TITLE 50

MUNICIPAL CORPORATIONS

CHAPTER 29

LOCAL ECONOMIC DEVELOPMENT ACT

50-2906.  Public hearing and ordinance required — special rules for certain taxing districts. (1) To adopt a new urban renewal plan or create a competitively disadvantaged border community area containing a revenue allocation financing provision, the local governing body of an authorized municipality must enact an ordinance in accordance with chapter 9, title 50, Idaho Code, and section 50-2008, Idaho Code. To modify an existing urban renewal plan, to add or change a revenue allocation, an authorized municipality must enact an ordinance in accordance with chapter 9, title 50, Idaho Code, and conduct a public hearing as provided in section 50-2008(c), Idaho Code. No urban renewal project, plan, competitively disadvantaged border community area or modification thereto, or revenue allocation financial provision shall be held ineffective for failure to comply with the requirements of this section if compliance with the section is substantial and in good faith and administrative authority of both the local governing body and urban renewal agency does not extend beyond the municipal boundary of the authorized municipality. Urban renewal plans and revenue allocation financing provisions may be held ineffective if an urban renewal area or revenue allocation area extends outside the municipal boundary of an authorized municipality and a transfer of powers ordinance has not been adopted by the cooperating county.

(2)  A revenue allocation financing provision adopted in accordance with this chapter shall be effective retroactively to January 1 of the year in which the local governing body of the authorized municipality enacts such ordinance.

(3)(a)  Prior to taking action on an ordinance to adopt a revenue allocation financing provision, the local governing body of an authorized municipality shall prepare a notice stating:

(i)   That an urban renewal plan or modification thereto or a competitively disadvantaged border community area has been proposed and is being considered for adoption, and that such plan or modification thereto or proposal to create a competitively disadvantaged border community area contains a revenue allocation financing provision that will cause property taxes resulting from any increases in equalized assessed valuation in excess of the equalized assessed valuation as shown on the base assessment roll to be allocated to the agency for urban renewal and competitively disadvantaged border community area purposes;

(ii)  That an agreement on the administration of a revenue allocation financing provision extending beyond the municipal boundary of the authorized municipality has been negotiated with the cooperating county having extraterritorial power and that the agreement has been formalized by a transfer of power ordinance adopted by that county; and

(iii) That a public hearing on such plan or modification will be held by the local governing body pursuant to section 50-2008(c), Idaho Code.

(b)  The notice shall also state the time, date, and place of the hearing. At least thirty (30) days but not more than sixty (60) days prior to the date set for final reading of the ordinance, the local governing body shall publish the notice in a newspaper of general circulation and transmit the notice, together with a copy of the plan and recommendation of the urban renewal agency or the municipality which by ordinance created the competitively disadvantaged border community area, to the governing body of each taxing district which levies taxes upon any taxable property in the revenue allocation area and which would be affected by the revenue allocation financing provision of the urban renewal plan proposed to be approved by the local governing body.

(4)  No fire protection district or ambulance service district shall be subject to the financing provisions of an urban renewal revenue allocation area, or any modification thereof, created or modified after July 1, 2025, unless the local governing body of the authorized municipality proposing to create or modify such financing provision requests such district to consent to be subject to the financing provision and the district receiving such request consents. To request such a district to consent, the local governing body of an authorized municipality shall send a request to the district at the same time it sends notice to taxing districts of its intent to create or modify an urban renewal plan that includes a revenue allocation financing provision pursuant to subsection (3) of this section. If the governing board of the district receiving a request to consent agrees with the request, it shall adopt a resolution providing that such district shall be subject to the financing provisions of the proposed urban renewal area plan or proposed urban renewal area plan modification that was identified in the request, and shall thereafter be subject to such financing provision. The consenting district shall, within ten (10) business days, file a copy of the resolution with the local governing body of the authorized municipality. Upon receipt of the district’s resolution consenting to be subject to the financing provision, the governing body of the municipality shall transmit a copy of such resolution to the county clerk and the state tax commission within ten (10) business days.

(5)(a)  Any fire protection district or ambulance service district may withdraw from being subject to an urban renewal revenue allocation financing provision under an urban renewal plan established by local governing body ordinance prior to July 1, 2025, if the urban renewal plan establishing the revenue allocation financing provision does not have any outstanding bonds, contractual obligations, or other indebtedness being funded by such revenue allocation financing provision greater than the amount of the revenue allocation proceeds that was attributable to the fire protection district or ambulance service district as of December 31 of the immediate prior tax year.

(b)  Any fire protection district or ambulance service district that seeks to withdraw shall:

(i)   By May 1 of the withdrawal year request an accounting from the county showing the amount of revenue allocation proceeds that was attributable to the fire protection district or ambulance service district as of December 31 of the immediate prior tax year. A copy of the accounting shall be simultaneously transmitted by the county to the requesting district and the agency within fifteen (15) days of receipt of the request from the district; and

(ii)  By June 1 of the withdrawal year adopt a resolution expressing an intent to withdraw and transmit the same to the urban renewal agency that governs the urban renewal plan and revenue allocation financing provision that the district seeks to withdraw from.

(c)  The agency shall schedule a special meeting within ten (10) business days of receipt of the fire protection district’s or ambulance service district’s resolution approving the withdrawal and the accounting from the county to accept the request to withdraw by agency resolution, or to deny the request to withdraw in writing due to the existence of outstanding bonds, contractual obligations, or other indebtedness being funded by the district’s revenue allocation proceeds, and setting forth specific information about the indebtedness.

(d)  If the withdrawal is accepted, the urban renewal agency shall transmit a copy of the district resolution and the agency resolution to the county clerk, the county recorder, and the state tax commission no later than the fourth Monday of July. If the resolutions are received by the state tax commission and the county by the fourth Monday of July, then the levy rate for the next fiscal year will be calculated pursuant to section 50-2908(1)(g), Idaho Code, and any budget increases as set forth in sections 63-802 and 63-301A, Idaho Code. If the resolutions are transmitted to the county clerk, the county recorder, and the state tax commission after the fourth Monday of July, then the effect of the withdrawal will be the following tax year.

History:

[50-2906, added 1988, ch. 210, sec. 6, p. 397; am. 1994, ch. 381, sec. 4, p. 1227; am. 2000, ch. 162, sec. 1, p. 410; am. 2000, ch. 275, sec. 3, p. 897; am. 2025, ch. 300, sec. 5, p. 1263.]