House File 597 - Introduced HOUSE FILE 597 BY LOHSE A BILL FOR An Act relating to special assessments for the cost of public 1 improvements and the collection of connection fees for the 2 connection of property to certain city utilities. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2722YH (2) 89 md/jh

H.F. 597 Section 1. Section 384.37, subsection 19, paragraph b, Code 1 2021, is amended to read as follows: 2 b. Drainage conduits, channels , and levees , and storm water 3 culverts . 4 Sec. 2. Section 384.37, subsections 22 and 23, Code 2021, 5 are amended to read as follows: 6 22. “Sewer” means structures designed, constructed , and used 7 for the purpose of controlling or carrying off streams, surface 8 waters, storm water, waste , or sanitary sewage. 9 23. “Sewer systems” are composed of the main sewers, sewage 10 pumping stations, treatment and disposal plants, lateral 11 sewers, drainage conduits or channels , storm water culverts, 12 and sanitary and storm water sewer connections in public 13 streets for private property. 14 Sec. 3. Section 384.37, Code 2021, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 25A. “Time of development” means the 17 earliest of the following, as applicable: 18 a. Recording of a subdivision plat pursuant to chapter 354. 19 b. Submission for approval of a site plan of the property. 20 c. Issuance of a building permit for the property. 21 Sec. 4. Section 384.38, subsection 3, paragraph a, Code 22 2021, is amended to read as follows: 23 a. A city may establish, by ordinance or by resolution 24 adopted as an ordinance after twenty days’ notice published 25 in accordance with section 362.3 , and a public hearing, one 26 or more districts and schedules of fees for the connection of 27 property to the city sanitary sewer or water utility , or for 28 the conveyance of storm water from the property by the city 29 storm water sewer utility . If the governing body directs that 30 notice be made by mail, the notice shall be as required in 31 section 384.50 . Each person whose property will be served by 32 connecting to the city sanitary sewer or water utility or who 33 will be served by the storm water sewer utility shall pay a 34 connection fee to the city. The ordinance shall be certified 35 -1- LSB 2722YH (2) 89 md/jh 1/ 3

H.F. 597 by the city and recorded in the office of the county recorder 1 of the county in which a district is located. The sanitary 2 sewer or water utility connection fees are due and payable when 3 a utility connection application is filed with the city. The 4 storm water sewer utility connection fee is due and payable 5 at the time of development. A connection fee may include the 6 equitable cost of extending the utility to the properties 7 or the equitable cost of providing the infrastructure to 8 facilitate the conveyance of storm water from the properties , 9 including reasonable interest from the date of construction to 10 the date of payment. All fees collected under this subsection 11 shall be paid to the city treasurer. The moneys collected 12 as fees shall only be used for the purposes of operating 13 the utility, or to pay debt service on obligations issued to 14 finance improvements or extensions to the utility. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 Code chapter 384, subchapter IV, authorizes a city to assess 19 to private property within the city the cost of construction 20 and repair of public improvements within the city, and main 21 sewers, sewage pumping stations, disposal and treatment plants, 22 waterworks, water mains, extensions, and drainage conduits 23 extending outside the city. This bill modifies the definition 24 of “public improvement” to include storm water culverts. The 25 bill modifies the definition of “sewer” to include structures 26 designed, constructed, and used for the purpose of controlling 27 or carrying off storm water. The bill modifies the definition 28 of “sewer systems” to include storm water culverts, and 29 specifies sewer connections to include sanitary and storm water 30 sewer connections. 31 Current law provides cities the authority to establish, 32 by ordinance after notice and a public hearing, one or 33 more districts and schedules of fees for the connection of 34 property to the city sewer or water utility. Each person 35 -2- LSB 2722YH (2) 89 md/jh 2/ 3

H.F. 597 whose property will be served by connecting to the city sewer 1 or water utility is required to pay a connection fee to the 2 city when the application for connection is filed. Current 3 law specifies that a connection fee may include the equitable 4 cost of extending the utility to the properties, including 5 reasonable interest from the date of construction to the date 6 of payment. The bill adds the equitable cost of providing the 7 infrastructure to facilitate the conveyance of storm water from 8 the properties to the types of costs that may be included as 9 part of the connection fee. 10 The bill authorizes cities to establish districts and 11 schedules of fees for the conveyance of storm water from 12 property by the storm water sewer utility. The storm water 13 sewer utility connection fee is due and payable at the time of 14 development, as defined in the bill. 15 By operation of law, the bill applies to the authority 16 of sanitary districts under Code chapter 358 to establish 17 connection fees. 18 -3- LSB 2722YH (2) 89 md/jh 3/ 3