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1 1 Section 1. NEW SECTION. 357H.1 RURAL IMPROVEMENT ZONES.
1 2 The board of supervisors of a county shall designate an
1 3 unincorporated area of the county a rural improvement zone
1 4 upon receipt of a petition pursuant to section 357H.2 and upon
1 5 the board's determination that the area is in need of
1 6 improvements. For purposes of this chapter, "improvements"
1 7 means dredging, sewer installation, water quality systems,
1 8 land acquisition, installation, and related improvements.
1 9 For purposes of this chapter, "board" means the board of
1 10 supervisors of the county.
1 11 Sec. 2. NEW SECTION. 357H.2 PETITION FOR PUBLIC HEARING.
1 12 1. The board shall, on the petition of twenty-five percent
1 13 of the residents of a proposed rural improvement zone, if the
1 14 assessed valuation of the property owned by the petitioners
1 15 represents at least twenty-five percent of the total assessed
1 16 value of the proposed zone, hold a public hearing concerning
1 17 the establishment of a proposed zone. The petition shall
1 18 include a statement containing the following information:
1 19 a. The need for the proposed zone.
1 20 b. A description of the boundaries of the proposed zone.
1 21 c. The approximate number of families in the proposed
1 22 zone.
1 23 2. The board may require the petitioners to post a bond
1 24 conditioned upon the payment of all costs and expenses
1 25 incurred in the proceedings if the zone is not established.
1 26 Sec. 3. NEW SECTION. 357H.3 TIME OF PUBLIC HEARING.
1 27 The public hearing required in section 357H.2 shall be held
1 28 within thirty days of the presentation of the petition.
1 29 Notice of hearing shall be given by publication as provided in
1 30 section 331.305.
1 31 Sec. 4. NEW SECTION. 357H.4 HEARING ON PETITION –
1 32 ACTION BY BOARD.
1 33 At the public hearing required in section 357H.3, the board
1 34 may consider the boundaries of a proposed rural improvement
1 35 zone, whether the boundaries shall be as described in the
2 1 petition or otherwise, and for that purpose may amend the
2 2 petition and change the boundaries of the proposed zone as
2 3 stated in the petition. The board may adjust the boundaries
2 4 of a proposed zone as needed to exclude land that has no
2 5 reasonable likelihood of benefit from inclusion in a rural
2 6 improvement zone. However, the boundaries of a proposed zone
2 7 shall not be changed to incorporate property which is not
2 8 included in the original petition.
2 9 Within ten days after the hearing, the board shall
2 10 establish the rural improvement zone by resolution or disallow
2 11 the petition. However, the zone shall not include any area
2 12 which is part of an urban renewal area under chapter 403.
2 13 Sec. 5. NEW SECTION. 357H.5 ELECTION OF CANDIDATES FOR
2 14 TRUSTEES.
2 15 When a preliminary plat has been approved by the board, an
2 16 election shall be held within the rural improvement zone
2 17 within sixty days to choose candidates for the offices of
2 18 trustees of the zone. Notice of the election shall be given
2 19 as provided in section 357H.3.
2 20 Sec. 6. NEW SECTION. 357H.6 TRUSTEES – TERM AND
2 21 QUALIFICATION.
2 22 The election of trustees of a rural improvement zone shall
2 23 take place at a special election on ballots which shall not
2 24 reflect a nominee's political affiliation. Nomination shall
2 25 be made by petition in accordance with chapter 45. The
2 26 petition form shall be furnished by the county commissioner of
2 27 elections, signed by eligible electors of the rural
2 28 improvement zone equal in number to one percent of the vote
2 29 cast within the zone for governor in the last previous general
2 30 election, and shall be filed with the county commissioner of
2 31 elections. A plurality shall be sufficient to elect the three
2 32 trustees of the rural improvement zone, and no primary
2 33 election for that office shall be held. At the original
2 34 election, one trustee shall be elected for one year, one for
2 35 two years, and one for three years. The terms of the
3 1 succeeding trustees are for three years. The trustees must be
3 2 residents of the zone. Vacancies on the board shall be filled
3 3 by appointment by the remaining trustees.
3 4 Sec. 7. NEW SECTION. 357H.7 BOARD OF TRUSTEES – POWER.
3 5 The trustees of a rural improvement zone elected pursuant
3 6 to section 357H.6 shall constitute the board of trustees of
3 7 the zone and shall manage and control the affairs, property,
3 8 and facilities of the zone. The board of trustees shall elect
3 9 a president, a clerk, and a treasurer from its membership.
3 10 The trustees may authorize construction, reconstruction, or
3 11 repair of improvements within the zone following procedures
3 12 set out in section 331.341. For these purposes, the trustees
3 13 may purchase material, employ personnel, acquire real estate
3 14 and interests in real estate, and perform all other acts
3 15 necessary to properly maintain and operate the zone. The
3 16 trustees are allowed necessary expenses in the discharge of
3 17 their duties, but they shall not receive a salary.
3 18 Sec. 8. NEW SECTION. 357H.8 CERTIFICATES.
3 19 To provide funds for the payment of the costs of
3 20 improvement projects, the board of trustees may borrow money
3 21 and issue and sell certificates payable from a sufficient
3 22 portion of the future receipts of tax revenue authorized
3 23 pursuant to section 357H.9 and the standby tax in subsection 4
3 24 of this section. The receipts shall be pledged to the payment
3 25 of principal of and interest on the certificates.
3 26 1. Certificates may be sold at public sale or at private
3 27 sale at par, premium, or discount at the discretion of the
3 28 board of trustees. Chapter 75 does not apply to the issuance
3 29 of these certificates.
3 30 2. Certificates may be issued with respect to a single
3 31 improvement project or multiple projects and may contain terms
3 32 or conditions as the board of trustees may provide by
3 33 resolution authorizing the issuance of the certificates.
3 34 3. Certificates issued to refund other certificates may be
3 35 sold at public sale or at private sale as provided in this
4 1 section with the proceeds from the sale to be used for the
4 2 payment of the certificates being refunded. The refunding
4 3 certificates may be exchanged in payment and discharge of the
4 4 certificates being refunded, in installments at different
4 5 times, or an entire issue or series at one time. Refunding
4 6 certificates may be sold or exchanged at any time on, before,
4 7 or after the maturity of the outstanding certificates to be
4 8 refunded, may be issued for the purpose of refunding a like,
4 9 greater, or lesser principal amount of certificates, and may
4 10 bear a rate of interest higher or lower than, or equivalent to
4 11 the rate of interest on certificates being renewed or
4 12 refunded.
4 13 4. To further secure the payment of the certificates, the
4 14 board of trustees shall, by resolution, provide for the
4 15 assessment of an annual levy of a standby tax upon all taxable
4 16 property within the rural improvement zone. A copy of the
4 17 resolution shall be sent to the county auditor. The revenues
4 18 from the standby tax shall be deposited in a special fund and
4 19 shall be expended only for the payment of principal of and
4 20 interest on the certificates issued as provided in this
4 21 section, when the receipt of tax revenues pursuant to section
4 22 357H.9 is insufficient. If payments are necessary and made
4 23 from the special fund, the amount of the payments shall be
4 24 promptly repaid into the special fund from the first available
4 25 payments received which are not required for the payment of
4 26 principal of or interest on certificates due. No reserves may
4 27 be built up in the special fund in anticipation of a projected
4 28 default. The board of trustees shall adjust the annual
4 29 standby tax levy for each year to reflect the amount of
4 30 revenues in the special fund and the amount of principal and
4 31 interest which is due in that year.
4 32 5. Before certificates are issued, the board of trustees
4 33 shall publish a notice of its intention to issue the
4 34 certificates, stating the amount, the purpose, and the
4 35 improvement project or projects for which the certificates are
5 1 to be issued. A person may, within fifteen days after the
5 2 publication of the notice, appeal the decision of the board of
5 3 trustees in proposing to issue the certificates to the
5 4 district court in the county in which the rural improvement
5 5 zone exists. The action of the board of trustees in
5 6 determining to issue the certificates is final and conclusive
5 7 unless the district court finds that the board of trustees has
5 8 exceeded its legal authority. An action shall not be brought
5 9 which questions the legality of the certificates, the power of
5 10 the board of trustees to issue the certificates, the
5 11 effectiveness of any proceedings relating to the authorization
5 12 of the project, or the authorization and issuance of the
5 13 certificates after fifteen days from the publication of the
5 14 notice of intention to issue.
5 15 6. The board of trustees shall determine if revenues are
5 16 sufficient to secure the faithful performance of obligations.
5 17 Sec. 9. NEW SECTION. 357H.9 INCREMENTAL PROPERTY TAXES.
5 18 The board of trustees shall provide by resolution that
5 19 taxes levied on the taxable property in a rural improvement
5 20 zone each year by or for the benefit of the state, city,
5 21 county, school district, or other taxing district after the
5 22 effective date of the resolution shall be divided as provided
5 23 in section 403.19, subsections 1 and 2, in the same manner as
5 24 if the taxable property in the rural improvement zone was
5 25 taxable property in an urban renewal area and the resolution
5 26 was an ordinance within the meaning of those subsections. The
5 27 taxes received by the board of trustees shall be allocated to,
5 28 and when collected be paid into, a special fund and may be
5 29 irrevocably pledged by the trustees to pay the principal of
5 30 and interest on the certificates issued by the trustees to
5 31 finance or refinance, in whole or in part, an improvement
5 32 project. As used in this section, "taxes" includes, but is
5 33 not limited to, all levies on an ad valorem basis upon land or
5 34 real property located in the rural improvement zone.
5 35 For the purposes of dividing taxes under this section in
6 1 order to finance an improvement project, the board of trustees
6 2 may declare that the applicable assessment roll for purposes
6 3 of paragraph "a" of section 403.19, subsection 1, shall be the
6 4 assessment roll as of January 1, 1995. If this declaration is
6 5 made for an improvement project, the division of revenue under
6 6 section 403.19 for the improvement project shall be limited to
6 7 tax collections for five fiscal years beginning with the first
6 8 fiscal year after the year in which the board of trustees
6 9 first certifies to the county auditor the amount of any loans,
6 10 advances, indebtedness, or bonds which qualify for payment
6 11 from the division of the revenue in connection with the
6 12 improvement project.
6 13 Sec. 10. NEW SECTION. 357H.10 DISSOLUTION OF ZONE.
6 14 The rural improvement zone shall be dissolved upon the
6 15 adoption of a resolution of the board of trustees which
6 16 specifies that all improvements have been made in the zone and
6 17 all indebtedness has been paid. Upon dissolution of the zone,
6 18 all assets shall be returned to the property owners. Any
6 19 improvements and real property purchased shall be transferred
6 20 by the trustees to the property owners. Any excess tax
6 21 revenues shall be redistributed to the taxing districts by
6 22 which the taxes were imposed, if raised pursuant to section
6 23 357H.9. If the tax revenues were raised pursuant to section
6 24 357H.8, subsection 4, the revenues shall be applied as a tax
6 25 credit for property owners of the zone.
6 26 EXPLANATION
6 27 The bill allows a county to designate an unincorporated
6 28 area of the county as a rural improvement zone upon petition
6 29 of 25 percent of the residents who represent at least 25
6 30 percent of the taxable value of property to be located in the
6 31 proposed zone and upon determination of a need for
6 32 improvements in the proposed zone. Improvements include
6 33 dredging, sewer installation, water quality systems, land
6 34 acquisition, installations, and related improvements. The
6 35 bill provides that a hearing shall be held on the designation
7 1 of the proposed area as a rural improvement zone. Upon
7 2 approval by the county of the area as a rural improvement
7 3 zone, an election shall be held to choose a board of trustees
7 4 who have the authority to act in the zone. The trustees will
7 5 determine the improvement projects and are authorized to issue
7 6 certificates of indebtedness to pay for the projects' costs.
7 7 The principal and interest of the certificates will be paid in
7 8 the same manner as projects are paid for in tax increment
7 9 financing districts, i.e., the city, county, or school
7 10 district taxes imposed on the increase in taxable valuations
7 11 in the zone will be paid to the board of trustees. However,
7 12 the trustees have an option under the tax increment financing
7 13 provision of using valuations established as of January 1,
7 14 1995, for the tax base. This option could only be done for
7 15 five years. The board of trustees also has an annual standby
7 16 tax that it may levy if needed. A rural improvement zone
7 17 shall cease upon passage of a resolution by the trustees that
7 18 all improvements needed have been made and all indebtedness
7 19 has been paid.
7 20 LSB 2753XC 77
7 21 mg/sc/14
Text: SSB00258 Text: SSB00260 Text: SSB00200 - SSB00299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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