SB 0505 - Fiscal Note

Fiscal Note - SB 0505 - Changes the way neighborhood improvement districts are established

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2499-01

BILL NO. SB 505

SUBJECT: Cities, Counties, Neighborhood Improvement Districts

TYPE: Original

DATE: January 14, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

City of Poplar Bluff 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 receive voter approval for the establishment of a Neighborhood Improvement District.

In similar legislation from last session (SB 307), the Cities of Mexico and Poplar Bluff assumed no fiscal impact, and the County of Cass likewise assumed no fiscal impact.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0*	0*	0*

*This proposal revises the law used by cities and counties that desire to establish a NID and would have no fiscal impact without 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" shall include maintenance to and replacement of existing improvements. Bonds may only be issued through a competitive bidding process. The proposed assessment formula shall be disclosed to the voters in any election upon an improvement. A separate question shall be placed on the ballot for any maintenance tax levy. Various provisions for maintenance cost assessments prior to bond retirement shall be made.

DESCRIPTION continued

Petitions for neighborhood improvement districts by property owners must be signed at least 2/3 of the owners, as opposed to the owners of 2/3 of the area.

The notice prior to the hearing upon a proposal shall be given for at least 3 consecutive weeks. The district shall 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 50% 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.

As an alternative to property assessments, the city or county may 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 may 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 Poplar Bluff

NOT RESPONDING:

Cities of: Fulton, Mexico, Florissant, Raytown, St. Charles, Springfield, and the County Commissions of: Callaway, Boone, Greene, Clay, Cass, Monroe, St. Charles, and the Jackson County Executive

Jeanne Jarrett, CPA

Director

January 14, 1998