- Introduced -

SB 505 - 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.

PETITIONS - 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.

NOTICE - 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.

BOND LIMIT - 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.

ALTERNATIVE TAX - 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 bill is similar to SCS/SB 307 (1997).

JOAN GUMMELS