LD 562
pg. 2
Page 1 of 2 An Act to Allow Municipalities to Create Capital Improvement Districts LD 562 Title Page
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LR 680
Item 1

 
2.__Public notice.__The municipal officers shall give notice
to all property owners within or abutting the proposed district
at least 14 days in advance of the date of the initial public
hearing.__The notice to property owners must be by certified
mail.__Municipal officers also shall give notice of the initial
public hearing in a newspaper of general circulation at least 14
days in advance of the public hearing.__The notice of public
hearing must include the estimated cost of the proposed
improvement, the estimated cost of the improvement to each
property owner in or abutting the district and the specific
boundaries of the proposed district.__Notice for any additional
public hearings must be given in the same manner as notice for
the initial public hearing.

 
3.__Referendum.__Following the initial public hearing, the
municipal officers may conduct a referendum among the property
owners of the district and abutting the district to determine
support for creating the district and, by implication, support
for the proposed abutting improvements.__The municipal officers
shall design an election process that allows each property owner
within or abutting the district a vote.__The municipal officers
may not proceed with the creation of the district unless a
majority of the property owners within or abutting the proposed
district votes to establish the district.__The election process
designed by the municipal officers may require a 2/3-majority
vote to establish the district.

 
4.__Officers' approval.__Following the vote by property owners
to establish a capital improvement district pursuant to
subsection 3, a majority of the municipal officers must approve
the creation of the district before the district may be
established.

 
§5224.__District governance; boundaries of district; maintenance

 
of improvement; costs of improvement

 
For each capital improvement district created, the following
are required.

 
1.__Governance.__For the purposes of conducting the business
for which the district was created, the municipal officers shall
serve as the governing board of the district.__The municipal
officers shall appoint an advisory committee consisting of no
fewer than 3 and no more than 7 property owners within or
abutting the district for the purposes of receiving comments and
recommendations on the proposed improvement or improvements
within the district.__Advisory committee members serve at the
pleasure of the municipal officers.

 
2. Boundaries.__Boundaries of the district must be
specifically defined and must be limited to the defined area in
which the improvements are to be undertaken.__The boundaries as
proposed by municipal officers prior to the referendum vote to
authorize the district may not be amended except by additional
referendum as provided in section 5222, subsection 3 among the
property owners within or abutting the district as proposed to be
amended and a majority vote in favor of the amended boundaries by
the municipal officers as provided in section 5223, subsection 4.

 
3.__Cost of improvement.__The cost of an improvement in a
capital improvement district is borne by the municipal government
or special district pursuant to subsection 4 until the
improvement is complete.__The municipal government or special
district shall then assess each property owner in or abutting the
district the property owner's share of the cost of the
improvement in an amount that does not exceed the entire cost of
constructing the improvement. The assessed share may be payable
in one year or may be prorated over a period not to exceed 10
years at an interest rate established by the municipal officers
and in accordance with the provisions of Title 36, chapter 7.__
The amount assessed property owners must be reasonable.

 
4. Maintenance of improvement.__Upon completion of the
improvement or improvements authorized by creation of the
district, the improvement becomes the responsibility of the
municipal government or of a special district established for the
purposes of providing water, sewer, electric, educational,
health, transportation, solid waste management, parking or
recreation services or for any other public purpose.__The
municipal officers may assess the cost of maintaining or
repairing an improvement against property owners in or abutting
the district in an amount not to exceed the cost of maintaining
or repairing the improvement. The amount assessed property owners
must be reasonable.

 
5.__Annual report.__The municipal officers shall report at
least annually to the property owners within and abutting the
district on the improvements within the district.

 
§5225.__Dissolution of capital improvement district

 
A district created under this chapter may not be dissolved
until the debt created by the improvement is finally discharged.__
The municipal officers may dissolve a district upon certification
of the discharge of debt.

 
SUMMARY

 
This bill authorizes municipalities to create a capital
improvement district for the purpose of making an infrastructure
improvement that primarily serves the property owners of the
district. The bill establishes the process for creating and
operating the district. It also establishes the process for
assessing costs of the improvement.


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