Iowa General Assembly Banner

Text: SSB00258                          Text: SSB00260
Text: SSB00200 - SSB00299               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

Senate Study Bill 259

Bill Text

  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 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 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 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 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 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

Return To Home Iowa General Assembly

index Search: Senate Bills and Amendments (77th General Assembly)

© 1997 Cornell College and League of Women Voters of Iowa

Comments about this site or page? Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Fri Mar 28 03:42:52 CST 1997
URL: /DOCS/GA/77GA/Legislation/SSB/00200/SSB00259/970327.html