Bill Text: IA SF2058 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to municipal park improvements by authorizing the establishment of municipal park improvement districts, the issuance of bonds, and the imposition of specified taxes.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2016-02-09 - Subcommittee, Taylor, Brase, and Guth. S.J. 190. [SF2058 Detail]
Download: Iowa-2015-SF2058-Introduced.html
Senate File 2058 - Introduced SENATE FILE BY McCOY, DVORSKY, DOTZLER, PETERSEN, HORN, DEARDEN, GRONSTAL, JOCHUM, and QUIRMBACH A BILL FOR 1 An Act relating to municipal park improvements by authorizing 2 the establishment of municipal park improvement districts, 3 the issuance of bonds, and the imposition of specified 4 taxes. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5080XS (6) 86 md/sc PAG LIN 1 1 Section 1. NEW SECTION. 386A.1 Definitions. 1 2 As used in this chapter, unless the context requires 1 3 otherwise: 1 4 1. "Book", "list", "record", or "schedule" kept by a county 1 5 auditor, assessor, treasurer, recorder, sheriff, or other 1 6 county officer means the county system as defined in section 1 7 445.1. 1 8 2. "Cost" of any improvement includes construction contracts 1 9 and the cost of engineering services, architectural services, 1 10 technical services, legal services, preliminary reports, 1 11 property valuations, estimates, plans, specifications, notices, 1 12 acquisition of real and personal property, consequential 1 13 damages or costs, easements, rights=of=way, supervision, 1 14 inspection, testing, publications, printing and sale of 1 15 bonds, interest during construction and for not more than six 1 16 months after construction is completed, and provisions for 1 17 contingencies. 1 18 3. "Improvement" means the acquisition, construction, 1 19 reconstruction, enlargement, improvement, and equipping of 1 20 recreation grounds, recreation buildings, juvenile playgrounds, 1 21 swimming pools, recreation centers, and parks, and the 1 22 acquisition of real estate for such improvements. 1 23 4. "Property" means real property as defined in section 4.1, 1 24 subsection 13, and in section 427A.1, subsection 1, paragraph 1 25 "h". 1 26 5. "Property owner" or "owner" means the owner of property, 1 27 as shown by the transfer books in the office of the county 1 28 auditor of the county in which the property is located. 1 29 6. All definitions in section 362.2 are incorporated by 1 30 reference as a part of this chapter, except as provided in 1 31 subsection 4 of this section. 1 32 Sec. 2. NEW SECTION. 386A.2 Authorization. 1 33 A city that proposes to establish a municipal park 1 34 improvement district, to provide for its existence and 1 35 operation, to provide for improvements for the district, to 2 1 authorize and issue bonds for the purposes of the district, 2 2 and to levy the taxes authorized by this chapter must do so in 2 3 accordance with the provisions of this chapter. 2 4 Sec. 3. NEW SECTION. 386A.3 Establishment of district. 2 5 1. A municipal park improvement district may be established 2 6 by action of the city council in accordance with the provisions 2 7 of this chapter. A district shall: 2 8 a. Be comprised of contiguous property wholly within the 2 9 boundaries of the city. A district shall be comprised only 2 10 of property that is zoned for residential, commercial, or 2 11 industrial uses. 2 12 b. Be given a descriptive name containing the words 2 13 "municipal park improvement district". 2 14 c. Be comprised of property related in some manner, 2 15 including but not limited to present or potential use, physical 2 16 location, condition, or relationship to an area, so as to be 2 17 benefited in any manner, including but not limited to a benefit 2 18 from present or potential use or enjoyment of the property, 2 19 by the operation of the district or of any improvement of the 2 20 district. 2 21 2. The council shall initiate proceedings for establishing 2 22 a district upon the filing with the city clerk of a petition 2 23 containing the following: 2 24 a. The signatures of at least twenty=five percent of 2 25 all owners of property within the proposed district. These 2 26 signatures must together represent ownership of property 2 27 with an assessed value of twenty=five percent or more of the 2 28 assessed value of all of the property in the proposed district. 2 29 b. A description of the boundaries of the proposed district 2 30 or a description of the property within the proposed district. 2 31 c. The name of the proposed district. 2 32 d. A statement of the maximum rate of tax that may be 2 33 imposed upon property within the district. The maximum rate 2 34 of tax may be stated in terms of separate maximum rates for the 2 35 debt service tax, the park improvement capital fund tax, and 3 1 the operation tax. 3 2 e. The purpose of the establishment of the district, which 3 3 may be stated generally or in terms of the relationship of the 3 4 property within the district or the interests of the owners of 3 5 property within the district or in terms of the improvements 3 6 proposed to be undertaken for the purposes of the district. 3 7 f. A statement that taxes levied for the municipal park 3 8 improvement district operation fund shall be used for the 3 9 purpose of paying maintenance expenses of improvements for a 3 10 specified length of time, along with any options to renew, if 3 11 the taxes are to be used for this maintenance purpose. 3 12 3. a. The council shall notify the city planning commission 3 13 upon receipt of a petition. It shall be the duty of the city 3 14 planning commission to make recommendations to the council in 3 15 regard to the proposed district. The city planning commission 3 16 shall, with due diligence, prepare an evaluative report for 3 17 the council on the merit and feasibility of the project. The 3 18 council shall not hold its public hearings or take further 3 19 action on the establishment of the district until it has 3 20 received the report of the city planning commission. In 3 21 addition to its report, the commission may, from time to time, 3 22 recommend to the council amendments and changes relating to the 3 23 project. 3 24 b. If no city planning commission exists, the council 3 25 shall notify the metropolitan or regional planning commission 3 26 upon receipt of a petition, and such metropolitan or regional 3 27 planning commission shall have the same duties set forth 3 28 in this subsection as the city planning commission. If no 3 29 metropolitan or regional planning commission exists, the 3 30 council shall notify the zoning commission upon receipt of 3 31 a petition, and the zoning commission shall have the same 3 32 duties set forth in this subsection as the city planning 3 33 commission. If no planning or zoning commission exists, the 3 34 council shall set a time and place for holding a public hearing 3 35 on establishment of a district upon receipt of a petition and 4 1 shall publish notice of the hearing as provided in section 4 2 362.3. 4 3 4. Upon receipt of the commission's final report, or after 4 4 the public hearing if applicable, the council shall set a time 4 5 and place for a meeting at which the council proposes to take 4 6 action for the establishment of the district and shall publish 4 7 notice of the meeting as provided in section 362.3. The clerk 4 8 shall send a copy of the notice by certified mail not less 4 9 than fifteen days before the meeting to each owner of property 4 10 within the proposed district at the owner's address as shown by 4 11 the records of the county auditor. If a property is shown to be 4 12 in the name of more than one owner at the same mailing address, 4 13 a single notice may be mailed addressed to all owners at that 4 14 address. Failure to receive a mailed notice is not grounds for 4 15 objection to the council taking any action authorized in this 4 16 chapter. 4 17 5. In addition to the time and place of the meeting for 4 18 hearing on the petition, the notice must state the following: 4 19 a. That a petition has been filed with the council asking 4 20 that a district be established. 4 21 b. The name of the district. 4 22 c. The purpose of the district. 4 23 d. The property proposed to be included in the district. 4 24 e. The maximum rates of tax which may be imposed upon the 4 25 property in the district. 4 26 6. At the time and place set in the notice the council 4 27 shall hear all owners of property in the proposed district or 4 28 residents of the city desiring to express their views. The 4 29 council must wait at least thirty days after the meeting has 4 30 been held before it may adopt an ordinance establishing a 4 31 district meeting the requirements of section 386A.3, subsection 4 32 1. Property included in the petition proposing the district 4 33 need not be included in the established district. However, the 4 34 council may not include property in the district that was not 4 35 included in the petition until the council has held another 5 1 meeting after it has published notice and mailed notice to 5 2 owners of the additional property, as required in subsection 4, 5 3 and containing the information required in subsection 5. 5 4 7. Adoption of the ordinance establishing a district 5 5 requires the affirmative vote of three=fourths of all of the 5 6 members of the council, or, in cities having but three members 5 7 of the council, the affirmative vote of two members. However, 5 8 if a remonstrance has been filed with the clerk signed by at 5 9 least twenty=five percent of all owners of property within the 5 10 proposed district representing ownership of property with an 5 11 assessed value of twenty=five percent or more of the assessed 5 12 value of all of the property in the proposed district, the 5 13 adoption of the ordinance requires a unanimous vote of the 5 14 council. 5 15 8. The city clerk shall cause a copy of the ordinance to be 5 16 filed in the office of the county recorder of each county in 5 17 which any property within the district is located. 5 18 9. At any time prior to adoption of an ordinance 5 19 establishing a district, the entire matter of establishing such 5 20 district shall be withdrawn from council consideration if a 5 21 petition objecting to establishing such district is filed with 5 22 the city clerk containing the signatures of at least forty 5 23 percent of all owners of property within the proposed district 5 24 or signatures which together represent ownership of property 5 25 with an assessed value of forty percent or more of the assessed 5 26 value of all property within the proposed district. 5 27 10. The adoption of an ordinance establishing a district 5 28 is a legislative determination that the property within the 5 29 district has the relationship required and includes all of the 5 30 property within the area that has that relationship in the 5 31 district. 5 32 11. Any resident or property owner of the city may appeal 5 33 the action and the decisions of the council, including the 5 34 establishment of the district and the levying of the proposed 5 35 taxes for the district, to the district court of the county 6 1 in which any part of the district is located within thirty 6 2 days after the date upon which the ordinance establishing the 6 3 district becomes effective, but the action and decision of 6 4 the council are final and conclusive unless the court finds 6 5 that the council exceeded its authority. An action may not 6 6 be brought questioning the regularity of the proceedings 6 7 pertaining to the establishment of a district or to the 6 8 validity of the district or to the propriety of the inclusion 6 9 or exclusion of any property within or from the district or to 6 10 the ability of the city to levy taxes in accordance with the 6 11 ordinance establishing the district after thirty days from the 6 12 date on which the ordinance establishing the district becomes 6 13 effective. 6 14 12. The procedural steps for the petitioning and 6 15 establishment of the district may be combined with the 6 16 procedural steps for the authorization of any improvement or 6 17 the procedural steps for the authorization of any tax or any 6 18 combination thereof. 6 19 13. The rate of debt service tax referred to in the petition 6 20 and the ordinance establishing the district shall only restrict 6 21 the amount of bonds which may be issued and shall not limit the 6 22 ability of the city to levy as necessary in subsequent years 6 23 to pay interest and amortize the principal of that amount of 6 24 bonds. 6 25 14. The ordinance establishing the district may provide 6 26 for the division of all of the property within the district 6 27 into two or more zones based upon a reasonable difference 6 28 in the relationship of the property or the interest of its 6 29 owners, whether the difference is qualitative or quantitative. 6 30 The ordinance establishing the district and establishing the 6 31 different zones may establish a different maximum rate of tax 6 32 for each zone or may provide that the rate of tax for a zone 6 33 shall be a certain set percentage of the maximum rate of tax 6 34 specified in the ordinance for levy in the district. 6 35 Sec. 4. NEW SECTION. 386A.4 Amendments to district. 7 1 1. The ordinance establishing the municipal park 7 2 improvement district may be amended and property may be added 7 3 to the district and the maximum rate of taxes specified in the 7 4 ordinance may be increased at any time in the same manner and 7 5 by the same procedure as for the establishment of a district. 7 6 Property added to a district shall be subject to all taxes 7 7 currently and subsequently levied, including debt service 7 8 levies for bonds previously or subsequently issued. 7 9 2. Action by the city council amending the ordinance 7 10 establishing the district, including adding eligible property 7 11 to the district or severing property from the district or 7 12 changing any maximum rate of taxes, shall be by ordinance 7 13 adopted by an affirmative vote of three=fourths of all of the 7 14 members of the council, or, in cities having but three members 7 15 of the council, the affirmative vote of two members. However, 7 16 if a remonstrance has been filed with the clerk signed by at 7 17 least twenty=five percent of all owners of property within the 7 18 district and all property proposed to be included representing 7 19 ownership of property with an assessed value of twenty=five 7 20 percent or more of the assessed value of all the property in 7 21 the district and all property proposed to be included, the 7 22 amending ordinance must be adopted by unanimous vote of the 7 23 council. 7 24 3. The clerk shall cause a copy of the amending ordinance to 7 25 be filed in the office of the county recorder of each county in 7 26 which any property within the district, as amended, is located. 7 27 4. At any time prior to council amendment of the ordinance 7 28 establishing the district, the entire matter of amending such 7 29 ordinance shall be withdrawn from council consideration if a 7 30 petition objecting to amending such ordinance is filed with the 7 31 city clerk containing either the signatures of at least forty 7 32 percent of all owners of property within the district and all 7 33 property proposed to be included or signatures which together 7 34 represent ownership of property with an assessed value of forty 7 35 percent or more of the assessed value of all property within 8 1 the district and all property proposed to be included. 8 2 5. Any resident or property owner of the city may appeal 8 3 the action or decisions of the council amending the ordinance 8 4 establishing the district to the district court of the county 8 5 in which any part of the district, as amended, is located, 8 6 within fifteen days after the date upon which the amending 8 7 ordinance becomes effective, but the action and decision of 8 8 the council are final and conclusive unless the court finds 8 9 that the council exceeded its authority. An action may not 8 10 be brought questioning the regularity of the proceedings 8 11 pertaining to the adoption of the amending ordinance or the 8 12 validity of the district, as amended, or the propriety of the 8 13 inclusion or exclusion of any property within or from the 8 14 amended district or the ability of the city to levy taxes 8 15 in accordance with the ordinance establishing the district, 8 16 as amended, after thirty days from the date upon which the 8 17 amending ordinance becomes effective. 8 18 6. All other provisions in section 386A.3 shall apply to 8 19 an amended district and to an ordinance amending the ordinance 8 20 establishing the district with the same effect as they apply 8 21 to the original district and the ordinance establishing the 8 22 original district. 8 23 Sec. 5. NEW SECTION. 386A.5 Dissolution. 8 24 1. A municipal park improvement district may be dissolved 8 25 and terminated by action of the city council repealing the 8 26 ordinance establishing the district, and any subsequent 8 27 ordinances amending the district, by an affirmative vote of 8 28 three=fourths of all members of the council, or, in cities 8 29 having but three members of the council, the affirmative vote 8 30 of two members. However, if a remonstrance has been filed 8 31 with the clerk signed by at least twenty=five percent of all 8 32 owners of property within the district representing ownership 8 33 of property with an assessed value of twenty=five percent or 8 34 more of the assessed value of all the property in the district, 8 35 the repeal of the ordinance establishing the district, and 9 1 any subsequent ordinances amending the district, requires a 9 2 unanimous vote of the council. 9 3 2. At any time prior to action of the council repealing 9 4 the ordinance establishing the district, and any subsequent 9 5 ordinances amending the district, the entire matter of 9 6 dissolving a district shall be withdrawn from council 9 7 consideration if a petition is filed with the city clerk 9 8 containing the signatures of at least forty percent of all 9 9 owners of property within the district or signatures which 9 10 together represent ownership of property with an assessed value 9 11 of forty percent or more of the assessed value of all property 9 12 within the district. 9 13 Sec. 6. NEW SECTION. 386A.6 Improvements. 9 14 A city proposing to construct an improvement the cost of 9 15 which is to be paid or financed under the provisions of this 9 16 chapter must do so in accordance with the provisions of this 9 17 section, as follows: 9 18 1. The city council shall initiate proceedings for a 9 19 proposed improvement upon receipt of a petition signed by at 9 20 least twenty=five percent of all owners of property within the 9 21 district representing ownership of property with an assessed 9 22 value of twenty=five percent or more of the assessed value of 9 23 all the property in the district. 9 24 2. Upon receipt of such a petition, the council shall notify 9 25 the city planning commission, if one exists, the metropolitan 9 26 or regional planning commission, if one exists, or the zoning 9 27 commission, if one exists, in the order set forth in section 9 28 386A.3, subsection 3. Upon notification by the council, the 9 29 commission shall prepare an evaluative report for the council 9 30 on the merit and feasibility of the improvement and carry out 9 31 all other duties as set forth in section 386A.3, subsection 9 32 3. If no planning or zoning commission exists, the council 9 33 shall set a time and place for a public hearing on a proposed 9 34 improvement upon receipt of a petition. 9 35 3. Upon receipt of the commission's report, or after the 10 1 public hearing if applicable, the council shall set a time 10 2 and place for a meeting at which the council proposes to take 10 3 action on the proposed improvement and shall publish and mail 10 4 notice as provided in section 386A.3, subsection 4. 10 5 4. The notice must include a statement that an improvement 10 6 has been proposed, the nature of the improvement, the source of 10 7 payment of the cost of the improvement, and the time and place 10 8 of the meeting. 10 9 5. At the time and place set in the notice, the council 10 10 shall hear all owners of property in the district or residents 10 11 of the city desiring to express their views. The council must 10 12 wait at least thirty days after the meeting has been held 10 13 before it may adopt a resolution ordering construction of the 10 14 improvement. The provisions of section 386A.3, subsections 7 10 15 and 9, relating to the adoption of the ordinance establishing a 10 16 district, the requisite vote for adoption, the remonstrance to 10 17 adoption, and the withdrawal of the entire matter from council 10 18 consideration, apply to the adoption of the resolution ordering 10 19 the construction of the improvement. 10 20 6. If the council orders the construction of the 10 21 improvement, it shall proceed to let contracts for construction 10 22 of the improvement in accordance with chapter 26. 10 23 7. The adoption of a resolution ordering the construction of 10 24 an improvement is a legislative determination that the proposed 10 25 improvement is in furtherance of the purposes of the district 10 26 and that all property in the district will be affected by the 10 27 construction of the improvement, or that all owners of property 10 28 in the district have an interest in the construction of the 10 29 improvement. 10 30 8. Any resident or property owner of the city may appeal the 10 31 action or decisions of the council ordering the construction 10 32 of the improvement to the district court of the county in 10 33 which any part of the district is located within thirty days 10 34 after the adoption of the resolution ordering construction of 10 35 the improvement, but the action and decisions of the council 11 1 are final and conclusive unless the court finds that the 11 2 council exceeded its authority. An action may not be brought 11 3 questioning the regularity of the proceedings pertaining to the 11 4 ordering of the construction of an improvement or to the right 11 5 of the city to apply moneys in the park improvement capital 11 6 fund referred to in this chapter to the payment of the costs 11 7 of the improvement or to the right of the city to issue bonds 11 8 referred to in this chapter for the payment of the costs of the 11 9 improvement or to the right of the city to levy taxes which 11 10 with any other taxes authorized by this chapter do not exceed 11 11 the maximum rate of tax that may be imposed upon property 11 12 within the district for the payment of principal of and 11 13 interest on bonds issued to pay the costs of the improvement 11 14 after thirty days from the date of adoption of the resolution 11 15 ordering construction of the improvement. 11 16 9. The procedural steps contained in this section may be 11 17 combined with the procedural steps for the petitioning and 11 18 establishment of the district or the procedural steps for the 11 19 authorization of any tax or any combination thereof. 11 20 Sec. 7. NEW SECTION. 386A.7 Operation tax == municipal park 11 21 improvement district operation fund. 11 22 A city may establish a municipal park improvement district 11 23 operation fund and may certify taxes not to exceed the rate 11 24 limitation specified in the ordinance establishing the 11 25 district, or any amendment to the ordinance, each year to 11 26 be levied for the fund against all of the property in the 11 27 district for the purpose of paying the administrative expenses 11 28 of the district, which may include but are not limited to 11 29 administrative personnel salaries, a separate administrative 11 30 office, planning costs, including consultation fees, 11 31 engineering fees, architectural fees, and legal fees, and all 11 32 other expenses reasonably associated with the administration 11 33 of the district and the fulfilling of the purposes of the 11 34 district. The taxes levied for this fund may also be used for 11 35 the purpose of paying maintenance expenses of improvements 12 1 for a specified length of time with one or more options to 12 2 renew if such is clearly stated in the petition requesting the 12 3 council to authorize construction of the improvement, whether 12 4 or not such petition is combined with the petition requesting 12 5 establishment of a district. A tax levied under this section 12 6 is not subject to the levy limitation in section 384.1. 12 7 Sec. 8. NEW SECTION. 386A.8 Municipal park improvement 12 8 capital tax == fund. 12 9 A city may establish a municipal park improvement capital 12 10 fund for a district and may certify taxes not to exceed the 12 11 rate specified in the ordinance establishing the district, or 12 12 any subsequent amendment thereto, each year to be levied for 12 13 the fund against all of the property in the district for the 12 14 purpose of accumulating moneys for the financing or payment of 12 15 a part or all of the costs of any improvement. A tax levied 12 16 under this section is not subject to the levy limitations in 12 17 section 384.1 or 384.7. 12 18 Sec. 9. NEW SECTION. 386A.9 Debt service tax == fund. 12 19 A city shall establish a municipal park improvement district 12 20 debt service fund whenever any municipal park improvement 12 21 district bonds are issued and outstanding, other than revenue 12 22 bonds, and shall certify taxes to be levied against all of the 12 23 property in the district for the district debt service fund in 12 24 the amount necessary to pay interest as it becomes due and the 12 25 amount necessary to pay, or to create a sinking fund to pay, 12 26 the principal at maturity of all municipal park improvement 12 27 district bonds as authorized in section 386A.10, issued by the 12 28 city. 12 29 Sec. 10. NEW SECTION. 386A.10 Municipal park improvement 12 30 district bonds. 12 31 1. A city may issue and sell municipal park improvement 12 32 district bonds at public or private sale payable from taxes 12 33 which must be levied in accordance with chapter 76. The 12 34 bonds are payable from the levy of unlimited ad valorem taxes 12 35 on all the taxable property within the district through the 13 1 district debt service fund authorized by section 386A.9. When 13 2 municipal park improvement district bonds are issued and taxes 13 3 are levied, the taxes shall continue to be levied until the 13 4 bonds and interest thereon are paid in full, against all of 13 5 the taxable property that was included in the district at the 13 6 time of the issuance of the bonds, regardless of any subsequent 13 7 severance of property from the district or the dissolution of 13 8 the district. In addition, all property added to a district 13 9 shall be subject to such taxes pursuant to section 386A.4, 13 10 subsection 1. 13 11 2. The proceeds of the sale of the bonds may be used to pay 13 12 any or all of the costs of an improvement or may be used to pay 13 13 any legal indebtedness incurred for the cost of an improvement, 13 14 including bonds or warrants previously issued to pay the costs 13 15 of an improvement, or the bonds may be exchanged for the 13 16 evidences of such legal indebtedness. 13 17 3. Before the city council may institute proceedings for 13 18 the issuance of bonds, it shall proceed in the same manner 13 19 as is required for instituting proceedings for the issuance 13 20 of bonds for an essential corporate purpose as provided in 13 21 section 384.25, subsection 2, and all of the provisions of that 13 22 subsection apply to bonds issued pursuant to this section. 13 23 4. A city may issue bonds authorized by this section 13 24 pursuant to a resolution adopted at a regular or special 13 25 meeting of the city council by an affirmative vote of a 13 26 majority of the total members to which the council is entitled. 13 27 The proceeds of a single bond issue may be used for more than 13 28 one improvement. 13 29 5. The provisions of sections 384.29, 384.30, and 384.31 13 30 apply to bonds issued pursuant to this section, except that the 13 31 bonds shall be designated "municipal park improvement district 13 32 bonds". 13 33 6. An action may not be brought questioning the legality of 13 34 bonds issued pursuant to this section or the power of a city 13 35 to issue the bonds or the effectiveness of any proceedings 14 1 relating to the authorization and issuance of the bonds after 14 2 thirty days from the time the bonds are ordered issued by the 14 3 city. 14 4 Sec. 11. NEW SECTION. 386A.11 Payment for improvements. 14 5 The costs of improvements may be paid from any of the 14 6 following sources or a combination of the following sources: 14 7 1. The municipal park improvement capital fund referred to 14 8 in section 386A.8. 14 9 2. The proceeds of bonds referred to in section 386A.10. 14 10 3. Any other funds of the city which are legally available 14 11 to pay all or a portion of the cost of an improvement. The 14 12 fact that an improvement is initiated under the provisions of 14 13 this chapter, or that any of the costs of an improvement or 14 14 any part of an improvement are being paid under the provisions 14 15 of this chapter, shall not preclude the city from paying any 14 16 costs of an improvement from any fund from which the city might 14 17 otherwise have been able to pay such costs. In addition, 14 18 and not in limitation of the foregoing, an improvement that 14 19 constitutes an essential corporate purpose or a general 14 20 corporate purpose, as defined in section 384.24, subsections 3 14 21 and 4, may be financed in whole or in part with the proceeds of 14 22 the issuance of general obligation bonds of the city pursuant 14 23 to the provisions of chapter 384, division III. 14 24 4. Payment for the costs of an improvement may also be 14 25 made in warrants drawn on any fund from which payment for the 14 26 improvement is authorized by this chapter. If such funds are 14 27 depleted, anticipatory warrants may be issued bearing a rate 14 28 of interest not exceeding that permitted by chapter 74A, which 14 29 do not constitute a violation of section 384.10, even if the 14 30 collection of taxes or income received from the sale of bonds 14 31 applicable to the improvement is after the end of the fiscal 14 32 year in which the warrants are issued. If the city arranges 14 33 for the private sale of anticipatory warrants, the warrants 14 34 may be sold and the proceeds used to pay the costs of the 14 35 improvement. 15 1 Sec. 12. NEW SECTION. 386A.12 Low=income tax abatement == 15 2 petition. 15 3 1. If a residential property owner within the district has 15 4 annual household income that is less than one hundred percent 15 5 of the federal poverty level based on the number of people in 15 6 the owner's household, as defined by the most recently revised 15 7 poverty income guidelines published by the United States 15 8 department of health and human services, the owner may file a 15 9 petition, duly sworn to, with the city council stating that 15 10 fact and giving a statement of parcels, as defined in section 15 11 445.1, owned or possessed by the petitioner and used by the 15 12 owner as a primary residence, and other information as the city 15 13 council may require. The petition shall be filed with the city 15 14 clerk by March 1 of the current tax year. 15 15 2. If the owner satisfies the requirements of subsection 1, 15 16 the city council shall order the county treasurer to suspend 15 17 the collection of all taxes imposed under this chapter on the 15 18 petitioner's property used as a primary residence for the 15 19 current year and each of the two years immediately following 15 20 the current year. 15 21 3. An abatement of taxes under this section is rescinded 15 22 when the property is sold or transferred. 15 23 4. Following expiration of the three=year abatement period 15 24 approved under subsection 2, a new petition must be filed by 15 25 the owner. 15 26 5. If an abatement petition is denied by the city council, 15 27 the property owner may appeal the decision of the city council 15 28 to the district court of the county in which any part of the 15 29 city is located within fifteen days after the date of the 15 30 denial, but action of the council is final and conclusive 15 31 unless the court finds that the council exceeded its authority. 15 32 Sec. 13. NEW SECTION. 386A.13 Independent provisions. 15 33 The provisions of this chapter with respect to notice, 15 34 hearing, and appeal for the construction of improvements and 15 35 the issuance and sale of bonds are in lieu of the provisions 16 1 contained in chapters 73A and 75, or any other law, unless 16 2 specifically referred to and made applicable by this chapter. 16 3 EXPLANATION 16 4 The inclusion of this explanation does not constitute agreement with 16 5 the explanation's substance by the members of the general assembly. 16 6 This bill relates to municipal park improvements by 16 7 authorizing the establishment of municipal park improvement 16 8 districts, the issuance of municipal park improvement district 16 9 bonds, and the imposition of specified taxes. 16 10 Under new Code chapter 386A, a municipal park improvement 16 11 district (district) may be established by action of the 16 12 city council for the purpose of undertaking improvements 16 13 within the district. The bill defines "improvement" to be 16 14 the acquisition, construction, reconstruction, enlargement, 16 15 improvement, and equipping of recreation grounds, recreation 16 16 buildings, juvenile playgrounds, swimming pools, recreation 16 17 centers, and parks, and the acquisition of real estate 16 18 therefor. 16 19 A district must be comprised of contiguous property 16 20 wholly within the boundaries of the city, be comprised only 16 21 of property that is zoned for residential, commercial, or 16 22 industrial uses, and be comprised of property related in some 16 23 manner, including but not limited to present or potential use, 16 24 physical location, condition, or relationship to an area so 16 25 as to be benefited in any manner, including but not limited 16 26 to a benefit from present or potential use or enjoyment of 16 27 the property, by the operation of the district or of any 16 28 improvement of the district. 16 29 The proceedings for establishing a district are initiated 16 30 upon the filing of a petition containing the signatures of at 16 31 least 25 percent of all owners of property within the proposed 16 32 district. These signatures must together represent ownership 16 33 of property with an assessed value of 25 percent or more of the 16 34 assessed value of all of the property in the proposed district. 16 35 The petition must also, in part, include a description of the 17 1 boundaries of the proposed district or a description of the 17 2 property within the proposed district, the name of the proposed 17 3 district, a statement of the maximum rate of tax that may be 17 4 imposed upon property within the district, and the purpose of 17 5 the establishment of the district. 17 6 Following receipt of a petition, the city council must 17 7 notify the city planning commission. It is the duty of 17 8 the city planning commission to make recommendations to the 17 9 council in regard to the proposed district. The bill provides 17 10 alternative review procedures if the city does not have a city 17 11 planning commission. 17 12 Upon receipt of the planning commission's final report, the 17 13 city council is to set a time and place for a meeting at which 17 14 the council proposes to take action for the establishment of 17 15 the district. In addition to the time and place of the meeting 17 16 for hearing on the petition, the notice of the meeting must 17 17 state that a petition has been filed with the council asking 17 18 that a district be established, the name of the district, the 17 19 purpose of the district, the property proposed to be included 17 20 in the district, and the maximum rate of tax which may be 17 21 imposed upon the property in the district. 17 22 At the meeting, the city council is required to hear all 17 23 owners of property in the proposed district or residents of 17 24 the city desiring to express their views. The council must 17 25 wait at least 30 days after the meeting has been held before 17 26 it may adopt an ordinance establishing a district. Property 17 27 included in the proposed district need not be included in the 17 28 established district. However, property may not be included in 17 29 the district that was not included in the petition proposing 17 30 the district until the council has held another meeting for 17 31 hearing. 17 32 Adoption of the ordinance establishing a district requires 17 33 the affirmative vote of three=fourths of all of the members of 17 34 the council, or, in cities having a three=member council, the 17 35 affirmative vote of two members. However, if a remonstrance 18 1 has been filed with the city clerk signed by at least 25 18 2 percent of all owners of property within the proposed district 18 3 representing ownership of property with an assessed value of 25 18 4 percent or more of the assessed value of all of the property in 18 5 the proposed district, the adoption of the ordinance requires a 18 6 unanimous vote of the council. Additionally under the bill, 18 7 at any time prior to adoption of an ordinance establishing a 18 8 district, the entire matter of establishing such district shall 18 9 be withdrawn from council consideration if a petition objecting 18 10 to establishing such district is filed with the city clerk 18 11 containing the signatures of at least 40 percent of all owners 18 12 of property within the proposed district or signatures which 18 13 together represent ownership of property with an assessed value 18 14 of 40 percent or more of the assessed value of all property 18 15 within the proposed district. 18 16 The ordinance establishing the district may provide for 18 17 the division of all of the property within the district into 18 18 two or more zones based upon a reasonable difference in the 18 19 relationship of the property or the interest of property 18 20 owners. The ordinance may establish a different maximum rate 18 21 of tax for each zone in the district. 18 22 The bill specifies the procedures for residents of the city 18 23 and property owners to appeal establishment of a district. 18 24 The council shall initiate proceedings for a proposed park 18 25 improvement in a district upon receipt of a petition signed 18 26 by at least 25 percent of all owners of property within the 18 27 district representing ownership of property with an assessed 18 28 value of 25 percent or more of the assessed value of all 18 29 the property in the district. The notice, meeting, and 18 30 approval requirements for an improvement in the district are 18 31 similar to those for establishment of the district. The bill, 18 32 however, provides for the consolidation of procedural steps 18 33 for the petitioning and establishment of the district with 18 34 the procedural steps for the authorization of any improvement 18 35 or with the procedural steps for the authorization of any 19 1 tax, or any combination thereof. The bill also specifies 19 2 the procedures and requirements for amending the ordinance 19 3 establishing the district and for dissolution of the district. 19 4 Contracts for improvements within a district must be entered 19 5 into in accordance with Code chapter 26. 19 6 The bill authorizes a city to establish a municipal park 19 7 improvement district operation fund, and the city may certify 19 8 taxes not to exceed the rate limitation as established in 19 9 the ordinance establishing the district for the purpose of 19 10 paying the administrative expenses of the district. The taxes 19 11 levied for this fund may also be used for the purpose of paying 19 12 maintenance expenses of improvements for a specified length 19 13 of time, and may be renewed, if such is clearly stated in the 19 14 petition requesting the improvement. 19 15 A city may also establish a municipal park improvement 19 16 capital fund for a district, and the city may certify taxes 19 17 not to exceed the rate specified in the ordinance establishing 19 18 the district for the purpose of accumulating moneys for the 19 19 financing or payment of a part or all of the costs of any 19 20 improvement. 19 21 The bill authorizes a city to issue and sell municipal 19 22 park improvement district bonds. The proceeds of the sale 19 23 of the bonds may be used to pay any or all of the costs of 19 24 an improvement or may be used to pay any legal indebtedness 19 25 incurred for the cost of an improvement, including bonds or 19 26 warrants previously issued to pay the costs of an improvement, 19 27 or the bonds may be exchanged for the evidences of such legal 19 28 indebtedness. 19 29 A city shall establish a municipal park improvement district 19 30 debt service fund whenever any municipal park improvement 19 31 district bonds are issued and outstanding, other than revenue 19 32 bonds, and shall certify taxes to be levied against all of 19 33 the property in the district for the debt service fund in the 19 34 amount necessary to pay interest as it becomes due. 19 35 The bill provides that if a residential property owner 20 1 within the district has annual household income that is less 20 2 than 100 percent of the federal poverty level, the owner may 20 3 file a petition with the city clerk for abatement of the taxes 20 4 imposed under the authority contained in new Code chapter 20 5 386A. If the owner satisfies the requirements for abatement, 20 6 the city council shall order the county treasurer to suspend 20 7 the collection of all municipal park improvement district 20 8 taxes imposed on the petitioner's property used as a primary 20 9 residence for the current year and each of the two years 20 10 immediately following the current year. An approved abatement 20 11 of taxes is rescinded when the property is sold or transferred. 20 12 Following expiration of the three=year abatement period, a 20 13 new petition must be filed by the property owner. The bill 20 14 provides for appeal of denial of an abatement petition to the 20 15 district court of the county in which any part of the city is 20 16 located. LSB 5080XS (6) 86 md/sc
