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).
CHARLES HATCHER