SB 258 - 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 based on a competitive selection process for projects. The counties of Boone and Clay may, upon voter approval, issue use 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) Requires that the petition to form an NID 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, exclusive of property owned by the State or a political subdivision. Currently, the owners of record of at least 2/3 by area must sign the petition. 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 is similar to SS/SCS/SBs 723 and 891 (1996).

DAVID VALENTINE