48-7008 - Project review by authority; hearing; notice; fees

48-7008. Project review by authority; hearing; notice; fees

A. Before constructing or acquiring any public infrastructure, the board shall cause a study of the feasibility and benefits of the project that shall be prepared by engineers and other qualified persons and that shall include a description of the public infrastructure to be constructed or acquired and all other information useful to understand the project, a map showing, in general, the location of the project, an estimate of the cost to construct, acquire, operate and maintain the project, an estimated schedule for completion of the project, a map or description of the area to be benefited by the project and the financing plan for the project. Within sixty days after receiving the report, the board shall hold a public hearing on the report and provide notice of the hearing by publication not less than ten days in advance in the official newspaper of the municipality in which the district is located or, if none in the municipality or if the district is located in an unincorporated area, a newspaper of general circulation in the county and by mail to the governing body of the municipality. Within sixty days after the hearing, the board may reject, amend or approve the report. If the report is amended substantially, a new hearing shall be held within sixty days after the date the amended report is received and before approval. If the report is approved, the board shall adopt a resolution that identifies the public infrastructure of the project, the areas benefited, the expected method of financing, including the nature and timing of the issuance of bonds, if any, and an appropriate system of providing revenues to operate and maintain the project, if applicable. The board shall execute the provisions of the report within the time frames identified in the approved report.

B. Before constructing or acquiring any public infrastructure and before the board has held the public hearing prescribed in subsection A of this section, the board shall cause the study of the feasibility and benefits of the project prescribed in subsection A of this section to be provided to the authority. In addition to the study of the feasibility and benefits of the project prescribed in subsection A of this section, the board shall cause the following information to be provided to the authority:

1. The proposed maximum principal amount of bonds to be issued, the maximum interest rate and a preliminary debt service schedule for the bonds.

2. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of general obligation bonds, a report indicating the projected market value of the real property and improvements in the district after the public infrastructure to be constructed or acquired by the district with the proceeds of such bonds is completed plus the value of the public infrastructure owned by the district and to be constructed or acquired by the district with the proceeds of such bonds.

3. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of general obligation bonds, a third-party market study that includes projections of the limited property value of real property in the district for each year in which general obligation bonds are proposed to be outstanding, together with a projection of the ad valorem tax rate that is required to support debt service on the general obligation bonds and that does not exceed the maximum authorized tax rate.

4. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of assessment bonds, an appraisal indicating the aggregate as-is market value of real property in the district and the projected market value of the real property and improvements in the district after completion of the public infrastructure proposed to be financed with such assessment bonds.

5. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of assessment bonds, the maximum aggregate assessment and the maximum per-lot assessment to be levied in connection with the assessment bonds.

6. The anticipated build-out schedule and associated valuation increases.

7. The currently outstanding aggregate principal amount of all bonds of the district and the current ad valorem tax rate of the district, if any.

8. The proposed financing team, including the underwriter or placement agent and the district's bond counsel.

9. A certification as to the reasonableness of assumptions that are used in the market value and growth projections and a certification that the ad valorem tax rate levied to pay the debt service on general obligation bonds of the district in the current and immediately preceding fiscal year is not in excess of the maximum authorized tax rate.

10. A certification that the construction or acquisition of the public infrastructure, as applicable, will not conflict with any existing and applicable development agreement or other agreement with the municipality or the county that relates to the land included within the boundaries of the district that was submitted to the authority in connection with the petition.

C. The authority shall review the information submitted pursuant to subsection B of this section to confirm, solely on the basis of the information submitted and without any independent determination of feasibility or value, that all information required pursuant to subsection B of this section has been submitted and that the construction or acquisition of the public infrastructure, or both, as applicable, complies with the formation order and the general plan and does not otherwise violate the provisions of this chapter.

D. The authority shall provide written notice to the district within thirty days after receiving the information submitted pursuant to subsection B of this section if the submitted information is incomplete or has not been submitted or if the submitted information indicates that the construction or acquisition of the public infrastructure does not comply with the formation order or the general plan or does not otherwise comply with the provisions of this chapter. The written notice shall identify any deficiencies. The board may not hold the public hearing described in subsection A of this section until thirty days has elapsed since the submission of the information submitted pursuant to subsection B of this section and the district has not received from the authority the notice prescribed in this subsection.

E. Fees and other charges that are assessed by the authority in connection with the review of the information submitted pursuant to subsection B of this section shall not exceed $30,000 for each submission. Any such fees shall be in addition to the fees and other charges that are assessed by the authority in connection with the submission and consideration of an application and petition to form a district pursuant to section 48-7003, subsection J.