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H0298aa.............................................by REVENUE AND TAXATION PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS - Adds to existing law to provide for the creation of Public Infrastructure Improvements Districts. 03/07 House intro - 1st rdg - to printing 03/08 Rpt prt - to Rev/Tax 03/22 Rpt out - to Gen Ord 03/23 Rpt out amen - to engros 03/24 Rpt engros - 1st rdg - to 2nd rdg as amen Rls susp - PASSED - 34-32-4 AYES -- Anderson, Andrus, Bayer, Bedke, Bilbao, Black, Bradford, Clark, Collins, Crow, Deal, Denney, Ellsworth, Eskridge, Field(18), Harwood, Jaquet, Jones, Lake, Miller, Mitchell, Nielsen, Nonini, Pence, Raybould, Roberts, Schaefer, Shepherd(8), Shirley, Skippen, Smith(24)(Frost), Snodgrass, Stevenson, Wills NAYS -- Barraclough, Bastian, Bell, Boe, Bolz, Cannon, Chadderdon, Edmunson(Barker), Field(23), Hart, Henbest, Henderson, Kemp, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Moyle, Pasley-Stuart, Ring, Ringo, Rusche, Rydalch, Sali, Sayler, Shepherd(2), Smith(30), Smylie, Trail, Wood Absent and excused -- Barrett, Block, Garrett, Mr. Speaker Floor Sponsor - Roberts Title apvd - to Senate 03/25 Senate intro - 1st rdg - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 298 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 NOTICE AND CONDUCT OF ELECTIONS, TO PROVIDE FOR 11 TAXES, 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 CONSISTENCY WITH STATE LAW, TO PROVIDE LIBERAL INTERPRETATION AND TO PRO- 16 VIDE 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) "District" means a public infrastructure improvements district formed 2 pursuant to this chapter in one (1) or more counties and/or cities. 3 (3) "District board" means the board of directors of the district. 4 (4) "General plan" means the general plan for the development of public 5 infrastructure improvements for the district that includes a map of the bound- 6 aries of the district, a legal description of the district, a general descrip- 7 tion of anticipated public infrastructure improvements and their locations, 8 cost estimates as required by this chapter, proposed financing methods and 9 anticipated tax levies or other charges, as the general plan may be amended 10 from time to time. 11 (5) "Governing body" means the board or council that by law is consti- 12 tuted as the governing body of the county or city in which the district is 13 located. Reference in this chapter to "governing body or bodies" shall mean 14 the governing body or bodies of each county and city in which the district is 15 located. 16 (6) "Owner" means the person listed as the owner of real property within 17 the district or a proposed district on the current property rolls in effect at 18 the time that the action, proceeding, hearing or election has begun; provided 19 however, that if a person listed on the property rolls is no longer the owner 20 of real property within the district or a proposed district and the name of 21 the successor owner becomes known and is verified by recorded deed or other 22 similar evidence of transfer of ownership, the successor owner shall be deemed 23 to be the owner for the purposes of this chapter. An owner may include any 24 person who is: 25 (a) The administrator or executor of an estate of a decedent holding 26 record title to real property within the district; 27 (b) The guardian of a minor or incompetent person holding record title to 28 real property within the district, appointed and qualified under the laws 29 of this state; 30 (c) An officer of a corporation holding record title to real property 31 within the district, which officer has been authorized by resolution of 32 the corporation's board of directors to act with respect to such real 33 property; 34 (d) The manager(s) or member(s) of a limited liability company holding 35 record title to real property within the district which is authorized by 36 the operating agreement of the company to act with respect to such real 37 property; 38 (e) A general partner of a partnership holding record title to real prop- 39 erty within the district; and 40 (f) A trustee of a trust holding record title to real property within the 41 district. 42 (7) "Person" means any entity, individual, corporation, partnership, 43 firm, association, limited liability company, limited liability partnership, 44 trust or other such entities as recognized by the state of Idaho. A "person in 45 interest" is any person who is a qualified elector in the district, who is an 46 owner of real property in the district or who is a real property taxpayer in 47 the district. 48 (8) "Public infrastructure improvement" means any on-site or off-site 49 improvement that directly or indirectly benefits the district, including nec- 50 essary or incidental work, whether newly constructed, renovated or existing, 51 and all necessary or desirable appurtenances. Public infrastructure improve- 52 ments include, without limitation: 53 (a) Sanitary sewage systems, including collection, transport, storage, 54 treatment, dispersal, effluent use and discharge; 55 (b) Drainage and flood control systems, including collection, transport, 3 1 diversion, storage, detention, retention, dispersal, use and discharge; 2 (c) Water systems for domestic, commercial, office, hotel or motel, 3 industrial, irrigation, municipal or fire protection purposes, including 4 production, collection, storage, treatment, transport, delivery, connec- 5 tion and dispersal; 6 (d) Other utilities and utility systems, facilities and structures; 7 (e) Highways, streets, roadways, bridges, crossing structures, curbs, 8 gutters, sidewalks and parking facilities, including all areas for vehicu- 9 lar use for travel, ingress, egress and parking, traffic control systems 10 and devices, including signals, controls, markings and signage; 11 (f) Trails and areas for pedestrian, equestrian, bicycle or other 12 nonmotor vehicle use for travel, ingress, egress and parking; 13 (g) Pedestrian malls, parks, recreational facilities and open space areas 14 for the use of members of the public for entertainment, assembly and rec- 15 reation; 16 (h) Landscaping, including earthworks, structures, lakes and other water 17 features, plants, trees and related water delivery systems; 18 (i) Public buildings, including fire protection and police facilities, 19 libraries and other public educational or cultural facilities, exclusive 20 of school sites and facilities; 21 (j) Lighting systems related to the items listed in this subsection; 22 (k) Telecommunications lines and related equipment; 23 (l) Equipment related to the items listed in this subsection; and 24 (m) Inspection, construction management and program management costs. 25 (9) "Qualified elector" means: 26 (a) Any person who resides within the boundaries of a district or a pro- 27 posed district and who is a qualified elector as defined in section 28 34-104, Idaho Code (a "resident qualified elector"); or 29 (b) Any person who is an owner of real property which is located within 30 the district (an "owner qualified elector"). 31 50-3003. CREATION. (1) Whenever all of the owners of contiguous lands 32 desire to provide for the creation and organization of a public infrastructure 33 improvements district, a district may be created and organized as provided in 34 this chapter. As used in this section, "contiguous" shall mean being in actual 35 contact or touching along a boundary or at a point, except no area of land 36 shall be considered not contiguous solely by reason of a roadway or other 37 right-of-way, or solely by reason of intervening land owned by a federal, 38 state or local governmental entity. 39 (2) The creation and organization of a public infrastructure improvements 40 district shall be initiated by a petition signed by all of the owners of all 41 the lands located in the proposed district. The petition shall be filed with 42 the clerk of the governing body in which the proposed district will be 43 located. If the proposed district will be located within two (2) or more coun- 44 ties and/or cities, a petition conforming to the requirements of this section 45 shall be filed with the clerk of each jurisdiction's governing body. The peti- 46 tion shall state the name of the proposed district and the purpose for which 47 it is formed, state that the formation of the district will result in the levy 48 of property taxes and may result in the imposition of fees or charges to pay 49 the cost of providing services, and shall be accompanied by a map depicting 50 the boundaries of the proposed district, a legal description of the proposed 51 district and a copy of the proposed general plan. The petition shall also 52 include a copy of a proposed agreement, consistent with the general plan, for 53 district financing and development, which agreement: describes the public in- 54 frastructure improvements to be financed by the district and the estimated 4 1 cost thereof; identifies the public entities that will ultimately own the pub- 2 lic infrastructure improvements financed by the district; sets forth the total 3 amount of bonds to be issued by the district and the property taxes to be 4 levied to repay the bonds; contains provisions regarding the disbursement of 5 bond proceeds; and specifies any financial assurances to be provided. The pro- 6 posed agreement may contain other provisions relating to district financing 7 and development including, without limitation, intergovernmental agreements 8 and other matters relating to the public infrastructure improvements, such as 9 construction, acquisition, planning, design, inspection, ownership, control, 10 maintenance, operation and repair. The petition, together with all maps and 11 other papers filed therewith, shall be open to public inspection in the office 12 of the clerk in each county or city in which the petition is filed, during 13 such business hours as the clerk may direct. 14 (3) Upon the filing of a petition, the governing body shall give notice 15 of the filing of the petition and of the time and place set for a public hear- 16 ing on the petition, which hearing shall be at a regular or special meeting 17 held within not less than thirty (30) days nor more than ninety (90) days 18 after the date of the filing of the petition. A notice of the time of the pub- 19 lic hearing shall be published by the governing body twice, the first time not 20 less than twelve (12) days prior to the hearing and the second time not less 21 than five (5) days prior to the hearing, in a newspaper of general circulation 22 in each county or city in which the proposed district will be located. The 23 notice shall state that a public infrastructure improvements district is pro- 24 posed to be formed, giving the proposed boundaries thereof, and that any per- 25 son who is a resident of, or a real property taxpayer in, the county or city 26 in which the proposed district will be located may, on the date fixed for the 27 public hearing, appear and offer any testimony pertaining to the formation of 28 the district and the proposed boundaries thereof. The notice shall also state 29 that any political subdivision of this state within whose jurisdiction the 30 proposed district will be located including, without limitation, a highway 31 district, a school district, a fire district or an ambulance district, may, on 32 the date fixed for the public hearing, appear and offer any testimony pertain- 33 ing to the formation of the district and the proposed boundaries thereof. If 34 the district will be located within two (2) or more counties and/or cities, 35 the governing bodies of such counties and/or cities shall coordinate their 36 efforts and shall either hold a public hearing in each county or city in which 37 the proposed district will be located, or hold a single public meeting in such 38 county or city as the governing bodies shall unanimously agree. After hearing 39 and considering any and all of the testimony given, the governing body shall 40 thereupon approve a resolution either denying the petition or granting the 41 same, and if granting the same, shall fix and describe in the resolution the 42 boundaries of the proposed district and order the formation of the same. A 43 resolution granting the petition shall also include the approval of an agree- 44 ment regarding district financing and development. The boards of county com- 45 missioners and/or the city councils, as such governing bodies, are hereby spe- 46 cifically authorized to act in a joint manner for such purposes. 47 (4) Whenever a petition shall be filed as provided in this section, the 48 petitioner(s) shall deposit with each governing body a sum sufficient to 49 defray the costs of publication of notice of the public hearing. In the event 50 the district is formed, said petitioner(s) shall be entitled to be reimbursed 51 such sum, as a district formation cost, from the district when moneys are 52 available to the district for such purpose. The amount required to be paid 53 under this subsection shall be determined by each governing body and deposited 54 before publication. 55 (5) The governing body may charge the petitioner(s) a reasonable fee for 5 1 the governing body to retain outside advisors to assist the governing body in 2 its consideration of the formation of the district. In the event the district 3 is formed, the petitioner(s) shall be entitled to be reimbursed such fee, as a 4 district formation cost, from the district when moneys are available to the 5 district for such purpose. 6 50-3004. ORGANIZATION. (1) If the petition for formation of the district 7 is granted, the district shall comply with the filing and recording require- 8 ments of section 63-215, Idaho Code, and shall also cause a copy of the appli- 9 cable resolution to be delivered to the county assessor of each county in 10 which the district is located, cause a copy of the applicable resolution to be 11 recorded with the county clerk in each county in which the district is 12 located, and cause a copy of the applicable resolution to be filed with the 13 state tax commission. 14 (2) Except as provided in subsection (12) of this section, members of the 15 governing body or bodies at the time of formation shall serve as the district 16 board. If the district is located entirely within the boundaries of a city, 17 three (3) members of the city council chosen by the city council shall serve 18 as the district board. If the district is located entirely within the bound- 19 aries of a county and outside the boundaries of any city, the county commis- 20 sioners of the county in which the district is located shall serve as the dis- 21 trict board. If the district is located within the jurisdiction of more than 22 one (1) governing body, two (2) members of each governing body shall be 23 appointed by that governing body to serve on the district board and, in addi- 24 tion, the governing body within whose jurisdiction the largest land area of 25 the district is located shall appoint another member from its governing body 26 to serve as an additional member of the district board, so that the district 27 board will always be comprised of an odd number of members. For purposes of 28 determining which jurisdiction has such largest land area, the land area in 29 the district which is within the incorporated city limits shall be considered 30 as being the land area of the city, and shall not be considered as part of the 31 land area of the county in which the city is located. If an area is added to 32 the district pursuant to section 50-3006(2), Idaho Code, and such area is 33 located in a city or county not already represented on the district board, or 34 if the addition of such area changes the jurisdiction in which the largest 35 land area of the district is located, the membership of the district board, at 36 the time of addition of such area, shall be adjusted in conformity with the 37 foregoing. If an area is deleted from the district pursuant to section 38 50-3006(1), Idaho Code, and, as a result, a county or city no longer has area 39 within the district, or such deletion changes the jurisdiction in which the 40 largest land area of the district is located, the membership of the district 41 board, at the time of deletion of such area, shall be adjusted in conformity 42 with the foregoing. If an area is annexed or deannexed by a city and, as a 43 result, the jurisdiction of a county or city is changed, the membership of the 44 district board at the time of such annexation or deannexation shall be 45 adjusted in conformity with the foregoing. The boards of county commissioners 46 and the city councils, as such governing bodies, are hereby specifically 47 authorized to act in a joint manner for such purposes. 48 (3) Within thirty (30) days after the date of the resolution ordering 49 formation of the district, and annually thereafter, the district board shall 50 meet and elect a chairman, a vice-chairman, a treasurer and a clerk to act as 51 the officers of the district board. Except for the office of chairman, the 52 offices may be combined. The district board shall, unless otherwise agreed by 53 a majority of the board, meet in the county or city within which the largest 54 land area of the district is located. The district shall keep the following 6 1 records, which shall be open to public inspection: 2 (a) Minutes of all meetings of the district board; 3 (b) All resolutions; 4 (c) Accounts showing all moneys received and disbursed; 5 (d) The annual budget; and 6 (e) All other records required to be maintained by law. 7 (4) The treasurer of the district shall have such duties as the district 8 board may prescribe together with the duty to keep account with the district, 9 to place to the credit of the district all moneys received by him or her from 10 the collection of taxes or from any other sources, and of all other moneys 11 belonging to the district and to pay over all moneys belonging to the district 12 on legally drawn warrants or orders of the district board. 13 (5) The clerk of the district shall have such duties as the district 14 board may prescribe together with the duty to conduct district elections and 15 to prepare and distribute legal notices. 16 (6) The district shall be separate and apart from any county or city. The 17 members of the district board, when serving in their official capacity as mem- 18 bers of the district board, shall act on behalf of the district and not as 19 members of a board of county commissioners or as members of a city council. 20 (7) The district board shall administer in a reasonable manner the imple- 21 mentation of the general plan. 22 (8) The district shall have perpetual existence until dissolved pursuant 23 to section 50-3014, Idaho Code. 24 (9) The formation of a district pursuant to this chapter shall not pre- 25 vent the subsequent establishment of similar districts or the improvement or 26 assessment of land within the district by a county, city or other political 27 subdivision. 28 (10) The formation of a district pursuant to this chapter shall not pre- 29 vent the exercise by a county, city or other political subdivision of any of 30 its powers on the same basis as on all other land within its jurisdiction. 31 (11) The formation of a district shall not constitute approval of any land 32 use application or the issuance of any permit for development within the dis- 33 trict. Notwithstanding the formation of a district, the development of real 34 property located within the district shall remain subject to the provisions of 35 chapter 65, title 67, Idaho Code, and the applicable planning and zoning ordi- 36 nances of the counties and cities in which the district is located. 37 (12) At the time of formation of the district, a governing body may pro- 38 vide by resolution that it will appoint residents of the governing body's 39 jurisdiction to serve on the district board in place of members of the govern- 40 ing body. The resolution shall set forth the governing body's initial appoint- 41 ments. An appointed member must have resided within the jurisdiction of the 42 district board for at least two (2) years prior to his or her appointment and 43 must remain a resident of such jurisdiction during his or her service on the 44 district board. An appointed member shall serve for such term or terms as 45 deemed appropriate by the governing body. An appointed member shall be 46 appointed without respect to political affiliation. An appointed member may be 47 removed by a majority vote of the governing body. If a vacancy occurs on the 48 district board, the vacancy shall be filled by appointment made by the govern- 49 ing body. 50 50-3005. POWERS. (1) The district shall have the power to finance public 51 infrastructure improvements consistent with the general plan and as provided 52 in this chapter. In addition to the powers otherwise granted to a district 53 pursuant to this chapter, the district board, in implementing the general 54 plan, may: 7 1 (a) Enter into contracts and expend money for any public infrastructure 2 improvement; 3 (b) Enter into intergovernmental agreements as provided in sections 4 67-2326 through 67-2333, Idaho Code; 5 (c) Acquire interests in real property and personal property for public 6 infrastructure improvements, within or without the district, and sell, 7 dedicate, lease or otherwise dispose of district property if the sale, 8 dedication, lease or conveyance is not a violation of the terms of any 9 contract or bond covenant of the district; 10 (d) Plan, design, engineer, acquire, construct, install, operate, main- 11 tain and repair public infrastructure improvements including, without lim- 12 itation, acquiring, converting, renovating or improving existing facili- 13 ties; 14 (e) Employ and establish compensation for staff, counsel and consultants 15 and pay such compensation out of the treasury of the district; 16 (f) Reimburse a county, city or other political subdivision of this state 17 for staff and consultant services and support facilities supplied by the 18 county, city or other political subdivision; 19 (g) Accept gifts or grants and incur and repay loans for any public in- 20 frastructure improvements; 21 (h) Enter into agreements with owners concerning the advance of money by 22 owners for public infrastructure improvements or the granting of real 23 property by the owners for public infrastructure improvements; 24 (i) Levy property taxes and impose fees and charges for any public infra- 25 structure improvements on any real property located within the district 26 and, in conjunction with the levy of such taxes, fees and charges, set and 27 collect or cause to be collected administrative fees; 28 (j) Incur expenses of the district incident to and reasonably necessary 29 to implementing the general plan, and pay the same including, without lim- 30 itation, as regards the financial, legal and administrative costs of the 31 district; 32 (k) Borrow money and incur indebtedness and evidence the same by certifi- 33 cates, notes, bonds or debentures, and enter into contracts, agreements 34 and trust indentures to obtain credit enhancement or liquidity support for 35 its bonds and process the issuance, registration, transfer and payment of 36 its bonds and the disbursement and investment of proceeds of its bonds; 37 (l) Use public easements and rights-of-way in or across public property, 38 roadways, highways, streets or other thoroughfares and other public ease- 39 ments and rights-of-way, whether in or out of the geographical limits of 40 the district, county or city; 41 (m) Sue and be sued and prosecute and defend, at law or in equity. 42 (2) Public infrastructure improvements other than personalty, whether 43 located in or out of the district, may be located only in or on lands, ease- 44 ments or rights-of-way owned by this state or a political subdivision thereof. 45 (3) An agreement pursuant to paragraph (h) of subsection (1) of this sec- 46 tion may include agreements to repay all or part of such advances, fees and 47 charges from the proceeds of bonds if issued or from advances, fees and 48 charges collected from other owners or users or those having a right to use 49 any public infrastructure improvements. A person does not have authority to 50 compel the issuance or sale of the bonds of the district or the exercise of 51 any taxing power of the district to make repayment under any agreement. 52 (4) Notwithstanding the provisions of the procurement requirements that 53 may otherwise be applicable to the county or city in which the district is 54 located, the district board may enter into contracts to carry out any of the 55 district's authorized powers, including the planning, design, engineering, 8 1 financing, construction and acquisition of public infrastructure improvements, 2 with a contractor, an owner or other person, on such terms and with such per- 3 sons or entities as the district board determines to be appropriate. 4 (5) The district board may also enter into or approve agreements by and 5 among any or all of an owner; a developer; a county, a city or any other 6 political subdivision of this state concerning the development, improvement 7 and use of specific property within the district including, without limita- 8 tion, financial responsibilities and other obligations related thereto. 9 (6) This section does not authorize a district to acquire, construct, 10 operate or maintain an electric generation, transmission or distribution sys- 11 tem or facility, a natural gas distribution system or facility, or a fiber 12 optic or coaxial cable system or facility without the written consent of any 13 provider, the service area of which encompasses all or part of the district, 14 if that provider is providing or is capable of adequately providing such elec- 15 trical, gas or cable service in the district. 16 50-3006. CHANGE IN DISTRICT BOUNDARIES OR GENERAL PLAN. (1) After dis- 17 trict formation, an area may be deleted from the district only following 18 notice and hearing in the manner prescribed for the formation hearing, adop- 19 tion of a resolution of intention to do so by the district board and voter 20 approval by the qualified electors as provided in section 50-3011, Idaho Code. 21 Lands within the district that are subject to the lien of property taxes or 22 other charges imposed pursuant to this chapter shall not be deleted from the 23 district while there are bonds outstanding that are payable by such taxes or 24 charges. 25 (2) After district formation, an area may be added to the district upon 26 adoption of a resolution of intention to do so by the district board and the 27 approvals of all the owners of the lands to be added and the governing body of 28 each county or city within which such lands are located, subject to notice, 29 hearing and adoption of a resolution in the manner as required for the forma- 30 tion of a district. 31 (3) If an area is deleted or added under subsection (1) or (2) of this 32 section, the district board shall attend to the recording and filing require- 33 ments set forth in section 63-215(1), Idaho Code, and shall also cause a copy 34 of the applicable resolution to be delivered to the county assessor of each 35 county in which the district is located, cause a copy of the applicable reso- 36 lution to be recorded with the county clerk in each county in which the dis- 37 trict is located, and cause a copy of the applicable resolution to be filed 38 with the state tax commission. 39 (4) The district board, following notice and hearing in the manner pre- 40 scribed for the formation hearing, may amend the general plan in any manner 41 that it determines will not substantially reduce the benefits to be received 42 by any land within the district from the public infrastructure improvements on 43 completion of the work to be performed under the general plan. No election 44 shall be required for the purposes of this subsection. 45 50-3007. FINANCES. (1) The public infrastructure improvements shown in 46 the general plan may be financed from the following sources of revenue: 47 (a) Proceeds received from the sale of bonds of the district; 48 (b) Money of a county or city contributed to the district; 49 (c) Property taxes; 50 (d) State or federal grants or contributions; 51 (e) Private contributions; 52 (f) User, landowner and other fees and charges; 53 (g) Proceeds of loans or advances; and 9 1 (h) Any other money available to the district by law. 2 (2) The amount of indebtedness evidenced by general obligation bonds 3 issued pursuant to section 50-3008, Idaho Code, and revenue bonds issued pur- 4 suant to section 50-3009, Idaho Code, shall not exceed the estimated cost of 5 the public infrastructure improvements to be financed with such bonds, plus 6 all costs connected with issuance and sale of such bonds including, without 7 limitation, formation costs, credit enhancement and liquidity support fees and 8 costs. The total aggregate outstanding principal amount of general obligation 9 bonds and other indebtedness for which the full faith and credit of the dis- 10 trict are pledged shall not affect the general obligation bonding capacity of 11 any county or city in which the district is located. 12 (3) Bonds issued by a district shall not be a general obligation of this 13 state or of any county or city in which the district is located and shall not 14 pledge the full faith and credit of this state, or any county or city in which 15 the district is located. 16 50-3008. GENERAL OBLIGATION BONDS -- LEVY. (1) After district formation, 17 whenever the district board shall deem it advisable to issue general obliga- 18 tion bonds of the district, the district board shall provide therefor by reso- 19 lution, which resolution shall specify and set forth the public infrastructure 20 improvements consistent with the general plan to be financed with the bonds, 21 and make provision for the collection of an annual tax sufficient to pay the 22 interest on the bonds as it falls due, and also to constitute a sinking fund 23 for the payment of the principal thereof as required by the constitution and 24 laws of the state of Idaho. 25 (2) The resolution shall also provide for holding an election, held in 26 compliance with section 50-3011, Idaho Code, to submit to the qualified elec- 27 tors of the district the question of authorizing the district to issue general 28 obligation bonds of the district to provide money for said public infrastruc- 29 ture improvements consistent with the general plan. The ballot used in such 30 election shall be in form substantially as follows: "In favor of issuing bonds 31 to the amount of ............ dollars for the purpose stated in Resolution No. 32 .....," and "Against issuing bonds to the amount of ............ dollars for 33 the purpose stated in Resolution No. ..... ." 34 (3) If two-thirds (2/3) of the qualified electors voting at such election 35 assent to the issuing of the bonds and the incurring of the indebtedness 36 thereby created for the purpose aforesaid, the district board shall thereupon 37 be authorized to issue and create such indebtedness in the manner and for the 38 purposes specified in said resolution, and the bonds shall be issued and sold 39 in the manner provided by the laws of the state of Idaho, and the district 40 board by further resolution shall be entitled to issue and sell the bonds in 41 series or divisions up to the authorized amount without the further vote of 42 the qualified electors, and to issue and sell such bonds at such times and in 43 such amounts as the district board deems appropriate to carry out a public in- 44 frastructure improvements project or projects in phases; provided however, 45 that before any issuance of the bonds, including issuance in series or divi- 46 sions, and in addition to such other determinations made by the district board 47 as it may deem reasonable and prudent, the district board shall also: 48 (a) Determine whether the estimated annual tax revenues of the district 49 are adequate to support all of the general obligation bonds of the dis- 50 trict that will be outstanding after the proposed issuance, disregarding 51 any tax revenue from taxable real property in the district owned by a de- 52 veloper of the real property within the district. In making such determi- 53 nation, the district board shall take into consideration the market value 54 for assessment purposes at the last preceding county assessment of all 10 1 taxable real property within the district and, for all taxable real prop- 2 erty within the district for which a market value was not established at 3 the last preceding county assessment, the fair market value of that tax- 4 able real property, including the value of the improvements thereon both 5 before and after the public improvements will be completed; and 6 (b) Determine whether the financial condition of a developer of the real 7 property within the district is such that the tax revenue from the real 8 property owned by the developer is a reliable source of revenue to support 9 the repayment of the bonds. If the district board concludes that the 10 financial condition of a developer is such that revenue from the 11 developer's real property is a reliable source of revenue, the estimated 12 annual tax revenue from the real property owned by the developer shall be 13 added to the estimated annual tax revenue from the other taxable real 14 property in the district, as calculated under paragraph (a) of this sub- 15 section, and the total shall be the estimated total annual tax revenue of 16 the district. If the district board concludes that the revenue from the 17 real property owned by a developer is not a reliable source of revenue, 18 the estimated revenue from the real property owned by the developer shall 19 not be included in computing the estimated total annual tax revenue of the 20 district; and 21 (c) Determine whether reasonable financial assurance for the payment of 22 the debt service on the bonds through additional collateral, payment guar- 23 antee or otherwise shall be required from a developer. If the district 24 board decides that reasonable financial assurance shall be required, in 25 its resolution the district board shall specify the type and amount of the 26 financial assurance required. 27 (4) In no event shall the aggregate issued and outstanding principal 28 amount of general obligation bonds and any other indebtedness for which the 29 full faith and credit of the district is pledged exceed sixty percent (60%) of 30 the fair market value of the real property within the district as determined 31 by the district board; provided however, that such sixty percent (60%) limita- 32 tion shall not apply to any issue of bonds if the bonds are rated in one (1) 33 of the four (4) highest rating categories by a nationally recognized rating 34 agency. For the purposes of this section, the term "fair market value" shall 35 mean the amount of United States dollars or equivalent for which, in all prob- 36 ability, a property would change hands between a willing seller, under no com- 37 pulsion to sell, and an informed, capable buyer, with a reasonable time 38 allowed to consummate the sale. For the purpose of complying with the sixty 39 percent (60%) limitation in this subsection, the district board, in its reso- 40 lution approving the issuance of the bonds, shall set forth its determination 41 of the fair market value of the real property in the district and the same 42 shall be final and conclusive in the absence of fraud or gross mistake. 43 (5) After the bonds are issued, the district shall enter in its minutes a 44 record of the bonds sold and their number and dates and shall periodically 45 collect the pledged revenues to pay the debt service on the bonds when due. 46 Bond proceeds received by the district shall be held in a segregated account 47 and shall be disbursed therefrom only for the payment of public infrastructure 48 improvements actually completed or for the purpose of reimbursing expenditures 49 actually made for public infrastructure improvements approved by the district 50 board; provided however, that lien releases with respect to the payment made 51 must be obtained from the underlying providers of labor, work, services or 52 materials as a condition to such payment. Completion of public infrastructure 53 improvements may be phased and payment made pursuant to a draw schedule. Prior 54 to issuance of the bonds, the district board shall determine that it can be 55 reasonably expected that the bond proceeds will be expended on the public in- 11 1 frastructure improvements within three (3) years after issuance. 2 (6) Each year, prior to the time for the certification required under 3 section 50-3013, Idaho Code, the district board shall levy a tax upon all tax- 4 able real property within the district, sufficient, together with any money 5 from the sources described in section 50-3007, Idaho Code, to pay debt service 6 on the bonds when due. The levy shall be made by resolution entered upon the 7 minutes of the district board, and it shall be the duty of the clerk of the 8 district, immediately after entry of the resolution in the minutes, to trans- 9 mit to the board of county commissioners in each county in which the district 10 is located, the certification required under section 50-3013, Idaho Code. Said 11 tax levied shall then be collected and accounted for at the time and in the 12 form and manner as other taxes are collected and accounted for under the laws 13 of this state. Money derived from the levy of property taxes to pay the debt 14 service on the bonds shall be kept separately from other funds of the dis- 15 trict. A district's levy of property taxes shall constitute a lien on all tax- 16 able real property within the district. 17 (7) The district may issue and sell refunding bonds to refund general 18 obligation bonds of the district authorized by this section. The principal 19 amount of the refunding bonds may be more or less than the principal amount of 20 the bonds being refunded provided the proceeds of the refunding bonds are used 21 only for refunding purposes and payment of the costs thereof, and the total 22 obligation of the district is not increased, that is, if the amount of the 23 refunding bonds is more than the principal amount of the bonds being refunded, 24 issuance of the refunding bonds will result in a net present value savings to 25 the district. No election shall be required in connection with the issuance 26 and sale of such refunding bonds. Refunding bonds issued pursuant to this sec- 27 tion shall have a final maturity date no later than the final maturity date of 28 the bonds being refunded. 29 50-3009. REVENUE BONDS -- FEES AND CHARGES. (1) Subject to section 3, 30 article VIII of the constitution of the state of Idaho, after district forma- 31 tion, whenever the district board shall deem it advisable to issue revenue 32 bonds of the district, the district board shall provide therefor by resolu- 33 tion, which resolution shall specify and set forth the public infrastructure 34 improvements consistent with the general plan to be financed with such bonds. 35 (2) The resolution shall also provide for holding an election, held in 36 compliance with section 50-3011, Idaho Code, to submit to the qualified elec- 37 tors of the district the question of authorizing the district to issue revenue 38 bonds of the district to provide money for said public infrastructure improve- 39 ments consistent with the general plan. 40 (3) Except as otherwise specifically set forth in this section, the pro- 41 visions of chapter 41, title 42, Idaho Code, water and sewer district revenue 42 bond act, shall apply with respect to the issuance of revenue bonds and 43 refunding bonds under this section in substantially the same manner as if the 44 district were a water and/or sewer district issuing bonds pursuant to the 45 water and sewer district revenue bond act, and the district board shall con- 46 duct itself in the issuance of revenue bonds in substantially the same manner 47 as the commissioners of a district under the water and sewer district revenue 48 bond act. 49 (4) If the revenue bonds are approved at the election, the district board 50 shall thereupon be authorized to issue and create such indebtedness in the 51 manner and for the purposes specified in said resolution, and such bonds shall 52 be issued and sold in the manner provided by the laws of the state of Idaho. 53 (5) After the bonds are issued, the district board shall enter in its 54 minutes a record of the bonds sold and their numbers and dates and shall peri- 12 1 odically collect the pledged revenues to pay the debt service on the bonds 2 when due. 3 (6) Money derived from the collection of revenues pledged to pay the debt 4 service on the bonds shall be kept separately from other funds of the dis- 5 trict. 6 (7) No holder of revenue bonds issued pursuant to this chapter may compel 7 any exercise of the taxing power of the district, county or city to pay the 8 bonds or the interest on the bonds. Revenue bonds issued pursuant to this 9 chapter are not a debt of the state or of any county or city in which the dis- 10 trict is located, nor are they the debt of the district, other than with 11 respect to the revenue pledged to the payment of the bonds. The payment of 12 revenue bonds is not enforceable out of any money other than the revenue 13 pledged to the payment of the bonds. 14 (8) Subject to the provisions of this section, a district may issue reve- 15 nue bonds at such times and in such amounts as the district deems appropriate 16 to carry out a project in phases. 17 (9) The district may issue and sell refunding bonds to refund revenue 18 bonds of the district authorized by this section. The principal amount of the 19 refunding bonds may be more or less than the principal amount of the bonds 20 being refunded provided the proceeds of the refunding bonds are used only for 21 refunding purposes and payment of the costs thereof, and the total obligation 22 of the district is not increased, that is, if the amount of the refunding 23 bonds is more than the principal amount of the bonds being refunded, issuance 24 of the refunding bonds will result in a net present value savings to the dis- 25 trict. No election shall be required in connection with the issuance and sale 26 of such refunding bonds. Refunding bonds issued pursuant to this section shall 27 have a final maturity date no later than the final maturity date of the bonds 28 being refunded. 29 50-3010. TERMS OF BONDS. For any bonds issued under this chapter, the 30 district board shall prescribe the denominations of the bonds, the principal 31 amount of each issue and the form of the bonds and shall establish the maturi- 32 ties, which shall not exceed thirty (30) years, interest payment dates and 33 interest rates, whether fixed or variable, not exceeding the maximum rate 34 stated in the notice of the election or the resolution of the district board. 35 The bonds, up to the aggregate authorized principal amount thereof, may be 36 issued in whole or divided into series, and by supplementary resolution 37 adopted from time to time by the district board, the district may issue any 38 remaining principal amount of the bonds in one (1) or more subsequent divi- 39 sions. No election shall be required in connection with the issuance of any 40 remaining principal amount of the bonds in a subsequent division. The bonds 41 may be sold by competitive bid or negotiated sale for public or private offer- 42 ing at, below or above par. The proceeds of the bonds shall be deposited with 43 the treasurer, or with a trustee or agent designated by the district board, to 44 the credit of the district to be withdrawn for the purposes provided by this 45 chapter. Pending that use, the proceeds may be invested as determined by the 46 district board. The bonds shall be made payable as to both principal and 47 interest solely from revenues of the district, and shall specify the revenues 48 pledged for such purposes, and shall contain such other terms, conditions, 49 covenants and agreements as the district board deems proper. The bonds may be 50 payable from any combination of taxes or revenues of the types described in 51 sections 50-3008 and 50-3009, Idaho Code. 52 50-3011. NOTICE AND CONDUCT OF ELECTION. (1) Any election pursuant to 53 this chapter shall be a nonpartisan election held in compliance with section 13 1 34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise specif- 2 ically set forth in this section, the district board shall cause the election 3 to be held and conducted in the same manner prescribed by law for the holding 4 of general elections in this state, including chapter 14, title 34, Idaho 5 Code, and shall call the election by posting notices in three (3) public 6 places within the boundaries of the district not less than thirty (30) days 7 before the election. Notice shall also be published twice, the first time not 8 less than twelve (12) days prior to the election and the second time not less 9 than five (5) days prior to the election, in a newspaper of general circula- 10 tion in each county or city in which the proposed district is located. The 11 notice shall state: 12 (a) The place of holding the election; 13 (b) Subject to section 34-1409, Idaho Code, the hours of the day during 14 which the polls will be open; 15 (c) If the election is a bond election, whether the bonds are general 16 obligation bonds or revenue bonds, the total principal amount of bonds to 17 be authorized, whether the bonds will be issued in series, the maximum 18 rate of interest to be paid on the bonds and the maximum term of the 19 bonds, not exceeding thirty (30) years; 20 (d) If the election is an election to change or eliminate an existing 21 tax, the maximum tax amount to be imposed, as a result of the change or 22 elimination; 23 (e) The purposes for which property taxes will be imposed, and the reve- 24 nues raised will be used, including a description of the public infra- 25 structure improvements to be financed with tax revenues, district reve- 26 nues or bond proceeds; 27 (f) That the imposition of property taxes will result in a lien for the 28 payment thereof on property within the district; and 29 (g) That a general plan is on file with the county clerk of each county 30 in which the district is located. 31 (2) The district board shall determine the date of the election and the 32 polling place(s) for the election. The district board may establish, change, 33 and consolidate election precincts within the district, as it deems necessary 34 and appropriate, and shall define precinct boundaries. 35 (3) Subject to section 50-3002(6) and (9), Idaho Code, the current prop- 36 erty rolls for the district and current voter lists in effect at the time that 37 the election has begun shall be used to determine the qualified electors. If 38 the district includes land lying partly in and partly out of any precinct, the 39 voter lists may contain the names of all electors in the precinct, and the 40 precinct boards at those precincts shall require that a prospective elector 41 execute an affidavit stating that the elector is also a qualified elector. 42 (4) If the district is to be located within two (2) or more counties 43 and/or cities, the election shall be held on the same day in each jurisdic- 44 tion. 45 (5) The ballot material provided to each voter shall include: 46 (a) For an election concerning the issuance of bonds, an impartial 47 description of the bonds to be issued and an impartial description of the 48 property taxes to be imposed, the method of apportionment, collection and 49 enforcement and other details sufficient to enable each qualified elector 50 to reasonably estimate the amount of tax it will be obligated to pay; and 51 a statement that the issuance of the bonds and the imposition of property 52 taxes is for the provision of certain, but not necessarily all, public in- 53 frastructure improvements that may be needed or desirable within the dis- 54 trict, and that other taxes or assessments by other governmental entities 55 may be presented for approval by qualified electors; and 14 1 (b) For an election to change an existing maximum or eliminate an exist- 2 ing tax, an impartial description of the change or elimination. 3 (6) Within ten (10) days after an election, the district board shall meet 4 and canvass the returns, and declare the results thereof. At least a two- 5 thirds (2/3) majority of the votes cast at the election shall be required for 6 issuing bonds or changing an existing tax; provided however, that with respect 7 to issuance of revenue bonds pursuant to the authority of and in compliance 8 with the requirements of section 3, article VIII of the constitution of the 9 state of Idaho, only the assent of a majority of the qualified electors voting 10 at the election shall be required. The canvass may be continued for an addi- 11 tional period not to exceed thirty (30) days after the election of the dis- 12 trict board for the purpose of completing the canvass. Failure of a required 13 majority to vote in favor of the matter submitted shall not prejudice the sub- 14 mission of the same or similar matters at a later election. The canvass of any 15 general obligation bond election shall be filed and recorded in each county in 16 which the district is located. 17 (7) In any election held pursuant to this chapter, every voter may vote 18 at any election held pursuant to this chapter, but shall be entitled to cast 19 only one (1) vote. Each resident qualified elector shall be entitled to one 20 (1) vote. An owner qualified elector who is also a resident qualified elector 21 shall be entitled to vote only as a resident qualified elector, and shall not 22 be entitled to an additional vote as a result of also being an owner. Each 23 owner qualified elector shall be entitled to one (1) vote, and when record 24 title is held in more than one (1) name, the owners shall file with the clerk 25 of the district at or prior to the election a designation in writing of which 26 one of the owners shall be deemed the owner for purposes of voting. 27 (8) In conducting an election, the polling official may require evidence 28 of ownership of property and designation of the power to exercise the vote of 29 any owner consistent with the provisions of this section and section 30 50-3002(9), Idaho Code. 31 50-3012. DISTRICT TAXES. (1) Each year, prior to the time for the certi- 32 fication required under section 50-3013, Idaho Code, the district board may 33 levy a tax upon all taxable real property within the district sufficient to 34 defray the organization, operation and maintenance expenses of the district of 35 up to twenty-four hundredths percent (.24%) of the market value for assessment 36 purposes on all taxable real property within the district, to be used for the 37 purposes of this chapter and for no other purpose. No election shall be 38 required. The levy shall be made by resolution entered upon the minutes of the 39 district board, and it shall be the duty of the clerk of the district, immedi- 40 ately after entry of the resolution in the minutes, to transmit to the board 41 of county commissioners in each county in which the district is located, the 42 certification required under section 50-3013, Idaho Code. Said tax shall then 43 be collected and accounted for at the time and in the form and manner as other 44 taxes are collected and accounted for under the laws of this state. 45 (2) Upon presentation to the district board of a petition signed by the 46 owners of a majority of the land area of the district, the district board 47 shall adopt a resolution to reduce or eliminate the portion of the tax, begin- 48 ning the next fiscal year, required for one (1) or more services specified in 49 the petition; provided however, that the district board shall adopt the reso- 50 lution only following its determination that such will not affect the ability 51 of the district to satisfy any obligation of the district for any such ser- 52 vice. Signatures on a petition to reduce or eliminate such tax shall be valid 53 for a period of sixty (60) days. 15 1 50-3013. ANNUAL FINANCIAL STATEMENTS AND ESTIMATES -- ANNUAL BUDGET -- 2 CERTIFICATION. (1) When levying property taxes, and prior to certification of 3 same to the county commissioners, the district board shall make annual state- 4 ments and estimates of the operation and maintenance expenses of the district, 5 the costs of public infrastructure improvements to be financed by the prop- 6 erty tax and the amount of all other expenditures for public infrastructure 7 improvements proposed to be paid from the property tax and of the amount to be 8 raised to pay general obligation bonds of the district, all of which shall be 9 provided for by the levy and collection of property taxes. The annual esti- 10 mates prepared by the district board shall include an amount determined by the 11 district board, in consultation with the county tax collector, to defray the 12 cost imposed upon the county tax collector's office for any additional admin- 13 istrative services that will be required in the collection of and accounting 14 for such district property taxes. Such additional cost shall be for those ser- 15 vices not otherwise included in the general tax collection and accounting ser- 16 vices already provided by the county tax collector's office and otherwise paid 17 for by property tax revenues, and shall be reasonably related to, but shall 18 not exceed, the actual cost of the additional administrative services pro- 19 vided. The district board shall file the annual statements and estimates with 20 the district clerk, and, not later than the time required by section 63-802A, 21 Idaho Code, shall set, and notify the county clerk of, the date and location 22 set for the annual budget hearing of the district. The district board shall 23 publish a notice of the filing of the estimate, shall hold a public hearing on 24 the portion of the estimate not relating to debt service on general obligation 25 bonds and shall adopt a budget. Notice of the budget hearing shall be posted 26 at least ten (10) full days prior to the date of said meeting in at least one 27 (1) conspicuous place within the district to be determined by the district 28 board; a copy of the notice shall also be published in a newspaper of general 29 circulation in the county or city in which the proposed district is located, 30 in one (1) issue thereof, during such ten (10) day period. The place, hour and 31 day of the hearing shall be specified in said notice, as well as the place 32 where the budget may be examined prior to the hearing. A full and complete 33 copy of the proposed budget shall be published with and as a part of the pub- 34 lication of the notice of hearing. The budget shall be available for public 35 inspection from and after the date of the posting of notices of hearing as in 36 this section provided, at such place and during such business hours as the 37 district board may direct. A quorum of the district board shall attend the 38 hearing and explain the proposed budget and hear any and all objections to the 39 proposed budget. The district board at the time of the certification required 40 under subsection (2) of this section shall file with the board of county com- 41 missioners in each county in which the district is located a certified copy of 42 the annual budget as previously prepared, approved and adopted. 43 (2) The district board, having determined the total amount required from 44 property taxes upon all taxable real property within the district to raise the 45 amount of money fixed by the annual budget, including the amount of money 46 needed to satisfy annual bond payments, shall cause the amount of money so 47 determined to be certified in dollars to the board of county commissioners in 48 each county in which the district is located not later than the time required 49 for certification under section 63-803, Idaho Code. Said certification shall 50 list separately each tax levy if more than one (1), and the purpose of each 51 thereof, and shall otherwise comply with the requirements of section 63-803, 52 Idaho Code. 53 (3) Following such certification to the county commissioners, district 54 property taxes shall then be collected and accounted for at the time and in 55 the form and manner as other taxes are collected and accounted for under the 16 1 laws of this state. Except as specifically provided otherwise in this chapter, 2 all statutes of this state relating to the levy, collection, settlement and 3 payment of property taxes, including the collection of delinquent taxes and 4 sale of property for nonpayment of taxes, apply to district property taxes. 5 (4) The district board shall record with the county clerk in each county 6 in which the district is located, upon the records of each parcel of real 7 property within the district which is encumbered with future bond repayment 8 liability, the amount of additional taxes projected to become a tax lien for 9 future payment for the retirement of bonds issued under this chapter. 10 50-3014. DISSOLUTION OF DISTRICT. (1) The district shall be dissolved by 11 the district board by a resolution of the district board upon a determination 12 that each of the following conditions exist: 13 (a) All public infrastructure improvements owned by the district have 14 been, or provision has been made for all public infrastructure improve- 15 ments to be, conveyed either to a county or city in which the district is 16 located, or to a public district or other authority authorized by the laws 17 of this state to own such public infrastructure improvements; 18 (b) Either the district has no outstanding bond obligations or a county, 19 city or public district or other authority authorized by the laws of this 20 state to do so, has assumed all of the outstanding bond obligations of the 21 district; and 22 (c) All obligations of the district pursuant to any contracts or agree- 23 ments entered into by the district have been satisfied. 24 (2) All property within the district that is subject to the lien of dis- 25 trict taxes shall remain subject to the lien for the payment of general obli- 26 gation bonds, notwithstanding dissolution of the district. The district shall 27 not be dissolved if any revenue bonds of the district remain outstanding 28 unless an amount of money sufficient, together with investment income thereon, 29 to make all payments due on the revenue bonds either at maturity or prior 30 redemption has been deposited with a trustee or escrow agent and pledged to 31 the payment and redemption of the bonds. The district may continue to operate 32 after dissolution only as needed to collect money and make payments on any 33 outstanding bonds. 34 (3) The district shall send a notice of dissolution to the governing body 35 or bodies, the county assessor of each county in which the district is 36 located, and the state tax commission. The district shall also record a notice 37 of dissolution with the county clerk in each county in which the district is 38 located. 39 (4) Subject to the foregoing provisions of this section, if upon dissolu- 40 tion of the district there remain any excess moneys of the district, the dis- 41 trict board shall, by resolution, cause the same to be paid to the county 42 treasurer of each county in which the district is located to be distributed 43 among the cities and counties in which the district is located in proportion 44 to which said cities and counties receive property tax revenues generally. 45 50-3015. EXEMPTIONS AND EXCLUSIONS. (1) All public utilities, as defined 46 in section 61-129, Idaho Code, shall be exempt from taxation under this chap- 47 ter. 48 (2) No railroad right-of-way may be included within a public infrastruc- 49 ture improvements district without the consent of the railroad. 50 (3) No personal property within a public infrastructure improvements dis- 51 trict shall be subject to taxation under this chapter. 52 50-3016. LIMITATION OF LIABILITY. Neither any member of the district 17 1 board nor any person acting on behalf of the district, while acting within the 2 scope of his or her authority, shall be subject to any personal liability for 3 any action taken or omitted within that scope of authority. 4 50-3017. APPEAL -- EXCLUSIVE REMEDY -- CONCLUSIVENESS. Any person in 5 interest who feels aggrieved by the final decision of a governing body or a 6 district board in the formation or governing of a district including, without 7 limitation, with respect to any tax levy or bond, may within thirty (30) days 8 after such final decision seek judicial review by filing a written notice of 9 appeal with the clerk of the district and with the clerk of the district court 10 for the judicial district in which a majority of the land area of the district 11 is located. After said thirty (30) day period has run, no one shall have any 12 cause or right of action to contest the legality, formality or regularity of 13 said decision for any reason whatsoever and, thereafter, said decision shall 14 be considered valid and uncontestable without limitation, and the validity, 15 legality and regularity of any such decision shall be conclusively presumed. 16 Without limitation on the foregoing, if the question of validity of any bonds 17 issued pursuant to this chapter is not raised on appeal as aforesaid, the 18 authority to issue the bonds, the legality thereof and of the levies necessary 19 to pay the same shall be conclusively presumed and no court shall thereafter 20 have authority to inquire into such matters. 21 50-3018. CONSISTENCY WITH STATE LAW. (1) A public infrastructure improve- 22 ments district shall develop public infrastructure improvements consistent 23 with the general plan and in compliance with the requirements of chapter 13, 24 title 50, Idaho Code, and chapter 65, title 67, Idaho Code. 25 (2) A public infrastructure improvements district shall be deemed to be 26 of the same nature and afforded the same treatment as a local improvements 27 district for purposes of application of section 33-901, Idaho Code, section 28 58-336, Idaho Code, section 67-8209(1), Idaho Code, and section 67-8214(6), 29 Idaho Code. 30 50-3019. LIBERAL INTERPRETATION. The public infrastructure improvements 31 district act, being necessary for the welfare of this state and its inhabit- 32 ants, shall be liberally construed to effect the purposes of the act. 33 50-3020. SEVERABILITY. The provisions of this chapter are hereby declared 34 to be severable and if any provision or the application of the provision to 35 any person or circumstance is declared invalid for any reason, such declara- 36 tion shall not affect the validity of the remaining portions of this chapter.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005Moved by Roberts Seconded by Field (18) IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 298 1 AMENDMENTS TO SECTION 1 2 On page 6 of the printed bill, in line 42, delete "district board" and 3 insert: "city (cities) or county (counties) which authorized the formation of 4 the district". 5 On page 7, delete lines 52 through 54 and insert: 6 "(4) Subject to procurement requirements imposed by state law and any 7 additional procurement requirement set forth in any district financing and 8 development agreement contemplated under section 50-3003(3), Idaho Code, the 9 district board may enter into contracts to carry out any of the". 10 On page 10, delete lines 29 through 42 and insert: "full faith and credit 11 of the district is pledged exceed five percent (5%) of the actual or adjusted 12 market value for assessment purposes on all taxable real property within the 13 district as such valuation existed on December 31 of the previous year.". 14 On page 16, delete lines 7 through 9 and insert: "property within the dis- 15 trict which will be encumbered with future bond repayment liability, a notice 16 setting forth: 17 (a) The current obligation of a property owner within the district with 18 respect to bond repayment liability; 19 (b) That the obligation to retire the bonds will be the responsibility of 20 any property owner in the district through the payment of real property 21 taxes collected by the county treasurer in addition to all other property 22 tax payments; 23 (c) The estimated maximum tax rate upon the parcel for bond repayment; 24 (d) Whether the tax rate is to be maintained at any level by means of any 25 development agreement with the district; and 26 (e) In the event of the failure of the developer to maintain the tax 27 rate, the tax rate on a parcel will increase, as needed, to provide for 28 bond repayment. 29 Such notice may be separately recorded or included in a recorded financing and 30 development agreement as contemplated pursuant to section 50-3003(3), Idaho 31 Code. The governing body, in its resolution approving formation of the dis- 32 trict, shall require that a form disclosure, consistent with the foregoing, be 33 signed and acknowledged by any purchaser of land within the district prior to 34 purchase. The form disclosure shall be entitled "PID TAX DISCLOSURE NOTICE" 35 and, as determined appropriate by the district board, shall fully and fairly 36 disclose the property owner's PID tax liability, with estimated best and worst 37 case scenarios, with examples provided. The form disclosure shall also set 38 forth the estimated annual additional tax liability for any operation and 39 maintenance expense as may be levied pursuant to section 50-3012, Idaho Code. 40 The form disclosure shall be included in any developer sales and promotional 41 materials provided to prospective purchasers.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 298, As Amended 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 NOTICE AND CONDUCT OF ELECTIONS, TO PROVIDE FOR 11 TAXES, 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 CONSISTENCY WITH STATE LAW, TO PROVIDE LIBERAL INTERPRETATION AND TO PRO- 16 VIDE 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) "District" means a public infrastructure improvements district formed 2 pursuant to this chapter in one (1) or more counties and/or cities. 3 (3) "District board" means the board of directors of the district. 4 (4) "General plan" means the general plan for the development of public 5 infrastructure improvements for the district that includes a map of the bound- 6 aries of the district, a legal description of the district, a general descrip- 7 tion of anticipated public infrastructure improvements and their locations, 8 cost estimates as required by this chapter, proposed financing methods and 9 anticipated tax levies or other charges, as the general plan may be amended 10 from time to time. 11 (5) "Governing body" means the board or council that by law is consti- 12 tuted as the governing body of the county or city in which the district is 13 located. Reference in this chapter to "governing body or bodies" shall mean 14 the governing body or bodies of each county and city in which the district is 15 located. 16 (6) "Owner" means the person listed as the owner of real property within 17 the district or a proposed district on the current property rolls in effect at 18 the time that the action, proceeding, hearing or election has begun; provided 19 however, that if a person listed on the property rolls is no longer the owner 20 of real property within the district or a proposed district and the name of 21 the successor owner becomes known and is verified by recorded deed or other 22 similar evidence of transfer of ownership, the successor owner shall be deemed 23 to be the owner for the purposes of this chapter. An owner may include any 24 person who is: 25 (a) The administrator or executor of an estate of a decedent holding 26 record title to real property within the district; 27 (b) The guardian of a minor or incompetent person holding record title to 28 real property within the district, appointed and qualified under the laws 29 of this state; 30 (c) An officer of a corporation holding record title to real property 31 within the district, which officer has been authorized by resolution of 32 the corporation's board of directors to act with respect to such real 33 property; 34 (d) The manager(s) or member(s) of a limited liability company holding 35 record title to real property within the district which is authorized by 36 the operating agreement of the company to act with respect to such real 37 property; 38 (e) A general partner of a partnership holding record title to real prop- 39 erty within the district; and 40 (f) A trustee of a trust holding record title to real property within the 41 district. 42 (7) "Person" means any entity, individual, corporation, partnership, 43 firm, association, limited liability company, limited liability partnership, 44 trust or other such entities as recognized by the state of Idaho. A "person in 45 interest" is any person who is a qualified elector in the district, who is an 46 owner of real property in the district or who is a real property taxpayer in 47 the district. 48 (8) "Public infrastructure improvement" means any on-site or off-site 49 improvement that directly or indirectly benefits the district, including nec- 50 essary or incidental work, whether newly constructed, renovated or existing, 51 and all necessary or desirable appurtenances. Public infrastructure improve- 52 ments include, without limitation: 53 (a) Sanitary sewage systems, including collection, transport, storage, 54 treatment, dispersal, effluent use and discharge; 55 (b) Drainage and flood control systems, including collection, transport, 3 1 diversion, storage, detention, retention, dispersal, use and discharge; 2 (c) Water systems for domestic, commercial, office, hotel or motel, 3 industrial, irrigation, municipal or fire protection purposes, including 4 production, collection, storage, treatment, transport, delivery, connec- 5 tion and dispersal; 6 (d) Other utilities and utility systems, facilities and structures; 7 (e) Highways, streets, roadways, bridges, crossing structures, curbs, 8 gutters, sidewalks and parking facilities, including all areas for vehicu- 9 lar use for travel, ingress, egress and parking, traffic control systems 10 and devices, including signals, controls, markings and signage; 11 (f) Trails and areas for pedestrian, equestrian, bicycle or other 12 nonmotor vehicle use for travel, ingress, egress and parking; 13 (g) Pedestrian malls, parks, recreational facilities and open space areas 14 for the use of members of the public for entertainment, assembly and rec- 15 reation; 16 (h) Landscaping, including earthworks, structures, lakes and other water 17 features, plants, trees and related water delivery systems; 18 (i) Public buildings, including fire protection and police facilities, 19 libraries and other public educational or cultural facilities, exclusive 20 of school sites and facilities; 21 (j) Lighting systems related to the items listed in this subsection; 22 (k) Telecommunications lines and related equipment; 23 (l) Equipment related to the items listed in this subsection; and 24 (m) Inspection, construction management and program management costs. 25 (9) "Qualified elector" means: 26 (a) Any person who resides within the boundaries of a district or a pro- 27 posed district and who is a qualified elector as defined in section 28 34-104, Idaho Code (a "resident qualified elector"); or 29 (b) Any person who is an owner of real property which is located within 30 the district (an "owner qualified elector"). 31 50-3003. CREATION. (1) Whenever all of the owners of contiguous lands 32 desire to provide for the creation and organization of a public infrastructure 33 improvements district, a district may be created and organized as provided in 34 this chapter. As used in this section, "contiguous" shall mean being in actual 35 contact or touching along a boundary or at a point, except no area of land 36 shall be considered not contiguous solely by reason of a roadway or other 37 right-of-way, or solely by reason of intervening land owned by a federal, 38 state or local governmental entity. 39 (2) The creation and organization of a public infrastructure improvements 40 district shall be initiated by a petition signed by all of the owners of all 41 the lands located in the proposed district. The petition shall be filed with 42 the clerk of the governing body in which the proposed district will be 43 located. If the proposed district will be located within two (2) or more coun- 44 ties and/or cities, a petition conforming to the requirements of this section 45 shall be filed with the clerk of each jurisdiction's governing body. The peti- 46 tion shall state the name of the proposed district and the purpose for which 47 it is formed, state that the formation of the district will result in the levy 48 of property taxes and may result in the imposition of fees or charges to pay 49 the cost of providing services, and shall be accompanied by a map depicting 50 the boundaries of the proposed district, a legal description of the proposed 51 district and a copy of the proposed general plan. The petition shall also 52 include a copy of a proposed agreement, consistent with the general plan, for 53 district financing and development, which agreement: describes the public in- 54 frastructure improvements to be financed by the district and the estimated 4 1 cost thereof; identifies the public entities that will ultimately own the pub- 2 lic infrastructure improvements financed by the district; sets forth the total 3 amount of bonds to be issued by the district and the property taxes to be 4 levied to repay the bonds; contains provisions regarding the disbursement of 5 bond proceeds; and specifies any financial assurances to be provided. The pro- 6 posed agreement may contain other provisions relating to district financing 7 and development including, without limitation, intergovernmental agreements 8 and other matters relating to the public infrastructure improvements, such as 9 construction, acquisition, planning, design, inspection, ownership, control, 10 maintenance, operation and repair. The petition, together with all maps and 11 other papers filed therewith, shall be open to public inspection in the office 12 of the clerk in each county or city in which the petition is filed, during 13 such business hours as the clerk may direct. 14 (3) Upon the filing of a petition, the governing body shall give notice 15 of the filing of the petition and of the time and place set for a public hear- 16 ing on the petition, which hearing shall be at a regular or special meeting 17 held within not less than thirty (30) days nor more than ninety (90) days 18 after the date of the filing of the petition. A notice of the time of the pub- 19 lic hearing shall be published by the governing body twice, the first time not 20 less than twelve (12) days prior to the hearing and the second time not less 21 than five (5) days prior to the hearing, in a newspaper of general circulation 22 in each county or city in which the proposed district will be located. The 23 notice shall state that a public infrastructure improvements district is pro- 24 posed to be formed, giving the proposed boundaries thereof, and that any per- 25 son who is a resident of, or a real property taxpayer in, the county or city 26 in which the proposed district will be located may, on the date fixed for the 27 public hearing, appear and offer any testimony pertaining to the formation of 28 the district and the proposed boundaries thereof. The notice shall also state 29 that any political subdivision of this state within whose jurisdiction the 30 proposed district will be located including, without limitation, a highway 31 district, a school district, a fire district or an ambulance district, may, on 32 the date fixed for the public hearing, appear and offer any testimony pertain- 33 ing to the formation of the district and the proposed boundaries thereof. If 34 the district will be located within two (2) or more counties and/or cities, 35 the governing bodies of such counties and/or cities shall coordinate their 36 efforts and shall either hold a public hearing in each county or city in which 37 the proposed district will be located, or hold a single public meeting in such 38 county or city as the governing bodies shall unanimously agree. After hearing 39 and considering any and all of the testimony given, the governing body shall 40 thereupon approve a resolution either denying the petition or granting the 41 same, and if granting the same, shall fix and describe in the resolution the 42 boundaries of the proposed district and order the formation of the same. A 43 resolution granting the petition shall also include the approval of an agree- 44 ment regarding district financing and development. The boards of county com- 45 missioners and/or the city councils, as such governing bodies, are hereby spe- 46 cifically authorized to act in a joint manner for such purposes. 47 (4) Whenever a petition shall be filed as provided in this section, the 48 petitioner(s) shall deposit with each governing body a sum sufficient to 49 defray the costs of publication of notice of the public hearing. In the event 50 the district is formed, said petitioner(s) shall be entitled to be reimbursed 51 such sum, as a district formation cost, from the district when moneys are 52 available to the district for such purpose. The amount required to be paid 53 under this subsection shall be determined by each governing body and deposited 54 before publication. 55 (5) The governing body may charge the petitioner(s) a reasonable fee for 5 1 the governing body to retain outside advisors to assist the governing body in 2 its consideration of the formation of the district. In the event the district 3 is formed, the petitioner(s) shall be entitled to be reimbursed such fee, as a 4 district formation cost, from the district when moneys are available to the 5 district for such purpose. 6 50-3004. ORGANIZATION. (1) If the petition for formation of the district 7 is granted, the district shall comply with the filing and recording require- 8 ments of section 63-215, Idaho Code, and shall also cause a copy of the appli- 9 cable resolution to be delivered to the county assessor of each county in 10 which the district is located, cause a copy of the applicable resolution to be 11 recorded with the county clerk in each county in which the district is 12 located, and cause a copy of the applicable resolution to be filed with the 13 state tax commission. 14 (2) Except as provided in subsection (12) of this section, members of the 15 governing body or bodies at the time of formation shall serve as the district 16 board. If the district is located entirely within the boundaries of a city, 17 three (3) members of the city council chosen by the city council shall serve 18 as the district board. If the district is located entirely within the bound- 19 aries of a county and outside the boundaries of any city, the county commis- 20 sioners of the county in which the district is located shall serve as the dis- 21 trict board. If the district is located within the jurisdiction of more than 22 one (1) governing body, two (2) members of each governing body shall be 23 appointed by that governing body to serve on the district board and, in addi- 24 tion, the governing body within whose jurisdiction the largest land area of 25 the district is located shall appoint another member from its governing body 26 to serve as an additional member of the district board, so that the district 27 board will always be comprised of an odd number of members. For purposes of 28 determining which jurisdiction has such largest land area, the land area in 29 the district which is within the incorporated city limits shall be considered 30 as being the land area of the city, and shall not be considered as part of the 31 land area of the county in which the city is located. If an area is added to 32 the district pursuant to section 50-3006(2), Idaho Code, and such area is 33 located in a city or county not already represented on the district board, or 34 if the addition of such area changes the jurisdiction in which the largest 35 land area of the district is located, the membership of the district board, at 36 the time of addition of such area, shall be adjusted in conformity with the 37 foregoing. If an area is deleted from the district pursuant to section 38 50-3006(1), Idaho Code, and, as a result, a county or city no longer has area 39 within the district, or such deletion changes the jurisdiction in which the 40 largest land area of the district is located, the membership of the district 41 board, at the time of deletion of such area, shall be adjusted in conformity 42 with the foregoing. If an area is annexed or deannexed by a city and, as a 43 result, the jurisdiction of a county or city is changed, the membership of the 44 district board at the time of such annexation or deannexation shall be 45 adjusted in conformity with the foregoing. The boards of county commissioners 46 and the city councils, as such governing bodies, are hereby specifically 47 authorized to act in a joint manner for such purposes. 48 (3) Within thirty (30) days after the date of the resolution ordering 49 formation of the district, and annually thereafter, the district board shall 50 meet and elect a chairman, a vice-chairman, a treasurer and a clerk to act as 51 the officers of the district board. Except for the office of chairman, the 52 offices may be combined. The district board shall, unless otherwise agreed by 53 a majority of the board, meet in the county or city within which the largest 54 land area of the district is located. The district shall keep the following 6 1 records, which shall be open to public inspection: 2 (a) Minutes of all meetings of the district board; 3 (b) All resolutions; 4 (c) Accounts showing all moneys received and disbursed; 5 (d) The annual budget; and 6 (e) All other records required to be maintained by law. 7 (4) The treasurer of the district shall have such duties as the district 8 board may prescribe together with the duty to keep account with the district, 9 to place to the credit of the district all moneys received by him or her from 10 the collection of taxes or from any other sources, and of all other moneys 11 belonging to the district and to pay over all moneys belonging to the district 12 on legally drawn warrants or orders of the district board. 13 (5) The clerk of the district shall have such duties as the district 14 board may prescribe together with the duty to conduct district elections and 15 to prepare and distribute legal notices. 16 (6) The district shall be separate and apart from any county or city. The 17 members of the district board, when serving in their official capacity as mem- 18 bers of the district board, shall act on behalf of the district and not as 19 members of a board of county commissioners or as members of a city council. 20 (7) The district board shall administer in a reasonable manner the imple- 21 mentation of the general plan. 22 (8) The district shall have perpetual existence until dissolved pursuant 23 to section 50-3014, Idaho Code. 24 (9) The formation of a district pursuant to this chapter shall not pre- 25 vent the subsequent establishment of similar districts or the improvement or 26 assessment of land within the district by a county, city or other political 27 subdivision. 28 (10) The formation of a district pursuant to this chapter shall not pre- 29 vent the exercise by a county, city or other political subdivision of any of 30 its powers on the same basis as on all other land within its jurisdiction. 31 (11) The formation of a district shall not constitute approval of any land 32 use application or the issuance of any permit for development within the dis- 33 trict. Notwithstanding the formation of a district, the development of real 34 property located within the district shall remain subject to the provisions of 35 chapter 65, title 67, Idaho Code, and the applicable planning and zoning ordi- 36 nances of the counties and cities in which the district is located. 37 (12) At the time of formation of the district, a governing body may pro- 38 vide by resolution that it will appoint residents of the governing body's 39 jurisdiction to serve on the district board in place of members of the govern- 40 ing body. The resolution shall set forth the governing body's initial appoint- 41 ments. An appointed member must have resided within the jurisdiction of the 42 city (cities) or county (counties) which authorized the formation of the dis- 43 trict for at least two (2) years prior to his or her appointment and must 44 remain a resident of such jurisdiction during his or her service on the dis- 45 trict board. An appointed member shall serve for such term or terms as deemed 46 appropriate by the governing body. An appointed member shall be appointed 47 without respect to political affiliation. An appointed member may be removed 48 by a majority vote of the governing body. If a vacancy occurs on the district 49 board, the vacancy shall be filled by appointment made by the governing body. 50 50-3005. POWERS. (1) The district shall have the power to finance public 51 infrastructure improvements consistent with the general plan and as provided 52 in this chapter. In addition to the powers otherwise granted to a district 53 pursuant to this chapter, the district board, in implementing the general 54 plan, may: 7 1 (a) Enter into contracts and expend money for any public infrastructure 2 improvement; 3 (b) Enter into intergovernmental agreements as provided in sections 4 67-2326 through 67-2333, Idaho Code; 5 (c) Acquire interests in real property and personal property for public 6 infrastructure improvements, within or without the district, and sell, 7 dedicate, lease or otherwise dispose of district property if the sale, 8 dedication, lease or conveyance is not a violation of the terms of any 9 contract or bond covenant of the district; 10 (d) Plan, design, engineer, acquire, construct, install, operate, main- 11 tain and repair public infrastructure improvements including, without lim- 12 itation, acquiring, converting, renovating or improving existing facili- 13 ties; 14 (e) Employ and establish compensation for staff, counsel and consultants 15 and pay such compensation out of the treasury of the district; 16 (f) Reimburse a county, city or other political subdivision of this state 17 for staff and consultant services and support facilities supplied by the 18 county, city or other political subdivision; 19 (g) Accept gifts or grants and incur and repay loans for any public in- 20 frastructure improvements; 21 (h) Enter into agreements with owners concerning the advance of money by 22 owners for public infrastructure improvements or the granting of real 23 property by the owners for public infrastructure improvements; 24 (i) Levy property taxes and impose fees and charges for any public infra- 25 structure improvements on any real property located within the district 26 and, in conjunction with the levy of such taxes, fees and charges, set and 27 collect or cause to be collected administrative fees; 28 (j) Incur expenses of the district incident to and reasonably necessary 29 to implementing the general plan, and pay the same including, without lim- 30 itation, as regards the financial, legal and administrative costs of the 31 district; 32 (k) Borrow money and incur indebtedness and evidence the same by certifi- 33 cates, notes, bonds or debentures, and enter into contracts, agreements 34 and trust indentures to obtain credit enhancement or liquidity support for 35 its bonds and process the issuance, registration, transfer and payment of 36 its bonds and the disbursement and investment of proceeds of its bonds; 37 (l) Use public easements and rights-of-way in or across public property, 38 roadways, highways, streets or other thoroughfares and other public ease- 39 ments and rights-of-way, whether in or out of the geographical limits of 40 the district, county or city; 41 (m) Sue and be sued and prosecute and defend, at law or in equity. 42 (2) Public infrastructure improvements other than personalty, whether 43 located in or out of the district, may be located only in or on lands, ease- 44 ments or rights-of-way owned by this state or a political subdivision thereof. 45 (3) An agreement pursuant to paragraph (h) of subsection (1) of this sec- 46 tion may include agreements to repay all or part of such advances, fees and 47 charges from the proceeds of bonds if issued or from advances, fees and 48 charges collected from other owners or users or those having a right to use 49 any public infrastructure improvements. A person does not have authority to 50 compel the issuance or sale of the bonds of the district or the exercise of 51 any taxing power of the district to make repayment under any agreement. 52 (4) Subject to procurement requirements imposed by state law and any 53 additional procurement requirement set forth in any district financing and 54 development agreement contemplated under section 50-3003(3), Idaho Code, the 55 district board may enter into contracts to carry out any of the district's 8 1 authorized powers, including the planning, design, engineering, financing, 2 construction and acquisition of public infrastructure improvements, with a 3 contractor, an owner or other person, on such terms and with such persons or 4 entities as the district board determines to be appropriate. 5 (5) The district board may also enter into or approve agreements by and 6 among any or all of an owner; a developer; a county, a city or any other 7 political subdivision of this state concerning the development, improvement 8 and use of specific property within the district including, without limita- 9 tion, financial responsibilities and other obligations related thereto. 10 (6) This section does not authorize a district to acquire, construct, 11 operate or maintain an electric generation, transmission or distribution sys- 12 tem or facility, a natural gas distribution system or facility, or a fiber 13 optic or coaxial cable system or facility without the written consent of any 14 provider, the service area of which encompasses all or part of the district, 15 if that provider is providing or is capable of adequately providing such elec- 16 trical, gas or cable service in the district. 17 50-3006. CHANGE IN DISTRICT BOUNDARIES OR GENERAL PLAN. (1) After dis- 18 trict formation, an area may be deleted from the district only following 19 notice and hearing in the manner prescribed for the formation hearing, adop- 20 tion of a resolution of intention to do so by the district board and voter 21 approval by the qualified electors as provided in section 50-3011, Idaho Code. 22 Lands within the district that are subject to the lien of property taxes or 23 other charges imposed pursuant to this chapter shall not be deleted from the 24 district while there are bonds outstanding that are payable by such taxes or 25 charges. 26 (2) After district formation, an area may be added to the district upon 27 adoption of a resolution of intention to do so by the district board and the 28 approvals of all the owners of the lands to be added and the governing body of 29 each county or city within which such lands are located, subject to notice, 30 hearing and adoption of a resolution in the manner as required for the forma- 31 tion of a district. 32 (3) If an area is deleted or added under subsection (1) or (2) of this 33 section, the district board shall attend to the recording and filing require- 34 ments set forth in section 63-215(1), Idaho Code, and shall also cause a copy 35 of the applicable resolution to be delivered to the county assessor of each 36 county in which the district is located, cause a copy of the applicable reso- 37 lution to be recorded with the county clerk in each county in which the dis- 38 trict is located, and cause a copy of the applicable resolution to be filed 39 with the state tax commission. 40 (4) The district board, following notice and hearing in the manner pre- 41 scribed for the formation hearing, may amend the general plan in any manner 42 that it determines will not substantially reduce the benefits to be received 43 by any land within the district from the public infrastructure improvements on 44 completion of the work to be performed under the general plan. No election 45 shall be required for the purposes of this subsection. 46 50-3007. FINANCES. (1) The public infrastructure improvements shown in 47 the general plan may be financed from the following sources of revenue: 48 (a) Proceeds received from the sale of bonds of the district; 49 (b) Money of a county or city contributed to the district; 50 (c) Property taxes; 51 (d) State or federal grants or contributions; 52 (e) Private contributions; 53 (f) User, landowner and other fees and charges; 9 1 (g) Proceeds of loans or advances; and 2 (h) Any other money available to the district by law. 3 (2) The amount of indebtedness evidenced by general obligation bonds 4 issued pursuant to section 50-3008, Idaho Code, and revenue bonds issued pur- 5 suant to section 50-3009, Idaho Code, shall not exceed the estimated cost of 6 the public infrastructure improvements to be financed with such bonds, plus 7 all costs connected with issuance and sale of such bonds including, without 8 limitation, formation costs, credit enhancement and liquidity support fees and 9 costs. The total aggregate outstanding principal amount of general obligation 10 bonds and other indebtedness for which the full faith and credit of the dis- 11 trict are pledged shall not affect the general obligation bonding capacity of 12 any county or city in which the district is located. 13 (3) Bonds issued by a district shall not be a general obligation of this 14 state or of any county or city in which the district is located and shall not 15 pledge the full faith and credit of this state, or any county or city in which 16 the district is located. 17 50-3008. GENERAL OBLIGATION BONDS -- LEVY. (1) After district formation, 18 whenever the district board shall deem it advisable to issue general obliga- 19 tion bonds of the district, the district board shall provide therefor by reso- 20 lution, which resolution shall specify and set forth the public infrastructure 21 improvements consistent with the general plan to be financed with the bonds, 22 and make provision for the collection of an annual tax sufficient to pay the 23 interest on the bonds as it falls due, and also to constitute a sinking fund 24 for the payment of the principal thereof as required by the constitution and 25 laws of the state of Idaho. 26 (2) The resolution shall also provide for holding an election, held in 27 compliance with section 50-3011, Idaho Code, to submit to the qualified elec- 28 tors of the district the question of authorizing the district to issue general 29 obligation bonds of the district to provide money for said public infrastruc- 30 ture improvements consistent with the general plan. The ballot used in such 31 election shall be in form substantially as follows: "In favor of issuing bonds 32 to the amount of ............ dollars for the purpose stated in Resolution No. 33 .....," and "Against issuing bonds to the amount of ............ dollars for 34 the purpose stated in Resolution No. ..... ." 35 (3) If two-thirds (2/3) of the qualified electors voting at such election 36 assent to the issuing of the bonds and the incurring of the indebtedness 37 thereby created for the purpose aforesaid, the district board shall thereupon 38 be authorized to issue and create such indebtedness in the manner and for the 39 purposes specified in said resolution, and the bonds shall be issued and sold 40 in the manner provided by the laws of the state of Idaho, and the district 41 board by further resolution shall be entitled to issue and sell the bonds in 42 series or divisions up to the authorized amount without the further vote of 43 the qualified electors, and to issue and sell such bonds at such times and in 44 such amounts as the district board deems appropriate to carry out a public in- 45 frastructure improvements project or projects in phases; provided however, 46 that before any issuance of the bonds, including issuance in series or divi- 47 sions, and in addition to such other determinations made by the district board 48 as it may deem reasonable and prudent, the district board shall also: 49 (a) Determine whether the estimated annual tax revenues of the district 50 are adequate to support all of the general obligation bonds of the dis- 51 trict that will be outstanding after the proposed issuance, disregarding 52 any tax revenue from taxable real property in the district owned by a de- 53 veloper of the real property within the district. In making such determi- 54 nation, the district board shall take into consideration the market value 10 1 for assessment purposes at the last preceding county assessment of all 2 taxable real property within the district and, for all taxable real prop- 3 erty within the district for which a market value was not established at 4 the last preceding county assessment, the fair market value of that tax- 5 able real property, including the value of the improvements thereon both 6 before and after the public improvements will be completed; and 7 (b) Determine whether the financial condition of a developer of the real 8 property within the district is such that the tax revenue from the real 9 property owned by the developer is a reliable source of revenue to support 10 the repayment of the bonds. If the district board concludes that the 11 financial condition of a developer is such that revenue from the 12 developer's real property is a reliable source of revenue, the estimated 13 annual tax revenue from the real property owned by the developer shall be 14 added to the estimated annual tax revenue from the other taxable real 15 property in the district, as calculated under paragraph (a) of this sub- 16 section, and the total shall be the estimated total annual tax revenue of 17 the district. If the district board concludes that the revenue from the 18 real property owned by a developer is not a reliable source of revenue, 19 the estimated revenue from the real property owned by the developer shall 20 not be included in computing the estimated total annual tax revenue of the 21 district; and 22 (c) Determine whether reasonable financial assurance for the payment of 23 the debt service on the bonds through additional collateral, payment guar- 24 antee or otherwise shall be required from a developer. If the district 25 board decides that reasonable financial assurance shall be required, in 26 its resolution the district board shall specify the type and amount of the 27 financial assurance required. 28 (4) In no event shall the aggregate issued and outstanding principal 29 amount of general obligation bonds and any other indebtedness for which the 30 full faith and credit of the district is pledged exceed five percent (5%) of 31 the actual or adjusted market value for assessment purposes on all taxable 32 real property within the district as such valuation existed on December 31 of 33 the previous year. 34 (5) After the bonds are issued, the district shall enter in its minutes a 35 record of the bonds sold and their number and dates and shall periodically 36 collect the pledged revenues to pay the debt service on the bonds when due. 37 Bond proceeds received by the district shall be held in a segregated account 38 and shall be disbursed therefrom only for the payment of public infrastructure 39 improvements actually completed or for the purpose of reimbursing expenditures 40 actually made for public infrastructure improvements approved by the district 41 board; provided however, that lien releases with respect to the payment made 42 must be obtained from the underlying providers of labor, work, services or 43 materials as a condition to such payment. Completion of public infrastructure 44 improvements may be phased and payment made pursuant to a draw schedule. Prior 45 to issuance of the bonds, the district board shall determine that it can be 46 reasonably expected that the bond proceeds will be expended on the public in- 47 frastructure improvements within three (3) years after issuance. 48 (6) Each year, prior to the time for the certification required under 49 section 50-3013, Idaho Code, the district board shall levy a tax upon all tax- 50 able real property within the district, sufficient, together with any money 51 from the sources described in section 50-3007, Idaho Code, to pay debt service 52 on the bonds when due. The levy shall be made by resolution entered upon the 53 minutes of the district board, and it shall be the duty of the clerk of the 54 district, immediately after entry of the resolution in the minutes, to trans- 55 mit to the board of county commissioners in each county in which the district 11 1 is located, the certification required under section 50-3013, Idaho Code. Said 2 tax levied shall then be collected and accounted for at the time and in the 3 form and manner as other taxes are collected and accounted for under the laws 4 of this state. Money derived from the levy of property taxes to pay the debt 5 service on the bonds shall be kept separately from other funds of the dis- 6 trict. A district's levy of property taxes shall constitute a lien on all tax- 7 able real property within the district. 8 (7) The district may issue and sell refunding bonds to refund general 9 obligation bonds of the district authorized by this section. The principal 10 amount of the refunding bonds may be more or less than the principal amount of 11 the bonds being refunded provided the proceeds of the refunding bonds are used 12 only for refunding purposes and payment of the costs thereof, and the total 13 obligation of the district is not increased, that is, if the amount of the 14 refunding bonds is more than the principal amount of the bonds being refunded, 15 issuance of the refunding bonds will result in a net present value savings to 16 the district. No election shall be required in connection with the issuance 17 and sale of such refunding bonds. Refunding bonds issued pursuant to this sec- 18 tion shall have a final maturity date no later than the final maturity date of 19 the bonds being refunded. 20 50-3009. REVENUE BONDS -- FEES AND CHARGES. (1) Subject to section 3, 21 article VIII of the constitution of the state of Idaho, after district forma- 22 tion, whenever the district board shall deem it advisable to issue revenue 23 bonds of the district, the district board shall provide therefor by resolu- 24 tion, which resolution shall specify and set forth the public infrastructure 25 improvements consistent with the general plan to be financed with such bonds. 26 (2) The resolution shall also provide for holding an election, held in 27 compliance with section 50-3011, Idaho Code, to submit to the qualified elec- 28 tors of the district the question of authorizing the district to issue revenue 29 bonds of the district to provide money for said public infrastructure improve- 30 ments consistent with the general plan. 31 (3) Except as otherwise specifically set forth in this section, the pro- 32 visions of chapter 41, title 42, Idaho Code, water and sewer district revenue 33 bond act, shall apply with respect to the issuance of revenue bonds and 34 refunding bonds under this section in substantially the same manner as if the 35 district were a water and/or sewer district issuing bonds pursuant to the 36 water and sewer district revenue bond act, and the district board shall con- 37 duct itself in the issuance of revenue bonds in substantially the same manner 38 as the commissioners of a district under the water and sewer district revenue 39 bond act. 40 (4) If the revenue bonds are approved at the election, the district board 41 shall thereupon be authorized to issue and create such indebtedness in the 42 manner and for the purposes specified in said resolution, and such bonds shall 43 be issued and sold in the manner provided by the laws of the state of Idaho. 44 (5) After the bonds are issued, the district board shall enter in its 45 minutes a record of the bonds sold and their numbers and dates and shall peri- 46 odically collect the pledged revenues to pay the debt service on the bonds 47 when due. 48 (6) Money derived from the collection of revenues pledged to pay the debt 49 service on the bonds shall be kept separately from other funds of the dis- 50 trict. 51 (7) No holder of revenue bonds issued pursuant to this chapter may compel 52 any exercise of the taxing power of the district, county or city to pay the 53 bonds or the interest on the bonds. Revenue bonds issued pursuant to this 54 chapter are not a debt of the state or of any county or city in which the dis- 12 1 trict is located, nor are they the debt of the district, other than with 2 respect to the revenue pledged to the payment of the bonds. The payment of 3 revenue bonds is not enforceable out of any money other than the revenue 4 pledged to the payment of the bonds. 5 (8) Subject to the provisions of this section, a district may issue reve- 6 nue bonds at such times and in such amounts as the district deems appropriate 7 to carry out a project in phases. 8 (9) The district may issue and sell refunding bonds to refund revenue 9 bonds of the district authorized by this section. The principal amount of the 10 refunding bonds may be more or less than the principal amount of the bonds 11 being refunded provided the proceeds of the refunding bonds are used only for 12 refunding purposes and payment of the costs thereof, and the total obligation 13 of the district is not increased, that is, if the amount of the refunding 14 bonds is more than the principal amount of the bonds being refunded, issuance 15 of the refunding bonds will result in a net present value savings to the dis- 16 trict. No election shall be required in connection with the issuance and sale 17 of such refunding bonds. Refunding bonds issued pursuant to this section shall 18 have a final maturity date no later than the final maturity date of the bonds 19 being refunded. 20 50-3010. TERMS OF BONDS. For any bonds issued under this chapter, the 21 district board shall prescribe the denominations of the bonds, the principal 22 amount of each issue and the form of the bonds and shall establish the maturi- 23 ties, which shall not exceed thirty (30) years, interest payment dates and 24 interest rates, whether fixed or variable, not exceeding the maximum rate 25 stated in the notice of the election or the resolution of the district board. 26 The bonds, up to the aggregate authorized principal amount thereof, may be 27 issued in whole or divided into series, and by supplementary resolution 28 adopted from time to time by the district board, the district may issue any 29 remaining principal amount of the bonds in one (1) or more subsequent divi- 30 sions. No election shall be required in connection with the issuance of any 31 remaining principal amount of the bonds in a subsequent division. The bonds 32 may be sold by competitive bid or negotiated sale for public or private offer- 33 ing at, below or above par. The proceeds of the bonds shall be deposited with 34 the treasurer, or with a trustee or agent designated by the district board, to 35 the credit of the district to be withdrawn for the purposes provided by this 36 chapter. Pending that use, the proceeds may be invested as determined by the 37 district board. The bonds shall be made payable as to both principal and 38 interest solely from revenues of the district, and shall specify the revenues 39 pledged for such purposes, and shall contain such other terms, conditions, 40 covenants and agreements as the district board deems proper. The bonds may be 41 payable from any combination of taxes or revenues of the types described in 42 sections 50-3008 and 50-3009, Idaho Code. 43 50-3011. NOTICE AND CONDUCT OF ELECTION. (1) Any election pursuant to 44 this chapter shall be a nonpartisan election held in compliance with section 45 34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise specif- 46 ically set forth in this section, the district board shall cause the election 47 to be held and conducted in the same manner prescribed by law for the holding 48 of general elections in this state, including chapter 14, title 34, Idaho 49 Code, and shall call the election by posting notices in three (3) public 50 places within the boundaries of the district not less than thirty (30) days 51 before the election. Notice shall also be published twice, the first time not 52 less than twelve (12) days prior to the election and the second time not less 53 than five (5) days prior to the election, in a newspaper of general circula- 13 1 tion in each county or city in which the proposed district is located. The 2 notice shall state: 3 (a) The place of holding the election; 4 (b) Subject to section 34-1409, Idaho Code, the hours of the day during 5 which the polls will be open; 6 (c) If the election is a bond election, whether the bonds are general 7 obligation bonds or revenue bonds, the total principal amount of bonds to 8 be authorized, whether the bonds will be issued in series, the maximum 9 rate of interest to be paid on the bonds and the maximum term of the 10 bonds, not exceeding thirty (30) years; 11 (d) If the election is an election to change or eliminate an existing 12 tax, the maximum tax amount to be imposed, as a result of the change or 13 elimination; 14 (e) The purposes for which property taxes will be imposed, and the reve- 15 nues raised will be used, including a description of the public infra- 16 structure improvements to be financed with tax revenues, district reve- 17 nues or bond proceeds; 18 (f) That the imposition of property taxes will result in a lien for the 19 payment thereof on property within the district; and 20 (g) That a general plan is on file with the county clerk of each county 21 in which the district is located. 22 (2) The district board shall determine the date of the election and the 23 polling place(s) for the election. The district board may establish, change, 24 and consolidate election precincts within the district, as it deems necessary 25 and appropriate, and shall define precinct boundaries. 26 (3) Subject to section 50-3002(6) and (9), Idaho Code, the current prop- 27 erty rolls for the district and current voter lists in effect at the time that 28 the election has begun shall be used to determine the qualified electors. If 29 the district includes land lying partly in and partly out of any precinct, the 30 voter lists may contain the names of all electors in the precinct, and the 31 precinct boards at those precincts shall require that a prospective elector 32 execute an affidavit stating that the elector is also a qualified elector. 33 (4) If the district is to be located within two (2) or more counties 34 and/or cities, the election shall be held on the same day in each jurisdic- 35 tion. 36 (5) The ballot material provided to each voter shall include: 37 (a) For an election concerning the issuance of bonds, an impartial 38 description of the bonds to be issued and an impartial description of the 39 property taxes to be imposed, the method of apportionment, collection and 40 enforcement and other details sufficient to enable each qualified elector 41 to reasonably estimate the amount of tax it will be obligated to pay; and 42 a statement that the issuance of the bonds and the imposition of property 43 taxes is for the provision of certain, but not necessarily all, public in- 44 frastructure improvements that may be needed or desirable within the dis- 45 trict, and that other taxes or assessments by other governmental entities 46 may be presented for approval by qualified electors; and 47 (b) For an election to change an existing maximum or eliminate an exist- 48 ing tax, an impartial description of the change or elimination. 49 (6) Within ten (10) days after an election, the district board shall meet 50 and canvass the returns, and declare the results thereof. At least a two- 51 thirds (2/3) majority of the votes cast at the election shall be required for 52 issuing bonds or changing an existing tax; provided however, that with respect 53 to issuance of revenue bonds pursuant to the authority of and in compliance 54 with the requirements of section 3, article VIII of the constitution of the 55 state of Idaho, only the assent of a majority of the qualified electors voting 14 1 at the election shall be required. The canvass may be continued for an addi- 2 tional period not to exceed thirty (30) days after the election of the dis- 3 trict board for the purpose of completing the canvass. Failure of a required 4 majority to vote in favor of the matter submitted shall not prejudice the sub- 5 mission of the same or similar matters at a later election. The canvass of any 6 general obligation bond election shall be filed and recorded in each county in 7 which the district is located. 8 (7) In any election held pursuant to this chapter, every voter may vote 9 at any election held pursuant to this chapter, but shall be entitled to cast 10 only one (1) vote. Each resident qualified elector shall be entitled to one 11 (1) vote. An owner qualified elector who is also a resident qualified elector 12 shall be entitled to vote only as a resident qualified elector, and shall not 13 be entitled to an additional vote as a result of also being an owner. Each 14 owner qualified elector shall be entitled to one (1) vote, and when record 15 title is held in more than one (1) name, the owners shall file with the clerk 16 of the district at or prior to the election a designation in writing of which 17 one of the owners shall be deemed the owner for purposes of voting. 18 (8) In conducting an election, the polling official may require evidence 19 of ownership of property and designation of the power to exercise the vote of 20 any owner consistent with the provisions of this section and section 21 50-3002(9), Idaho Code. 22 50-3012. DISTRICT TAXES. (1) Each year, prior to the time for the certi- 23 fication required under section 50-3013, Idaho Code, the district board may 24 levy a tax upon all taxable real property within the district sufficient to 25 defray the organization, operation and maintenance expenses of the district of 26 up to twenty-four hundredths percent (.24%) of the market value for assessment 27 purposes on all taxable real property within the district, to be used for the 28 purposes of this chapter and for no other purpose. No election shall be 29 required. The levy shall be made by resolution entered upon the minutes of the 30 district board, and it shall be the duty of the clerk of the district, immedi- 31 ately after entry of the resolution in the minutes, to transmit to the board 32 of county commissioners in each county in which the district is located, the 33 certification required under section 50-3013, Idaho Code. Said tax shall then 34 be collected and accounted for at the time and in the form and manner as other 35 taxes are collected and accounted for under the laws of this state. 36 (2) Upon presentation to the district board of a petition signed by the 37 owners of a majority of the land area of the district, the district board 38 shall adopt a resolution to reduce or eliminate the portion of the tax, begin- 39 ning the next fiscal year, required for one (1) or more services specified in 40 the petition; provided however, that the district board shall adopt the reso- 41 lution only following its determination that such will not affect the ability 42 of the district to satisfy any obligation of the district for any such ser- 43 vice. Signatures on a petition to reduce or eliminate such tax shall be valid 44 for a period of sixty (60) days. 45 50-3013. ANNUAL FINANCIAL STATEMENTS AND ESTIMATES -- ANNUAL BUDGET -- 46 CERTIFICATION. (1) When levying property taxes, and prior to certification of 47 same to the county commissioners, the district board shall make annual state- 48 ments and estimates of the operation and maintenance expenses of the district, 49 the costs of public infrastructure improvements to be financed by the prop- 50 erty tax and the amount of all other expenditures for public infrastructure 51 improvements proposed to be paid from the property tax and of the amount to be 52 raised to pay general obligation bonds of the district, all of which shall be 53 provided for by the levy and collection of property taxes. The annual esti- 15 1 mates prepared by the district board shall include an amount determined by the 2 district board, in consultation with the county tax collector, to defray the 3 cost imposed upon the county tax collector's office for any additional admin- 4 istrative services that will be required in the collection of and accounting 5 for such district property taxes. Such additional cost shall be for those ser- 6 vices not otherwise included in the general tax collection and accounting ser- 7 vices already provided by the county tax collector's office and otherwise paid 8 for by property tax revenues, and shall be reasonably related to, but shall 9 not exceed, the actual cost of the additional administrative services pro- 10 vided. The district board shall file the annual statements and estimates with 11 the district clerk, and, not later than the time required by section 63-802A, 12 Idaho Code, shall set, and notify the county clerk of, the date and location 13 set for the annual budget hearing of the district. The district board shall 14 publish a notice of the filing of the estimate, shall hold a public hearing on 15 the portion of the estimate not relating to debt service on general obligation 16 bonds and shall adopt a budget. Notice of the budget hearing shall be posted 17 at least ten (10) full days prior to the date of said meeting in at least one 18 (1) conspicuous place within the district to be determined by the district 19 board; a copy of the notice shall also be published in a newspaper of general 20 circulation in the county or city in which the proposed district is located, 21 in one (1) issue thereof, during such ten (10) day period. The place, hour and 22 day of the hearing shall be specified in said notice, as well as the place 23 where the budget may be examined prior to the hearing. A full and complete 24 copy of the proposed budget shall be published with and as a part of the pub- 25 lication of the notice of hearing. The budget shall be available for public 26 inspection from and after the date of the posting of notices of hearing as in 27 this section provided, at such place and during such business hours as the 28 district board may direct. A quorum of the district board shall attend the 29 hearing and explain the proposed budget and hear any and all objections to the 30 proposed budget. The district board at the time of the certification required 31 under subsection (2) of this section shall file with the board of county com- 32 missioners in each county in which the district is located a certified copy of 33 the annual budget as previously prepared, approved and adopted. 34 (2) The district board, having determined the total amount required from 35 property taxes upon all taxable real property within the district to raise the 36 amount of money fixed by the annual budget, including the amount of money 37 needed to satisfy annual bond payments, shall cause the amount of money so 38 determined to be certified in dollars to the board of county commissioners in 39 each county in which the district is located not later than the time required 40 for certification under section 63-803, Idaho Code. Said certification shall 41 list separately each tax levy if more than one (1), and the purpose of each 42 thereof, and shall otherwise comply with the requirements of section 63-803, 43 Idaho Code. 44 (3) Following such certification to the county commissioners, district 45 property taxes shall then be collected and accounted for at the time and in 46 the form and manner as other taxes are collected and accounted for under the 47 laws of this state. Except as specifically provided otherwise in this chapter, 48 all statutes of this state relating to the levy, collection, settlement and 49 payment of property taxes, including the collection of delinquent taxes and 50 sale of property for nonpayment of taxes, apply to district property taxes. 51 (4) The district board shall record with the county clerk in each county 52 in which the district is located, upon the records of each parcel of real 53 property within the district which will be encumbered with future bond repay- 54 ment liability, a notice setting forth: 55 (a) The current obligation of a property owner within the district with 16 1 respect to bond repayment liability; 2 (b) That the obligation to retire the bonds will be the responsibility of 3 any property owner in the district through the payment of real property 4 taxes collected by the county treasurer in addition to all other property 5 tax payments; 6 (c) The estimated maximum tax rate upon the parcel for bond repayment; 7 (d) Whether the tax rate is to be maintained at any level by means of any 8 development agreement with the district; and 9 (e) In the event of the failure of the developer to maintain the tax 10 rate, the tax rate on a parcel will increase, as needed, to provide for 11 bond repayment. 12 Such notice may be separately recorded or included in a recorded financing and 13 development agreement as contemplated pursuant to section 50-3003(3), Idaho 14 Code. The governing body, in its resolution approving formation of the dis- 15 trict, shall require that a form disclosure, consistent with the foregoing, be 16 signed and acknowledged by any purchaser of land within the district prior to 17 purchase. The form disclosure shall be entitled "PID TAX DISCLOSURE NOTICE" 18 and, as determined appropriate by the district board, shall fully and fairly 19 disclose the property owner's PID tax liability, with estimated best and worst 20 case scenarios, with examples provided. The form disclosure shall also set 21 forth the estimated annual additional tax liability for any operation and 22 maintenance expense as may be levied pursuant to section 50-3012, Idaho Code. 23 The form disclosure shall be included in any developer sales and promotional 24 materials provided to prospective purchasers. 25 50-3014. DISSOLUTION OF DISTRICT. (1) The district shall be dissolved by 26 the district board by a resolution of the district board upon a determination 27 that each of the following conditions exist: 28 (a) All public infrastructure improvements owned by the district have 29 been, or provision has been made for all public infrastructure improve- 30 ments to be, conveyed either to a county or city in which the district is 31 located, or to a public district or other authority authorized by the laws 32 of this state to own such public infrastructure improvements; 33 (b) Either the district has no outstanding bond obligations or a county, 34 city or public district or other authority authorized by the laws of this 35 state to do so, has assumed all of the outstanding bond obligations of the 36 district; and 37 (c) All obligations of the district pursuant to any contracts or agree- 38 ments entered into by the district have been satisfied. 39 (2) All property within the district that is subject to the lien of dis- 40 trict taxes shall remain subject to the lien for the payment of general obli- 41 gation bonds, notwithstanding dissolution of the district. The district shall 42 not be dissolved if any revenue bonds of the district remain outstanding 43 unless an amount of money sufficient, together with investment income thereon, 44 to make all payments due on the revenue bonds either at maturity or prior 45 redemption has been deposited with a trustee or escrow agent and pledged to 46 the payment and redemption of the bonds. The district may continue to operate 47 after dissolution only as needed to collect money and make payments on any 48 outstanding bonds. 49 (3) The district shall send a notice of dissolution to the governing body 50 or bodies, the county assessor of each county in which the district is 51 located, and the state tax commission. The district shall also record a notice 52 of dissolution with the county clerk in each county in which the district is 53 located. 54 (4) Subject to the foregoing provisions of this section, if upon dissolu- 17 1 tion of the district there remain any excess moneys of the district, the dis- 2 trict board shall, by resolution, cause the same to be paid to the county 3 treasurer of each county in which the district is located to be distributed 4 among the cities and counties in which the district is located in proportion 5 to which said cities and counties receive property tax revenues generally. 6 50-3015. EXEMPTIONS AND EXCLUSIONS. (1) All public utilities, as defined 7 in section 61-129, Idaho Code, shall be exempt from taxation under this chap- 8 ter. 9 (2) No railroad right-of-way may be included within a public infrastruc- 10 ture improvements district without the consent of the railroad. 11 (3) No personal property within a public infrastructure improvements dis- 12 trict shall be subject to taxation under this chapter. 13 50-3016. LIMITATION OF LIABILITY. Neither any member of the district 14 board nor any person acting on behalf of the district, while acting within the 15 scope of his or her authority, shall be subject to any personal liability for 16 any action taken or omitted within that scope of authority. 17 50-3017. APPEAL -- EXCLUSIVE REMEDY -- CONCLUSIVENESS. Any person in 18 interest who feels aggrieved by the final decision of a governing body or a 19 district board in the formation or governing of a district including, without 20 limitation, with respect to any tax levy or bond, may within thirty (30) days 21 after such final decision seek judicial review by filing a written notice of 22 appeal with the clerk of the district and with the clerk of the district court 23 for the judicial district in which a majority of the land area of the district 24 is located. After said thirty (30) day period has run, no one shall have any 25 cause or right of action to contest the legality, formality or regularity of 26 said decision for any reason whatsoever and, thereafter, said decision shall 27 be considered valid and uncontestable without limitation, and the validity, 28 legality and regularity of any such decision shall be conclusively presumed. 29 Without limitation on the foregoing, if the question of validity of any bonds 30 issued pursuant to this chapter is not raised on appeal as aforesaid, the 31 authority to issue the bonds, the legality thereof and of the levies necessary 32 to pay the same shall be conclusively presumed and no court shall thereafter 33 have authority to inquire into such matters. 34 50-3018. CONSISTENCY WITH STATE LAW. (1) A public infrastructure improve- 35 ments district shall develop public infrastructure improvements consistent 36 with the general plan and in compliance with the requirements of chapter 13, 37 title 50, Idaho Code, and chapter 65, title 67, Idaho Code. 38 (2) A public infrastructure improvements district shall be deemed to be 39 of the same nature and afforded the same treatment as a local improvements 40 district for purposes of application of section 33-901, Idaho Code, section 41 58-336, Idaho Code, section 67-8209(1), Idaho Code, and section 67-8214(6), 42 Idaho Code. 43 50-3019. LIBERAL INTERPRETATION. The public infrastructure improvements 44 district act, being necessary for the welfare of this state and its inhabit- 45 ants, shall be liberally construed to effect the purposes of the act. 46 50-3020. SEVERABILITY. The provisions of this chapter are hereby declared 47 to be severable and if any provision or the application of the provision to 48 any person or circumstance is declared invalid for any reason, such declara- 49 tion shall not affect the validity of the remaining portions of this chapter.
STATEMENT OF PURPOSE RS15084 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 2/3rd super majority vote of the qualified electors of the district. Revenue bonds would require either a 2/3rd majority or a simple majority, as controlled by Article VIII section 3 of the Idaho Constitution. This legislation will promote and accommodate orderly growth and development in both rural and non-rural areas. This legislation provides a mechanism for paying for infrastructure for the property within the district. Only the property within the district that is specially benefited by those improvements will pay the cost of those improvements. Fiscal impact This bill will have no impact on the general fund and no fiscal impact on local government. CONTACT: Name: Mike Brassey Phone: 336-7930 STATEMENT OF PURPOSE/FISCAL NOTE H 298