HF 597 (LSB 2722YH (2) 89)

HOUSE FILE 597

BY  LOHSE

A BILL FOR

An Act relating to special assessments for the cost of public improvements and the collection of connection fees for the connection of property to certain city utilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 384.37, subsection 19, paragraph b, Code 2021, is amended to read as follows:
   b.  Drainage conduits, channels, and levees, and storm water culverts.
    Sec. 2.  Section 384.37, subsections 22 and 23, Code 2021, are amended to read as follows:
   22.  “Sewer” means structures designed, constructed, and used for the purpose of controlling or carrying off streams, surface waters, storm water, waste, or sanitary sewage.
   23.  “Sewer systems” are composed of the main sewers, sewage pumping stations, treatment and disposal plants, lateral sewers, drainage conduits or channels, storm water culverts, and sanitary and storm water sewer connections in public streets for private property.
    Sec. 3.  Section 384.37, Code 2021, is amended by adding the following new subsection:
   NEW SUBSECTION.  25A.  “Time of development” means the earliest of the following, as applicable:
   a.  Recording of a subdivision plat pursuant to chapter 354.
   b.  Submission for approval of a site plan of the property.
   c.  Issuance of a building permit for the property.
    Sec. 4.  Section 384.38, subsection 3, paragraph a, Code 2021, is amended to read as follows:
   a.  A city may establish, by ordinance or by resolution adopted as an ordinance after twenty days’ notice published in accordance with section 362.3, and a public hearing, one or more districts and schedules of fees for the connection of property to the city sanitary sewer or water utility, or for the conveyance of storm water from the property by the city storm water sewer utility. If the governing body directs that notice be made by mail, the notice shall be as required in section 384.50. Each person whose property will be served by connecting to the city sanitary sewer or water utility or who will be served by the storm water sewer utility shall pay a connection fee to the city. The ordinance shall be certified by the city and recorded in the office of the county recorder of the county in which a district is located. The sanitary sewer or water utility connection fees are due and payable when a utility connection application is filed with the city.  The storm water sewer utility connection fee is due and payable at the time of development. A connection fee may include the equitable cost of extending the utility to the properties or the equitable cost of providing the infrastructure to facilitate the conveyance of storm water from the properties, including reasonable interest from the date of construction to the date of payment. All fees collected under this subsection shall be paid to the city treasurer. The moneys collected as fees shall only be used for the purposes of operating the utility, or to pay debt service on obligations issued to finance improvements or extensions to the utility.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code chapter 384, subchapter IV, authorizes a city to assess to private property within the city the cost of construction and repair of public improvements within the city, and main sewers, sewage pumping stations, disposal and treatment plants, waterworks, water mains, extensions, and drainage conduits extending outside the city. This bill modifies the definition of “public improvement” to include storm water culverts. The bill modifies the definition of “sewer” to include structures designed, constructed, and used for the purpose of controlling or carrying off storm water. The bill modifies the definition of “sewer systems” to include storm water culverts, and specifies sewer connections to include sanitary and storm water sewer connections.
   Current law provides cities the authority to establish, by ordinance after notice and a public hearing, one or more districts and schedules of fees for the connection of property to the city sewer or water utility. Each person whose property will be served by connecting to the city sewer or water utility is required to pay a connection fee to the city when the application for connection is filed. Current law specifies that a connection fee may include the equitable cost of extending the utility to the properties, including reasonable interest from the date of construction to the date of payment. The bill adds the equitable cost of providing the infrastructure to facilitate the conveyance of storm water from the properties to the types of costs that may be included as part of the connection fee.
   The bill authorizes cities to establish districts and schedules of fees for the conveyance of storm water from property by the storm water sewer utility. The storm water sewer utility connection fee is due and payable at the time of development, as defined in the bill.
   By operation of law, the bill applies to the authority of sanitary districts under Code chapter 358 to establish connection fees.