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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 - 2005
IN 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 - 2005
Moved 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 - 2005
IN 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