To repeal section 67.475, RSMo 1994, and sections 67.455 and 67.457, RSMo Supp. 1995, relating to neighborhood improvement districts, and to enact in lieu thereof five new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Section 67.475, RSMo 1994, and sections 67.455 and 67.457, RSMo Supp. 1995, are repealed and five new sections enacted in lieu thereof, to be known as sections 67.455, 67.457, 67.475, 1 and 2, to read as follows:

67.455. 1. As a complete alternative to all other methods provided by law or charter, the governing body of any city or county may make, or cause to be made, improvements which confer a benefit upon property within a neighborhood improvement district pursuant to sections 67.453 to 67.475. The governing body of such city or county may incur indebtedness and issue temporary notes and general obligation bonds of such city or county pursuant to sections 67.453 to 67.475 to pay for all or part of the cost of such improvements. An improvement may be combined with one or more other improvements for the purpose of issuing a single series of general obligation bonds to pay all or part of the cost of such improvements, but separate funds or accounts shall be established within the records of the city or county for each improvement as provided in section 67.473. Such city or county shall assess special assessments on the property deemed by the governing body to be benefited by each such improvement pursuant to section 67.457. The city or county shall use the moneys collected from such special assessments to reimburse the city or county for all amounts paid or to be paid by it as principal of and interest on its general obligation bonds issued for such improvements.

2. The bonds issued pursuant to subsection 1 of this section shall be based on competitive bids. The neighborhood improvement district shall advertise for bids on bonds in at least one newspaper of general circulation in the area served by the neighborhood improvement district at least ten days before bids for the bonds are to be opened. All bids shall be mailed or delivered to the city or county clerk s office so as to reach it before the time set for opening bids. The bond issuance shall be let to the lowest and best bidder. The city or county governing body may reject the bids and advertise for new bids.

67.457. 1. To establish a neighborhood improvement district, the governing body of any city or county shall comply with either of the procedures described in subsection 2 or 3 of this section.

2. The governing body of any city or county proposing to create a neighborhood improvement district may by resolution submit the question of creating such district to all qualified voters residing within such district at a general or special election called for that purpose. Such resolution shall set forth the project name for the proposed improvement, the general nature of the proposed improvement, the estimated cost of such improvement, the boundaries of the proposed neighborhood improvement district to be assessed, and the proposed method or methods of assessment of real property within the district, including any provision for the annual assessment of maintenance costs of the improvement in each year after the bonds issued for the original improvement are paid in full, or if approved as a separate question on the ballot, the provision for the annual assessment of maintenance costs of the improvement prior to retirement of the bonds issued for the original improvements. The governing body of the city or county may create a neighborhood improvement district when the question of creating such district has been approved by the vote of the percentage of electors within such district voting thereon that is equal to the percentage of voter approval required for the issuance of general obligation bonds of such city or county under article VI, section 26 of the constitution of this state. The notice of election containing the question of creating a neighborhood improvement district shall contain the project name for the proposed improvement, the general nature of the proposed improvement, the estimated cost of such improvement, the boundaries of the proposed neighborhood improvement district to be assessed, the proposed method or methods of assessment of real property within the district, including any provision for the annual assessment of maintenance costs of the improvement, and a statement that the final cost of such improvement assessed against real property within the district and the amount of general obligation bonds issued therefor shall not exceed the estimated cost of such improvement, as stated in such notice, by more than twenty-five percent. The ballot upon which the question of creating a neighborhood improvement district is submitted to the qualified voters residing within the proposed district shall contain a question in substantially the following form:

Shall ............ (name of city or county) be authorized to create a neighborhood improvement district proposed for the ............. (project name for the proposed improvement) and incur indebtedness and issue general obligation bonds to pay for all or part of the cost of public improvements within such district, the cost of all indebtedness so incurred to be assessed by the governing body of the ............. (city or county) on the real property benefited by such improvements for a period of ...... years, and, if included in the resolution, an assessment in each year thereafter with the proceeds thereof used solely for maintenance of the improvement? As a separate question on the same ballot, if included in the resolution, a maintenance tax levy question shall be submitted in substantially the following form:

Shall ........... (name of city or county) be authorized to collect a tax, not to exceed ten cents per one hundred dollars of assessed valuation, and in addition to any ....... (special assessment or levy) to retire any bonds issued, to be used solely for maintenance costs of the improvement?

3. As an alternative to the procedure described in subsection 2 of this section, the governing body of a city or county may create a neighborhood improvement district when a proper petition has been signed by at least two-thirds of the owners of record of at least two-thirds by area of all real property located within such proposed district. The petition, in order to become effective, shall be filed with the city clerk or county clerk. A proper petition for the creation of a neighborhood improvement district shall set forth the project name for the proposed improvement, the general nature of the proposed improvement, the estimated cost of such improvement, the boundaries of the proposed neighborhood improvement district to be assessed, the proposed method or methods of assessment of real property within the district, including any provision for the annual assessment of maintenance costs of the improvement in each year after the bonds issued for the original improvement are paid in full or any provision for the annual assessment of maintenance costs of the improvement prior to retirement of the bonds issued for the original improvement, a notice that the names of the signers may not be withdrawn later than seven days after the petition is filed with the city clerk or county clerk, and a notice that the final cost of such improvement assessed against real property within the district and the amount of general obligation bonds issued therefor shall not exceed the estimated cost of such improvement, as stated in such petition, by more than twenty-five percent.

4. Upon receiving the requisite voter approval at an election or upon the filing of a proper petition with the city clerk or county clerk, the governing body may by resolution or ordinance determine the advisability of the improvement and may order that the district be established and that preliminary plans and specifications for the improvement be made. Such resolution or ordinance shall state and make findings as to the project name for the proposed improvement, the nature of the improvement, the estimated cost of such improvement, the boundaries of the neighborhood improvement district to be assessed, the proposed method or methods of assessment of real property within the district, including any provision for the annual assessment of maintenance costs of the improvement [in each year after the bonds issued for the original improvement are paid in full], and shall also state that the final cost of such improvement assessed against the real property within the neighborhood improvement district and the amount of general obligation bonds issued therefor shall not, without a new election or petition, exceed the estimated cost of such improvement by more than twenty-five percent.

5. The boundaries of the proposed district shall be described by metes and bounds, streets or other sufficiently specific description. The area of the neighborhood improvement district finally determined by the governing body of the city or county to be assessed may be less than, but shall not exceed, the total area comprising such district.

6. In any neighborhood improvement district organized prior to August 28, 1994, an assessment may be levied and collected after the original period approved for assessment of property within the district has expired, with the proceeds thereof used solely for maintenance of the improvement, if the residents of the neighborhood improvement district either vote to assess real property within the district for the maintenance costs in the manner prescribed in subsection 2 of this section or if two-thirds of the owners of two-thirds of the area of all real property located within the district sign a petition for such purpose in the same manner as prescribed in subsection 3 of this section.

67.475. The total amount of city or county general obligation bond indebtedness incurred for improvements under sections 67.453 to 67.475, including temporary notes issued pursuant to sections 67.453 to 67.475, shall not exceed [ten] twenty percent of the assessed valuation of all taxable [tangible] real property, as shown by the last completed property assessment for state or local purposes, within the [city or county] proposed neighborhood improvement district. Any city with a population of three hundred fifty thousand or more inhabitants shall appoint a citizen advisory committee composed of members of each council districts on proposed neighborhood improvement district.

Section 1. To finance a neighborhood improvement district, the governing body of any city or county shall comply with either the procedures in sections 67.459 to 67.467 or the procedure in section 2.

Section 2. As an alternative method of financing to that established in sections 67.459 to 67.467, RSMo, the governing body of any city or county shall provide for the collection of an annual tax sufficient to pay the interest and principal of the bonds issued pursuant to section 67.455, RSMo, as they fall due, and to retire them within the time limit specified in the contract, not to exceed twenty years. Upon approval of the voters of the district, the governing body of any city or county may provide for the collection of an annual tax, not to exceed ten cents per one hundred dollars of assessed value, which shall only be used to offset any maintenance costs of the improvement. The governing body may assess such maintenance tax before the bonds issued for the original improvement are paid in full, and may forward any remaining unobligated balance to succeeding years.