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- 83rd Session (2025)
Assembly Bill No. 10–Committee
on Government Affairs
CHAPTER..........
AN ACT relating to local improvement projects; authorizing any
county, city or town to repair a private water or sewer system
that is owned by a common-interest community as part of a
neighborhood improvement project; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the governing body of any county, city or town to
create an improvement district for the acquisition, improvement, equipment,
operation and maint enance of certain local improvement projects, including a
neighborhood improvement project, and to finance the cost of any such project
through such methods as the issuance of certain bonds and the levy of assessments
upon property in the improvement distr ict. (NRS 271.265, 271.270, 271.325)
Section 1 of this bill amends the definition of “neighborhood improvement project”
to include the improvement of a water or sewer system that is owned by a common-
interest community.
Existing law authorizes, under certain circumstances, the governing body of
any county, city or town to dissolve by resolution an improvement district that is
created for the purposes of a neighborhood improvement project. (NRS 271.296)
Section 2 of this bill provides that the authority to dissolve an improvement district
does not apply to a neighborhood improvement project that improves a water or
sewer system that is owned by a common-interest community.
Existing law sets forth certain notice requirements for a hearing as to the
propriety and advisability of an improvement project that has been provisionally
ordered by the governing body of a county, city or town. For a neighborhood
improvement project, the notice must state that: (1) a person who owns or resides
within a tract in the proposed improvement district may file a protest to inclusion in
the assessment plat; and (2) if written remonstrances by the owners of tracts
constituting one-third or more of the basis for the computation of assessments for
the neighborhood improvement project are presented to the governing body, the
governing body is prohibited from proceeding with the project. (NRS 271.305,
271.306) Section 3 of this bill provides that this prohibition does not apply to a
neighborhood improvement project that improves a water or sewer system that is
owned by a common -interest community. Instead, section 4 of this bill provides
that a neighborhood improvement project that improves a water or sewer system
that is owned by a common -interest community will not be stayed or defeated or
prevented by written complaints, protests and objections, unless the governing body
deems such written complaints, protests and objections proper to cause the
neighborhood improvement project to be stayed or prevented.
Section 5 of this bill makes a conforming change to authorize the governing
body of a county, city or town to proceed with the improvement district after the
hearing and after the governing body makes certain determinations, including a
determination that an exception applies that authorizes the governing body to
acquire or improve an improvement project despite certain complaints, protests and
objections.
Existing law requires a governing body which has acquired or improved a
neighborhood improvement project to annually: (1) prepare an amendment to the
assessment roll for the district and an estimate of the expenditures for the next
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fiscal year; (2) hold a public meeting to consider the am endment; and (3) provide
certain notice to the owner of each tract being assessed. (NRS 271.377) Section 6
of this bill makes these provisions inapplicable to a neighborhood improvement
project that improves a water or sewer system that is owned by a common -interest
community.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 271.147 is hereby amended to read as follows:
271.147 “Neighborhood improvement project” includes:
1. The beautification and improvement of the public portions
of any area, including, without limitation:
(a) Public restrooms;
(b) Facilities for outdoor lighting and heating;
(c) Decorations;
(d) Fountains;
(e) Landscaping;
(f) Facilities or equipment, or both, to enhance pr otection of
persons and property within the improvement district;
(g) Ramps, sidewalks and plazas; and
(h) Rehabilitation or removal of existing structures; [and]
2. The improvement of an area by providing promotional
activities [.] ; and
3. The improvement of a water or sewer system that is owned
by a common-interest community.
Sec. 2. NRS 271.296 is hereby amended to read as follows:
271.296 1. The governing body may, by resolution, dissolve
an improvement district that is created for the purposes of a
neighborhood improvement project described in subsection 1 or 2
of NRS 271.147 if property owners whose property is assessed for a
combined total of more than 50 percent of the total amount of the
assessments of all the property in the improvement district submit a
written petition to the governing body that requests the dissolution
of the district within the period prescribed in subsection 2.
2. The dissolution of an improvement district pursuant to this
section may be requested within 30 days after:
(a) The first anniversary of the date the improvement district
was created; and
(b) Each subsequent anniversary thereafter.
3. As soon as practicable after the receipt of the written petition
of the property owners submitted pursuant to subsection 1, the
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governing body shall pass a resolution of intention to dissolve the
improvement district. The governing body shall give notice of a
hearing on the dissolution. The notice must be provided and the
hearing must be held in the manner set forth in NRS 271.380 and
271.385. If the governing body determines that dissolution of
the improvement district is appropriate, it shall dissolve the
improvement district by resolution, effective not earlier than the
30th day after the hearing.
4. If there is indebtedness, outstanding and unpaid, incurred to
accomplish any of the purposes of the improvement district, the
portion of the assessment necessary to pay the indebtedness remains
effective and must be continued in the following years until the debt
is paid.
Sec. 3. NRS 271.305 is hereby amended to read as follows:
271.305 1. In the provisional order the governing body shall
set a time, at least 20 days thereafter, and a place at which the
owners of the tracts to be assessed, or any other interested persons,
may appear before the governing body and be heard as to the
propriety and advisability of acquiring or improving, or acquiring
and improving, the project or projects provisionally o rdered. If a
mobile home park is located on one or more of the tracts to be
assessed, the notice must be given to the owner of the tract and each
tenant of that mobile home park.
2. Notice must be given:
(a) By publication.
(b) By mail.
(c) By posting.
3. Proof of publication must be by affidavit of the publisher.
4. Proof of mailing and proof of posting must be by affidavit of
the engineer, clerk, or any deputy mailing the notice and posting the
notice, respectively.
5. Proof of publication, pro of of mailing and proof of posting
must be maintained in the records of the municipality until all the
assessments appertaining to the project have been paid in full,
including principal, interest, any penalties, and any collection costs.
6. The notice may be prepared by the engineer and ratified by
the governing body, and, except as otherwise provided in subsection
7, must state:
(a) The kind of project proposed.
(b) The estimated cost of the project, and the portion, if any, to
be paid from sources other than assessments.
(c) The basis for apportioning the assessments, which
assessments must be in proportion to the special benefits derived to
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each of the several tracts comprising the assessable property and on
a front foot, area, zone or other equitable basis.
(d) The number of installments and time in which the
assessments will be payable.
(e) The maximum rate of interest on unpaid installments of
assessments.
(f) The extent of the improvement district to be assessed, by
boundaries or other brief description.
(g) The time and place of the hearing where the governing body
will consider all objections to the project.
(h) That all written objections to the project must be filed with
the clerk of the municipality at least 3 days before the time set for
the hearing.
(i) If the project is not a neighborhood improvement project, that
pursuant to NRS 271.306, if a majority of the property owners to be
assessed for a project proposed by a governing body object in
writing within the time stated in pa ragraph (h), the project must not
be acquired or improved unless:
(1) The municipality pays one -half or more of the total cost
of the project, other than a park project, with money derived from
other than the levy or assessments; or
(2) The project con stitutes not more than 2,640 feet,
including intersections, remaining unimproved in any street,
including an alley, between improvements already made to either
side of the same street or between improvements already made to
intersecting streets.
(j) That the description of the tracts to be assessed, the
maximum amount of benefits estimated to be conferred on each
such tract and all proceedings in the premises are on file and can be
examined at the office of the clerk.
(k) Unless there will be no substanti al change, that a substantial
change in certain existing street elevations or grades will result from
the project, without necessarily including any statement in detail of
the extent or location of any such change.
(l) That a person should object to the f ormation of the district
using the procedure outlined in the notice if the person’s support for
the district is based upon a statement or representation concerning
the project that is not contained in the language of the notice.
(m) That if a person objects to the amount of maximum benefits
estimated to be assessed or to the legality of the proposed
assessments in any respect:
(1) The person is entitled to be represented by counsel at the
hearing;
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(2) Any evidence the person desires to present on these
issues must be presented at the hearing; and
(3) Evidence on these issues that is not presented at the
hearing may not thereafter be presented in an action brought
pursuant to NRS 271.315.
(n) If the project is a neighborhood improvement project, that:
(1) A person who owns or resides within a tract in the
proposed improvement district may file a protest to inclusion in the
assessment plat pursuant to NRS 271.392; and
(2) Pursuant to NRS 271.306, if written remonstrances by the
owners of tracts cons tituting one-third or more of the basis for the
computation of assessments for [the] a neighborhood improvement
project described in subsection 1 or 2 of NRS 271.147 are
presented to the governing body, the governing body shall not
proceed with the neighborhood improvement project.
7. The notice need not state either or both of the exceptions
stated in subsection 2 of NRS 271.306 unless either or both of the
exceptions are determined by the governing body or the engineer to
be relevant to the proposed improvement district to which the notice
appertains.
8. All proceedings may be modified or rescinded wholly or in
part by resolution adopted by the governing body, or by a document
prepared by the engineer and ratified by the governing body, at any
time before the passage of the ordinance adopted pursuant to NRS
271.325, creating the improvement district, and authorizing the
project.
9. No substantial change in the improvement district, details,
preliminary plans or specifications or estimates may b e made after
the first publication, posting or mailing of notice to property owners,
whichever occurs first, except:
(a) As otherwise provided in NRS 271.640 to 271.646,
inclusive; or
(b) For the deletion of a portion of a project and property from
the proposed program and improvement district or any assessment
unit.
10. The engineer may make minor changes in time, plans and
materials entering into the work at any time before its completion.
11. If the ordinance is for a neighborhood improvement
project, notice sent pursuant to this section must be sent by mail to
each person who owns real property which is located within the
proposed improvement district and to each tenant who resides or
owns a business located within the proposed improvement district.
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Sec. 4. NRS 271.306 is hereby amended to read as follows:
271.306 1. Regardless of the basis used for apportioning
assessments, the amount apportioned to a wedge or V or any other
irregularly shaped tract must be in proportion to the special benefits
thereby derived.
2. Except as otherwise provided in subsections 3 , [and] 4 [,]
and 5 , if, within the time specified in the notice, complaints,
protests and objections in writing, that is, all written remonstrances,
against acquiring or improving the project proposed by initiation of
the governing body are filed with the clerk, signed by the owners of
tracts constituting a majority of the frontage, of the area, of the zone,
or of the other basis for the computation of as sessments, as the case
may be, of the tracts to be assessed in the improvement district or in
the assessment unit if the improvement district is divided into
assessment units, the project therein must not be acquired or
improved unless:
(a) The municipality pays one -half or more of the total cost of
the project, other than a park project, with money derived from other
than the levy of assessments; or
(b) The project constitutes not more than 2,640 feet, including
intersections, remaining unimproved in any street, including an
alley, between improvements already made to either side of the
same street or between improvements already made to intersecting
streets. In this case the governing body may on its own motion cause
the intervening and unimproved part o f the street to be improved.
Such improvements will not be stayed or defeated or prevented by
written complaints, protests and objections thereto, unless the
governing body in its sole discretion, deems such written
complaints, protests and objections proper to cause the improvement
to be stayed or prevented.
3. Written remonstrances by the owners of tracts constituting
50 percent of the basis for the computation of assessments suffice to
preclude the acquisition or improvement of a street beautification
project or waterfront maintenance project.
4. Written remonstrances by the owners of tracts constituting at
least one -third of the basis for the computation of assessments
suffice to preclude the acquisition or improvement of a
neighborhood improvement project [.] described in subsection 1 or
2 of NRS 271.147. For the purposes of this subsection, the property
of a single owner may not be counted as constituting more than 10
percent of the basis.
5. A neighborhood improvement project described in
subsection 3 of NRS 271.147 will not be stayed or defeated or
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prevented by written complaints, protests and objections thereto,
unless the governing body in its sole discretion, deems such
written complaints, protests and objections proper to cause the
neighborhood improvement project to be stayed or prevented.
Sec. 5. NRS 271.320 is hereby amended to read as follows:
271.320 1. After the hearing and after the governing body
has:
(a) Disposed of all complaints, protests and objections, oral and
in writing;
(b) Determined that it is not prevented from proceeding pursuant
to subsection 3 or 4 of NRS 271.306; and
(c) Determined that:
(1) [Either or both ] Any of the exceptions stated in
[subsection 2 of] NRS 271.306 apply; or
(2) There were not filed with the clerk complaints, protests
and objections in writing and signed by the owners of tracts
constituting a majority of the frontage, of the area, of the zone, or of
the other basis for the computation of assessments stated in the
notice, of the tracts to be assessed in the improvement district or in
the assessment unit, if any,
and the governing body has jurisdiction to proceed, the governing
body shall determine whether to proceed with the improvement
district, and with each assessment unit, if any, except as otherwise
provided in this chapter.
2. Except as otherwise provided in NRS 271.640 to 271.646,
inclusive, if the governing body desires to proceed and des ires any
modification, by motion or resolution it shall direct the engineer to
prepare and present to the governing body:
(a) A revised and detailed estimate of the total cost, including,
without limiting the generality of the foregoing, the cost of
acquiring or improving each proposed project and of each of the
incidental costs. The revised estimate does not constitute a
limitation for any purpose.
(b) Full and detailed plans and specifications for each proposed
project designed to permit and encourage c ompetition among the
bidders, if any project is to be acquired by construction contract.
(c) A revised map and assessment plat showing respectively the
location of each project and the tracts to be assessed therefor, not
including any area or project not before the governing body at a
provisional order hearing.
3. That resolution, a separate resolution, or the ordinance
creating the improvement district may combine or divide the
proposed project or projects into suitable construction units for the
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purpose of letting separate and independent contracts, regardless of
the extent of any project constituting an assessment unit and
regardless of whether a portion or none of the cost of any project is
to be defrayed other than by the levy of special assessments. Costs
of unrelated projects must be segregated for assessment purposes as
provided in this chapter.
Sec. 6. NRS 271.377 is hereby amended to read as follows:
271.377 1. [On] For a neighborhood improvement district
described in subsection 1 or 2 of NRS 271.147, on or before
June 30 of each year after the governing body acquires or improves
[a] the neighborhood improvement project, the governing body shall
prepare or cause to be prepared an estimate of the expenditur es
required in the ensuing fiscal year and a proposed amendment to the
assessment roll assessing an amount not greater than the estimated
cost against the benefited property. The amendment to the
assessment must be computed according to frontage or another
uniform and quantifiable basis.
2. The governing body shall consider the amendment to the
assessment roll at a public meeting of the governing body. Notice
must be given by mail or, upon written request and to the extent
practicable, by electronic mail to the owner of each tract to be
assessed at least 21 days before the date of the meeting of the
governing body. The notice must set forth the amount of the
assessment roll for the ensuing fiscal year.
3. The agenda for a public meeting of the governing body to
consider an amendment to the assessment roll must list the
amendment as a separate action item. The governing body shall not
approve an amendment to the assessment roll as a group of agenda
items in a single motion.
4. After the meeting, the gove rning body shall confirm the
assessments, as specified in the amendment to the assessment roll,
by resolution and mail notice of the assessments to the owner of
each tract being assessed. The notice must set forth the date on
which the assessment is due an d instructions for paying the
assessment.
5. An improvement district created for a neighborhood
improvement project is not entitled to any distribution from the local
government tax distribution account.
Sec. 7. This act becomes effective upon passage and approval.
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