18-3522.

Trustees or administrator; powers; plans or contracts; approval required; hearing; contracts authorized; audit; failure to perform audit; effect; connection with city sewerage system; rental or use charge; levy; special assessment.

(1) The board of trustees or the administrator of any community improvement district organized under the Community Improvement District Act shall have power to:

(a) Construct, install, improve, equip, maintain, and repair public infrastructure in or related to such community improvement district; and

(b) Contract with the city or village or other political subdivision in which such community improvement district is located for any public purpose of such community improvement district, city or village, or other political subdivision.

(2) Prior to the installation of any of the public infrastructure or entering into a contract for any capital improvement with another political subdivision, the plans or contracts for such improvements or services and estimated costs shall be approved by the city or village in which the community improvement district is located. The community improvement district shall obtain approval of such plans for such improvements, and any changes thereto, from the city or village in which the community improvement district is located, and such city or village shall enforce compliance with such plans by action in equity.

(3)(a) Each community improvement district shall have the books of account kept by the board of trustees of the community improvement district examined and audited by a certified public accountant or a public accountant for the year ending June 30 and shall file a copy of the audit with the office of the Auditor of Public Accounts by December 31 of the same year. Such audits may be waived by the Auditor of Public Accounts upon proper showing by the community improvement district that the audit is unnecessary. Such examination and audit shall show the following:

(i) The gross income of the community improvement district from all sources for the previous year;

(ii) The amount expended each year for (A) maintenance and repairs, (B) new equipment, (C) new construction work, and (D) property purchased;

(iii) A detailed statement of all items of expense;

(iv) The total amount of taxes levied upon the property within the community improvement district; and

(v) All other facts necessary to give an accurate and comprehensive view of the cost of carrying on the activities and work of such community improvement district.

(b) The reports of all audits provided for in this subsection shall be and remain a part of the public records in the office of the Auditor of Public Accounts. The expense of such audits shall be paid out of the funds of the community improvement district. The Auditor of Public Accounts shall be given access to all books and papers, contracts, minutes, bonds, and other documents and memoranda of every kind and character of such community improvement district and be furnished all additional information possessed by any present or past officer or employee of any such community improvement district, or by any other person, that is essential to the making of a comprehensive and correct audit.

(4) If any community improvement district fails or refuses to cause such annual audit to be made of all of its functions, activities, and transactions for the fiscal year within a period of six months following the close of such fiscal year, unless such audit has been waived, the Auditor of Public Accounts may, after due notice and a hearing to show cause by such community improvement district, conduct an audit of the community improvement district pursuant to section 84-304 or assess the community improvement district a fee pursuant to subsection (2) of section 84-304.01.

(5) Whenever the sanitary sewer system or any part thereof of a community improvement district is directly or indirectly connected to the sewerage system of any city or village, such city or village, without enacting an ordinance or adopting any resolution for such purpose, may collect such city's or village's applicable rental or use charge from the users in the community improvement district and from the owners of the property served within the community improvement district. The charges of such city or village shall be charged to each property served by the city or village sewerage system, shall be a lien upon the property served, and may be collected from the owner or the person, firm, or corporation using the service. If the city's or village's applicable rental or service charge is not paid when due, such sum may be recovered by the city or village in a civil action or it may be assessed against the premises served as a special assessment and may be assessed by such city or village and collected and returned in the same manner as other municipal special assessments are enforced and collected. When any such assessment is levied, it shall be the duty of the city or village clerk to deliver a certified copy of the ordinance to the county treasurer of the county in which the premises assessed are located and such county treasurer shall collect the assessment as provided by law and return the assessment to the city or village treasurer. Funds of such city or village raised from such charges shall be used by it in accordance with laws applicable to its sewer service rental or charges. The governing body of any city or village may make all necessary rules and regulations governing the direct or indirect use of its sewerage system by any user and premises within any community improvement district and may establish just and equitable rates or charges to be paid to such city or village for use of any of its disposal plants and sewerage system. The board of trustees may, in connection with the issuance of any warrants or bonds of the community improvement district, agree to make a specified minimum levy on taxable property in the community improvement district to pay, or to provide a sinking fund to pay, principal and interest on warrants and bonds of the community improvement district for such number of years as the board may establish at the time of making such agreement and may agree to enforce, by foreclosure or otherwise as permitted by applicable laws, the collection of special assessments levied by the community improvement district. Such agreements may contain provisions granting to creditors and others the right to enforce and carry out the agreements on behalf of the community improvement district and its creditors.

(6) The board of trustees or administrator shall have power to sell and convey real and personal property of the community improvement district on such terms as it or he or she shall determine, except that real estate shall be sold to the highest bidder at public auction after notice of the time and place of the sale has been published for three consecutive weeks prior to the sale in a newspaper of general circulation in the city or village. The board of trustees or administrator may reject such bids and negotiate a sale at a price higher than the highest bid at the public auction at such terms as may be agreed.

(7) A community improvement district shall be subject to all regulatory authority, zoning jurisdiction, and other jurisdictional provision of the city or village in which such community improvement district is located. Each community improvement district shall have and the board of trustees may exercise, subject to the regulatory jurisdiction and permitting authority of such city or village and all other applicable governing bodies and agencies having authority with respect to any area included in the community improvement district, the powers relating to public infrastructure and other improvements provided in this section and authorized by the Community Improvement District Act.