SF 2052 (LSB 5106XS (13) 85)

SENATE FILE 2052

BY  WILHELM

A BILL FOR

An Act authorizing the creation of county improvement districts, authorizing the imposition, collection, and expenditure of certain tax revenue within a district, authorizing the issuance of bonds for a district, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  332.1  Definitions.

   As used in this chapter, unless the context otherwise requires:

   1.  “Board” means the county board of supervisors.
   2.  “Book”, “list”, “record”, or “schedule” kept by a county auditor, assessor, treasurer, recorder, sheriff, or other county officer means the county system as defined in section 445.1.
   3.  “Costs” of an improvement includes construction contracts and the cost of engineering, architectural, technical, and legal services, preliminary reports, property valuations, estimates, plans, specifications, notices, acquisition of real and personal property, consequential damages or costs, easements, rights-of-way, supervision, inspection, testing, publications, printing and sale of bonds, interest incurred during construction and for not more than six months thereafter, and provisions for contingencies.
   4.  “District” means a county improvement district created in accordance with this chapter.
   5.  “Improvement” means works, structures, and facilities located within or outside the district that are necessary to provide utility services to property within the district, including but not limited to water, electric, gas, telecommunications, and sewer utilities.
   6.  “New consumer” means a consumer, as defined in section 437A.3, located in the district that was not located in the area of the district before the effective date of the ordinance establishing the district, regardless of ownership.
   7.  “Property” means real property as defined in section 4.1, subsection 13, and in section 427A.1, subsection 1, paragraph “h”.
   8.  “Property owner” or “owner” means the owner of property, as shown by the transfer books in the office of the county auditor of the county in which the property is located.
    Sec. 2.  NEW SECTION.  332.2  Authorization.

   A county that proposes to create a county improvement district, to provide for its existence and operation, to provide for improvements, to authorize and issue bonds for the purposes of the district, and to use the taxes authorized by this chapter must do so in accordance with the provisions of this chapter.
    Sec. 3.  NEW SECTION.  332.3  Creation of district.
   1.  A county improvement district created by the board of supervisors shall:
   a.  Be comprised of contiguous property wholly within the unincorporated area of the county.
   b.   Be comprised only of property that is zoned for commercial or industrial use.
   c.  Be given a descriptive name containing the words “county improvement district”.
   d.  Be comprised of property related in some manner, including but not limited to present or potential use, physical location, condition, relationship to an area, or relationship to present or potential commercial or industrial activity in an area, so as to be benefited in any manner.
   2.  The board shall initiate proceedings for creating a district upon the filing with the county auditor of a petition containing:
   a.  The signatures of at least fifty percent of all owners of property within the proposed district. These signatures must together represent ownership of property with an assessed value of fifty percent or more of the assessed value of all of the property in the proposed district.
   b.  A description of the boundaries of the proposed district or a description of the property within the proposed district.
   c.  The name of the proposed district.
   d.  A statement of the maximum rate of tax that may be imposed upon property within the proposed district for purposes of the district. The maximum rate of tax may be stated in terms of separate maximum rates for the debt service tax and the capital improvement fund tax, or in terms of a maximum combined rate for both.
   e.  The purpose of the district, which may be stated generally, or in terms of the relationship of the property within the district or the interests of the owners of property within the district, or in terms of the improvements proposed for the district by listing specific improvements or general categories of improvements, or in terms of any combination of the foregoing.
   f.  A statement as to whether the district is authorized to use utility replacement tax revenue pursuant to section 332.7.
   3.  a.  The board shall notify the county zoning commission upon the receipt of a petition. It shall be the duty of the county zoning commission to make recommendations to the board in regard to the proposed district. The county zoning commission shall, with due diligence, prepare a report for the board evaluating the merit and feasibility of the proposed district. Except as otherwise provided in paragraph “b”, the board shall not hold a public hearing or take further action on the creation of the district until it has received the report required by this section.
   b.  If no county zoning commission exists, the board shall notify the metropolitan or regional planning commission upon receipt of a petition, and such commission shall have the same duties set forth in this subsection as a county zoning commission. If no county zoning commission or metropolitan or regional planning commission exists, the board shall call a public hearing on the petition requesting creation of a district by publishing and mailing notice in the same manner as provided in subsection 4.
   4.  a.  Upon receipt of the commission’s final report or after the public hearing under subsection 3, paragraph “b”, as applicable, the board shall set a time and place for a public hearing at which the board proposes to take action on creation of the district, and shall publish notice of the hearing as provided in section 331.305. In addition, the county auditor shall send a copy of the notice by certified mail not less than fifteen days before the hearing to each owner of property within the proposed district at the owner’s address as shown by the records of the county auditor. If a property is shown to be in the name of more than one owner at the same mailing address, a single notice may be mailed addressed to all owners at that address. Failure to receive a mailed notice is not grounds for objection to the board’s taking any action authorized in this chapter.
   b.  In addition to the time and place of the public hearing on the proposal, the notice must state:
   (1)  That a petition has been filed with the board asking that a district be established.
   (2)  The name of the district.
   (3)  The purpose of the district.
   (4)  A description of the property proposed to be included in the district and a map of such property.
   (5)  A description of any proposed improvement to be undertaken and an estimate of its cost.
   (6)  The funding sources proposed for each improvement identified under subparagraph (5), and an estimate of the amount of funding that will be necessary from each funding source.
   5.  At the time and place set in the notice the board shall hear all owners of property in the proposed district or residents of the county desiring to express their views. The board must wait at least thirty days after the public hearing required by subsection 4 has been held before it may adopt an ordinance establishing a district. Property included in the proposed district need not be included in the established district. However, property shall not be included in the established district if the property was not included in the proposed district unless the board holds another public hearing after publishing and mailing notice meeting the requirements of subsection 4 to the owners of the additional property or causes a notice of the inclusion of the property to be personally served upon each owner of the additional property or receives a written waiver of notice from each owner of the additional property.
   6.  Adoption of the ordinance creating a district requires the affirmative vote of three-fourths of all of the members of the board. However, adoption of the ordinance requires a unanimous vote of the board if a remonstrance has been filed with the county auditor signed by at least fifty percent of all owners of property within the proposed district representing ownership of property with an assessed value of fifty percent or more of the assessed value of all of the property in the proposed district.
   7.  The county auditor shall cause a copy of the ordinance to be filed in the office of the county recorder and shall provide a copy of the ordinance to the director of revenue and the director of the department of management within fifteen days of adoption.
   8.  At any time prior to adoption of an ordinance creating a district, the matter of creating such district shall be withdrawn from board consideration if a petition objecting to creating such district is filed with the county auditor containing the signatures of at least sixty-five percent of all owners of property within the proposed district or signatures which together represent ownership of property with an assessed value of sixty-five percent or more of the assessed value of all property within the proposed district.
   9.  The adoption of an ordinance creating a district is a legislative determination that the property within the district is related in some manner as required under subsection 1, paragraph “d”.
   10.  Any resident or property owner of the county may appeal the action and the decisions of the board, including the creation of the district, to the district court of the county in which the district is located, within thirty days after the date upon which the ordinance creating the district takes effect, but the action and decision of the board are final and conclusive unless the court finds that the board exceeded its authority. An action may not be brought questioning the regularity of the proceedings pertaining to the creation of a district or the validity of the district, or the propriety of the inclusion or exclusion of any property within or from the district, or the ability of the county to receive taxes in accordance with the ordinance creating the district, after thirty days from the date on which the ordinance creating the district takes effect.
   11.  The procedural steps for the petitioning and creation of the district may be combined with the procedural steps for the authorization of any improvement under section 332.6, or the procedural steps for the authorization of any tax, or any combination thereof.
   12.  The rate of debt service tax referred to in the petition and the ordinance creating the district shall only restrict the amount of bonds which may be issued, and shall not limit the ability of the county to levy as necessary in subsequent years to pay interest and amortize the principal of that amount of bonds. Bonds issued pursuant to section 332.10 shall constitute indebtedness within the meaning of any constitutional or statutory debt limitations or restrictions.
   13.  The ordinance creating the district may provide for the division of all of the property within the district into two or more zones based upon a reasonable difference in the relationship of the property or the interest of its owners, whether the difference is qualitative or quantitative. The ordinance creating the district and establishing the zones may establish a different maximum rate of tax for each zone, or may provide that the zone shall be credited with a certain set percentage of the improvement district taxes levied in the zone.
    Sec. 4.  NEW SECTION.  332.4  Amendments to ordinance.
   1.  a.  The ordinance creating the district may be amended by the board.
   b.  If the amendment to the ordinance modifies the boundaries of the district, increases or decreases the maximum rate of taxes authorized in the ordinance, or authorizes or discontinues the use of utility replacement taxes under section 332.7, such amendment shall be adopted in the same manner and by the same procedure as for the creation of a district.
   c.  Property added to a district shall be subject to all taxes currently and thereafter levied, including debt service levies for bonds previously or thereafter issued.
   2.  An amendment to the ordinance creating the district for any reason specified under subsection 1, paragraph “b”, shall be adopted by an affirmative vote of three-fourths of all of the members of the board. However, if a remonstrance has been filed with the county auditor signed by at least fifty percent of all owners of property within the district, and all property proposed to be included if applicable, representing ownership of property with an assessed value of fifty percent or more of the assessed value of all the property in the district, and all property proposed to be included if applicable, the amendment to the ordinance must be adopted by unanimous vote of the board.
   3.  The county auditor shall cause a copy of the amended ordinance to be filed in the office of the county recorder and shall provide a copy of the amended ordinance to the director of revenue and the director of the department of management.
   4.  At any time prior to adoption of the amendment to the ordinance creating the district, the entire matter of amending the ordinance shall be withdrawn from board consideration if a petition objecting to amending the ordinance is filed with the county auditor containing either the signatures of at least sixty-five percent of all owners of property within the district, and all property proposed to be included if applicable, or signatures that together represent ownership of property with an assessed value of sixty-five percent or more of the assessed value of all property within the district, and all property proposed to be included if applicable.
   5.  Any resident or property owner of the county may appeal the action or decisions of the board in amending the ordinance creating the district to the district court of the county in which the district is located, within fifteen days after the date upon which the amendment to the ordinance creating the district takes effect, but the action and decision of the board are final and conclusive unless the court finds that the board exceeded its authority. An action questioning the regularity of the proceedings pertaining to the amended ordinance or the validity of the district as amended, or the propriety of the inclusion or exclusion of any property within or from the amended district, or the ability of the county to impose or receive taxes in accordance with the ordinance establishing the district, as amended, may not be brought after thirty days from the date upon which the amendment to the ordinance takes effect.
    Sec. 5.  NEW SECTION.  332.5  Dissolution.
   1.  A district may be dissolved and terminated by action of the board repealing the ordinance creating the district, and any subsequent amendments to the ordinance, by an affirmative vote of three-fourths of all members of the board. However, if a remonstrance has been filed with the county auditor signed by at least fifty percent of all owners of property within the district representing ownership of property with an assessed value of fifty percent or more of the assessed value of all the property in the district, the repeal of the ordinance creating the district, and any subsequent amendments to the ordinance, requires a unanimous vote of the board.
   2.  At any time prior to action of the board repealing the ordinance creating the district, and any subsequent amendments to the ordinance, the matter of dissolving a district shall be withdrawn from board consideration if a petition is filed with the county auditor containing the signatures of at least sixty-five percent of all owners of property within the district or signatures which together represent ownership of property with an assessed value of sixty-five percent or more of the assessed value of all property within the district.
   3.  A dissolution of a district shall not become effective until the indebtedness or other obligations of the district have been satisfied.
    Sec. 6.  NEW SECTION.  332.6  Improvements.
   1.  When a county proposes to construct an improvement the costs of which are to be paid or financed under the provisions of this chapter, it must do so in accordance with this section.
   2.  The board shall initiate proceedings for a proposed improvement upon receipt of a petition signed by at least fifty percent of all owners of property within the district representing ownership of property with an assessed value of fifty percent or more of the assessed value of all the property in the district.
   3.  Upon receipt of such a petition the board shall notify the county zoning commission, if one exists, or the metropolitan or regional planning commission, if one exists, in the order set forth in section 332.3, subsection 3. Upon notification by the board, the commission shall prepare a report for the board evaluating the merit and feasibility of the improvement and shall carry out all other duties as set forth in section 332.3, subsection 3. If no planning or zoning commission exists, the board shall call a public hearing on the proposed improvement by publishing and mailing notice in the same manner as provided in section 332.3, subsection 4.
   4.  a.  Upon receipt of the commission’s report or after the public hearing under subsection 3, as applicable, the board shall set a time and place of a public hearing at which the board proposes to take action on the proposed improvement and shall publish and mail notice in the same manner as provided in section 332.3, subsection 4.
   b.  The notice must include the time and place of the hearing and a statement that an improvement has been proposed, the nature of the improvement, and the funding source for the costs of the improvement.
   5.  At the time and place set in the notice the board shall hear all owners of property in the district or residents of the county desiring to express their views. The board must wait at least thirty days after the public hearing required by subsection 4 has been held before it may take action to order construction of the improvement. The provisions of section 332.3, subsections 6 and 8, relating to the adoption of the ordinance creating a district, the requisite vote therefor, the remonstrance thereto, and the withdrawal of the matter from board consideration apply to the adoption of the resolution ordering the construction of the improvement.
   6.  If the board adopts a resolution ordering the construction of the improvement, it shall proceed to let contracts for the improvement in accordance with chapter 26.
   7.  The adoption of a resolution ordering the construction of an improvement is a legislative determination that the proposed improvement is in furtherance of the purposes of the district and that all property in the district will be affected by the construction of the improvement, or that all owners of property in the district have an interest in the construction of the improvement.
   8.  Any resident or property owner of the county may appeal the action or decisions of the board in ordering the construction of the improvement to the district court of the county in which the district is located within thirty days after the adoption of the resolution ordering construction of the improvement, but the action and decisions of the board are final and conclusive unless the court finds that the board exceeded its authority. No action may be brought questioning the regularity of the proceedings pertaining to the ordering of the construction of an improvement or the right of the county to apply moneys in the capital improvement fund established in section 332.8 to the payment of the costs of the improvement or the right of the county to issue bonds authorized in this chapter for the payment of the costs of the improvement or the right of the county to levy taxes which with any other taxes authorized by this chapter do not exceed the maximum rate of tax that may be imposed upon property within the district for the payment of principal of and interest on bonds issued to pay the costs of the improvement, after thirty days from the date of adoption of the resolution ordering construction of the improvement.
    Sec. 7.  NEW SECTION.  332.7  Utility replacement tax.
   1.  If authorized by the ordinance creating the district, or any subsequent amendment to such ordinance, the county may elect to receive each year for a period not to exceed twenty years following initial creation of the district an amount of replacement taxes collected under chapter 437A not to exceed the sum of the following:
   a.  The number of taxable kilowatt-hours of electricity delivered to new consumers within the district for consumption within the district during the tax year multiplied by the electric replacement delivery tax rate in effect for the applicable electric competitive service area.
   b.  The number of taxable therms of natural gas delivered to new consumers within the district for consumption within the district during the tax year multiplied by the natural gas delivery tax rate in effect for the applicable natural gas competitive service area.
   2.  Replacement taxes received by a county under this section shall be deposited in the improvement district’s capital improvement fund established under section 332.8 or in the improvement district’s debt service fund established under section 332.9.
    Sec. 8.  NEW SECTION.  332.8  Capital improvement tax and fund.
   1.  A county may establish a capital improvement fund for a district and may certify taxes not to exceed the rate established by the ordinance creating the district, or any subsequent amendment thereto, such taxes to be levied each year for the fund against all of the property in the district for the purpose of accumulating moneys for the financing or payment of a part or all of the costs of any improvement. A tax levied under this section is not a basic levy for purposes of the levy limitations in section 331.423.
   2.  In addition to taxes levied and collected under subsection 1, all or a portion of the replacement tax revenue received by the district under section 332.7 may be deposited in the capital improvement fund and used for the purposes authorized under subsection 1. The tax authorized under subsection 1 is not required to be levied and collected in order to establish a capital improvement fund and to deposit replacement tax revenue into the fund.
    Sec. 9.  NEW SECTION.  332.9  Debt service tax and fund.
   1.  A county shall establish an improvement district debt service fund if county improvement district bonds are issued and outstanding, other than revenue bonds, and shall certify taxes to be levied against all of the property in the district for the improvement district debt service fund in the amount necessary to pay interest as it becomes due and the amount necessary to pay, or to create a sinking fund to pay, the principal at maturity of all county improvement district bonds issued by the county as authorized in section 332.10.
   2.  In addition to taxes levied and collected under subsection 1, all or a portion of the replacement tax revenue received by the district under section 332.7 may be deposited in the improvement district debt service fund and used for the purposes authorized under subsection 1 in lieu of all or a portion of the tax required to be levied under subsection 1. The tax authorized under subsection 1 is not required to be levied and collected in order to establish an improvement district debt service fund and to deposit replacement tax revenue into the fund.
    Sec. 10.  NEW SECTION.  332.10  County improvement district bonds.
   1.  A county may issue county improvement district bonds at public or private sale payable from taxes levied in accordance with chapter 76. The bonds are payable from the levy of unlimited ad valorem taxes on all the taxable property within the district through the improvement district debt service fund authorized by section 332.9 and from replacement tax revenue received under section 332.7 and deposited into the improvement district debt service fund. When county improvement district bonds are issued and taxes are levied, the taxes shall continue to be levied, until the principal and interest on the bonds are paid in full, against all of the taxable property that was included in the district at the time of the issuance of the bonds and against property added to the district by amendment to the ordinance, and regardless of any subsequent removal of property from the district or the dissolution of the district.
   2.  The proceeds of the sale of the bonds may be used to pay the costs of an improvement or may be used to pay any legal indebtedness incurred for the costs of an improvement, including bonds or warrants previously issued to pay the costs of an improvement, or bonds may be exchanged for the evidences of such legal indebtedness.
   3.  Before the board may institute proceedings for the issuance of bonds, it shall proceed in the same manner as is required for instituting proceedings for the issuance of bonds for an essential county purpose as provided in section 331.443 and all of the provisions of chapter 331 relating to the issuance of essential county purpose bonds shall apply to bonds issued pursuant to this section.
   4.  The proceeds of a single bond issue may be used for more than one improvement.
   5.  The provisions of section 331.446 apply to bonds issued pursuant to this section, except that the bonds shall be designated “county improvement district bonds”.
   6.  An action questioning the legality of bonds issued pursuant to this section or the power of a county to issue the bonds or the effectiveness of any proceedings relating to the authorization and issuance of the bonds shall not be brought after thirty days from the time the bonds are ordered issued by the county.
    Sec. 11.  NEW SECTION.  332.11  Payment for improvements.

   The costs of improvements may be paid from any of the following funding sources or a combination thereof:

   1.  The capital improvement fund established in section 332.8.
   2.  The proceeds of bonds issued pursuant to section 332.10.
   3.  Any other funds of the county that are legally available to pay all or a portion of the costs of an improvement. The fact that an improvement is initiated under this chapter shall not preclude the county from paying the costs of the improvement from any fund from which it might otherwise have been able to pay such costs. In addition, and not in limitation of the foregoing, an improvement that constitutes an essential county purpose or a general county purpose, as defined in section 331.441, may be financed in whole or in part with the proceeds of the issuance of general obligation bonds of the county payable from the debt service fund in section 331.430.
   4.  Payment for the costs of an improvement may also be made in warrants drawn on any fund from which payment for the improvement may be made. If such funds are depleted, anticipatory warrants may be issued bearing a rate of interest not exceeding that permitted by chapter 74A, which do not constitute a violation of section 331.477, even if the collection of taxes or income from the sale of bonds applicable to the improvement is after the end of the fiscal year in which the warrants are issued. If the county arranges for the private sale of anticipatory warrants, they may be sold and the proceeds used to pay the costs of the improvement. Such warrants may be used to pay other persons furnishing services constituting a part of the costs of the improvement.
    Sec. 12.  NEW SECTION.  332.12  Independent provisions.

   The provisions of this chapter with respect to notice, hearing, and appeal for the construction of improvements and for the issuance and sale of bonds are in lieu of the provisions contained in chapters 73A and 75, or any other law, unless specifically referred to and made applicable by this chapter.
    Sec. 13.  Section 437A.8, subsection 1, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  All information determined by the director to be necessary to implement the allocation and payment of replacement taxes to a county improvement district that has authorized the use of such revenue pursuant to section 332.7.
    Sec. 14.  Section 437A.15, subsection 3, paragraph a, subparagraph (1), Code 2014, is amended to read as follows:
   (1)  All replacement taxes owed by a taxpayer shall be allocated among the local taxing districts in which such taxpayer’s property is located in accordance with a general allocation formula determined by the department of management on the basis of general property tax equivalents. General property tax equivalents shall be determined by applying the levy rates reported by each local taxing district to the department of management on or before June 30 following a tax year to the taxable value of taxpayer property allocated to each such local taxing district as adjusted and reported to the department of management in such tax year by the director pursuant to section 437A.19, subsection 2. The general allocation formula for a tax year shall allocate to each local taxing district that portion of the replacement taxes owed by each taxpayer which bears the same ratio as such taxpayer’s general property tax equivalents for each local taxing district bears to such taxpayer’s total general property tax equivalents for all local taxing districts in Iowa.  For tax years beginning on or after January 1, 2015, the amount of replacement taxes allocated by the department of management under this section and paid to local taxing districts located in whole or in part within a county improvement district created under chapter 332 shall be adjusted to take into account the use of replacement taxes under section 332.7 by the county improvement district.
    Sec. 15.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill authorizes the creation of county improvement districts.
   A county improvement district shall be comprised of contiguous property wholly within the unincorporated area of the county, be comprised only of property which is zoned for commercial or industrial use, and be comprised of property related in some manner, including but not limited to present or potential use, physical location, condition, relationship to an area, or relationship to present or potential commercial or industrial activity in an area, so as to be benefited in any manner.
   The county board of supervisors shall initiate proceedings for creating a district upon the filing with the county auditor of a petition containing the signatures of at least 50 percent of all owners of property within the proposed district if those owners represent ownership of property with an assessed value of 50 percent or more of the assessed value of all of the property in the proposed district. The petition shall also state the maximum rate of tax that may be imposed upon property within the district for purposes of the district, state the purpose of the district, and state whether the district is authorized to use utility replacement tax revenue.
   The board is required to notify and receive recommendations from the county zoning commission or other applicable entities, if existing, regarding the creation of the district. Upon the receipt of the county zoning commission’s final report, if applicable, or the completion of a public hearing if no such commission exists, the board shall set a time and place for a public hearing on creation of the district. Adoption of the ordinance creating a district requires the affirmative vote of three-fourths of all of the members of the board. However, if a remonstrance has been filed with the county auditor signed by at least 50 percent of all owners of property within the proposed district representing ownership of property with an assessed value of 50 percent or more of the assessed value of all of the property in the proposed district, the adoption of the ordinance requires a unanimous vote of the board.
   The bill establishes procedures for objecting to the creation of the district, for appealing the actions of the board relating to the district, for dissolution of the district, and for amending the ordinance creating the district.
   The bill establishes the procedure and requirements for a county when the county proposes to construct an improvement, as defined in the bill. The procedure for approving the construction of an improvement financed with tax revenue authorized in the bill is similar to the approval process for the creation of the district. The bill defines “improvement” to mean works, structures, and facilities located within or outside the district that are necessary to provide utility services to property within the district, including but not limited to water, electric, gas, telecommunications, and sewer utilities.
   The bill authorizes the county to utilize three sources of tax revenue to undertake construction and financing of an improvement. First, the county may elect to receive each year, for a period not to exceed 20 years following initial creation of the district, a specified amount of utility replacement taxes collected under Code chapter 437A. The utility replacement tax revenue is required to be deposited in either the district’s capital improvement fund or the district’s debt service fund. Second, the county may impose a capital improvement tax levy for the purpose of accumulating moneys for the financing or payment of a part or all of the costs of any improvement. Third, the county may impose a debt service levy in the amount necessary to pay interest as it becomes due and the amount necessary to pay, or to create a sinking fund to pay, the principal at maturity of all county improvement district bonds issued by the county.
   The bill authorizes the county to issue county improvement district bonds at public or private sale payable from the levy of unlimited ad valorem taxes on all the taxable property within the district through the improvement district debt service fund and from replacement tax revenue received and deposited in the improvement district debt service fund.
   The costs of improvements undertaken by the county in a district may be paid from any of the following sources or a combination thereof: (1) the district’s capital improvement fund; (2) the proceeds of county improvement district bonds; (3) any other funds of the county which are otherwise legally available to pay all or a portion of the costs of an improvement.
   The bill takes effect upon enactment.