Fiscal Note - SB 0307 - Revises the Creation and Funding of Neighborhood Improvement Districts
L.R. NO. 1193-01
BILL NO. SB 307
SUBJECT: Cities, Counties: Neighborhood Improvement Districts
TYPE: Original
DATE: February 14, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
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
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
City of Mexico officials assume no fiscal impact.
City of Poplar Bluff officials assume no fiscal impact.
Cass County officials assume no fiscal impact.
Oversight assumes this proposal is permissive and would not impact state
funds. Cities and Counties would have no fiscal impact unless their
governing bodies would seek voter approval to establish a Neighborhood
Improvement District.
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*
*This proposal revises the law that is used by cities and counties that
desire to establish a NID, and would have no fiscal impact without action by
their governing body with voter approval.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This act makes changes in the way cities and counties establish Neighborhood
Improvement Districts. "Improvements" would include maintenance to and
replacement of existing improvements. Bonds could only be issued through a
competitive bidding process. The proposed assessment formula would be
disclosed to the voters in any election upon an improvement. A separate
question would be placed on the ballot or any maintenance tax levy. Various
provisions for maintenance cost assessments prior to bond retirement would be
made.
Petitions for neighborhood improvement districts by property owners must be
signed by at least 2/3 of the owners, as opposed to the owners of 2/3 of the
area. In 2nd, 3rd and 4th class counties, districts could only be created by
petition of the property owners; but the county commission could accept a
petition by 4/7 of such property owners instead of 2/3 of the owners.
NOTICE - The notice prior to the hearing upon a proposal would be given for
at least 3 consecutive weeks. The district would reimburse the county clerk
for the cost of the notice. The limit on bonds is changed from 10% of the
valuation of all city or county property to 40% of the assessed value of the
property in the district. An exception is made when all of the voters in the
city or county vote on a proposal; then the bond limit would be 100% of the
assessed value of the land in the proposed district.
ALTERNATIVE TAX - As an alternative to property assessments, the city or
county could provide for an annual property tax to pay the interest and
principal on bonds, to be paid off within 20 years. A maintenance tax of up
to 20 cents per $100 assessed valuation could also be collected to offset
maintenance costs.
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 Mexico
City of Poplar Bluff
Cass County Clerk
NOT RESPONDING: Cities of: Fulton, Florissant, Raytown, Springfield,
Counties of: Boone, Greene, Clay, Callaway, Monroe, St. Charles, and
Jackson.
This Fiscal Note is not an official copy and should not be quoted or cited.