under the
 15 31 provisions of this section shall be used only for the purpose
 15 32 of developing housing facilities.  Proceeds from the bond
 15 33 issue may also be used for the payment of special assessment
 15 34 deficiencies.  The bonds shall be payable in not more than
 15 35 forty annual installments and with interest at a rate not
 16  1 exceeding that permitted by chapter 74A, and shall be made
 16  2 payable at the place and be of the form as the board of
 16  3 trustees shall by resolution designate.  Any home development
 16  4 district issuing bonds as authorized in this section is hereby
 16  5 granted authority to pledge the future revenue of a tax levy
 16  6 to the payment of the principal and interest of the bonds
 16  7 after the same come due, and the power to impose and certify
 16  8 the levy is hereby granted to the trustees of home development
 16  9 districts organized under the provisions of this chapter.
 16 10    Sec. 23.  NEW SECTION.  403B.22  SPECIAL ASSESSMENTS.
 16 11    1.  The board of trustees of a home development district
 16 12 may provide for payment of all or any portion of the costs of
 16 13 acquiring, locating, laying out, constructing, reconstructing,
 16 14 repairing, changing, or enlarging property or housing
 16 15 facilities and other necessary adjuncts thereto, by assessing
 16 16 all, or any portion of the costs, on other property according
 16 17 to the benefits derived.  For the purposes of this chapter,
 16 18 the board of trustees may define "other property" as all that
 16 19 included within a designated benefited district or districts
 16 20 to be fixed by the board, which may be all of the property
 16 21 located within the home development district or any lesser
 16 22 portion of that property.  It is not a valid objection to a
 16 23 special assessment that the improvement for which the
 16 24 assessment is levied is outside the limits of the home
 16 25 development district, but a special assessment shall not be
 16 26 made upon property situated outside of the home development
 16 27 district.  Special assessments pursuant to this section shall
 16 28 be in proportion to the special benefits conferred upon the
 16 29 property, and not in excess of the benefits, and an assessment
 16 30 shall not exceed twenty-five percent of the value of the
 16 31 property at the time of levy.  The value of a property is the
 16 32 present fair market value of the property with the proposed
 16 33 public improvements completed.  Payment of installments of a
 16 34 special assessment against property used and assessed as
 16 35 agricultural property shall be deferred upon the filing of a
 17  1 request by the owner in the same manner and under the same
 17  2 procedures as provided in chapter 384 for special assessments
 17  3 by cities.
 17  4    2.  The assessments may be made to extend over a period not
 17  5 to exceed fifteen years, payable in as nearly equal annual
 17  6 installments as practicable.  A majority vote of the board of
 17  7 trustees is requisite and sufficient for any action required
 17  8 by the board of trustees under this section.
 17  9    3.  Subject to the limitations otherwise stated in this
 17 10 section, a home development district organized under this
 17 11 chapter has all of the powers to specially assess the costs of
 17 12 improvements described in this section, including the power to
 17 13 issue special assessment bonds, warrants, project notes, or
 17 14 other forms of interim financing obligations, which cities
 17 15 have under the laws of this state.
 17 16    Sec. 24.  NEW SECTION.  403B.23  APPEAL TO DISTRICT COURT.
 17 17    A person aggrieved by any proceeding had by the board of
 17 18 supervisors or by the board of trustees as provided in this
 17 19 chapter in relation to any matter involving the person's
 17 20 rights not included under the provisions of section 403B.22
 17 21 may appeal to the district court of the county in which the
 17 22 proceedings were had.  Such appeals shall be governed in all
 17 23 respects as is provided by pertinent sections under chapter
 17 24 468, subchapter I, parts 1 to 5.
 17 25    Sec. 25.  NEW SECTION.  403B.24  CONTRACTS OUTSIDE OF
 17 26 DISTRICT.
 17 27    1.  A home development district may enter into contracts
 17 28 with persons or firms outside its limits for the provisions of
 17 29 services within the district but the rate charged shall not be
 17 30 less than that charged the inhabitants of the district.
 17 31    2.  A home development district adjoining a border of the
 17 32 state may contract with the governing body of any legal entity
 17 33 in an adjacent area in another state, to provide services to
 17 34 the district.  The contract shall be subject to approval of
 17 35 the Iowa department of public health, if it involves
 18  1 processing sewage from the district.
 18  2    Sec. 26.  NEW SECTION.  403B.25  REVENUE BONDS.
 18  3    Home development districts incorporated under this chapter
 18  4 may exercise the powers granted to counties in sections
 18  5 331.462 to 331.470, to issue revenue bonds for the purposes in
 18  6 section 331.461, subsection 2, paragraphs "b" and "c".
 18  7    Sec. 27.  NEW SECTION.  403B.26  ANNEXATION OF LAND BY A
 18  8 CITY &endash; COMPENSATION.
 18  9    A home development district shall be fairly compensated for
 18 10 losses resulting from annexation.  The governing body of a
 18 11 city or city utility and the board of trustees of the home
 18 12 development district may agree to terms which provide that the
 18 13 facilities owned by the home development district and located
 18 14 within the city shall be retained by the home development
 18 15 district for the purpose of providing home development
 18 16 services to persons outside the city.  If an agreement is not
 18 17 reached within ninety days, the issues may be submitted to
 18 18 arbitration.  If submitted, an arbitrator shall be selected by
 18 19 a committee which includes one member of the governing body of
 18 20 the city or its designee, one member of the home development
 18 21 district's board of trustees or its designee, and a
 18 22 disinterested party selected by the other two members of the
 18 23 committee.  A list of qualified arbitrators may be obtained
 18 24 from the American arbitration association or another
 18 25 recognized arbitration organization or association.
 18 26    Sec. 28.  NEW SECTION.  403B.27  PETITION FILED.
 18 27    A board of trustees of a home development district may, by
 18 28 resolution, authorize the filing of a petition in the office
 18 29 of the county auditor of the county in which the home
 18 30 development district or a major portion of it is located,
 18 31 requesting the conveyance and discontinuance of the home
 18 32 development district.  The petition shall be addressed to the
 18 33 board of supervisors of the county where it is filed and must
 18 34 set forth:
 18 35    1.  The name of the home development district.
 19  1    2.  That the home development district lies wholly or
 19  2 partially within the corporate limits of a city.
 19  3    3.  That economic development in the area and the public
 19  4 convenience or welfare will be promoted by the conveyance and
 19  5 discontinuance of the home development district and the
 19  6 assumption of the duties, responsibilities, and functions of
 19  7 the home development district by the city.
 19  8    4.  A statement that the city has agreed to assume the
 19  9 duties, responsibilities, and functions of the home
 19 10 development district upon the conveyance and discontinuance.
 19 11 A copy of the agreement shall be attached to the petition.
 19 12    5.  A listing of the assets and liabilities of the home
 19 13 development district, including a complete statement of
 19 14 indebtedness.
 19 15    6.  A copy of the resolution of the board of trustees of
 19 16 the home development district.
 19 17    Sec. 29.  NEW SECTION.  403B.28  JURISDICTION BY BOARD OF
 19 18 SUPERVISORS.
 19 19    The board of supervisors of the county in which the home
 19 20 development district or a major portion of it is located shall
 19 21 have jurisdiction of the proceedings on the petition, and the
 19 22 decision of a majority of the members of the board shall be
 19 23 necessary for approval of the petition for conveyance and
 19 24 discontinuance.  Orders of the board made under this section
 19 25 shall be noted in the records of the proceedings of the board
 19 26 of supervisors, and shall be filed with the county recorder
 19 27 but need not be published under section 349.16.
 19 28    Sec. 30.  NEW SECTION.  403B.29  HEARING ON PETITION.
 19 29    The board of supervisors to whom the petition is addressed,
 19 30 at its next regular meeting shall set the time and place when
 19 31 it shall meet for a hearing on the petition, and it shall
 19 32 direct the county auditor in whose office the petition is
 19 33 filed to cause notice to be given to all persons whom it may
 19 34 concern, without naming them, of the pendency and request of
 19 35 the petition for the conveyance and discontinuance by
 20  1 publication of a notice as provided in section 331.305.  Proof
 20  2 of giving notice shall be made by affidavit of the publisher
 20  3 and shall be filed with the county auditor at the time the
 20  4 hearing begins.
 20  5    Sec. 31.  NEW SECTION.  403B.30  NOTICE.
 20  6    The notice of hearing shall state the following:
 20  7    1.  That a petition has been filed with the county auditor
 20  8 of the county for the conveyance and discontinuance of the
 20  9 home development district.
 20 10    2.  An intelligible description of the boundaries of the
 20 11 home development district.
 20 12    3.  The date, hour, and place where the petition will be
 20 13 heard before the board of supervisors of the county.
 20 14    4.  That the board of supervisors will hear all persons
 20 15 having an interest in the matter and that after the hearing,
 20 16 the board of supervisors will take action as is in the best
 20 17 interest of the home development district.
 20 18    Sec. 32.  NEW SECTION.  403B.31  CONDUCTING HEARING.
 20 19    The board of supervisors to whom the petition is addressed
 20 20 shall preside at the hearing and shall continue the same in
 20 21 session with adjournments from day to day, if necessary, and
 20 22 until completed, without being required to give further
 20 23 notice.  At the hearing, all persons interested in the matter
 20 24 of the conveyance and discontinuance of the home development
 20 25 district may appear and shall be heard, for and against the
 20 26 conveyance and discontinuance, and the board shall examine
 20 27 into the matter and the equitable distribution of the assets,
 20 28 and equitable distribution and assumption of the liabilities
 20 29 which have accrued during the time the home development
 20 30 district has been in existence.  The board shall receive
 20 31 evidence on the question from the parties interested, and,
 20 32 after hearing and reviewing the statements, evidence, and
 20 33 suggestions made and offered at the hearing, if it finds that
 20 34 the home development district lies wholly or partially within
 20 35 the corporate limits of a city or that the depository of the
 21  1 district is a municipal home development sewage system, that
 21  2 the public health, comfort, convenience, or welfare will be
 21  3 promoted by the conveyance and discontinuance of the home
 21  4 development district and the assumption of the duties,
 21  5 responsibilities, and functions of the home development
 21  6 district by the city, and that the city has agreed to assume
 21  7 the duties, responsibilities, and functions of the home
 21  8 development district, shall enter an order specifying the
 21  9 matter and specifying the equitable distribution of the
 21 10 assets, and the equitable distribution and assumption of the
 21 11 liabilities and responsibilities of the home development
 21 12 district and setting an effective date of the conveyance and
 21 13 discontinuance.
 21 14    Sec. 33.  NEW SECTION.  403B.32  FILING ORDER OF
 21 15 DISCONTINUANCE.
 21 16    When a home development district has been discontinued by
 21 17 order of the board of supervisors, as provided in this
 21 18 division, the order of the board of supervisors shall be filed
 21 19 in the office of the recorder in the county or counties in
 21 20 which the home development district is located.  The agreement
 21 21 of the city in which the home development district is located
 21 22 and which has agreed to assume the duties, responsibilities,
 21 23 and functions of the home development district shall also be
 21 24 filed along with, and as part of the order of the board of
 21 25 supervisors conveying and discontinuing the district.
 21 26    Sec. 34.  NEW SECTION.  403B.33  PENDING RIGHTS OR
 21 27 LIABILITIES.
 21 28    The assumption by the city shall not affect or impair any
 21 29 rights or liabilities then existing for or against either the
 21 30 home development district or the city, and they may be
 21 31 enforced as provided in this chapter.
 21 32    Sec. 35.  NEW SECTION.  403B.34  INDEBTEDNESS ASSUMED.
 21 33    The indebtedness of the home development district shall be
 21 34 assumed and paid by the city, and may be paid by a tax to be
 21 35 levied exclusively upon the property within the jurisdiction
 22  1 of the home development district as it existed prior to the
 22  2 conveyance and discontinuance, or by the issuance of such
 22  3 bonds as cities may issue for purchasing and acquiring any
 22  4 home development sewer system or sewage disposal works and
 22  5 facilities or both.
 22  6    Sec. 36.  NEW SECTION.  403B.35  CLAIMS PROSECUTED AGAINST
 22  7 CITY.
 22  8    Suits to enforce claims or demands existing at the time of
 22  9 the conveyance, discontinuance, and assumption may be
 22 10 prosecuted or brought against the city which assumes the
 22 11 obligations of the home development district, and judgments
 22 12 obtained shall be paid as provided in section 403B.34 for the
 22 13 payment of the indebtedness.
 22 14    Sec. 37.  NEW SECTION.  403B.36  DISSOLUTION.
 22 15    1.  After three years from the establishment of a home
 22 16 development district, a petition may be filed in the office of
 22 17 the county auditor, addressed to the board of supervisors,
 22 18 signed by a majority of persons owning land in the district
 22 19 and who in aggregate own at least sixty percent of the land in
 22 20 the district.  The petition shall include the above facts and
 22 21 recite each of the following:
 22 22    a.  That more than three years has passed since the date of
 22 23 the election which established the district.
 22 24    b.  That there are no bonds or other evidences of
 22 25 indebtedness outstanding against the district, or if there is
 22 26 indebtedness, the petition shall contain a plan of dissolution
 22 27 which makes adequate provisions for payment of the
 22 28 indebtedness.
 22 29    c.  That a construction contract has not been let or work
 22 30 done on any improvements in the district or if either has
 22 31 occurred, the petition shall contain a plan of dissolution
 22 32 which makes adequate provisions for payment of the contract
 22 33 price or for the work.
 22 34    2.  All costs and expenses of the district shall be
 22 35 assessed against the district before dissolution by the levy
 23  1 of an annual tax necessary to accomplish payment, but the levy
 23  2 shall not exceed the rate provided in this section.
 23  3    3.  The board shall examine the petition at its next
 23  4 meeting after its filing or within twenty days of the filing,
 23  5 whichever date is earlier.  Within ten days of the meeting,
 23  6 the board shall publish notice of the petition and the date,
 23  7 time, and place of the meeting at which time the board
 23  8 proposes to take action on the petition.  The notice shall be
 23  9 published in a newspaper of general circulation published in
 23 10 the district and, if no newspaper is published within the
 23 11 district, in a newspaper published in the county in which the
 23 12 major part of the district is located.  At the board's
 23 13 meeting, or subsequent meetings as necessary, if the petition
 23 14 is found to comply with the requirements of this section and
 23 15 the board of trustees consents by majority vote, the board of
 23 16 supervisors may provide for payment as requested or modify the
 23 17 method of payment of costs and expenses.
 23 18    4.  If the board decides that dissolution is warranted for
 23 19 the best interest of the public, it shall publish a notice in
 23 20 a newspaper of general circulation published in the district
 23 21 or, if no newspaper is published in the district, in a
 23 22 newspaper published in the county in which the major part of
 23 23 the district is located and give notice by mail to all known
 23 24 claimants or creditors of the district that it will receive
 23 25 and adjudicate claims against the district for four months
 23 26 from the date the notice is published and shall levy an annual
 23 27 tax as necessary against all property in the district for the
 23 28 number of years required to pay all claims allowed.  However,
 23 29 the annual tax levied under this subsection shall not exceed
 23 30 four dollars per thousand dollars of assessed valuation of the
 23 31 taxable property within the district at the time of
 23 32 dissolution.  The levy shall be made in the same manner as
 23 33 provided in section 76.2.  After the board makes a specific
 23 34 finding that all indebtedness, costs, and expenses have been
 23 35 paid or levies approved for their payment, the board shall
 24  1 dissolve the district by resolution entered upon its records.
 24  2 The dissolution order shall be noted by the auditor on the
 24  3 county records, showing the date when the dissolution became
 24  4 effective.
 24  5    5.  The records of a dissolved district including, but not
 24  6 limited to, copies of all engineering files and work
 24  7 undertaken by engineers of a dissolved district, shall be
 24  8 deposited with the county auditor of the county designated by
 24  9 the board.  Any remaining balances shall be deposited in the
 24 10 general fund of the county designated by the board.  All other
 24 11 assets of the dissolved district shall become, by dissolution,
 24 12 assets of the county.
 24 13    6.  An action shall not be commenced to contest action of
 24 14 the board of supervisors under this section in adjudicating
 24 15 claims, providing for the levy of a tax, or dissolving the
 24 16 district unless it is brought within thirty days of the entry
 24 17 of the dissolution order on the county record.  
 24 18                           EXPLANATION
 24 19    This bill authorizes the establishment of home development
 24 20 districts, similar to sanitary districts, or benefited water
 24 21 districts.  A district could be formed singly or in
 24 22 combination with a benefited water or sanitary district or
 24 23 both.  An area may be incorporated as a home development
 24 24 district if the development of additional housing resources in
 24 25 the area would encourage economic development or contribute to
 24 26 public convenience or welfare.
 24 27    The bill also provides that 25 or more eligible electors
 24 28 may petition the county board of supervisors for the
 24 29 establishment of a home development district and the mechanism
 24 30 for bringing the district into existence.  Trustees of the
 24 31 district have the power to manage and control the affairs of
 24 32 the district, including the power to levy taxes for the
 24 33 purposes of the district, to borrow funds, and to issue bonds.
 24 34    The bill also provides for the dissolution of the district
 24 35 and the winding up of the district's affairs.  
 25  1 LSB 1526XL 76
 25  2 mk/jj/8.1
     

Text: HSB00185                          Text: HSB00187
Text: HSB00100 - HSB00199               Text: HSB Index
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