SB 0891 - Fiscal Note

Fiscal Note - SB 0891 - Neighborhood Improve. Dist./Procedure/Financing/Maintenance

L.R. NO.  2587-06
BILL NO.  SB 891
SUBJECT:  Cities and Counties: Neighborhood Improvement Districts
TYPE:     Original
DATE:     February 13, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999


Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999


Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government*               $0                  $0                $0

*This proposal is permissive

                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Treasurer (STO) assume no fiscal impact to
their office.

Officials from the Department of Economic Development (DED) assume no fiscal
impact.

Officials from the Missouri State Tax Commission (TAX) assume no fiscal
impact.

Officials from Jefferson City and Poplar Bluff assume no fiscal impact.

Oversight assumes that this proposal could result in some interest savings to
those local governments which do not currently bid bond issues.  Oversight
assumes this proposal is permissive and that there would be no fiscal impact
without action by the local governing body with voter approval.  Oversight
assumes no state or local fiscal impact.

FISCAL IMPACT - State Government   FY 1997   FY 1998   FY 1999

                                        $0        $0        $0

FISCAL IMPACT  - Local Government  FY 1997   FY 1998   FY 1999
                                  (10 Mo.)

                                        $0        $0        $0

DESCRIPTION

This act makes the following changes to the Neighborhood Improvement District
(NID) law:
1.  Requires the bonds issued to pay for the cost of the improvement to be
competitively bid.
2.  Allows for a levy against property in the district to pay maintenance
costs prior to the retirement of the bonds which were issued for the original
improvements.  Currently, maintenance costs may only be recouped through an
annual assessment after the bonds are retired.
3.  Requires the petition to form an NID to be signed by at least 2/3 of the
owners of record and 2/3 of the owners of property by area in the proposed
NID.  Currently, the owners of record of at least 2/3 by area must sign the
petition.
4.  The total amount of the bonded indebtedness is limited to 20% of the
assessed valuation of the proposed NID.  Currently the limit is 10% of the
assessed valuation of the city or county.
5.  Allows the option to finance an NID through an annual levy against the
assessed valuation of the property in the NID.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Missouri State Treasurer
Jefferson City - City Manager
Poplar bluff - City Manager



NOT RESPONDING: St. Louis County, St. Louis City, Kansas City, Jackson
County, Callaway County, Cole County, Boone County, Pettis County, Clay
County, Platte County, Taney County, Stone County, Marion County, and the
Cities of: Fulton, Columbia, Independence, Liberty, Springfield, Mexico,
Florissant, and Hazelwood.