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H0485...............................................by REVENUE AND TAXATION
PUBLIC INFRASTRUCTURE IMPROVEMENT DISTRICTS - Adds to existing law to
provide for the creation of Public Infrastructure Improvement Districts.
01/26 House intro - 1st rdg - to printing
01/27 Rpt prt - to Rev/Tax
02/23 Rpt out - rec d/p - to 2nd rdg
02/24 2nd rdg - to 3rd rdg
02/28 3rd rdg - FAILED - 30-39-1
AYES -- Andrus, Bayer, Bedke, Bilbao, Black, Bradford, Chadderdon,
Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Field(18),
Garrett, Harwood, Lake, McGeachin, McKague, Miller, Nonini, Roberts,
Rydalch, Schaefer, Shepherd(8), Skippen, Smith(24), Smylie, Snodgrass
NAYS -- Anderson, Barraclough, Barrett, Bastian, Bell, Block, Boe,
Bolz, Brackett, Cannon, Eskridge, Field(23), Hart, Henbest,
Henderson, Jaquet, Kemp, LeFavour, Loertscher, Martinez, Mathews,
Mitchell, Moyle, Nielsen, Pasley-Stuart, Pence, Raybould, Ring,
Ringo, Rusche, Sali(Sali), Sayler, Shepherd(2), Shirley, Smith(30),
Stevenson, Trail, Wills, Mr. Speaker
Absent and excused -- Wood
Floor Sponsor - Roberts
Filed in Office of the Chief Clerk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 485
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, RELATIONSHIP TO OTHER LAWS AND A SHORT TITLE,
5 TO DEFINE TERMS, TO PROVIDE FOR CREATION OF PUBLIC INFRASTRUCTURE IMPROVE-
6 MENTS DISTRICTS, TO PROVIDE FOR ORGANIZATION OF A DISTRICT, TO PROVIDE
7 POWERS OF A DISTRICT, TO PROVIDE FOR A CHANGE IN DISTRICT BOUNDARIES OR
8 THE GENERAL PLAN, TO PROVIDE FOR FINANCES, TO PROVIDE FOR GENERAL OBLIGA-
9 TION BONDS AND TAX LEVIES, TO PROVIDE FOR REVENUE BONDS AND FEES AND
10 CHARGES, TO PROVIDE TERMS OF THE BONDS, TO PROVIDE FOR NOTICE AND CONDUCT
11 OF ELECTIONS, TO PROVIDE FOR TAXES, TO PROVIDE FOR FINANCIAL STATEMENTS
12 AND ESTIMATES, BUDGETS AND CERTIFICATION OF LEVIES, TO PROVIDE FOR DISCLO-
13 SURE, TO PROVIDE FOR DISSOLUTION OF A DISTRICT, TO PROVIDE FOR EXEMPTIONS
14 AND EXCLUSIONS, TO PROVIDE FOR LIMITATION OF LIABILITY, TO PROVIDE FOR
15 APPEAL, EXCLUSIVE REMEDY AND CONCLUSIVENESS, TO PROVIDE FOR CONSISTENCY
16 WITH STATE LAW, TO PROVIDE LIBERAL INTERPRETATION AND TO PROVIDE SEVER-
17 ABILITY.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Title 50, Idaho Code, be, and the same is hereby amended
20 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
21 ter 30, Title 50, Idaho Code, and to read as follows:
22 CHAPTER 30
23 PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICT ACT
24 50-3001. PURPOSE -- RELATIONSHIP WITH OTHER LAWS -- SHORT TITLE. (1) The
25 purpose of this chapter is to provide a means for cities and counties, at
26 their discretion, through the creation of public infrastructure improvements
27 districts, to require that the new growth creating the need for and benefit-
28 ting from new public infrastructure improvements pays for the improvements,
29 without an increase in the property taxes of the people who already live in
30 the cities or counties.
31 (2) A public infrastructure improvements district may be formed only
32 after (a) prior review and approval by the governing body of each county or
33 city in which the district is proposed to be located of a petition requesting
34 the formation of the district, and (b) the necessary approvals and permits for
35 site development under the local land use planning act and the planning and
36 zoning ordinances of each county and city in which the district is proposed to
37 be located have been obtained; provided however, that where there will be
38 phased development, approvals and permits obtained for the first phase of site
39 development shall be sufficient for the initial creation and organization of
40 the district. The formation of a district pursuant to this chapter shall not
41 prevent the exercise by a county, city or other political subdivision of any
42 of its powers on the same basis as on all other land within its jurisdiction.
2
1 Notwithstanding the formation of a district, the development of real property
2 located within the district shall remain subject to the provisions of chapter
3 65, title 67, Idaho Code, and the applicable planning and zoning ordinances of
4 the counties and cities in which the district is located. The formation of a
5 district pursuant to this chapter shall not prevent the subsequent establish-
6 ment of similar districts or the improvement or assessment of land within the
7 district by a county, city or other political subdivision.
8 (3) This chapter shall be known and cited as the "Public Infrastructure
9 Improvements District Act."
10 50-3002. DEFINITIONS. The following words and phrases when used in this
11 chapter shall have the meanings respectively given herein:
12 (1) "Debt service" means the principal of, interest on and premium, if
13 any, on the bonds, when due, whether at maturity or prior redemption and fees
14 and costs of registrars, trustees, paying agents or other agents necessary to
15 handle the bonds and the costs of credit enhancement or liquidity support.
16 (2) "District" means a public infrastructure improvements district formed
17 pursuant to this chapter that includes contiguous property in one (1) or more
18 counties and/or cities. For purposes of the foregoing, "contiguous" shall mean
19 being in actual contact or touching along a boundary or at a point, except no
20 area of land shall be considered not contiguous solely by reason of a roadway
21 or other right-of-way, or solely by reason of intervening land owned by a fed-
22 eral, state or local governmental entity.
23 (3) "District board" means the board of directors of the district.
24 (4) "District development agreement" means an agreement between a prop-
25 erty owner or developer, the county or city, any other political subdivision
26 of the state, and/or the district, that may be used to establish obligations
27 of the parties to the agreement relating to district financing and develop-
28 ment, including, without limitation, intergovernmental agreements and other
29 matters relating to the public infrastructure improvements, such as construc-
30 tion, acquisition, planning, design, inspection, ownership, control, mainte-
31 nance, operation and repair, and public services. A district development
32 agreement shall be in addition to and shall not supplant any development
33 agreement entered into pursuant to section 67-6511A, Idaho Code, pursuant to
34 which a governing body may require or permit as a condition of rezoning that
35 an owner or developer make a written commitment concerning the use or develop-
36 ment of the subject parcel.
37 (5) "General plan" means the general plan described in section
38 50-3003(1), Idaho Code, as the plan may be amended from time to time.
39 (6) "Governing body" means the board or council that by law is consti-
40 tuted as the governing body of the county or city in which the district is
41 located. Reference in this chapter to "governing body or bodies" shall mean
42 the governing body or bodies of each county and city in which the district is
43 located.
44 (7) "Owner" means the person listed as the owner of real property within
45 the district or a proposed district on the current property rolls in effect at
46 the time that the action, proceeding, hearing or election has begun; provided
47 however, that if a person listed on the property rolls is no longer the owner
48 of real property within the district or a proposed district and the name of
49 the successor owner becomes known and is verified by recorded deed or other
50 similar evidence of transfer of ownership, the successor owner shall be deemed
51 to be the owner for the purposes of this chapter.
52 (8) "Person" means any entity, individual, corporation, partnership,
53 firm, association, limited liability company, limited liability partnership,
54 trust or other such entities as recognized by the state of Idaho. A "person
3
1 in interest" is any person who is a qualified elector in the district, who is
2 an owner of real property in the district or who is a real property taxpayer
3 in the district.
4 (9) "Public infrastructure improvement" means any on-site or off-site
5 improvement that directly or indirectly benefits the district that is a pub-
6 lic facility as defined in section 67-8203(24), Idaho Code.
7 (10) "Qualified elector" means:
8 (a) A "resident qualified elector" is any person who resides within the
9 boundaries of a district or a proposed district and who is a qualified
10 elector as defined in section 34-104, Idaho Code; or
11 (b) An "owner qualified elector" is any person who is an owner of real
12 property that is located within the district, who is not a resident quali-
13 fied elector.
14 50-3003. CREATION. (1) The process for the creation and organization of a
15 public infrastructure improvements district shall be initiated by a petition
16 signed by all of the owners of all the lands located in the proposed district.
17 The petition shall be filed with the clerk of the governing body in which the
18 proposed district will be located. If the proposed district will be located
19 within two (2) or more counties and/or cities, a petition conforming to the
20 requirements of this section shall be filed with the clerk of each
21 jurisdiction's governing body. The petition shall state the name of the pro-
22 posed district and the purpose for which it is formed, state that the forma-
23 tion of the district shall entitle the district to levy property taxes and to
24 impose fees or charges to pay the cost of providing services, and shall be
25 accompanied by a map depicting the boundaries of the proposed district, a
26 legal description of the proposed district and a copy of the proposed general
27 plan. The general plan shall describe or identify the public infrastructure
28 improvements to be financed by the district, the locations of the improvements
29 and the estimated cost thereof, the proposed financing methods and the antici-
30 pated tax levies or other charges, the approvals and permits obtained pursuant
31 to section 50-3001(2), Idaho Code, and may include possible alternatives, mod-
32 ifications or substitutions concerning locations, improvements, financing
33 methods and other information provided in the general plan. The petition shall
34 also include copies of any proposed district development agreements, the pur-
35 pose of which district development agreements shall be to establish the obli-
36 gations of the parties regarding matters such as, without limitation, the
37 ultimate ownership of the public infrastructure improvements financed by the
38 district, public infrastructure improvement operation and maintenance, the
39 total amount of bonds to be issued by the district and the property taxes to
40 be levied to repay the bonds and the provisions regarding the disbursement of
41 bond proceeds, and financial assurances, if any, to be provided with respect
42 to the bonds. A district development agreement may also be used to establish
43 the district's obligation regarding payment of the additional cost, if any, of
44 public services, such as public safety, fire protection and emergency medical
45 service, provided to the district. The "additional cost of public services"
46 shall mean the cost of public services, the need for which is attributable to
47 the new growth and development within the district, that is in excess of the
48 amount of general tax revenue that will be already generated within the dis-
49 trict for the payment of such public services. The petition, together with all
50 maps and other papers filed therewith, shall be open to public inspection in
51 the office of the clerk in each county or city in which the petition is filed,
52 during such business hours as the clerk may direct.
53 (2) Upon the filing of a petition, the governing body shall give notice
54 of the filing of the petition and of the time and place set for a public hear-
4
1 ing on the petition, which hearing shall be at a regular or special meeting
2 held within not less than thirty (30) days nor more than ninety (90) days
3 after the date of the filing of the petition. A notice of the time of the pub-
4 lic hearing shall be published by the governing body twice, the first time not
5 less than twelve (12) days prior to the hearing and the second time not less
6 than five (5) days prior to the hearing, in a newspaper of general circulation
7 in each county or city in which the proposed district will be located. The
8 notice shall state that a public infrastructure improvements district is pro-
9 posed to be formed, giving the proposed boundaries thereof, and that any per-
10 son who is a resident of or a real property taxpayer in the county or city in
11 which the proposed district will be located may, on the date fixed for the
12 public hearing, appear and offer any testimony pertaining to the formation of
13 the district and the proposed boundaries thereof. The notice shall also state
14 that any political subdivision of this state within whose jurisdiction the
15 proposed district will be located, including, without limitation, a highway
16 district, a school district, a fire district or an ambulance district, may, on
17 the date fixed for the public hearing, appear and offer any testimony pertain-
18 ing to the formation of the district and the proposed boundaries thereof. If
19 the district will be located within two (2) or more counties and/or cities,
20 the governing bodies of such counties and/or cities shall coordinate their
21 efforts and shall either hold a public hearing in each county or city in which
22 the proposed district will be located, or hold a single public meeting in such
23 county or city as the governing bodies shall unanimously agree. After hearing
24 and considering any and all of the testimony given, the governing body shall
25 thereupon approve a resolution either denying the petition or granting the
26 same, and if granting the same, shall fix and describe in the resolution the
27 boundaries of the proposed district and order the formation of the same. A
28 resolution granting the petition may also include the approval of any district
29 development agreement that has been approved by the governing body in the
30 process of considering and approving the formation of the district. The boards
31 of county commissioners and/or the city councils, as such governing bodies,
32 are hereby specifically authorized to act in a joint manner for such purposes.
33 (3) Whenever a petition shall be filed as provided in this section, the
34 petitioner(s) shall deposit with each governing body a sum sufficient to
35 defray the costs of publication of notice of the public hearing. In the event
36 the district is formed, said petitioner(s) shall be entitled to be reimbursed
37 such sum, as a district formation cost, from the district when moneys are
38 available to the district for such purpose. The amount required to be paid
39 under this subsection shall be determined by each governing body and deposited
40 before publication.
41 (4) The governing body may charge the petitioner(s) a reasonable fee for
42 the governing body to retain outside advisors to assist the governing body in
43 its consideration of the formation of the district. In the event the district
44 is formed, the petitioner(s) shall be entitled to be reimbursed such fee, as a
45 district formation cost, from the district when moneys are available to the
46 district for such purpose.
47 50-3004. ORGANIZATION. (1) If the petition for formation of the district
48 is granted, the district shall comply with the filing and recording require-
49 ments of section 63-215, Idaho Code, and shall also cause a copy of the appli-
50 cable resolution to be delivered to the county assessor of each county in
51 which the district is located, cause a copy of the applicable resolution to be
52 recorded with the county clerk in each county in which the district is
53 located, and cause a copy of the applicable resolution to be filed with the
54 state tax commission.
5
1 (2) Except as provided in subsection (12) of this section, members of the
2 governing body or bodies at the time of formation shall serve as the district
3 board. If the district is located entirely within the boundaries of a city,
4 three (3) members of the city council chosen by the city council shall serve
5 as the district board. If the district is located entirely within the bound-
6 aries of a county and outside the boundaries of any city, the county commis-
7 sioners of the county in which the district is located shall serve as the dis-
8 trict board. If the district is located within the jurisdiction of more than
9 one (1) governing body, two (2) members of each governing body shall be
10 appointed by that governing body to serve on the district board and, in addi-
11 tion, the governing body within whose jurisdiction the largest land area of
12 the district is located shall appoint another member from its governing body
13 to serve as an additional member of the district board, so that the district
14 board will always be comprised of an odd number of members. For purposes of
15 determining which jurisdiction has such largest land area, the land area in
16 the district that is within the incorporated city limits shall be considered
17 as being the land area of the city, and shall not be considered as part of the
18 land area of the county in which the city is located. If an area is added to
19 the district pursuant to section 50-3006(2), Idaho Code, and such area is
20 located in a city or county not already represented on the district board, or
21 if the addition of such area changes the jurisdiction in which the largest
22 land area of the district is located, the membership of the district board, at
23 the time of addition of such area, shall be adjusted in conformity with the
24 foregoing. If an area is deleted from the district pursuant to section
25 50-3006(1), Idaho Code, and, as a result, a county or city no longer has area
26 within the district, or such deletion changes the jurisdiction in which the
27 largest land area of the district is located, the membership of the district
28 board, at the time of deletion of such area, shall be adjusted in conformity
29 with the foregoing. If an area is annexed or de-annexed by a city and, as a
30 result, the jurisdiction of a county or city is changed, the membership of the
31 district board at the time of such annexation or de-annexation shall be
32 adjusted in conformity with the foregoing. The boards of county commissioners
33 and the city councils, as such governing bodies, are hereby specifically
34 authorized to act in a joint manner for such purposes.
35 (3) Within thirty (30) days after the date of the resolution ordering
36 formation of the district, and annually thereafter, the district board shall
37 meet and elect a chairman, a vice-chairman, a treasurer and a clerk to act as
38 the officers of the district board. Except for the office of chairman, the
39 offices may be combined. The district board shall, unless otherwise agreed by
40 a majority of the board, meet in the county or city within which the largest
41 land area of the district is located. The district shall keep the following
42 records, which shall be open to public inspection:
43 (a) Minutes of all meetings of the district board;
44 (b) All resolutions;
45 (c) Accounts showing all moneys received and disbursed;
46 (d) The annual budget; and
47 (e) All other records required to be maintained by law.
48 (4) The treasurer of the district shall have such duties as the district
49 board may prescribe together with the duty to keep account with the district;
50 to place to the credit of the district all moneys received by him or her from
51 the collection of taxes or from any other sources, and of all other moneys
52 belonging to the district; and to pay over all moneys belonging to the dis-
53 trict on legally drawn warrants or orders of the district board.
54 (5) The clerk of the district shall have such duties as the district
55 board may prescribe together with the duty to conduct district elections and
6
1 to prepare and distribute legal notices.
2 (6) The district shall be separate and apart from any county or city. The
3 members of the district board, when serving in their official capacity as mem-
4 bers of the district board, shall act on behalf of the district and not as
5 members of a board of county commissioners or as members of a city council.
6 (7) The district board shall administer in a reasonable manner the imple-
7 mentation of the general plan.
8 (8) The district shall exist until dissolved pursuant to section 50-3015,
9 Idaho Code.
10 (9) The formation of a district pursuant to this chapter shall not pre-
11 vent the subsequent establishment of similar districts or the improvement or
12 assessment of land within the district by a county, city or other political
13 subdivision.
14 (10) The formation of a district pursuant to this chapter shall not pre-
15 vent the exercise by a county, city or other political subdivision of any of
16 its powers on the same basis as on all other land within its jurisdiction.
17 (11) The formation of a district shall not constitute approval of any land
18 use application or the issuance of any permit for development within the dis-
19 trict. Notwithstanding the formation of a district, the development of real
20 property located within the district shall remain subject to the provisions of
21 chapter 65, title 67, Idaho Code, and the applicable planning and zoning ordi-
22 nances of the counties and cities in which the district is located.
23 (12) At the time of formation of the district, a governing body may pro-
24 vide by resolution that it will appoint residents of the governing body's
25 jurisdiction to serve on the district board in place of members of the govern-
26 ing body. The resolution shall set forth the governing body's initial appoint-
27 ments. An appointed member must have resided within the jurisdiction of the
28 cities or counties that authorized the formation of the district for at least
29 two (2) years prior to his or her appointment and must remain a resident of
30 such jurisdiction during his or her service on the district board. An
31 appointed member shall serve for such term or terms as deemed appropriate by
32 the governing body. An appointed member shall be appointed without respect to
33 political affiliation. An appointed member may be removed by a majority vote
34 of the governing body. If a vacancy occurs on the district board, the vacancy
35 shall be filled by appointment made by the governing body.
36 50-3005. POWERS. (1) A district formed pursuant to this chapter,
37 although a political subdivision of this state, is not a governmental entity
38 of general purposes and powers, but is a special limited purposes district,
39 with powers only as permitted under this chapter, which powers include, with-
40 out limitation, the power to finance public infrastructure improvements con-
41 sistent with the general plan and, in implementing the general plan, to:
42 (a) Enter into contracts and expend money for any public infrastructure
43 improvement;
44 (b) Enter into intergovernmental agreements as provided in sections
45 67-2326 through 67-2333, Idaho Code;
46 (c) Enter into district development agreements;
47 (d) Acquire interests in real property and personal property for public
48 infrastructure improvements, within or without the district, and sell,
49 dedicate, lease or otherwise dispose of district property if the sale,
50 dedication, lease or conveyance is not a violation of the terms of any
51 contract or bond covenant of the district;
52 (e) Plan, design, engineer, acquire, construct, install, operate, main-
53 tain and repair public infrastructure improvements, including, without
54 limitation, acquiring, converting, renovating or improving existing facil-
7
1 ities;
2 (f) Employ and establish compensation for staff, counsel and consultants
3 and pay such compensation out of the treasury of the district;
4 (g) Reimburse a county, city or other political subdivision of this state
5 for staff and consultant services and support facilities supplied by the
6 county, city or other political subdivision;
7 (h) Accept gifts or grants and incur and repay loans for any public in-
8 frastructure improvement;
9 (i) Enter into agreements with owners concerning the advance of money by
10 owners for public infrastructure improvements or the granting of real
11 property by the owners for public infrastructure improvements;
12 (j) Levy property taxes and impose fees and charges for any public infra-
13 structure improvement on any real property located within the district
14 and, in conjunction with the levy of such taxes, fees and charges, set and
15 collect or cause to be collected administrative fees;
16 (k) Incur expenses of the district incident to and reasonably necessary
17 to implementing the general plan, and pay the same, including, without
18 limitation, regarding the financial, legal and administrative costs of the
19 district;
20 (l) Borrow money and incur indebtedness and evidence the same by certifi-
21 cates, notes, bonds or debentures, and enter into contracts, agreements
22 and trust indentures to obtain credit enhancement or liquidity support for
23 its bonds and process the issuance, registration, transfer and payment of
24 its bonds and the disbursement and investment of proceeds of its bonds;
25 (m) Use public easements and rights-of-way in or across public property,
26 roadways, highways, streets or other thoroughfares and other public ease-
27 ments and rights-of-way, whether in or out of the geographical limits of
28 the district, county or city; and
29 (n) Sue and be sued and prosecute and defend, at law or in equity.
30 (2) Public infrastructure improvements other than personalty, whether
31 located in or out of the district, may be located only in or on lands, ease-
32 ments or rights-of-way owned by this state or a political subdivision thereof.
33 (3) An agreement pursuant to paragraph (i) of subsection (1) of this sec-
34 tion may include agreements to repay all or part of such advances, fees and
35 charges from the proceeds of bonds if issued or from advances, fees and
36 charges collected from other owners or users or those having a right to use
37 any public infrastructure improvements. A person does not have authority to
38 compel the issuance or sale of the bonds of the district or the exercise of
39 any taxing power of the district to make repayment under any agreement.
40 (4) With respect to goods, services or public works construction to be
41 financed pursuant to this chapter, the district, as a political subdivision of
42 this state, shall comply with all applicable procurement statutes, including
43 specifically section 67-2320, Idaho Code and chapter 28, title 67, Idaho Code.
44 (5) This section does not authorize a district to acquire, construct,
45 operate or maintain an electric generation, transmission or distribution sys-
46 tem or facility, a natural gas distribution system or facility, or a fiber
47 optic or coaxial cable system or facility without the written consent of any
48 provider, the service area of which encompasses all or part of the district,
49 if that provider is providing or is capable of adequately providing such elec-
50 trical, gas or cable service in the district.
51 50-3006. CHANGE IN DISTRICT BOUNDARIES OR GENERAL PLAN. (1) After dis-
52 trict formation, an area may be deleted from the district only following
53 notice and hearing in the manner prescribed for the formation hearing, adop-
54 tion of a resolution of intention to do so by the district board and voter
8
1 approval by the qualified electors as provided in section 50-3011, Idaho Code.
2 Lands within the district that are subject to the lien of property taxes or
3 other charges imposed pursuant to this chapter shall not be deleted from the
4 district while there are bonds outstanding that are payable by such taxes or
5 charges.
6 (2) After district formation, an area may be added to the district upon
7 adoption of a resolution of intention to do so by the district board and the
8 approvals of all the owners of the lands to be added and the governing body of
9 each county or city within which such lands are located, subject to notice,
10 hearing and adoption of a resolution in the manner as required for the forma-
11 tion of a district.
12 (3) If an area is deleted or added under subsection (1) or (2) of this
13 section, the district board shall attend to the recording and filing require-
14 ments set forth in section 63-215(1), Idaho Code, and shall also cause a copy
15 of the applicable resolution to be delivered to the county assessor of each
16 county in which the district is located, cause a copy of the applicable reso-
17 lution to be recorded with the county clerk in each county in which the dis-
18 trict is located, and cause a copy of the applicable resolution to be filed
19 with the state tax commission.
20 (4) The district board, following notice and hearing in the manner pre-
21 scribed for the formation hearing, may amend the general plan in any manner
22 that it determines will not substantially reduce the benefits to be received
23 by any land within the district from the public infrastructure improvements on
24 completion of the work to be performed under the general plan. No election
25 shall be required for the purposes of this subsection.
26 50-3007. FINANCES. (1) Only public infrastructure improvements to be
27 owned by this state or a political subdivision thereof may be financed pursu-
28 ant to this chapter. Such public infrastructure improvements shown in the gen-
29 eral plan may be financed from the following sources of revenue:
30 (a) Proceeds received from the sale of bonds of the district;
31 (b) Money of a county or city contributed to the district;
32 (c) Property taxes;
33 (d) State or federal grants or contributions;
34 (e) Private contributions;
35 (f) User, landowner and other fees and charges;
36 (g) Proceeds of loans or advances; and
37 (h) Any other money available to the district by law.
38 (2) The amount of indebtedness evidenced by general obligation bonds
39 issued pursuant to section 50-3008, Idaho Code, and revenue bonds issued pur-
40 suant to section 50-3009, Idaho Code, shall not exceed the estimated cost of
41 the public infrastructure improvements to be financed with such bonds, plus
42 all costs connected with issuance and sale of such bonds including, without
43 limitation, formation costs, credit enhancement and liquidity support fees and
44 costs. The total aggregate outstanding principal amount of general obligation
45 bonds and other indebtedness for which the full faith and credit of the dis-
46 trict are pledged shall not affect the general obligation bonding capacity of
47 any county or city in which the district is located.
48 (3) Bonds issued by a district shall not be a general obligation of this
49 state or of any county or city in which the district is located and shall not
50 pledge the full faith and credit of this state, or any county or city in which
51 the district is located.
52 50-3008. GENERAL OBLIGATION BONDS -- ELECTION -- MAXIMUM INDEBTEDNESS
53 ALLOWED -- LEVY. (1) After district formation, whenever the district board
9
1 shall deem it advisable to issue general obligation bonds of the district, the
2 district board shall provide therefor by resolution, which resolution shall
3 specify and set forth the public infrastructure improvements consistent with
4 the general plan and permitted by state law to be financed with the bonds, and
5 make provision for the collection of an annual tax sufficient to pay the
6 interest on the bonds as it falls due, and also to constitute a sinking fund
7 for the payment of the principal thereof as required by the constitution and
8 laws of the state of Idaho.
9 (2) The resolution shall also provide for holding an election, held in
10 compliance with section 50-3011, Idaho Code, to submit to the qualified elec-
11 tors of the district the question of authorizing the district to issue general
12 obligation bonds of the district to provide money for said public infrastruc-
13 ture improvements consistent with the general plan. The ballot used in such
14 election shall be in a form substantially as follows: "In favor of issuing
15 bonds to the amount of .......... dollars for the purpose stated in Resolution
16 No. ....," and "Against issuing bonds to the amount of .......... dollars for
17 the purpose stated in Resolution No. ....."
18 (3) If two-thirds (2/3) of the qualified electors voting at such election
19 assent to the issuing of the bonds and the incurring of the indebtedness
20 thereby created for the purpose aforesaid, the district board shall thereupon
21 be authorized to issue and create such indebtedness in the manner and for the
22 purposes specified in said resolution, and the bonds shall be issued and sold
23 in the manner provided by the laws of the state of Idaho, and the district
24 board by further resolution shall be entitled to issue and sell the bonds in
25 series or divisions up to the authorized amount without the further vote of
26 the qualified electors, and to issue and sell such bonds at such times and in
27 such amounts as the district board deems appropriate to carry out a public in-
28 frastructure improvements project or projects in phases; provided however,
29 that before any issuance of the bonds, including issuance in series or divi-
30 sions, and in addition to such other determinations made by the district board
31 as it may deem reasonable and prudent, the district board shall also:
32 (a) Determine whether the estimated annual tax revenues of the district
33 are adequate to support all of the general obligation bonds of the dis-
34 trict that will be outstanding after the proposed issuance, disregarding
35 any tax revenue from taxable real property in the district owned by a de-
36 veloper of the real property within the district. In making such determi-
37 nation, the district board shall take into consideration the market value
38 for assessment purposes at the last preceding county assessment of all
39 taxable real property within the district and, for all taxable real prop-
40 erty within the district for which a market value was not established at
41 the last preceding county assessment, the fair market value of that tax-
42 able real property, including the value of the improvements thereon both
43 before and after the public improvements will be completed; and
44 (b) Determine whether the financial condition of a developer of the real
45 property within the district is such that the tax revenue from the real
46 property owned by the developer is a reliable source of revenue to support
47 the repayment of the bonds. If the district board concludes that the
48 financial condition of a developer is such that revenue from the
49 developer's real property is a reliable source of revenue, the estimated
50 annual tax revenue from the real property owned by the developer shall be
51 added to the estimated annual tax revenue from the other taxable real
52 property in the district, as calculated under paragraph (a) of this sub-
53 section, and the total shall be the estimated total annual tax revenue of
54 the district. If the district board concludes that the revenue from the
55 real property owned by a developer is not a reliable source of revenue,
10
1 the estimated revenue from the real property owned by the developer shall
2 not be included in computing the estimated total annual tax revenue of the
3 district; and
4 (c) Determine whether reasonable financial assurance for the payment of
5 the debt service on the bonds through additional collateral, payment guar-
6 antee or otherwise shall be required from a developer. If the district
7 board decides that reasonable financial assurance shall be required, in
8 its resolution the district board shall specify the type and amount of the
9 financial assurance required.
10 (4) In no event shall the aggregate outstanding principal amount of gen-
11 eral obligation bonds and any other indebtedness for which the full faith and
12 credit of the district is pledged exceed five percent (5%) of the actual or
13 adjusted market value for assessment purposes on all taxable real property
14 within the district as such valuation existed on December 31 of the previous
15 year.
16 (5) After the bonds are issued, the district shall enter in its minutes a
17 record of the bonds sold and their number and dates and shall periodically
18 collect the pledged revenues to pay the debt service on the bonds when due.
19 (6) Bond proceeds received by the district shall be held in a segregated
20 account and shall be disbursed therefrom only for the payment of public infra-
21 structure improvements actually completed or for the purpose of reimbursing
22 expenditures actually made for public infrastructure improvements approved by
23 the district board; provided however, that lien releases with respect to the
24 payment made must be obtained from the underlying providers of labor, work,
25 services or materials as a condition to such payment.
26 (7) Completion of public infrastructure improvements may be phased and
27 payment made pursuant to a draw schedule. Prior to issuance of the bonds, the
28 district board shall determine that it can be reasonably expected that the
29 bond proceeds will be expended on the public infrastructure improvements
30 within three (3) years after issuance.
31 (8) Each year, prior to the time for the certification required under
32 section 50-3013, Idaho Code, the district board shall levy a tax upon all tax-
33 able real property within the district, sufficient, together with any money
34 from the sources described in section 50-3007, Idaho Code, to pay debt service
35 on the bonds when due. The levy shall be made by resolution entered upon the
36 minutes of the district board, and it shall be the duty of the clerk of the
37 district, immediately after entry of the resolution in the minutes, to trans-
38 mit to the board of county commissioners in each county in which the district
39 is located, the certification required under section 50-3013, Idaho Code. Said
40 tax levied shall then be collected and accounted for at the time and in the
41 form and manner as other taxes are collected and accounted for under the laws
42 of this state. Money derived from the levy of property taxes to pay the debt
43 service on the bonds shall be kept separately from other funds of the dis-
44 trict. A district's levy of property taxes shall constitute a lien on all tax-
45 able real property within the district.
46 (9) The district may issue and sell refunding bonds to refund general
47 obligation bonds of the district authorized by this section. The principal
48 amount of the refunding bonds may be more or less than the principal amount of
49 the bonds being refunded provided the proceeds of the refunding bonds are used
50 only for refunding purposes and payment of the costs thereof, and the total
51 obligation of the district is not increased, that is, if the amount of the
52 refunding bonds is more than the principal amount of the bonds being refunded,
53 issuance of the refunding bonds will result in a net present value savings to
54 the district. No election shall be required in connection with the issuance
55 and sale of such refunding bonds. Refunding bonds issued pursuant to this sec-
11
1 tion shall have a final maturity date no later than the final maturity date of
2 the bonds being refunded.
3 50-3009. REVENUE BONDS -- FEES AND CHARGES. (1) Subject to section 3,
4 article VIII of the constitution of the state of Idaho, after district forma-
5 tion, whenever the district board shall deem it advisable to issue revenue
6 bonds of the district, the district board shall provide therefor by resolu-
7 tion, which resolution shall specify and set forth the public infrastructure
8 improvements consistent with the general plan to be financed with such bonds.
9 (2) The resolution shall also provide for holding an election, held in
10 compliance with section 50-3011, Idaho Code, to submit to the qualified elec-
11 tors of the district the question of authorizing the district to issue revenue
12 bonds of the district to provide money for said public infrastructure improve-
13 ments consistent with the general plan.
14 (3) Except as otherwise specifically set forth in this section, the pro-
15 visions of chapter 41, title 42, Idaho Code, the water and sewer district rev-
16 enue bond act, shall apply with respect to the issuance of revenue bonds and
17 refunding bonds under this section in substantially the same manner as if the
18 district were a water and/or sewer district issuing bonds pursuant to the
19 water and sewer district revenue bond act, and the district board shall con-
20 duct itself in the issuance of revenue bonds in substantially the same manner
21 as the commissioners of a district under the water and sewer district revenue
22 bond act.
23 (4) If the revenue bonds are approved at the election, the district board
24 shall thereupon be authorized to issue and create such indebtedness in the
25 manner and for the purposes specified in said resolution, and such bonds shall
26 be issued and sold in the manner provided by the laws of the state of Idaho.
27 (5) After the bonds are issued, the district board shall enter in its
28 minutes a record of the bonds sold and their numbers and dates and shall peri-
29 odically collect the pledged revenues to pay the debt service on the bonds
30 when due.
31 (6) Money derived from the collection of revenues pledged to pay the debt
32 service on the bonds shall be kept separately from other funds of the dis-
33 trict.
34 (7) No holder of revenue bonds issued pursuant to this chapter may compel
35 any exercise of the taxing power of the district, county or city to pay the
36 bonds or the interest on the bonds. Revenue bonds issued pursuant to this
37 chapter are not a debt of the state or of any county or city in which the dis-
38 trict is located, nor are they the debt of the district, other than with
39 respect to the revenue pledged to the payment of the bonds. The payment of
40 revenue bonds is not enforceable out of any money other than the revenue
41 pledged to the payment of the bonds.
42 (8) Subject to the provisions of this section, a district may issue reve-
43 nue bonds at such times and in such amounts as the district deems appropriate
44 to carry out a project in phases.
45 (9) The district may issue and sell refunding bonds to refund revenue
46 bonds of the district authorized by this section. The principal amount of the
47 refunding bonds may be more or less than the principal amount of the bonds
48 being refunded provided the proceeds of the refunding bonds are used only for
49 refunding purposes and payment of the costs thereof, and the total obligation
50 of the district is not increased, that is, if the amount of the refunding
51 bonds is more than the principal amount of the bonds being refunded, issuance
52 of the refunding bonds will result in a net present value savings to the dis-
53 trict. No election shall be required in connection with the issuance and sale
54 of such refunding bonds. Refunding bonds issued pursuant to this section shall
12
1 have a final maturity date no later than the final maturity date of the bonds
2 being refunded.
3 50-3010. TERMS OF BONDS. For any bonds issued under this chapter, the
4 district board shall prescribe the denominations of the bonds, the principal
5 amount of each issue and the form of the bonds and shall establish the maturi-
6 ties, which shall not exceed thirty (30) years, interest payment dates and
7 interest rates, whether fixed or variable, not exceeding the maximum rate
8 stated in the notice of the election or the resolution of the district board.
9 The bonds, up to the aggregate authorized principal amount thereof, may be
10 issued in whole or divided into series, and by supplementary resolution
11 adopted from time to time by the district board, the district may issue any
12 remaining principal amount of the bonds in one (1) or more subsequent divi-
13 sions. No election shall be required in connection with the issuance of any
14 remaining principal amount of the bonds in a subsequent division. The bonds
15 may be sold by competitive bid or negotiated sale for public or private offer-
16 ing at, below or above par. The proceeds of the bonds shall be deposited with
17 the treasurer, or with a trustee or agent designated by the district board, to
18 the credit of the district to be withdrawn for the purposes provided by this
19 chapter. Pending that use, the proceeds may be invested as determined by the
20 district board. The bonds shall be made payable as to both principal and
21 interest solely from revenues of the district, and shall specify the revenues
22 pledged for such purposes, and shall contain such other terms, conditions,
23 covenants and agreements as the district board deems proper. The bonds may be
24 payable from any combination of taxes or revenues of the types described in
25 sections 50-3008 and 50-3009, Idaho Code.
26 50-3011. NOTICE AND CONDUCT OF ELECTION. (1) Any election pursuant to
27 this chapter shall be a nonpartisan election held in compliance with section
28 34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise specif-
29 ically set forth in this section, the district board shall cause the election
30 to be held and conducted in the same manner prescribed by law for the holding
31 of general elections in this state, including chapter 14, title 34, Idaho
32 Code, and shall call the election by posting notices in three (3) public
33 places within the boundaries of the district not less than thirty (30) days
34 before the election. Notice shall also be published twice, the first time not
35 less than twelve (12) days prior to the election and the second time not less
36 than five (5) days prior to the election, in a newspaper of general circula-
37 tion in each county or city in which the proposed district is located. The
38 notice shall state:
39 (a) The place of holding the election;
40 (b) Subject to section 34-1409, Idaho Code, the hours during the day in
41 which the polls will be open;
42 (c) If the election is a bond election, whether the bonds are general
43 obligation bonds or revenue bonds, the total principal amount of bonds to
44 be authorized, whether the bonds will be issued in series, the maximum
45 rate of interest to be paid on the bonds and the maximum term of the
46 bonds, not exceeding thirty (30) years;
47 (d) If the election is an election to change or eliminate an existing
48 tax, the maximum tax amount to be imposed as a result of the change or
49 elimination;
50 (e) The purposes for which property taxes will be imposed, and the reve-
51 nues raised will be used, including a description of the public infra-
52 structure improvements to be financed with tax revenues, district revenues
53 or bond proceeds;
13
1 (f) That the imposition of property taxes will result in a lien for the
2 payment thereof on property within the district; and
3 (g) That a general plan is on file with the county clerk of each county
4 in which the district is located.
5 (2) The district board shall determine the date of the election and the
6 polling place(s) for the election. The district board may establish, change,
7 and consolidate election precincts within the district, as it deems necessary
8 and appropriate, and shall define precinct boundaries.
9 (3) Subject to sections 50-3002(7) and 50-3002(10), Idaho Code, the cur-
10 rent property rolls for the district and current voter lists in effect at the
11 time that the election has begun shall be used to determine the qualified
12 electors. If the district includes land lying partly in and partly out of any
13 precinct, the voter lists may contain the names of all electors in the pre-
14 cinct, and the precinct boards at those precincts shall require that a pro-
15 spective elector execute an affidavit stating that the elector is also a qual-
16 ified elector.
17 (4) If the district is to be located within two (2) or more counties
18 and/or cities, the election shall be held on the same day in each jurisdic-
19 tion.
20 (5) The ballot material provided to each voter shall include:
21 (a) For an election concerning the issuance of bonds, an impartial
22 description of the bonds to be issued and an impartial description of the
23 property taxes to be imposed; the method of apportionment, collection and
24 enforcement and other details sufficient to enable each qualified elector
25 to reasonably estimate the amount of tax it will be obligated to pay; and
26 a statement that the issuance of the bonds and the imposition of property
27 taxes is for the provision of certain, but not necessarily all, public in-
28 frastructure improvements that may be needed or desirable within the dis-
29 trict, and that other taxes or assessments by other governmental entities
30 may be presented for approval by qualified electors; and
31 (b) For an election to change an existing maximum or eliminate an exist-
32 ing tax, an impartial description of the change or elimination.
33 (6) Within ten (10) days after an election, the district board shall meet
34 and canvass the returns, and declare the results thereof. At least a two-
35 thirds (2/3) majority of the votes cast at the election shall be required for
36 issuing bonds or changing an existing tax; provided however, that with respect
37 to issuance of revenue bonds pursuant to the authority of and in compliance
38 with the requirements of section 3, article VIII of the constitution of the
39 state of Idaho, only the assent of a majority of the qualified electors voting
40 at the election shall be required. The canvass may be continued for an addi-
41 tional period not to exceed thirty (30) days at the election of the district
42 board for the purpose of completing the canvass. Failure of a required major-
43 ity to vote in favor of the matter submitted shall not prejudice the submis-
44 sion of the same or similar matters at a later election. The canvass of any
45 general obligation bond election shall be filed and recorded in each county in
46 which the district is located.
47 (7) In any election held pursuant to this chapter, every voter may vote
48 at any election held pursuant to this chapter, but shall be entitled to cast
49 only one (1) vote. Each resident qualified elector shall be entitled to one
50 (1) vote. An owner qualified elector shall be entitled to one (1) vote. An
51 owner qualified voter shall not be entitled to an additional vote as a result
52 of also being a resident of the district. When record title is held in more
53 than one (1) name, the owners shall file with the clerk of the district at or
54 prior to the election a designation in writing of which one of the owners
55 shall be deemed the owner for purposes of voting.
14
1 (8) In conducting an election, the polling official may require evidence
2 of ownership of property and designation of the power to exercise the vote of
3 any owner consistent with the provisions of this section and section
4 50-3002(10), Idaho Code.
5 50-3012. DISTRICT TAXES FOR SERVICES AND OPERATION AND MAINTENANCE. Each
6 year, prior to the time for the certification required under section 50-3013,
7 Idaho Code, the district board may levy a tax upon all taxable real property
8 within the district of up to one-tenth of one percent (.1%) of the market
9 value for assessment purposes on all taxable real property within the dis-
10 trict, to be used only to reimburse or defray the following expenses of the
11 district, and no other: pursuant to a district development agreement, the
12 additional cost of public services, as defined in section 50-3003(1), Idaho
13 Code; and the operation and maintenance expenses of the district. No election
14 shall be required. The levy shall be made by resolution entered upon the min-
15 utes of the district board, and it shall be the duty of the clerk of the dis-
16 trict, immediately after entry of the resolution in the minutes, to transmit
17 to the board of county commissioners in each county in which the district is
18 located, the certification required under section 50-3013, Idaho Code. Said
19 tax shall then be collected and accounted for at the time and in the form and
20 manner as other taxes are collected and accounted for under the laws of this
21 state.
22 50-3013. ANNUAL FINANCIAL STATEMENTS AND ESTIMATES -- ANNUAL BUDGET --
23 CERTIFICATION. (1) When levying property taxes, and prior to certification of
24 same to the county commissioners, the district board shall make annual state-
25 ments and estimates of the operation and maintenance expenses of the district,
26 the costs of public infrastructure improvements to be financed by the property
27 tax and the amount of all other expenditures for public infrastructure
28 improvements proposed to be paid from the property tax and of the amount to be
29 raised to pay general obligation bonds of the district, all of which shall be
30 provided for by the levy and collection of property taxes. The annual esti-
31 mates prepared by the district board shall include an amount determined by the
32 district board, in consultation with the county tax collector, to defray the
33 cost imposed upon the county tax collector's office for any additional admin-
34 istrative services that will be required in the collection of and accounting
35 for such district property taxes. Such additional cost shall be for those ser-
36 vices not otherwise included in the general tax collection and accounting ser-
37 vices already provided by the county tax collector's office and otherwise paid
38 for by property tax revenues, and shall be reasonably related to, but shall
39 not exceed, the actual cost of the additional administrative services pro-
40 vided. The district board shall file the annual statements and estimates with
41 the district clerk, and, not later than the time required by section 63-802A,
42 Idaho Code, shall set and notify the county clerk of the date and location set
43 for the annual budget hearing of the district. The district board shall pub-
44 lish a notice of the filing of the estimate, shall hold a public hearing on
45 the portion of the estimate not relating to debt service on general obligation
46 bonds and shall adopt a budget. Notice of the budget hearing shall be posted
47 at least ten (10) full days prior to the date of said meeting in at least one
48 (1) conspicuous place within the district to be determined by the district
49 board; a copy of the notice shall also be published in a newspaper of general
50 circulation in the county or city in which the proposed district is located,
51 in one (1) issue thereof, during such ten (10) day period. The place, hour and
52 day of the hearing shall be specified in said notice, as well as the place
53 where the budget may be examined prior to the hearing. A full and complete
15
1 copy of the proposed budget shall be published with and as a part of the pub-
2 lication of the notice of hearing. The budget shall be available for public
3 inspection from and after the date of the posting of notices of hearing as in
4 this section provided, at such place and during such business hours as the
5 district board may direct. A quorum of the district board shall attend the
6 hearing and explain the proposed budget and hear any and all objections to the
7 proposed budget. The district board at the time of the certification required
8 under subsection (2) of this section shall file with the board of county com-
9 missioners in each county in which the district is located a certified copy of
10 the annual budget as previously prepared, approved and adopted.
11 (2) The district board, having determined the total amount required from
12 property taxes upon all taxable real property within the district to raise the
13 amount of money fixed by the annual budget, including the amount of money
14 needed to satisfy annual bond payments, shall cause the amount of money so
15 determined to be certified in dollars to the board of county commissioners in
16 each county in which the district is located not later than the time required
17 for certification under section 63-803, Idaho Code. Said certification shall
18 list separately each tax levy if more than one (1), and the purpose of each
19 thereof, and shall otherwise comply with the requirements of section 63-803,
20 Idaho Code.
21 (3) Following such certification to the county commissioners, district
22 property taxes shall then be collected and accounted for at the time and in
23 the form and manner as other taxes are collected and accounted for under the
24 laws of this state. Except as specifically provided otherwise in this chapter,
25 all statutes of this state relating to the levy, collection, settlement and
26 payment of property taxes, including the collection of delinquent taxes and
27 sale of property for nonpayment of taxes, apply to district property taxes.
28 50-3014. DISCLOSURE. The district board shall record with the county
29 clerk in each county in which the district is located, upon the records of
30 each parcel of real property within the district that will be encumbered with
31 any future general obligation bond repayment liability, a notice setting
32 forth: (1) the current obligation of a property owner within the district with
33 respect to any bond repayment liability; (2) that the obligation to retire the
34 bonds will be the responsibility of any property owner in the district through
35 the payment of real property taxes collected by the county treasurer in addi-
36 tion to all other property tax payments; (3) the estimated maximum tax rate
37 upon the parcel for bond repayment; (4) whether the tax rate is to be main-
38 tained at any level by means of any developer agreement with the district; and
39 (5) that in the event of the failure of the developer to maintain the tax
40 rate, the tax rate on a parcel will increase, as needed, to provide for bond
41 repayment. Such notice may be separately recorded or included in a recorded
42 district development agreement. The governing body, in its resolution approv-
43 ing formation of the district, shall require that a form disclosure, consis-
44 tent with the foregoing, be signed and acknowledged by any purchaser of land
45 within the district prior to purchase. The form disclosure shall be entitled
46 "PID TAX DISCLOSURE NOTICE" and, as determined appropriate by the district
47 board, shall fully and fairly disclose the property owner's general obligation
48 bond repayment tax liability, with estimated best and worst case scenarios,
49 with examples provided. The form disclosure shall also set forth the estimated
50 annual additional tax liability for any operation and maintenance expense as
51 may be levied pursuant to section 50-3012, Idaho Code. The form disclosure
52 shall be included in any developer sales and promotional materials provided to
53 prospective purchasers.
16
1 50-3015. DISSOLUTION OF DISTRICT. (1) The district shall be dissolved by
2 the district board by a resolution of the district board upon a determination
3 that each of the following conditions exist:
4 (a) All public infrastructure improvements owned by the district have
5 been, or provision has been made for all public infrastructure improve-
6 ments to be, conveyed either to a county or city in which the district is
7 located, or to a public district or other authority authorized by the laws
8 of this state to own such public infrastructure improvements;
9 (b) Either the district has no outstanding bond obligations or a county,
10 city or public district or other authority authorized by the laws of this
11 state to do so, has assumed all of the outstanding bond obligations of the
12 district; and
13 (c) All obligations of the district pursuant to any contracts or agree-
14 ments entered into by the district have been satisfied.
15 (2) All property within the district that is subject to the lien of dis-
16 trict taxes shall remain subject to the lien for the payment of general obli-
17 gation bonds, notwithstanding dissolution of the district. The district shall
18 not be dissolved if any revenue bonds of the district remain outstanding
19 unless an amount of money sufficient, together with investment income thereon,
20 to make all payments due on the revenue bonds either at maturity or prior
21 redemption has been deposited with a trustee or escrow agent and pledged to
22 the payment and redemption of the bonds. The district may continue to operate
23 after dissolution only as needed to collect money and make payments on any
24 outstanding bonds.
25 (3) The district shall send a notice of dissolution to the governing body
26 or bodies, the county assessor of each county in which the district is
27 located, and the state tax commission. The district shall also record a notice
28 of dissolution with the county clerk in each county in which the district is
29 located.
30 (4) Subject to the foregoing provisions of this section, if upon dissolu-
31 tion of the district there remain any excess moneys of the district, the dis-
32 trict board shall, by resolution, cause the same to be fairly distributed
33 amongst the current taxpayers of the district. If, as determined in the sole
34 discretion of the district board, the amount to be distributed is de minimus,
35 or the administrative cost of distribution is prohibitive, such remaining
36 moneys shall be paid to the county treasurer of each county in which the dis-
37 trict is located to be distributed among the cities and counties in which the
38 district is located in proportion to which said cities and counties receive
39 property tax revenues generally.
40 50-3016. EXEMPTIONS AND EXCLUSIONS. (1) All public utilities, as defined
41 in section 61-129, Idaho Code, shall be exempt from taxation under this chap-
42 ter.
43 (2) No railroad right-of-way may be included within a public infrastruc-
44 ture improvements district without the consent of the railroad.
45 (3) No personal property within a public infrastructure improvements dis-
46 trict shall be subject to taxation under this chapter.
47 50-3017. LIMITATION OF LIABILITY. Neither any member of the district
48 board nor any person acting on behalf of the district, while acting within the
49 scope of his or her authority, shall be subject to any personal liability for
50 any action taken or omitted within that scope of authority.
51 50-3018. APPEAL -- EXCLUSIVE REMEDY -- CONCLUSIVENESS. Any person in
52 interest who feels aggrieved by the final decision of a governing body or a
17
1 district board in the formation or governing of a district, including, with-
2 out limitation, with respect to any tax levy or bond, may within thirty (30)
3 days after such final decision seek judicial review by filing a written notice
4 of appeal with the clerk of the district and with the clerk of the district
5 court for the judicial district in which a majority of the land area of the
6 district is located. After said thirty (30) day period has run, no one shall
7 have any cause or right of action to contest the legality, formality or regu-
8 larity of said decision for any reason whatsoever and, thereafter, said deci-
9 sion shall be considered valid and uncontestable without limitation, and the
10 validity, legality and regularity of any such decision shall be conclusively
11 presumed. Without limitation on the foregoing, if the question of validity of
12 any bonds issued pursuant to this chapter is not raised on appeal as afore-
13 said, the authority to issue the bonds, the legality thereof and of the levies
14 necessary to pay the same shall be conclusively presumed and no court shall
15 thereafter have authority to inquire into such matters.
16 50-3019. CONSISTENCY WITH STATE LAW. (1) A public infrastructure improve-
17 ments district shall develop public infrastructure improvements consistent
18 with the general plan and in compliance with the requirements of chapter 13,
19 title 50, Idaho Code, and chapter 65, title 67, Idaho Code.
20 (2) A public infrastructure improvements district shall be deemed to be
21 of the same nature and afforded the same treatment as a local improvement dis-
22 trict for purposes of application of section 33-901, Idaho Code, section
23 58-336, Idaho Code, section 67-8209(1), Idaho Code, and section 67-8214(6),
24 Idaho Code.
25 50-3020. LIBERAL INTERPRETATION. The public infrastructure improvements
26 district act, being necessary for the welfare of this state and its inhabit-
27 ants, shall be liberally construed to effect the purposes of the act.
28 50-3021. SEVERABILITY. The provisions of this chapter are hereby declared
29 to be severable and if any provision or the application of the provision to
30 any person or circumstance is declared invalid for any reason, such declara-
31 tion shall not affect the validity of remaining portions of this chapter.
STATEMENT OF PURPOSE
RS 15729C1
This legislation provides a voluntary mechanism for new
growth to pay for necessary public infrastructure and minimize
its impact on existing taxpayers. It permits landowners, in
cooperation with cities and counties, to establish public
infrastructure districts to pay for public infrastructure
improvements. A PID is voluntary and can be created only at the
joint request of all landowners and with the approval of the city
or county in which the land is located. The PID can pay only for
those public improvements for which impact fees now can be used
and which will be owned by a government entity after they are
constructed. This will be done by using the taxable value of the
property in the PID as security for bonds.
Unlike impact fees or conventional developer financing, the
cost of the infrastructure is not incorporated into the price of
lots to be developed so does not increase the assessed market
value of property outside the district. Unlike traditional
government financing of public improvements, this public
infrastructure can be built without imposing taxes on existing
residents of the city or county.
No one can be required to form a district. If a city or
county does not want to use a PID it does not have to create one.
FISCAL NOTE
There is no fiscal impact to the General Fund and because
the costs of establishing a PID are borne by the landowners in
the PID, there is no fiscal impact to local government.
Contacts:
Alex LaBeau 342-3585
Ken McClure 388-1200
STATEMENT OF PURPOSE/FISCAL NOTE H 485