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.