House Study Bill 163 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WAGNER) A BILL FOR An Act relating to the powers and governance of benefited 1 recreational lake districts, water quality districts, and 2 combined recreational lake and water quality districts. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2165YC (9) 84 md/sc

H.F. _____ Section 1. Section 357E.1, subsection 3, Code 2011, is 1 amended to read as follows: 2 3. “District” means a benefited recreational lake district 3 or a water quality district or a combined district incorporated 4 as a public entity and organized pursuant to this chapter . 5 Sec. 2. Section 357E.9, Code 2011, is amended to read as 6 follows: 7 357E.9 Trustees —— term and qualification. 8 1. a. At the election, the names of at least three seven 9 candidates for trustee shall be written in by the voters on 10 blank ballots without formal nomination and the board of 11 supervisors shall appoint three seven from among the five nine 12 receiving the highest number of votes as trustees for the 13 district. One trustee Three trustees shall be appointed to 14 serve for one year, one two for two years, and one two for three 15 years. The trustees shall give bond in the amount required by 16 the board, the premium of which shall be paid by the district. 17 The trustees must be residents of the district or be property 18 owners within the district . Vacancies shall be filled by 19 election, but if there are no candidates for a trustee office, 20 the vacancy may be filled by appointment by the board. The 21 terms of the succeeding trustees are for three years. 22 b. For districts in existence on July 1, 2011, the number 23 of trustees, other than those appointed under subsection 2, 24 shall be increased from three trustees to seven trustees. For 25 the initial seven-member board under this paragraph, the board 26 of supervisors shall appoint four trustees. One trustee shall 27 be appointed to serve for one year, one for two years, and two 28 for three years. The term of each trustee appointed under this 29 paragraph shall expire on the same date as the term of the 30 current trustee whose term expires during the same year. 31 2. If the state owns at least four hundred acres of land 32 contiguous to a lake within the district, the natural resource 33 commission shall appoint two members of the board of trustees 34 in addition to the three seven members provided in this 35 -1- LSB 2165YC (9) 84 md/sc 1/ 4

H.F. _____ section . The additional two members must be citizens of the 1 state, not less than eighteen years of age, and property owners 2 within the district. The two additional members have voting 3 and other authority equal to the other members of the board and 4 hold office at the pleasure of the natural resource commission. 5 Sec. 3. Section 357E.11, Code 2011, is amended by striking 6 the section and inserting in lieu thereof the following: 7 357E.11 Bonds and indebtedness. 8 1. A district may borrow money for its corporate purposes, 9 but shall not become indebted in any manner or for any purpose 10 to an amount in the aggregate exceeding five percent on the 11 value of the taxable property within the district, to be 12 ascertained by the last state and county tax lists previous to 13 the incurring of the indebtedness. Indebtedness within this 14 limit shall not include the indebtedness of any other municipal 15 corporation located wholly or partly within the boundaries of 16 the district. 17 2. Subject only to the debt limitation, a district shall 18 have the same powers to issue bonds, including both general 19 obligation and revenue bonds, that cities have under the laws 20 of this state. The bonds shall be payable in not more than 21 forty annual installments and with interest at a rate not 22 exceeding that permitted by chapter 74A, and shall be made 23 payable at the place and be of the form as the board of trustees 24 shall by resolution designate. In the application of the 25 laws to this chapter, the words used in the laws referring to 26 municipal corporations or to cities shall be held to include 27 districts organized under this chapter; the words “council” or 28 “city council” shall be held to include the board of trustees 29 of a district; the words “mayor” and “clerk” shall be held to 30 include the president and clerk of a board of trustees; and 31 like construction shall be given to any other words in the 32 laws where required to permit the exercise of the powers by 33 districts under this section. 34 3. An indebtedness shall not be incurred under this 35 -2- LSB 2165YC (9) 84 md/sc 2/ 4

H.F. _____ section until authorized by an election. The election shall 1 be held and notice given in the same manner as provided in 2 section 357E.8, and the same majority vote is necessary to 3 authorize indebtedness. A proposition for the authorization 4 of indebtedness may be submitted to the voters at the same 5 election as the election under section 357E.8. 6 EXPLANATION 7 This bill makes changes to Code chapter 357E relating to 8 benefited recreational lake districts, water quality districts, 9 and combined recreational lake and water quality districts. 10 The bill specifies that districts under Code chapter 357E 11 are incorporated as public entities. 12 The bill increases from three to seven the number of trustees 13 on the board governing a benefited recreational lake district, 14 water quality district, or combined recreational lake and 15 water quality district, other than the two trustees who may 16 be appointed by the natural resource commission if the state 17 owns a certain amount of land contiguous to a lake within the 18 district. The bill makes corresponding changes to the trustee 19 selection procedure for newly established districts. 20 The bill also provides that for districts in existence on 21 July 1, 2011, the board of supervisors is required to appoint 22 four additional trustees. One trustee shall be appointed to 23 serve for one year, one for two years, and two for three years. 24 Following expiration of those initial appointments, vacancies 25 are filled by election. 26 Current law requires trustees to be residents of the 27 district. The bill would also allow property owners within the 28 district to serve as trustees. 29 The bill strikes and replaces Code section 357E.11, relating 30 to a district’s authority to issue bonds in anticipation of 31 revenue. New Code section 357E.11 authorizes a district to, 32 subject to a debt limitation, issue bonds, including both 33 general obligation and revenue bonds, in the same manner as 34 cities. The bill provides that the bonds must be payable 35 -3- LSB 2165YC (9) 84 md/sc 3/ 4

H.F. _____ in not more than 40 annual installments and with interest 1 at a rate not exceeding that permitted by Code chapter 74A. 2 The bill provides, however, that a district may not incur an 3 indebtedness until authorized by an election. 4 -4- LSB 2165YC (9) 84 md/sc 4/ 4