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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1130

Introduced by Jacobson, 42.
Read first time January 20, 2026
Committee: Urban Affairs
A BILL FOR AN ACT relating to cities and villages; to adopt the Community1
Improvement District Act; and to declare an emergency.2
Be it enacted by the people of the State of Nebraska,3
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Section 1. Sections 1 to 59 of this act shall be known and may be1
cited as the Community Improvement District Act. 2
Sec. 2. For purposes of the Community Improvement District Act:3
(1) Administrator means the person appointed by the Auditor of4
Public Accounts pursuant to section 42 of this act to manage the affairs5
of a community improvement district and to exercise the powers of the6
board of trustees during the period of the appointment to the extent7
prescribed in the Community Improvement District Act;8
(2) Bond means an investment security under article 8, Uniform9
Commercial Code, in the form of a long-term, written promise to pay a10
specified sum of money, referred to as the face value or principal11
amount, at a specified maturity date or dates in the future, plus12
periodic interest at a specified rate; 13
(3) Capital outlay means expenditures for construction or14
reconstruction of major permanent facilities having an expected long15
life, including, but not limited to, public infrastructure improvements;16
(4) Development means the original installation of any public17
improvements to the standards of the city or village zoning standards;18
(5) Operation and maintenance expenses means and includes, but is19
not limited to, salaries, cost of materials and supplies for operation20
and maintenance of the community improvement district's facilities, cost21
of ordinary repairs, replacements, and alterations, cost of surety bonds22
and insurance, cost of audits and other fees, and taxes;23
(6) Public infrastructure means any publicly owned electric service24
lines and conduits, gas service lines and conduits, sanitary sewer lines,25
sanitary sewer system improvements, storm sewer lines, storm sewer system26
improvements, flood control improvements, water lines, water system27
improvements, emergency management warning system improvements,28
sidewalks, roads, streets, highways, pedestrian walkways, public spaces,29
public facilities, parks, playgrounds, recreational facilities, offstreet30
motor vehicle parking facilities, public waterways, docks, wharfs, rail31
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lines, flood control systems, flood control improvements, and related1
appurtenances, whether owned or to be owned by the community improvement2
district or another political subdivision; 3
(7) Public waterways means artificially created boat channels4
dedicated to public use and providing access to navigable rivers or5
streams; 6
(8) Redevelopment means the reconstruction, rehabilitation, or7
original installation of public infrastructure as long as prior public8
infrastructure has been installed in the community improvement district9
even if such installation occurred prior to the formation of the10
community improvement district; and 11
(9) Warrant means an investment security under article 8, Uniform12
Commercial Code, in the form of a short-term, interest-bearing order13
payable on a specified date issued by the board of trustees or14
administrator of a community improvement district to be paid from funds15
available or expected to be received in the future, and includes, but is16
not limited to, property tax collections, special assessment collections,17
and proceeds of sale of bonds. 18
Sec. 3. (1)(a) A majority of the owners, as determined in19
subsection (5) of this section, having an interest in the real property20
within the limits of a proposed community improvement district, situated21
wholly within a village or city in this state at the time of approval22
pursuant to section 6 of this act, may propose formation of a community23
improvement district for the purpose of construction, installation,24
improvement, equipping, maintenance, and repair of public infrastructure25
in or related to such community improvement district, and contracting26
with the city or village in which the community improvement district is27
located or other political subdivisions of this state for any public28
purpose. The real property included within a community improvement29
district may be contiguous or noncontiguous. 30
(b) Nothing in this section shall authorize community improvement31
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districts to purchase electric service and resell the same.1
(c) For the purposes listed in this section, such majority of the2
owners may make and sign articles of association in which shall be stated3
(i) the name of the community improvement district, (ii) that the4
community improvement district will have perpetual existence, (iii) the5
limits of the community improvement district, (iv) the name and place of6
residence of each owner of the land in the proposed community improvement7
district, (v) the description of the several tracts of land situated in8
the community improvement district owned by those who may organize the9
community improvement district, and (vi) the name and the description of10
the real estate owned by any such owner who does not join in the11
organization of the community improvement district but who will be12
benefited thereby. Such owners of real estate as are unknown may also be13
set out in the articles as such. 14
(d) No community improvement district may own or hold land in excess15
of ten acres, unless such land so owned and held by such community16
improvement district is actually used for a public purpose, as provided17
in this section, within three years after its acquisition. Any community18
improvement district which has acquired land in excess of ten acres in19
area and has not devoted the same to a public purpose, as set forth in20
this section, within three years after the date of its acquisition, shall21
devote the same to a use set forth in this section or shall divest itself22
of such land. When a community improvement district divests itself of23
land pursuant to this section, it shall do so by sale at public auction24
to the highest bidder after notice of such sale has been given by25
publication at least three times for three consecutive weeks prior to the26
date of sale in a legal newspaper of general circulation within the area27
of the community improvement district. 28
(2) The articles of association shall state: 29
(a) The proposed community improvement district proposes an30
aggregate maximum permitted levy rate for all purposes in an amount not31
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to exceed ......... per $100 of taxable valuation in such community1
improvement district, to be deposited and held in the funds of the2
community improvement district and used for general corporate purposes,3
including payment of principal of and interest on any outstanding bonds,4
warrants, and other obligations of the community improvement district;5
and 6
(b) The owners of real estate so forming the community improvement7
district for such purposes are willing and obligate themselves to pay the8
tax or taxes which may be levied against all the property in the9
community improvement district and special assessments against the real10
property benefited which may be assessed against them to pay the expenses11
that may be necessary for the purposes of the community improvement12
district as authorized in subsection (1) of this section.13
(3) The articles shall propose the names of five or more trustees14
who (a) live in the purposed community improvement district, (b) are15
owners of real estate located in the proposed community improvement16
district, or (c) are designees of the owners if the real estate is owned17
by a limited partnership, a general partnership, a limited liability18
company, a public, private, or municipal corporation, an estate, or a19
trust. The five trustees approved pursuant to section 6 of this act shall20
serve as a board of trustees until their successors are elected and21
qualified if such community improvement district is organized.22
(4) After the articles are signed, the same shall be filed in the23
office of the clerk of the city or village in which such community24
improvement district shall be located together with a request that the25
city council of the city or board of trustees of the village in which26
such articles of association have been filed pass and approve an27
ordinance approving formation of such community improvement district28
pursuant to the Community Improvement District Act.29
(5) For purposes of subsection (1) of this section, a majority of30
the owners having an interest in the real property in a proposed31
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community improvement district is determined as follows:1
(a) If the real property in a proposed community improvement2
district is currently zoned commercial or industrial, a majority of the3
owners is determined based on the number of acres owned in the proposed4
boundary of the community improvement district; 5
(b) If the real property in a proposed community improvement6
district is currently zoned residential, a majority of the owners is7
determined based on the majority of the number of residential lots or8
condominium units in the proposed boundary of the community improvement9
district, regardless of lot size; 10
(c) If the real property in a proposed community improvement11
district is currently zoned agricultural, majority means all real12
property owners; and 13
(d) If the real property in a proposed community improvement14
district is a combination of subdivisions (a) through (c) of this15
subsection, a majority of the owners is determined giving equal weight to16
each acre and each residential lot and must include all owners of17
agricultural land in the proposed boundary of the community improvement18
district. 19
Sec. 4. (1) Immediately after the articles of association and20
request for approval have been filed, as provided for by subsection (4)21
of section 3 of this act, the clerk of the city or village where the22
articles are filed shall schedule a hearing to be held within ninety days23
after the date of such filing by the city council or village board of24
trustees regarding formation of the proposed community improvement25
district and any objections to such formation. 26
(2) The city or village clerk shall publish a notice of association27
in a newspaper of general circulation in the city or village and in the28
proposed community improvement district in one publication at least sixty29
days prior to the date of such hearing and in the four weekly30
publications of such newspaper immediately preceding the date set for31
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such hearing, which notice shall set forth the following:1
(a) That the articles of association have been filed in the office2
of the city or village clerk and are available for inspection and the3
purpose thereof; 4
(b) The date and time of the hearing scheduled regarding formation5
of the proposed community improvement district and any objections thereto6
and that any written objections regarding such community improvement7
district shall be filed with the city or village clerk at least seven8
calendar days prior to the date of such hearing; 9
(c) A description of the real estate proposed to be included in the10
community improvement district and that the owner or owners of such real11
estate will be affected by formation of such community improvement12
district and rendered liable to taxation and special assessment in13
accordance with law and in addition to any other taxes or assessments of14
the city or village and other existing taxing entities, for the purpose15
of construction, installation, improvement, equipping, maintenance, and16
repair of public infrastructure in or related to such community17
improvement district, and contracting with the city or village in which18
the community improvement district is located or other political19
subdivisions of this state for any public purpose;20
(d) The names of the proposed trustees; 21
(e) The proposed aggregate maximum permitted levy rate for all22
purposes, stated as an amount not to exceed ......... per $100 of taxable23
valuation in such community improvement district, to be deposited and24
held in the funds of the community improvement district and used for25
general corporate purposes, including payment of principal of and26
interest on any outstanding bonds, warrants, and other obligations of the27
community improvement district; and 28
(f) That application has been made to the city or village to declare29
to the district a community improvement district pursuant to the30
Community Improvement District Act. 31
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(3) The city or village clerk shall mail a copy of such notice of1
association to the several owners of real estate in the proposed2
community improvement district who have not signed the articles of3
association. The notice shall be sent via certified mail service to the4
last-known address of each such owner no later than ten days after5
publishing the first notice of association, with a return receipt6
requested showing to whom and where the notice was delivered and the date7
of delivery. 8
Sec. 5. Any owner of real estate situated in the proposed community9
improvement district who has not signed the articles of association and10
who may object to the organization of the community improvement district11
or to any one or more of the proposed trustees shall, at least seven12
calendar days prior to the date of the hearing scheduled pursuant to13
subsection (1) of section 4 of this act, file any such objection in14
writing with the city or village clerk where the articles were filed,15
stating (1) why such community improvement district should not be16
organized and declared a public corporation in this state, (2) why the17
owner's real estate should not be embraced in the limits of such18
community improvement district, and (3) any objections to the proposed19
trustees. 20
Sec. 6. (1) The hearing with respect to such application and any21
objections scheduled pursuant to subsection (1) of section 4 of this act22
shall be held by the city council or village board of trustees on the23
date and time provided in the notice of association. At the conclusion of24
such hearing, subject to subsections (2) and (3) of this section, the25
city council or village board of trustees may pass an ordinance which (a)26
specifies the property included in the community improvement district,27
(b) names five trustees as the board of trustees of such community28
improvement district to serve until their successors are elected and29
qualified pursuant to the Community Improvement District Act, (c)30
specifies the maximum levy rate for all purposes stated as an amount not31
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to exceed ......... per $100 of taxable valuation in such community1
improvement district, to be deposited and held in the funds of the2
community improvement district and used for general corporate purposes,3
including payment of principal of and interest on any outstanding bonds,4
warrants, and other obligations of the community improvement district,5
and (d) declares the community improvement district a duly formed6
political subdivision and community improvement district pursuant to the7
Community Improvement District Act. Such ordinance shall not be passed8
unless and until all property included in such proposed community9
improvement district is within the corporate limits of the city or10
village. 11
(2) If any objection to the formation of such community improvement12
district is filed by a property owner within the community improvement13
district who did not sign the articles of association, the application14
shall not be approved by the city council or village board of trustees15
unless (a) the boundaries are amended to remove the property owned by16
such objecting property owner or (b) the city council or village board of17
trustees determines that inclusion of such property within the community18
improvement district (i) is necessary to the public health or welfare of19
the community improvement district and the city or village, or (ii) is20
appropriate because such property will be specially benefitted by public21
infrastructure improvements expected to be made by the community22
improvement district. 23
(3) In case of objection to any of the nominated trustees, the city24
council or village board of trustees may identify and name other suitable25
trustees to serve on the board of trustees of such community improvement26
district who shall be (a) owners of real estate located in the community27
improvement district or (b) designated to serve as representatives on the28
board of trustees if the real estate is owned by a limited partnership, a29
general partnership, a limited liability company, a public, private, or30
municipal corporation, an estate, or a trust. 31
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Sec. 7. A community improvement district shall be a body corporate1
and politic by the name of Community Improvement District2
Number ........... of the (city or village) of ........... and shall have3
the power and authority to take and hold real and personal property4
necessary for its use, to levy property taxes, to make contracts, to sue5
and be sued, and to exercise any and all other powers, as a corporation,6
necessary to carry out the purposes of the Community Improvement District7
Act. 8
Sec. 8. Within forty-five days after a community improvement9
district has been declared a public corporation by the city council or10
village board of trustees, the clerk of the community improvement11
district shall transmit to the Secretary of State a certified copy of the12
record relating thereto, including a copy of the articles of association,13
and the same shall be filed in the office of the Secretary of State in14
the same manner as articles of incorporation are required to be filed15
under the general law concerning corporations. A copy of such record,16
including a copy of the articles of association and a plat of the17
community improvement district, shall also be filed in the office of the18
county clerk of the county in which the community improvement district,19
or any part thereof, is situated. 20
Sec. 9. (1) Within thirty days after the city council or village21
board of trustees has declared a community improvement district to be a22
public corporation, the trustees appointed upon formation shall meet and23
elect one of their number chairperson and one of their number clerk of24
the community improvement district. 25
(2) Except as otherwise provided, the board of trustees shall:26
(a) Keep a record of all of its proceedings which shall be open to27
inspection by all owners of real estate in the community improvement28
district; 29
(b) Have the power to pass all necessary resolutions, orders, rules,30
and regulations for the necessary conduct of its business and to carry31
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into effect the objects for which the community improvement district was1
formed; and 2
(c) Have the authority to appoint, employ, and pay accountants,3
attorneys, engineers, municipal advisors, underwriters, and such other4
professional or clerical help as may be needed, who shall each be5
removable at the pleasure of the board or administrator.6
(3) Upon the appointment of an administrator for the community7
improvement district pursuant to sections 42 to 51 of this act, the8
authority of the trustees to exercise the powers granted in this section9
shall be suspended, except that the board shall continue in existence and10
the administrator shall periodically, but not less frequently than11
monthly, report to the board in writing on all decisions and actions12
taken by the administrator in managing the affairs of the community13
improvement district. The administrator shall, during the period of his14
or her appointment, possess exclusive authority to exercise the powers15
and duties conferred in the Community Improvement District Act.16
Sec. 10. Within thirty days after the creation of a community17
improvement district, the clerk of the community improvement district18
shall file with the register of deeds, county clerk, and election19
commissioner, of each county or counties in which the community20
improvement district is located, a statement containing the following21
information: (1) The community improvement district number; (2) the outer22
boundaries of the community improvement district; (3) that the community23
improvement district has the power to levy a property tax and indicate24
the rate approved pursuant to section 6 of this act to pay its debt and25
its expenses of operation and maintenance; (4) that the community26
improvement district may levy special assessments on property in the27
community improvement district to the full extent of special benefits28
arising by reason of development improvements installed by the community29
improvement district; (5) that the annual budget of the community30
improvement district is filed with the Auditor of Public Accounts, which31
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budget shows the anticipated revenue and expenses, tax levy, and1
indebtedness of the community improvement district; (6) that the actual2
current tax levy amount of the community improvement district may be3
obtained from each county in which the community improvement district is4
located; and (7) that a copy of the annual financial audit of the5
community improvement district is on file with the clerk of the community6
improvement district and the Auditor of Public Accounts. Such statement7
shall be supplemented and refiled to indicate any land added to or8
removed from the community improvement district after the original9
filing. 10
Sec. 11. The chairperson and clerk or administrator of any11
community improvement district shall, upon assuming his or her respective12
office, execute and file with the city or village clerk of the city or13
village in which such community improvement district is located, a bond,14
with one or more sureties, to be approved by the city or village clerk,15
running to the State of Nebraska in the penal sum of five thousand16
dollars for the chairperson, twenty thousand dollars for the clerk, and17
twenty thousand dollars for the administrator, conditioned for the18
faithful performance of their official duties and the faithful accounting19
by them for all funds and property of the community improvement district20
that shall come into their possession or control during their term of21
office. The premium, if any, on any such bond shall be paid out of the22
funds of the community improvement district. Suit may be brought on such23
bonds by any person, firm, or corporation that has sustained loss or24
damage in consequence of the breach thereof. 25
Sec. 12. (1) Except as provided in subsection (5) of section26
84-1411, the clerk or administrator of each community improvement27
district shall notify the city or village where such district is located28
of all meetings of the community improvement district board of trustees29
or called by the administrator by sending a notice of such meeting to the30
clerk of the city or village not less than seven days prior to the date31
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set for any meeting. In the case of meetings called by the administrator,1
notice shall be provided to the clerk of the community improvement2
district not less than seven days prior to the date set for any meeting.3
(2) Except as provided in subsection (5) of section 84-1411, within4
the timeframe required by subsection (3) of section 84-1413, after any5
meeting of a community improvement district board of trustees or called6
by the administrator, the clerk or administrator of the community7
improvement district shall transmit to the city or village where the8
community improvement district is located a copy of the minutes of such9
meeting. 10
Sec. 13. (1)(a) On or before December 31 of each year, the clerk of11
each community improvement district shall file with the register of deeds12
or the clerk of the city or village in which the community improvement13
district is located a statement updated each December 31 containing the14
following information: 15
(i) The names of the members of the current board of trustees of the16
community improvement district; 17
(ii) The names of the following if applicable: Current attorney,18
accountant, engineer, underwriter, and municipal advisor of the community19
improvement district; 20
(iii) The warrant and the bond principal indebtedness of the21
community improvement district as of the preceding June 30. Such22
statement shall contain an acknowledgment that the warrant and23
indebtedness are reflective of such date; and 24
(iv) The current tax levy of the community improvement district, as25
described in section 21 of this act, as of December 31.26
(b) For any late filing of the statement, the community improvement27
district shall be assessed a late fee of ten dollars per day by the28
register of deeds or the clerk of the city or village, not to exceed a29
total of three hundred dollars for each late filing.30
(2) The real estate broker or salesperson or, if none, the owner of31
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the real estate shall distribute the most recent statement filed in1
accordance with this section to any prospective purchaser of any real2
estate located within a community improvement district.3
(3) The real estate broker or salesperson or, if none, the owner4
shall obtain an acknowledgment from any purchaser of any real estate5
located within a community improvement district that the purchaser6
understands the property is located within a community improvement7
district. Such acknowledgment may be obtained separately from the8
disclosure required under section 76-2,120. 9
(4) The statement shall be distributed and the acknowledgment10
obtained on or before the date on which the purchaser becomes obligated11
to purchase such real estate. The exclusive remedy for failure to provide12
such statements and obtain such acknowledgments shall be an action for13
damages, and any such failure shall not affect title to the real estate14
or the validity of the conveyance. 15
Sec. 14. (1)(a) On the first Tuesday after the second Monday in16
September which is at least fifteen months after the city council or17
village board of trustees passes the ordinance creating a community18
improvement district and on the first Tuesday after the second Monday in19
September each two years thereafter, the board of trustees shall cause a20
special election to be held, at which election a board of trustees shall21
be elected. The board of trustees shall have five members except as22
provided in subsection (2) of this section. Each member elected to the23
board of trustees shall be elected to a term of two years and shall hold24
office until such member's successor is elected and qualified. Any person25
desiring to file for the office of trustee may file for such office with26
the election commissioner or county clerk of the county in which the27
greater proportion in area of the community improvement district is28
located not later than fifty days before the election. If such person29
will serve on the board of trustees as a designated representative of a30
limited partnership, general partnership, limited liability company,31
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public, private, or municipal corporation, estate, or trust which owns1
real estate in the community improvement district, the filing shall2
indicate that fact and shall include appropriate documentation evidencing3
such fact. No filing fee shall be required. A person filing for the4
office of trustee to be elected at the election held six years after the5
first election of trustees and each election thereafter shall designate6
whether such person is a candidate for election by the resident owners of7
such community improvement district or a candidate for election by all of8
the owners of real estate located in the community improvement district.9
If a person filing for the office of trustee is a designated10
representative of a limited partnership, a general partnership, a limited11
liability company, a public, private, or municipal corporation, an12
estate, or a trust which owns real estate in the community improvement13
district, the name of such entity shall accompany the name of the14
candidate on the ballot in the following form: (Name of candidate) to15
represent (name of entity) as a member of the board. The name of each16
candidate shall appear on only one ballot. 17
(b) The name of a person may be written in and voted for as a18
candidate for the office of trustee, and such write-in candidate may be19
elected to the office of trustee. A write-in candidate for the office of20
trustee who will serve as a designated representative of a limited21
partnership, a general partnership, a limited liability company, a22
public, private, or municipal corporation, an estate, or a trust which23
owns real estate in the community improvement district shall not be24
elected to the office of trustee unless (i) each vote is accompanied by25
the name of the entity which the candidate will represent and (ii) within26
ten days after the date of the election the candidate provides the27
election commissioner or county clerk with appropriate documentation28
evidencing the candidate's representation of the entity. Votes cast which29
do not carry such accompanying designation shall not be counted.30
(c) A trustee shall be an owner of real estate located in the31
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community improvement district or shall be a person designated to serve1
as a representative on the board of trustees if the real estate is owned2
by a limited partnership, a general partnership, a limited liability3
company, a public, private, or municipal corporation, an estate, or a4
trust. Notice of the date of the election shall be mailed by the clerk of5
the community improvement district not later than sixty-five days prior6
to the election to each person who is entitled to vote at the election7
for trustees whose property ownership or lease giving a right to vote is8
of record on the records of the register of deeds as of a date designated9
by the election commissioner or county clerk, which date shall be not10
more than eighty days prior to the election. 11
(2)(a) For any community improvement district, a person whose12
ownership or right to vote becomes of record or is received after the13
date specified pursuant to subsection (1) of this section may vote when14
such person establishes the right to vote to the satisfaction of the15
election board appointed pursuant to section 15 of this act. At the first16
election and at the election held two years after the first election, any17
person may cast one vote for each trustee for each acre of unplatted land18
or fraction thereof and one vote for each platted lot which such person19
may own in the community improvement district. 20
(b) This subdivision applies to a community improvement district21
until the board of trustees amends its articles of association pursuant22
to subdivision (2)(d) of this section. At the election held six years23
after the first election of trustees, two members of the board of24
trustees shall be elected by the legal property owners resident within25
such community improvement district and three members shall be elected by26
all of the owners of real estate located in the community improvement27
district pursuant to this section. Every resident property owner may cast28
one vote for a candidate for each office of trustee to be filled by29
election of resident property owners only. Such resident property owners30
may also each cast one vote for each acre of unplatted land or fraction31
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thereof and for each platted lot owned within the community improvement1
district for a candidate for each office of trustee to be filled by2
election of all property owners. For each office of trustee to be filled3
by election of all property owners of the community improvement district,4
every legal property owner not resident within such community improvement5
district may cast one vote for each acre of unplatted land or fraction6
thereof and one vote for each platted lot which such legal property owner7
owns in the community improvement district. At the election held eight8
years after the first election of trustees and at each election9
thereafter, three members of the board of trustees shall be elected by10
the legal property owners resident within such community improvement11
district and two members shall be elected by all of the owners of real12
estate located in the community improvement district pursuant to this13
section. If there are not any legal property owners resident within such14
community improvement district or if not less than ninety percent of the15
area of the community improvement district is owned for other than16
residential uses, the five members shall be elected by the legal property17
owners of all property within such community improvement district as18
provided in this section. 19
(c) Any public, private, or municipal corporation owning any land or20
lot in the community improvement district may vote at an election the21
same as an individual. If more than fifty percent of the homes in any22
community improvement district are used as a second, seasonal, or23
recreational residence, the owners of such property shall be considered24
legal property owners resident within such community improvement district25
for purposes of electing trustees. For purposes of voting for trustees,26
each condominium apartment under a condominium property regime27
established under the Nebraska Condominium Act shall be deemed to be a28
platted lot and the lessee or the owner of the lessee's interest, under29
any lease for an initial term of not less than twenty years which30
requires the lessee to pay taxes and special assessments levied on the31
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leased property, shall be deemed to be the owner of the property so1
leased and entitled to cast the vote of such property. When ownership of2
a platted lot or unplatted land is held jointly by two or more persons,3
whether as joint tenants, tenants in common, limited partners, members of4
a limited liability company, or any other form of joint ownership, only5
one person shall be entitled to cast the vote of such property. The6
executor, administrator, guardian, or trustee of any person or estate7
interested shall have the right to vote. No corporation, estate, or8
irrevocable trust shall be deemed to be a resident owner for purposes of9
voting for trustees. Should two or more persons or officials claim the10
right to vote on the same tract, the election board appointed pursuant to11
section 15 of this act shall determine the party entitled to vote.12
(d) For any community improvement district which has been in13
existence for at least ten years, which has less than seventy property14
owners entitled to vote for trustees, which has at least two resident15
property owners, and in which less than ten percent of the area of the16
community improvement district is owned for other than residential uses,17
the board of trustees may amend its articles of association as provided18
in section 23 of this act to provide for a reduction in the number of19
trustees on the board from five members to three members to be effective20
at the beginning of the term of office for the board of trustees elected21
at the next election. At the next election and at each election22
thereafter, two members of the board of trustees shall be elected by the23
legal property owners resident within such community improvement district24
and one member shall be elected by all of the owners of real estate25
located in the community improvement district pursuant to this section.26
Every resident property owner may cast one vote for a candidate for each27
office of trustee to be filled by election of resident property owners28
only. Such resident property owners may also each cast one vote for each29
acre of unplatted land or fraction thereof and for each platted lot owned30
within the community improvement district for a candidate for the office31
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of trustee to be filled by election of all property owners. For the1
office of trustee to be filled by election of all property owners of the2
community improvement district, every legal property owner not resident3
within such community improvement district may cast one vote for each4
acre of unplatted land or fraction thereof and one vote for each platted5
lot which such legal property owner owns in the community improvement6
district. 7
(3) The election commissioner or county clerk shall hold any8
election required by subsection (1) of this section by sealed mail ballot9
by notifying the board of trustees on or before July 1 of a given year.10
The election commissioner or county clerk shall, at least twenty days11
prior to the election, mail a ballot and return envelope to each person12
who is entitled to vote at the election and whose property ownership or13
lease giving a right to vote is of record with the register of deeds as14
of the date designated by the election commissioner or county clerk,15
which date shall not be more than eighty days prior to the election. The16
ballot and return envelope shall include: (a) The names and addresses of17
the candidates; (b) room for write-in candidates; and (c) instructions on18
how to vote and return the ballot. Such ballots shall be returned in the19
return envelope to the election commissioner or county clerk no later20
than 5 p.m. on the date set for the election. If the ballot is not21
returned in the return envelope, such ballot shall not be counted. If22
more than one ballot is included in the same return envelope, such23
ballots shall not be counted and shall be reinserted into the return24
envelope which shall be resealed and marked rejected.25
Sec. 15. (1)(a) At any election held to elect trustees of a26
community improvement district, the ballots shall be received, counted,27
and canvassed by an election board of two or more persons appointed by28
the election commissioner or county clerk. 29
(b) Such board shall select one of their number as chairperson and30
one of their number as clerk. In case of a vacancy on such board, a new31
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member shall be appointed pursuant to subdivision (a) of this subsection.1
(2) For any community improvement district, the election2
commissioner or county clerk shall certify the results of the election to3
the community improvement district. 4
(3) If an election is contested involving a community improvement5
district board of trustees, the Election Act shall apply.6
Sec. 16. Not later than June first of each year, the election7
commissioner or county clerk shall determine which community improvement8
districts in the county are required to hold elections in such year and9
shall so notify the clerk of each such community improvement district on10
or before July first of such year. The entire costs of conducting the11
election shall be borne by the community improvement district holding the12
election, and such costs shall include all expenses such as procuring a13
list of the property owners of record in each such community improvement14
district, printing and mailing notices of the elections to such property15
owners, printing, preparing, and mailing ballots, paying compensation and16
mileage for the election boards conducting such elections, and also17
indirect expenses, such as the pro rata amount of any additional clerical18
expense or other miscellaneous expenses to be incurred by the election19
commissioner or county clerk in conducting all of such elections to be20
held in such calendar year. Within sixty days after the elections have21
been held, each community improvement district shall be charged and22
billed for all of the actual expenses incurred by the election23
commissioner or county clerk attributable to such community improvement24
district. Payment of the total amount billed to the community improvement25
district shall be in currency and made by the attorney for the community26
improvement district to the election commissioner or county clerk within27
sixty days after receipt of such billing. 28
Sec. 17. Notwithstanding the appointment of an administrator for29
any community improvement district pursuant to sections 42 to 51 of this30
act, special elections shall be held for the election of members of the31
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board of trustees for such community improvement district in the same1
manner and at the same time as such elections would be held under2
sections 14 and 15 of this act. In a community improvement district for3
which such an administrator has been appointed when the board of trustees4
of such community improvement district is not functioning, the5
administrator shall cause a special election of trustees to be held6
within sixty days after the issuance of a certificate of appointment of7
such administrator, at which election a board of trustees shall be8
elected to a term of office which shall expire on the first Tuesday of9
the second September following the appointment of such administrator. The10
board of trustees shall have five members unless the board has amended11
its articles of association to decrease the number of trustees on the12
board to three members pursuant to subdivision (2)(d) of section 14 of13
this act. 14
Sec. 18. A community improvement district may acquire by purchase,15
condemnation, or otherwise, real or personal property, right-of-way, and16
privilege, within or without its corporate limits, necessary for its17
corporate purposes. Such acquisition by the community improvement18
district may be effected only after approval by the city or village19
having zoning jurisdiction over such property. The approval of plans and20
specifications for the public improvement or project, or the approval of21
plans and exact costs for public parks, playgrounds, and recreational22
facilities, as required by section 22 of this act, shall be deemed to be23
approval for the acquisition by the community improvement district of24
such fee title, easements, or other interests in such property as may be25
required for the public improvement or project. 26
Sec. 19. Whenever the board of trustees or administrator of any27
community improvement district shall by order determine to make any28
public improvement under the provisions of the Community Improvement29
District Act which shall require that private property be taken or30
damaged, the community improvement district may exercise the power of31
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eminent domain. The procedure to condemn property shall be exercised in1
the manner set forth in sections 76-704 to 76-724. Such taking by the2
community improvement district may be effected only after approval by the3
city or village having any zoning jurisdiction over such property.4
Sec. 20. Whenever it shall be necessary, in making any improvement5
under the provisions of the Community Improvement District Act, to enter6
upon or cross any state or public lands, the community improvement7
district shall have the right to acquire a right-of-way across the same8
by the exercise of the power of eminent domain. 9
Sec. 21. (1) The community improvement district shall have the10
power to annually levy a tax on the taxable value of the taxable property11
in the community improvement district at an aggregate rate not to exceed12
the levy rate specified in the articles of organization and approved by13
ordinance of the city or village pursuant to section 6 of this act, the14
proceeds of which shall be deposited to and held in the general fund,15
bond fund, or other fund or account established as determined by the16
board of trustees of such community improvement district, and used for17
payment of bonds and warrants, and other general corporate purposes of18
the community improvement district as permitted by the Community19
Improvement District Act. 20
(2) The county treasurer of the county in which the greater portion21
of the area of the community improvement district is located shall be ex22
officio treasurer of the community improvement district and shall be23
responsible for all funds of the community improvement district coming24
into his or her hands. As treasurer of the community improvement district25
he or she shall (a) establish such funds and accounts on behalf of the26
community improvement district as he or she determines necessary or27
appropriate at the direction of the board of trustees of the community28
improvement district and (b) collect all taxes and special assessments29
levied by the community improvement district and deposit the same in the30
appropriate funds and accounts of the community improvement district for31
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the payment of principal and interest on any bonds, warrants, and other1
obligations outstanding and for general corporate purposes of the2
community improvement district, all in accordance with action of the3
board of trustees of the community improvement district.4
(3) The treasurer of the community improvement district shall not be5
responsible for funds of the community improvement district until they6
are received by him or her. The treasurer of the community improvement7
district shall disburse the funds of the community improvement district8
upon the direction of the trustees or the administrator and signed by the9
chairperson and clerk of the community improvement district or the10
administrator, including issuance of warrants and other action of the11
board of trustees. 12
Sec. 22. (1) The board of trustees or the administrator of any13
community improvement district organized under the Community Improvement14
District Act shall have power to: 15
(a) Construct, install, improve, equip, maintain, and repair public16
infrastructure in or related to such community improvement district; and17
(b) Contract with the city or village or other political subdivision18
in which such community improvement district is located for any public19
purpose of such community improvement district, city or village, or other20
political subdivision. 21
(2) Prior to the installation of any of the public infrastructure or22
entering into a contract for any capital improvement with another23
political subdivision, the plans or contracts for such improvements or24
services and estimated costs shall be approved by the city or village in25
which the community improvement district is located. The community26
improvement district shall obtain approval of such plans for such27
improvements, and any changes thereto, from the city or village in which28
the community improvement district is located, and such city or village29
shall enforce compliance with such plans by action in equity.30
(3)(a) Each community improvement district shall have the books of31
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account kept by the board of trustees of the community improvement1
district examined and audited by a certified public accountant or a2
public accountant for the year ending June 30 and shall file a copy of3
the audit with the office of the Auditor of Public Accounts by December4
31 of the same year. Such audits may be waived by the Auditor of Public5
Accounts upon proper showing by the community improvement district that6
the audit is unnecessary. Such examination and audit shall show the7
following: 8
(i) The gross income of the community improvement district from all9
sources for the previous year; 10
(ii) The amount expended each year for (A) maintenance and repairs,11
(B) new equipment, (C) new construction work, and (D) property purchased;12
(iii) A detailed statement of all items of expense;13
(iv) The total amount of taxes levied upon the property within the14
community improvement district; and 15
(v) All other facts necessary to give an accurate and comprehensive16
view of the cost of carrying on the activities and work of such community17
improvement district. 18
(b) The reports of all audits provided for in this subsection shall19
be and remain a part of the public records in the office of the Auditor20
of Public Accounts. The expense of such audits shall be paid out of the21
funds of the community improvement district. The Auditor of Public22
Accounts shall be given access to all books and papers, contracts,23
minutes, bonds, and other documents and memoranda of every kind and24
character of such community improvement district and be furnished all25
additional information possessed by any present or past officer or26
employee of any such community improvement district, or by any other27
person, that is essential to the making of a comprehensive and correct28
audit. 29
(4) If any community improvement district fails or refuses to cause30
such annual audit to be made of all of its functions, activities, and31
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transactions for the fiscal year within a period of six months following1
the close of such fiscal year, unless such audit has been waived, the2
Auditor of Public Accounts shall, after due notice and a hearing to show3
cause by such community improvement district, appoint a certified public4
accountant or public accountant to conduct the annual audit of the5
community improvement district and the fee for such audit shall become a6
lien against the community improvement district. 7
(5) Whenever the sanitary sewer system or any part thereof of a8
community improvement district is directly or indirectly connected to the9
sewerage system of any city or village, such city or village, without10
enacting an ordinance or adopting any resolution for such purpose, may11
collect such city's or village's applicable rental or use charge from the12
users in the community improvement district and from the owners of the13
property served within the community improvement district. The charges of14
such city or village shall be charged to each property served by the city15
or village sewerage system, shall be a lien upon the property served, and16
may be collected from the owner or the person, firm, or corporation using17
the service. If the city's or village's applicable rental or service18
charge is not paid when due, such sum may be recovered by the city or19
village in a civil action or it may be assessed against the premises20
served as a special assessment and may be assessed by such city or21
village and collected and returned in the same manner as other municipal22
special assessments are enforced and collected. When any such assessment23
is levied, it shall be the duty of the city or village clerk to deliver a24
certified copy of the ordinance to the county treasurer of the county in25
which the premises assessed are located and such county treasurer shall26
collect the assessment as provided by law and return the assessment to27
the city or village treasurer. Funds of such city or village raised from28
such charges shall be used by it in accordance with laws applicable to29
its sewer service rental or charges. The governing body of any city or30
village may make all necessary rules and regulations governing the direct31
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or indirect use of its sewerage system by any user and premises within1
any community improvement district and may establish just and equitable2
rates or charges to be paid to such city or village for use of any of its3
disposal plants and sewerage system. The board of trustees may, in4
connection with the issuance of any warrants or bonds of the community5
improvement district, agree to make a specified minimum levy on taxable6
property in the community improvement district to pay, or to provide a7
sinking fund to pay, principal and interest on warrants and bonds of the8
community improvement district for such number of years as the board may9
establish at the time of making such agreement and may agree to enforce,10
by foreclosure or otherwise as permitted by applicable laws, the11
collection of special assessments levied by the community improvement12
district. Such agreements may contain provisions granting to creditors13
and others the right to enforce and carry out the agreements on behalf of14
the community improvement district and its creditors.15
(6) The board of trustees or administrator shall have power to sell16
and convey real and personal property of the community improvement17
district on such terms as it or he or she shall determine, except that18
real estate shall be sold to the highest bidder at public auction after19
notice of the time and place of the sale has been published for three20
consecutive weeks prior to the sale in a newspaper of general circulation21
in the city or village. The board of trustees or administrator may reject22
such bids and negotiate a sale at a price higher than the highest bid at23
the public auction at such terms as may be agreed.24
(7) A community improvement district shall be subject to all25
regulatory authority, zoning jurisdiction, and other jurisdictional26
provision of the city or village in which such community improvement27
district is located. Each community improvement district shall have and28
the board of trustees may exercise, subject to the regulatory29
jurisdiction and permitting authority of such city or village and all30
other applicable governing bodies and agencies having authority with31
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respect to any area included in the community improvement district, the1
powers relating to public infrastructure and other improvements provided2
in this section and authorized by the Community Improvement District Act.3
Sec. 23. Whenever a majority of the board of trustees shall deem it4
advisable to amend the articles of association of the community5
improvement district to change the maximum permitted levy rate, and after6
a proposed amendment to the articles of association has been signed by a7
majority of the owners having an interest in the real property within the8
limits of the community improvement district, the community improvement9
district clerk shall file an application for such amendment with the city10
or village clerk with a request that the maximum permitted levy rate be11
changed, all in the same manner as approval of the initial articles of12
association pursuant to the Community Improvement District Act. The city13
or village clerk shall process any such request in the same manner as an14
initial application for approval of articles of association, shall15
schedule a hearing, publish notices, and mail notices to any owner of16
property in the community improvement district who did not sign the17
proposed amendment, and such city council or village board of trustees18
may approve the proposed amendment by ordinance in a similar manner to19
the initial articles of association as provided in section 6 of this act.20
Sec. 24. All contracts for construction work to be done or21
materials or equipment purchased, the expense of which is more than fifty22
thousand dollars, shall be let to the lowest responsible bidder, upon23
notice of not less than twenty days, of the terms and conditions of the24
contract to be let. The board of trustees or the administrator shall have25
the power to reject any and all bids and readvertise for the letting of26
such work or to negotiate any contract after an unsuccessful public27
letting. 28
Sec. 25. (1) Whenever the board of trustees or the administrator29
deems it advisable or necessary to build, reconstruct, purchase, or30
otherwise acquire public infrastructure improvements or to incur other31
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costs permitted by the Community Improvement District Act, the board of1
trustees shall declare the advisability and necessity therefor in a2
proposed resolution. 3
(2) Such proposed resolution of necessity shall refer to the plans4
and specifications for the proposed improvements, proposed agreements or5
contracts, together with the estimated cost thereof which have been made6
and filed with the community improvement district clerk before the7
publication of such resolution. The proposed resolution shall state the8
amount of such estimated cost. 9
(3) Except as provided in subsection (4) of this section, the board10
of trustees or the administrator may assess, to the extent of special11
benefits, the cost of such improvements upon properties specially12
benefited thereby. The resolution shall state the outer boundaries of the13
area within the community improvement district in which it is proposed to14
make special assessments. 15
(4) Notwithstanding anything to the contrary in the Community16
Improvement District Act, a community improvement district shall not17
specially assess the cost of public infrastructure for redevelopment18
unless and until such community improvement district has obtained prior19
approval by resolution of the city council or village board of trustees.20
Sec. 26. (1) Notice of the time and place, which place shall be in21
the city or village where the community improvement district is22
organized, when any resolution proposed under section 25 of this act23
shall be set for consideration before the board of trustees or the24
administrator, shall be given the same day each week two consecutive25
weeks in a newspaper of general circulation published in the city or26
village where the community improvement district was organized, which27
publication shall contain the entire wording of the proposed resolution.28
The last publication shall not be less than five days nor more than two29
weeks prior to the time set for hearing on objections to the adoption of30
any such proposed resolution, at which hearing the owners of the property31
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which might become subject to assessment for the contemplated improvement1
may appear and make objections to the proposed improvement. Thereupon the2
resolution may be amended and adopted or adopted as proposed.3
(2) If a petition opposing the proposed resolution, signed by4
property owners representing a majority of the front footage which may5
become subject to assessment for the cost of any improvements as set6
forth by the proposed resolution, is filed with the clerk of the7
community improvement district within three days before the date of the8
meeting for the hearing on such proposed resolution, such proposed9
resolution shall not be adopted. 10
Sec. 27. Upon compliance with sections 25 and 26 of this act, the11
board of trustees or the administrator may by resolution order the12
contracting, making, reconstruction, purchase, or otherwise acquiring of13
any of the improvements provided for in the Community Improvement14
District Act. 15
Sec. 28. After ordering any such improvements, other than payment16
of contracts to other political subdivisions, as provided in the17
Community Improvement District Act, the board of trustees or the18
administrator may enter into a contract for the construction of such19
improvement in one or more contracts, but no work shall be done or20
contract let until notice to contractors has been published in a legal21
newspaper of general circulation in the city or village where the22
community improvement district is organized. The notice shall be23
published the same day each week two consecutive weeks in such newspaper24
and shall generally state (1) the extent of the work, (2) the kinds of25
material to be bid upon, including in such notice all kinds of material26
mentioned in the resolution as provided in section 25 of this act, (3)27
the amount of the engineer's estimate of the cost of such improvements,28
(4) the time when bids will be received, and (5) the amount of the29
certified check or bid bond required to accompany the bids. Each bid30
shall be accompanied in a separate sealed envelope by a certified check31
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or bid bond in an amount to be named in the notice, which amount shall be1
not less than five percent of the engineer's total estimate of the cost,2
and shall be made payable to the treasurer of the community improvement3
district as security that the bidder to whom the contract may be awarded4
will enter into a contract to build the improvements in accordance with5
the notice to contractors and give bond in the sum named in such notice6
for the construction of such improvements as the notice required. Checks7
or bonds accompanying bids not accepted shall be returned to the bidders.8
The work provided for in this section shall be done under written9
contract with the lowest responsible bidder on the material selected10
after the bids are opened and in accordance with the requirements of the11
plans and specifications. The board of trustees or the administrator may12
reject any or all bids received and advertise for new bids in accordance13
with this section. 14
Sec. 29. If the contractor has furnished the community improvement15
district all required records and reports, the community improvement16
district shall pay the contractor interest at the rate specified in17
section 39-1349, as such rate may from time to time be adjusted by the18
Legislature, on any contract amount retained and the final payment due19
the contractor beginning twenty days after completion of the work covered20
by the contract under section 28 of this act. The contractor shall notify21
the community improvement district in writing that the work has been22
completed and the community improvement district, within twenty days23
after receipt of such notice, shall give written notice to the contractor24
of any objections by the community improvement district to acceptance of25
the work. 26
Sec. 30. (1) After the completion of any work or purchase, the27
engineer shall file with the clerk of the community improvement district,28
and the clerk of the city or village, a certificate of acceptance. Such29
work or purchase shall be considered accepted only after approval by the30
city or village, and then by the board of trustees or the administrator31
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by resolution. 1
(2) Upon approval of the certificate of acceptance, if the board of2
trustees determines special assessments are to be levied, the board of3
trustees or administrator shall require the engineer to make a complete4
statement of all the costs of any such improvements, a plat of the5
property in the community improvement district, and a schedule of the6
amount proposed to be assessed against each separate piece of property in7
such community improvement district. The statement, plat, and schedule8
shall be filed with the clerk of the community improvement district9
within sixty days after the date of acceptance. 10
(3) The board of trustees or administrator shall set a time and11
place for a hearing on the proposed assessments as provided in subsection12
(6) of this section, then order the clerk of the community improvement13
district to give notice of such hearing and that such statement, plat,14
and schedules are on file in his or her office and that all objections15
thereto or to prior proceedings on account of errors, irregularities, or16
inequalities not made in writing and filed with the clerk of the17
community improvement district within twenty days after the first18
publication of such notice shall be deemed to have been waived. Such19
notice shall be given by publication the same day each week two20
consecutive weeks in a newspaper of general circulation published in the21
city or village where the community improvement district was organized.22
Such notice shall state the time and place where any objections, filed as23
provided in this section, shall be considered by the board of trustees or24
administrator. 25
(4) The cost of such improvements in the community improvement26
district shall be levied as special assessments to the extent of special27
benefits to the property. The complete statement of costs and the28
schedule of proposed special assessments for such improvements shall be29
given to the city or village where such community improvement district is30
located within seven days after the first publication of notice of31
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statement, plat, and schedules. The city or village shall have the right1
to be heard, and shall have the right of appeal from a final2
determination by the board of trustees or administrator against3
objections which such city or village has filed. 4
(5) Notice of the proposed special assessments for such improvements5
against each separate piece of property shall be given to each owner of6
record thereof within five days after the first publication of notice of7
statement, plat, and schedules and, within five days after the first8
publication of such notice, a copy thereof, along with statements of9
costs and schedules of proposed special assessments, shall be given to10
each person or company who, pursuant to written contract with the11
community improvement district, has acted as underwriter or municipal12
advisor for the community improvement district in connection with the13
sale or placement of warrants or bonds issued by the community14
improvement district. Each owner shall have the right to be heard and15
shall have the right of appeal from the final determination made by the16
board of trustees or administrator. 17
(6) The hearing on the proposed assessment shall be held by the18
board of trustees or the administrator sitting as a board of adjustment19
and equalization at the time and place specified in such notice and not20
less than twenty days nor more than thirty days after the date of the21
first publication, unless such session be adjourned, with provisions for22
proper notice of such adjournment. At such meeting, the proposed23
assessments shall be adjusted and equalized with reference to benefits24
resulting from the improvement and shall not exceed such benefits.25
Sec. 31. Any person or any city or village aggrieved may appeal to26
the district court by filing a petition within twenty days after the27
final determination under section 30 of this act. The court shall hear28
and determine the appeal in a summary manner as in equity, without a29
jury, and shall increase or reduce the special assessments as necessary30
to ensure that the special assessments are in the full amount of the31
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special benefits and that the apportionment of benefits is equitable.1
Sec. 32. (1) After the equalization of such special assessments as2
required by the Community Improvement District Act, such special3
assessments shall be levied by the board of trustees or the administrator4
upon all lots or parcels of ground within the community improvement5
district which are benefited by reason of such improvement, such levy to6
be made within six months after acceptance of the improvement by the7
board of trustees or the administrator. Failure to levy assessments8
within such six-month period shall not invalidate assessments made after9
the six-month period. Such special assessments may be relevied, if for10
any reason the levy thereof is void or not enforceable. Such levy shall11
be enforced as other special assessments and any payments thereof under12
previous levies shall be credited to the person or property making the13
same. Not less than eleven and not more than twenty days after the14
levying of any special assessment, the clerk of the community improvement15
district shall certify such levy to the county treasurer and county clerk16
of the county. 17
(2) If a notice of appeal from such levy has been filed with the18
clerk of the community improvement district, he or she shall note on the19
certificate of levy that an appeal has been commenced and that the20
amounts of the assessments are subject to redetermination pursuant to the21
appeal. All receipts given by the county treasurer for special22
assessments as to which an appeal is pending shall show thereon that the23
special assessment amount is subject to redetermination by the appeal.24
Upon termination of any appeal, the clerk of the community improvement25
district shall so certify to the county clerk and county treasurer. All26
assessments made for such purposes shall be collected in the same manner27
as general taxes and shall be subject to the same penalties or may be28
collected pursuant to section 77-1917.01. 29
Sec. 33. (1) The board of trustees or the administrator shall not30
cause the following property to be assessed for any of the improvements31
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provided for in the Community Improvement District Act: (a) Property by1
law not assessable, (b) property not included within the area defined in2
the preliminary resolution, and (c) property not benefited.3
(2) The exemption in subsection (1) of this section does not apply4
if the exempt property has been specially benefited by the improvements.5
In such cases, the owner of such property shall pay the community6
improvement district a sum equivalent to the amount the property has been7
specially benefited, which amount may be recovered by the community8
improvement district in an action against the property owner. If the9
parties do not agree as to the amount of the special benefits, the amount10
may be determined by the district court in an action brought by the11
community improvement district for such purpose. 12
(3) The board of trustees or the administrator may find that any13
part or all of such improvements made are of general benefit to the14
community improvement district, and the board or administrator may levy15
special assessments on all lots, parcels, or pieces of real estate16
specially benefited to the extent of the special benefits to such17
property. The cost of such improvements shall be paid from the18
assessments levied against all the property in the community improvement19
district, in the manner provided by section 36 of this act, or may be20
paid from unappropriated money in its general fund. The cost of the21
improvements shall draw interest at the rate of six percent per annum22
from the date of acceptance thereof by the board or administrator until23
warrants are issued for, or payment is otherwise provided, in payment of24
the contract price. 25
Sec. 34. All special assessments provided for in section 32 of this26
act shall become due in fifty days after the date of the levy and may be27
paid within that time without interest, but if not so paid they shall28
bear interest thereafter on a per annum basis until delinquent at the29
greater of (1) the rate of interest accruing on warrants registered30
against such community improvement district sixty days prior to the31
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actual levy of the special assessments or (2) the average rate of1
interest accruing on the warrants issued to pay for the improvements for2
which the special assessments are to be levied adjusted to the next3
greater one-half percent. Such assessments shall become delinquent in4
equal annual installments over such periods of years, not exceeding5
twenty, as the board of trustees or the administrator may determine at6
the time of making the levy. Delinquent installments shall bear interest7
at the rate of two percent per annum above the rate set by the community8
improvement district on such installments before delinquency, except that9
no such rate shall exceed the rate specified in section 45-104.01, as10
such rate may from time to time be adjusted by the Legislature. If three11
or more installments shall be delinquent, the board of trustees or the12
administrator may declare all of the remaining installments to be at once13
delinquent and such installments declared delinquent shall bear interest14
at the rate specified in section 45-104.01, as such rate may from time to15
time be adjusted by the Legislature, until paid and may be collected the16
same as other delinquent installments may be collected.17
Sec. 35. All special assessments provided by the Community18
Improvement District Act and all connection charges collected shall, when19
levied, constitute a sinking fund for the purpose of paying the cost of20
the improvements provided for in the Community Improvement District Act21
with allowable interest thereon and shall be solely and strictly applied22
to such purpose to the extent required. Any excess thereof may be by the23
board or the administrator, after fully discharging the purposes for24
which levied, transferred to such other fund or funds as the board of25
trustees or the administrator may deem advisable. 26
Sec. 36. (1) For the purpose of paying the cost of public27
infrastructure improvements and other corporate purposes as provided for28
in the Community Improvement District Act, the board of trustees or the29
administrator shall have the power to issue negotiable bonds of any such30
community improvement district, to be called community improvement31
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district bonds, payable in not to exceed thirty years, and payable from1
the maximum levy approved in the articles of association of the community2
improvement district and other available funds. Each issue of bonds shall3
mature or be subject to mandatory redemption so that the first principal4
repayment is made not more than five years after the date of issuance and5
so that at least twenty percent of the community improvement district's6
bonds then outstanding shall be repaid within ten years after the date of7
issuance. Such bonds shall bear interest payable annually or8
semiannually. Such bonds may either be sold by the community improvement9
district or delivered to the contractor in payment for the work but in10
either case for not less than their par value. For the purpose of making11
partial payments as the work progresses, warrants may be issued by the12
board of trustees or the administrator upon certificates of the engineer13
in charge showing the amount of work completed and materials necessarily14
purchased and delivered for the orderly and proper continuation of the15
project, in a sum not to exceed ninety-five percent of the cost thereof.16
(2)(a) Warrants issued for capital outlays of the community17
improvement district shall become due and payable not later than five18
years from the date of issuance, except that such warrants need not be19
retired on such date or within such five-year period and shall not be in20
default if the district court of the county determines, upon application21
by the community improvement district, that the community improvement22
district does not have the funds to retire such warrants and either (i)23
the community improvement district is unable to sell its bonds in an24
amount sufficient to retire such warrants or (ii) an unreasonably high25
tax levy, as compared to the levy on other similar property in the county26
that is also located within a community improvement district, would be27
required in order to cover the debt service requirements on bonds issued28
to retire such warrants. Warrants issued to pay interest on capital29
outlay warrants shall become due and payable in the same time as capital30
outlay warrants. 31
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(b) The community improvement district may file the application with1
the district court either before or within ninety days after the due date2
of the warrants, and no warrant for which an extension application has3
been made to the district court and a hearing date set by the court shall4
be in default while such application is pending before the court. Notice5
of the filing of such application and the time and place of the hearing6
thereon shall be published in a newspaper of general circulation in the7
city or village the same day each week for three consecutive weeks.8
Within five days after the first publication of such notice, the9
community improvement district shall cause to be mailed, by United States10
certified mail, a copy of such notice to each holder of warrants covered11
by the application whose name and post office address are known to the12
community improvement district. Prior to the hearing, proof of such13
mailing shall be made by affidavit of a trustee of the community14
improvement district, the administrator, or the community improvement15
district's attorney that such mailing was made and further that the16
community improvement district, its trustees or administrator, and its17
attorney, after diligent investigation and inquiry, were unable to18
ascertain and do not know the name and post office address of any holder19
of such warrants other than those to whom notice has been mailed in20
writing or who have waived notice in writing or entered an appearance in21
the proceeding. 22
(c) Upon making its determination, the district court may make such23
orders concerning retirement of the warrants as it determines proper24
under the circumstances of the community improvement district, including25
ordering an increase in the tax levy of the community improvement26
district to provide funds for warrant redemption, except that no court-27
ordered tax levy for redemption of warrants shall cause the total tax28
levy of the community improvement district to be unreasonably high as29
compared with the tax levy of other similar property in the county that30
is also located within a community improvement district. Such warrants31
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shall draw interest, at such rate as fixed by the board of trustees or1
the administrator and endorsed on the warrants, from the date of2
presentation for payment and shall be redeemed and paid from the proceeds3
of special assessments or from the sale of the bonds issued and sold as4
provided in this section or from any other funds available for that5
purpose. Bonds to redeem such warrants shall be issued as soon as6
economically feasible, and to the extent warrants are not redeemed from7
bond proceeds or other funds available for such purpose, the community8
improvement district shall make a tax levy to provide a sinking fund for9
warrant redemption, except that such obligation shall not require a total10
tax levy by the community improvement district which shall be11
unreasonably high as compared with the tax levy on other similar property12
in the county that is also located within a community improvement13
district. The board of trustees or the administrator shall pay to the14
contractor interest at the rate specified in section 39-1349, as such15
rate may from time to time be adjusted by the Legislature, on the amounts16
due on partial and final payments, beginning thirty days after the17
certification of the amounts due by the engineer in charge and approval18
by the board of trustees or the administrator and running until the date19
that the warrant is tendered to the contractor. 20
(d) A default on the bonds or warrants of a community improvement21
district shall not constitute a debt or obligation of the city or village22
where such community improvement district is located, the county, or the23
state. 24
(3) Warrants issued for operation and maintenance expenses of the25
community improvement district shall be issued not later than sixty days26
following the date upon which the community improvement district is in27
receipt of a bill for the amount of operation or maintenance expenses28
owed, and such warrants shall become due and payable not later than three29
years from the date of issuance. If a warrant for operation or30
maintenance expenses is not issued within such sixty-day period, the31
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amount owed by the community improvement district shall bear interest1
from the sixty-first day until the date upon which the warrant is issued2
at a rate equivalent to one and one-half times the rate specified in3
subsection (2) of section 45-104.02. The community improvement district4
shall agree to pay annual or semiannual interest on all capital outlay5
warrants issued by the community improvement district and shall issue6
warrants to pay such interest or shall issue its warrants in return for7
cash to pay such interest. Warrant interest not paid when due for lack of8
funds shall be registered, bear interest, and be paid the same as is9
provided in section 10-209 for bond coupons. 10
(4) The community improvement district may, if determined11
appropriate by the board of trustees or the administrator, pay fees to12
attorneys, municipal advisors, underwriters, and other professionals in13
connection with the placement and registration of ownership of warrants14
issued by the community improvement district. 15
(5) The board of trustees or the administrator may levy special16
assessments on all lots, parcels, or pieces of real estate benefited by17
the improvement to the extent of the benefits to such property. The18
special assessments when collected shall be set aside and constitute a19
sinking fund for the payment of the interest and principal of such bonds,20
warrants, and other obligations of the community improvement district.21
(6) In addition to the special assessments provided for in this22
section, there shall be levied annually a tax upon the taxable value of23
all the taxable property in such community improvement district which,24
together with such sinking fund derived from special assessments, shall25
be sufficient to meet payments of interest and principal on all bonds as26
such become due, subject to the overall limit on the tax levy rate of27
such community improvement district established upon formation of such28
community improvement district. Such tax levy shall be known as the29
community improvement district bond tax levy and shall be paid annually.30
(7)(a) The board of trustees of any community improvement district31
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may provide for the publication of any resolution or other proceeding1
adopted by it pursuant to the Community Improvement District Act in a2
newspaper of general circulation published in the city or village where3
the community improvement district is located. In the case of a4
resolution or other proceeding providing for the issuance of bonds,5
warrants, or other obligations, pursuant to the Community Improvement6
District Act, the board of trustees or clerk of such community7
improvement district may, either before or after the adoption of such8
resolution or resolutions or other proceeding, in lieu of publishing the9
entire resolution or resolutions or other proceeding, publish a notice of10
intention to issue bonds, warrants, or other obligations under the11
Community Improvement District Act, titled to indicate such intention,12
containing: 13
(i) The name of the community improvement district;14
(ii) The estimated principal amount of bonds, warrants, or other15
obligations proposed to be issued and the timeframe when such issuance or16
issuances are expected to occur; 17
(iii) The proposed or estimated principal maturity schedule or term18
for such bonds, warrants, or other obligations; 19
(iv) The maximum rate of interest payable on any maturity of such20
bonds, warrants, or other obligations; and 21
(v) The times and place where a copy of the form of resolution or22
other proceeding providing for the issuance of the bonds, warrants, or23
other obligations may be examined, which shall be located in the city or24
village where the community improvement district is located or in the25
office of the county clerk in the county where such community improvement26
district is located, for a period of at least thirty days after the27
publication of such notice. In the case of a notice regarding issuance of28
warrants, the notice may include warrants expected to be approved by29
multiple future resolutions or other proceedings and the form of30
resolution or other proceedings may be general forms for such issuance.31
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(b) For a period of thirty days after such publication, any1
interested person shall have the right to contest (i) the legality and2
validity of each and all of the proceedings for the organization of such3
community improvement district under the Community Improvement District4
Act, from and including the petition for the organization of the5
community improvement district, and all other proceedings which may6
affect the legality or validity of the bonds, warrants, or other7
obligations and the order of the sale and the sale thereof, (ii) any8
provisions made for the security and payment of such bonds, warrants, or9
other obligations, or (iii) any contract of purchase, sale, or lease10
relating to the issuance of such bonds, warrants, or other obligations.11
After such time no one shall have any cause of action to contest the12
regularity, formality, or legality thereof for any cause whatsoever.13
Sec. 37. (1) The community improvement district may be enlarged and14
additional territory annexed to the community improvement district.15
Initiation of any such enlargement shall be by petition filed with the16
clerk of the community improvement district, signed by persons owning not17
less than fifty percent of the area to be annexed. Upon approval by the18
board of trustees of such community improvement district, the clerk of19
the community improvement district shall file (a) an application for such20
annexation with the city or village clerk with a request that the21
annexation be approved, all in the same manner as approval of the initial22
articles of association of such community improvement district pursuant23
to the Community Improvement District Act and (b) notify the county24
clerk, election commissioner, and register of deeds of each county or25
counties in which the community improvement district is located of the26
proposed annexation. The city or village clerk shall process any such27
application in the same manner as an initial application for approval of28
the articles of association for such community improvement district and29
shall schedule a hearing, publish notices, and mail notices to any owner30
of property in the area proposed to be annexed who did not sign the31
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petition for annexation. The city council or village board of trustees1
may approve the proposed amendment by ordinance in a similar manner to2
the initial articles of association as provided in the Community3
Improvement District Act. 4
(2) All property, from and after annexation to the community5
improvement district as provided in subsection (1) of this section, shall6
be subject to all taxes and other burdens thereafter levied by the7
community improvement district, regardless of when the obligation for8
which the taxes or assessments are levied was incurred.9
Sec. 38. (1) Whenever a majority of the board of trustees or the10
administrator of any community improvement district organized under the11
Community Improvement District Act desires that the community improvement12
district shall be wholly dissolved, the trustees or administrator shall13
first propose a resolution declaring the advisability of such dissolution14
and setting out verbatim the terms and conditions thereof, and also15
setting out the time and place when the board of trustees or16
administrator shall meet to consider the adoption of such resolution.17
Notice of the time and place when the resolution shall be set for18
consideration shall be delivered to the city or village clerk and the19
county clerk, election commissioner, and register of deeds of each county20
or counties in which the community improvement district is located at21
least forty-five days prior to such date. Notice of the time and place22
when the resolution shall be set for consideration shall be published the23
same day each week for two consecutive weeks in a newspaper of general24
circulation published in the city or village where the community25
improvement district was organized, which publication shall contain the26
entire wording of the proposed resolution. The trustees or administrator27
shall mail a copy of such proposed resolution to any city or village in28
which any part of the community improvement district is located within29
five days after the date of first publication of the resolution. The last30
publication shall be not less than five days nor more than two weeks31
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prior to the time set for hearing on objections to the passage of the1
resolution, at which hearing the owners of property within the community2
improvement district, or any city or village in which any part of the3
community improvement district is located, may appear and make objections4
to the proposed resolution. 5
(2) If (a) a petition opposing the proposed resolution of6
dissolution is signed by property owners representing a majority of the7
area of real estate within the community improvement district or (b) a8
resolution is adopted by the city council or village board of trustees9
opposing such dissolution and either is presented to the board of10
trustees or the administrator on or prior to the hearing date, then the11
board of trustees or the administrator shall not adopt such resolution.12
(3) If the owners representing a majority of the area of real estate13
within the community improvement district fail to sign and present to the14
board or to the administrator, on or prior to the hearing date, a written15
petition opposing the proposed resolution of dissolution, or if a16
resolution opposing such dissolution is not adopted by the village board17
of trustees or city council, then a majority of the board of trustees or18
the administrator may pass the resolution and thereby adopt the proposed19
dissolution. After the board of trustees or the administrator has adopted20
such resolution of dissolution, the clerk of the community improvement21
district shall prepare and file a certified copy of the resolution of22
dissolution in the office of the city or village clerk where the original23
articles of association were filed and in the office of the Secretary of24
State. 25
(4) A proposed resolution of dissolution shall not be adopted if the26
community improvement district is obligated on any outstanding bonds,27
warrants, or other debts or obligations unless the holders of such bonds,28
warrants, or other debts or obligations shall all sign written consents29
to the dissolution prior to the adoption of the resolution of30
dissolution. 31
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Sec. 39. (1) Whenever a majority of the respective boards of1
trustees or the administrators of two community improvement districts2
organized under the Community Improvement District Act, organized within3
the same city or village shall desire that one of the community4
improvement districts shall wholly merge into the other community5
improvement district, the trustees or administrators shall first propose6
a joint resolution declaring the advisability of such merger and setting7
out verbatim the terms and conditions thereof and specifying which8
community improvement district shall be the surviving community9
improvement district, and also setting out the time and place when the10
boards of trustees or administrators of the two community improvement11
districts shall meet to consider the adoption of such resolution. Notice12
of the time and place when the two community improvement districts shall13
meet shall be delivered to the city or village clerk and the county14
clerk, election commissioner, and register of deeds of each county or15
counties in which the community improvement district is located at least16
forty-five days prior to such date. 17
(2) The trustees or the administrators shall mail a copy of such18
proposed joint resolution to the city or village clerk within five days19
after the date of first publication of the published notice described in20
this section. Notice of the time and place when such resolution shall be21
set for consideration shall be published the same day each week for two22
consecutive weeks in a newspaper of general circulation published in the23
city or village where the community improvement districts were organized,24
which publication shall contain the entire wording of the proposed25
resolution. The last publication shall be not less than five days nor26
more than two weeks prior to the time set for hearing on objections to27
the passage of the resolution, at which hearing the owners of property28
within either of the community improvement districts or the holders of29
any unpaid bonds, warrants, or other obligations of either community30
improvement district, or any city or village if any part of such31
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community improvement district or community improvement districts lies1
within the area of its zoning jurisdiction, may appear and make2
objections to the proposed resolution. 3
(3) If (a) a petition opposing the proposed resolution of merger is4
signed by (i) property owners representing a majority of the area of real5
estate within either community improvement district or (ii) any holder of6
any unpaid bonds, warrants, or other obligations of either community7
improvement district or (b) a resolution is adopted by the city council8
or village board of trustees opposing such resolution of merger and if9
any such petition or resolution is presented to the boards of trustees or10
administrators on or prior to the hearing date, then the boards of11
trustees or administrators shall not adopt such resolution.12
(4) If a written petition or resolution opposing the proposed13
resolution of merger is not filed, then a majority of the boards of14
trustees or administrators of both community improvement districts may15
pass the resolution and thereby adopt the proposed merger. Upon adoption16
of the proposed resolution by the boards of trustees or administrators of17
both community improvement districts, the clerk of the community18
improvement district or the administrator from both community improvement19
districts shall prepare and file a certified copy of such resolution of20
merger in the office of the city or village clerk where the original21
articles of association of the community improvement districts were filed22
and in the office of the Secretary of State, and thereupon the surviving23
community improvement district shall succeed to and become vested with24
full title to all the property and property rights of every kind,25
contracts, obligations, and choses in action of every kind held by or26
belonging to the nonsurviving community improvement district, and the27
surviving community improvement district shall also be liable for and28
recognize, assume, and carry out all valid contracts and obligations of29
the nonsurviving community improvement district including all outstanding30
warrants, bonds, or other indebtedness. All taxes, assessments, and31
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demands of every kind due or owing to the nonsurviving community1
improvement district shall be paid to and collected by the surviving2
community improvement district. 3
(5) Upon the filing of the certified copies of the resolution of4
merger as provided in this section, the corporate existence of the5
nonsurviving community improvement district shall thereupon terminate and6
the boundaries of the surviving community improvement district shall be7
extended to include all the territory within the boundaries of the8
nonsurviving community improvement district. A majority of the board of9
trustees or the administrator of the surviving community improvement10
district shall have power, from time to time, to give binding directions11
in writing to the county treasurer of the county in which the surviving12
community improvement district is located, directing that the treasurer13
segregate the special assessment funds of the two community improvement14
districts or directing the segregation of the other assets of the two15
community improvement districts or directing the method and priority of16
payment of registered warrants of the two community improvement17
districts, or giving directions to the county treasurer as to other18
problems of fiscal management of the affairs of the two community19
improvement districts involved in the merger. 20
Sec. 40. (1) Whenever a majority of the board of trustees or the21
administrator of any community improvement district organized under the22
Community Improvement District Act, desires that any property within the23
community improvement district be detached from the community improvement24
district, the trustees or the administrator shall first propose a25
resolution declaring the advisability of such detachment and setting out26
verbatim the terms and conditions thereof and also setting out the time27
and place when the board of trustees or the administrator will meet to28
consider the adoption of such resolution. Notice of the time and place29
when the resolution shall be set for consideration shall be delivered to30
the city or village clerk and the county clerk, election commissioner,31
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and register of deeds of each county or counties in which the community1
improvement district is located at least forty-five days prior to such2
date. Notice of the time and place when the resolution shall be set for3
consideration shall be published the same day each week for two4
consecutive weeks in a newspaper of general circulation published in the5
city or village where the community improvement district was organized,6
which publication shall contain the entire wording of the proposed7
resolution. The trustees or administrator shall mail a copy of such8
proposed resolution to the city or village clerk of the city or village9
in which any part of the community improvement district is located within10
five days after the date of first publication of the resolution. The last11
publication shall be not less than five days nor more than two weeks12
prior to the time set for hearing on objections to the passage of the13
resolution, at which hearing the owners of property within the community14
improvement district, or any city or village in which any part of the15
community improvement district is located, may appear and make objections16
to the proposed resolution. 17
(2) If (a) a petition opposing the proposed resolution of detachment18
is signed by property owners representing a majority of the area of real19
estate within the community improvement district or (b) a resolution is20
adopted by the city council or village board of trustees opposing the21
proposed resolution of detachment and such petition or resolution is22
presented to the board of trustees or to the administrator on or prior to23
the hearing date, then the board of trustees or the administrator shall24
not adopt such resolution. 25
(3) If the owners representing a majority of the area of real estate26
within the community improvement district fail to sign and present to the27
board of trustees or the administrator, on or prior to the hearing date,28
a written petition opposing the proposed resolution of detachment, or if29
the city council or village board of trustees fail to adopt a resolution30
opposing such resolution of detachment, then a majority of the board of31
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trustees or the administrator may pass the resolution and thereby adopt1
the proposed detachment. After the board of trustees or the administrator2
has adopted such resolution of detachment, the clerk of the community3
improvement district shall prepare and file a certified copy of the4
resolution of detachment in the office of the city clerk where the5
original articles of association were filed and in the office of the6
Secretary of State, and thereupon the area detached shall become excluded7
and detached from the boundaries of the community improvement district.8
(4) A resolution of detachment proposed under this section shall not9
be adopted if the community improvement district is indebted on any10
outstanding bonds or warrants of the community improvement district11
unless the holders of such bonds and warrants all sign written consents12
to the detachment prior to the adoption of the resolution of detachment.13
Sec. 41. When any land is a part of two community improvement14
districts and the owners of such land desire that it be a part of only15
one community improvement district, such owners shall file their request16
with the trustees or the administrator of each community improvement17
district. The trustees or the administrator of the community improvement18
districts shall meet jointly and develop an agreement for the detachment19
of the land from one of the community improvement districts and the20
adjustment of indebtedness. If the trustees or administrators are unable21
to reach an agreement, they shall file a petition in the district court22
of the county in which such land is located and the court shall have23
jurisdiction to detach the land and adjust the indebtedness. The clerk of24
the community improvement district shall notify the clerk of each city or25
village in which the community improvement districts are located and the26
county clerk, election commissioner, and register of deeds of each county27
or counties in which the community improvement districts are located of28
the agreement for detachment or the filing of the petition in district29
court. 30
Sec. 42. A petition may be filed with the district court of the31
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county in which a majority of the real property of a community1
improvement district is located for referral of the community improvement2
district to the Auditor of Public Accounts for the appointment of an3
administrator of the community improvement district and suspension of the4
authority of the board of trustees or other relief as provided by5
sections 43 to 51 of this act. Such petition may be filed by: (1) A6
majority of the board of trustees of the community improvement district;7
(2) the holders of more than fifty percent in principal amount of the8
outstanding bonds of the community improvement district; (3) the holders9
of more than fifty percent in principal amount of outstanding10
construction fund warrants of the community improvement district; (4) a11
majority of the lessees permitted to vote pursuant to section 14 of this12
act who are residents of the community improvement district and resident13
property owners of the community improvement district; (5) the owners of14
more than one-half of the real property within the community improvement15
district; or (6) a city or village in which the community improvement16
district is located and which exercises zoning jurisdiction over the17
community improvement district. A petition filed by a city or village18
pursuant to subdivision (6) of this section may be filed only on grounds19
that the community improvement district has issued outstanding bonds or20
construction fund warrants which have been in default for more than21
ninety days or the community improvement district lacks a functioning22
board of trustees. 23
Sec. 43. The court shall fix the time for the hearing of the24
petition pursuant to section 42 of this act and shall order the clerk of25
the court to give and publish a notice of the filing of the petition. The26
notice shall be given by publication the same day of the week each week27
for three consecutive weeks. Within five days after the first publication28
of such notice, the petitioner shall cause to be mailed by United States29
mail a copy of such notice to each holder of outstanding warrants and30
bonds, to each member of the board of trustees if the board has not31
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petitioned for the appointment, to the city or village in which the1
community improvement district is located, and to each person whose2
property ownership is of record on the records of the register of deeds3
at least thirty days and not more than forty days prior to the mailing of4
a notice. Notice shall be sent to each bond and warrant holder, trustee,5
and property owner whose name and post office address are known after6
diligent investigation and inquiry. The notice shall state the time and7
place fixed for the hearing of the petition and the prayer of the8
petition, and that any person with an interest in the community9
improvement district may, on or before the day fixed for the hearing of10
the petition, move to join in, dismiss, or answer the petition. The11
petition may be referred to and described in the notice as the petition12
of ................. (giving name of petitioner) praying for the referral13
of the community improvement district to the Auditor of Public Accounts14
for the appointment of an administrator of the community improvement15
district and the suspension of the authority of the board of trustees of16
such community improvement district to exercise the powers granted the17
board of trustees under the Community Improvement District Act during the18
period of such administrator's appointment. 19
Sec. 44. The petition shall state that the community improvement20
district (1) has been in default for more than ninety days on its issued21
and outstanding bonds or construction fund warrants of the community22
improvement district, (2) has levied a tax upon the taxable value of the23
taxable property in the community improvement district which, along with24
the sinking fund derived from special assessments, has not been25
sufficient to meet payments of interest and principal on the issued and26
outstanding bonds of the community improvement district, (3) has failed27
to levy special assessments on all lots, parcels, or pieces of real28
property within the terms provided in section 32 of this act, or (4)29
lacks a functioning board of trustees. The petition shall pray for30
referral of the community improvement district to the Auditor of Public31
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Accounts for the appointment of an administrator for the community1
improvement district and for an order suspending the authority of the2
board of trustees of the community improvement district to exercise the3
powers granted to such board pursuant to the Community Improvement4
District Act during the period of such administrator's appointment or for5
such other relief as the court may determine appropriate.6
Sec. 45. Any person with an interest in the community improvement7
district may join in the petition, move to dismiss the petition, or file8
an answer to such petition. The rules of civil procedure relating to9
motions and answers to a petition shall be applicable to motions and10
answers to the petition in such special proceedings. The persons filing11
motions to dismiss and answering the petition shall be the defendants to12
the special proceedings, and the persons filing the petition or joining13
in the petition shall be the plaintiffs. Every material statement of the14
petition not specially controverted by the answer shall, for the purpose15
of the special proceedings, be taken as true. Each person or party in16
interest failing to answer the petition shall be deemed to admit as true17
all the material statements of the petition. The rules of civil procedure18
relating to pleading and practice which are not inconsistent with the19
provisions of the Community Improvement District Act are applicable to20
the special proceedings in sections 42 to 47 of this act.21
Sec. 46. Upon the hearing of the special proceedings pursuant to22
sections 42 to 47 of this act, the court shall, upon a finding that any23
of the statements in subdivisions (1) through (4) of section 44 of this24
act are true, that the petition has been properly filed and notice of the25
petition has been duly given and published for the time and in the manner26
prescribed in sections 42 to 47 of this act, and that it is in the best27
interest of the community improvement district, have the power and28
jurisdiction to issue an order which refers the community improvement29
district to the Auditor of Public Accounts for appointment by the auditor30
of an administrator from a list of not less than two names of persons31
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possessing real estate and financial expertise compiled by the court in1
the proceedings, and which provides for the suspension of the authority2
of the board of trustees of the community improvement district to3
exercise the powers granted such board under the Community Improvement4
District Act during the period of such administrator's appointment. In5
the alternative or as additional relief, the court may order such other6
relief as may be appropriate to cure the defects of the community7
improvement district, including, but not limited to, (1) appointment of8
trustees to serve until the next regular election, (2) calling a special9
election to elect trustees which shall be conducted in the same manner as10
other elections for trustees, and (3) directing the board of trustees to11
levy taxes or special assessments as required by the Community12
Improvement District Act. The cost of the special proceedings may be13
allowed and apportioned between the parties in the discretion of the14
court. 15
Sec. 47. Upon receipt of the order of the district court referring16
the community improvement district to the Auditor of Public Accounts for17
the appointment of an administrator, the auditor shall appoint an18
administrator with authority, including all authority of the board of19
trustees, chairperson, and clerk of the community improvement district,20
to direct the affairs of the community improvement district pursuant to21
the Community Improvement District Act unless the auditor shall determine22
upon good cause that the appointment of an administrator would not be in23
the best interests of the community improvement district. Within sixty24
days after receipt of such order of the district court, the auditor shall25
file with the court a certificate evidencing compliance with this section26
and if the auditor determines not to appoint an administrator, such27
certificate shall specify the grounds for the auditor's determination28
that the appointment would not be in the best interest of the community29
improvement district. 30
Sec. 48. Upon the issuance of a certificate of appointment by the31
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Auditor of Public Accounts to a designated community improvement district1
administrator, the authority of the board of trustees of the community2
improvement district to exercise the powers of the community improvement3
district conferred by the Community Improvement District Act shall be4
suspended. The administrator shall during the period of his or her5
appointment possess all of the powers of the board of trustees and shall6
possess exclusive authority to exercise the powers conferred in the7
Community Improvement District Act. 8
Sec. 49. The board of trustees or the administrator shall have the9
power to negotiate a scaling, a discounting, a reduction in interest10
rate, or any other compromise of any or all of the bonds, warrants, or11
other indebtedness of the community improvement district with the owners12
or holders of such indebtedness. In order to carry out any compromise13
agreements made, the board of trustees or the administrator shall have14
the power to issue new bonds or warrants which may be delivered to the15
holders or owners of the indebtedness being compromised or may be sold on16
such terms as the board of trustees or administrator shall determine to17
provide cash to carry out the compromise settlement. Before any new bonds18
or warrants are issued, the terms of the compromise settlement shall be19
approved by the district court for the county in which the community20
improvement district or the greater portion of the community improvement21
district is situated. Such review by the district court shall be limited22
to the legality and validity of the new bonds or warrants to be issued,23
and the decree of the district court determining the issuance of the new24
bonds or warrants to be legal and valid shall be conclusive against the25
community improvement district and all other persons having or claiming26
any interest in the community improvement district. Notwithstanding any27
other provision of law, the treasurer of the community improvement28
district shall disburse funds of the community improvement district in29
accordance with the compromise settlement approved by the district court.30
Sec. 50. (1) The administrator may levy a separate tax upon the31
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taxable value of the taxable property in the community improvement1
district which shall be known as the administration tax and which shall2
be separately accounted for by the treasurer of the community improvement3
district. Such tax shall be paid annually. Such tax may be used to pay4
the fees and expenses of the administrator and his or her administration,5
including the cost of audit services, legal services, and financial6
advisory services ordered by the administrator. 7
(2) The administrator shall receive a minimum fee of five hundred8
dollars per month during the term of his or her appointment. The9
administrator shall also be entitled to reimbursement for his or her10
actual and necessary expenses upon presentation of an accounting of his11
or her expenses to the Auditor of Public Accounts. The monthly12
administrator's fee provided for in this subsection shall be subject to13
adjustment at any time during the term of the administrator's appointment14
by the Auditor of Public Accounts. The factors to be considered by the15
auditor in his or her determination to increase the administrator's fee16
shall include the nature and extent of the administrator's services, the17
complexity of the problems confronting the community improvement18
district, and the value of the services of the administrator to the19
community improvement district. The auditor shall also consider the cost20
of obtaining comparable services of the administrator in the private21
sector. 22
Sec. 51. The administrator shall serve at the pleasure of the23
Auditor of Public Accounts or until the district court shall terminate24
the authority of the auditor and the administrator. A petition for review25
by the court of the original order may be filed by any person with an26
interest in the community improvement district. The court shall have the27
power to terminate the authority of the Auditor of Public Accounts and28
the administrator upon its determination that none of the conditions set29
forth in section 44 of this act exist or it is in the best interest of30
the community improvement district that the authority of the31
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administrator be terminated. A termination of the authority of the1
Auditor of Public Accounts and the administrator shall reinstate the2
authority of the board of trustees pursuant to the Community Improvement3
District Act. 4
Sec. 52. For purposes of sections 52 to 59 of this act:5
(1) Filing clerk means the election commissioner or county clerk of6
the county in which all or the largest portion of the land area7
comprising a community improvement district is located;8
(2) Qualified property owning voter means a person entitled to vote9
as provided in section 14 of this act for all trustees of a community10
improvement district other than those which may be elected only by11
qualified resident voters; and 12
(3) Qualified resident voter means a person entitled to vote as13
provided in section 14 of this act for all trustees of a community14
improvement district. 15
Sec. 53. (1) A trustee of a community improvement district may be16
removed from office by recall pursuant to sections 52 to 59 of this act.17
A petition for an election to recall a trustee shall be sufficient if it18
complies with the requirements of this section. 19
(2) The signers of the petition shall be persons who were, on the20
date the initial petition papers are issued under subsection (7) of this21
section, eligible to vote in a community improvement district election as22
provided in section 14 of this act. A person's eligibility to sign a23
petition shall be the same as the person's eligibility to cast one or24
more votes at a community improvement district election under section 1425
of this act. Only one person shall be allowed to sign on behalf of joint26
owners of property in the community improvement district or on behalf of27
a public, private, or municipal corporation that owns property in the28
community improvement district. If the trustee whose recall is sought was29
elected by vote of resident owners only, then only resident owners shall30
be allowed to sign the petition. If the trustee whose recall is sought31
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was elected by vote of all owners of property, then all owners shall be1
allowed to sign the petition. For purposes of this section, resident2
owner means qualified resident voter and all owners means all qualified3
resident voters and all qualified property owning voters.4
(3) The filing clerk shall assign to each signature a count equal to5
the number of votes that the signer was eligible to cast on the date he6
or she signed. The number of votes that a signer was eligible to cast7
shall be based on section 14 of this act. If the signature was made by or8
for an owner of more than one parcel of property, the signature made by9
or on behalf of such owner shall be assigned a count equal to the total10
number of votes which the owner was eligible to cast.11
(4) The filing clerk shall total the count assigned to the12
signatures on the petition. The petition shall be sufficient if the total13
is at least equal to thirty-five percent of the highest number of votes14
that were cast for a candidate at the previous community improvement15
district election for the trustee positions in the same category as the16
trustee whose recall is sought by the petition. The categories of17
trustees shall be the same as provided in section 14 of this act.18
(5) The signatures shall be affixed to petition papers and shall be19
considered part of the petition. 20
(6) The petition papers shall be procured from the filing clerk.21
Prior to the issuance of such petition papers, a recall petition filing22
form shall be signed and filed with the filing clerk by (a) at least one23
qualified resident voter of the district if the trustee whose recall is24
being sought was elected solely by qualified resident voters or (b) at25
least one qualified resident voter or qualified property owning voter if26
the trustee whose recall is being sought was elected by qualified27
resident voters and qualified property owning voters. Such voter or28
voters shall be deemed to be the principal circulator or circulators of29
the recall petition. The filing form shall state the name of the trustee30
sought to be removed and whether qualified property owning voters31
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participated in the election of the trustee and shall request that the1
filing clerk issue initial petition papers to the principal circulator2
for circulation. The filing clerk shall notify the principal circulator3
or circulators that the necessary signatures must be gathered within4
thirty days after the date of issuing the petitions.5
(7) The filing clerk, upon issuing the initial petition papers or6
any subsequent petition papers, shall enter in a record, to be kept in7
his or her office, the name of the principal circulator or circulators to8
whom the papers were issued, the date of issuance, the number of papers9
issued, and whether qualified property owning voters may participate in10
signing the petitions. The filing clerk shall certify on the papers the11
name of the principal circulator or circulators to whom the papers were12
issued, the date they were issued, and whether qualified property owning13
voters may participate in signing the petitions. No petition paper shall14
be accepted as part of the petition unless it bears such certificate. The15
principal circulator or circulators who check out petitions from the16
filing clerk may distribute such petitions to persons who may act as17
circulators of such petitions. 18
Sec. 54. (1) The Secretary of State shall design the uniform19
petition papers to be distributed by all filing clerks for use in the20
recall of trustees of community improvement districts and shall keep a21
sufficient number of such blank petition papers on file for distribution22
to any filing clerk requesting recall petitions. 23
(2) Each petition paper presented to a qualified voter for his or24
her signature shall clearly indicate at the top (a) whether the trustee25
whose recall is being sought was elected solely by qualified resident26
voters, (b) whether the signatories must be qualified resident voters or27
may include qualified property owning voters, (c) that the signatories28
must support the holding of a recall election for the trustee, (d) the29
name of the individual sought to be recalled, and (e) a general statement30
of the reason or reasons for which recall is sought.31
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(3) Each petition paper shall contain a statement, entitled1
Instructions to Petition Circulators, prepared by the Secretary of State2
to assist circulators in understanding the provisions governing the3
petition process established by sections 52 to 59 of this act. The4
instructions shall include the following statement: No one circulating5
this petition paper in an attempt to gather signatures shall sign the6
circulator's affidavit unless each person who signed the petition paper7
did so in the presence of the circulator. 8
Sec. 55. (1) The principal circulator or circulators shall file, as9
one instrument, all petition papers comprising a recall petition for10
signature verification with the filing clerk within thirty days after the11
filing clerk issues the initial petition papers to the principal12
circulator or circulators as provided in section 53 of this act.13
(2) Within fifteen days after the filing of the petition, the filing14
clerk shall ascertain whether or not the petition is signed by sufficient15
qualified resident voters and qualified property owning voters as16
provided in section 53 of this act. No new signatures may be added after17
the initial filing of the petition papers. No signatures may be removed18
unless the filing clerk receives an affidavit signed by the person19
requesting that his or her signature be removed before the petitions are20
filed with the filing clerk for signature verification.21
(3) If the petition is found to be sufficient, the filing clerk22
shall attach to the petition a certificate showing the result of such23
examination. If the petition is found not to be sufficient, the filing24
clerk shall file the petition in his or her office without prejudice to25
the filing of a new petition for the same purpose.26
Sec. 56. (1) If the recall petition is found to be sufficient, the27
filing clerk shall notify the trustee whose removal is sought and the28
board of trustees of the community improvement district that sufficient29
signatures have been gathered. 30
(2) If the trustee does not resign within five days after receiving31
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the notice, the filing clerk shall order an election to be held not less1
than forty-five days nor more than sixty days after the expiration of the2
five-day period, except that if an election for the board of trustees of3
the community improvement district is to be held within one hundred4
twenty days after the expiration of the five-day period, the filing clerk5
shall provide for the holding of the removal election at the time of such6
regular election. The recall election shall be conducted in the same7
manner as an election for members of the board of trustees as provided in8
section 14 of this act. After the filing clerk sets the date for the9
recall election, the recall election shall be held regardless of whether10
the trustee whose removal is sought resigns before the recall election is11
held. 12
Sec. 57. The form of the official ballot at a recall election13
conducted pursuant to section 56 of this act shall conform to the14
requirements of this section. With respect to each trustee whose removal15
is sought, the question shall be submitted: Shall (name of trustee) be16
removed from the office of trustee? Immediately following each such17
question there shall be printed on the ballot the two responses: Yes and18
No. Immediately to the left of each response shall be placed a square or19
oval in which the voters qualified to vote for the trustee in a regular20
election may vote for one of the responses by making a cross or other21
clear, identifiable mark. The name of the trustee which shall appear on22
the ballot shall be the name of the trustee that appeared on the ballot23
of the previous election that included his or her name.24
Sec. 58. (1) If a majority of the votes cast at a recall election25
are against the removal of the trustee named on the ballot or the26
election results in a tie, the trustee shall continue in office for the27
remainder of his or her term. 28
(2) If a majority of the votes cast at a recall election are for the29
removal of the trustee named on the ballot, he or she shall, regardless30
of any technical defects in the recall petition, be deemed removed from31
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office unless a recount is ordered. If the trustee is deemed removed, the1
removal shall result in an immediate vacancy in the office from the date2
of the election. The vacancy shall be filled as provided in subsection3
(2) of section 14 of this act. 4
(3) If there are vacancies in the offices of a majority or more of5
the members of the board of trustees at one time due to the recall of6
such members, a special election to fill such vacancies shall be7
conducted as expeditiously as possible by the filing clerk in the manner8
specified in section 14 of this act. 9
(4) No trustee who is removed at a recall election or who resigns10
after the initiation of the recall process shall be appointed to fill the11
vacancy resulting from his or her removal or the removal of any other12
member of the same board of trustees during the remainder of his or her13
term of office. 14
Sec. 59. No recall petition filing form shall be filed against a15
trustee under section 53 of this act within twelve months after a recall16
election has failed to remove him or her from office, within six months17
after the beginning of his or her term of office, or within six months18
prior to the incumbent filing deadline for the office.19
Sec. 60. Since an emergency exists, this act takes effect when20
passed and approved according to law. 21
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