SB 0891 Neighborhood Improve. Dist./Procedure/Financing/Maintenance
LR Number:S2587.06I Fiscal Note:2587-06
Committee:Agriculture and Local Government
Last Action:02/28/96 - Bill Combined w/SCS/SBs 723 & 891
Title:SCS/SBs 723 & 891
Effective Date:August 28, 1996
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Current Bill Summary

SB 891 - 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 competitively bid.

(2) Allows for a levy against property in the district to pay maintenance costs prior to the retirement of the 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 the petition to form an NID to 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. Currently, the owners of record of at least 2/3 by area must sign the petition.

(4) The total amount of the bonded indebtedness is limited to 20% of the assessed valuation of the proposed NID. Currently the limit is 10% of the assessed valuation of the city or county.

(5) Allows the option to finance an NID through an annual levy against the assessed valuation of the property in the NID.