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H0653...............................................by REVENUE AND TAXATION
URBAN RENEWAL AGENCIES - Amends existing law relating to urban renewal
agencies to establish a fiscal year and audit requirements; to require
compliance with the public records law, open meeting law, competitive
bidding requirements and ethics in government law; to add a condition
governing the duration of a revenue allocation financing provision; to
require statements of termination date and disposition and retention of
assets upon termination to be included in an urban renewal plan; and to add
a value which may be included on a new construction roll.
02/13 House intro - 1st rdg - to printing
02/14 Rpt prt - to Rev/Tax
02/26 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
02/28 3rd rdg - PASSED - 66-0-4
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Block,
Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark, Collins,
Crow, Cuddy, Denney, Ellis, Ellsworth, Eskridge, Field(13),
Field(20), Gould, Hadley, Hammond, Harwood, Henbest, Higgins,
Hornbeck, Jaquet, Jones, Kellogg(Duncan), Kendell, Kunz, Lake,
Langford, Loertscher, Mader, Martinez, McKague, Meyer, Montgomery,
Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts,
Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smith(23),
Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Wood, Young, Mr.
Speaker
NAYS -- None
Absent and excused -- Black, Deal, Gagner, Mortensen
Floor Sponsor - Kellogg(Duncan)
Title apvd - to Senate
03/01 Senate intro - 1st rdg - to Loc Gov
03/07 Rpt out - rec d/p - to 2nd rdg
03/08 2nd rdg - to 3rd rdg
03/14 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia,
Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder,
Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Thorne
Title apvd - to House
03/15 To enrol - rpt enrol - Sp signed
Pres signed
03/15 To Governor
03/20 Governor signed
Session Law Chapter 143
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 653
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO URBAN RENEWAL; AMENDING SECTION 50-2006, IDAHO CODE, TO ESTABLISH
3 A FISCAL YEAR AND AUDIT REQUIREMENTS, TO REQUIRE COMPLIANCE WITH PUBLIC
4 RECORDS LAW, OPEN MEETING LAW, COMPETITIVE BIDDING REQUIREMENTS AND ETHICS
5 IN GOVERNMENT LAW AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
6 50-2903, IDAHO CODE, TO DEFINE ADDITIONAL TERMS AND TO MAKE A TECHNICAL
7 CORRECTION; AMENDING SECTION 50-2904, IDAHO CODE, TO ADD A CONDITION GOV-
8 ERNING THE DURATION OF A REVENUE ALLOCATION FINANCING PROVISION; AMENDING
9 SECTION 50-2905, IDAHO CODE, TO REQUIRE STATEMENTS OF TERMINATION DATE AND
10 DISPOSITION AND RETENTION OF ASSETS UPON TERMINATION TO BE INCLUDED IN AN
11 URBAN RENEWAL PLAN; AMENDING SECTION 50-2909, IDAHO CODE, TO REQUIRE
12 FINANCING OBLIGATIONS TO BE SATISFIED BEFORE ALLOCATIONS CEASE AND TO MAKE
13 TECHNICAL CORRECTIONS; AMENDING SECTION 63-301A, IDAHO CODE, TO ADD A
14 VALUE WHICH MAY BE INCLUDED ON A NEW CONSTRUCTION ROLL; AMENDING SECTION
15 63-803, IDAHO CODE, TO DEFINE TAXABLE VALUE TO INCLUDE INCREMENT VALUE
16 WHEN REVENUE IS SUFFICIENT TO COVER EXPENSES; AND AMENDING SECTION
17 63-1312, IDAHO CODE, TO INCLUDE INCREMENT VALUE IN TAXABLE VALUE WHEN REV-
18 ENUE IS SUFFICIENT TO COVER EXPENSES.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Section 50-2006, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 50-2006. URBAN RENEWAL AGENCY. (a) There is hereby created in each munic-
23 ipality an independent public body corporate and politic to be known as the
24 "urban renewal agency" for the municipality:; provided, that such agency shall
25 not transact any business or exercise its powers hereunder until or unless the
26 local governing body has made the findings prescribed in section 50-2005,
27 Idaho Code.
28 (b) Upon the local governing body making such findings, the urban renewal
29 agency is authorized to transact the business and exercise the powers hereun-
30 der by a board of commissioners to be appointed or designated as follows:
31 (1) The mayor, by and with the advice and consent of the local governing
32 body, shall appoint a board of commissioners of the urban renewal agency
33 which shall consist of not less than three (3) commissioners nor more than
34 nine (9) commissioners. In the order of appointment, the mayor shall des-
35 ignate the number of commissioners to be appointed, and the term of each,
36 provided that the original term of office of no more than two (2) commis-
37 sioners shall expire in the same year. The commissioners shall serve for
38 terms not to exceed five (5) years, from the date of appointment, except
39 that all vacancies shall be filled for the unexpired term. For ineffi-
40 ciency or neglect of duty or misconduct in office, a commissioner may be
41 removed only after a hearing and after he shall have been given a copy of
42 the charges at least ten (10) days prior to such hearings and have had an
43 opportunity to be heard in person or by counsel.
2
1 (2) By enactment of an ordinance, the local governing body may appoint
2 and designate itself to be the board of commissioners of the urban renewal
3 agency, in which case all the rights, powers, duties, privileges and immu-
4 nities vested by the urban renewal law of 1965, and as amended, in an
5 appointed board of commissioners, shall be vested in the local governing
6 body, who shall, in all respects when acting as an urban renewal agency,
7 be acting as an arm of state government, entirely separate and distinct
8 from the municipality, to achieve, perform and accomplish the public pur-
9 poses prescribed and provided by said urban renewal law of 1965, and as
10 amended.
11 (3) By enactment of an ordinance, the local governing body may terminate
12 the appointed board of commissioners and thereby appoint and designate
13 itself as the board of commissioners of the urban renewal agency.
14 (c) A commissioner shall receive no compensation for his services but
15 shall be entitled to the necessary expenses, including traveling expenses,
16 incurred in the discharge of his duties. Each commissioner shall hold office
17 until his successor has been appointed and has qualified. A certificate of the
18 appointment or reappointment of any commissioner shall be filed with the clerk
19 of the municipality and such certificate shall be conclusive evidence of the
20 due and proper appointment of such commissioner.
21 The powers of an urban renewal agency shall be exercised by the commis-
22 sioners thereof. A majority of the commissioners shall constitute a quorum for
23 the purpose of conducting business and exercising the powers of the agency and
24 for all other purposes. Action may be taken by the agency upon a vote of a
25 majority of the commissioners present, unless in any case the bylaws shall
26 require a larger number.
27 The mayor may appoint a chairman, a cochairman, or a vice-chairman vice
28 chairman for a term of office of one (1) year from among the commissioners,
29 thereafter the commissioners shall elect the chairman, cochairman or vice-
30 chairman vice chairman for a term of one (1) year from among their members. An
31 agency may employ an executive director, technical experts and such other
32 agents and employees, permanent and temporary, as it may require, and deter-
33 mine their qualifications, duties and compensation. For such legal service as
34 it may require, an agency may employ or retain its own counsel and legal
35 staff. An agency authorized to transact business and exercise powers under
36 this act shall file, with the local governing body, on or before March 31 of
37 each year a report of its activities for the preceding calendar year, which
38 report shall include a complete financial statement setting forth its assets,
39 liabilities, income and operating expense as of the end of such calendar year.
40 At the time of filing the report, the agency shall publish in a newspaper of
41 general circulation in the community a notice to the effect that such report
42 has been filed with the municipality and that the report is available for
43 inspection during business hours in the office of the city clerk or county
44 recorder and in the office of the agency.
45 (d) An urban renewal agency shall have the same fiscal year as a munici-
46 pality and shall be subject to the same audit requirements as a municipality.
47 An urban renewal agency shall be required to prepare and file with its local
48 governing body an annual financial report and shall prepare, approve and adopt
49 an annual budget for filing with the local governing body, for informational
50 purposes. A budget means an annual estimate of revenues and expenses for the
51 following fiscal year of the agency.
52 (e) An urban renewal agency shall comply with the public records law pur-
53 suant to chapter 3, title 9, Idaho Code, open meetings law pursuant to chapter
54 23, title 67, Idaho Code, the ethics in government law pursuant to chapter 7,
55 title 59, Idaho Code, and the competitive bidding provisions of section
3
1 50-341, Idaho Code.
2 SECTION 2. That Section 50-2903, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 50-2903. DEFINITIONS. The following terms used in this chapter shall have
5 the following meanings, unless the context otherwise requires:
6 (1) "Act" or "this act" means this revenue allocation act.
7 (2) "Agency" or "urban renewal agency" means a public body created pursu-
8 ant to section 50-2006, Idaho Code.
9 (3) "Authorized municipality" or "municipality" means any county or
10 incorporated city which has established an urban renewal agency, or by ordi-
11 nance has identified and created a competitively disadvantaged border commu-
12 nity.
13 (4) "Base assessment roll" means the equalized assessment rolls, for all
14 classes of taxable property, on January 1 of the year in which the local gov-
15 erning body of an authorized municipality passes an ordinance adopting or mod-
16 ifying an urban renewal plan containing a revenue allocation financing provi-
17 sion, except that the base assessment roll shall be adjusted as follows: the
18 equalized assessment valuation of the taxable property in a revenue allocation
19 area as shown upon the base assessment roll shall be reduced by the amount by
20 which the equalized assessed valuation as shown on the base assessment roll
21 exceeds the current equalized assessed valuation of any taxable property
22 located in the revenue allocation area, and by the equalized assessed valua-
23 tion of taxable property in such revenue allocation area that becomes exempt
24 from taxation subsequent to the date of the base assessment roll. The equal-
25 ized assessed valuation of the taxable property in a revenue allocation area
26 as shown on the base assessment roll shall be increased by the equalized
27 assessed valuation, as of the date of the base assessment roll, of taxable
28 property in such revenue allocation area that becomes taxable after the date
29 of the base assessment roll.
30 (5) "Budget" means an annual estimate of revenues and expenses for the
31 following fiscal year of the agency. An agency shall, by September 1 of each
32 calendar year, adopt and publish, as described in section 50-1002, Idaho Code,
33 a budget for the next fiscal year. An agency may amend its adopted budget
34 using the same procedures as used for adoption of the budget. For the fiscal
35 year that immediately predates the termination date for an urban renewal plan
36 involving a revenue allocation area or will include the termination date, the
37 agency shall adopt and publish a budget specifically for the projected reve-
38 nues and expenses of the plan and make a determination as to whether the reve-
39 nue allocation area can be terminated before the January 1 of the termination
40 year pursuant to the terms of section 50-2909(4), Idaho Code. In the event
41 that the agency determines that current tax year revenues are sufficient to
42 cover all estimated expenses for the current year and all future years, by
43 September 1 the agency shall adopt a resolution advising and notifying the
44 local governing body, the county auditor, and the state tax commission and
45 recommending the adoption of an ordinance for termination of the revenue allo-
46 cation area by December 31 of the current year and declaring a surplus to be
47 distributed as described in section 50-2909, Idaho Code, should a surplus be
48 determined to exist. The agency shall cause the ordinance to be filed with the
49 office of the county recorder and the Idaho state tax commission as provided
50 in section 63-215, Idaho Code. Upon notification of revenues sufficient to
51 cover expenses as provided herein, the increment value of that revenue alloca-
52 tion area shall be included in the net taxable value of the appropriate taxing
53 districts when calculating the subsequent property tax levies pursuant to sec-
4
1 tion 63-803, Idaho Code. The increment value shall also be included in subse-
2 quent notification of taxable value for each taxing district pursuant to sec-
3 tion 63-1312, Idaho Code, and subsequent certification of actual and adjusted
4 market values for each school district pursuant to section 63-315, Idaho Code.
5 (6) "Clerk" means the clerk of the municipality.
6 (67) "Competitively disadvantaged border community area" means a parcel
7 of land consisting of at least forty (40) acres which is situated within the
8 jurisdiction of a county or an incorporated city and within twenty-five (25)
9 miles of a state or international border, which the governing body of such
10 county or incorporated city has determined by ordinance is disadvantaged in
11 its ability to attract business, private investment, or commercial develop-
12 ment, as a result of a competitive advantage in the adjacent state or nation
13 resulting from inequities or disparities in comparative sales taxes, income
14 taxes, property taxes, population or unique geographic features.
15 (78) "Deteriorated area" means:
16 (a) Any area, including a slum area, in which there is a predominance of
17 buildings or improvements, whether residential or nonresidential, which by
18 reason of dilapidation, deterioration, age or obsolescence, inadequate
19 provision for ventilation, light, air, sanitation, or open spaces, high
20 density of population and overcrowding, or the existence of conditions
21 which endanger life or property by fire and other causes, or any combina-
22 tion of such factors, is conducive to ill health, transmission of disease,
23 infant mortality, juvenile delinquency, or crime, and is detrimental to
24 the public health, safety, morals or welfare.
25 (b) Any area which by reason of the presence of a substantial number of
26 deteriorated or deteriorating structures, predominance of defective or
27 inadequate street layout, faulty lot layout in relation to size, adequacy,
28 accessibility or usefulness, insanitary or unsafe conditions, deteriora-
29 tion of site or other improvements, diversity of ownership, tax or special
30 assessment delinquency exceeding the fair value of the land, defective or
31 unusual conditions of title, or the existence of conditions which endanger
32 life or property by fire and other causes, or any combination of such fac-
33 tors, results in economic underdevelopment of the area, substantially
34 impairs or arrests the sound growth of a municipality, retards the provi-
35 sion of housing accommodations or constitutes an economic or social lia-
36 bility and is a menace to the public health, safety, morals or welfare in
37 its present condition and use.
38 (c) Any area which is predominately open and which because of obsolete
39 platting, diversity of ownership, deterioration of structures or improve-
40 ments, or otherwise, results in economic underdevelopment of the area or
41 substantially impairs or arrests the sound growth of a municipality. The
42 provisions of section 50-2008(d), Idaho Code, shall apply to open areas.
43 (d) Any area which the local governing body certifies is in need of rede-
44 velopment or rehabilitation as a result of a flood, storm, earthquake, or
45 other natural disaster or catastrophe respecting which the governor of the
46 state has certified the need for disaster assistance under any federal
47 law.
48 (e) Any area which by reason of its proximity to the border of an adja-
49 cent state is competitively disadvantaged in its ability to attract pri-
50 vate investment, business or commercial development which would promote
51 the purposes of this chapter.
52 (89) "Facilities" means land, rights in land, buildings, structures,
53 machinery, landscaping, extension of utility services, approaches, roadways
54 and parking, handling and storage areas, and similar auxiliary and related
55 facilities.
5
1 (10) "Increment value" means the total value calculated by summing the
2 differences between the current equalized value of each taxable property in
3 the revenue allocation area and that property's current base value on the base
4 assessment roll, provided such difference is a positive value.
5 (911) "Local governing body" means the city council or board of county
6 commissioners of a municipality.
7 (102) "Plan" or "urban renewal plan" means a plan, as it exists or may
8 from time to time be amended, prepared and approved pursuant to section
9 50-2008, Idaho Code, and any method or methods of financing such plan, which
10 methods may include revenue allocation financing provisions.
11 (113) "Project" or "urban renewal project" or "competitively disadvantaged
12 border areas" may include undertakings and activities of a municipality in an
13 urban renewal area for the elimination of deteriorated or deteriorating areas
14 and for the prevention of the development or spread of slums and blight, and
15 may involve slum clearance and redevelopment in an urban renewal area, or
16 rehabilitation or conservation in an urban renewal area, or any combination or
17 part thereof in accordance with an urban renewal plan. Such undertakings and
18 activities may include:
19 (a) Acquisition of a deteriorated area or a deteriorating area or portion
20 thereof;
21 (b) Demolition and removal of buildings and improvement;
22 (c) Installation, construction, or reconstruction of streets, utilities,
23 parks, playgrounds, open space, off-street parking facilities, public
24 facilities, public recreation and entertainment facilities or buildings
25 and other improvements necessary for carrying out, in the urban renewal
26 area or competitively disadvantaged border community area, the urban
27 renewal objectives of this act in accordance with the urban renewal plan
28 or the competitively disadvantaged border community area ordinance.
29 (d) Disposition of any property acquired in the urban renewal area or the
30 competitively disadvantaged border community area (including sale, initial
31 leasing or retention by the agency itself) or the municipality creating
32 the competitively disadvantaged border community area at its fair value
33 for uses in accordance with the urban renewal plan except for disposition
34 of property to another public body;
35 (e) Carrying out plans for a program of voluntary or compulsory repair
36 and rehabilitation of buildings or other improvements in accordance with
37 the urban renewal plan;
38 (f) Acquisition of real property in the urban renewal area or the compet-
39 itively disadvantaged border community area which, under the urban renewal
40 plan, is to be repaired or rehabilitated for dwelling use or related
41 facilities, repair or rehabilitation of the structures for guidance pur-
42 poses, and resale of the property;
43 (g) Acquisition of any other real property in the urban renewal area or
44 competitively disadvantaged border community area where necessary to elim-
45 inate unhealthful, insanitary or unsafe conditions, lessen density, elimi-
46 nate obsolete or other uses detrimental to the public welfare, or other-
47 wise to remove or to prevent the spread of blight or deterioration, or to
48 provide land for needed public facilities or where necessary to accomplish
49 the purposes for which a competitively disadvantaged border community area
50 was created by ordinance;
51 (h) Lending or investing federal funds; and
52 (i) Construction of foundations, platforms and other like structural
53 forms.
54 (124) "Project costs" includes, but is not limited to:
55 (a) Capital costs, including the actual costs of the construction of pub-
6
1 lic works or improvements, facilities, buildings, structures, and perma-
2 nent fixtures; the demolition, alteration, remodeling, repair or recon-
3 struction of existing buildings, structures, and permanent fixtures; the
4 acquisition of equipment; and the clearing and grading of land;
5 (b) Financing costs, including interest during construction and capital-
6 ized debt service or repair and replacement or other appropriate reserves;
7 (c) Real property assembly costs, meaning any deficit incurred from the
8 sale or lease by a municipality of real or personal property within a rev-
9 enue allocation district;
10 (d) Professional service costs, including those costs incurred for archi-
11 tectural, planning, engineering, and legal advice and services;
12 (e) Direct administrative costs, including reasonable charges for the
13 time spent by municipal employees in connection with the implementation of
14 a project plan;
15 (f) Relocation costs;
16 (g) Other costs incidental to any of the foregoing costs.
17 (135) "Revenue allocation area" means that portion of an urban renewal
18 area or competitively disadvantaged border community area the equalized
19 assessed valuation (as shown by the taxable property assessment rolls) of
20 which the local governing body has determined, on and as a part of an urban
21 renewal plan, is likely to increase as a result of the initiation of an urban
22 renewal project or competitively disadvantaged border community area. The base
23 assessment roll or rolls of revenue allocation area or areas shall not exceed
24 at any time ten percent (10%) of the current assessed valuation of all taxable
25 property within the municipality.
26 (146) "State" means the state of Idaho.
27 (157) "Tax" or "taxes" means all property tax levies upon taxable prop-
28 erty.
29 (168) "Taxable property" means taxable real property, personal property,
30 operating property, or any other tangible or intangible property included on
31 the equalized assessment rolls.
32 (179) "Taxing district" means a taxing district as defined in section
33 63-201, Idaho Code, as that section now exists or may hereafter be amended.
34 (20) "Termination date" means a specific date no later than twenty-four
35 (24) years from the effective date of an urban renewal plan or as described in
36 section 50-2904, Idaho Code, on which date the plan shall terminate. Every
37 urban renewal plan shall have a termination date that can be modified or
38 extended subject to the twenty-four (24) year maximum limitation. Provided
39 however, the duration of a revenue allocation financing provision may be
40 extended as provided in section 50-2904, Idaho Code.
41 SECTION 3. That Section 50-2904, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 50-2904. AUTHORITY TO CREATE REVENUE ALLOCATION AREA. An authorized
44 municipality is hereby authorized and empowered to adopt, at any time, a reve-
45 nue allocation financing provision, as described in this chapter, as part of
46 an urban renewal plan or competitively disadvantaged border community area
47 ordinance. A revenue allocation financing provision may be adopted either at
48 the time of the original adoption of an urban renewal plan or the creation by
49 ordinance of a competitively disadvantaged border community area or thereafter
50 as a modification of an urban renewal plan or the ordinance creating the com-
51 petitively disadvantaged border community area. Urban renewal plans existing
52 prior to the effective date of this section may be modified to include a rev-
53 enue allocation financing provision. Except as provided below, no revenue
7
1 allocation provision of an urban renewal plan or competitively disadvantaged
2 border community area ordinance, including all amendments thereto, shall have
3 a duration exceeding twenty-four (24) years from the date the ordinance is
4 approved by the municipality. The duration of the revenue allocation financing
5 provision may be extended if:
6 (1) The maturity date of any bonds issued to provide funds for a specific
7 project in the revenue allocation area and payable from the revenue allocation
8 financing provision exceeds the duration of the revenue allocation financing
9 provision, provided such bond maturity is not greater than thirty (30) years;
10 or
11 (2) The urban renewal agency determines that it is necessary to refinance
12 outstanding bonds payable from the revenue allocation financing provision to a
13 maturity exceeding the twenty-four (24) year duration of the revenue alloca-
14 tion financing provision in order to avoid a default on the bonds; and or
15 (3) The local governing body has adopted an urban renewal plan or compet-
16 itively disadvantaged border community area ordinance or an amendment to an
17 urban renewal plan or competitively disadvantaged border community area ordi-
18 nance prior to July 1, 2000, in which is defined the duration of the plan
19 beyond a period of twenty-four (24) years, in which case the revenue alloca-
20 tion provision shall have a duration as described in such urban renewal plan
21 or competitively disadvantaged border community ordinance; and
22 (4) During the extensions set forth in subsections (1) and (2) of this
23 section, any revenue allocation revenues exceeding the amount necessary to
24 repay the bonds during the period exceeding the twenty-four (24) year maturity
25 of the revenue allocation financing provision shall be returned to the taxing
26 districts in the revenue allocation area on a pro rata basis.
27 SECTION 4. That Section 50-2905, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 50-2905. RECOMMENDATION OF URBAN RENEWAL AGENCY. In order to implement
30 the provisions of this chapter, the urban renewal agency of the municipality
31 shall prepare and adopt a plan for each revenue allocation area and submit the
32 plan and recommendation for approval thereof to the local governing body. The
33 plan shall include a statement listing:
34 (1) The kind, number, and location of all proposed public works or
35 improvements within the revenue allocation area;
36 (2) An economic feasibility study;
37 (3) A detailed list of estimated project costs;
38 (4) A fiscal impact statement showing the impact of the revenue alloca-
39 tion area, both until and after the bonds are repaid, upon all taxing dis-
40 tricts levying taxes upon property on the revenue allocation area; and
41 (5) A description of the methods of financing all estimated project costs
42 and the time when related costs or monetary obligations are to be incurred.
43 (6) A termination date for the plan and the revenue allocation area as
44 provided for in section 50-2903(20), Idaho Code. In determining the termina-
45 tion date, the plan shall recognize that the agency shall receive allocation
46 of revenues in the calendar year following the last year of the revenue allo-
47 cation provision described in the urban renewal plan.
48 (7) A description of the disposition or retention of any assets of the
49 agency upon the termination date. Provided however, nothing herein shall pre-
50 vent the agency from retaining assets or revenues generated from such assets
51 as long as the agency shall have resources other than revenue allocation funds
52 to operate and manage such assets.
8
1 SECTION 5. That Section 50-2909, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 50-2909. ISSUANCE OF BONDS -- BOND PROVISIONS. (1) If the local governing
4 body of an authorized municipality has enacted an ordinance adopting a revenue
5 allocation financing provision as part of an urban renewal plan, the urban
6 renewal agency established by such municipality is hereby authorized and
7 empowered:
8 (a) To apply the revenues allocated to it pursuant to section 8 of this
9 act 50-2908, Idaho Code, for payment of the projected costs of any urban
10 renewal project located in the revenue allocation area;
11 (b) To borrow money, incur indebtedness and issue one (1) or more series
12 of bonds to finance or refinance, in whole or in part, the urban renewal
13 projects authorized pursuant to such plan within the limits established by
14 paragraph (c) below of this subsection; and
15 (c) To pledge irrevocably to the payment of principal of and interest on
16 such monies moneys borrowed, indebtedness incurred or bonds issued by the
17 agency the revenues allocated to it pursuant to section 8 of this act
18 50-2908, Idaho Code.
19 All bonds issued under this section shall be issued in accordance with section
20 50-2012, Idaho Code, except that such bonds shall be payable solely from the
21 special fund or funds established pursuant to section 8 of this act 50-2908,
22 Idaho Code.
23 (2) The agency shall be obligated and bound to pay such borrowed moneys,
24 indebtedness, and bonds as the same shall become due, but only to the extent
25 that the moneys are available in a special fund or funds established under
26 section 8 of this act 50-2908, Idaho Code; and the agency is authorized to
27 maintain an adequate reserve therefor from any moneys deposited in such a spe-
28 cial fund or funds.
29 (3) Nothing in this chapter shall in any way impair any powers an urban
30 renewal agency may have under subsection (a) of section 50-2012, Idaho Code.
31 (4) When the revenue allocation area plan budget described in section
32 50-2903(5), Idaho Code, estimates that all financial obligations have been
33 provided for, the principal of and interest on such moneys, indebtedness and
34 bonds have been paid in full, or when deposits in the special fund or funds
35 created under this chapter are sufficient to pay such principal and interest
36 as they come due, and to fund reserves, if any, or any other obligations of
37 the agency funded through revenue allocation proceeds shall be satisfied and
38 the agency has determined no additional project costs need be funded through
39 revenue allocation financing, the allocation of revenues under section 8 of
40 this act 50-2908, Idaho Code, shall thereupon cease; any moneys in such fund
41 or funds in excess of the amount necessary to pay such principal and interest
42 shall be distributed to the affected taxing districts in which the revenue
43 allocation area is located in the same manner and proportion as the most
44 recent distribution to the affected taxing districts of the taxes on the tax-
45 able property located within the revenue allocation area; and the powers
46 granted to the urban renewal agency under section 9 of this act 50-2909, Idaho
47 Code, shall thereupon terminate.
48 SECTION 6. That Section 63-301A, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 63-301A. NEW CONSTRUCTION ROLL. (1) The county assessor shall prepare a
51 new construction roll, which shall be in addition to the property roll, which
52 new construction roll shall show:
9
1 (a) The name of the taxpayer;
2 (b) The description of the new construction, suitably detailed to meet
3 the requirements of the individual county;
4 (c) A description of the land and its change in use, suitably detailed to
5 meet the needs of the individual county;
6 (d) The amount of taxable market value added to the property on the cur-
7 rent year's property roll that is directly the result of new construction
8 or a change in use of the land or both.
9 (2) As soon as possible, but in any event by no later than the first Mon-
10 day in June, the new construction roll shall be certified to the county audi-
11 tor and a listing showing the amount of value on the new construction roll in
12 each taxing district or unit be forwarded to the state tax commission.
13 (3) The value shown on the new construction roll may include the value
14 increase from:
15 (a) Construction of any new structure that previously did not exist; or
16 (b) Additions or alterations to existing nonresidential structures; or
17 (c) Installation of new or used manufactured housing that did not previ-
18 ously exist within the county; or
19 (d) Change of land use classification; or
20 (e) Property newly taxable as a result of loss of the exemption provided
21 by section 63-602W, Idaho Code; or
22 (f) Increases in value over the base value of property on the base
23 assessment roll within an urban renewal revenue allocation area that has
24 been terminated pursuant to section 50-2909(4), Idaho Code, to the extent
25 that this increment has not been previously included on any new construc-
26 tion rolls, provided however, the increased value during the existence of
27 the revenue allocation area is due to changes identified in subsections
28 (a) through (e) of this subsection.
29 (4) The amount of taxable market value of new construction shall be the
30 change in net taxable market value that is attributable directly to new con-
31 struction or a change in use of the land or loss of the exemption provided by
32 section 63-602W(3), Idaho Code. It shall not include any change in value of
33 existing property that is due to external market forces such as general or
34 localized inflation.
35 SECTION 7. That Section 63-803, Idaho Code, be, and the same is hereby
36 amended to read as follows:
37 63-803. CERTIFICATION OF BUDGETS IN DOLLARS. (1) Whenever any taxing dis-
38 trict is required by law to certify to any county treasurer, county auditor,
39 county assessor, county commissioners or to any other county officer, any
40 property tax levy, upon property located within said district, such certifica-
41 tion shall, notwithstanding any other provision of the law applicable to any
42 such district, be made at the time and in the manner hereinafter provided.
43 (2) The county auditor shall inform each of the taxing districts within
44 his county of the taxable value of that district as soon as such value is
45 known to the auditor, whether the value comes from the appraisal and assess-
46 ment of real and personal property, or from allocation of the taxable value of
47 operating property, or from other sources.
48 (3) Using the taxable value of the district, the council, trustees, board
49 or other governing body of any taxing district shall certify the total amount
50 required from a property tax upon property within the district to raise the
51 amount of money fixed by their budget as previously prepared or approved. The
52 amount of money so determined shall be certified in dollars to the appropriate
53 county commissioners. Any taxing unit, except regional airport authorities,
10
1 located in more than one (1) county shall divide its dollar budget for certi-
2 fication to the separate counties by multiplying the amount of such budget by
3 a fraction, the numerator of which shall be the total taxable value of all
4 property in such taxing unit within the county to which such certification is
5 to be made, and the denominator of which shall be the total taxable value of
6 property in such taxing unit in all such counties. Budget certification to the
7 participating counties of regional airport authorities shall be made in the
8 manner prescribed in section 21-807(10), Idaho Code. Taxable value shall be
9 certified by the county auditor of each affected county to such taxing unit
10 and such certification shall be used in this formula. The certification to the
11 county commissioners required in this section shall be made not later than the
12 second Monday in September, unless, upon application therefor, the county com-
13 missioners grant an extension of not more than one (1) week. After receipt of
14 this certification, the county commissioners shall make a tax levy as a per-
15 cent of taxable value of all property in the taxing district, which when
16 applied to the tax rolls, will meet the budget requirements certified by such
17 taxing districts.
18 (4) For the purpose of this section, "taxable value" shall mean the por-
19 tion of the equalized assessed value, less any exemptions and the value that
20 exceeds the value of the base assessment roll for the portion of any taxing
21 district within a revenue allocation area of an urban renewal district,
22 located within each taxing district which certifies a budget to be raised from
23 a property tax levy. When the county auditor is notified of revenues suffi-
24 cient to cover expenses as provided in section 50-2903(5), Idaho Code, taxable
25 value shall also include the value that exceeds the value of the base assess-
26 ment roll for the portion of any taxing district within a revenue allocation
27 area. For each taxing district, taxable value shall include the value from the
28 property and operating property rolls for the current year and subsequent and
29 missed property rolls for the prior year or the best estimate of the subse-
30 quent and missed property rolls for the current year.
31 SECTION 8. That Section 63-1312, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 63-1312. MUNICIPAL PROPERTY TAXES -- NOTIFICATION OF VALUATION. (1) Prior
34 to the fourth Monday of March of the current year the county auditor must
35 notify every taxing district or authority and the state board of education of
36 the total taxable valuation of all the taxable property situated within such
37 districts for the preceding calendar year for the purpose of assisting such
38 governing authorities in their determination of tax rates to be levied for the
39 current year and other informational purposes.
40 (2) Prior to the first Monday in August the auditor of each county in the
41 state shall notify the state tax commission and the clerk of each taxing unit
42 in his county of the taxable valuation of all the taxable property situated
43 within that taxing district from the property roll for the current year, from
44 the operating property roll for the previous year, from the prior year's
45 actual or current year's estimated subsequent property roll and missed prop-
46 erty roll, and the amount of value subject to occupancy tax notwithstanding
47 exemptions authorized in chapter 6, title 63, Idaho Code, for the previous
48 year.
49 (3) The auditor shall furnish the valuation from the current operating
50 property roll upon receipt from the state tax commission.
51 (4) Subsequent to the notification of the county auditor of revenues suf-
52 ficient to cover expenses as provided in section 50-2903(5), Idaho Code, tax-
53 able value as used in this section shall also include the value that exceeds
11
1 the value of the base assessment roll for the portion of any taxing district
2 within a revenue allocation area.
STATEMENT OF PURPOSE
RS 12037
The Local Economic Development Act has been in effect since 1988. The
Local Economic Development Act provides for the use of revenue
allocation financing for the payment of project costs related to an
urban renewal project or competitively disadvantaged border community
project. Revenue allocation financing has been used by many
communities for the construction of needed infrastructure for
economic development. Over the years several issues have emerged
concerning the requirements of the implementing urban renewal agency
to comply with several statutory provisions which govern other public
bodies. This bill requires compliance by an urban renewal agency to
the open-meeting law, the Public Records Act, the Ethics in
Government Act, financial reporting requirements, and the competitive
bidding provisions of Idaho Code section 50-341. The bill also
addresses the procedure to be used by an agency in closing out an
urban renewal project and the termination of the revenue allocation
financing authority. An urban renewal plan will now include a
specific termination date and an "exit strategy" for termination.
A specific termination year budget must be submitted to the other
taxing entities describing the termination and closeout of the
project.
The bill also clarifies the term of revenue allocation financing for
urban renewal plans and competitively disadvantaged border community
ordinances which were adopted prior to July 2000, the effective date
of Senate Bill 1505, as amended (Chapter 275, 2000 Session Laws),
imposing the 24-year limit on revenue allocation provisions.
FISCAL IMPACT
This bill will have no fiscal impact of the State of Idaho. There
may be additional costs to urban renewal agencies as a result of
budgeting and financial reporting requirements and for competitive
bidding notices.
Contact
Name: Ken Harward, Association of Idaho Cities
Phone: 344-8594
STATEMENT OF PURPOSE/FISCAL NOTE H 653