Relating to community improvement districts.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section 1. 1. Sections 1 to 18 are known and may be cited as the "Community Improvement District Act".

     2. The following words and terms, as used in sections 1 to 18, mean:

     (1) "Act", sections 1 to 18;

     (2) "Approval" or "Approve", for purposes of elections under sections 1 to 18, a simple majority of those qualified voters voting in the election;

     (3) "Assessed value", the value of real property as reflected on the rolls of the county in which the property is located as of the last completed assessment;

     (4) "Blighted area", an area which:

     (a) By reason of the predominance of defective or inadequate street layout, insanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use; or

     (b) Has been declared blighted or found to be a blighted area pursuant to the Revised Statutes of Missouri, including but not limited to chapter 353, RSMo, the Real Property Tax Increment Allocation Redevelopment Act, sections 99.800 to 99.865, RSMo, or the Land Clearance for Redevelopment Authority Law, sections 99.300 to 99.715, RSMo;

     (5) "Board", if the district is a political subdivision the board of directors of the district, or if the district is a not-for-profit corporation the board of directors of such corporation;

     (6) "City", the municipality in which the district is located whether it be a city, town, or village;

     (7) "Director of revenue", the director of revenue of the state of Missouri;

     (8) "District", a community improvement district;

     (9) "Election Authority", the election authority having jurisdiction over the area in which the boundaries of the district are located pursuant to chapter 115, RSMo;

     (10) "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by a district to carry out any of its powers, duties or purposes or to refund outstanding obligations;

     (11) "Owner", for real property, the individual or individuals or entity or entities who own the fee of real property or their legally authorized representative; for business organizations and other entities, the owner shall be deemed to be the individual which is legally authorized to represent the entity in regard to the district;

     (12) "Per capita", shall mean that one head count shall be applied to each individual, entity or group of individuals and/or entities having fee ownership of real property within the district whether such individual, entity or group owns one or more parcels of real property in the district as joint tenants, tenants in common, tenants by the entirety or tenants in partnership;

     (13) "Petition", shall mean a petition to establish a district as it may be amended in accordance with the requirements of section 3;

     (14) "Qualified voters", for purposes of elections for approval of real property taxes, sales taxes or business license taxes, (a) registered voters; or (b) if no registered voters reside in the district, the owners of real property per capita located within the district per the county tax rolls for real property as of the thirtieth day prior to the date of the applicable election; and for purposes of the election of directors of the board, registered voters and owners of real property within the district per the county tax rolls for real property as of the thirtieth day prior to the date of the applicable election; and

     (15) "Registered voters", persons who reside within the district and who are qualified and register to vote pursuant to chapter 115, RSMo, pursuant to the records of the election authority as of the thirtieth day prior to the date of the applicable election.

     Section 2. 1. The governing body of any city may establish one or more districts within its boundaries in the manner provided in sections 1 to 18.

     2. The boundaries of the district must be contiguous.

     3. Each district shall be either a political subdivision of the state or a not-for-profit corporation organized pursuant to chapter 355, RSMo.

     4. If a proposed district is to be a not-for-profit corporation, such corporation must be organized and in good standing under the provisions of chapter 355, RSMo, at the time the petition for the proposed district is filed with the city clerk.

     5. The name of the district shall include "community improvement district" and if it is a not-for-profit corporation, it shall be the same as the name of the not-for-profit corporation.

     Section 3. 1. Upon receipt of a proper petition filed with its city clerk, the governing body of the city in which the proposed district is located shall hold a public hearing in accordance with section 4 and may adopt an ordinance to establish the proposed district.

     2. A petition is proper if, based on the tax rolls of the county clerk as of the time of filing the petition with the city clerk, it meets the following requirements:

     (1) It has been signed by owners collectively owning more than fifty percent by assessed value of real property within the boundaries of the proposed district;

     (2) It has been signed by more than fifty percent per capita of all owners of real property within the boundaries of the proposed district; and

     (3) It contains the following information:

     (a) The legal description of the proposed district, including a map illustrating the district boundaries;

     (b) The name of the proposed district;

     (c) A notice that the signatures of the signers may not be withdrawn later than seven days after the petition is filed with the city clerk;

     (d) A five year plan stating a description of the purposes of the proposed district, the services it will provide, the improvements it will make and an estimate of costs of these services and improvements to be incurred;

     (e) A statement as to whether the district will be a political subdivision or a not-for-profit corporation and if it is to be a not-for-profit corporation, the name of the not-for-profit corporation;

     (f) If the district is to be a political subdivision, a statement as to whether the district will be governed by a board elected by the district or whether the board will be appointed by the city, and, if the board is to be elected by the district, the names and terms of the initial board may be stated;

     (g) If the district is to be a political subdivision, the number of directors to serve on the board;

     (h) The total assessed value of all real property within the proposed district;

     (i) A statement as to whether the petitioners are seeking a determination that the proposed district, or any legally described portion thereof, is a blighted area;

     (j) The proposed length of time for the existence of the district;

     (k) The maximum rates of sales taxes, business license, and real property taxes that may be submitted to the qualified voters for approval;

     (l) The maximum rates of special assessments and respective methods of assessment that may be proposed by petition;

     (m) The limitations, if any, on the borrowing capacity of the district;

     (n) The limitations, if any, on the revenue generation of the district;

     (o) Other limitations, if any, on the powers of the district;

     (p) A request that the district be established; and

     (q) Any other items the petitioners deem appropriate; and

     (4) The signature block for each real property owner signing the petition must be in substantially the following form and contain the following information:

Name of owner:

Owner's telephone number and mailing address:

If signer is different from owner:...............................

Name of signer:

State basis of legal authority to sign:

Signer's telephone number and mailing address:

If owner is an individual, state if owner is single or married:

If owner is not an individual, state what type of entity:

Map and parcel number and assessed value of each tract of real property within the proposed district owned:

By executing this Petition, the undersigned represents and warrants that he or she is legally authorized to execute this Petition on behalf of the property owner named immediately above.

..........................                    ...................

Signature                                    Date

STATE OF MISSOURI     )

                    ) ss.

COUNTY OF ..........)

     Before me personally appeared ................., to me personally known to be the individual described in and who executed the foregoing instrument.

     WITNESS my hand and official seal this ................ day of ...., .......

                                   Notary Public

My Commission Expires:

.......................

     3. Upon receipt of a petition, the city clerk shall, within a reasonable time not to exceed ninety days after receipt of the petition, review and determine whether the petition substantially complies with the requirements of subsection 2 of this section. In the event the city clerk receives a petition which does not meet the requirements of subsection 2 of this section, the city clerk shall, within a reasonable time, return the petition to the submitting party by hand delivery, first class mail, postage prepaid, or other efficient means of return and shall specify which requirements have not been met.

     4. After the close of the public hearing required under subsection 1 of this section, the city may adopt an ordinance approving the petition and establishing the district as set forth in the petition subject to the authorities and limitations contained in the petition and may determine, if requested in the petition, whether the district, or any legally described portion thereof, constitutes a blighted area.

     5. Amendments to a petition may be made which do not change the proposed boundaries of the proposed district if an amended petition meeting the requirements of subsection 2 is filed with the city clerk at the following times and the following requirements have been met:

     (1) At any time prior to the close of the public hearing required under subsection 1 of this section, and notice of the contents of the amended petition is given at the public hearing;

     (2) At any time after the public hearing and prior to the adoption of an ordinance establishing the proposed district, and notice of the amendments to the petition is given by publishing the notice in a newspaper of general circulation within the city and by sending the notice via registered certified United States mail with a return receipt attached to the address of record of each owner of record of real property within the boundaries of the proposed district. Such notice shall be published and mailed not less than ten days prior to the adoption of the ordinance establishing the district;

     (3) At any time after the adoption of any ordinance establishing the district a public hearing on the amended petition is held and notice of the public hearing is given in the manner provided in section 4 and the governing body of the city in which the district is located adopts an ordinance approving the amended petition after the public hearing is held.

     6. Upon the creation of a district, the city clerk shall report in writing the creation of such district to the Missouri department of economic development.

     Section 4. 1. Within a reasonable time, not to exceed 45 days, after the receipt of the verified petition from the city clerk, the governing body shall hold or cause to be held a public hearing on the establishment of the proposed district and shall give notice of the public hearing in the manner provided in subsection 3 of this section. All reasonable protests, objections and endorsements shall be heard at the public hearing.

     2. The public hearing may be continued to another date without further notice other than a motion to be entered on the minutes fixing the date, time and place of the continuance of the public hearing.

     3. Notice of the public hearing shall be given by publication and mailing. Notice by publication shall be given by publication in a newspaper of general circulation within the city once a week for two consecutive weeks prior to the week of the public hearing. Notice by mail shall be given not less than 15 days prior to the public hearing by sending the notice via registered or certified United States mail with a return receipt attached to the address of record of each owner of record of real property within the boundaries of the proposed district. The published and mailed notices shall include the following information:

     (1) The date, time and place of the public hearing;

     (2) A statement that a petition for the establishment of a district has been filed with the city clerk;

     (3) The boundaries of the proposed district by street location, or other readily identifiable means if no street location exists; and a map illustrating the proposed boundaries;

     (4) A statement that a copy of the petition is available for review at the office of the city clerk during regular business hours; and

     (5) A statement that all interested persons will be given an opportunity to be heard at the public hearing.

     Section 5. 1. Upon the written request of any real property owner within the district, the governing body of the city may hold a public hearing for the removal of real property from a district and such real property may be removed from such district by city ordinance provided that:

     (1) The board consents to the removal of such property;

     (2) The district can meet its obligations without the revenues generated by or on the real property proposed to be removed; and

     (3) The public hearing is conducted in the same manner as required by section 4 with notice of the hearing given in the same manner as required by section 4 and such notice shall include:

     (a) The date, time and place of the public hearing;

     (b) The name of the district;

     (c) The boundaries by street location, or other readily identifiable means if no street location exists of the real property proposed to be removed from the district, and a map illustrating the boundaries of the existing district and the real property proposed to be removed; and

     (d) A statement that all interested persons will be given an opportunity to be heard at the public hearing.

     2. With the consent of the board, real property may be added to the district by city ordinance upon receipt of a proper petition and after a public hearing is held by the governing body of the city on the addition of the real property in the manner provided in section 4. Notice of the public hearing shall be given by publication and mailed to the owners of real property within the boundaries of the district and the area proposed to be added in the manner provided in section 4. The notice shall include the following information:

     (1) The time, date and place of the public hearing;

     (2) The name of the proposed or established district;

     (3) The boundaries by street location, or other readily identifiable means if no street location exists, of the real property to be added to the district, and a map showing the boundaries of the existing district and the real property proposed to be added to the district;

     (4) A statement that a copy of the petition is available for review during regular business hours at the office of the city clerk; and

     (5) A statement that all interested persons shall be given an opportunity to be heard at the public hearing.

For the purposes of this section, a proper petition is one which meets the requirements of section 3, which requirements shall only apply as to the real property proposed to be added.

     3. A public hearing may be held to amend the petition and notice of such amendments given simultaneously with a public hearing to alter the district boundaries.

     Section 6. 1. If a district is a political subdivision, the election and qualification of members to the district's board of directors shall be in accordance with this section. If a district is a not-for-profit corporation, the election and qualification of members to its board of directors shall be in accordance with chapter 355, RSMo.

     2. The district shall be governed by a board consisting of at least five but not more than thirty directors. Each director shall, during his/her entire term, be:

     (1) At least eighteen years of age;

     (2) Either be:

     (a) An owner, as defined herein, of real property or of a business operating within the district; or

     (b) A registered voter residing within the district; and

     (3) Any other qualifications set forth in the petition establishing the district.

     3. If the district is a political subdivision, the board shall be elected or appointed, as provided in the petition.

     4. If the board is to be elected, the procedure for election shall be as follows:

     (1) The city clerk shall specify a date on which the election shall occur which date shall be a Tuesday and shall not be earlier than the tenth Tuesday, and shall not be later than the fifteen Tuesday, after the effective date of the ordinance adopted to establish the district.

     (2) The election shall be conducted in the same manner as provided for in section 18, provided that the published notice of the election shall contain the information required by section 18 for published notices, except that it shall state that the purpose of the election is for the election of directors, in lieu of the information related to taxes.

     (3) Candidates shall pay the sum of five dollars as a filing fee and shall file not later than the second Tuesday after the effective date of the ordinance establishing the district with the city clerk of the county in which the district is located a statement under oath that she/he possesses all of the qualifications set out in this section for a director. Thereafter, such candidate shall have his/her name placed on the ballot as a candidate for director.

     (4) The director or directors to be elected shall be elected at large. The person receiving the most votes shall be elected to the position having the longest term; the person receiving the second highest votes shall be elected to the position having the next longest term, and so forth. Of the initial directors, one-half shall serve for a two-year term, one-half shall serve for a four year term and if an odd number of directors are elected, the director receiving the least number of votes shall serve for a two-year term, until such director's successor is elected.

     (5) Successor directors shall be elected in the same manner as the initial directors. The date of the election of successor directors shall be specified by the city clerk which date shall be a Tuesday and shall not be later than the date of the expiration of the stated term of the expiring director. Each successor director shall serve a four-year term until such director's successor is elected. In the event of a vacancy on the board of directors, the remaining directors shall elect an interim director to fill the vacancy for the unexpired term.

     5. If the petition provides that the board is to be appointed by the city, such appointments shall be made by the chief elected officer of the city with the consent of the governing body of the city. Of the initial appointed directors, one-half of the directors shall be appointed to serve for a two-year term and the remaining one-half shall be appointed to serve for a four-year term until such director's successor is appointed; provided, however, if there is an odd number of directors, the last person appointed shall serve a two-year term. Successor directors shall be appointed in the same manner as the initial directors and shall serve for a term of four years.

     6. If the petition states the names of the initial directors, those directors shall serve for the terms specified in the petition and successor directors shall be determined either by the above listed election process or appointment process as provided in the petition.

     7. Any director may be removed for cause by a two-thirds affirmative vote of the directors of the board. Written notice of the proposed removal shall be given to all directors prior to action thereon.

     8. The board is authorized to act on behalf of the district, subject to approval of qualified voters as required herein; however all official acts of the board shall be by written resolution approved by the board.

     Section 7. 1. Each district shall have all the powers necessary to carry out and effectuate the purposes and provisions of sections 1 to 18 including, without limitation, the following powers:

     (1) To adopt, amend and repeal bylaws, not inconsistent with sections 1 to 18, necessary or convenient to carry out the provisions of sections 1 to 18;

     (2) To sue and be sued;

     (3) To make and enter into contracts and other instruments, with public and private entities, necessary or convenient to exercise its powers and carry out its duties under sections 1 to 18;

     (4) If the district is a political subdivision, to delegate any of its powers, duties or functions to other political subdivisions or public agencies;

     (5) To accept grants, guarantees, and donations of property, labor, services or other things of value from any public or private source;

     (6) To employ or contract for such managerial, engineering, legal, technical, clerical, accounting, or other assistance as it deems advisable;

     (7) To acquire by purchase, lease, gift, grant, bequest, devise, or otherwise, any real property within its boundaries, personal property, or any interest in such property;

     (8) To sell, lease, exchange, transfer, assign, mortgage, pledge, hypothecate or otherwise encumber or dispose of any real or personal property or any interest in such property;

     (9) To levy and collect special assessments as provided in sections 1 to 18;

     (10) If the district is a political subdivision, to levy real property taxes and impose sales taxes as provided in sections 1 to 18;

     (11) To fix, charge and collect fees, rents and other charges for use of any of its real or personal property or any interest in such property;

     (12) To borrow money from any public or private source and issue obligations and provide security for the repayment of the same as provided in sections 1 to 18;

     (13) To loan money as provided in sections 1 to 18;

     (14) To make expenditures, create reserve funds and use its revenues as necessary to carry out its powers or duties and the provisions and purposes of sections 1 to 18;

     (15) To enter into one or more agreements with the city for the purpose of abating any public nuisance within the boundaries of the district including, but not limited to, the stabilization, repair or maintenance or demolition and removal of buildings or structures, provided that the city has declared the existence of a public nuisance;

     (16) Within its boundaries, to provide assistance to or to construct, reconstruct, install, repair, maintain, and equip any of the following public improvements:

     (a) Pedestrian or shopping malls and plazas;

     (b) Parks, lawns, trees and any other landscape;

     (c) Convention centers, arenas, aquariums, aviaries, and meeting facilities;

     (d) Sidewalks, streets, alleys, bridges, ramps, tunnels, overpasses and underpasses, traffic signs and signals, utilities, drainage, water, storm and sewer systems and other site improvements;

     (e) Parking lots, garages or other facilities;

     (f) Lakes, dams and waterways;

     (g) Streetscape, lighting, benches or other seating furniture, trash receptacles, marquees, awnings, canopies, walls, and barriers;

     (h) Telephone and information booths, bus stop and other shelters, rest rooms, and kiosks;

     (i) Paintings, murals, display cases, sculptures, and fountains;

     (j) Music, news and child-care facilities; and

     (k) Any other useful, necessary or desired improvement;

     (17) To dedicate to the city, with the city's consent, streets, sidewalks, parks and other real property and improvements located within its boundaries for public use;

     (18) Within its boundaries and with the city's consent, to prohibit or restrict vehicular and pedestrian traffic and vendors on streets, alleys, malls, bridges, ramps, sidewalks and tunnels and to provide the means for access by emergency vehicles to or in such areas;

     (19) Within its boundaries, to operate or to contract for the provision of music, news, child-care or parking facilities, and buses, minibuses or other modes of transportation;

     (20) Within its boundaries, to lease space for sidewalk cafe tables and chairs;

     (21) Within its boundaries, to provide or contract for the provision of security personnel, equipment or facilities for the protection of property and persons;

     (22) Within its boundaries, to provide cleaning, maintenance and other services to public and private property;

     (23) To produce and promote any tourism, recreational or cultural activity or special event in the district by, but not limited to, advertising, decoration of any public place in the district, promotion of such activity and special events, and furnishing music in any public place;

     (24) To support business activity and economic development in the district, including but not limited to the promotion of business activity, development and retention, and the recruitment of developers and businesses;

     (25) To provide or support training programs for employees of businesses within the district;

     (26) To provide refuse collection and disposal services within the district;

     (27) To contract for or conduct economic, planning, marketing or other studies;

     (28) To carry out any other powers set forth in sections 1 to 18; and

     (29) To exercise such other implied powers necessary or convenient for the district to accomplish its purposes which are not inconsistent with its express powers.

     2. Each district which is located in a blighted area or which includes a blighted area shall have the following additional powers:

     (1) Within its blighted area, to contract with any private property owner to demolish and remove, renovate, reconstruct or rehabilitate any building or structure owned by such private property owner; and

     (2) To expend its revenues or loan its revenues pursuant to a contract entered into pursuant to this subsection 2 of this section, provided that the governing body of the city has determined that the action to be taken pursuant to such contract is reasonably anticipated to remediate the blighting conditions and will serve a public purpose.

     3. Each district shall annually reimburse the city for the reasonable and actual expenses incurred by the city to establish such district and review annual budgets and reports of such district required to be submitted to the city; provided that such annual reimbursement shall not exceed one and one-half percent of the revenues collected by the district in such year.

     4. Nothing in sections 1 to 18 shall be construed to delegate to any district any sovereign right of municipalities to promote order, safety, health, morals and general welfare of the public, except those such police powers, if any, expressly delegated pursuant to sections 1 to 18.

     5. The governing body of the city establishing the district shall not decrease the level of publicly funded services in the district existing prior to the creation of the district or transfer the financial burden of providing the services to the district unless the services at the same time are decreased throughout the city, nor shall the governing body discriminate in the provision of the publicly funded services between areas included in such the district and areas not so included.

     Section 8. 1. The fiscal year for the district shall be the same as the fiscal year of the city.

     2. No earlier than one hundred eighty days and no later than ninety days prior to the first day of each fiscal year, the board shall submit to the governing body of the city a proposed annual budget, setting forth expected expenditures, revenues, and rates of assessments and taxes, if any, for such fiscal year. The governing body may review and comment to the board on this proposed budget, but if such comments are given, the governing body of the city must provide such written comments to the board no later than sixty days prior to the first day of the relevant fiscal year; such comments shall not constitute requirements but shall only be recommendations.

     3. The board shall hold an annual meeting and adopt an annual budget no later than the thirty days prior to the first day of each fiscal year.

     4. Within one hundred twenty days after the end of each fiscal year, the district shall submit a report to the city clerk of the city and the Missouri department of economic development stating the services provided, revenues collected and expenditures made by the district during such fiscal year, and copies of written resolutions approved by the board during the fiscal year. The city clerk shall retain this report as part of the official records of the city and shall also cause this report to be spread upon the records of the governing body.

     Section 9. 1. Each ordinance establishing a district shall set forth the term for the existence of such district which term may be defined as a minimum, maximum, or definite number of years or as perpetual.

     2. Upon receipt by the city clerk of a proper petition and after notice and a public hearing, any district may be terminated by city ordinance prior to the expiration of its term if the district has no outstanding obligations.

     3. A petition for the termination of a district is proper if:

     (1) It names the district to be terminated;

     (2) It has been signed by owners of real property collectively owning more than fifty percent by assessed value of real property within the boundaries of the district;

     (3) Is has been signed by more than fifty percent per capita of owners of real property within the boundaries of the district;

     (4) It contains a plan for dissolution and distribution of the assets of the district; and

     (5) The signature block signed by each petitioner is in the form set forth in subdivision (4) of subsection 2 of section 3.

     4. The public hearing required by this section shall be held and notice of such public hearing shall be given in the manner set forth in section 4. The notice shall contain the following information:

     (1) The date, time and place of the public hearing;

     (2) A statement that a petition requesting the termination of (insert district name) district has been filed with the city clerk;

     (3) A statement that a copy of the petition is available at the office of the city clerk during regular business hours; and

     (4) A statement that all interested parties will be given an opportunity to be heard.

     5. Upon expiration or termination of a district, the assets of such district shall be distributed in accordance with the plan for dissolution as approved by ordinance of the city. Every effort should be made by the city for the assets of the district to be distributed in such a manner so as to benefit the real property which was formerly a part of the district.

     Section 10. 1. A district may, at any time, issue obligations for the purpose of carrying out any of its powers, duties or purposes. Such obligations shall be payable out of all, part, or any combination of the revenues of the district and may be further secured by all or any part of any property or any interest in any property by mortgage or any other security interest granted. Such obligations shall be authorized by resolution of the district, and if issued by the district, shall bear such date or dates, and shall mature at such time or times, but not more than twenty years from the date of issuance, as the resolution shall specify. Such obligations shall be in such denomination, bear interest at such rate or rates, be in such form, be payable in such place or places, be subject to redemption as such resolution may provide and be sold at either public or private sale at such prices as the district shall determine subject to the provisions of section 108.170, RSMo. The district may also issue such obligations to refund, in whole or in part, obligations previously issued by the district.

     2. No obligation issued by a district that is a political subdivision shall constitute an indebtedness within the meaning of any constitutional, statutory or charter debt limitation or restriction. No such obligation shall be a general obligation of the district, municipality, county, state of Missouri or any political subdivision thereof, and shall not be payable out of any funds or properties other than those specifically pledged as security therefor, unless such obligation is issued as an indebtedness of the district with the approval of the qualified voters as required by the constitution.

     3. Obligations issued under this section by a district which is a political subdivision, the interest thereon, and any proceeds from such obligations shall be exempt from taxation in the state of Missouri.

     4. The city, any land clearance for redevelopment authority, port authority, tax increment financing commission, industrial development authority or planned industrial expansion authority of the city may, pursuant to a cooperative agreement with a district, issue obligations and loan the proceeds of such obligations to the district for the purpose of carrying out the powers, duties or purposes of the district.

     Section 11. 1. A district may use any one or more of the assessments, taxes, or other funding methods specifically authorized under sections 1 to 18 to provide funds to accomplish any power, duty or purpose of the district.

     2. A district may establish different classes of real property within the district. The levy rate for real estate taxes and special assessments may vary for each class based on the level of benefit derived from services and/or improvements funded, provided or caused to be provided by the district; however, the levy of real estate tax shall be uniform within each class. Any sales tax imposed under sections 1 to 18 shall be imposed at a rate that shall be uniform throughout the district.

     3. Notwithstanding anything in sections 1 to 18 to the contrary, any district which is not a political subdivision shall have no power to levy any tax but shall have the power to levy special assessments in accordance with section 13.

     Section 12. 1. Any city in which any part of a district is located may, by ordinance, establish a community improvement district municipal fund in the city treasury.

     2. This fund may be used to:

     (1) Pay the costs of planning, administration, and any improvement authorized in sections 1 to 18;

     (2) Prepare preliminary plans, studies, and engineering reports to determine the feasibility of a public improvement or service; or

     (3) If ordered by the governing body of the city, pay the initial cost of the public improvement or service until obligations have been issued and sold.

     3. The fund is not required to be budgeted for expenditure during any year, but the amount of the fund must be stated in the city's annual budget. The amount of the fund must be based on an annual service plan that describes the public improvements and services for the fiscal year.

     4. A grant-in-aid or contribution made to the city for the planning and preparation of plans for public improvement or service authorized under sections 1 to 18 may be credited to the community improvement district municipal fund.

     5. Other political subdivisions may enter into cooperative agreements with the district to make payments in lieu of taxes.

     Section 13. 1. A district may levy by resolution one or more special assessments against real property within its boundaries, upon receipt of and in accordance with a petition signed by:

     (1) Owners of real property collectively owning more than fifty percent by assessed value of real property within the boundaries of the district; and

     (2) More than fifty percent per capita of the owners of all real property within the boundaries of the district.

     2. The special assessment petition shall be in substantially the following form:

The (insert name of district) Community Improvement District ("District") shall be authorized to levy special assessments against real property benefitted within the District for the purpose of providing revenue for (insert general description of specific service and/or project(s)) in the District, said special assessments to be levied against each tract, lot or parcel of real property listed below within the District which receives special benefit as a result of such service and/or project(s), the cost of which shall be allocated among this property by (insert method of allocation, e.g., per square foot of property, per square foot on each square foot of improvement, or by abutting foot of property abutting streets, roads, highways, parks, or other improvements, or any other reasonable method) in an amount not to exceed .......... dollars per (insert unit of measure). Such authorization to levy the special assessment shall expire on (insert date). The tracts of land located in the District which will receive special benefit from this service and/or project(s) are:

(list of properties by common addresses and legal descriptions)

     3. The method for allocating such special assessments set forth in the petition may be any reasonable method which results in imposing assessments upon real property benefitted in relation to the benefit conferred upon each respective tract, lot or parcel of real property and the cost to provide such benefit.

     4. By resolution of the board, the district may levy a special assessment rate lower than the rate ceiling set forth in the petition authorizing the special assessment and may increase that lowered special assessment rate to a level not exceeding the special assessment rate ceiling set forth in the petition without further approval of the real property owners; provided that a district imposing a special assessment pursuant to this section may not repeal or amend such special assessment or lower the rate of such special assessment if such repeal, amendment or lower rate will impair the district's ability to pay any liabilities that it has incurred, money that it has borrowed or obligations that it has issued.

     5. Each special assessment which is due and owing shall constitute a personal liability against the property owner and a perpetual lien against each tract, lot or parcel of property from which it is derived. Such lien may be foreclosed in the same manner as any other special assessment lien as provided in section 88.861, RSMo.

     6. A separate fund or account shall be created by the district for each special assessment levied and each fund or account shall be identifiable by a suitable title. The proceeds of such assessments shall be credited to such fund or account. Such fund or account shall be used solely to pay the costs incurred in undertaking the specified service and/or project(s).

     7. Upon completion of the specified service and/or project(s), the balance remaining in the fund or account established for such specified service and/or project(s) shall be returned or credited against the amount of the original assessment of each parcel of property pro rata based on the method of assessment of such special assessment.

     8. Any funds in a fund or account created under this section which are not needed for current expenditures may be invested by the board in accordance with applicable laws relating to the investment of funds of the city in which the district is located.

     9. The authority of the district to levy special assessments shall be independent of the limitations and authorities of the city in which it is located; specifically, the provisions of section 88.812, RSMo, shall not apply to any district.

     Section 14. 1. The district may levy by resolution a tax upon real property located within the boundaries of the district; provided however, no such resolution shall be final nor shall it take effect until the qualified voters approve, by mail-in ballot, the tax which the resolution seeks to impose. If a majority of the votes cast by the qualified voters voting on the proposed tax are in favor of the tax, then the resolution and any amendments thereto shall be in effect. If a majority of the votes cast by the qualified voters voting are opposed to the tax, then the resolution seeking to levy the tax shall be deemed to be null and void.

     2. The district may levy a real property tax rate lower than the tax rate ceiling approved by the qualified voters pursuant to subsection 1 of this section and may increase that lowered tax rate to a level not exceeding the tax rate ceiling without approval of the qualified voters.

     3. The ballot shall be substantially in the following form:

Shall the (insert name of district) Community Improvement District ("District") impose a real property tax upon (all real property/or specify classes of real property) within the District at a rate of not more than (insert amount) dollars per hundred dollars assessed valuation for a period of (insert number) years from the date on which such tax is first imposed for the purpose of providing revenue for (insert general description of the purpose) in the District?

     [ ] YES                     [ ] NO

If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".

     4. No district levying a real property tax pursuant to this section may repeal or amend such real property tax or lower the tax rate of such tax if such repeal, amendment or lower rate will impair the district's ability to repay any liabilities which it has incurred, money which it has borrowed or obligations that it has issued to finance any improvements or services rendered within the district.

     Section 15. 1. The district may impose by resolution a sales tax at a rate of one-eighth of one percent, one-fourth of one percent, three-eighths of one percent, one-half of one percent, three-fourths of one percent, or one percent of the receipts from the sale at retail of all tangible personal property or taxable services at retail within the district adopting such tax, if such property and services are subject to taxation by the state of Missouri under the provisions of sections 144.010 to 144.525, RSMo; provided, however, no such resolution shall be final nor shall it take effect until the qualified voters approve, by mail-in ballot, the tax which the resolution seeks to impose. If a majority of the votes cast by the qualified voters voting on the proposed tax are in favor of the tax, then the resolution and any amendments thereto shall be in effect. If a majority of the votes cast by the qualified voters voting are opposed to the tax, then the resolution seeking to impose the tax shall be deemed to be null and void.

     2. The ballot shall be substantially in the following form:

Shall the (insert name of district) Community Improvement District impose a community improvement district-wide sales tax at the maximum rate of (insert amount) for a period of (insert number) years from the date on which such tax is first imposed for the purpose of providing revenue for (insert general description of the purpose)?

     [ ] YES                         [ ] NO

If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".

     3. Within ten days after the qualified voters have approved the imposition of the sales tax, the district shall, in accord with section 32.087, RSMo, notify the director of revenue. The sales tax authorized by this section shall become effective on the first day of the second calendar quarter after the director of revenue receives notice of adoption of such tax.

     4. The director of revenue shall collect this local sales tax in accord with the provisions of section 32.087, RSMo, and all other applicable laws of the state of Missouri.

     5. No district imposing a sales tax pursuant to this section may repeal or amend such sales tax if such repeal or amendment will impair the district's ability to repay any liabilities which it has incurred, money which it has borrowed or obligations which it has issued to finance any improvements or services rendered for the district.

     Section 16. 1. The district may impose by resolution an additional tax on businesses and individuals doing business in the district; provided, however, no such resolution shall be final or shall it take effect until the qualified voters approve, by mail-in ballot, the tax which the resolution seeks to impose. If a majority of the votes cast by the qualified voters voting on the proposed tax are in favor of the tax, then the resolution and any amendments thereto shall be in effect. If a majority of the votes cast by the qualified voters voting are opposed to the tax, then the resolution seeking to levy the tax shall be deemed to be null and void.

     2. The district may levy a business license tax rate lower than the tax rate ceiling approved by the qualified voters pursuant to subsection 1 of this section and may increase that lowered tax rate to a level not exceeding the tax rate ceiling without approval of the qualified voters.

     3. The ballot shall be substantially in the following form:

Shall the (insert name of district) Community Improvement District impose a business license tax upon all individuals and businesses doing business within the community improvement district at a rate of not more than (insert rate) for a period of (insert number) years from the date on which such tax is first imposed for the purpose of providing revenue for (insert general description of the purpose)?

     [ ] YES                         [ ] NO

If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".

     4. No district imposing a business license tax pursuant to this section may repeal or amend such business license tax or lower the rate of such tax unless such repeal, amendment or lower rate will not impair the district's ability to pay any liabilities which it has incurred, money which it has borrowed or obligations which it has issued to finance any improvements or services rendered for the district.

     Section 17. 1. Sales taxes shall be collected by the director of revenue in accordance with applicable Missouri law.

     2. The county collector of each county in which the district is located shall collect the real property taxes and special assessments made upon all real property within that county and district, in the same manner as other real property taxes are collected. If the special assessment is based on something other than the assessed value of real property, the district shall provide the information on which such special assessment is based for all applicable real property. In addition, the city treasurer of the city in which the district is located shall collect business license taxes imposed by the district in the same manner as other business license taxes, if any, are collected.

     3. Every county collector and city treasurer having collected or received district assessments or taxes shall, on or before the fifteenth day of each month and after deducting the cost of such collection but not to exceed one percent of the total amount collected, remit to the treasurer of that district the amount collected or received by him/her prior to the first day of such month. Upon receipt of such money, the district treasurer shall execute a receipt therefor, which he or she shall forward or deliver to the county collector or city treasurer which collected such money. The district treasurer shall deposit such sums into the district treasury, credited to the appropriate fund or account. The county collector or city treasurer, and district treasurer shall make final settlement of the district account and costs owing, not less than once each year, if necessary.

     4. As an alternative to the method of collection set forth in subsections 2 and 3 of this section, the district may elect to collect any such special assessments, real property taxes or business license taxes on its own behalf.

     Section 18. 1. Notwithstanding the provisions of chapter 115, an election for a sales tax, real estate tax or business license tax under sections 1 to 18 shall be conducted in accordance with the provisions of this section.

     2. After the board has passed a resolution for the levy of real property tax or for imposition of a sales tax or business license tax and a vote of the qualified voters is required, the board shall provide written notice of such resolution to the city clerk. The board shall be entitled to rescind such resolution provided that written notice of such recision is delivered to the city clerk prior to the time the city clerk mails the ballots to the qualified voters.

     3. Upon receipt of written notice of a district's resolution for the levy of a real property tax or for imposition of a sales tax or business license tax the city clerk shall:

     (1) Specify a date upon which the election shall occur, which date shall be a Tuesday, and shall be not earlier than the tenth Tuesday, and not later than the fifteenth Tuesday, after the date of the board's passage of the resolution and shall not be on the same day as an election conducted under the provisions of chapter 115, RSMo;

     (2) Publish notice of the election in a newspaper of general circulation within the city two times. The first publication date shall be more than sixty days prior to the date of the election and the second publication date shall be not more than thirty days and not less than ten days prior to the date of the election. The published notice shall include, but not be limited to, the following information:

     (a) The name and general boundaries of the district;

     (b) The type of tax proposed, its rate, purpose and duration;

     (c) The date the ballots for the election shall be mailed to qualified voters;

     (d) The date of the election;

     (e) Qualified voters will consist of (a) such persons who reside within the district and who are registered voters pursuant to the records of the election authority as of the thirtieth day prior to the date of the election; or (b) if no such registered voters reside in the district, the owners of real property located within the district pursuant to the county tax rolls for real property as of the thirtieth day prior to the date of the election;

     (f) A statement that persons residing in the district must register to vote with the election authority on or before the thirtieth day prior to the date of the election in order to be a qualified voter for purposes of the election;

     (g) A statement that the ballot must be returned to the city clerk's office in person, or by depositing the ballot in the United States mail addressed to the city clerk's office and post-marked, no later than the date of the election; and

     (h) A statement that any qualified voter that did not receive a ballot in the mail or lost the ballot received in the mail may pick up a mail-in ballot at the city clerk's office, specifying the dates and time such ballot will be available and the location of the city clerk's office;

     (3) The city clerk shall mail to each qualified voter not more than fifteen days and not less than ten days prior to the date of the election together with a notice containing substantially the same information as the published notice and a return addressed envelope directed to the city clerk's office with a sworn affidavit on the reverse side of such envelope for the qualified voter's signature. For purposes of mailing ballots to real property owners only one ballot shall be mailed per capita at the address shown on the county tax rolls. Such affidavit shall be in substantially the following form:

FOR REGISTERED VOTERS:

     I hereby declare under penalties of perjury that I reside in the (insert name) Community Improvement District and I am a registered voter and qualified to vote in this election.

Qualified Voter's Signature

Printed Name of Qualified Voter

FOR REAL PROPERTY OWNERS:

     I hereby declare under penalty of perjury that I am the owner of real property in the (insert name) Community Improvement District and qualified to vote in this election, or authorized to affix my signature on behalf of the owner (named below) of real property in the (insert name) Community Improvement District which is qualified to vote in this election.

Signature

Print Name of Real Property Owner

If Signer is Different from Owner:

Name of Signer:

State Basis of Legal Authority to Sign:

     All persons or entities having a fee ownership in the property must sign the ballot. Additional signature pages may be affixed to this ballot to accommodate all required signatures.

     4. Each qualified voter shall have one vote. Each voted ballot shall be signed with the authorized signature.

     5. Mail-in ballots shall be returned to the city clerk's office in person, or by depositing the ballot in the United States mail addressed to the city clerk's office and post-marked, no later than the date of the election. The city clerk shall transmit all voted ballots to a team of judges of not less than four, with an equal number from each of the two major political parties. The judges shall be selected by the city clerk from lists compiled by the election authority. Upon receipt of the voted ballots, the judges shall verify the authenticity of the ballots, canvass the votes, and certify the results. Certification by the election judges shall be final and shall be immediately transmitted to the city clerk. Any qualified voter who voted in such election may contest the result in the same manner as provided in chapter 115, RSMo.

     6. The results of the election shall be entered upon the records of the city clerk and a certified copy of the election results shall be filed with the county clerk of each county in which a portion of the proposed district lies, who shall cause the same to be entered upon the records of the county clerk.

     7. The district shall reimburse the city clerk for the costs it incurs to conduct an election under this section.