Section 16.11 Community Improvement District Act

• Library: Local Government Deskbook (2017 Ed.)

I. (§16.11) Community Improvement District Act

The CID (Community Improvement District) Act, §§ 67.1401–67.1571, RSMo 2016, provides yet another class of special-purpose, self-taxing district, one that enjoys broad authority to:

· levy and collect special assessments and taxes;

· fix and collect fees for use of district properties;

· construct and maintain a variety of public improvements;

· support business activity and economic development within district boundaries; and

· issue revenue and general obligation bonds.

All counties, cities, and villages, as well as unincorporated areas within St. Louis County, are authorized to establish one or more CIDs. See § 67.1401.2(9), RSMo 2016.

A CID may be established upon receipt of a petition signed by owners of real property representing more than 50% of the assessed valuation within the proposed CID boundary, which must be contiguous, and over 50% per capita of all property owners within the proposed CID. Section 67.1421, RSMo 2016. The term “per capita” is defined by the CID Act to apply one “head count” to one or more individuals or groups who own the fee interest in real properties within the CID. This single head count applies regardless of the number of properties owned. The definition provides an exception, however, in that a condominium is considered one landowner for purposes of determining the foregoing percentages and, accordingly, has one petition signature, which is provided by the owner’s association rather than by any unit owner. Section 67.1401.2(12).

Among other information, the petition must contain a five-year plan and cost estimates for services and improvements to be provided and must state the maximum rate of real property taxes that may be submitted for voter approval, the maximum rate for special assessments, and the limitations, if any, on district borrowing and revenue generation. See § 67.1421.2(3)(d), (k)–(n). Upon receipt and a determination of the petition’s sufficiency by the municipal clerk, the governing body of the municipality must give notice by publication and by mail and conduct a public hearing. Sections 67.1421.3 and 67.1431, RSMo 2016. At the conclusion of the hearing, the municipal governing body may establish the CID by ordinance. Section 67.1421.4.

A CID may be organized either as a political subdivision or as a not-for-profit corporation. The not-for-profit corporation, if that form is chosen, must be formed before the petition is submitted to the...