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H0759...............................................by REVENUE AND TAXATION PUBLIC IMPROVEMENT DISTRICTS - Adds to existing law to provide for the creation of public improvement districts. 02/24 House intro - 1st rdg - to printing 02/25 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 759 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS; AMENDING TITLE 50, 3 IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 30, TITLE 50, IDAHO CODE, TO 4 PROVIDE LEGISLATIVE PURPOSE AND A SHORT TITLE, TO DEFINE TERMS, TO PROVIDE 5 FOR CREATION OF PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS, TO PROVIDE 6 FOR ORGANIZATION OF A DISTRICT, TO PROVIDE POWERS OF A DISTRICT, TO PRO- 7 VIDE FOR A CHANGE IN DISTRICT BOUNDARIES OR THE GENERAL PLAN, TO PROVIDE 8 FOR FINANCES, TO PROVIDE FOR GENERAL OBLIGATION BONDS AND TAX LEVIES, TO 9 PROVIDE FOR REVENUE BONDS AND FEES AND CHARGES, TO PROVIDE TERMS OF THE 10 BONDS, TO PROVIDE FOR TAXES, TO PROVIDE FOR NOTICE AND CONDUCT OF ELEC- 11 TIONS, TO PROVIDE FOR FINANCIAL STATEMENTS AND ESTIMATES, BUDGETS AND CER- 12 TIFICATION OF LEVIES, TO PROVIDE FOR DISSOLUTION OF A DISTRICT, TO PROVIDE 13 FOR EXEMPTIONS AND EXCLUSIONS, TO PROVIDE FOR LIMITATION OF LIABILITY, TO 14 PROVIDE FOR APPEAL, EXCLUSIVE REMEDY AND CONCLUSIVENESS, TO PROVIDE FOR 15 SUBDISTRICTS, TO PROVIDE FOR CONSISTENCY WITH STATE LAW, TO PROVIDE LIB- 16 ERAL INTERPRETATION AND TO PROVIDE SEVERABILITY. 17 Be It Enacted by the Legislature of the State of Idaho: 18 SECTION 1. That Title 50, Idaho Code, be, and the same is hereby amended 19 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap- 20 ter 30, Title 50, Idaho Code, and to read as follows: 21 CHAPTER 30 22 PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICT ACT 23 50-3001. PURPOSE AND SHORT TITLE. The preservation of the tax base of 24 Idaho communities in times of community growth is hereby declared to be a pub- 25 lic benefit, use and purpose. This chapter provides an orderly method for the 26 persons who benefit from new public infrastructure improvements to pay for the 27 improvements through the creation of public infrastructure improvements dis- 28 tricts. A district formed pursuant to this chapter, although a political sub- 29 division of this state, is not a governmental entity of general purposes and 30 powers, but is a special limited purposes district, with purposes and powers 31 only as permitted under this chapter, whose actions affect the substantial 32 interests of resident voters of the district and the owners of real property 33 within the district, whether or not the owners are residents of the district. 34 This chapter shall be known and cited as the "Public Infrastructure 35 Improvements District Act." 36 50-3002. DEFINITIONS. The following words and phrases when used in this 37 chapter shall have the meanings respectively given herein. 38 (1) "Debt service" means the principal of, interest on and premium, if 39 any, on the bonds, when due, whether at maturity or prior redemption and fees 40 and costs of registrars, trustees, paying agents or other agents necessary to 41 handle the bonds and the costs of credit enhancement or liquidity support. 2 1 (2) "Development agreement" means an agreement between an owner or devel- 2 oper of real property within the district, a county or city in which the dis- 3 trict is located or the district, concerning the public infrastructure 4 improvements, which agreement may be used to establish obligations of the 5 owner or developer, the county, city or the district concerning the zoning, 6 subdivision, improvement, impact fees, financial responsibilities and other 7 matters relating to the development, improvement and use of real property 8 within the district. 9 (3) "District" means a public infrastructure improvements district formed 10 pursuant to this chapter in one (1) or more counties and/or cities. 11 (4) "District board" means the board of directors of the district. 12 (5) "Enhanced services" means public services provided by a county or 13 city within the district at a higher level of service or to a greater degree 14 than otherwise provided by the county or city generally, including such ser- 15 vices as public safety, fire protection, street or sidewalk cleaning or land- 16 scape maintenance in public areas. "Enhanced services" does not include the 17 basic operation and maintenance related to public infrastructure improvements 18 financed by the district pursuant to this chapter. 19 (6) "General plan" means the general plan for the development of public 20 infrastructure improvements for the district that includes a map of the bound- 21 aries of the district, a legal description of the district, a general descrip- 22 tion of anticipated public infrastructure improvements and their locations, 23 cost and value estimates as required by this chapter, proposed financing meth- 24 ods and anticipated tax levies or other charges, as the general plan may be 25 amended from time to time. 26 (7) "Governing body" means the board or council that by law is consti- 27 tuted as the governing body of the county or city in which the district is 28 located. Reference in this chapter to "governing body or bodies" shall mean 29 the governing body or bodies of each county and city in which the district is 30 located. 31 (8) "Owner" means the person listed as the owner of real property within 32 the district or a proposed district on the current property rolls in effect at 33 the time that the action, proceeding, hearing or election has begun; provided 34 however, that if a person listed on the property rolls is no longer the owner 35 of real property within the district or a proposed district and the name of 36 the successor owner becomes known and is verified by recorded deed or other 37 similar evidence of transfer of ownership, the successor owner shall be deemed 38 to be the owner for the purposes of this chapter. An owner may include any 39 person who is: 40 (a) The administrator or executor of an estate of a decedent holding 41 record title to real property within the district; 42 (b) The guardian of a minor or incompetent person holding record title to 43 real property within the district, appointed and qualified under the laws 44 of this state; 45 (c) An officer of a corporation holding record title to real property 46 within the district, which officer has been authorized by resolution of 47 the corporation's board of directors to act with respect to such real 48 property; 49 (d) The manager(s) or member(s) of a limited liability company holding 50 record title to real property within the district which is authorized by 51 the operating agreement of the company to act with respect to such real 52 property; 53 (e) A general partner of a partnership holding record title to real prop- 54 erty within the district; and 55 (f) A trustee of a trust holding record title to real property within the 3 1 district. 2 (9) "Person" means any entity, individual, corporation, partnership, 3 firm, association, limited liability company, limited liability partnership, 4 trust or other such entities as recognized by the state of Idaho. 5 (10) "Public infrastructure improvement" means any on-site or off-site 6 improvement that directly or indirectly benefits the district, including nec- 7 essary or incidental work, whether newly constructed, renovated or existing, 8 and all necessary or desirable appurtenances. Public infrastructure improve- 9 ments include: 10 (a) Sanitary sewage systems, including collection, transport, storage, 11 treatment, dispersal, effluent use and discharge; 12 (b) Drainage and flood control systems, including collection, transport, 13 diversion, storage, detention, retention, dispersal, use and discharge; 14 (c) Water systems for domestic, commercial, office, hotel or motel, 15 industrial, irrigation, municipal or fire protection purposes, including 16 production, collection, storage, treatment, transport, delivery, connec- 17 tion and dispersal; 18 (d) Other utilities and utility systems, facilities and structures; 19 (e) Highways, streets, roadways, bridges, crossing structures, curbs, 20 gutters, sidewalks and parking facilities, including all areas for vehicu- 21 lar use for travel, ingress, egress and parking, traffic control systems 22 and devices, including signals, controls, markings and signage; 23 (f) Trails and areas for pedestrian, equestrian, bicycle or other 24 nonmotor vehicle use for travel, ingress, egress and parking; 25 (g) Pedestrian malls, parks, recreational facilities and open space areas 26 for the use of members of the public for entertainment, assembly and rec- 27 reation; 28 (h) Landscaping, including earthworks, structures, lakes and other water 29 features, plants, trees and related water delivery systems; 30 (i) Public buildings, including fire protection and police facilities, 31 libraries and other public educational or cultural facilities, exclusive 32 of school sites and facilities; 33 (j) Lighting systems related to the items listed in this subsection; 34 (k) Telecommunications lines and related equipment; 35 (l) Equipment related to the items listed in this subsection; and 36 (m) Inspection, construction management and program management costs. 37 (11) "Public infrastructure purpose" means: 38 (a) Planning, design, engineering, construction, acquisition or installa- 39 tion of public infrastructure improvements, including the costs of appli- 40 cations, impact fees and other fees, permits and approvals related to the 41 construction, acquisition or installation of public infrastructure 42 improvements; 43 (b) Acquiring, converting, renovating or improving existing facilities 44 for public infrastructure improvements, including, without limitation, 45 facilities owned, leased or installed by an owner; 46 (c) Acquiring interests in real and personal property and water rights 47 for public infrastructure improvements including, without limitation, 48 interests of an owner, leases and easements, within or without the dis- 49 trict; 50 (d) Establishing, maintaining and replenishing reserves in order to 51 secure payment of debt service on bonds; 52 (e) Funding and paying from bond proceeds interest accruing on bonds; 53 (f) Funding and paying from bond proceeds fiscal, financial and legal 54 consultant fees, trustee fees, discount fees, district formation and elec- 55 tion costs and all costs of issuance of bonds issued pursuant to this 4 1 chapter including, without limitation, fees and costs for bond counsel, 2 financial advisors, consultants and underwriters, costs of obtaining 3 credit ratings, bond insurance premiums, fees for letters of credit and 4 other credit enhancement costs and printing costs; 5 (g) Providing for the timely payment of debt service on bonds or other 6 indebtedness of the district; 7 (h) Refinancing any outstanding bonds with new bonds, including through 8 the formation of a new district; and 9 (i) Incurring expenses of the district incident to and reasonably neces- 10 sary to carry out the purposes specified in this subsection. 11 (12) "Qualified elector" means: 12 (a) Any person who resides within the boundaries of a district or a pro- 13 posed district and who is a qualified elector as defined in section 14 34-104, Idaho Code (a "resident qualified elector"); or 15 (b) Any person who is an owner of real property which is located within 16 the district (an "owner qualified elector"). 17 50-3003. CREATION. (1) Whenever all of the owners of lands aggregating 18 not less than one hundred sixty (160) contiguous or noncontiguous acres desire 19 to provide for the creation and organization of a public infrastructure 20 improvements district, a district may be created and organized as provided in 21 this chapter; provided however, that any noncontiguous parcel must itself con- 22 sist of at least seventy-five (75) contiguous acres and be wholly located 23 within the same county. As used in this section, "contiguous" shall mean 24 being in actual contact or touching along a boundary or at a point, except no 25 area of land shall be considered not contiguous solely by reason of a roadway 26 or other right-of-way, or solely by reason of intervening land owned by a fed- 27 eral, state or local governmental entity. 28 (2) The creation and organization of a public infrastructure improvements 29 district shall be initiated by a petition signed by all of the owners of all 30 the lands located in the proposed district. The petition shall be filed with 31 the clerk of the governing body in which the proposed district will be 32 located. If the proposed district will be located within two (2) or more coun- 33 ties and/or cities, a petition conforming to the requirements of this section 34 shall be filed with the clerk of each jurisdiction's governing body. The peti- 35 tion shall designate the boundaries of the proposed district, state the name 36 of the proposed district and the purpose for which it is formed, state that 37 the formation of the district will result in the levy of property taxes and 38 may result in the imposition of fees or charges to pay the cost of providing 39 services, and shall be accompanied by a map and a legal description of the 40 proposed district and a copy of the proposed general plan. The petition, 41 together with all maps and other papers filed therewith, shall be open to pub- 42 lic inspection in the office of the clerk in each county or city in which the 43 petition is filed, during such business hours as the clerk may direct. 44 (3) Upon the filing of a petition, the governing body shall, at a regular 45 or special meeting within not less than thirty (30) days nor more than ninety 46 (90) days after the date of the filing of the petition, adopt a resolution 47 giving notice of its intention to create the district and set a time for a 48 hearing on the petition. A notice of the time of the public hearing shall be 49 published by the governing body twice, the first time not less than twelve 50 (12) days prior to the hearing and the second time not less than five (5) days 51 prior to the hearing, in a newspaper of general circulation in each county or 52 city in which the proposed district will be located. The notice shall state 53 that a public infrastructure improvements district is proposed to be formed, 54 giving the proposed boundaries thereof, and that any person claiming an inter- 5 1 est in the real property located within the proposed boundaries of the pro- 2 posed district may, on the date fixed for the public hearing, appear and 3 offer any testimony pertaining to the formation of the district and the pro- 4 posed boundaries thereof. After hearing and considering any and all of the 5 testimony given, the governing body shall thereupon approve a resolution 6 either denying the petition or granting the same, and if granting the same, 7 shall fix and describe in the resolution the boundaries of the proposed dis- 8 trict and order the formation of the same. If the district will be located 9 within two (2) or more counties and/or cities, the governing bodies of such 10 counties and/or cities shall coordinate the public hearing date and the publi- 11 cations of notice so that only one (1) public hearing need be held. Unless 12 otherwise agreed by the governing bodies, the public hearing shall be held in 13 the county or city within which the largest land area of the proposed district 14 will be located. The boards of county commissioners and/or the city councils, 15 as such governing bodies, are hereby specifically authorized to act in a joint 16 manner for such purposes. 17 (4) Whenever a petition shall be filed as provided in this section, the 18 petitioner(s) shall deposit with each governing body a sum sufficient to 19 defray the costs of publication of notice of the public hearing. In the event 20 the district is formed, said petitioner(s) shall be entitled to be reimbursed 21 such costs from the district when moneys are available to the district for 22 such purpose. The amount required to be paid under this subsection shall be 23 determined by each governing body and deposited before publication. 24 50-3004. ORGANIZATION. (1) If the petition for formation of the district 25 is granted, the district shall comply with the filing and recording require- 26 ments of section 63-215, Idaho Code, and shall also cause a copy of the appli- 27 cable resolution to be delivered to the county assessor of each county in 28 which the district is located, cause a copy of the applicable resolution to be 29 recorded with the county clerk in each county in which the district is 30 located, and cause a copy of the applicable resolution to be filed with the 31 state tax commission. 32 (2) Members of the governing body or bodies at the time of formation 33 shall serve as the district board. If the district is located entirely within 34 the boundaries of a city, three (3) members of the city council chosen by the 35 city council shall serve as the district board. If the district is located 36 entirely within the boundaries of a county and outside the boundaries of any 37 city, the county commissioners of the county in which the district is located 38 shall serve as the district board. If the district is located within the 39 jurisdiction of more than one (1) governing body, two (2) members of each gov- 40 erning body shall be appointed by that governing body to serve on the district 41 board and, in addition, the governing body within whose jurisdiction the larg- 42 est land area of the district is located shall appoint a third member to serve 43 on the district board. If an area is added to the district pursuant to sec- 44 tion 50-3006(2), Idaho Code, and such area is located in a city or county not 45 already represented on the district board, the membership of the district 46 board, at the time of addition of such area, shall be adjusted in conformity 47 with the foregoing. If an area is deleted from the district pursuant to sec- 48 tion 50-3006(1), Idaho Code, and, as a result, a county or city no longer has 49 area within the district, the membership of the district board, at the time of 50 deletion of such area, shall be adjusted in conformity with the foregoing. 51 The boards of county commissioners and the city councils, as such governing 52 bodies, are hereby specifically authorized to act in a joint manner for such 53 purposes. 54 (3) Within thirty (30) days after the date of the resolution ordering 6 1 formation of the district, and annually thereafter, the district board shall 2 meet and elect a chairman, a vice-chairman, a treasurer and a clerk to act as 3 the officers of the district board. Except for the office of chairman, the 4 offices may be combined. The district board shall, unless otherwise agreed by 5 a majority of the board, meet in the county or city within which the largest 6 land area of the district is located. The district shall keep the following 7 records, which shall be open to public inspection: 8 (a) Minutes of all meetings of the district board; 9 (b) All resolutions; 10 (c) Accounts showing all moneys received and disbursed; 11 (d) The annual budget; and 12 (e) All other records required to be maintained by law. 13 (4) The treasurer of the district shall have such duties as the district 14 board may prescribe together with the duty to keep account with the district; 15 to place to the credit of the district all moneys received by him or her from 16 the collection of taxes or from any other sources, and of all other moneys 17 belonging to the district and to pay over all moneys belonging to the district 18 on legally drawn warrants or orders of the district board. 19 (5) The clerk of the district shall have such duties as the district 20 board may prescribe together with the duty to conduct district elections and 21 to prepare and distribute legal notices. 22 (6) The district shall be separate and apart from any county or city. The 23 members of the district board, when serving in their official capacity as mem- 24 bers of the district board, shall act on behalf of the district and not as 25 members of a board of county commissioners or as members of a city council. 26 (7) The district board shall administer in a reasonable manner the imple- 27 mentation of the general plan. 28 (8) The district shall have perpetual existence unless dissolved pursuant 29 to section 50-3014, Idaho Code. 30 (9) The governing body of a county or city by resolution may provide pub- 31 lic services to the district or participate in the costs of any public infra- 32 structure purpose. The formation of a district pursuant to this chapter shall 33 not prevent the subsequent establishment of similar districts or the improve- 34 ment or assessment of land within the district by a county or city or the 35 exercise by a county or city of any of its powers on the same basis as on all 36 other land in its corporate boundaries. 37 50-3005. POWERS. (1) The district shall have the power to finance public 38 infrastructure improvements and public infrastructure purposes consistent with 39 the general plan and as provided in this chapter, subject to applicable plan- 40 ning and zoning ordinances of the counties and cities in which the district is 41 located. In addition to the powers otherwise granted to a district pursuant to 42 this chapter, the district board, in implementing the general plan, may: 43 (a) Enter into contracts and expend money for any public infrastructure 44 purpose with respect to the district; 45 (b) Enter into development agreements as defined in section 50-3002(2), 46 Idaho Code; 47 (c) Enter into intergovernmental agreements as provided in sections 48 67-2326 through 67-2333, Idaho Code, for the planning, design, inspection, 49 ownership, control, maintenance, operation or repair of public infrastruc- 50 ture improvements or the provision of enhanced services by the county or 51 city within the district and any other purpose authorized by this chapter; 52 (d) Sell, dedicate, lease or otherwise dispose of district property if 53 the sale, dedication, lease or conveyance is not a violation of the terms 54 of any contract or bond covenant of the district; 7 1 (e) Reimburse a county or city in which the district is located for pro- 2 viding enhanced services within the district; 3 (f) Construct, install, operate, maintain and repair public infrastruc- 4 ture improvements; 5 (g) Employ and establish compensation for staff, counsel and consultants 6 and pay such compensation out of the treasury of the district; 7 (h) Reimburse a county or city in which the district is located for staff 8 and consultant services and support facilities supplied by the county or 9 city; 10 (i) Accept gifts or grants and incur and repay loans for any public in- 11 frastructure purpose; 12 (j) Enter into agreements with owners concerning the advance of money by 13 owners for public infrastructure purposes or the granting of real property 14 by the owner for public infrastructure purposes; 15 (k) Levy property taxes and impose fees and charges for any public infra- 16 structure purpose on any real property located within the district and, in 17 conjunction with the levy of such taxes, fees and charges, set and collect 18 or cause to be collected administrative fees; 19 (l) Pay the financial, legal and administrative costs of the district; 20 (m) Borrow money and incur indebtedness and evidence the same by certifi- 21 cates, notes or debentures, and enter into contracts, agreements and trust 22 indentures to obtain credit enhancement or liquidity support for its bonds 23 and process the issuance, registration, transfer and payment of its bonds 24 and the disbursement and investment of proceeds of its bonds; 25 (n) With the consent of the governing body of each county or city in 26 which the district is located, enter into agreements with persons outside 27 of the district to provide enhanced services to persons and property out- 28 side of the district; 29 (o) Use public easements and rights-of-way in or across public property, 30 roadways, highways, streets or other thoroughfares and other public ease- 31 ments and rights-of-way, whether in or out of the geographical limits of 32 the district, county or city; 33 (p) Have and exercise the power of eminent domain in the manner provided 34 by law for the condemnation of private property for public use to take any 35 property necessary to the exercise of the powers herein granted, both 36 within and without the district; and 37 (q) Sue and be sued and prosecute and defend, at law or in equity. 38 (2) Public infrastructure improvements other than personalty may be 39 located only in or on lands, easements or rights-of-way owned by this state or 40 a political subdivision thereof, a county, city or district, whether in or out 41 of the county, city or district. 42 (3) An agreement pursuant to paragraph (j) of subsection (1) of this sec- 43 tion may include agreements to repay all or part of such advances, fees and 44 charges from the proceeds of bonds if issued or from advances, fees and 45 charges collected from other owners or users or those having a right to use 46 any public infrastructure improvements. A person does not have authority to 47 compel the issuance or sale of the bonds of the district or the exercise of 48 any taxing power of the district to make repayment under any agreement. 49 (4) Notwithstanding the provisions of the procurement requirements that 50 may otherwise be applicable to the county or city in which the district is 51 located, the district board may enter into contracts to carry out any of the 52 district's authorized powers, including the planning, design, engineering, 53 financing, construction and acquisition of public infrastructure improvements, 54 with a contractor, an owner or other person, on such terms and with such per- 55 sons or entities as the district board determines to be appropriate. 8 1 50-3006. CHANGE IN DISTRICT BOUNDARIES OR GENERAL PLAN. (1) After dis- 2 trict formation, an area may be deleted from the district only following 3 notice and hearing in the manner prescribed for the formation hearing, adop- 4 tion of a resolution of intention to do so by the district board and voter 5 approval by the qualified electors as provided in section 50-3012, Idaho Code. 6 Lands within the district that are subject to the lien of property taxes or 7 other charges imposed pursuant to this chapter shall not be deleted from the 8 district while there are bonds outstanding that are payable by such taxes or 9 charges. 10 (2) After district formation, an area may be added to the district upon 11 adoption of a resolution of intention to do so by the district board and the 12 approvals of all the owners of the lands to be added and the governing body of 13 each county or city within which such lands are located, subject to notice, 14 hearing and adoption of a resolution in the manner as required for the forma- 15 tion of a district. 16 (3) If an area is deleted or added under subsection (1) or (2) of this 17 section, the district board shall attend to the recording and filing require- 18 ments set forth in section 63-215(1), Idaho Code, and shall also cause a copy 19 of the applicable resolution to be delivered to the county assessor of each 20 county in which the district is located, cause a copy of the applicable reso- 21 lution to be recorded with the county clerk in each county in which the dis- 22 trict is located, and cause a copy of the applicable resolution to be filed 23 with the state tax commission. 24 (4) The district board, following notice and hearing in the manner pre- 25 scribed for the formation hearing, may amend the general plan in any manner 26 that it determines will not substantially reduce the benefits to be received 27 by any land within the district from the public infrastructure improvements on 28 completion of the work to be performed under the general plan. No election 29 shall be required for the purposes of this subsection. 30 50-3007. FINANCES. (1) The public infrastructure improvements and public 31 infrastructure purposes shown in the general plan may be financed from the 32 following sources of revenue: 33 (a) Proceeds received from the sale of bonds of the district; 34 (b) Money of a county or city contributed to the district; 35 (c) Property taxes; 36 (d) State or federal grants or contributions; 37 (e) Private contributions; 38 (f) User, landowner and other fees and charges; 39 (g) Proceeds of loans or advances; and 40 (h) Any other money available to the district by law. 41 (2) The amount of indebtedness evidenced by general obligation bonds 42 issued pursuant to section 50-3008, Idaho Code, shall not exceed the estimated 43 cost of the public infrastructure improvements to be financed with such gen- 44 eral obligation bonds, plus all costs connected with the public infrastructure 45 purposes and issuance and sale of such bonds including, without limitation, 46 formation costs, credit enhancement and liquidity support fees and costs. The 47 amount of indebtedness evidenced by revenue bonds issued pursuant to section 48 50-3009, Idaho Code, shall not exceed the estimated cost of the public infra- 49 structure improvements to be financed with such revenue bonds, plus all costs 50 connected with the public infrastructure purposes and issuance and sale of 51 such bonds including, without limitation, formation costs, credit enhancement 52 and liquidity support fees and costs. The total aggregate outstanding princi- 53 pal amount of general obligation bonds and any other indebtedness for which 54 the full faith and credit of the district are pledged shall not exceed sixty 9 1 percent (60%) of the estimated market value of the real property and improve- 2 ments within the district after the public infrastructure improvements of the 3 district are completed plus the estimated value of the public infrastructure 4 improvements to be owned or acquired with the proceeds of the bonds, and shall 5 not affect the general obligation bonding capacity of any county or city in 6 which the district is located. Estimates of cost or value under this subsec- 7 tion shall be set forth in the general plan. 8 (3) Bonds issued by a district shall not be a general obligation of this 9 state or of any county or city in which the district is located and shall not 10 pledge the full faith and credit of this state, or any county or city in which 11 the district is located. 12 50-3008. GENERAL OBLIGATION BONDS -- LEVY. (1) After district formation, 13 whenever the district board shall deem it advisable to issue general obliga- 14 tion bonds of the district, the district board shall provide therefor by reso- 15 lution, which resolution shall specify and set forth the public infrastructure 16 purposes and improvements consistent with the general plan to be financed with 17 such bonds, and make provision for the collection of an annual tax sufficient 18 to pay the interest on such proposed bonds as it falls due, and also to con- 19 stitute a sinking fund for the payment of the principal thereof as required by 20 the constitution and laws of the state of Idaho. 21 (2) The resolution shall also provide for holding an election, held in 22 compliance with section 50-3012, Idaho Code, to submit to the qualified elec- 23 tors of the district the question of authorizing the district to issue general 24 obligation bonds of the district to provide money for said public infrastruc- 25 ture purposes and improvements consistent with the general plan. The ballot 26 used in such election shall be in form substantially as follows: "In favor of 27 issuing bonds to the amount of .......... dollars for the purpose stated in 28 Resolution No. ...," and "Against issuing bonds to the amount of .......... 29 dollars for the purpose stated in Resolution No. ...". 30 (3) If two-thirds (2/3) of the qualified electors voting at such election 31 assent to the issuing of such bonds and the incurring of the indebtedness 32 thereby created for the purpose aforesaid, the district board shall thereupon 33 be authorized to issue and create such indebtedness in the manner and for the 34 purposes specified in said resolution, and such bonds shall be issued and sold 35 in the manner provided by the laws of the state of Idaho. 36 (4) After the bonds are issued, the district board shall enter in its 37 minutes a record of the bonds sold and their numbers and dates. 38 (5) Each year, prior to the time for the certification required under 39 section 50-3013, Idaho Code, the district board shall levy a tax upon all tax- 40 able real property within the district, sufficient, together with any money 41 from the sources described in section 50-3007, Idaho Code, to pay debt service 42 on the bonds when due. The levy shall be made by resolution entered upon the 43 minutes of the district board, and it shall be the duty of the clerk of the 44 district, immediately after entry of the resolution in the minutes, to trans- 45 mit to the board of county commissioners in each county in which the district 46 is located, the certification required under section 50-3013, Idaho Code. Said 47 tax levied shall then be collected and accounted for at the time and in the 48 form and manner as other taxes are collected and accounted for under the laws 49 of this state. Money derived from the levy of property taxes to pay the debt 50 service on the bonds shall be kept separately from other funds of the dis- 51 trict. A district's levy of property taxes shall constitute a lien on all 52 taxable real property within the district. 53 (6) Subject to the provisions of this section, a district may issue gen- 54 eral obligation bonds at such times and in such amounts as the district deems 10 1 appropriate to carry out a public infrastructure improvements project or proj- 2 ects in phases. 3 (7) The district may issue and sell refunding bonds to refund general 4 obligation bonds of the district authorized by this section. The principal 5 amount of the refunding bonds may be more or less than the principal amount of 6 the bonds being refunded provided the proceeds of the refunding bonds are used 7 only for refunding purposes and payment of the costs thereof, and the total 8 obligation of the district is not increased, that is, if the amount of the 9 refunding bonds is more than the principal amount of the bonds being refunded, 10 issuance of the refunding bonds will result in a net present value savings to 11 the district. No election shall be required in connection with the issuance 12 and sale of such refunding bonds. Refunding bonds issued pursuant to this 13 section shall have a final maturity date no later than the final maturity date 14 of the bonds being refunded. 15 50-3009. REVENUE BONDS -- FEES AND CHARGES. (1) Subject to section 3, 16 article VIII of the constitution of the state of Idaho, after district forma- 17 tion, whenever the district board shall deem it advisable to issue revenue 18 bonds of the district, the district board shall provide therefor by resolu- 19 tion, which resolution shall specify and set forth the public infrastructure 20 purposes and improvements consistent with the general plan to be financed with 21 such bonds. 22 (2) The resolution shall also provide for holding an election, held in 23 compliance with section 50-3012, Idaho Code, to submit to the qualified elec- 24 tors of the district the question of authorizing the district to issue revenue 25 bonds of the district to provide money for said public infrastructure purposes 26 and improvements consistent with the general plan. 27 (3) Except as otherwise specifically set forth in this section, the pro- 28 visions of chapter 41, title 42, Idaho Code (water and sewer district revenue 29 bond act), shall apply with respect to the issuance of revenue bonds and 30 refunding bonds under this section in substantially the same manner as if the 31 district were a water and/or sewer district issuing bonds pursuant to the 32 water and sewer district revenue bond act, and the district board shall con- 33 duct itself in the issuance of revenue bonds in substantially the same manner 34 as the commissioners of a district under the water and sewer district revenue 35 bond act. 36 (4) If the revenue bonds are approved at the election, the district board 37 shall thereupon be authorized to issue and create such indebtedness in the 38 manner and for the purposes specified in said resolution, and such bonds shall 39 be issued and sold in the manner provided by the laws of the state of Idaho. 40 (5) After the bonds are issued, the district board shall enter in its 41 minutes a record of the bonds sold and their numbers and dates and shall peri- 42 odically collect the pledged revenues to pay the debt service on the bonds 43 when due. 44 (6) Money derived from the collection of revenues pledged to pay the debt 45 service on the bonds shall be kept separately from other funds of the dis- 46 trict. 47 (7) No holder of revenue bonds issued pursuant to this chapter may compel 48 any exercise of the taxing power of the district, county or city to pay the 49 bonds or the interest on the bonds. Revenue bonds issued pursuant to this 50 chapter are not a debt of the state or of any county or city in which the dis- 51 trict is located, nor are they the debt of the district, other than with 52 respect to the revenue pledged to the payment of the bonds. The payment of 53 revenue bonds is not enforceable out of any money other than the revenue 54 pledged to the payment of the bonds. 11 1 (8) Subject to the provisions of this section, a district may issue reve- 2 nue bonds at such times and in such amounts as the district deems appropriate 3 to carry out a project in phases. 4 (9) The district may issue and sell refunding bonds to refund revenue 5 bonds of the district authorized by this section. The principal amount of the 6 refunding bonds may be more or less than the principal amount of the bonds 7 being refunded provided the proceeds of the refunding bonds are used only for 8 refunding purposes and payment of the costs thereof, and the total obligation 9 of the district is not increased, that is, if the amount of the refunding 10 bonds is more than the principal amount of the bonds being refunded, issuance 11 of the refunding bonds will result in a net present value savings to the dis- 12 trict. No election shall be required in connection with the issuance and sale 13 of such refunding bonds. Refunding bonds issued pursuant to this section 14 shall have a final maturity date no later than the final maturity date of the 15 bonds being refunded. 16 50-3010. TERMS OF BONDS. For any bonds issued under this chapter, the 17 district board shall prescribe the denominations of the bonds, the principal 18 amount of each issue and the form of the bonds and shall establish the maturi- 19 ties, which shall not exceed thirty (30) years, interest payment dates and 20 interest rates, whether fixed or variable, not exceeding the maximum rate 21 stated in the notice of the election or the resolution of the district board. 22 The bonds, up to the aggregate authorized principal amount thereof, may be 23 issued in whole or divided into series, and by supplementary resolution 24 adopted from time to time by the district board, the district may issue any 25 remaining principal amount of the bonds in one (1) or more subsequent divi- 26 sions. No election shall be required in connection with the issuance of any 27 remaining principal amount of the bonds in a subsequent division. The bonds 28 may be sold by competitive bid or negotiated sale for public or private offer- 29 ing at, below or above par. The proceeds of the bonds shall be deposited with 30 the treasurer, or with a trustee or agent designated by the district board, to 31 the credit of the district to be withdrawn for the purposes provided by this 32 chapter. Pending that use, the proceeds may be invested as determined by the 33 district board. The bonds shall be made payable as to both principal and 34 interest solely from revenues of the district, and shall specify the revenues 35 pledged for such purposes, and shall contain such other terms, conditions, 36 covenants and agreements as the district board deems proper. The bonds may be 37 payable from any combination of taxes or revenues of the types described in 38 sections 50-3008 and 50-3009, Idaho Code. 39 50-3011. DISTRICT TAXES. (1) Each year, prior to the time for the certi- 40 fication required under section 50-3013, Idaho Code, the district board may 41 levy a tax upon all taxable real property within the district sufficient to 42 defray the operation and maintenance expenses of the district of up to twenty- 43 four hundredths percent (.24%) of the market value for assessment purposes on 44 all taxable real property within the district, to be used for the purposes of 45 this chapter and for no other purpose. The levy shall be made by resolution 46 entered upon the minutes of the district board, and it shall be the duty of 47 the clerk of the district, immediately after entry of the resolution in the 48 minutes, to transmit to the board of county commissioners in each county in 49 which the district is located, the certification required under section 50 50-3013, Idaho Code. Said tax shall then be collected and accounted for at the 51 time and in the form and manner as other taxes are collected and accounted for 52 under the laws of this state. 53 (2) Upon presentation to the district board of a petition signed by the 12 1 owners of a majority of the land area of the district, the district board 2 shall adopt a resolution to reduce or eliminate the portion of the tax, begin- 3 ning the next fiscal year, required for one (1) or more services or enhanced 4 services specified in the petition. Signatures on a petition to reduce or 5 eliminate such tax shall be valid for a period of sixty (60) days. 6 50-3012. NOTICE AND CONDUCT OF ELECTION. (1) Any election pursuant to 7 this chapter shall be a nonpartisan election held in compliance with section 8 34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise spe- 9 cifically set forth in this section, the district board shall cause the elec- 10 tion to be held and conducted in the same manner prescribed by law for the 11 holding of general elections in this state, including chapter 14, title 34, 12 Idaho Code, and shall call the election by posting notices in three (3) public 13 places within the boundaries of the district not less than thirty (30) days 14 before the election. Notice shall also be published twice, the first time not 15 less than twelve (12) days prior to the election and the second time not less 16 than five (5) days prior to the election, in a newspaper of general circula- 17 tion in each county or city in which the proposed district is located. The 18 notice shall state: 19 (a) The place of holding the election; 20 (b) Subject to section 34-1409, Idaho Code, the hours during the day in 21 which the polls will be open; 22 (c) If the election is a bond election, whether the bonds are general 23 obligation bonds or revenue bonds, the total principal amount of bonds to 24 be authorized, whether the bonds will be issued in series, the maximum 25 rate of interest to be paid on the bonds and the maximum term of the 26 bonds, not exceeding thirty (30) years; 27 (d) If the election is a property tax levy election, the maximum tax 28 amount to be imposed, and the existing maximum tax amount, if any; 29 (e) The purposes for which the property taxes will be imposed, and the 30 revenues raised will be used, including a description of the public infra- 31 structure improvements to be financed with tax revenues, district revenues 32 or bond proceeds; 33 (f) That the imposition of property taxes will result in a lien for the 34 payment thereof on property within the district; and 35 (g) That a general plan is on file with the county clerk of each county 36 in which the district is located. 37 (2) The district board shall determine the date of the election and the 38 polling place(s) for the election. The district board may establish, change, 39 and consolidate election precincts within the district, as it deems necessary 40 and appropriate, and shall define precinct boundaries. 41 (3) The current property rolls for the district and current voter lists 42 in effect at the time that the election has begun shall be used to determine 43 the qualified electors; provided however, that if a person listed on the cur- 44 rent property rolls or current voter lists is no longer the owner of real 45 property within the district and the name of the successor owner becomes known 46 and is verified by recorded deed or other similar evidence of transfer of own- 47 ership, the successor owner shall be deemed to be the owner for the purposes 48 of determining who is the qualified elector. If the district includes land 49 lying partly in and partly out of any precinct, the voter lists may contain 50 the names of all electors in the precinct, and the precinct boards at those 51 precincts shall require that a prospective elector execute an affidavit stat- 52 ing that the elector is also a qualified elector. 53 (4) If the district is to be located within two (2) or more counties 54 and/or cities, the election shall be held on the same day in each jurisdic- 13 1 tion. 2 (5) The ballot material provided to each voter shall include: 3 (a) For an election concerning the issuance of bonds, an impartial 4 description of the bonds to be issued; 5 (b) For an election concerning the imposition of property taxes, an 6 impartial description of the taxes to be imposed, the method of apportion- 7 ment, collection and enforcement and other details sufficient to enable 8 each qualified elector to determine the amount of tax it will be obligated 9 to pay; and a statement that the imposition of property taxes is for the 10 provision of certain, but not necessarily all, public infrastructure 11 improvements and services that may be needed or desirable within the dis- 12 trict, and that other taxes or assessments by other governmental entities 13 may be presented for approval by qualified electors; and 14 (c) For an election to change an existing maximum or eliminate an exist- 15 ing tax, an impartial description of the change or elimination. 16 (6) Within ten (10) days after an election, the district board shall meet 17 and canvass the returns, and declare the results thereof. At least a two- 18 thirds (2/3) majority of the votes cast at the election shall be required for 19 issuing bonds, imposing property tax or changing an existing tax; provided 20 however, that with respect to issuance of revenue bonds pursuant to the 21 authority of and in compliance with the requirements of section 3, article 22 VIII of the constitution of the state of Idaho, only the assent of a majority 23 of the qualified electors voting at the election shall be required. The can- 24 vass may be continued for an additional period not to exceed thirty (30) days 25 at the election of the district board for the purpose of completing the can- 26 vass. Failure of a required majority to vote in favor of the matter submitted 27 shall not prejudice the submission of the same or similar matters at a later 28 election. The canvass of any general obligation bond election shall be filed 29 and recorded in each county in which the district is located. 30 (7) In any election held pursuant to this chapter, every voter may vote 31 at any election held pursuant to this chapter, but shall be entitled to cast 32 only one (1) vote. Each resident qualified elector shall be entitled to one 33 (1) vote. An owner qualified elector who is also a resident qualified elector 34 shall be entitled to vote only as a resident qualified elector, and shall not 35 be entitled to an additional vote as a result of also being an owner. Each 36 owner qualified elector shall be entitled to one (1) vote, and when record 37 title is held in more than one (1) name, the owners shall file with the clerk 38 of the district at or prior to the election a designation in writing of which 39 one (1) of the owners shall be deemed the owner for purposes of voting. 40 (8) In conducting an election, the polling official may require evidence 41 of ownership of property and designation of the power to exercise the vote of 42 any owner consistent with the provisions of this section and section 43 50-3002(12), Idaho Code. 44 50-3013. ANNUAL FINANCIAL STATEMENTS AND ESTIMATES -- ANNUAL BUDGET -- 45 CERTIFICATION. (1) When levying property taxes, and prior to certification of 46 same to the county commissioners, the district board shall make annual state- 47 ments and estimates of the operation and maintenance expenses of the district, 48 the costs of public infrastructure improvements to be financed by the property 49 tax and the amount of all other expenditures for public infrastructure 50 improvements and enhanced services proposed to be paid from the property tax 51 and of the amount to be raised to pay general obligation bonds of the dis- 52 trict, all of which shall be provided for by the levy and collection of prop- 53 erty taxes. The district board shall file the annual statements and estimates 54 with the district clerk, and, not later than the time required by section 14 1 63-802A, Idaho Code, shall set and notify the county clerk of the date and 2 location set for the annual budget hearing of the district. The district board 3 shall publish a notice of the filing of the estimate, shall hold a public 4 hearing on the portion of the estimate not relating to debt service on general 5 obligation bonds and shall adopt a budget. Notice of the budget hearing shall 6 be posted at least ten (10) full days prior to the date of said meeting in at 7 least one (1) conspicuous place within the district to be determined by the 8 district board; a copy of the notice shall also be published in a newspaper of 9 general circulation in the county or city in which the proposed district is 10 located, in one (1) issue thereof, during such ten (10) day period. The place, 11 hour and day of the hearing shall be specified in said notice, as well as the 12 place where the budget may be examined prior to the hearing. A full and com- 13 plete copy of the proposed budget shall be published with and as a part of the 14 publication of the notice of hearing. The budget shall be available for public 15 inspection from and after the date of the posting of notices of hearing as in 16 this section provided, at such place and during such business hours as the 17 district board may direct. A quorum of the district board shall attend the 18 hearing and explain the proposed budget and hear any and all objections to the 19 proposed budget. The district board at the time of the certification required 20 under subsection (2) of this section shall file with the board of county com- 21 missioners in each county in which the district is located a certified copy of 22 the annual budget as previously prepared, approved and adopted. 23 (2) The district board, having determined the total amount required from 24 property taxes upon all taxable real property within the district to raise the 25 amount of money fixed by the annual budget, including the amount of money 26 needed to satisfy the annual bond payment, shall cause the amount of money so 27 determined to be certified in dollars to the board of county commissioners in 28 each county in which the district is located not later than the time required 29 for certification under section 63-803, Idaho Code. Said certification shall 30 list separately each tax levy if more than one (1), and the purpose of each 31 thereof, and shall otherwise comply with the requirements of section 63-803, 32 Idaho Code. 33 (3) Following such certification to the county commissioner, district 34 property taxes shall then be collected and accounted for at the time and in 35 the form and manner as other taxes are collected and accounted for under the 36 laws of this state. Except as specifically provided otherwise in this chapter, 37 all statutes of this state relating to the levy, collection, settlement and 38 payment of property taxes, including the collection of delinquent taxes and 39 sale of property for nonpayment of taxes, apply to district property taxes. 40 50-3014. DISSOLUTION OF DISTRICT. (1) The district shall be dissolved by 41 the district board by a resolution of the district board upon a determination 42 that each of the following conditions exist: 43 (a) All public infrastructure improvements owned by the district have 44 been, or provision has been made for all public infrastructure improve- 45 ments to be, conveyed either to a county or city in which the district is 46 located, or to a public district, subdistrict or other authority autho- 47 rized by the laws of this state to own such public infrastructure improve- 48 ments; 49 (b) Either the district has no outstanding bond obligations or a county, 50 city or public district, subdistrict or other authority authorized by the 51 laws of this state to do so, has assumed all of the outstanding bond obli- 52 gations of the district; and 53 (c) All obligations of the district pursuant to any development agree- 54 ments as defined in section 50-3002(2), Idaho Code, have been satisfied. 15 1 (2) All property within the district that is subject to the lien of dis- 2 trict taxes shall remain subject to the lien for the payment of general obli- 3 gation bonds, notwithstanding dissolution of the district. The district shall 4 not be dissolved if any revenue bonds of the district remain outstanding 5 unless an amount of money sufficient, together with investment income thereon, 6 to make all payments due on the revenue bonds either at maturity or prior 7 redemption, has been deposited with a trustee or escrow agent and pledged to 8 the payment and redemption of the bonds. The district may continue to operate 9 after dissolution only as needed to collect money and make payments on any 10 outstanding bonds. 11 (3) The district shall send a notice of dissolution to the governing body 12 or bodies, the county assessor of each county in which the district is 13 located, and the state tax commission. The district shall also record a notice 14 of dissolution with the county clerk in each county in which the district is 15 located. 16 (4) Subject to the foregoing provisions of this section, if upon dissolu- 17 tion of the district there remain any excess moneys of the district, the dis- 18 trict board shall, by resolution, cause the same to be paid to the county 19 treasurer of each county in which the district is located to be distributed 20 among the cities and counties in which the district is located in proportion 21 to which said cities and counties receive property tax revenues generally. 22 50-3015. EXEMPTIONS AND EXCLUSIONS. (1) All public utilities, as defined 23 in section 61-129, Idaho Code, shall be exempt from taxation under this chap- 24 ter. 25 (2) No railroad right-of-way may be included within a public infrastruc- 26 ture improvements district without the consent of the railroad. 27 (3) No personal property within a public infrastructure improvements dis- 28 trict shall be subject to taxation under this chapter. 29 50-3016. LIMITATION OF LIABILITY. Neither any member of the district 30 board nor any person acting on behalf of the district, while acting within the 31 scope of his or her authority, shall be subject to any personal liability for 32 any action taken or omitted within that scope of authority. 33 50-3017. APPEAL -- EXCLUSIVE REMEDY -- CONCLUSIVENESS. Any person in 34 interest who feels aggrieved by the final decision of a governing body or a 35 district board in the formation or governing of a district including, without 36 limitation, with respect to any tax levy or bond, may within thirty (30) days 37 after such final decision seek judicial review by filing a written notice of 38 appeal with the clerk of the district and with the clerk of the district court 39 for the judicial district in which a majority of the land area of the district 40 is located. After said thirty (30) day period has run, no one shall have any 41 cause or right of action to contest the legality, formality or regularity of 42 said decision for any reason whatsoever and, thereafter, said decision shall 43 be considered valid and uncontestable without limitation, and the validity, 44 legality and regularity of any such decision shall be conclusively presumed. 45 Without limitation on the foregoing, if the question of validity of any bonds 46 issued pursuant to this chapter is not raised on appeal as aforesaid, the 47 authority to issue the bonds, the legality thereof and of the levies necessary 48 to pay the same shall be conclusively presumed and no court shall thereafter 49 have authority to inquire into such matters. 50 50-3018. SUBDISTRICTS. The district board may at any time, on its own 51 motion, call an election to submit to the qualified electors of a proposed 16 1 subdistrict the question of the creation of a subdistrict. The election shall 2 be called, held and conducted pursuant to section 50-3012, Idaho Code. The 3 proceedings calling the election shall set forth the boundaries of the pro- 4 posed subdistrict and shall provide for the submission of the question of the 5 creation of the subdistrict to the qualified electors of the proposed subdis- 6 trict. No proposition for the creation of a subdistrict shall be determined to 7 have carried unless the proposition shall receive a majority of the votes 8 cast. Whenever the creation of more than one (1) subdistrict is submitted at 9 the same election, separate ballots and separate propositions shall be used in 10 voting on the question of creating each subdistrict. Whenever a proposition 11 for the creation of a subdistrict shall have been so approved, the district 12 board shall enter an order providing for the establishment and creation of the 13 subdistrict, describing therein the boundaries of the subdistrict and desig- 14 nating a name for the subdistrict. Such order shall be made by resolution 15 entered upon the minutes of the district board, and it shall be the duty of 16 the clerk of the district, immediately after entry of the resolution in the 17 minutes, to transmit to the county auditor, county assessor and state tax com- 18 mission certified copies of the resolution. Each subdistrict created and 19 established pursuant to the foregoing shall be a political subdivision of the 20 state of Idaho, with purposes and powers the same as provided a district 21 formed pursuant to this chapter. The district board of the district in which 22 the subdistrict is located shall also be the board of directors for the sub- 23 district (the "subdistrict board"). The subdistrict board shall possess those 24 powers and shall conduct its business essentially the same as provided a dis- 25 trict board in this chapter, limited to and on behalf of the subdistrict, 26 including, without limitation, the power to order, conduct and hold all elec- 27 tions in the subdistrict for the purpose of incurring debt and issuing bonds 28 of the subdistrict. 29 50-3019. CONSISTENCY WITH STATE LAW. (1) A public infrastructure 30 improvements district shall develop public infrastructure improvements consis- 31 tent with the general plan and in compliance with the requirements of chapter 32 13, title 50, Idaho Code, and chapter 65, title 67, Idaho Code. 33 (2) A public infrastructure improvements district shall be deemed to be 34 of the same nature and afforded the same treatment as a local improvements 35 district for purposes of application of section 33-901, Idaho Code, section 36 58-336, Idaho Code, section 67-8209(1), Idaho Code, and section 67-8214(6), 37 Idaho Code. 38 50-3020. LIBERAL INTERPRETATION. The public infrastructure improvements 39 district act, being necessary for the welfare of this state and its inhabit- 40 ants, shall be liberally construed to effect the purposes of the act. 41 50-3021. SEVERABILITY. The provisions of this chapter are hereby declared 42 to be severable and if any provision or the application of the provision to 43 any person or circumstance is declared invalid for any reason, such declara- 44 tion shall not affect the validity of remaining portions of this chapter.
STATEMENT OF PURPOSE RS 14116C1 Relating to taxation and to local government, this legislation provides for the formation of a public infrastructure improvements district by a petition filed by 100% of the owners of all the land in which the proposed district would be located. A district would be formed for the purpose of building new public infrastructure improvements to serve new growth and development, and to provide for the payment of those costs by the new growth and development. The formation petition would be filed with the county commissioners or the city council of the county or city in which the proposed district would be located. A district would be governed by a district board comprised of the members of the board of county commissioners or the city council of the county or city in which the district would be located. After formation, a district would be able to issue general obligation and revenue bonds, following notice, hearing and election. General obligation bonds would require a 2/3 super majority vote of the qualified electors of the district. Revenue bonds would require either a 2/3 majority or a simple majority, as controlled by Article VIII section 3 of the Idaho Constitution. This legislation provides a mechanism for paying for infrastructure for the property within the district. Only the property within the district that is specially benefitted by improvements will pay the cost of those improvements. FISCAL IMPACT This bill will have no impact on the general fund and no direct fiscal impact on local government. Local government officials would manage the district by serving on the district board. Although the district would pay the actual operating costs of the district, there is no specific provision for reimbursing local governments for the time that their elected officials spend on district business. Contact: Name: Mike Brassey Phone: 336-7930 STATEMENT OF PURPOSE/FISCAL IMPACT H 759