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1 1 Section 1. NEW SECTION. 358C.1 DEFINITIONS.
1 2 As used in this chapter, unless the context otherwise
1 3 requires:
1 4 1. "Board" means the board of trustees of a real estate
1 5 improvement district.
1 6 2. "Construction" includes materials, labor, acts,
1 7 operations, and services necessary to complete a public
1 8 improvement.
1 9 3. "Cost" of a public improvement includes the cost of
1 10 engineering, preliminary reports, property valuations,
1 11 estimates, plans, specifications, notices, legal services,
1 12 acquisition of land, consequential damages, easements, rights-
1 13 of-way, construction, repair, supervision, inspection,
1 14 testing, notices and publication, interest during construction
1 15 and for not more than six months thereafter, and printing and
1 16 sale of bonds.
1 17 4. "District" means a real estate improvement district as
1 18 created in this chapter.
1 19 5. "Public improvement" includes the principal structures,
1 20 works, component parts, and accessories of the facilities or
1 21 systems specified in section 358C.3.
1 22 6. "Repair" includes materials, labor, acts, operations,
1 23 and services necessary for the reconstruction, reconstruction
1 24 by widening, or resurfacing of a public improvement.
1 25 Sec. 2. NEW SECTION. 358C.2 REAL ESTATE IMPROVEMENT
1 26 DISTRICT CREATED.
1 27 1. A majority of the owners having an interest in the real
1 28 property within the limits of a proposed district may file a
1 29 petition in the office of county auditor of the county in
1 30 which the proposed district or major part of the proposed
1 31 district is located, requesting that the question be submitted
1 32 to the registered voters of the proposed district of whether
1 33 the territory within the boundaries of the proposed district
1 34 shall be organized as a real estate improvement district as
1 35 provided in this chapter. Areas of contiguous and
2 1 noncontiguous territory may be incorporated within a district.
2 2 The petition shall be addressed to the board of supervisors if
2 3 all or part of the proposed district includes territory
2 4 located outside the boundaries of a city, and shall set forth
2 5 the following information:
2 6 a. The name of the district.
2 7 b. The district shall have perpetual existence.
2 8 c. The boundaries of the district.
2 9 d. The names and addresses of the owners of land in the
2 10 proposed district.
2 11 e. The description of the tracts of land situated in the
2 12 proposed district owned by those persons who may organize the
2 13 district.
2 14 f. The names and descriptions of the real estate owned by
2 15 the persons who do not join in the organization of the
2 16 district, but who will be benefited by the district.
2 17 g. A listing of one or more of the district improvements
2 18 specified in section 358C.3 which will be carried out by the
2 19 district.
2 20 h. The owners of real estate in the proposed district that
2 21 are unknown may also be set out in the petition as being
2 22 unknown.
2 23 i. That the establishment of the proposed district will be
2 24 conducive to the public health, comfort, convenience, and
2 25 welfare.
2 26 2. The petition shall also state that the owners of real
2 27 estate who are forming the proposed district are willing to
2 28 pay the taxes which may be levied against all of the property
2 29 in the proposed district and special assessments against the
2 30 real property benefited which may be assessed against them to
2 31 pay the costs necessary to carry out the purposes of the
2 32 district.
2 33 3. The petition shall propose the names of five or more
2 34 trustees who shall be owners of real estate in the proposed
2 35 district, to serve as a board of trustees until their
3 1 successors are elected and qualified if the district is
3 2 organized. The board of trustees shall only carry out those
3 3 purposes which are authorized in this chapter and listed in
3 4 the petition.
3 5 4. If the proposed district includes real estate located
3 6 in whole or in part within the boundaries of a city, the
3 7 petition shall be submitted to and approved by the city
3 8 council before it is filed with the county auditor as provided
3 9 in subsection 1. If a petition includes a proposed district
3 10 located solely within the boundaries of a city, the petition
3 11 is not subject to action by the board of supervisors except
3 12 for the purpose of selecting the initial trustees and setting
3 13 the election date to finally organize the district.
3 14 5. A proposed district shall be created only from parcels
3 15 of land within the boundaries of a city, on parcels of land
3 16 within two miles of the boundaries of a city, or on parcels of
3 17 land from both locations.
3 18 Sec. 3. NEW SECTION. 358C.3 PUBLIC IMPROVEMENTS
3 19 AUTHORIZED.
3 20 1. A district may acquire, construct, reconstruct,
3 21 install, maintain, and repair any of the public improvements
3 22 listed in subsection 2.
3 23 2. A public improvement includes the principal structures,
3 24 works, component parts, and accessories of any of the
3 25 following:
3 26 a. Underground gas, water, heating, sewer, and electrical
3 27 connections located in streets for private property.
3 28 b. Sanitary, storm, and combined sewers.
3 29 c. Waterworks, water mains, and extensions.
3 30 d. Emergency warning systems.
3 31 e. Sidewalks and pedestrian underpasses or overpasses.
3 32 f. Drainage conduits, dikes, and levees for flood
3 33 protection.
3 34 g. Public waterways, docks, and wharfs.
3 35 h. Public parks, playgrounds, and recreational facilities.
4 1 i. Street grading, paving, graveling, macadamizing,
4 2 curbing, guttering, and surfacing with oil and gravel or
4 3 chloride.
4 4 j. Drives and driveway approaches located within the
4 5 public right-of-way.
4 6 k. Street lighting fixtures, connections, and facilities.
4 7 l. Sewage pumping stations and disposal and treatment
4 8 plants.
4 9 m. Traffic control devices, fixtures, connections, and
4 10 facilities.
4 11 n. Public roads, streets, and alleys.
4 12 Sec. 4. NEW SECTION. 358C.4 DATE AND NOTICE OF HEARING.
4 13 1. The board of supervisors to which the petition is
4 14 addressed, at its next meeting, shall set the time and place
4 15 for a hearing on the petition. The board shall direct the
4 16 county auditor in whose office the petition is filed to cause
4 17 notice to be given to all persons whom it may concern, without
4 18 naming them, of the pendency and content of the petition, by
4 19 publication of a notice as provided in section 331.305. Proof
4 20 of giving the notice shall be made by affidavit of the
4 21 publisher and the proof shall be on file with the county
4 22 auditor at the time the hearing begins. The notice of hearing
4 23 shall be directed to all persons it may concern, and shall
4 24 state:
4 25 a. That a petition has been filed with the county auditor
4 26 of the county, naming it, for establishment of a proposed
4 27 district, and the name of the proposed district.
4 28 b. An intelligible description of the boundaries of the
4 29 territory to be embraced in the district.
4 30 c. The date, hour, and the place where the petition will
4 31 be brought for hearing before the board of supervisors of the
4 32 named county.
4 33 d. That the board of supervisors will fix and determine
4 34 the boundaries of the proposed district as described in the
4 35 petition or otherwise, and for that purpose may alter and
5 1 amend the petition. At the hearing all interested persons
5 2 shall have an opportunity to be heard on the location and
5 3 boundaries of the proposed district and to make suggestions
5 4 regarding the location and boundaries.
5 5 2. For a district which does not include land within a
5 6 city, copy of the notice shall also be sent by mail to each
5 7 owner, without naming them, of each tract of land or lot
5 8 within the proposed district as shown by the transfer books of
5 9 the auditor's office. The mailings shall be to the last known
5 10 mailing address unless there is on file an affidavit of the
5 11 auditor or of a person designated by the board to make the
5 12 necessary investigation, stating that a mailing address is not
5 13 known and that diligent inquiry has been made to ascertain it.
5 14 The copy of notice shall be mailed no less than twenty days
5 15 before the day set for hearing and proof of service shall be
5 16 by affidavit of the auditor. The proofs of service required
5 17 by this subsection shall be on file at the time the hearing
5 18 begins.
5 19 3. In lieu of the mailing to the last known address a
5 20 person owning land affected by a proposed district may file
5 21 with the county auditor an instrument in writing designating
5 22 the address for the mailing. This designation when filed is
5 23 effective for five years and applies to all proceedings under
5 24 this chapter. The person making the designation may change
5 25 the address in the same manner as the original designation is
5 26 made.
5 27 4. In lieu of publication, personal service of the notice
5 28 may be made upon an owner of land in the proposed district in
5 29 the manner and for the time required for service of original
5 30 notices in the district court. Proof of the service shall be
5 31 on file with the auditor on the date of the hearing.
5 32 Sec. 5. NEW SECTION. 358C.5 HEARING OF PETITION AND
5 33 ORDER.
5 34 The board of supervisors to whom the petition is addressed
5 35 shall preside at the hearing provided for in section 358C.4
6 1 and shall continue the hearing in session, with adjournments
6 2 from day to day, if necessary, until completed, without being
6 3 required to give any further notice of the hearing. Proof of
6 4 the residences and qualifications of the petitioners as
6 5 registered voters shall be made by affidavit or otherwise as
6 6 the board may direct. The board may consider the boundaries
6 7 of a proposed district, whether the boundaries are described
6 8 in the petition or otherwise, and for that purpose may alter
6 9 and amend the petition and limit or change the boundaries of
6 10 the proposed district as stated in the petition. The board
6 11 shall adjust the boundaries of a proposed district as needed
6 12 to exclude land that has no reasonable likelihood of benefit
6 13 from inclusion in the proposed district. The boundaries of a
6 14 proposed district shall not be changed to incorporate property
6 15 not included in the original petition and published notice
6 16 until the owner of the property is given notice of inclusion
6 17 as on the original hearing. All persons in the proposed
6 18 district shall have an opportunity to be heard regarding the
6 19 location and boundaries of the proposed district and to make
6 20 suggestions regarding the location and boundaries, and the
6 21 board of supervisors, after hearing the statements, evidence,
6 22 and suggestions made and offered at the hearing, shall enter
6 23 an order fixing and determining the limits and boundaries of
6 24 the proposed district and directing that an election be held
6 25 for the purpose of submitting to the registered voters owning
6 26 land within the boundaries of the proposed district the
6 27 question of organization and establishment of the proposed
6 28 district as determined by the board of supervisors. The order
6 29 shall fix a date for the election not more than sixty days
6 30 after the date of the order.
6 31 Sec. 6. NEW SECTION. 358C.6 NOTICE OF ELECTION.
6 32 In its order for the election the board of supervisors
6 33 shall direct the county commissioner of elections of the
6 34 county in which the petition is filed to cause notice of the
6 35 election to be given at least thirty days before the date of
7 1 election by publication of the notice as provided in section
7 2 331.305. The notice shall state the time and place of holding
7 3 the election and the hours when the polls will open and close,
7 4 the purpose of the election, with the name of the proposed
7 5 district and a description of the boundaries of the proposed
7 6 district, and shall set forth briefly the limits of each
7 7 voting precinct and the location of the polling places. Proof
7 8 of publication shall be made in the manner provided in section
7 9 358C.4 and filed with the county auditor.
7 10 Sec. 7. NEW SECTION. 358C.7 ELECTION.
7 11 1. Each registered voter resident within the proposed
7 12 district shall have the right to cast a ballot at the election
7 13 and a person shall not vote in any precinct but that of the
7 14 person's residence. Ballots at the election shall be in
7 15 substantially the following form, to wit:
7 16 For Real Estate Improvement District
7 17 Against Real Estate Improvement District
7 18 2. The board of supervisors shall cause a statement of the
7 19 result of the election to be included in the records of the
7 20 county auditor. If a majority of the votes cast upon the
7 21 question of incorporation of the proposed district shall be in
7 22 favor of the proposed district, the proposed district shall be
7 23 deemed an organized real estate improvement district under
7 24 this chapter and established as conducive to the public
7 25 health, comfort, convenience, and welfare.
7 26 Sec. 8. NEW SECTION. 358C.8 EXPENSES AND COSTS OF
7 27 ELECTION.
7 28 The election held pursuant to this chapter shall be
7 29 conducted by the county commissioner of elections. All
7 30 expenses incurred in carrying out the preceding sections of
7 31 this chapter, and the costs of the election, as determined by
7 32 the county commissioner of elections, shall be paid by those
7 33 who will be benefited by the proposed district. If the
7 34 district is not established, the expenses and costs shall be
7 35 collected upon the bonds of the petitioners.
8 1 Sec. 9. NEW SECTION. 358C.9 SELECTION OF TRUSTEES &endash;
8 2 TERM OF OFFICE.
8 3 1. At the election provided for in section 358C.7, the
8 4 names of candidates for trustee of the district shall be
8 5 submitted to the registered voters, and the board of
8 6 supervisors which had jurisdiction of the proceedings for
8 7 establishment of the district, together with the board of
8 8 supervisors of any other county in which any part of the
8 9 district is located, shall appoint five trustees from among
8 10 the five or more persons receiving the greatest number of
8 11 votes as trustees of the district. One of the trustees shall
8 12 be designated to serve a term expiring on the first day of
8 13 January which is not a Sunday or legal holiday following the
8 14 next general election, two to serve a term expiring on the
8 15 first day of January which is not a Sunday or legal holiday
8 16 two years later, and two to serve a term expiring on the first
8 17 day of January which is not a Sunday or legal holiday four
8 18 years later. Thereafter, each term shall be for a term of
8 19 years established by the board of supervisors, not less than
8 20 three years or more than six years. Successors to trustees
8 21 shall be elected by special election or at a special meeting
8 22 of the board of trustees called for that purpose. For each
8 23 special election called after the initial election, a
8 24 candidate for office of trustee shall be nominated by a
8 25 personal affidavit of the candidate or by petition of at least
8 26 ten registered voters of the district and the candidate's
8 27 personal affidavit, which shall be filed with the county
8 28 commissioner of elections at least twenty-five days before the
8 29 date of the election. The form of the candidate's affidavit
8 30 shall be substantially the same as provided in section 45.3.
8 31 2. Vacancies in the office of trustee of a district shall
8 32 be filled by the remaining members of the board for the period
8 33 until a successor is chosen in the manner prescribed by this
8 34 section or by section 69.12, whichever is applicable.
8 35 3. In lieu of a special election, successors to trustees
9 1 shall be elected at a special meeting of the board of trustees
9 2 called for that purpose. Upon its own motion, the board of
9 3 trustees may, or upon petition of landowners owning more than
9 4 fifty percent of the total land in the district, shall, call a
9 5 special meeting of the residents of the district to elect
9 6 successors to trustees of the board. Notice of the meeting
9 7 shall be given at least ten days before the date of the
9 8 meeting by publication of the notice in a newspaper of general
9 9 circulation in the district. The notice shall state the date,
9 10 times, and location of the meeting and that the meeting is
9 11 called for the purpose of electing one or more trustees to the
9 12 board.
9 13 Sec. 10. NEW SECTION. 358C.10 TRUSTEE'S BOND.
9 14 Each trustee, before entering upon the duties of office,
9 15 shall execute a bond payable to the district, with security to
9 16 be approved by the board of supervisors which had jurisdiction
9 17 of the petition for establishment of the district, in such
9 18 form and amount as the board of supervisors may determine,
9 19 which bond shall be filed with the county auditor of the
9 20 county.
9 21 Sec. 11. NEW SECTION. 358C.11 REAL ESTATE IMPROVEMENT
9 22 DISTRICT TO BE A BODY CORPORATE &endash; EMINENT DOMAIN.
9 23 1. Each district organized under this chapter shall be a
9 24 body corporate and politic, with the name and style under
9 25 which it was organized, and by that name and style may sue and
9 26 be sued, contract and be contracted with, acquire and hold
9 27 real and personal property necessary for corporate purposes,
9 28 adopt a corporate seal and alter the same at pleasure, and
9 29 exercise all the powers conferred in this chapter.
9 30 2. All courts of this state shall take judicial notice of
9 31 the existence of real estate improvement districts organized
9 32 under this chapter.
9 33 3. A district shall not own or hold land in excess of ten
9 34 acres unless the land is actually used for a public purpose
9 35 within three years of its acquisition. A district which owns
10 1 or holds land in excess of ten acres for more than three years
10 2 without devoting it to a public purpose as provided in this
10 3 chapter shall divest itself of the land by public auction to
10 4 the highest bidder.
10 5 4. A district may acquire by purchase, condemnation, or
10 6 gift, real or personal property, right-of-way, and easement
10 7 within or without its corporate limits necessary for its
10 8 corporate purposes specified in section 358C.3.
10 9 5. If the board of trustees of the district decide to make
10 10 a public improvement pursuant to this chapter which requires
10 11 that private property be taken or damaged, the board may
10 12 exercise the power of eminent domain. The procedure to
10 13 condemn property shall be exercised in the manner provided in
10 14 chapter 6B.
10 15 Sec. 12. NEW SECTION. 358C.12 BOARD OF TRUSTEES &endash;
10 16 POWERS &endash; PROHIBITED ACTIONS.
10 17 1. The board of trustees is the corporate authority of the
10 18 district and shall manage and control the affairs and property
10 19 of the district. A majority of the board of trustees shall
10 20 constitute a quorum, but a smaller number may adjourn from day
10 21 to day. The board of trustees shall elect a president, a
10 22 clerk, and a treasurer from its membership and may employ
10 23 employees as necessary, who shall hold their employment during
10 24 the pleasure of the board. The board shall prescribe the
10 25 duties and fix the compensation of all employees of the
10 26 district and the amount of bond to be filed by the treasurer
10 27 of the district and by any employee for whom the board may
10 28 require bond. The members of the board of trustees shall
10 29 receive a per diem of forty dollars for attendance at a
10 30 meeting of the board or while otherwise engaged in official
10 31 duties, but the total per diem for each member shall not
10 32 exceed two thousand four hundred dollars for a fiscal year.
10 33 However, the board of trustees, by resolution, may establish
10 34 for its members a lower rate of pay than is fixed by this
10 35 section. The members of the board shall also be reimbursed
11 1 for their travel and other necessary expenses incurred in
11 2 performing their official duties. Travel expenses are
11 3 reimbursable at the rate specified in section 70A.9.
11 4 2. The board of trustees may adopt the necessary
11 5 ordinances, resolutions, and regulations for the proper
11 6 management and conduct of the business of the board of
11 7 trustees and the corporation and for carrying out the purposes
11 8 for which the district is formed.
11 9 3. If the board of trustees wishes to expand its authority
11 10 to carry out public improvements in addition to the public
11 11 improvements listed in the board's original petition as
11 12 provided in section 358C.3, the board shall submit a petition
11 13 to the board of supervisors specifying the additional public
11 14 improvements to be included within the authority of the
11 15 district and requesting that the board of supervisors order an
11 16 election as provided in section 358C.6 to approve or
11 17 disapprove the amendment. If the petition includes public
11 18 improvements as specified in section 358C.3, the board of
11 19 supervisors shall order the election to be conducted as
11 20 otherwise provided in this chapter. If the amendment is
11 21 approved, the original petition is amended to include the
11 22 additional public improvements.
11 23 4. The board of trustees of a district shall not purchase
11 24 and resell electric service.
11 25 Sec. 13. NEW SECTION. 358C.13 TAXES &endash; POWER TO LEVY &endash;
11 26 TAX SALES.
11 27 1. The board of trustees of a real estate improvement
11 28 district shall have the power by ordinance to levy annually
11 29 for the purpose of paying the administrative costs of the
11 30 district, or for the payment of deficiencies in special
11 31 assessments, or for both, a tax upon property within the
11 32 territorial limits of the district not exceeding fifty-four
11 33 cents per thousand dollars of the adjusted taxable valuation
11 34 of the property within the district for the preceding fiscal
11 35 year.
12 1 2. All taxes thus levied by the board shall be certified
12 2 by the clerk on or before March 1 to the county auditor of
12 3 each county in which any of the property included within the
12 4 territorial limits of the district is located, and shall be
12 5 placed upon the tax list for the current fiscal year by the
12 6 auditor. The county treasurer of more than one county shall
12 7 collect all taxes so levied in the same manner as other taxes,
12 8 and when delinquent the taxes shall draw the same interest.
12 9 All taxes levied and collected shall be paid over by the
12 10 officer collecting the taxes to the treasurer of the district.
12 11 3. Sales for delinquent taxes owing to the district shall
12 12 be made at the same time and in the same manner as the sales
12 13 are made for other taxes, and all provisions of the law of
12 14 this state relating to the sale of property for delinquent
12 15 taxes shall be applicable, so far as may be, to the sales.
12 16 Sec. 14. NEW SECTION. 358C.14 RENTALS AND CHARGES.
12 17 1. A board of trustees may by ordinance establish
12 18 equitable rates, charges, or rentals for the utilities and
12 19 services furnished by the district to be paid to the district
12 20 by every person, firm, or corporation whose premises are
12 21 served by a connection to the utilities and services directly
12 22 or indirectly. The rates, charges, or rentals, as near as may
12 23 be in the judgment of the board of trustees, shall be
12 24 equitable and in proportion to the services rendered and the
12 25 cost of the services, and taking into consideration in the
12 26 case of the premises the quantity of sewage or water produced
12 27 or used and the concentration, strength, and pollution
12 28 qualities of the sewage. The board of trustees may change the
12 29 rates, charges, or rentals as it may deem advisable, and by
12 30 ordinance may provide for collection. The board may contract
12 31 with any municipality within the district, whereby the
12 32 municipality may collect or assist in collecting any of the
12 33 rates, charges, or rentals, whether in conjunction with water
12 34 rentals or otherwise, and the municipality may undertake the
12 35 collection and render the service. The rates, charges, or
13 1 rentals, if not paid when due, shall constitute a lien upon
13 2 the real property served by a connection. The lien shall have
13 3 equal precedence with ordinary taxes, may be certified to the
13 4 county treasurer and collected in the same manner as taxes,
13 5 and is not divested by a judicial sale.
13 6 2. Sewer rentals, charges, or rates may supplant or
13 7 replace, in whole or in part, any monetary levy of taxes which
13 8 may be, or have been, authorized by the board of trustees for
13 9 any of the following purposes:
13 10 a. To meet interest and principal payments on bonds
13 11 legally authorized for the financing of sanitary utilities in
13 12 any manner.
13 13 b. To pay costs of the construction, maintenance, or
13 14 repair of the facilities or utilities, including payments to
13 15 be made under any contract between municipalities for either
13 16 the joint use of water or sewage facilities, or for the use by
13 17 one municipality of all or a part of the water or sewer system
13 18 of another municipality.
13 19 Sec. 15. NEW SECTION. 358C.15 DEBT LIMIT &endash; BORROWING &endash;
13 20 BONDS &endash; PURPOSES.
13 21 1. A district may borrow money for its corporate purposes,
13 22 but shall not become indebted in any manner or for any purpose
13 23 to an amount in the aggregate exceeding five percent on the
13 24 value of the taxable property within the district, to be
13 25 ascertained by the last state and county tax lists previous to
13 26 the incurring of the indebtedness. Indebtedness within this
13 27 constitutional limit shall not include the indebtedness of any
13 28 other municipal corporation located wholly or partly within
13 29 the boundaries of the district.
13 30 2. Subject only to this debt limitation, a district shall
13 31 have the same powers to issue bonds, including both general
13 32 obligation and revenue bonds, which cities have under the laws
13 33 of this state. In the application of the laws to this
13 34 chapter, the words used in the laws referring to municipal
13 35 corporations or to cities shall be held to include real estate
14 1 improvement districts organized under this chapter; the words
14 2 "council" or "city council" shall be held to include the board
14 3 of trustees of a district; the words "mayor" and "clerk" shall
14 4 be held to include the president and clerk of a board of
14 5 trustees; and like construction shall be given to any other
14 6 words in the laws where required to permit the exercise of the
14 7 powers by real estate improvement districts.
14 8 3. All bonds issued shall be signed by the president of
14 9 the board of trustees and attested by the clerk, with the seal
14 10 of the district, if any, affixed, and interest coupons
14 11 attached to the bonds shall be attested by the signature of
14 12 the clerk.
14 13 4. The proceeds of any bond issue made under this section
14 14 shall be used only for the public improvements specified in
14 15 section 358C.3. Proceeds from the bond issue may also be used
14 16 for the payment of special assessment deficiencies. The bonds
14 17 shall be payable in not more than forty annual installments
14 18 and with interest at a rate not exceeding that permitted by
14 19 chapter 74A, and shall be made payable at the place and be of
14 20 the form as the board of trustees shall by resolution
14 21 designate. A district issuing bonds as authorized in this
14 22 section is granted authority to pledge the future avails of a
14 23 tax levy to the payment of the principal and interest of the
14 24 bonds after the same come due, and the power to impose and
14 25 certify the levy is granted to the trustees of real estate
14 26 improvement districts organized under this chapter.
14 27 Sec. 16. NEW SECTION. 358C.16 SPECIAL ASSESSMENTS.
14 28 1. The board of trustees of a real estate improvement
14 29 district may provide for payment of all or any portion of the
14 30 costs of a public improvement specified in section 358C.3, by
14 31 assessing all, or any portion of the costs, on adjacent
14 32 property according to the benefits derived. For the purposes
14 33 of this chapter, the board of trustees may define "adjacent
14 34 property" as all that included within a designated benefited
14 35 district to be fixed by the board, which may be all of the
15 1 property located within the real estate improvement district
15 2 or any lesser portion of that property. It is not a valid
15 3 objection to a special assessment that the improvement for
15 4 which the assessment is levied is outside the limits of the
15 5 district, but a special assessment shall not be made upon
15 6 property situated outside of the district. Special
15 7 assessments pursuant to this section shall be in proportion to
15 8 the special benefits conferred upon the property, and not in
15 9 excess of the benefits. The value of a property is the
15 10 present fair market value of the property with the proposed
15 11 public improvements completed. Payment of installments of a
15 12 special assessment against property used and assessed as
15 13 agricultural property shall be deferred upon the filing of a
15 14 request by the owner in the same manner and under the same
15 15 procedures as provided in chapter 384 for special assessments
15 16 by cities.
15 17 2. The assessments may be made to extend over a period not
15 18 to exceed fifteen years, payable in as nearly equal annual
15 19 installments as practicable. A majority vote of the board of
15 20 trustees is requisite and sufficient for any action required
15 21 by the board of trustees under this section.
15 22 3. Subject to the limitations otherwise stated in this
15 23 section, a district organized under this chapter has all of
15 24 the powers to specially assess the costs of improvements
15 25 described in this section, including the power to issue
15 26 special assessment bonds, warrants, project notes, or other
15 27 forms of interim financing obligations, which cities have
15 28 under the laws of this state.
15 29 Sec. 17. NEW SECTION. 358C.17 REVENUE BONDS.
15 30 A district incorporated under this chapter may exercise the
15 31 powers granted to counties in sections 331.462 to 331.470, to
15 32 issue revenue bonds for the purposes in section 358C.3,
15 33 subsection 2, paragraphs "b", "c", "g", "h", and "l".
15 34 Sec. 18. NEW SECTION. 358C.18 ADDITIONAL TERRITORY.
15 35 1. The district may be enlarged and additional territory
16 1 annexed to the district by either of the following methods:
16 2 a. By petitions signed by the owners of all the property
16 3 to be annexed to the district. If a petition requesting
16 4 annexation is presented to the trustees and approved by the
16 5 trustees the change in the boundaries to include the
16 6 additional area shall be certified by the clerk of the
16 7 district to the county auditor in which the greater portion of
16 8 the district is located and thereafter the district shall
16 9 include the area thus annexed.
16 10 b. By a petition filed with the clerk of the district,
16 11 signed by persons owning not less than fifty percent of the
16 12 area to be annexed, but not signed by persons owning all the
16 13 area requested to be annexed. On the filing of the petition,
16 14 the trustees of the district shall fix a time and place for a
16 15 hearing on the petition and give notice of the hearing, as
16 16 provided in section 331.305, and by certified mail to the
16 17 record owners of all persons owning land within the territory
16 18 sought to be annexed, not less than ten days prior to the date
16 19 of the hearing, if the address of the owners is known or can
16 20 be ascertained by reasonable diligence by the trustees. At
16 21 the hearing, any person owning property within the area
16 22 proposed to be annexed or any person owning property or
16 23 residing within the district may appear and be heard. If,
16 24 after the hearing, the board of trustees determines that
16 25 annexation of the additional area will be conducive to the
16 26 public health, convenience, and welfare and will not be an
16 27 undue burden on the district, the board of trustees may, by
16 28 resolution, annex the additional area and fix the boundary
16 29 which shall not include more than the area requested in the
16 30 petition. A copy of the resolution shall be filed with the
16 31 county auditor of the county in which the largest portion of
16 32 the district is located and thereafter the area included by
16 33 the resolution shall be a part of the district.
16 34 2. All property, from and after it is annexed to the
16 35 district, shall be subject to all taxes and other burdens
17 1 levied by the district, regardless of when the obligation for
17 2 which the taxes or assessments are levied was incurred.
17 3 Sec. 19. NEW SECTION. 358C.19 ANNEXATION BY A CITY.
17 4 When a city annexes all the territory within the boundaries
17 5 of a real estate improvement district, the district shall
17 6 merge with the city and the city shall succeed to all the
17 7 property and property rights of every kind, contracts, and
17 8 obligations, held by or belonging to the district, and the
17 9 city shall be liable for and recognize, assume, and carry out
17 10 all valid contracts and obligations of the district. All
17 11 taxes, assessments, claims, and demands of every kind due or
17 12 owing to the district shall be paid to and collected by the
17 13 city. Any special assessments which the district was
17 14 authorized to levy, assess, relevy, or reassess, but which
17 15 were not levied, assessed, relevied, or reassessed, at the
17 16 time of the merger, for improvements made by the district or
17 17 in the process of construction or contracted for may be
17 18 levied, assessed, relevied, or reassessed by the annexing city
17 19 to the same extent as the district may have levied or assessed
17 20 but for the merger. However, this section does not authorize
17 21 the annexing city to revoke any resolution, order, or finding
17 22 made by the district in regard to special benefits or increase
17 23 any assessments made by the district, but the city shall be
17 24 bound by all findings or orders and assessments to the same
17 25 extent as the district would be bound. Also, a district shall
17 26 not levy any special assessments after the effective date of
17 27 the annexation.
17 28 Sec. 20. NEW SECTION. 358C.20 EFFECTIVE DATE OF MERGER.
17 29 The merger shall be effective thirty days after the
17 30 effective date of the ordinance annexing the territory within
17 31 the district. However, if the validity of the ordinance
17 32 annexing the territory is challenged by a court proceeding,
17 33 the effective date of the merger shall be thirty days after
17 34 the final determination of the validity of the ordinance. The
17 35 trustees of a district shall continue in possession and
18 1 conduct the affairs of the district until the effective date
18 2 of the merger, but shall not during the period levy any
18 3 special assessments after the effective date of annexation.
18 4 Sec. 21. NEW SECTION. 358C.21 PARTIAL ANNEXATION &endash;
18 5 DIVISION AGREEMENT.
18 6 If only a part of the territory within a district is
18 7 annexed by a city, the district and the city may agree between
18 8 themselves as to the equitable division of the assets,
18 9 liabilities, maintenance, or other obligations of the district
18 10 for a change in the boundaries of the district so as to
18 11 exclude the portion annexed by the city or may agree upon a
18 12 merger of the district with the city. If a merger is agreed
18 13 upon, the city shall have all the rights, privileges, duties,
18 14 and obligations as provided in this chapter when the city
18 15 annexes the entire territory within the district, and the
18 16 trustees shall be relieved of all further duties and
18 17 liabilities and their bonds exonerated. An agreement between
18 18 the district and the city shall not be effective until
18 19 submitted to and approved by the district court of the county
18 20 in which the major portion of the district is located. An
18 21 agreement shall not be approved which may prejudice the rights
18 22 of any bondholder or creditor of the district. The district
18 23 court may direct amendments to the agreement before approving
18 24 the agreement. If the district and city do not agree upon the
18 25 proper adjustment of all matters growing out of the annexation
18 26 of a part of the territory located within the district, either
18 27 the district or the annexing city may apply to the district
18 28 court of the county where the major portion of the district is
18 29 located for an adjustment of all matters growing out of or in
18 30 any way connected with the annexation of the territory, and
18 31 after a hearing the district court may enter an order or
18 32 decree fixing the rights, duties, and obligations of the
18 33 parties. However, in every case the decree or order shall
18 34 require a change of the district boundaries so as to exclude
18 35 from the district that portion of the territory of the
19 1 district which has been annexed. The change of boundaries
19 2 shall become effective on the date of entry of the decree.
19 3 Only the district and the city shall be necessary parties to
19 4 the action. The decree when entered shall be binding on both
19 5 parties the same as though the parties had voluntarily agreed
19 6 thereto. This section does not authorize any district to levy
19 7 any special assessments within the annexed area after the
19 8 effective date of annexation.
19 9 Sec. 22. NEW SECTION. 358C.22 DISSOLUTION OF DISTRICT.
19 10 When a majority of the board of trustees of a district
19 11 desire that the district be wholly dissolved, the trustees
19 12 shall first propose a resolution declaring the advisability of
19 13 the dissolution and setting out the terms and conditions of
19 14 the dissolution, and also setting out the time and place when
19 15 the board of trustees shall meet to consider the adoption of
19 16 the resolution. Notice of the time and place when the
19 17 resolution shall be set for consideration shall be published
19 18 as provided in section 331.305, which publication shall
19 19 contain the entire wording of the proposed resolution. If any
19 20 part of the district lies within the area of the jurisdiction
19 21 of a city, then the trustees shall mail a copy of the proposed
19 22 resolution to the city on the date of first publication of the
19 23 resolution. At the hearing the owners of property within the
19 24 district, or a city if any part of the district lies within
19 25 the city, may appear and make objections to the proposed
19 26 resolution. If the owners representing a majority of the area
19 27 of real estate within the district fail to sign and present to
19 28 the board, on or prior to the hearing date, a written petition
19 29 opposing the resolution, a majority of the board of trustees
19 30 may pass the resolution and adopt the proposed dissolution.
19 31 However, the resolution shall not be adopted if the district
19 32 is obligated on any outstanding bonds, warrants, or other
19 33 debts or obligations unless the holders of the bonds,
19 34 warrants, or other debts or obligations all sign written
19 35 consents to the dissolution prior to the adoption of the
20 1 resolution of dissolution. If the petition opposing the
20 2 resolution is signed by property owners representing a
20 3 majority of the area of real estate within the district and
20 4 presented to the board of trustees on or prior to the hearing
20 5 date, the board of trustees shall not adopt the resolution.
20 6 After the board of trustees has adopted the resolution of
20 7 dissolution, the clerk of the district shall prepare and file
20 8 a certified copy of the resolution of dissolution in the
20 9 office of the county auditor where the original petition was
20 10 filed.
20 11 Sec. 23. NEW SECTION. 358C.23 DETACHMENT OF LAND.
20 12 1. When a majority of the board of trustees of a district
20 13 desires that any property within the district be detached from
20 14 the district, the trustees shall first propose a resolution
20 15 declaring the advisability of the detachment and setting out
20 16 the terms and conditions of the detachment and also setting
20 17 out the time and place when the board of trustees will meet to
20 18 consider the adoption of the resolution. Notice of the time
20 19 and place when the resolution is set for consideration shall
20 20 be published as provided in section 331.305, which publication
20 21 shall contain the entire wording of the proposed resolution.
20 22 If any part of the district lies within a city, then the
20 23 trustees shall mail a copy of the proposed resolution to the
20 24 city on the date of first publication of the resolution. At
20 25 the hearing the owners of property within the district, or any
20 26 city, may appear and make objections to the proposed
20 27 resolution. If the owners representing a majority of the area
20 28 of real estate within the district fail to sign and present to
20 29 the board of trustees, on or prior to the hearing date, a
20 30 written petition opposing the resolution, a majority of the
20 31 board of trustees may pass the resolution and adopt the
20 32 proposed detachment, except that the resolution shall not be
20 33 adopted if the district is indebted on any outstanding bonds
20 34 or warrants of the district unless the holders of the bonds
20 35 and warrants all sign written consents to the detachment prior
21 1 to the adoption of the resolution of detachment. If the
21 2 petition opposing the resolution is signed by property owners
21 3 representing a majority of the area of real estate within the
21 4 district and presented to the board of trustees on or prior to
21 5 the hearing date, the board of trustees shall not adopt the
21 6 resolution. After the board of trustees has adopted the
21 7 resolution of detachment, the clerk of the district shall
21 8 prepare and file a certified copy of the resolution of
21 9 detachment in the office of the county auditor where the
21 10 original petition was filed, and the area detached shall
21 11 become excluded and detached from the boundaries of the
21 12 district.
21 13 2. The owner of a discrete tract of land which is part of
21 14 a district but which is not connected to the main area of the
21 15 district may petition the board of trustees of the district to
21 16 have the property detached from the district. Following
21 17 receipt of the petition, the board of trustees shall propose a
21 18 resolution declaring the advisability of the detachment and
21 19 setting out the terms and conditions of the detachment and
21 20 setting out the time and place when the board of trustees will
21 21 meet to consider the adoption of the resolution. Notice of
21 22 the time and place for the consideration shall be published as
21 23 provided in subsection 1. If any part of the district lies in
21 24 whole or in part within a city, the board of trustees shall
21 25 mail a copy of the proposed resolution to the municipality
21 26 within five days after the date of first publication of the
21 27 resolution. At the hearing for consideration of the
21 28 resolution, the board of trustees shall determine if the tract
21 29 of land proposed for detachment has all of the following
21 30 characteristics:
21 31 a. Has an area of twenty-five acres or more.
21 32 b. Is wholly detached from the main area of the district
21 33 and separated from the district by a distance of at least one
21 34 thousand feet at the nearest points.
21 35 c. Is undeveloped and predominantly devoted to
22 1 agricultural uses.
22 2 d. Has no improvements placed upon it by the district and
22 3 receives no current services from the district.
22 4 3. If the board of trustees by majority vote determines
22 5 that the tract in question meets all of the conditions
22 6 provided in subsection 2, paragraphs "a" through "d", the
22 7 resolution shall be adopted, except that the resolution shall
22 8 not be adopted if the district is indebted on any outstanding
22 9 bonds or warrants of the district unless the holders of the
22 10 bonds and warrants all sign written consents to the
22 11 detachment. After the board of trustees has adopted the
22 12 resolution of detachment, the clerk of the district shall
22 13 prepare and file a certified copy of the resolution of
22 14 detachment in the office of the county auditor where the
22 15 original petition was filed and the area detached shall become
22 16 excluded and detached from the boundaries of the district.
22 17 EXPLANATION
22 18 This bill provides for the creation of real estate
22 19 improvement districts which are given the authority to
22 20 construct and install many types of infrastructure to
22 21 facilitate the development or redevelopment of real estate.
22 22 The types of infrastructure include underground gas, water,
22 23 heating, sewer and electrical connections; sanitary, storm,
22 24 and combined sewers; waterworks, water mains, and extensions;
22 25 emergency warning systems; sidewalk and pedestrian underpasses
22 26 or overpasses; drainage conduits, dikes, and levees; public
22 27 waterways, docks, and wharfs; public parks, playgrounds, and
22 28 recreational facilities; street grading and surfacing; drives
22 29 and driveway approaches; street lighting, sewage treatment
22 30 plants, and pumping stations; traffic control facilities; and
22 31 public streets, roads, and alleys.
22 32 A real estate improvement district is created by the
22 33 petition of a majority of the owners having an interest in
22 34 real property within a proposed district to the board of
22 35 supervisors of the county in which the largest part of the
23 1 proposed district is located. The proposed district may
23 2 include contiguous and noncontiguous parcels of land and is
23 3 restricted to land within the boundaries of a city, on land
23 4 within two miles of a city, or both. The petition shall
23 5 include the names of the petitioners, landowners not included
23 6 on the petition whose land will benefit from the public
23 7 improvements, description of all parcels included, the public
23 8 improvements to be constructed or installed, and the names of
23 9 five or more landowners who will serve as trustees of the
23 10 district. The organizational procedures are similar to those
23 11 followed to organize a sanitary district pursuant to chapter
23 12 358.
23 13 If a majority of voters of a proposed district approve of
23 14 its creation, the board of trustees may proceed to construct
23 15 or install the public improvements authorized by the district
23 16 voters. The board has the authority to levy annually 54 cents
23 17 per $1,000 of assessed valuation for administrative purposes,
23 18 to adopt by ordinance, rates, charges, or rentals for
23 19 utilities such as sewer service, issue general obligation
23 20 bonds and revenue bonds and impose taxes and charges to repay
23 21 the interest and principal on the bonds, and provide for
23 22 special assessment for certain improvements. The district may
23 23 acquire and own land, but the amount of land shall not exceed
23 24 10 acres unless it is dedicated to a public purpose within
23 25 three years. The district may exercise the power of eminent
23 26 domain if necessary. Bond issues shall not exceed 5 percent
23 27 of the value of the taxable property and special assessments
23 28 are limited to the value of the property with the proposed
23 29 public improvement completed.
23 30 The bill also provides procedures for the dissolution of a
23 31 district, the annexation of all or part of a district, merger,
23 32 and the attachment or detachment of land to or from a
23 33 district.
23 34 LSB 1349SS 76
23 35 tj/jw/5
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