This bill enacts the Public Infrastructure District Act to provide financing for public infrastructure. The Act outlines a procedure for property owners to establish a public infrastructure district upon approval of a county or city. The threshold to petition a county or city to create a public infrastructure district is 100% of registered voters if there are registered voters within the proposed district and 100% of surface property owners within the proposed district. If the county or city approves the public infrastructure district, the district is governed by board members that represent subdistricts within the district. The district has the power to issue negotiable bonds for projects ranging from acquiring or improving facilities to housing to public transportation. Public infrastructure districts are empowered with authority to enter into interlocal agreements and may acquire completed or partially completed improvements for fair market value. Public infrastructure districts may charge fees and other charges for administrative services and may levy a tax of .0015 per dollar of taxable value of taxable property in the district.  

Adds “Public Infrastructure District” to the definition of a local district under 17B and enacts the Public Infrastructure District Act under 17B-2a-12

=       Sets the limit on PID property tax levy at .0015

=       A PID may not issue GO bonds if the issuance of the bonds will cause the outstanding principal amount of all the PIDs GO bonds to exceed the amount that results from multiplying the FMV of the taxable property within the PID by .15

=       PIDA

o   Board of trustees

o   Service plan – entity creating the PID agrees at the creation of the PID

o   PID can be divided into “wards” that are relatively equal in size and each represented by a board member. 

o   Subject to 17B-1 – Provisions Applicable to All Local Districts

o   May not be created unless 100% of the voters within the boundaries of the proposed district approve the creation and 100% of the surface property owners consent to the creation through a petition.

o   New property may be added to a PID through the same process.

o   Property may be removed if any bonds allocated to the area are paid.

o   Entity that approves creation of a PID may impose limitations on the PID through a service plan.

o   A PID is separate and distinct from the entity that creates it, and any financial burden is solely borne by the PID, not the entity that creates it.

§  Notwithstanding, the entity that creates the PID may be required under the service plan to bear the initial costs of the PID, and the PID may then reimburse creating entity.

o   The board

§  The legislative body of the entity that approves the creation of a PID shall appoint the members of the board in accordance with the initial service plan

§  The members serve for 6 year terms; terms begin when there is a voter other than those who originally consented to the PID living within the PID

§  A board member is not required to live within the PID if all the surface property owners consent or if there are no residents within the boundaries.

§  The board may transition from legislative body appointment to election based on certain events, including density milestone.

o   Additional PID powers

§  May issue negotiable bonds to pay for

=       improvements, facilities, or property;

=       the capital costs for facilities necessary for TV and telecommunications;

=       improvements in an energy assessment area;

=       costs related to housing

=       costs related to public transportation

=       engage in economic development

=       provide CCR and design review services

=       provide traffic and safety controls

=       enter into interlocal agreement under Title 11

=       acquire improvements for FMV

§  subject to same procurements as the creating entity

o   PID may issue negotiable bonds, refinance limited tax bonds as GO bonds; and charge fees for services

o   PID property tax may not exceed .0015 per dollar of taxable value of taxable property in the district; does not apply to a levy to pay principal of and interest on a GO bond.

o   May impose a penalty of .07 for any unpaid tax, fee, or charge

o   Entity that creates a PID retains all authority over zoning, planning, and permitting within the PID

o   The inclusion of property within a PID does not preclude inclusion within any other local district.

o   All infrastructure that is connected to another public entity’s systems belongs to that public entity, regardless of whether it’s in a PID.

o   PID is subject to OPMA and must file annual reports with the creating entity

o   Civil action against PID for creation of a tax levy or fee within 30 days