Senate Study Bill 1273 SENATE FILE BY (PROPOSED COMMITTEE ON ENVIRONMENT AND ENERGY INDEPENDENCE BILL BY CHAIRPERSON BLACK) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act authorizing cities to establish storm water drainage 2 system utility districts for purposes of special assessments. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2084SC 83 5 md/sc/8 PAG LIN 1 1 Section 1. Section 384.38, subsection 3, Code 2009, is 1 2 amended to read as follows: 1 3 3. A city may establish, by ordinance or by resolution 1 4 adopted as an ordinance after twenty days' notice published in 1 5 accordance with section 362.3, and a public hearing, one or 1 6 more districts and schedules of fees for the connection of 1 7 property to the city sewer utility,orwater utility, or storm 1 8 water drainage system utility. If the governing body directs 1 9 that notice be made by mail, the notice shall be as required 1 10 in section 384.50. Each person whose property will be served 1 11 by connecting to the city sewer utility,orwater utility, or 1 12 storm water drainage system utility shall pay a connection fee 1 13 to the city. The ordinance shall be certified by the city and 1 14 recorded in the office of the county recorder of the county in 1 15 which a district is located. The connection fees are due and 1 16 payable when a utility connection application is filed with 1 17 the city. A connection fee may include the equitable cost of 1 18 extending the utility to the properties, including reasonable 1 19 interest from the date of construction to the date of payment. 1 20 All fees collected under this subsection shall be paid to the 1 21 city treasurer. The moneys collected as fees shall only be 1 22 used for the purposes of operating the utility, or to pay debt 1 23 service on obligations issued to finance improvements or 1 24 extensions to the utility. 1 25 This subsection shall not apply when a city annexation plan 1 26 includes annexation of an area adjoining the city and a 1 27 petition has not been presented as provided in section 384.41 1 28 for a city sewer utility,orwater utility, or storm water 1 29 drainage system utility connection. Until annexation takes 1 30 place, or the annexation plan is abandoned, the state mandate 1 31 contained in section 455B.172, subsections 3, 4, and 5, shall 1 32 not apply unless the individual property owner voluntarily 1 33 pays the connection fee and requests to be connected to the 1 34 city sewer utility,orwater utility, or storm water drainage 1 35 system utility. 2 1 EXPLANATION 2 2 Current law provides cities the authority to establish, by 2 3 ordinance after notice and a public hearing, one or more 2 4 districts and schedules of fees for the connection of property 2 5 to the city sewer or water utility. Each person whose 2 6 property will be served by connecting to the city sewer or 2 7 water utility is required to pay a connection fee to the city 2 8 when the application for connection is filed. A connection 2 9 fee may include the equitable cost of extending the utility to 2 10 the properties, including reasonable interest from the date of 2 11 construction to the date of payment. 2 12 This bill authorizes cities to establish districts and 2 13 schedules of fees for the connection of property to storm 2 14 water drainage system utilities using the same procedure and 2 15 requirements that currently exist for city sewer and water 2 16 utility districts. 2 17 LSB 2084SC 83 2 18 md/sc/8