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PAG LIN
1 1 SENATE FILE 544
1 2
1 3 AN ACT
1 4 RELATING TO THE DESIGNATION OF UNINCORPORATED AREAS OF A
1 5 COUNTY AS RURAL IMPROVEMENT ZONES, PROVIDING FOR IMPROVE-
1 6 MENT PROJECTS IN THE ZONES, AUTHORIZING THE ISSUANCE OF
1 7 CERTIFICATES OF INDEBTEDNESS, AND PAYMENT OF THE INDEBTED-
1 8 NESS BY TAX INCREMENT FINANCING AND AN ANNUAL STANDBY
1 9 TAX BY SUCH ZONES.
1 10
1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 12
1 13 Section 1. NEW SECTION. 357H.1 RURAL IMPROVEMENT ZONES.
1 14 The board of supervisors of a county, with less than eleven
1 15 thousand five hundred residents but more than ten thousand
1 16 five hundred residents, based upon the 1990 certified federal
1 17 census, and with a private lake development, shall designate
1 18 an area surrounding the lake, if it is an unincorporated area
1 19 of the county, a rural improvement zone upon receipt of a
1 20 petition pursuant to section 357H.2, and upon the board's
1 21 determination that the area is in need of improvements. For
1 22 purposes of this chapter, "improvements" means dredging,
1 23 installation of erosion control measures, land acquisition,
1 24 and related improvements.
1 25 For purposes of this chapter, "board" means the board of
1 26 supervisors of the county.
1 27 Sec. 2. NEW SECTION. 357H.2 PETITION FOR PUBLIC HEARING.
1 28 1. The board shall, on the petition of twenty-five percent
1 29 of the residents of a proposed rural improvement zone, if the
1 30 assessed valuation of the property owned by the petitioners
1 31 represents at least twenty-five percent of the total assessed
1 32 value of the proposed zone, hold a public hearing concerning
1 33 the establishment of a proposed zone. The petition shall
1 34 include a statement containing the following information:
1 35 a. The need for the proposed zone.
2 1 b. A description of the boundaries of the proposed zone.
2 2 c. The approximate number of families in the proposed
2 3 zone.
2 4 2. The board may require the petitioners to post a bond
2 5 conditioned upon the payment of all costs and expenses
2 6 incurred in the proceedings if the zone is not established.
2 7 Sec. 3. NEW SECTION. 357H.3 TIME OF PUBLIC HEARING.
2 8 The public hearing required in section 357H.2 shall be held
2 9 within thirty days of the presentation of the petition.
2 10 Notice of hearing shall be given by publication as provided in
2 11 section 331.305.
2 12 Sec. 4. NEW SECTION. 357H.4 HEARING ON PETITION –
2 13 ACTION BY BOARD.
2 14 At the public hearing required in section 357H.3, the board
2 15 may consider the boundaries of a proposed rural improvement
2 16 zone, whether the boundaries shall be as described in the
2 17 petition or otherwise, and for that purpose may amend the
2 18 petition and change the boundaries of the proposed zone as
2 19 stated in the petition. The board may adjust the boundaries
2 20 of a proposed zone as needed to exclude land that has no
2 21 reasonable likelihood of benefit from inclusion in a rural
2 22 improvement zone. However, the boundaries of a proposed zone
2 23 shall not be changed to incorporate property which is not
2 24 included in the original petition.
2 25 Within ten days after the hearing, the board shall
2 26 establish the rural improvement zone by resolution or disallow
2 27 the petition. However, the zone shall not include any area
2 28 which is part of an urban renewal area under chapter 403.
2 29 Sec. 5. NEW SECTION. 357H.5 ELECTION OF CANDIDATES FOR
2 30 TRUSTEES.
2 31 When a preliminary plat has been approved by the board, an
2 32 election shall be held within the rural improvement zone
2 33 within sixty days to choose candidates for the offices of
2 34 trustees of the zone. Notice of the election shall be given
2 35 as provided in section 357H.3.
3 1 Sec. 6. NEW SECTION. 357H.6 TRUSTEES – TERM AND
3 2 QUALIFICATION.
3 3 The election of trustees of a rural improvement zone shall
3 4 take place at a special election on ballots which shall not
3 5 reflect a nominee's political affiliation. Nomination shall
3 6 be made by petition in accordance with chapter 45. The
3 7 petition form shall be furnished by the county commissioner of
3 8 elections, signed by eligible electors of the rural
3 9 improvement zone equal in number to one percent of the vote
3 10 cast within the zone for governor in the last previous general
3 11 election, and shall be filed with the county commissioner of
3 12 elections. A plurality shall be sufficient to elect the five
3 13 trustees of the rural improvement zone, and no primary
3 14 election for that office shall be held. At the original
3 15 election, two trustees shall be elected for one year, two for
3 16 two years, and one for three years. The terms of the
3 17 succeeding trustees are for three years. The trustees must be
3 18 residents of the zone. Vacancies on the board shall be filled
3 19 by appointment by the remaining trustees.
3 20 Sec. 7. NEW SECTION. 357H.7 BOARD OF TRUSTEES – POWER.
3 21 The trustees of a rural improvement zone elected pursuant
3 22 to section 357H.6 shall constitute the board of trustees of
3 23 the zone and shall manage and control the affairs, property,
3 24 and facilities of the zone. The board of trustees shall elect
3 25 a president, a clerk, and a treasurer from its membership.
3 26 The trustees may authorize construction, reconstruction, or
3 27 repair of improvements within the zone following procedures
3 28 set out in section 331.341. For these purposes, the trustees
3 29 may purchase material, employ personnel, acquire real estate
3 30 and interests in real estate, and perform all other acts
3 31 necessary to properly maintain and operate the zone. The
3 32 trustees are allowed necessary expenses in the discharge of
3 33 their duties, but they shall not receive a salary.
3 34 Sec. 8. NEW SECTION. 357H.8 CERTIFICATES.
3 35 To provide funds for the payment of the costs of
4 1 improvement projects, the board of trustees may borrow money
4 2 and issue and sell certificates payable from a sufficient
4 3 portion of the future receipts of tax revenue authorized
4 4 pursuant to section 357H.9 and the standby tax in subsection 4
4 5 of this section. The receipts shall be pledged to the payment
4 6 of principal of and interest on the certificates.
4 7 1. Certificates may be sold at public sale or at private
4 8 sale at par, premium, or discount at the discretion of the
4 9 board of trustees. Chapter 75 does not apply to the issuance
4 10 of these certificates.
4 11 2. Certificates may be issued with respect to a single
4 12 improvement project or multiple projects and may contain terms
4 13 or conditions as the board of trustees may provide by
4 14 resolution authorizing the issuance of the certificates.
4 15 However, certificates shall not be issued after January 1,
4 16 2007, except to refund other certificates as provided in
4 17 subsection 3.
4 18 3. Certificates issued to refund other certificates may be
4 19 sold at public sale or at private sale as provided in this
4 20 section with the proceeds from the sale to be used for the
4 21 payment of the certificates being refunded. The refunding
4 22 certificates may be exchanged in payment and discharge of the
4 23 certificates being refunded, in installments at different
4 24 times, or an entire issue or series at one time. Refunding
4 25 certificates may be sold or exchanged at any time on, before,
4 26 or after the maturity of the outstanding certificates to be
4 27 refunded, may be issued for the purpose of refunding a like,
4 28 greater, or lesser principal amount of certificates, and may
4 29 bear a rate of interest higher or lower than, or equivalent to
4 30 the rate of interest on certificates being renewed or
4 31 refunded.
4 32 4. To further secure the payment of the certificates, the
4 33 board of trustees shall, by resolution, provide for the
4 34 assessment of an annual levy of a standby tax upon all taxable
4 35 property within the rural improvement zone. A copy of the
5 1 resolution shall be sent to the county auditor. The revenues
5 2 from the standby tax shall be deposited in a special fund and
5 3 shall be expended only for the payment of principal of and
5 4 interest on the certificates issued as provided in this
5 5 section, when the receipt of tax revenues pursuant to section
5 6 357H.9 is insufficient. If payments are necessary and made
5 7 from the special fund, the amount of the payments shall be
5 8 promptly repaid into the special fund from the first available
5 9 payments received which are not required for the payment of
5 10 principal of or interest on certificates due. No reserves may
5 11 be built up in the special fund in anticipation of a projected
5 12 default. The board of trustees shall adjust the annual
5 13 standby tax levy for each year to reflect the amount of
5 14 revenues in the special fund and the amount of principal and
5 15 interest which is due in that year.
5 16 5. Before certificates are issued, the board of trustees
5 17 shall publish a notice of its intention to issue the
5 18 certificates, stating the amount, the purpose, and the
5 19 improvement project or projects for which the certificates are
5 20 to be issued. A person may, within fifteen days after the
5 21 publication of the notice, appeal the decision of the board of
5 22 trustees in proposing to issue the certificates to the
5 23 district court in the county in which the rural improvement
5 24 zone exists. The action of the board of trustees in
5 25 determining to issue the certificates is final and conclusive
5 26 unless the district court finds that the board of trustees has
5 27 exceeded its legal authority. An action shall not be brought
5 28 which questions the legality of the certificates, the power of
5 29 the board of trustees to issue the certificates, the
5 30 effectiveness of any proceedings relating to the authorization
5 31 of the project, or the authorization and issuance of the
5 32 certificates after fifteen days from the publication of the
5 33 notice of intention to issue.
5 34 6. The board of trustees shall determine if revenues are
5 35 sufficient to secure the faithful performance of obligations.
6 1 Sec. 9. NEW SECTION. 357H.9 INCREMENTAL PROPERTY TAXES.
6 2 The board of trustees shall provide by resolution that
6 3 taxes levied on the taxable property in a rural improvement
6 4 zone each year by or for the benefit of the state, city,
6 5 county, school district, or other taxing district after the
6 6 effective date of the resolution shall be divided as provided
6 7 in section 403.19, subsections 1 and 2, in the same manner as
6 8 if the taxable property in the rural improvement zone was
6 9 taxable property in an urban renewal area and the resolution
6 10 was an ordinance within the meaning of those subsections. The
6 11 taxes received by the board of trustees shall be allocated to,
6 12 and when collected be paid into, a special fund and may be
6 13 irrevocably pledged by the trustees to pay the principal of
6 14 and interest on the certificates issued by the trustees to
6 15 finance or refinance, in whole or in part, an improvement
6 16 project. As used in this section, "taxes" includes, but is
6 17 not limited to, all levies on an ad valorem basis upon land or
6 18 real property located in the rural improvement zone.
6 19 Sec. 10. NEW SECTION. 357H.10 DISSOLUTION OF ZONE.
6 20 The rural improvement zone shall be dissolved upon the
6 21 adoption of a resolution of the board of trustees which
6 22 specifies that all improvements have been made in the zone and
6 23 all indebtedness has been paid. Upon dissolution of the zone,
6 24 all assets shall be deeded to a nonprofit corporation whose
6 25 members are property owners of the improvement zone.
6 26
6 27
6 28
6 29 MARY E. KRAMER
6 30 President of the Senate
6 31
6 32
6 33
6 34 RON J. CORBETT
6 35 Speaker of the House
7 1
7 2 I hereby certify that this bill originated in the Senate and
7 3 is known as Senate File 544, Seventy-seventh General Assembly.
7 4
7 5
7 6
7 7 MARY PAT GUNDERSON
7 8 Secretary of the Senate
7 9 Approved , 1997
7 10
7 11
7 12
7 13 TERRY E. BRANSTAD
7 14 Governor
Text: SF00543 Text: SF00545 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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