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H0578...............................................by REVENUE AND TAXATION COMMUNITY INFRASTRUCTURE DISTRICTS - Adds to existing law relating to community infrastructure districts to provide for legislative purpose; to provide a short title; to define terms; to provide for creation of community infrastructure districts; to provide for organization of districts; to provide for district powers; to provide for change in district boundaries; to provide for amendments to the general plan; to provide for finances; to provide for general obligation bonds; to provide for elections; to establish limits on indebtedness and to provide for a levy; to provide for special assessments and special assessment bonds; to provide for revenue bonds; to provide for terms of bonds; to provide for notice and conduct of elections; to provide for costs of administration; to provide for annual financial statements and annual budget certification; to provide for disclosure; to provide for district dissolution; to provide for exemptions and exclusions; to provide for limitation of liability; and to provide for appeal. 02/28 House intro - 1st rdg - to printing 02/29 Rpt prt - to Rev/Tax 03/11 Rpt out - rec d/p - to 2nd rdg 03/12 2nd rdg - to 3rd rdg 03/21 Ret'd to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 578 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO COMMUNITY INFRASTRUCTURE DISTRICTS; AMENDING TITLE 50, IDAHO CODE, 3 BY THE ADDITION OF A NEW CHAPTER 31, TITLE 50, IDAHO CODE, TO PROVIDE FOR 4 LEGISLATIVE PURPOSE, TO PROVIDE FOR RELATIONSHIP TO OTHER LAWS AND A SHORT 5 TITLE, TO DEFINE TERMS, TO PROVIDE FOR CREATION OF COMMUNITY INFRASTRUC- 6 TURE DISTRICTS, TO PROVIDE FOR DISTRICT ORGANIZATION, TO PROVIDE FOR DIS- 7 TRICT POWERS, TO PROVIDE FOR CHANGE IN DISTRICT BOUNDARIES, TO PROVIDE FOR 8 AMENDMENTS TO THE GENERAL PLAN, TO PROVIDE FOR FINANCES, TO PROVIDE FOR 9 GENERAL OBLIGATION BONDS, TO PROVIDE FOR ELECTIONS, TO ESTABLISH LIMITS ON 10 INDEBTEDNESS AND TO PROVIDE FOR A LEVY, TO PROVIDE FOR SPECIAL ASSESSMENTS 11 AND SPECIAL ASSESSMENT BONDS, TO PROVIDE FOR REVENUE BONDS, TO PROVIDE FOR 12 ELECTIONS, TO PROVIDE FOR TERMS OF BONDS, TO PROVIDE FOR NOTICE AND CON- 13 DUCT OF ELECTIONS, TO PROVIDE FOR COST OF ADMINISTRATION, TO PROVIDE FOR 14 ANNUAL FINANCIAL STATEMENTS AND ANNUAL BUDGET CERTIFICATION, TO PROVIDE 15 FOR DISCLOSURE, TO PROVIDE FOR DISTRICT DISSOLUTION, TO PROVIDE FOR EXEMP- 16 TIONS AND EXCLUSIONS, TO PROVIDE FOR LIMITATION OF LIABILITY, TO PROVIDE 17 FOR APPEAL, TO PROVIDE FOR CONSISTENCY WITH OTHER STATE LAWS AND TO PRO- 18 VIDE FOR SEVERABILITY. 19 Be It Enacted by the Legislature of the State of Idaho: 20 SECTION 1. That Title 50, Idaho Code, be, and the same is hereby amended 21 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap- 22 ter 31, Title 50, Idaho Code, and to read as follows: 23 CHAPTER 31 24 COMMUNITY INFRASTRUCTURE DISTRICT ACT 25 50-3101. PURPOSE, RELATIONSHIP WITH OTHER LAWS AND SHORT TITLE. (1) The 26 purpose of this chapter is: 27 (a) To encourage the funding and construction of regional community in- 28 frastructure in advance of actual developmental growth that creates the 29 need for such additional infrastructure; 30 (b) To provide a means for the advance payment of development impact fees 31 established in chapter 82, title 67, Idaho Code, and the community infra- 32 structure that may be financed thereby; and 33 (c) To create additional financial tools and financing mechanisms that 34 allow new growth to more expediently pay for itself. 35 (2) Only community infrastructure to be publicly owned by this state or a 36 political subdivision thereof may be financed pursuant to this chapter. 37 (3) A community infrastructure district may only be formed pursuant to 38 this chapter by a city in the city's incorporated area, or by a county in an 39 area contained within a city's comprehensive plan with the city's consent. 40 (4) A community infrastructure district may be formed only after (i) 41 prior review and approval by the governing body of each county or city in 42 which the district is proposed to be located of a petition requesting the for- 2 1 mation of the district, and (ii) the necessary approvals for site development 2 under the local land use planning act, sections 67-6501 et seq., Idaho Code, 3 and the planning and zoning ordinances of each county and city in which the 4 district is proposed to be located have been obtained; provided however, that 5 where there will be phased development, approvals obtained for the first phase 6 of site development shall be sufficient for the initial creation and organiza- 7 tion of the district. The formation of a district pursuant to this chapter 8 shall not prevent the exercise by a county, city or other political subdivi- 9 sion of any of its powers on the same basis as on all other land within its 10 jurisdiction. Notwithstanding the formation of a district, the development of 11 real property located within the district shall remain subject to the provi- 12 sions of chapter 65, title 67, Idaho Code, and the applicable planning and 13 zoning ordinances of the counties and cities in which the district is located. 14 The formation of a district pursuant to this chapter shall not prevent the 15 subsequent establishment of other districts or the improvement or assessment 16 of land within the district by a county, city or other political subdivision. 17 (5) This chapter shall be known and cited as the "Community Infrastruc- 18 ture District Act." 19 50-3102. DEFINITIONS. As used in this chapter, the following terms shall 20 have the meanings as stated: 21 (1) "Assessment area" means real property within the boundaries of a com- 22 munity infrastructure district that is the subject of a specific special 23 assessment as set forth in this chapter. 24 (2) "Community infrastructure" means improvements that directly or indi- 25 rectly benefit the district. Community infrastructure excludes public improve- 26 ments fronting individual single family residential lots. Community infra- 27 structure includes planning, design, engineering, construction, acquisition or 28 installation of such infrastructure, including the costs of applications, 29 impact fees and other fees, permits and approvals related to the construction, 30 acquisition or installation of such infrastructure, and incurring expenses 31 incident to and reasonably necessary to carry out the purposes of this chap- 32 ter. Community infrastructure includes all public facilities as defined in 33 section 67-8203(24), Idaho Code, and, to the extent not already included 34 within the definition in section 67-8203(24), Idaho Code, the following: 35 (a) Highways, parkways, expressways, interstates, or other such designa- 36 tion, interchanges, bridges, crossing structures, and related appurte- 37 nances; 38 (b) Public parking facilities, including all areas for vehicular use for 39 travel, ingress, egress and parking; 40 (c) Trails and areas for pedestrian, equestrian, bicycle or other 41 nonmotor vehicle use for travel, ingress, egress and parking; 42 (d) Public safety facilities; 43 (e) Acquiring interests in real property for community infrastructure; 44 (f) Financing costs related to the construction of items listed in this 45 subsection; and 46 (g) Impact fees. 47 (3) "Community infrastructure segment" means a separate or a discernible 48 portion of a construction contract attributable to community infrastructure. 49 (4) "Debt service" means the principal of, interest on and premium, if 50 any, on the bonds, when due, whether at maturity or prior redemption and fees 51 and costs of registrars, trustees, paying agents or other agents necessary to 52 handle the bonds and the costs of credit enhancement or liquidity support. 53 (5) "District" means a community infrastructure district formed pursuant 54 to this chapter. A district shall only include contiguous property at the time 3 1 of formation. Land that is connected by only a shoestring or strip of land 2 which comprises a railroad or highway right-of-way shall not be considered 3 contiguous for the purposes of this chapter. Subsequent to a district's forma- 4 tion, a district may include noncontiguous property but only as the same shall 5 be specifically determined and authorized by the district board in its discre- 6 tion and pursuant to section 50-3106. 7 (6) "District board" means the board of directors of the district. 8 (7) "District development agreement" means an agreement between a prop- 9 erty owner or developer, the county or city, any other political subdivision 10 of the state, and/or the district. A district development agreement shall be 11 used to establish obligations of the parties to the agreement relating to dis- 12 trict financing and development, including: intergovernmental agreements; the 13 ultimate public ownership of the community infrastructure financed by the dis- 14 trict; the understanding of the parties with regard to future annexations of 15 property into the district; the total amount of bonds to be issued by the dis- 16 trict and the property taxes and special assessments to be levied and imposed 17 to repay the bonds and the provisions regarding the disbursement of bond pro- 18 ceeds; the financial assurances, if any, to be provided with respect to the 19 bonds; impact and other fees imposed by governmental authorities, including 20 credit, prepayment and/or reimbursement with respect thereto; and other mat- 21 ters relating to the community infrastructure, such as construction, acquisi- 22 tion, planning, design, inspection, ownership and control. A district develop- 23 ment agreement shall be in addition to and shall not supplant any development 24 agreement entered into pursuant to section 67-6511A, Idaho Code, pursuant to 25 which a governing body may require or permit as a condition of rezoning that 26 an owner or developer make a written commitment concerning the use or develop- 27 ment of the subject parcel. 28 (8) "General plan" means the general plan described in section 29 50-3103(1), Idaho Code, as the plan may be amended from time to time. 30 (9) "Governing body" means the county commissioners or city council that 31 by law is constituted as the governing body of the county or city in which the 32 district is located. Reference in this chapter to "governing body or bodies" 33 shall mean the governing body or bodies of each county and city in which the 34 district is located. 35 (10) "Owner" means the person listed as the owner of real property within 36 the district or a proposed district on the current property rolls in effect at 37 the time that the action, proceeding, hearing or election has begun; provided 38 however, that if a person listed on the property rolls is no longer the owner 39 of real property within the district or a proposed district and the name of 40 the successor owner becomes known and is verified by recorded deed or other 41 similar evidence of transfer of ownership, the successor owner shall be deemed 42 to be the owner for the purposes of this chapter. 43 (11) "Market value for assessment purposes" means the amount of the last 44 preceding equalized assessment of all taxable property and excludes all prop- 45 erty exempt from taxation pursuant to section 63-602G, Idaho Code, within the 46 community infrastructure district on the tax rolls completed and available as 47 of the date of approval in the district bond issuance. 48 (12) "Person" means any entity, individual, corporation, partnership, 49 firm, association, limited liability company, limited liability partnership, 50 trust or other such entities as recognized by the state of Idaho. A "person 51 in interest" is any person who is a qualified elector in the district, who is 52 an owner of real property in the district or who is a real property taxpayer 53 in the district. 54 (13) "Qualified elector" means: 55 (a) Any person who resides within the boundaries of a district or a pro- 4 1 posed district and who is a qualified elector as defined in section 2 34-104, Idaho Code. For purposes of this chapter, such elector shall also 3 be known as a "resident qualified elector"; or 4 (b) Any person who is an owner of real property that is located within 5 the district, who is not a resident qualified elector. For purposes of 6 this chapter, such elector shall also be known as an "owner qualified 7 elector." 8 (14) "Special assessment" means an assessment imposed upon real property 9 located within an assessment area for a specific purpose and of a special ben- 10 efit to the affected property, collected and enforced in the same manner as 11 property taxes, that may be apportioned according to the direct or indirect 12 special benefits conferred upon the affected property, as well as any or any 13 combination of the following: acreage, square footage, front footage, the cost 14 of providing community infrastructure for the affected property, or any other 15 reasonable method as determined by the district board. 16 50-3103. CREATION OF DISTRICT. (1) The process for the creation and orga- 17 nization of a community infrastructure district shall be initiated by a peti- 18 tion signed by all of the owners of all the lands located in the proposed dis- 19 trict. The petition shall be filed with the clerk of the governing body in 20 which the proposed district will be located. If the proposed district will be 21 located within two (2) or more counties and/or cities, a petition conforming 22 to the requirements of this section shall be filed with the clerk of each 23 jurisdiction's governing body. The petition shall state the name of the pro- 24 posed district and the purpose for which it is formed, state that the forma- 25 tion of the district shall entitle the district to impose special assessments, 26 levy property taxes and impose fees or charges to pay the cost of providing 27 services, and shall be accompanied by a map depicting the boundaries of the 28 proposed district, a legal description of the proposed district and a copy of 29 the proposed general plan. The general plan shall describe or identify the 30 community infrastructure to be financed by the district, the locations of the 31 infrastructure and the estimated cost thereof, the proposed financing methods 32 and the anticipated special assessments, tax levies or other charges, the 33 approvals obtained pursuant to section 50-3101(3), Idaho Code, and may include 34 possible alternatives, modifications or substitutions concerning locations, 35 improvements, financing methods and other information provided in the general 36 plan. The petition shall also include copies of any proposed district develop- 37 ment agreement. The petition, together with all maps and other papers filed 38 therewith, shall be open to public inspection in the office of the clerk in 39 each county or city in which the petition is filed, during such business hours 40 as the clerk may direct. 41 (2) Upon the filing of a petition, the governing body shall give notice 42 of the filing of the petition and of the time and place set for a public hear- 43 ing on the petition, which hearing shall be at a regular or special meeting 44 held within not less than thirty (30) days nor more than ninety (90) days 45 after the date of the filing of the petition. A notice of the time of the pub- 46 lic hearing shall be published by the governing body twice, the first time not 47 less than twelve (12) days prior to the hearing and the second time not less 48 than five (5) days prior to the hearing, in a newspaper of general circulation 49 in each county or city in which the proposed district will be located. A copy 50 of such notice shall also be mailed to each owner of real property in the dis- 51 trict if known or such owner's agent if known, addressed to such person at his 52 or her post office address if known or, if unknown, to a post office in the 53 county or city where the district is located. Ownership of real property shall 54 be determined as of the date of the adoption of the resolution ordering the 5 1 hearing. The notice shall state that a community infrastructure district is 2 proposed to be formed, giving the proposed boundaries thereof, and that any 3 person who is a resident of or a real property taxpayer within the proposed 4 district may, on the date fixed for the public hearing, appear and offer any 5 testimony pertaining to the formation of the district and the proposed bound- 6 aries thereof. If the district will be located within two (2) or more counties 7 and/or cities, the governing bodies of such counties and/or cities shall coor- 8 dinate their efforts and shall either hold a public hearing in each county or 9 city in which the proposed district will be located, or hold a single public 10 meeting in such county or city as the governing bodies shall unanimously 11 agree. The notice shall also state that any political subdivision of this 12 state within whose jurisdiction the proposed district will be located, includ- 13 ing, without limitation, a highway district, a school district, a fire dis- 14 trict or an ambulance district, may, on the date fixed for the public hearing, 15 appear and offer testimony pertaining to the formation of the district and the 16 proposed boundaries thereof. After hearing and considering any and all of the 17 testimony given, the governing body shall thereupon approve a resolution 18 either denying the petition or granting the same and, if granting the same, 19 shall fix and describe in the resolution the boundaries of the proposed dis- 20 trict and order the formation of the same. A resolution granting the petition 21 may also include the approval of any district development agreement that has 22 been approved by the governing body in the process of considering and approv- 23 ing the formation of the district. The boards of county commissioners and/or 24 the city councils, as such governing bodies, are hereby specifically author- 25 ized to act in a joint manner for such purposes. 26 (3) Whenever a petition shall be filed as provided for in this section, 27 the petitioner or petitioners shall deposit with each governing body a sum 28 sufficient to defray the costs of publication and mailing of notice of the 29 public hearing. In the event the district is formed, said petitioner or peti- 30 tioners shall be entitled to be reimbursed such sum from the district, as a 31 district formation cost related to the community infrastructure, from the dis- 32 trict when moneys are available to the district. The amount required to be 33 paid under this subsection shall be determined by each governing body and 34 deposited before publication of the notice. 35 (4) The governing body may charge the petitioner or petitioners a reason- 36 able fee for the governing body to retain outside advisors to assist the gov- 37 erning body in its consideration of the formation of the district. In the 38 event the district is formed, the petitioner or petitioners shall be entitled 39 to be reimbursed such fee from the district, as a district formation cost 40 related to the community infrastructure, when moneys are available to the dis- 41 trict. 42 50-3104. DISTRICT ORGANIZATION. (1) If the petition for formation of the 43 district is granted, the district shall comply with the filing and recording 44 requirements of section 63-215, Idaho Code, and shall also cause a copy of the 45 applicable resolution to be delivered to the county assessor of each county in 46 which the district is located, cause a copy of the applicable resolution to be 47 recorded with the county clerk in each county in which the district is 48 located, and cause a copy of the applicable resolution to be filed with the 49 state tax commission. 50 (2) Members of the governing body or bodies at the time of formation 51 shall serve as the district board. If the district is located entirely within 52 the boundaries of a city, three (3) members of the city council chosen by the 53 city council shall serve as the district board. If the district is located 54 entirely within the boundaries of a county and outside the boundaries of any 6 1 city, the county commissioners of the county in which the district is located 2 shall serve as the district board. If the district is located within the 3 jurisdiction of more than one (1) governing body, two (2) members of each gov- 4 erning body shall be appointed by that governing body to serve on the district 5 board and, in addition, the governing body within whose jurisdiction the larg- 6 est land area of the district is located shall appoint another member from its 7 governing body to serve as an additional member of the district board, so that 8 the district board will always be comprised of an odd number of members. For 9 purposes of determining which jurisdiction has such largest land area, the 10 land area in the district that is within the incorporated city limits shall be 11 considered as being the land area of the city, and shall not be considered as 12 part of the land area of the county in which the city is located. If an area 13 is added to the district pursuant to section 50-3106(2), Idaho Code, and such 14 area is located in a city or county not already represented on the district 15 board, or if the addition of such area changes the jurisdiction in which the 16 largest land area of the district is located, the membership of the district 17 board, at the time of addition of such area, shall be adjusted in conformity 18 with the foregoing. If an area is deleted from the district pursuant to sec- 19 tion 50-3106(1), Idaho Code, and, as a result, a county or city no longer has 20 area within the district, or such deletion changes the jurisdiction in which 21 the largest land area of the district is located, the membership of the dis- 22 trict board, at the time of deletion of such area, shall be adjusted in con- 23 formity with the foregoing. If an area is annexed or deannexed by a city and, 24 as a result, the jurisdiction of a county or city is changed, the membership 25 of the district board at the time of such annexation or deannexation shall be 26 adjusted in conformity with the foregoing. The boards of county commissioners 27 and the city councils, as such governing bodies, are hereby specifically 28 authorized to act in a joint manner for such purposes. 29 (3) Within thirty (30) days after the date of the resolution ordering 30 formation of the district, and annually thereafter, the district board shall 31 meet and elect a chairman and vice-chairman to act as the officers of the dis- 32 trict board. The district board shall, unless otherwise agreed to by a major- 33 ity of the board, meet in the county or city within which the largest land 34 area of the district is located. The district shall keep the following 35 records, which shall be open to public inspection: 36 (a) Minutes of all meetings of the district board; 37 (b) All resolutions; 38 (c) Accounts showing all moneys received and disbursed; 39 (d) The annual budget; and 40 (e) All other records required to be maintained by law. 41 (4) The district manager shall be the manager or equivalent of the city 42 or county, the district treasurer shall be the treasurer of the city or 43 county, the district clerk shall be the district clerk of the city or county, 44 respectively, unless the district board engages an outside firm to perform the 45 tasks of the district's manager, treasurer and clerk as well as other duties 46 as may be prescribed by the district board. 47 (5) The district manager shall have charge and supervision of the daily 48 operations of the district. The district manager may hire or otherwise employ 49 and terminate the employment of such persons, including professional, supervi- 50 sory and clerical employees, as may be necessary and authorized by the board. 51 (6) The treasurer of the district shall have such duties as the district 52 board may prescribe, together with the duty to keep account with the district; 53 to place to the credit of the district all moneys received by him or her from 54 the collection of special assessments, taxes or from any other sources, and 55 all other moneys belonging to the district, and to pay over all moneys belong- 7 1 ing to the district on legally drawn warrants or orders of the district board. 2 (7) The clerk of the district shall have such duties as the district 3 board may prescribe, together with the duty to conduct district elections and 4 to prepare and distribute legal notices. 5 (8) The district shall be separate and apart from any county or city. The 6 members of the district board, when serving in their official capacity as mem- 7 bers of the district board, shall act on behalf of the district and not as 8 members of a board of county commissioners or as members of a city council. 9 (9) The district board shall administer in a reasonable manner the imple- 10 mentation of the general plan. 11 (10) The district shall exist until dissolved pursuant to section 50-3116, 12 Idaho Code. 13 50-3105. DISTRICT POWERS. (1) A district formed pursuant to this chapter, 14 although a political subdivision of this state, is not a governmental entity 15 of general purposes and powers, but is a special limited purposes district, 16 with powers only as permitted under this chapter, which powers include the 17 power to finance community infrastructure consistent with the general plan 18 and, in implementing the general plan, to: 19 (a) Enter into contracts and expend moneys for any community infrastruc- 20 ture purposes and/or district operations; 21 (b) Enter into intergovernmental agreements as provided for in sections 22 67-2326 through 67-2333, Idaho Code; 23 (c) Enter into district development agreements; 24 (d) Acquire interests in real property and personal property for commu- 25 nity infrastructure, within or without the district, and sell, dedicate, 26 lease or otherwise dispose of district property if the sale, dedication, 27 lease or conveyance is not a violation of the terms of any contract or 28 bond covenant of the district; 29 (e) Plan, design, engineer, acquire, construct and install community in- 30 frastructure, including acquiring, converting, renovating or improving 31 existing facilities; 32 (f) Employ and establish and pay compensation for staff, counsel and con- 33 sultants; 34 (g) Reimburse a county, city or other political subdivision of this state 35 for staff and consultant services supplied by the county, city or other 36 political subdivision; 37 (h) Accept gifts or grants and incur and repay loans for any community 38 infrastructure; 39 (i) Enter into agreements with owners concerning the advance of money by 40 owners for community infrastructure or the granting of real property by 41 the owners for community infrastructure; 42 (j) Establish, impose and collect or cause to be collected special 43 assessments on real property located within an assessment area of the dis- 44 trict and, in conjunction with the imposition of such assessments, set and 45 collect or cause to be collected administrative fees for community infra- 46 structure; 47 (k) Levy property taxes on real property located within the district and, 48 in conjunction with the levy of such taxes, set and collect or cause to be 49 collected administrative fees for community infrastructure; 50 (l) Incur expenses of the district incident to and reasonably necessary 51 to implement the general plan, and pay the same, including the financial, 52 legal and administrative costs of the district; 53 (m) Borrow money and incur indebtedness and evidence the same by certifi- 54 cates, notes, bonds or debentures, and enter into contracts, agreements 8 1 and trust indentures to obtain credit enhancement or liquidity support for 2 its bonds and process the issuance, registration, transfer and payment of 3 its bonds and the disbursement and investment of proceeds of its bonds; 4 (n) Use public easements and rights-of-way in or across public property, 5 roadways, highways, streets or other thoroughfares and other public ease- 6 ments and rights-of-way, whether in or out of the geographical limits of 7 the district, county or city; and 8 (o) Sue and be sued and prosecute and defend, at law or in equity. 9 (2) Community infrastructure other than personalty, may be located only 10 in or on lands, easements or rights-of-way publicly owned by this state or a 11 political subdivision thereof. 12 (3) An agreement pursuant to subsection (1) of this section may include 13 agreements to repay all or part of such advances, fees and charges from the 14 proceeds of bonds if issued, or from advances, fees and charges collected 15 from other owners or users or those having a right to use any community infra- 16 structure. A person does not have authority to compel the issuance or sale of 17 the bonds of the district or the exercise of any taxing power of the district 18 to make repayment under any agreement. 19 (4) With respect to goods, services or construction to be paid for or 20 financed pursuant to this chapter, the district, as a political subdivision of 21 this state, shall comply with all applicable procurement statutes of this 22 state, including section 67-2320, Idaho Code, and chapter 28, title 67, Idaho 23 Code. 24 50-3106. CHANGE IN DISTRICT BOUNDARIES -- AMEND GENERAL PLAN. (1) After 25 district formation, an area may be deleted from the district only following 26 notice and hearing in the manner prescribed for the formation hearing, adop- 27 tion of a resolution of intention to do so by the district board, and by voter 28 approval by the qualified electors as provided in section 50-3112, Idaho Code. 29 Lands within the district that are subject to the lien of property taxes, spe- 30 cial assessments or other charges imposed pursuant to this chapter shall not 31 be deleted from the district while there are bonds outstanding that are pay- 32 able by such taxes, assessments or charges. 33 (2) After district formation, an area may be added to the district upon 34 adoption of a resolution of intention to do so by the district board and the 35 approvals of all the owners of the lands to be added and the governing body of 36 each county or city within which such lands are located, subject to notice, 37 hearing and adoption of a resolution in the manner as required for the forma- 38 tion of a district. 39 (3) If an area is deleted or added under subsection (1) or (2) of this 40 section, the district board shall attend to the recording and filing require- 41 ments set forth in section 63-215, Idaho Code, and shall also cause a copy of 42 the applicable resolution to be delivered to the county assessor of each 43 county in which the district is located, cause a copy of the applicable reso- 44 lution to be recorded with the county clerk in each county in which the dis- 45 trict is located, and cause a copy of the applicable resolution to be filed 46 with the state tax commission. 47 (4) The district board, following notice and hearing in the manner pre- 48 scribed for the formation hearing, may amend the general plan in any manner 49 that it determines will not substantially reduce the benefits to be received 50 by any land within the district from the community infrastructure upon comple- 51 tion of the work to be performed under the general plan. No election shall be 52 required for the purposes of this subsection. 53 50-3107. FINANCES. (1) Only community infrastructure to be publicly owned 9 1 by this state or a political subdivision thereof may be financed pursuant to 2 this chapter. 3 (2) Community infrastructure to be financed or acquired, or publicly or 4 privately constructed pursuant to this chapter shall be subject to the 5 required bidding procedures for any Idaho public agency. 6 (3) Community infrastructure shown in the general plan may be financed 7 from the following sources of revenue: 8 (a) Proceeds received from the sale of bonds of the district; 9 (b) Moneys of a county or city contributed to the district; 10 (c) Property taxes or special assessments; 11 (d) State or federal grants or contributions; 12 (e) Private contributions; 13 (f) User, landowner and other fees and charges; 14 (g) Proceeds of loans or advances; and 15 (h) Any other moneys available to the district by law. 16 (4) The amount of indebtedness evidenced by general obligation bonds 17 issued pursuant to section 50-3108, Idaho Code, special assessment bonds 18 issued pursuant to section 50-3109, Idaho Code, and revenue bonds issued pur- 19 suant to section 50-3110, Idaho Code, shall not exceed the estimated cost of 20 the community infrastructure to be financed with such bonds, plus all costs 21 connected with the issuance and sale of such bonds, including formation costs, 22 credit enhancement and liquidity support fees and costs. The total aggregate 23 outstanding principal amount of general obligation bonds and other indebted- 24 ness for which the full faith and credit of the district are pledged shall not 25 affect the general obligation bonding capacity of any county or city in which 26 the district is located. 27 (5) Bonds issued by a district shall not be a general obligation of this 28 state or any political subdivision thereof, including any county or city in 29 which the district is located and shall not pledge the full faith and credit 30 of this state or any political subdivision thereof, including any county or 31 city in which the district is located. 32 50-3108. GENERAL OBLIGATION BONDS -- ELECTION -- MAXIMUM INDEBTEDNESS 33 ALLOWED -- LEVY. (1) After district formation, whenever the district board 34 shall deem it advisable to issue general obligation bonds of the district, the 35 district board shall provide therefor by resolution, which resolution shall 36 specify and set forth the community infrastructure and other costs and 37 expenses approved by the district board consistent with the general plan to be 38 financed with the bonds, and make provision for the collection of an annual 39 tax sufficient to pay the interest on the bonds as it falls due, and also to 40 constitute a sinking fund for the payment of the principal thereof as required 41 by the constitution and laws of the state of Idaho. 42 (2) The resolution shall also provide for holding an election, held in 43 compliance with section 50-3112, Idaho Code, to submit to the qualified elec- 44 tors of the district the question of authorizing the district to issue general 45 obligation bonds of the district to provide money for said community infra- 46 structure consistent with the general plan. The ballot used in such election 47 shall be in form substantially as follows: "In favor of issuing bonds to the 48 amount of .......... dollars for the purpose stated in Resolution No. ...," 49 and "Against issuing bonds to the amount of ......... dollars for the purpose 50 stated in Resolution No. ...". 51 (3) If two-thirds (2/3) of the qualified electors at such election assent 52 to the issuing of the bonds and the incurring of the indebtedness thereby cre- 53 ated for the purpose aforesaid, the district board shall thereupon be author- 54 ized to issue and create such indebtedness in the manner and for the purposes 10 1 specified in said resolution, and the bonds shall be issued and sold in the 2 manner provided by the laws of the state of Idaho, and the district board by 3 further resolution shall be entitled to issue and sell the bonds in series or 4 divisions up to the authorized amount without the further vote of the quali- 5 fied electors, and to issue and sell such bonds at such times and in such 6 amounts as the district board deems appropriate to carry out a community in- 7 frastructure project or projects in phases; provided however, that before any 8 issuance of the bonds, including issuance in series or divisions and, in addi- 9 tion to such other determinations made by the district board as it may deem 10 reasonable and prudent, the district board shall also determine whether rea- 11 sonable financial assurance for the payment of the debt service on the bonds 12 through additional collateral, payment guarantee or otherwise shall be 13 required from a developer. The developer shall be consulted and shall be 14 given a reasonable period of time within which to appear, either in person or 15 in writing, and respond to any proposed financial assurance. If, following 16 such developer's response, the district board determines that reasonable 17 financial assurance shall be required, the district board shall specify the 18 type and amount of the financial assurance required in its resolution. 19 (4) In no event shall the aggregate outstanding principal amount of gen- 20 eral obligation bonds and any other indebtedness for which the full faith and 21 credit of the district are pledged exceed twelve percent (12%) of the actual 22 or adjusted market value for assessment purposes on all taxable real property 23 within the district as such valuation existed on December 31 of the previous 24 year. 25 (5) After the bonds are issued, the district shall enter in its minutes a 26 record of the bonds sold and their number and dates and shall periodically 27 collect the pledged revenues to pay the debt service on the bonds when due. 28 (6) Bond proceeds received by the district shall be held in a segregated 29 account and shall be disbursed therefrom only for: 30 (a) The payment of community infrastructure and/or community infrastruc- 31 ture segments approved by the district board and actually completed; or 32 (b) For the purpose of reimbursing actually paid expenditures relating to 33 community infrastructure as approved by the district board; provided how- 34 ever, that lien releases with respect to the payment made must be obtained 35 from the underlying providers of labor, work, services or materials as a 36 condition to such payment; or 37 (c) For the payment or reimbursement of governmentally imposed impact 38 fees as approved by the district board. 39 (7) Completion of community infrastructure may be phased and payment made 40 pursuant to a draw schedule. Bond proceeds shall be expended on the community 41 infrastructure within three (3) years after issuance. Prior to issuance of the 42 bonds, the district board shall determine that such bond proceeds can reason- 43 ably be expended within that time. 44 (8) Each year, prior to the time for the certification required under 45 section 50-3114, Idaho Code, the district board shall levy a tax upon all tax- 46 able real property within the district, sufficient, together with any money 47 from the sources described in section 50-3107(3), Idaho Code, to pay debt ser- 48 vice on the bonds when due. The levy shall be made by resolution entered upon 49 the minutes of the district board, and it shall be the duty of the clerk of 50 the district, immediately after entry of the resolution in the minutes, to 51 transmit to the board of county commissioners in each county in which the dis- 52 trict is located the certification required under section 50-3114, Idaho Code. 53 Such tax levied shall then be collected and accounted for at the time and in 54 the form and manner as other taxes are collected and accounted for under the 55 laws of this state. Moneys derived from the levy of property taxes to pay the 11 1 debt service on the bonds shall be kept separately from other funds of the 2 district. A district's levy of property taxes shall constitute a lien on all 3 taxable real property within the district. 4 (9) The district may issue and sell refunding bonds to refund general 5 obligation bonds of the district authorized by this section. The principal 6 amount of the refunding bonds may be more or less than the principal amount of 7 the bonds being refunded, provided that the proceeds of the refunding bonds 8 are used only for refunding purposes and payment of the costs thereof, and the 9 total obligation of the district is not increased, that is, if the amount of 10 the refunding bonds is more than the principal amount of the bonds being 11 refunded, issuance of the refunding bonds will result in a net present value 12 savings to the district. No election shall be required in connection with the 13 issuance and sale of such refunding bonds. Refunding bonds issued pursuant to 14 this section shall have a final maturity date no later than the final maturity 15 date of the bonds being refunded. 16 50-3109. SPECIAL ASSESSMENTS -- BONDS. (1) After district formation, upon 17 the submission of a petition signed by all the owners of all the lands located 18 in a proposed assessment area, or whenever the district board shall deem it 19 advisable, the district board shall adopt a resolution ordering that a hearing 20 be held to determine whether a special assessment should be imposed and spe- 21 cial assessment bonds be issued to provide money for community infrastructure 22 consistent with the general plan and the exercise by the district board of any 23 of its powers under section 50-3105, Idaho Code. 24 (2) Notice of the hearing shall be posted in three (3) public places 25 within the boundaries of the district not less than thirty (30) days before 26 the hearing. Notice of the hearing shall also be published twice, the first 27 time not less than twelve (12) days prior to the hearing and the second time 28 not less than five (5) days prior to the hearing, in a newspaper of general 29 circulation in each county or city in which the district is located. A copy of 30 such notice shall also be mailed to each owner of real property in the dis- 31 trict if known or such owner's agent if known, addressed to such person at his 32 or her post office address if known or, if unknown, to a post office in the 33 county or city where the district is located. Ownership of real property shall 34 be determined as of the date of the adoption of the resolution ordering the 35 hearing. The notice shall include the following: 36 (a) A description of the real property to be included within the assess- 37 ment area; 38 (b) A description of the method by which the amount of the proposed spe- 39 cial assessment will be determined for each class of real property to 40 which the special assessment is proposed to apply, in sufficient detail to 41 enable the owner of the affected parcel to determine the amount of the 42 special assessment; 43 (c) A description of the community infrastructure to be financed with 44 special assessment bonds or revenues; and 45 (d) A statement that any person affected by the proposed special assess- 46 ment may object in writing or in person at the hearing. 47 (3) If, after the hearing, the district board finds that it will be for 48 the best interest of the district and the real property within the assessment 49 area that the aggregate fair market value of the real property within the 50 assessment area, including the value of the community infrastructure to be 51 financed or paid for with the special assessments, and the infrastructure for 52 which performance bonds or other financial assurances have been received, is 53 at least three (3) times the aggregate principal amount of the special assess- 54 ment bonds as determined by an MAI appraisal in form and substance acceptable 12 1 to the district board, the district board shall adopt a resolution approving 2 the imposition of the special assessment and, also by resolution, shall pre- 3 pare a form of assessment roll numbering each assessment, giving the name, if 4 known, of the owner of each lot or parcel of real property assessed, showing 5 the amount chargeable to each such lot or parcel, and finding that each such 6 lot or parcel is benefited to the amount of assessment imposed thereon. Such 7 resolution shall be the final determination of the regularity, validity and 8 correctness of the assessment roll, of each assessment contained therein, and 9 of the amount thereof imposed on each such lot or parcel. Special assessments 10 may be prepaid and permanently satisfied in whole or in part at any point in 11 time. Prepayment of special assessments shall be paid in cash to the district 12 in the following manner: (i) the interest on such portion to the next date 13 special assessment bonds may be redeemed, plus (ii) the unpaid principal 14 amount of such portion rounded up to the next highest multiple of one thousand 15 dollars ($1,000), plus (iii) any premium due on such redemption date with 16 respect to such portion, plus (iv) any administrative or other fees charged by 17 the district with respect thereto, less (v) the amount by which any reserve 18 fund associated with the special assessment may be reduced on the redemption 19 date as a result of such prepayment. 20 (4) Special assessment bonds approved at the hearing shall be issued in 21 the manner provided by the laws of the state of Idaho, and the district board 22 by further resolution shall be entitled to issue and sell the bonds in series 23 or divisions up to the authorized amount without further hearing, and to issue 24 and sell such bonds at such times and in such amounts as the district board 25 deems appropriate to carry out a community infrastructure project or projects 26 in phases. Bond proceeds shall be expended on the community infrastructure 27 within three (3) years after issuance. Prior to issuance of the bonds, the 28 district board shall determine that such bond proceeds can reasonably be 29 expended within such time. 30 (5) After the bonds are issued, the district board shall enter in its 31 minutes a record of the bonds sold and their numbers and dates and shall peri- 32 odically collect the pledged revenues to pay the debt service on the bonds 33 when due. 34 (6) Each year, prior to the time for the certification required under 35 section 50-3114, Idaho Code, the district board shall impose a special assess- 36 ment upon the real property within the assessment area of the district that 37 will be subject to the special assessment sufficient, together with any moneys 38 from the sources described in section 50-3107(3), Idaho Code, to pay debt ser- 39 vice on the bonds when due, in addition to reasonable costs associated with 40 the collection of the special assessment payments. The special assessment 41 shall be made by resolution entered upon the minutes of the district board, 42 and it shall be the duty of the clerk of the district, immediately after entry 43 of the resolution in the minutes, to transmit to the board of county commis- 44 sioners in each county in which the district is located, the certification 45 required under section 50-3114, Idaho Code. Such special assessment shall then 46 be collected and accounted for at the time and in the form and manner as prop- 47 erty taxes are collected and accounted for under the laws of this state. 48 Moneys derived from the imposition of the special assessment to pay the debt 49 service on the bonds shall be kept separately from other moneys of the dis- 50 trict. 51 (7) Special assessments against privately owned residential property 52 shall be subject to the following provisions: 53 (a) The maximum amount of any special assessment that may be imposed 54 shall not be increased over time by any amount exceeding two percent 55 (2%) per year, up to a maximum of ten percent (10%); 13 1 (b) The special assessment shall be imposed for a specified time period, 2 after which no further special assessment shall be imposed and collected; 3 and 4 (c) Subject to the applicable laws of this state, nothing in this subsec- 5 tion shall preclude the establishment of different categories of residen- 6 tial property or changing the amount of the special assessment imposed 7 upon a parcel whose size or use is changed. A change in the amount of a 8 special assessment imposed upon a parcel due to a change in its size or 9 use shall not require notice and hearing, if the method for changing the 10 amount of special assessment was approved at the hearing approving the 11 special assessment and was described in sufficient detail to enable the 12 owner of the affected parcel to determine how the change in size or use of 13 the parcel would affect the amount of the special assessment. 14 (8) A district's imposition of a special assessment shall constitute a 15 lien on the real property within the assessment area subject to the special 16 assessment, including real property acquired by the state or its political 17 subdivisions after the imposition of the special assessment, which shall be 18 effective during the period in which the special assessment is imposed and 19 shall have a priority coequal to the lien of real property taxes. A special 20 assessment shall be subject to foreclosure by the district in the same manner 21 as real property tax liens under the laws of this state, provided that a spe- 22 cial assessment shall be subject to foreclosure at any time after thirty (30) 23 days following written notice of delinquency to the owner of the real property 24 to which the delinquency applies. The portion of proceeds of any foreclosure 25 sale necessary to discharge the lien for the special assessment shall be 26 deposited in the special bond fund for payment of any obligations secured 27 thereby. 28 (9) No holder of special assessment bonds issued pursuant to this chapter 29 may compel any exercise of the taxing power of the district, county or city to 30 pay the bonds or the interest on the bonds. Special assessment bonds issued 31 pursuant to this chapter are not a debt of the state of Idaho or any political 32 subdivision thereof including the district, county or city, nor is the payment 33 of special assessment bonds enforceable out of any moneys other than the reve- 34 nue pledged to the payment of the bonds. 35 (10) Subject to the provisions of this section, a district may issue spe- 36 cial assessment bonds at such times and in such amounts as the district deems 37 appropriate to carry out a project or projects in phases, and payment may be 38 made pursuant to a draw schedule. 39 (11) The district may issue and sell refunding bonds to refund any special 40 assessment bonds of the district authorized in this chapter. The principal 41 amount of the refunding bonds may be more or less than the principal amount of 42 the bonds being refunded, provided the proceeds of the refunding bonds are 43 used only for refunding purposes and payment of the costs thereof, and the 44 total obligation of the district is not increased, that is, if the amount of 45 the refunding bonds is more than the principal amount of the bonds being 46 refunded, issuance of the refunding bonds will result in a net present value 47 savings to the district. No election shall be required in connection with the 48 issuance and sale of such refunding bonds. Refunding bonds issued pursuant to 49 this section shall have a final maturity date no later than the final maturity 50 date of the bonds being refunded. 51 50-3110. REVENUE BONDS -- ELECTION. (1) Subject to section 3, article 52 VIII, of the constitution of the state of Idaho, after district formation, 53 whenever the district board shall deem it advisable to issue revenue bonds of 54 the district, the district board shall provide therefor by resolution, which 14 1 resolution shall specify and set forth the community infrastructure consistent 2 with the general plan to be financed with such bonds. 3 (2) The resolution shall also provide for holding an election, held in 4 compliance with section 50-3112, Idaho Code, to submit to the qualified elec- 5 tors of the district the question of authorizing the district to issue revenue 6 bonds of the district to provide moneys for such community infrastructure con- 7 sistent with the general plan. 8 (3) Except as otherwise specifically set forth in this section, the pro- 9 visions of the water and sewer district revenue bond act codified in chapter 10 41, title 42, Idaho Code, shall apply with respect to the issuance of revenue 11 bonds and refunding bonds under this section in substantially the same manner 12 as if the district were a water and/or sewer district issuing bonds pursuant 13 to the water and sewer district revenue bond act, and the district board shall 14 conduct itself in the issuance of revenue bonds in substantially the same man- 15 ner as the commissioners of a district under the water and sewer district rev- 16 enue bond act. 17 (4) If the revenue bonds are approved at the election, the district board 18 shall thereupon be authorized to issue and create such indebtedness in the 19 manner and for the purposes specified in said resolution, and such bonds shall 20 be issued and sold in the manner provided by the laws of the state of Idaho. 21 (5) After the bonds are issued, the district board shall enter in its 22 minutes a record of the bonds sold and their numbers and dates and shall peri- 23 odically collect the pledged revenues to pay the debt service on the bonds 24 when due. 25 (6) Money derived from the collection of revenues pledged to pay the debt 26 service on the bonds shall be kept separately from other moneys of the dis- 27 trict. 28 (7) No holder of revenue bonds issued pursuant to this chapter may compel 29 any exercise of the taxing power of the district, county or city to pay the 30 bonds or the interest on the bonds. Revenue bonds issued pursuant to this 31 chapter are not a debt of the state or any political subdivision thereof, 32 including any county or city in which the district is located, nor are they 33 the debt of the district, other than with respect to the revenue pledged to 34 the payment of the bonds. The payment of revenue bonds is not enforceable out 35 of any money other than the revenue pledged to the payment of the bonds. 36 (8) Subject to the provisions of this section, a district may issue reve- 37 nue bonds at such times and in such amounts as the district deems appropriate 38 to carry out a project in phases. 39 (9) The district may issue and sell refunding bonds to refund revenue 40 bonds of the district authorized by this section. The principal amount of the 41 refunding bonds may be more or less than the principal amount of the bonds 42 being refunded, provided the proceeds of the refunding bonds are used only for 43 refunding purposes and payment of the costs thereof, and the total obligation 44 of the district is not increased, that is, if the amount of the refunding 45 bonds is more than the principal amount of the bonds being refunded, issuance 46 of the refunding bonds will result in a net present value savings to the dis- 47 trict. No election shall be required in connection with the issuance and sale 48 of such refunding bonds. Refunding bonds issued pursuant to this section 49 shall have a final maturity date no later than the final maturity date of the 50 bonds being refunded. 51 50-3111. TERMS OF BONDS. For any bonds issued under this chapter, the 52 district board shall prescribe the denominations of the bonds, the principal 53 amount of each issue and the form of the bonds and shall establish the maturi- 54 ties, which shall not exceed thirty (30) years, interest payment dates and 15 1 interest rates, whether fixed or variable, not exceeding the maximum rate 2 stated in the notice of the election or the resolution of the district board. 3 The bonds, up to the aggregate authorized principal amount thereof, may be 4 issued in whole or divided into series, and by supplementary resolution 5 adopted from time to time by the district board, the district may issue any 6 remaining principal amount of the bonds in one (1) or more subsequent divi- 7 sions. No election shall be required in connection with the issuance of any 8 remaining principal amount of the bonds in a subsequent division. The bonds 9 may be sold by competitive bid or negotiated sale for public or private offer- 10 ing at, below or above par. The proceeds of the bonds shall be deposited with 11 the treasurer, or with a trustee or agent designated by the district board, to 12 the credit of the district to be withdrawn for the purposes provided by this 13 chapter. Pending that use, the proceeds may be invested as determined by the 14 district board. The bonds shall be made payable as to both principal and 15 interest solely from revenues of the district, and shall specify the revenues 16 pledged for such purposes, and shall contain such other terms, conditions, 17 covenants and agreements as the district board deems proper. The bonds may be 18 payable from any combination of taxes or revenues of the types described in 19 sections 50-3108, 50-3109 and 50-3110, Idaho Code. 20 50-3112. NOTICE AND CONDUCT OF ELECTION. (1) Any election pursuant to 21 this chapter shall be a nonpartisan election, and in regard to election dates, 22 shall be held in compliance with section 34-106, Idaho Code, or section 23 50-429, Idaho Code. Except as otherwise specifically set forth in this sec- 24 tion, the district board shall cause the election to be held and conducted in 25 the same manner prescribed by law for the holding of general elections in this 26 state, including chapter 14, title 34, Idaho Code, and shall call the election 27 by posting notices in three (3) public places within the boundaries of the 28 district not less than thirty (30) days before the election. Notice shall also 29 be published twice, the first time not less than twelve (12) days prior to the 30 election and the second time not less than five (5) days prior to the elec- 31 tion, in a newspaper of general circulation in each county or city in which 32 the proposed district is located. A copy of such notice shall also be mailed 33 to each owner of real property in the district if known or such owner's agent 34 if known, addressed to such person at his or her post office address if known 35 or, if unknown, to a post office in the county or city where the district is 36 located. Ownership of real property shall be determined as of the date of the 37 adoption of the resolution ordering the hearing. The notice shall state: 38 (a) The place of holding the election; 39 (b) Subject to section 34-1409, Idaho Code, the hours during the day in 40 which the polls will be open; 41 (c) If the election is a bond election, whether the bonds are general 42 obligation bonds or revenue bonds, the total principal amount of bonds to 43 be authorized, whether the bonds will be issued in series, the maximum 44 rate of interest to be paid on the bonds and the maximum term of the 45 bonds, not exceeding thirty (30) years; 46 (d) If the election is an election to change or eliminate an existing 47 tax, the maximum tax amount to be imposed as a result of the change or 48 elimination; 49 (e) The purposes for which property taxes levied and revenues raised will 50 be used, including a description of the community infrastructure to be 51 financed with tax revenues, district revenues or bond proceeds; 52 (f) That the imposition of property taxes will result in a lien for the 53 payment thereof on real property within the district; and 54 (g) That a general plan is on file with the county clerk of each county 16 1 in which the district is located. 2 (2) The district board shall determine the date of the election and the 3 polling place or places for the election. The district board may establish, 4 change, and consolidate election precincts within the district, as it deems 5 necessary and appropriate, and shall define precinct boundaries. 6 (3) Subject to sections 50-3102(11) and 50-3102(13), Idaho Code, the cur- 7 rent property rolls for the district and current voter lists in effect at the 8 time that the election has begun shall be used to determine the qualified 9 electors. If the district includes land lying partly in and partly out of any 10 precinct, the voter lists may contain the names of all electors in the pre- 11 cinct, and the precinct boards at those precincts shall require that a pro- 12 spective elector execute an affidavit stating that the elector is also a qual- 13 ified elector. 14 (4) If the district is to be located within two (2) or more counties 15 and/or cities, the election shall be held on the same day in each jurisdic- 16 tion. 17 (5) The ballot material provided to each voter shall include: 18 (a) For an election concerning the issuance of bonds, an impartial 19 description of the bonds to be issued and an impartial description of the 20 property taxes to be imposed; the method of apportionment, collection and 21 enforcement and other details sufficient to enable each qualified elector 22 to reasonably estimate the amount of tax he or she will be obligated to 23 pay; and a statement that the issuance of the bonds and the imposition of 24 property taxes is for the provision of certain, but not necessarily all, 25 community infrastructure that may be needed or desirable within the dis- 26 trict, and that other taxes or assessments by other governmental entities 27 may be presented for approval by qualified electors; and 28 (b) For an election to change an existing maximum tax or eliminate an 29 existing tax, an impartial description of the change or elimination. 30 (6) Within ten (10) days after an election, the district board shall meet 31 and canvass the returns, and declare the results thereof. At least a two- 32 thirds (2/3) majority of the votes cast at the election shall be required for 33 issuing bonds or changing an existing tax. The canvass may be continued for an 34 additional period not to exceed thirty (30) days at the election of the dis- 35 trict board for the purpose of completing the canvass. Failure of a required 36 majority to vote in favor of the matter submitted shall not prejudice the sub- 37 mission of the same or similar matters at a later election. The canvass of any 38 general obligation bond election shall be filed and recorded in each county in 39 which the district is located. 40 (7) In any election held pursuant to this chapter, every voter may vote 41 at any election held pursuant to this chapter, but shall be entitled to cast 42 votes, as follows: (i) each resident qualified elector shall be entitled to 43 one (1) vote; and (ii) each owner qualified elector shall be entitled to the 44 number of votes or portions of votes equal to the number of acres or portions 45 of acres rounded upward to the nearest one-fifth (1/5) of an acre owned by 46 that owner in the submitted district. An owner qualified elector shall not be 47 entitled to an additional vote as a result of also being a resident of the 48 district, unless he or she owns less than one (1) acre of land, in which case 49 they shall be entitled to one (1) vote. When record title is held in more 50 than one (1) name, the owners shall file with the clerk of the district at or 51 prior to the election a designation in writing, of which one of the owners 52 shall be deemed the owner for purposes of voting. 53 (8) In conducting an election, the polling official may require evidence 54 of ownership of property and designation of the power to exercise the vote of 55 any owner consistent with the provisions of this section and section 17 1 50-3102(10), Idaho Code. 2 50-3113. COST OF ADMINISTRATION. Each year, prior to the time for the 3 certification required under section 50-3114, Idaho Code, the district board 4 may levy a tax upon all taxable real property within the district of up to 5 one-hundredth of one percent (.01%) of the market value for assessment pur- 6 poses on all taxable real property within the district, to be used only to 7 reimburse or defray the administrative expenses of the district pursuant to a 8 district development agreement. No election shall be required. The levy shall 9 be made by resolution entered upon the minutes of the district board, and it 10 shall be the duty of the clerk of the district, immediately after entry of the 11 resolution in the minutes, to transmit to the board of county commissioners in 12 each county in which the district is located, the certification required under 13 section 50-3114, Idaho Code. Such tax shall then be collected and accounted 14 for at the time and in the form and manner as other taxes are collected and 15 accounted for under the laws of this state. 16 50-3114. ANNUAL FINANCIAL STATEMENTS AND ESTIMATES -- ANNUAL BUDGET -- 17 CERTIFICATION. (1) When levying property taxes or imposing special assess- 18 ments, and prior to certification of same to the county commissioners, the 19 district board shall make annual statements and estimates of the administra- 20 tive expenses of the district, the costs of community infrastructure to be 21 financed by property taxes and special assessments and the amount of all other 22 expenditures for community infrastructure proposed to be paid from property 23 taxes and special assessments and of the amount to be raised to pay general 24 obligation bonds and special assessment bonds of the district, all of which 25 shall be provided for by the levy, imposition and collection of property taxes 26 and special assessments. The annual estimates prepared by the district board 27 shall include an amount determined by the district board, in consultation with 28 the county tax collector, to defray the costs imposed upon the county tax 29 collector's office for any additional administrative services that will be 30 required in the collection of and accounting for such district property taxes 31 and special assessments. Such additional costs shall be for those services not 32 otherwise included in the general tax collection and accounting services 33 already provided by the county tax collector's office and otherwise paid for 34 by property tax revenues, and shall be reasonably related to, but shall not 35 exceed, the actual cost of the additional administrative services provided. 36 The district board shall file the annual statements and estimates with the 37 district clerk and, not later than the time required by section 63-802A, Idaho 38 Code, shall set and notify the county clerk of the date and location set for 39 the annual budget hearing of the district. The district board shall publish a 40 notice of the filing of the estimate, shall hold a public hearing on the por- 41 tion of the estimate not relating to debt service on general obligation bonds 42 and special assessment bonds and shall adopt a budget. Notice of the budget 43 hearing shall be posted at least ten (10) days prior to the date of said meet- 44 ing in at least one (1) conspicuous place within the district to be determined 45 by the district board; a copy of the notice shall also be published in a news- 46 paper of general circulation in the county or city in which the proposed dis- 47 trict is located, in one (1) issue thereof, during such ten (10) day period. 48 The place, hour and day of the hearing shall be specified in said notice, as 49 well as the place where the budget may be examined prior to the hearing. A 50 full and complete copy of the proposed budget shall be published with and as a 51 part of the publication of the notice of hearing. The budget shall be avail- 52 able for public inspection from and after the date of the posting of notices 53 of hearing as in this section provided, at such place and during such business 18 1 hours as the district board may direct. A quorum of the district board shall 2 attend the hearing and explain the proposed budget and hear any and all objec- 3 tions to the proposed budget. The district board at the time of the certifica- 4 tion required under subsection (2) of this section shall file with the board 5 of county commissioners in each county in which the district is located a cer- 6 tified copy of the annual budget as previously prepared, approved and adopted. 7 (2) The district board, having determined the total amount required from 8 property taxes and special assessments to raise the amount of money fixed by 9 the annual budget, including the amount of money needed to satisfy annual bond 10 payments, shall cause the amount of money so determined to be certified in 11 dollars to the board of county commissioners in each county in which the dis- 12 trict is located not later than the time required for certification under sec- 13 tion 63-803, Idaho Code. Said certification shall list separately each tax 14 levy and special assessment if more than one (1), and the purpose of each 15 thereof, and shall otherwise comply with the requirements of section 63-803, 16 Idaho Code. 17 (3) Following such certification to the county commissioners, district 18 property taxes and special assessments shall then be collected and accounted 19 for at the time and in the form and manner as other taxes are collected and 20 accounted for under the laws of this state. Except as specifically provided 21 otherwise in this chapter, all statutes of this state relating to the levy, 22 imposition, collection, settlement and payment of property taxes, including 23 the collection of delinquent taxes and sale of property for nonpayment of 24 taxes and special assessments, apply to district property taxes and special 25 assessments. 26 50-3115. DISCLOSURE. (1) The district board shall record with the county 27 clerk in each county in which the district is located, upon the records of 28 each parcel of real property within the district that will be encumbered with 29 any future general obligation bond or special assessment bond repayment lia- 30 bility, a notice setting forth: 31 (a) The current obligation of a property owner within the district with 32 respect to any bond repayment liability; 33 (b) That the obligation to retire the bonds will be the responsibility of 34 any property owner in the district through the payment of real property 35 taxes and special assessments collected by the county treasurer in addi- 36 tion to all other property tax payments; 37 (c) The estimated maximum tax or special assessment rate upon the parcel 38 for bond repayment; 39 (d) Whether the tax or special assessment rate is to be maintained at any 40 level by means of any developer agreement with the district; and 41 (e) That in the event of the failure to maintain the tax rate, the tax 42 rate on a parcel will increase, as needed, to provide for bond repayment. 43 (2) Such notice may be separately recorded or included in a recorded dis- 44 trict development agreement. The governing body, in its resolution approving 45 formation of the district, shall require that a form disclosure, consistent 46 with the foregoing, be signed and acknowledged by any purchaser of land within 47 the district prior to purchase. The form disclosure shall be entitled "CID 48 TAX AND SPECIAL ASSESSMENT DISCLOSURE NOTICE" and shall specifically and con- 49 spicuously set forth "YOU ARE PURCHASING REAL PROPERTY THAT IS INCLUDED WITHIN 50 THE BOUNDARIES OF A COMMUNITY INFRASTRUCTURE DISTRICT." Further, the notice 51 shall set forth such other notifications as determined appropriate by the dis- 52 trict board that shall fully and fairly disclose the property owner's general 53 obligation bond and special assessment repayment liability with examples pro- 54 vided. 19 1 50-3116. 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 community infrastructure owned by the district has been, or pro- 5 vision has been made for all community infrastructure to be conveyed, 6 either to the state of Idaho or to a political subdivision thereof, which 7 shall include a county or city in which the district is located, or to a 8 public district or other authority authorized by the laws of this state to 9 own such community infrastructure; 10 (b) The district has no outstanding bond obligations; and 11 (c) All obligations of the district pursuant to any contracts or agree- 12 ments entered into by the district have been satisfied. 13 (2) All property within the district that is subject to the lien of dis- 14 trict taxes or special assessments shall remain subject to the lien for the 15 payment of general obligation bonds or special assessment bonds, as the case 16 may be, notwithstanding dissolution of the district. The district shall not be 17 dissolved if any revenue bonds of the district remain outstanding unless an 18 amount of money sufficient, together with investment income thereon, to make 19 all payments due on the revenue bonds, either at maturity or prior redemption, 20 has been deposited with a trustee or escrow agent and pledged to the payment 21 and redemption of the bonds. The district may continue to operate after disso- 22 lution only as needed to collect money and make payments on any outstanding 23 bonds. 24 (3) The district shall send a notice of dissolution to the governing body 25 or bodies, the county assessor of each county in which the district is 26 located, and the state tax commission. The district shall also record a notice 27 of dissolution with the county clerk in each county in which the district is 28 located. 29 (4) Subject to the foregoing provisions of this section, if upon dissolu- 30 tion of the district there remain any excess moneys of the district, the dis- 31 trict board shall, by resolution, cause the same to be fairly distributed 32 among the current taxpayers of the district. If, as determined in the sole 33 discretion of the district board, the amount to be distributed is de minimis, 34 or the administrative cost of distribution is prohibitive, such remaining 35 moneys shall be paid to the county treasurer of each county in which the dis- 36 trict is located to be distributed among the cities and counties in which the 37 district is located in proportion to which said cities and counties receive 38 property tax revenues generally. 39 50-3117. EXEMPTIONS AND EXCLUSIONS. (1) All public utilities, as defined 40 in section 61-129, Idaho Code, shall be exempt from taxation under this chap- 41 ter. 42 (2) No railroad right-of-way may be included within a community infra- 43 structure district without the consent of the railroad. 44 (3) No personal property within a community infrastructure district shall 45 be subject to taxation under this chapter. 46 50-3118. LIMITATION OF LIABILITY. Neither any member of the district 47 board nor any person acting on behalf of the district, while acting within the 48 scope of his or her authority, shall be subject to any personal liability for 49 any action taken or omitted within that scope of authority. 50 50-3119. APPEAL -- EXCLUSIVE REMEDY -- CONCLUSIVENESS. Any person in 51 interest who feels aggrieved by the final decision of a governing body or a 52 district board in the formation or governing of a district, including, with 20 1 respect to any tax levy, special assessment or bond, may, within thirty (30) 2 days after such final decision, seek judicial review by filing a written 3 notice of appeal with the clerk of the district and with the clerk of the dis- 4 trict court for the judicial district in which a majority of the land area of 5 the district is located. After said thirty (30) day period has run, no one 6 shall have any cause or right of action to contest the legality, formality or 7 regularity of said decision for any reason whatsoever and, thereafter, said 8 decision shall be considered valid and uncontestable and the validity, legal- 9 ity and regularity of any such decision shall be conclusively presumed. With 10 regard to the foregoing, if the question of validity of any bonds issued pur- 11 suant to this chapter is not raised on appeal as aforesaid, the authority to 12 issue the bonds, the legality thereof and of the levies or assessments neces- 13 sary to pay the same shall be conclusively presumed and no court shall there- 14 after have authority to inquire into such matters. 15 50-3120. CONSISTENCY WITH STATE LAW. (1) A community infrastructure dis- 16 trict shall develop community infrastructure consistent with the general plan 17 and in compliance with the requirements of chapter 13, title 50, Idaho Code, 18 and chapter 65, title 67, Idaho Code. 19 (2) A community infrastructure district shall be deemed to be of the same 20 nature and afforded the same treatment as a local improvement district for 21 purposes of application of section 58-336, Idaho Code, relating to lands bene- 22 fitting by such district; section 67-8209, Idaho Code, authorizing development 23 impact fee credits; and section 67-8214, Idaho Code, providing that other 24 powers and rights of governmental entities are not affected. 25 50-3121. SEVERABILITY. The provisions of this chapter are hereby declared 26 to be severable and if any provision or the application of the provision to 27 any person or circumstance is declared invalid for any reason, such declara- 28 tion shall not affect the validity of remaining portions of this chapter.
STATEMENT OF PURPOSE
RS 18009
Idaho continues to experience rapid growth. As a result, new highways,
roads, bridges, sewer, water, fire, and police stations must be constructed.
Often, existing public facilities must be improved to provide for the
increased demands. Idaho citizens are asking for ways to ensure that
"growth pays for growth."
This legislation creates a financial tool to allow new growth to more
expediently pay for itself through the creation of Community Infrastructure
Districts (CIDs). A CID allows the formation of a taxing district comprised
by the boundaries of a new development. Taxes and assessments applied only
to lands within the new development will secure bonds. Those bonds can be
utilized to fund and construct regional community infrastructure, inside and
outside the district. Only infrastructure that is impact fee-eligible, such
as highways, roads, bridges, sewer and water treatment facilities, and
police, fire and other public safety facilities may be funded with bond
proceeds generated by a CID.
The legislation also creates a mechanism for the prepayment of
development impact fees. Impact fees are typically collected at the time of
building permit issuance. Those are generally paid in arrears or collected
after the need for funding and infrastructure improvement has occurred. The
prefunding of developmental impact fees will allow for the construction of
adequate public facilities prior to developmental growth and in advance of
the need for increased facility capacities.
A CID can only be formed within the boundaries of a city or within the
boundaries of a city's comprehensive planning zone and with the city's
consent. Only infrastructure that is publicly-owned by the state, county or
city, and only impact fee-eligible projects may be constructed with the
proceeds of a CID.
FISCAL NOTE
This legislation will have no impact on the general fund.
Contact: Representatives Dennis Lake, Ken Roberts, Jim Clark, Leon Smith,
and James Ruchti. Senators Brent Hill, Brad Little, John McGee, Stan
Bastian, David Langhorst.
STATEMENT OF PURPOSE/FISCAL NOTE H 578