2008 Legislation
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HOUSE BILL NO. 578<br /> – Community Infrastructure Dist

HOUSE BILL NO. 578

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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

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN 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-

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  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

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  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-

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  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

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  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

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  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 / Fiscal Impact


                       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