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H0680...............................................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.
03/25 House intro - 1st rdg - to printing
Rpt prt - to 2nd rdg
03/26 2nd rdg - to 3rd rdg
03/27 3rd rdg - PASSED - 50-18-2
AYES -- Anderson, Andrus, Bayer, Bell, Bilbao, Black, Block, Bock,
Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Clark, Collins,
Crane, Eskridge, Hagedorn, Harwood, Henbest, Henderson, Kren, Lake,
Loertscher, Marriott, Mathews, Mortimer, Nonini, Patrick, Pence,
Raybould, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thomas, Vander Woude, Wills, Wood(27), Mr. Speaker
NAYS -- Barrett, Bedke, Boe, Chew, Durst, Hart, Jaquet, Killen, King,
LeFavour, Luker, Moyle, Nielsen, Pasley-Stuart, Ringo, Thayn, Trail,
Wood(35)
Absent and excused -- Labrador, McGeachin
Floor Sponsor - Clark
Title apvd - to Senate
03/27 Senate intro - 1st rdg - to Loc Gov
03/31 Rpt out - rec d/p - to 2nd rdg
04/01 2nd rdg - to 3rd rdg
Rls susp - PASSED - 29-4-2
AYES -- Andreason, Bair, Bastian, Broadsword, Cameron, Coiner,
Corder, Davis, Fulcher, Gannon(Gannon), Geddes, Goedde, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai(Sagness), McGee, McKague, Richardson, Schroeder, Siddoway,
Stegner, Stennett
NAYS -- Bilyeu, Burkett, Pearce, Werk
Absent and excused -- Darrington, McKenzie
Floor Sponsor - Hill
Title apvd - to House - to enrol
04/02 Rpt enrol - Sp signed - Pres signed
04/03 To Governor
04/15 Governor signed
Session Law Chapter 410
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 680 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 a person who possesses all of the qualifi- 55 cations required of electors under the general laws of the state of Idaho and: 4 1 (a) Resides within the boundaries of a district or a proposed district 2 and who is a qualified elector. For purposes of this chapter, such elector 3 shall also be known as a "resident qualified elector"; or 4 (b) Is an owner of real property that is located within the district or a 5 proposed district, who is not a resident qualified elector as set forth 6 above. For purposes of this chapter, such elector shall also be known as 7 an "owner qualified 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 not less than two-thirds (2/3) of the district residents or by 19 all of the owners of all the lands located in the proposed district. The peti- 20 tion shall be filed with the clerk of the governing body in which the proposed 21 district will be located. If the proposed district will be located within two 22 (2) or more counties and/or cities, a petition conforming to the requirements 23 of this section shall be filed with the clerk of each jurisdiction's governing 24 body. The petition shall state the name of the proposed district and the pur- 25 pose for which it is formed, state that the formation of the district shall 26 entitle the district to impose special assessments, levy property taxes and 27 impose fees or charges to pay the cost of providing services, and shall be 28 accompanied by a map depicting the boundaries of the proposed district, a 29 legal description of the proposed district and a copy of the proposed general 30 plan. The general plan shall describe or identify the community infrastructure 31 to be financed by the district, the locations of the infrastructure and the 32 estimated cost thereof, the proposed financing methods and the anticipated 33 special assessments, tax levies or other charges, the approvals obtained pur- 34 suant to section 50-3101(3), Idaho Code, and may include possible alterna- 35 tives, modifications or substitutions concerning locations, improvements, 36 financing methods and other information provided in the general plan. The 37 petition shall also include copies of any proposed district development agree- 38 ment. The petition, together with all maps and other papers filed therewith, 39 shall be open to public inspection in the office of the clerk in each county 40 or city in which the petition is filed, during such business hours as the 41 clerk may direct. 42 (2) Upon the filing of a petition, the governing body shall give notice 43 of the filing of the petition and of the time and place set for a public hear- 44 ing on the petition, which hearing shall be at a regular or special meeting 45 held within not less than thirty (30) days nor more than ninety (90) days 46 after the date of the filing of the petition. A notice of the time of the pub- 47 lic hearing shall be published by the governing body twice, the first time not 48 less than twelve (12) days prior to the hearing and the second time not less 49 than five (5) days prior to the hearing, in a newspaper of general circulation 50 in each county or city in which the proposed district will be located. A copy 51 of such notice shall also be mailed to each district resident and each owner 52 of real property in the district if known or such owner's agent if known, 53 addressed to such person at his or her post office address if known or, if 54 unknown, to a post office in the county or city where the district is located. 5 1 Ownership of real property shall be determined as of the date of the adoption 2 of the resolution ordering the hearing. The notice shall state that a commu- 3 nity infrastructure district is proposed to be formed, giving the proposed 4 boundaries thereof, and that any person who is a resident of or a real prop- 5 erty taxpayer within the proposed district may, on the date fixed for the pub- 6 lic hearing, appear and offer any testimony pertaining to the formation of the 7 district and the proposed boundaries thereof. If the district will be located 8 within two (2) or more counties and/or cities, the governing bodies of such 9 counties and/or cities shall coordinate their efforts and shall either hold a 10 public hearing in each county or city in which the proposed district will be 11 located, or hold a single public meeting in such county or city as the govern- 12 ing bodies shall unanimously agree. The notice shall also state that any 13 political subdivision of this state within whose jurisdiction the proposed 14 district will be located, including, without limitation, a highway district, a 15 school district, a fire district or an ambulance district, may, on the date 16 fixed for the public hearing, appear and offer testimony pertaining to the 17 formation of the district and the proposed boundaries thereof. After hearing 18 and considering any and all of the testimony given, the governing body shall 19 thereupon approve a resolution either denying the petition or granting the 20 same and, if granting the same, shall fix and describe in the resolution the 21 boundaries of the proposed district and order the formation of the same. A 22 resolution granting the petition may also include the approval of any district 23 development agreement that has been approved by the governing body in the 24 process of considering and approving the formation of the district. The 25 boards of county commissioners and/or the city councils, as such governing 26 bodies, are hereby specifically authorized to act in a joint manner for such 27 purposes. 28 (3) Whenever a petition shall be filed as provided for in this section, 29 the petitioner or petitioners shall deposit with each governing body a sum 30 sufficient to defray the costs of publication and mailing of notice of the 31 public hearing. In the event the district is formed, said petitioner or peti- 32 tioners shall be entitled to be reimbursed such sum from the district, as a 33 district formation cost related to the community infrastructure, from the dis- 34 trict when moneys are available to the district. The amount required to be 35 paid under this subsection shall be determined by each governing body and 36 deposited before publication of the notice. 37 (4) The governing body may charge the petitioner or petitioners a reason- 38 able fee for the governing body to retain outside advisors to assist the gov- 39 erning body in its consideration of the formation of the district. In the 40 event the district is formed, the petitioner or petitioners shall be entitled 41 to be reimbursed such fee from the district, as a district formation cost 42 related to the community infrastructure, when moneys are available to the dis- 43 trict. 44 50-3104. DISTRICT ORGANIZATION. (1) If the petition for formation of the 45 district is granted, the district shall comply with the filing and recording 46 requirements of section 63-215, Idaho Code, and shall also cause a copy of the 47 applicable resolution to be delivered to the county assessor of each county in 48 which the district is located, cause a copy of the applicable resolution to be 49 recorded with the county clerk in each county in which the district is 50 located, and cause a copy of the applicable resolution to be filed with the 51 state tax commission. 52 (2) Members of the governing body or bodies at the time of formation 53 shall serve as the district board. If the district is located entirely within 54 the boundaries of a city, three (3) members of the city council chosen by the 6 1 city council shall serve as the district board. If the district is located 2 entirely within the boundaries of a county and outside the boundaries of any 3 city, the county commissioners of the county in which the district is located 4 shall serve as the district board. If the district is located within the 5 jurisdiction of more than one (1) governing body, two (2) members of each gov- 6 erning body shall be appointed by that governing body to serve on the district 7 board and, in addition, the governing body within whose jurisdiction the larg- 8 est land area of the district is located shall appoint another member from its 9 governing body to serve as an additional member of the district board, so that 10 the district board will always be comprised of an odd number of members. For 11 purposes of determining which jurisdiction has such largest land area, the 12 land area in the district that is within the incorporated city limits shall be 13 considered as being the land area of the city, and shall not be considered as 14 part of the land area of the county in which the city is located. If an area 15 is added to the district pursuant to section 50-3106(2), Idaho Code, and such 16 area is located in a city or county not already represented on the district 17 board, or if the addition of such area changes the jurisdiction in which the 18 largest land area of the district is located, the membership of the district 19 board, at the time of addition of such area, shall be adjusted in conformity 20 with the foregoing. If an area is deleted from the district pursuant to sec- 21 tion 50-3106(1), Idaho Code, and, as a result, a county or city no longer has 22 area within the district, or such deletion changes the jurisdiction in which 23 the largest land area of the district is located, the membership of the dis- 24 trict board, at the time of deletion of such area, shall be adjusted in con- 25 formity with the foregoing. If an area is annexed or deannexed by a city and, 26 as a result, the jurisdiction of a county or city is changed, the membership 27 of the district board at the time of such annexation or deannexation shall be 28 adjusted in conformity with the foregoing. The boards of county commissioners 29 and the city councils, as such governing bodies, are hereby specifically 30 authorized to act in a joint manner for such purposes. 31 (3) Within thirty (30) days after the date of the resolution ordering 32 formation of the district, and annually thereafter, the district board shall 33 meet and elect a chairman and vice-chairman to act as the officers of the dis- 34 trict board. The district board shall, unless otherwise agreed to by a major- 35 ity of the board, meet in the county or city within which the largest land 36 area of the district is located. The district shall keep the following 37 records, which shall be open to public inspection: 38 (a) Minutes of all meetings of the district board; 39 (b) All resolutions; 40 (c) Accounts showing all moneys received and disbursed; 41 (d) The annual budget; and 42 (e) All other records required to be maintained by law. 43 (4) The district manager shall be the manager or equivalent of the city 44 or county, the district treasurer shall be the treasurer of the city or 45 county, the district clerk shall be the district clerk of the city or county, 46 respectively, unless the district board engages an outside firm to perform the 47 tasks of the district's manager, treasurer and clerk as well as other duties 48 as may be prescribed by the district board. 49 (5) The district manager shall have charge and supervision of the daily 50 operations of the district. The district manager may hire or otherwise employ 51 and terminate the employment of such persons, including professional, supervi- 52 sory and clerical employees, as may be necessary and authorized by the board. 53 (6) The treasurer of the district shall have such duties as the district 54 board may prescribe, together with the duty to keep account with the district; 55 to place to the credit of the district all moneys received by him or her from 7 1 the collection of special assessments, taxes or from any other sources, and 2 all other moneys belonging to the district, and to pay over all moneys belong- 3 ing to the district on legally drawn warrants or orders of the district board. 4 (7) The clerk of the district shall have such duties as the district 5 board may prescribe, together with the duty to conduct district elections and 6 to prepare and distribute legal notices. 7 (8) The district shall be separate and apart from any county or city. The 8 members of the district board, when serving in their official capacity as mem- 9 bers of the district board, shall act on behalf of the district and not as 10 members of a board of county commissioners or as members of a city council. 11 (9) The district board shall administer in a reasonable manner the imple- 12 mentation of the general plan. 13 (10) The district shall exist until dissolved pursuant to section 50-3116, 14 Idaho Code. 15 50-3105. DISTRICT POWERS. (1) A district formed pursuant to this chapter, 16 although a political subdivision of this state, is not a governmental entity 17 of general purposes and powers, but is a special limited purposes district, 18 with powers only as permitted under this chapter, which powers include the 19 power to finance community infrastructure consistent with the general plan 20 and, in implementing the general plan, to: 21 (a) Enter into contracts and expend moneys for any community infrastruc- 22 ture purposes and/or district operations; 23 (b) Enter into intergovernmental agreements as provided for in sections 24 67-2326 through 67-2333, Idaho Code; 25 (c) Enter into district development agreements; 26 (d) Acquire interests in real property and personal property for commu- 27 nity infrastructure, within or without the district, and sell, dedicate, 28 lease or otherwise dispose of district property if the sale, dedication, 29 lease or conveyance is not a violation of the terms of any contract or 30 bond covenant of the district; 31 (e) Plan, design, engineer, acquire, construct and install community in- 32 frastructure, including acquiring, converting, renovating or improving 33 existing facilities; 34 (f) Employ and establish and pay compensation for staff, counsel and con- 35 sultants; 36 (g) Reimburse a county, city or other political subdivision of this state 37 for staff and consultant services supplied by the county, city or other 38 political subdivision; 39 (h) Accept gifts or grants and incur and repay loans for any community 40 infrastructure; 41 (i) Enter into agreements with owners concerning the advance of money by 42 owners for community infrastructure or the granting of real property by 43 the owners for community infrastructure; 44 (j) Establish, impose and collect or cause to be collected special 45 assessments on real property located within an assessment area of the dis- 46 trict and, in conjunction with the imposition of such assessments, set and 47 collect or cause to be collected administrative fees for community infra- 48 structure; 49 (k) Levy property taxes on real property located within the district and, 50 in conjunction with the levy of such taxes, set and collect or cause to be 51 collected administrative fees for community infrastructure; 52 (l) Incur expenses of the district incident to and reasonably necessary 53 to implement the general plan, and pay the same, including the financial, 54 legal and administrative costs of the district; 8 1 (m) Borrow money and incur indebtedness and evidence the same by certifi- 2 cates, notes, bonds or debentures, and enter into contracts, agreements 3 and trust indentures to obtain credit enhancement or liquidity support for 4 its bonds and process the issuance, registration, transfer and payment of 5 its bonds and the disbursement and investment of proceeds of its bonds; 6 (n) Use public easements and rights-of-way in or across public property, 7 roadways, highways, streets or other thoroughfares and other public ease- 8 ments and rights-of-way, whether in or out of the geographical limits of 9 the district, county or city; and 10 (o) Sue and be sued and prosecute and defend, at law or in equity. 11 (2) Community infrastructure other than personalty, may be located only 12 in or on lands, easements or rights-of-way publicly owned by this state or a 13 political subdivision thereof. 14 (3) An agreement pursuant to subsection (1) of this section may include 15 agreements to repay all or part of such advances, fees and charges from the 16 proceeds of bonds if issued, or from advances, fees and charges collected 17 from other owners or users or those having a right to use any community infra- 18 structure. A person does not have authority to compel the issuance or sale of 19 the bonds of the district or the exercise of any taxing power of the district 20 to make repayment under any agreement. 21 (4) With respect to goods, services or construction to be paid for or 22 financed pursuant to this chapter, the district, as a political subdivision of 23 this state, shall comply with all applicable procurement statutes of this 24 state, including section 67-2320, Idaho Code, and chapter 28, title 67, Idaho 25 Code. 26 50-3106. CHANGE IN DISTRICT BOUNDARIES -- AMEND GENERAL PLAN. (1) After 27 district formation, an area may be deleted from the district only following 28 notice and hearing in the manner prescribed for the formation hearing, adop- 29 tion of a resolution of intention to do so by the district board, and by voter 30 approval by the qualified electors as provided in section 50-3112, Idaho Code. 31 Lands within the district that are subject to the lien of property taxes, spe- 32 cial assessments or other charges imposed pursuant to this chapter shall not 33 be deleted from the district while there are bonds outstanding that are pay- 34 able by such taxes, assessments or charges. 35 (2) After district formation, an area may be added to the district upon 36 adoption of a resolution of intention to do so by the district board and the 37 approvals of all the owners of the lands to be added and the governing body of 38 each county or city within which such lands are located, subject to notice, 39 hearing and adoption of a resolution in the manner as required for the forma- 40 tion of a district. 41 (3) If an area is deleted or added under subsection (1) or (2) of this 42 section, the district board shall attend to the recording and filing require- 43 ments set forth in section 63-215, Idaho Code, and shall also cause a copy of 44 the applicable resolution to be delivered to the county assessor of each 45 county in which the district is located, cause a copy of the applicable reso- 46 lution to be recorded with the county clerk in each county in which the dis- 47 trict is located, and cause a copy of the applicable resolution to be filed 48 with the state tax commission. 49 (4) The district board, following notice and hearing in the manner pre- 50 scribed for the formation hearing, may amend the general plan in any manner 51 that it determines will not substantially reduce the benefits to be received 52 by any land within the district from the community infrastructure upon comple- 53 tion of the work to be performed under the general plan. No election shall be 54 required for the purposes of this subsection. 9 1 50-3107. FINANCES. (1) Only community infrastructure to be publicly owned 2 by this state or a political subdivision thereof may be financed pursuant to 3 this chapter. 4 (2) Community infrastructure to be financed or acquired, or publicly or 5 privately constructed pursuant to this chapter shall be subject to the 6 required bidding procedures for any Idaho public agency. 7 (3) Community infrastructure shown in the general plan may be financed 8 from the following sources of revenue: 9 (a) Proceeds received from the sale of bonds of the district; 10 (b) Moneys of a county or city contributed to the district; 11 (c) Property taxes or special assessments; 12 (d) State or federal grants or contributions; 13 (e) Private contributions; 14 (f) User, landowner and other fees and charges; 15 (g) Proceeds of loans or advances; and 16 (h) Any other moneys available to the district by law. 17 (4) The amount of indebtedness evidenced by general obligation bonds 18 issued pursuant to section 50-3108, Idaho Code, special assessment bonds 19 issued pursuant to section 50-3109, Idaho Code, and revenue bonds issued pur- 20 suant to section 50-3110, Idaho Code, shall not exceed the estimated cost of 21 the community infrastructure to be financed with such bonds, plus all costs 22 connected with the issuance and sale of such bonds, including formation costs, 23 credit enhancement and liquidity support fees and costs. The total aggregate 24 outstanding principal amount of general obligation bonds and other indebted- 25 ness for which the full faith and credit of the district are pledged shall not 26 affect the general obligation bonding capacity of any county or city in which 27 the district is located. 28 (5) Bonds issued by a district shall not be a general obligation of this 29 state or any political subdivision thereof, including any county or city in 30 which the district is located and shall not pledge the full faith and credit 31 of this state or any political subdivision thereof, including any county or 32 city in which the district is located. 33 50-3108. GENERAL OBLIGATION BONDS -- ELECTION -- MAXIMUM INDEBTEDNESS 34 ALLOWED -- LEVY. (1) After district formation, whenever the district board 35 shall deem it advisable to issue general obligation bonds of the district, the 36 district board shall provide therefor by resolution, which resolution shall 37 specify and set forth the community infrastructure and other costs and 38 expenses approved by the district board consistent with the general plan to be 39 financed with the bonds, and make provision for the collection of an annual 40 tax sufficient to pay the interest on the bonds as it falls due, and also to 41 constitute a sinking fund for the payment of the principal thereof as required 42 by the constitution and laws of the state of Idaho. 43 (2) The resolution shall also provide for holding an election, held in 44 compliance with section 50-3112, Idaho Code, to submit to the qualified elec- 45 tors of the district the question of authorizing the district to issue general 46 obligation bonds of the district to provide money for said community infra- 47 structure consistent with the general plan. The ballot used in such election 48 shall be in form substantially as follows: "In favor of issuing bonds to the 49 amount of .......... dollars for the purpose stated in Resolution No. ...," 50 and "Against issuing bonds to the amount of ......... dollars for the purpose 51 stated in Resolution No. ...". 52 (3) If two-thirds (2/3) of the qualified electors at such election assent 53 to the issuing of the bonds and the incurring of the indebtedness thereby cre- 54 ated for the purpose aforesaid, the district board shall thereupon be author- 10 1 ized to issue and create such indebtedness in the manner and for the purposes 2 specified in said resolution, and the bonds shall be issued and sold in the 3 manner provided by the laws of the state of Idaho, and the district board by 4 further resolution shall be entitled to issue and sell the bonds in series or 5 divisions up to the authorized amount without the further vote of the quali- 6 fied electors, and to issue and sell such bonds at such times and in such 7 amounts as the district board deems appropriate to carry out a community in- 8 frastructure project or projects in phases; provided however, that before any 9 issuance of the bonds, including issuance in series or divisions and, in addi- 10 tion to such other determinations made by the district board as it may deem 11 reasonable and prudent, the district board shall also determine whether rea- 12 sonable financial assurance for the payment of the debt service on the bonds 13 through additional collateral, payment guarantee or otherwise shall be 14 required from a developer. The developer shall be consulted and shall be 15 given a reasonable period of time within which to appear, either in person or 16 in writing, and respond to any proposed financial assurance. If, following 17 such developer's response, the district board determines that reasonable 18 financial assurance shall be required, the district board shall specify the 19 type and amount of the financial assurance required in its resolution. 20 (4) In no event shall the aggregate outstanding principal amount of gen- 21 eral obligation bonds and any other indebtedness for which the full faith and 22 credit of the district are pledged exceed twelve percent (12%) of the actual 23 or adjusted market value for assessment purposes on all taxable real property 24 within the district as such valuation existed on December 31 of the previous 25 year. 26 (5) After the bonds are issued, the district shall enter in its minutes a 27 record of the bonds sold and their number and dates and shall periodically 28 collect the pledged revenues to pay the debt service on the bonds when due. 29 (6) Bond proceeds received by the district shall be held in a segregated 30 account and shall be disbursed therefrom only for: 31 (a) The payment of community infrastructure and/or community infrastruc- 32 ture segments approved by the district board and actually completed; or 33 (b) For the purpose of reimbursing actually paid expenditures relating to 34 community infrastructure as approved by the district board; provided how- 35 ever, that lien releases with respect to the payment made must be obtained 36 from the underlying providers of labor, work, services or materials as a 37 condition to such payment; or 38 (c) For the payment or reimbursement of governmentally imposed impact 39 fees as approved by the district board. 40 (7) Completion of community infrastructure may be phased and payment made 41 pursuant to a draw schedule. Bond proceeds shall be expended on the community 42 infrastructure within three (3) years after issuance. Prior to issuance of the 43 bonds, the district board shall determine that such bond proceeds can reason- 44 ably be expended within that time. 45 (8) Each year, prior to the time for the certification required under 46 section 50-3114, Idaho Code, the district board shall levy a tax upon all tax- 47 able real property within the district, sufficient, together with any money 48 from the sources described in section 50-3107(3), Idaho Code, to pay debt ser- 49 vice on the bonds when due. The levy shall be made by resolution entered upon 50 the minutes of the district board, and it shall be the duty of the clerk of 51 the district, immediately after entry of the resolution in the minutes, to 52 transmit to the board of county commissioners in each county in which the dis- 53 trict is located the certification required under section 50-3114, Idaho Code. 54 Such tax levied shall then be collected and accounted for at the time and in 55 the form and manner as other taxes are collected and accounted for under the 11 1 laws of this state. Moneys derived from the levy of property taxes to pay the 2 debt service on the bonds shall be kept separately from other funds of the 3 district. A district's levy of property taxes shall constitute a lien on all 4 taxable real property within the district. 5 (9) The district may issue and sell refunding bonds to refund general 6 obligation bonds of the district authorized by this section. The principal 7 amount of the refunding bonds may be more or less than the principal amount of 8 the bonds being refunded, provided that the proceeds of the refunding bonds 9 are used only for refunding purposes and payment of the costs thereof, and the 10 total obligation of the district is not increased, that is, if the amount of 11 the refunding bonds is more than the principal amount of the bonds being 12 refunded, issuance of the refunding bonds will result in a net present value 13 savings to the district. No election shall be required in connection with the 14 issuance and sale of such refunding bonds. Refunding bonds issued pursuant to 15 this section shall have a final maturity date no later than the final maturity 16 date of the bonds being refunded. 17 50-3109. SPECIAL ASSESSMENTS -- BONDS. (1) After district formation, upon 18 the submission of a petition signed by all the owners of all the lands located 19 in a proposed assessment area, or whenever the district board shall deem it 20 advisable, the district board shall adopt a resolution ordering that a hearing 21 be held to determine whether a special assessment should be imposed and spe- 22 cial assessment bonds be issued to provide money for community infrastructure 23 consistent with the general plan and the exercise by the district board of any 24 of its powers under section 50-3105, Idaho Code. 25 (2) Notice of the hearing shall be posted in three (3) public places 26 within the boundaries of the district not less than thirty (30) days before 27 the hearing. Notice of the hearing shall also be published twice, the first 28 time not less than twelve (12) days prior to the hearing and the second time 29 not less than five (5) days prior to the hearing, in a newspaper of general 30 circulation in each county or city in which the district is located. A copy of 31 such notice shall also be mailed to each district resident and each owner of 32 real property in the district if known or such owner's agent if known, 33 addressed to such person at his or her post office address if known or, if 34 unknown, to a post office in the county or city where the district is located. 35 Ownership of real property shall be determined as of the date of the adoption 36 of the resolution ordering the hearing. The notice shall include the follow- 37 ing: 38 (a) A description of the real property to be included within the assess- 39 ment area; 40 (b) A description of the method by which the amount of the proposed spe- 41 cial assessment will be determined for each class of real property to 42 which the special assessment is proposed to apply, in sufficient detail to 43 enable the owner of the affected parcel to determine the amount of the 44 special assessment; 45 (c) A description of the community infrastructure to be financed with 46 special assessment bonds or revenues; and 47 (d) A statement that any person affected by the proposed special assess- 48 ment may object in writing or in person at the hearing. 49 (3) If, after the hearing, the district board finds that it will be for 50 the best interest of the district and the real property within the assessment 51 area that the aggregate fair market value of the real property within the 52 assessment area, including the value of the community infrastructure to be 53 financed or paid for with the special assessments, and the infrastructure for 54 which performance bonds or other financial assurances have been received, is 12 1 at least three (3) times the aggregate principal amount of the special assess- 2 ment bonds as determined by an MAI appraisal in form and substance acceptable 3 to the district board, the district board shall adopt a resolution approving 4 the imposition of the special assessment and, also by resolution, shall pre- 5 pare a form of assessment roll numbering each assessment, giving the name, if 6 known, of the owner of each lot or parcel of real property assessed, showing 7 the amount chargeable to each such lot or parcel, and finding that each such 8 lot or parcel is benefited to the amount of assessment imposed thereon. Such 9 resolution shall be the final determination of the regularity, validity and 10 correctness of the assessment roll, of each assessment contained therein, and 11 of the amount thereof imposed on each such lot or parcel. Special assessments 12 may be prepaid and permanently satisfied in whole or in part at any point in 13 time. Prepayment of special assessments shall be paid in cash to the district 14 in the following manner: (i) the interest on such portion to the next date 15 special assessment bonds may be redeemed, plus (ii) the unpaid principal 16 amount of such portion rounded up to the next highest multiple of one thousand 17 dollars ($1,000), plus (iii) any premium due on such redemption date with 18 respect to such portion, plus (iv) any administrative or other fees charged by 19 the district with respect thereto, less (v) the amount by which any reserve 20 fund associated with the special assessment may be reduced on the redemption 21 date as a result of such prepayment. 22 (4) Special assessment bonds approved at the hearing shall be issued in 23 the manner provided by the laws of the state of Idaho, and the district board 24 by further resolution shall be entitled to issue and sell the bonds in series 25 or divisions up to the authorized amount without further hearing, and to issue 26 and sell such bonds at such times and in such amounts as the district board 27 deems appropriate to carry out a community infrastructure project or projects 28 in phases. Bond proceeds shall be expended on the community infrastructure 29 within three (3) years after issuance. Prior to issuance of the bonds, the 30 district board shall determine that such bond proceeds can reasonably be 31 expended within such time. 32 (5) After the bonds are issued, the district board shall enter in its 33 minutes a record of the bonds sold and their numbers and dates and shall peri- 34 odically collect the pledged revenues to pay the debt service on the bonds 35 when due. 36 (6) Each year, prior to the time for the certification required under 37 section 50-3114, Idaho Code, the district board shall impose a special assess- 38 ment upon the real property within the assessment area of the district that 39 will be subject to the special assessment sufficient, together with any moneys 40 from the sources described in section 50-3107(3), Idaho Code, to pay debt ser- 41 vice on the bonds when due, in addition to reasonable costs associated with 42 the collection of the special assessment payments. The special assessment 43 shall be made by resolution entered upon the minutes of the district board, 44 and it shall be the duty of the clerk of the district, immediately after entry 45 of the resolution in the minutes, to transmit to the board of county commis- 46 sioners in each county in which the district is located, the certification 47 required under section 50-3114, Idaho Code. Such special assessment shall then 48 be collected and accounted for at the time and in the form and manner as prop- 49 erty taxes are collected and accounted for under the laws of this state. 50 Moneys derived from the imposition of the special assessment to pay the debt 51 service on the bonds shall be kept separately from other moneys of the dis- 52 trict. 53 (7) Special assessments against privately owned residential property 54 shall be subject to the following provisions: 55 (a) The maximum amount of any special assessment that may be imposed 13 1 shall not be increased over time by any amount exceeding two percent 2 (2%) per year, up to a maximum of ten percent (10%); 3 (b) The special assessment shall be imposed for a specified time period, 4 after which no further special assessment shall be imposed and collected; 5 and 6 (c) Subject to the applicable laws of this state, nothing in this subsec- 7 tion shall preclude the establishment of different categories of residen- 8 tial property or changing the amount of the special assessment imposed 9 upon a parcel whose size or use is changed. A change in the amount of a 10 special assessment imposed upon a parcel due to a change in its size or 11 use shall not require notice and hearing, if the method for changing the 12 amount of special assessment was approved at the hearing approving the 13 special assessment and was described in sufficient detail to enable the 14 owner of the affected parcel to determine how the change in size or use of 15 the parcel would affect the amount of the special assessment. 16 (8) A district's imposition of a special assessment shall constitute a 17 lien on the real property within the assessment area subject to the special 18 assessment, including real property acquired by the state or its political 19 subdivisions after the imposition of the special assessment, which shall be 20 effective during the period in which the special assessment is imposed and 21 shall have a priority coequal to the lien of real property taxes. A special 22 assessment shall be subject to foreclosure by the district in the same manner 23 as real property tax liens under the laws of this state, provided that a spe- 24 cial assessment shall be subject to foreclosure at any time after thirty (30) 25 days following written notice of delinquency to the owner of the real property 26 to which the delinquency applies. The portion of proceeds of any foreclosure 27 sale necessary to discharge the lien for the special assessment shall be 28 deposited in the special bond fund for payment of any obligations secured 29 thereby. 30 (9) No holder of special assessment bonds issued pursuant to this chapter 31 may compel any exercise of the taxing power of the district, county or city to 32 pay the bonds or the interest on the bonds. Special assessment bonds issued 33 pursuant to this chapter are not a debt of the state of Idaho or any political 34 subdivision thereof including the district, county or city, nor is the payment 35 of special assessment bonds enforceable out of any moneys other than the reve- 36 nue pledged to the payment of the bonds. 37 (10) Subject to the provisions of this section, a district may issue spe- 38 cial assessment bonds at such times and in such amounts as the district deems 39 appropriate to carry out a project or projects in phases, and payment may be 40 made pursuant to a draw schedule. 41 (11) The district may issue and sell refunding bonds to refund any special 42 assessment bonds of the district authorized in this chapter. The principal 43 amount of the refunding bonds may be more or less than the principal amount of 44 the bonds being refunded, provided the proceeds of the refunding bonds are 45 used only for refunding purposes and payment of the costs thereof, and the 46 total obligation of the district is not increased, that is, if the amount of 47 the refunding bonds is more than the principal amount of the bonds being 48 refunded, issuance of the refunding bonds will result in a net present value 49 savings to the district. No election shall be required in connection with the 50 issuance and sale of such refunding bonds. Refunding bonds issued pursuant to 51 this section shall have a final maturity date no later than the final maturity 52 date of the bonds being refunded. 53 50-3110. REVENUE BONDS -- ELECTION. (1) Subject to section 3, article 54 VIII, of the constitution of the state of Idaho, after district formation, 14 1 whenever the district board shall deem it advisable to issue revenue bonds of 2 the district, the district board shall provide therefor by resolution, which 3 resolution shall specify and set forth the community infrastructure consistent 4 with the general plan to be financed with such bonds. 5 (2) The resolution shall also provide for holding an election, held in 6 compliance with section 50-3112, Idaho Code, to submit to the qualified elec- 7 tors of the district the question of authorizing the district to issue revenue 8 bonds of the district to provide moneys for such community infrastructure con- 9 sistent with the general plan. 10 (3) Except as otherwise specifically set forth in this section, the pro- 11 visions of the water and sewer district revenue bond act codified in chapter 12 41, title 42, Idaho Code, shall apply with respect to the issuance of revenue 13 bonds and refunding bonds under this section in substantially the same manner 14 as if the district were a water and/or sewer district issuing bonds pursuant 15 to the water and sewer district revenue bond act, and the district board shall 16 conduct itself in the issuance of revenue bonds in substantially the same man- 17 ner as the commissioners of a district under the water and sewer district rev- 18 enue bond act. 19 (4) If the revenue bonds are approved at the election, the district board 20 shall thereupon be authorized to issue and create such indebtedness in the 21 manner and for the purposes specified in said resolution, and such bonds shall 22 be issued and sold in the manner provided by the laws of the state of Idaho. 23 (5) After the bonds are issued, the district board shall enter in its 24 minutes a record of the bonds sold and their numbers and dates and shall peri- 25 odically collect the pledged revenues to pay the debt service on the bonds 26 when due. 27 (6) Money derived from the collection of revenues pledged to pay the debt 28 service on the bonds shall be kept separately from other moneys of the dis- 29 trict. 30 (7) No holder of revenue bonds issued pursuant to this chapter may compel 31 any exercise of the taxing power of the district, county or city to pay the 32 bonds or the interest on the bonds. Revenue bonds issued pursuant to this 33 chapter are not a debt of the state or any political subdivision thereof, 34 including any county or city in which the district is located, nor are they 35 the debt of the district, other than with respect to the revenue pledged to 36 the payment of the bonds. The payment of revenue bonds is not enforceable out 37 of any money other than the revenue pledged to the payment of the bonds. 38 (8) Subject to the provisions of this section, a district may issue reve- 39 nue bonds at such times and in such amounts as the district deems appropriate 40 to carry out a project in phases. 41 (9) The district may issue and sell refunding bonds to refund revenue 42 bonds of the district authorized by this section. The principal amount of the 43 refunding bonds may be more or less than the principal amount of the bonds 44 being refunded, provided the proceeds of the refunding bonds are used only for 45 refunding purposes and payment of the costs thereof, and the total obligation 46 of the district is not increased, that is, if the amount of the refunding 47 bonds is more than the principal amount of the bonds being refunded, issuance 48 of the refunding bonds will result in a net present value savings to the dis- 49 trict. No election shall be required in connection with the issuance and sale 50 of such refunding bonds. Refunding bonds issued pursuant to this section 51 shall have a final maturity date no later than the final maturity date of the 52 bonds being refunded. 53 50-3111. TERMS OF BONDS. For any bonds issued under this chapter, the 54 district board shall prescribe the denominations of the bonds, the principal 15 1 amount of each issue and the form of the bonds and shall establish the maturi- 2 ties, which shall not exceed thirty (30) years, interest payment dates and 3 interest rates, whether fixed or variable, not exceeding the maximum rate 4 stated in the notice of the election or the resolution of the district board. 5 The bonds, up to the aggregate authorized principal amount thereof, may be 6 issued in whole or divided into series, and by supplementary resolution 7 adopted from time to time by the district board, the district may issue any 8 remaining principal amount of the bonds in one (1) or more subsequent divi- 9 sions. No election shall be required in connection with the issuance of any 10 remaining principal amount of the bonds in a subsequent division. The bonds 11 may be sold by competitive bid or negotiated sale for public or private offer- 12 ing at, below or above par. The proceeds of the bonds shall be deposited with 13 the treasurer, or with a trustee or agent designated by the district board, to 14 the credit of the district to be withdrawn for the purposes provided by this 15 chapter. Pending that use, the proceeds may be invested as determined by the 16 district board. The bonds shall be made payable as to both principal and 17 interest solely from revenues of the district, and shall specify the revenues 18 pledged for such purposes, and shall contain such other terms, conditions, 19 covenants and agreements as the district board deems proper. The bonds may be 20 payable from any combination of taxes or revenues of the types described in 21 sections 50-3108, 50-3109 and 50-3110, Idaho Code. 22 50-3112. NOTICE AND CONDUCT OF ELECTION. (1) Any election pursuant to 23 this chapter shall be a nonpartisan election, and in regard to election dates, 24 shall be held in compliance with section 34-106, Idaho Code, or section 25 50-429, Idaho Code. Except as otherwise specifically set forth in this sec- 26 tion, the district board shall cause the election to be held and conducted in 27 the same manner prescribed by law for the holding of general elections in this 28 state, including chapter 14, title 34, Idaho Code, and shall call the election 29 by posting notices in three (3) public places within the boundaries of the 30 district not less than thirty (30) days before the election. Notice shall also 31 be published twice, the first time not less than twelve (12) days prior to the 32 election and the second time not less than five (5) days prior to the elec- 33 tion, in a newspaper of general circulation in each county or city in which 34 the proposed district is located. A copy of such notice shall also be mailed 35 to each district resident and each owner of real property in the district if 36 known or such owner's agent if known, addressed to such person at his or her 37 post office address if known or, if unknown, to a post office in the county or 38 city where the district is located. Ownership of real property shall be 39 determined as of the date of the adoption of the resolution ordering the hear- 40 ing. The notice shall state: 41 (a) The place of holding the election; 42 (b) Subject to section 34-1409, Idaho Code, the hours during the day in 43 which the polls will be open; 44 (c) If the election is a bond election, whether the bonds are general 45 obligation bonds or revenue bonds, the total principal amount of bonds to 46 be authorized, whether the bonds will be issued in series, the maximum 47 rate of interest to be paid on the bonds and the maximum term of the 48 bonds, not exceeding thirty (30) years; 49 (d) If the election is an election to change or eliminate an existing 50 tax, the maximum tax amount to be imposed as a result of the change or 51 elimination; 52 (e) The purposes for which property taxes levied and revenues raised will 53 be used, including a description of the community infrastructure to be 54 financed with tax revenues, district revenues or bond proceeds; 16 1 (f) That the imposition of property taxes will result in a lien for the 2 payment thereof on real property within the district; and 3 (g) That a general plan is on file with the county clerk of each county 4 in which the district is located. 5 (2) The district board shall determine the date of the election and the 6 polling place or places for the election. The district board may establish, 7 change, and consolidate election precincts within the district, as it deems 8 necessary and appropriate, and shall define precinct boundaries. 9 (3) Subject to sections 50-3102(10) and 50-3102(13), Idaho Code, the cur- 10 rent property rolls for the district and current voter lists in effect at the 11 time that the election has begun shall be used to determine the qualified 12 electors. If the district includes land lying partly in and partly out of any 13 precinct, the voter lists may contain the names of all electors in the pre- 14 cinct, and the precinct boards at those precincts shall require that a pro- 15 spective elector execute an affidavit stating that the elector is also a qual- 16 ified elector. 17 (4) If the district is to be located within two (2) or more counties 18 and/or cities, the election shall be held on the same day in each jurisdic- 19 tion. 20 (5) The ballot material provided to each voter shall include: 21 (a) For an election concerning the issuance of bonds, an impartial 22 description of the bonds to be issued and an impartial description of the 23 property taxes to be imposed; the method of apportionment, collection and 24 enforcement and other details sufficient to enable each qualified elector 25 to reasonably estimate the amount of tax he or she will be obligated to 26 pay; and a statement that the issuance of the bonds and the imposition of 27 property taxes is for the provision of certain, but not necessarily all, 28 community infrastructure that may be needed or desirable within the dis- 29 trict, and that other taxes or assessments by other governmental entities 30 may be presented for approval by qualified electors; and 31 (b) For an election to change an existing maximum tax or eliminate an 32 existing tax, an impartial description of the change or elimination. 33 (6) Within ten (10) days after an election, the district board shall meet 34 and canvass the returns, and declare the results thereof. At least a two- 35 thirds (2/3) majority of the votes cast at the election shall be required for 36 issuing bonds or changing an existing tax. The canvass may be continued for an 37 additional period not to exceed thirty (30) days at the election of the dis- 38 trict board for the purpose of completing the canvass. Failure of a required 39 majority to vote in favor of the matter submitted shall not prejudice the sub- 40 mission of the same or similar matters at a later election. The canvass of any 41 general obligation bond election shall be filed and recorded in each county in 42 which the district is located. 43 (7) In any election held pursuant to this chapter, every voter may vote 44 at any election held pursuant to this chapter, but shall be entitled to cast 45 votes, as follows: (i) each resident qualified elector shall be entitled to 46 one (1) vote; and (ii) each owner qualified elector shall be entitled to one 47 (1) vote. An owner qualified elector shall not be entitled to an additional 48 vote as a result of also being a resident of the district. When record title 49 is held in more than one (1) name, the owners shall file with the clerk of the 50 district at or prior to the election a designation in writing, of which one of 51 the owners shall be deemed the owner for purposes of voting. 52 (8) In conducting an election, the polling official may require evidence 53 of ownership of property and designation of the power to exercise the vote of 54 any owner consistent with the provisions of this section and section 55 50-3102(10), Idaho Code. 17 1 50-3113. COST OF ADMINISTRATION. Each year, prior to the time for the 2 certification required under section 50-3114, Idaho Code, the district board 3 may levy a tax upon all taxable real property within the district of up to 4 one-hundredth of one percent (.01%) of the market value for assessment pur- 5 poses on all taxable real property within the district, to be used only to 6 reimburse or defray the administrative expenses of the district pursuant to a 7 district development agreement. No election shall be required. The levy shall 8 be made by resolution entered upon the minutes of the district board, and it 9 shall be the duty of the clerk of the district, immediately after entry of the 10 resolution in the minutes, to transmit to the board of county commissioners in 11 each county in which the district is located, the certification required under 12 section 50-3114, Idaho Code. Such tax shall then be collected and accounted 13 for at the time and in the form and manner as other taxes are collected and 14 accounted for under the laws of this state. 15 50-3114. ANNUAL FINANCIAL STATEMENTS AND ESTIMATES -- ANNUAL BUDGET -- 16 CERTIFICATION. (1) When levying property taxes or imposing special assess- 17 ments, and prior to certification of same to the county commissioners, the 18 district board shall make annual statements and estimates of the administra- 19 tive expenses of the district, the costs of community infrastructure to be 20 financed by property taxes and special assessments and the amount of all other 21 expenditures for community infrastructure proposed to be paid from property 22 taxes and special assessments and of the amount to be raised to pay general 23 obligation bonds and special assessment bonds of the district, all of which 24 shall be provided for by the levy, imposition and collection of property taxes 25 and special assessments. The annual estimates prepared by the district board 26 shall include an amount determined by the district board, in consultation with 27 the county tax collector, to defray the costs imposed upon the county tax 28 collector's office for any additional administrative services that will be 29 required in the collection of and accounting for such district property taxes 30 and special assessments. Such additional costs shall be for those services not 31 otherwise included in the general tax collection and accounting services 32 already provided by the county tax collector's office and otherwise paid for 33 by property tax revenues, and shall be reasonably related to, but shall not 34 exceed, the actual cost of the additional administrative services provided. 35 The district board shall file the annual statements and estimates with the 36 district clerk and, not later than the time required by section 63-802A, Idaho 37 Code, shall set and notify the county clerk of the date and location set for 38 the annual budget hearing of the district. The district board shall publish a 39 notice of the filing of the estimate, shall hold a public hearing on the por- 40 tion of the estimate not relating to debt service on general obligation bonds 41 and special assessment bonds and shall adopt a budget. Notice of the budget 42 hearing shall be posted at least ten (10) days prior to the date of said meet- 43 ing in at least one (1) conspicuous place within the district to be determined 44 by the district board; a copy of the notice shall also be published in a news- 45 paper of general circulation in the county or city in which the proposed dis- 46 trict is located, in one (1) issue thereof, during such ten (10) day period. 47 The place, hour and day of the hearing shall be specified in said notice, as 48 well as the place where the budget may be examined prior to the hearing. A 49 full and complete copy of the proposed budget shall be published with and as a 50 part of the publication of the notice of hearing. The budget shall be avail- 51 able for public inspection from and after the date of the posting of notices 52 of hearing as in this section provided, at such place and during such business 53 hours as the district board may direct. A quorum of the district board shall 54 attend the hearing and explain the proposed budget and hear any and all objec- 18 1 tions to the proposed budget. The district board at the time of the certifica- 2 tion required under subsection (2) of this section shall file with the board 3 of county commissioners in each county in which the district is located a cer- 4 tified copy of the annual budget as previously prepared, approved and adopted. 5 (2) The district board, having determined the total amount required from 6 property taxes and special assessments to raise the amount of money fixed by 7 the annual budget, including the amount of money needed to satisfy annual bond 8 payments, shall cause the amount of money so determined to be certified in 9 dollars to the board of county commissioners in each county in which the dis- 10 trict is located not later than the time required for certification under sec- 11 tion 63-803, Idaho Code. Said certification shall list separately each tax 12 levy and special assessment if more than one (1), and the purpose of each 13 thereof, and shall otherwise comply with the requirements of section 63-803, 14 Idaho Code. 15 (3) Following such certification to the county commissioners, district 16 property taxes and special assessments shall then be collected and accounted 17 for at the time and in the form and manner as other taxes are collected and 18 accounted for under the laws of this state. Except as specifically provided 19 otherwise in this chapter, all statutes of this state relating to the levy, 20 imposition, collection, settlement and payment of property taxes, including 21 the collection of delinquent taxes and sale of property for nonpayment of 22 taxes and special assessments, apply to district property taxes and special 23 assessments. 24 50-3115. DISCLOSURE. (1) The district board shall record with the county 25 clerk in each county in which the district is located, upon the records of 26 each parcel of real property within the district that will be encumbered with 27 any future general obligation bond or special assessment bond repayment lia- 28 bility, a notice setting forth: 29 (a) The current obligation of a property owner within the district with 30 respect to any bond repayment liability; 31 (b) That the obligation to retire the bonds will be the responsibility of 32 any property owner in the district through the payment of real property 33 taxes and special assessments collected by the county treasurer in addi- 34 tion to all other property tax payments; 35 (c) The estimated maximum tax or special assessment rate upon the parcel 36 for bond repayment; 37 (d) Whether the tax or special assessment rate is to be maintained at any 38 level by means of any developer agreement with the district; and 39 (e) That in the event of the failure to maintain the tax rate, the tax 40 rate on a parcel will increase, as needed, to provide for bond repayment. 41 (2) Such notice may be separately recorded or included in a recorded dis- 42 trict development agreement. The governing body, in its resolution approving 43 formation of the district, shall require that a form disclosure, consistent 44 with the foregoing, be signed and acknowledged by any purchaser of land within 45 the district prior to purchase. The form disclosure shall be entitled "CID 46 TAX AND SPECIAL ASSESSMENT DISCLOSURE NOTICE" and shall specifically and con- 47 spicuously set forth "YOU ARE PURCHASING REAL PROPERTY THAT IS INCLUDED WITHIN 48 THE BOUNDARIES OF A COMMUNITY INFRASTRUCTURE DISTRICT." Further, the notice 49 shall set forth such other notifications as determined appropriate by the dis- 50 trict board that shall fully and fairly disclose the property owner's general 51 obligation bond and special assessment repayment liability with examples pro- 52 vided. 53 50-3116. DISSOLUTION OF DISTRICT. (1) The district shall be dissolved by 19 1 the district board by a resolution of the district board upon a determination 2 that each of the following conditions exist: 3 (a) All community infrastructure owned by the district has been, or pro- 4 vision has been made for all community infrastructure to be conveyed, 5 either to the state of Idaho or to a political subdivision thereof, which 6 shall include a county or city in which the district is located, or to a 7 public district or other authority authorized by the laws of this state to 8 own such community infrastructure; 9 (b) The district has no outstanding bond obligations; and 10 (c) All obligations of the district pursuant to any contracts or agree- 11 ments entered into by the district have been satisfied. 12 (2) All property within the district that is subject to the lien of dis- 13 trict taxes or special assessments shall remain subject to the lien for the 14 payment of general obligation bonds or special assessment bonds, as the case 15 may be, notwithstanding dissolution of the district. The district shall not be 16 dissolved if any revenue bonds of the district remain outstanding unless an 17 amount of money sufficient, together with investment income thereon, to make 18 all payments due on the revenue bonds, either at maturity or prior redemption, 19 has been deposited with a trustee or escrow agent and pledged to the payment 20 and redemption of the bonds. The district may continue to operate after disso- 21 lution only as needed to collect money and make payments on any outstanding 22 bonds. 23 (3) The district shall send a notice of dissolution to the governing body 24 or bodies, the county assessor of each county in which the district is 25 located, and the state tax commission. The district shall also record a notice 26 of dissolution with the county clerk in each county in which the district is 27 located. 28 (4) Subject to the foregoing provisions of this section, if upon dissolu- 29 tion of the district there remain any excess moneys of the district, the dis- 30 trict board shall, by resolution, cause the same to be fairly distributed 31 among the current taxpayers of the district. If, as determined in the sole 32 discretion of the district board, the amount to be distributed is de minimis, 33 or the administrative cost of distribution is prohibitive, such remaining 34 moneys shall be paid to the county treasurer of each county in which the dis- 35 trict is located to be distributed among the cities and counties in which the 36 district is located in proportion to which said cities and counties receive 37 property tax revenues generally. 38 50-3117. EXEMPTIONS AND EXCLUSIONS. (1) All public utilities, as defined 39 in section 61-129, Idaho Code, shall be exempt from taxation under this chap- 40 ter. 41 (2) No railroad right-of-way may be included within a community infra- 42 structure district without the consent of the railroad. 43 (3) No personal property within a community infrastructure district shall 44 be subject to taxation under this chapter. 45 50-3118. LIMITATION OF LIABILITY. Neither any member of the district 46 board nor any person acting on behalf of the district, while acting within the 47 scope of his or her authority, shall be subject to any personal liability for 48 any action taken or omitted within that scope of authority. 49 50-3119. APPEAL -- EXCLUSIVE REMEDY -- CONCLUSIVENESS. Any person in 50 interest who feels aggrieved by the final decision of a governing body or a 51 district board in the formation or governing of a district, including, with 52 respect to any tax levy, special assessment or bond, may, within thirty (30) 20 1 days after such final decision, seek judicial review by filing a written 2 notice of appeal with the clerk of the district and with the clerk of the dis- 3 trict court for the judicial district in which a majority of the land area of 4 the district is located. After said thirty (30) day period has run, no one 5 shall have any cause or right of action to contest the legality, formality or 6 regularity of said decision for any reason whatsoever and, thereafter, said 7 decision shall be considered valid and uncontestable and the validity, legal- 8 ity and regularity of any such decision shall be conclusively presumed. With 9 regard to the foregoing, if the question of validity of any bonds issued pur- 10 suant to this chapter is not raised on appeal as aforesaid, the authority to 11 issue the bonds, the legality thereof and of the levies or assessments neces- 12 sary to pay the same shall be conclusively presumed and no court shall there- 13 after have authority to inquire into such matters. 14 50-3120. CONSISTENCY WITH STATE LAW. (1) A community infrastructure dis- 15 trict shall develop community infrastructure consistent with the general plan 16 and in compliance with the requirements of chapter 13, title 50, Idaho Code, 17 and chapter 65, title 67, Idaho Code. 18 (2) A community infrastructure district shall be deemed to be of the same 19 nature and afforded the same treatment as a local improvement district for 20 purposes of application of section 58-336, Idaho Code, relating to lands bene- 21 fitting by such district; section 67-8209, Idaho Code, authorizing development 22 impact fee credits; and section 67-8214, Idaho Code, providing that other 23 powers and rights of governmental entities are not affected. 24 50-3121. SEVERABILITY. The provisions of this chapter are hereby declared 25 to be severable and if any provision or the application of the provision to 26 any person or circumstance is declared invalid for any reason, such declara- 27 tion shall not affect the validity of remaining portions of this chapter.
STATEMENT OF PURPOSE
RS 18135C2
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 IMPACT
This legislation will have no impact on the general fund.
Contact:
Rep. Dennis Lake Sen. Brent Hill
Rep. Ken Roberts Sen. Brad Little
Rep. Jim Clark Sen. John McGee
Rep. Leon Smith Sen. Stan Bastain
Rep. Gary Collins Sen. Leland Heinrich
Rep. Dell Raybould Sen. Tim Corder
Rep. James Ruchti Sen. Mike Jorgensen
Sen. David Langhorst
STATEMENT OF PURPOSE/FISCAL NOTE H 680