Signed by Governor Butch Otter

Vote Smart's Synopsis:

Vote to pass a bill that allows for the creation of community infrastructure districts to help fund new growth by levying taxes and issuing bonds.

Highlights:

- Allows for the creation of a community infrastructure district initiated by a petition signed by at least two-thirds of the district's residents, or by all of the landowners residing within the proposed district. Following a mandatory public hearing the governing body (county commissioners or city council) may approve or deny the formation of the district [sec. 1 (50-3103)]. - Requires the petition to state the purpose for which the district is formed, the projects that will be financed by the district, how they intend to finance them, and the ability of the district to impose special assessments, levy taxes, and impose fees [sec. 1 (50-3103) (1)]. - Requires the members of the governing body to serve as the district board. If the district is located within the boundaries of a city, three members of the city council will serve as the district board. If the district is located within the boundaries of a county, the county commissioners will serve as the district board. If the district is located within the jurisdiction of more than one governing body, two members from each governing body, and one additional member from the governing body whose jurisdiction covers the largest land area of the district will serve as the district board [sec. 1 (50-3104) (2)]. - Enumerates the powers of the district, which include, but are not limited to [sec. 1 (50-3105) (1)]:

- Levying property taxes; - Imposing and collecting fees; - Accepting gifts or grants; - Incurring indebtedness through loans, certificates, notes, bonds or debentures; - Expending funds for community infrastructure purposes or district operations; - Entering into contracts, intergovernmental agreements, and district development agreements; - Acquiring, selling, dedicating, leasing, or disposing of property for community infrastructure; and - Planing, designing, engineering, acquiring, constructing, and improving community infrastructure.

- Allows a district to issue general obligation bonds by resolution to provide for community infrastructure. The resolution must be approved by a two-thirds of qualified voters [sec.1 (50-3108) (1-3)]. - Prohibits the district from issuing general obligation bonds, or incurring any other indebtedness that exceed a total of 12 percent of the assessed value of all taxable real property within the district [sec.1 (50-3108) (4)]. - Allows a district to issue special assessment bonds by resolution to provide for community infrastructure. A public hearing must be held prior to the issuance of a special assessment bond [sec.1 (50-3109) (1-2)]. - Allows for the district to issue and sell refunding bonds to refund both general obligation and special assessment bonds without an election [sec. 1 (50-3108) (9) & (50-3109) (11)].

Full Bill Text