Fiscal Note - SB 0258 - Revises the Law Pertaining To Neighborhood Improvement Districts
L.R. NO. 1032-03
BILL NO. Perfected SCS for SB 258 and 228
SUBJECT: Cities, Towns, and Villages
TYPE: Original
DATE: April 17, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The cities of Mexico and Columbia assume no local fiscal impact.
The County Commissions of Franklin and Cass counties assume no fiscal impact.
Oversight assumes the changes in this proposal are mainly procedural and that
the creation of a Neighborhood Improvement District would be permissive,
resulting in no fiscal impact without action by the local governing body with
voter approval.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This act makes the following changes to the Neighborhood Improvement District
(NID) law:
(1) The counties of Boone and Clay may, upon voter approval, issue general
obligation bonds to finance neighborhood improvement district projects;
(2) Allows for a levy against property in the district to pay maintenance
costs prior to the retirement of 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) An alternative method of creating a NID in first class
charter counties would require a petition signed by the owners of record of
at least two-thirds by area of all real property within the district. In
cities and all other counties a NID could be created if a proper petition had
been signed by at least two-thirds of the owners of record of all real
property within the proposed district. The petition shall be the exclusive
procedure to form a district which proposes to improve a county road in an
unincorporated area of a second, third or fourth classification county except
that the county commission may place the issue on the ballot upon receiving a
petition signed by 4/7 of the voters in the proposed district;
(4) Requires the notice of the public hearing to be published at least three
times with at least one notice being not more than 20 days and not less than
10 days before the hearing. Currently, the notice must be published only
once. The NID must reimburse the clerk's office for the cost of the
advertisement. Individual notices must still be mailed to all property
owners in the proposed district remains at 10 percent for first class
counties. In other counties, the amount not to exceed 20 cents per 100
dollars assessed valuation;
(5) The total amount of the bonded indebtedness is limited to 40% of the
assessed valuation of the proposed NID, if less than the entire city or
county votes on the question of incurring bonded indebtedness. If the bonded
indebtedness question is submitted to all of the qualified voters residing
within such city or county, the limit on the total amount of the permissible
bonded indebtedness for the NID is raised to the assessed value of the
proposed NID;
(6) Allows the option to finance a NID through an annual levy against the
assessed valuation of the property in the NID.
This act also allows county commissions to remove members of boards appointed
by the commission for nonattendance, and authorizes counties to adopt orders
or ordinances requiring the repair or demolition of buildings. Cities and
first classification counties already have this authority.
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
City of Columbia
City of Mexico
Cass County
Franklin County
NOT RESPONDING: Cities of St. Charles, Poplar Bluff, Jefferson, Fulton,
Springfield, Raytown, Independence, Florissant, and Liberty. The County
Commissions of: Boone, Clay, Greene, Jefferson, Platte, Jasper, Taney,
Monroe, and Cole.
This Fiscal Note is not an official copy and should not be quoted or cited.