Senate Study Bill 1244 - IntroducedA Bill ForAn Act 1relating to special assessments for the cost of public
2improvements and the collection of connection fees for the
3connection of property to certain city utilities.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 384.37, subsection 19, paragraph b, Code
22019, is amended to read as follows:
   3b.  Drainage conduits, channels, and levees, and storm water
4culverts
.
5   Sec. 2.  Section 384.37, subsections 22 and 23, Code 2019,
6are amended to read as follows:
   722.  “Sewer” means structures designed, constructed, and used
8for the purpose of controlling or carrying off streams, surface
9waters, storm water, waste, or sanitary sewage.
   1023.  “Sewer systems” are composed of the main sewers, sewage
11pumping stations, treatment and disposal plants, lateral
12sewers, drainage conduits or channels, storm water culverts,
13 and sanitary and storm sewer connections in public streets for
14private property.
15   Sec. 3.  Section 384.37, Code 2019, is amended by adding the
16following new subsection:
17   NEW SUBSECTION.  25A.  “Time of development” means the
18earliest of the following, as applicable:
   19a.  Recording of a subdivision plat pursuant to chapter 354.
   20b.  Submission for approval of a site plan of the property.
   21c.  Issuance of a building permit for the property.
22   Sec. 4.  Section 384.38, subsection 3, paragraph a, Code
232019, is amended to read as follows:
   24a.  A city may establish, by ordinance or by resolution
25adopted as an ordinance after twenty days’ notice published
26in accordance with section 362.3, and a public hearing, one
27or more districts and schedules of fees for the connection of
28property to the city sanitary sewer or water utility, or for
29the conveyance of storm water from the property by the city
30storm water sewer utility
. If the governing body directs that
31notice be made by mail, the notice shall be as required in
32section 384.50. Each person whose property will be served by
33connecting to the city sanitary sewer or water utility or who
34will be served by the storm water sewer utility
shall pay a
35connection fee to the city. The ordinance shall be certified
-1-1by the city and recorded in the office of the county recorder
2of the county in which a district is located. The sanitary
3sewer or water utility
connection fees are due and payable when
4a utility connection application is filed with the city. The
5storm water sewer utility connection fee is due and payable
6at the time of development.
A connection fee may include the
7equitable cost of extending the utility to the properties
 8or the equitable cost of providing the infrastructure to
9facilitate the conveyance of storm water from the properties
,
10including reasonable interest from the date of construction to
11the date of payment. All fees collected under this subsection
12shall be paid to the city treasurer. The moneys collected
13as fees shall only be used for the purposes of operating
14the utility, or to pay debt service on obligations issued to
15finance improvements or extensions to the utility.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
   19Code chapter 384, subchapter IV, authorizes a city to assess
20to private property within the city the cost of construction
21and repair of public improvements within the city, and main
22sewers, sewage pumping stations, disposal and treatment plants,
23waterworks, water mains, extensions, and drainage conduits
24extending outside the city. This bill modifies the definition
25of “public improvement” to include storm water culverts. The
26bill modifies the definition of “sewer” to include structures
27designed, constructed, and used for the purpose of controlling
28or carrying off storm water. The bill modifies the definition
29of “sewer systems” to include storm water culverts, and
30specifies sewer connections to include sanitary and storm water
31sewer connections.
   32Current law provides cities the authority to establish,
33by ordinance after notice and a public hearing, one or
34more districts and schedules of fees for the connection of
35property to the city sewer or water utility. Each person
-2-1whose property will be served by connecting to the city sewer
2or water utility is required to pay a connection fee to the
3city when the application for connection is filed. Current
4law specifies that a connection fee may include the equitable
5cost of extending the utility to the properties, including
6reasonable interest from the date of construction to the date
7of payment. The bill adds the equitable cost of providing the
8infrastructure to facilitate the conveyance of storm water from
9the properties to the types of costs that may be included as
10part of the connection fee.
   11The bill authorizes cities to establish districts and
12schedules of fees for the conveyance of storm water from
13property by the storm water sewer utility. The storm water
14sewer utility connection fee is due and payable at the time of
15development, as defined in the bill.
   16By operation of law, the bill applies to the authority
17of sanitary districts under Code chapter 358 to establish
18connection fees.
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