A.B. 10
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ASSEMBLY BILL NO. 10–COMMITTEE
ON GOVERNMENT AFFAIRS
(ON BEHALF OF THE CITY OF HENDERSON)
PREFILED OCTOBER 29, 2024
____________
Referred to Committee on Government Affairs
SUMMARY—Revises provisions relating to local improvement
projects. (BDR 22-407)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
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 1
create an improvement district for the acquisition, improvement, equipment, 2
operation and maintenance of certain local improvement projects, including a 3
neighborhood improvement project, and to finance the cost of any such project 4
through such methods as the issuance of certain bonds and the levy of assessments 5
upon property in the improvement district. (NRS 271.265, 271.270, 271.325) 6
Section 1 of this bill amends the definition of “neighborhood improvement project” 7
to include the improvement of a water or sewer system that is owned by a common-8
interest community. 9
Existing law authorizes, under certain circumstances, the governing body of 10
any county, city or town to dissolve by resolution an improvement district that is 11
created for the purposes of a neighborhood improvement project. (NRS 271.296) 12
Section 2 of this bill provides that the authority to dissolve an improvement district 13
does not apply to a neighborhood improvement project that improves a water or 14
sewer system that is owned by a common-interest community. 15
Existing law sets forth certain notice requirements for a hearing as to the 16
propriety and advisability of an improvement project that has been provisionally 17
ordered by the governing body of a county, city or town. For a neighborhood 18
improvement project, the notice must state that: (1) a person who owns or resides 19
within a tract in the proposed improvement district may file a protest to inclusion in 20
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the assessment plat; and (2) if written remonstrances by the owners of tracts 21
constituting one-third or more of the basis for the computation of assessments for 22
the neighborhood improvement project are presented to the governing body, the 23
governing body is prohibited from proceeding with the project. (NRS 271.305, 24
271.306) Section 3 of this bill provides that this prohibition does not apply to a 25
neighborhood improvement project that improves a water or sewer system that is 26
owned by a common-interest community. Instead, section 4 of this bill provides 27
that a neighborhood improvement project that improves a water or sewer system 28
that is owned by a common-interest community will not be stayed or defeated or 29
prevented by written complaints, protests and objections, unless the governing body 30
deems such written complaints, protests and objections proper to cause the 31
neighborhood improvement project to be stayed or prevented. 32
Section 5 of this bill makes a conforming change to authorize the governing 33
body of a county, city or town to proceed with the improvement district after the 34
hearing and after the governing body makes certain determinations, including a 35
determination that an exception applies that authorizes the governing body to 36
acquire or improve an improvement project despite certain complaints, protests and 37
objections. 38
Existing law requires a governing body which has acquired or improved a 39
neighborhood improvement project to annually: (1) prepare an amendment to the 40
assessment roll for the district and an estimate of the expenditures for the next 41
fiscal year; (2) hold a public meeting to consider the amendment; and (3) provide 42
certain notice to the owner of each tract being assessed. (NRS 271.377) Section 6 43
of this bill makes these provisions inapplicable to a neighborhood improvement 44
project that improves a water or sewer system that is owned by a common-interest 45
community. 46
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: 1
271.147 “Neighborhood improvement project” includes: 2
1. The beautification and improvement of the public portions 3
of any area, including, without limitation: 4
(a) Public restrooms; 5
(b) Facilities for outdoor lighting and heating; 6
(c) Decorations; 7
(d) Fountains; 8
(e) Landscaping; 9
(f) Facilities or equipment, or both, to enhance protection of 10
persons and property within the improvement district; 11
(g) Ramps, sidewalks and plazas; and 12
(h) Rehabilitation or removal of existing structures; [and] 13
2. The improvement of an area by providing promotional 14
activities [.] ; and 15
3. The improvement of a water or sewer system that is owned 16
by a common-interest community. 17
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Sec. 2. NRS 271.296 is hereby amended to read as follows: 1
271.296 1. The governing body may, by resolution, dissolve 2
an improvement district that is created for the purposes of a 3
neighborhood improvement project described in subsection 1 or 2 4
of NRS 271.147 if property owners whose property is assessed for a 5
combined total of more than 50 percent of the total amount of the 6
assessments of all the property in the improvement district submit a 7
written petition to the governing body that requests the dissolution 8
of the district within the period prescribed in subsection 2. 9
2. The dissolution of an improvement district pursuant to this 10
section may be requested within 30 days after: 11
(a) The first anniversary of the date the improvement district 12
was created; and 13
(b) Each subsequent anniversary thereafter. 14
3. As soon as practicable after the receipt of the written petition 15
of the property owners submitted pursuant to subsection 1, the 16
governing body shall pass a resolution of intention to dissolve the 17
improvement district. The governing body shall give notice of a 18
hearing on the dissolution. The notice must be provided and the 19
hearing must be held in the manner set forth in NRS 271.380 and 20
271.385. If the governing body determines that dissolution of 21
the improvement district is appropriate, it shall dissolve the 22
improvement district by resolution, effective not earlier than the 23
30th day after the hearing. 24
4. If there is indebtedness, outstanding and unpaid, incurred to 25
accomplish any of the purposes of the improvement district, the 26
portion of the assessment necessary to pay the indebtedness remains 27
effective and must be continued in the following years until the debt 28
is paid. 29
Sec. 3. NRS 271.305 is hereby amended to read as follows: 30
271.305 1. In the provisional order the governing body shall 31
set a time, at least 20 days thereafter, and a place at which the 32
owners of the tracts to be assessed, or any other interested persons, 33
may appear before the governing body and be heard as to the 34
propriety and advisability of acquiring or improving, or acquiring 35
and improving, the project or projects provisionally ordered. If a 36
mobile home park is located on one or more of the tracts to be 37
assessed, the notice must be given to the owner of the tract and each 38
tenant of that mobile home park. 39
2. Notice must be given: 40
(a) By publication. 41
(b) By mail. 42
(c) By posting. 43
3. Proof of publication must be by affidavit of the publisher. 44
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4. Proof of mailing and proof of posting must be by affidavit of 1
the engineer, clerk, or any deputy mailing the notice and posting the 2
notice, respectively. 3
5. Proof of publication, proof of mailing and proof of posting 4
must be maintained in the records of the municipality until all the 5
assessments appertaining to the project have been paid in full, 6
including principal, interest, any penalties, and any collection costs. 7
6. The notice may be prepared by the engineer and ratified by 8
the governing body, and, except as otherwise provided in subsection 9
7, must state: 10
(a) The kind of project proposed. 11
(b) The estimated cost of the project, and the portion, if any, to 12
be paid from sources other than assessments. 13
(c) The basis for apportioning the assessments, which 14
assessments must be in proportion to the special benefits derived to 15
each of the several tracts comprising the assessable property and on 16
a front foot, area, zone or other equitable basis. 17
(d) The number of installments and time in which the 18
assessments will be payable. 19
(e) The maximum rate of interest on unpaid installments of 20
assessments. 21
(f) The extent of the improvement district to be assessed, by 22
boundaries or other brief description. 23
(g) The time and place of the hearing where the governing body 24
will consider all objections to the project. 25
(h) That all written objections to the project must be filed with 26
the clerk of the municipality at least 3 days before the time set for 27
the hearing. 28
(i) If the project is not a neighborhood improvement project, that 29
pursuant to NRS 271.306, if a majority of the property owners to be 30
assessed for a project proposed by a governing body object in 31
writing within the time stated in paragraph (h), the project must not 32
be acquired or improved unless: 33
(1) The municipality pays one-half or more of the total cost 34
of the project, other than a park project, with money derived from 35
other than the levy or assessments; or 36
(2) The project constitutes not more than 2,640 feet, 37
including intersections, remaining unimproved in any street, 38
including an alley, between improvements already made to either 39
side of the same street or between improvements already made to 40
intersecting streets. 41
(j) That the description of the tracts to be assessed, the 42
maximum amount of benefits estimated to be conferred on each 43
such tract and all proceedings in the premises are on file and can be 44
examined at the office of the clerk. 45
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(k) Unless there will be no substantial change, that a substantial 1
change in certain existing street elevations or grades will result from 2
the project, without necessarily including any statement in detail of 3
the extent or location of any such change. 4
(l) That a person should object to the formation of the district 5
using the procedure outlined in the notice if the person’s support for 6
the district is based upon a statement or representation concerning 7
the project that is not contained in the language of the notice. 8
(m) That if a person objects to the amount of maximum benefits 9
estimated to be assessed or to the legality of the proposed 10
assessments in any respect: 11
(1) The person is entitled to be represented by counsel at the 12
hearing; 13
(2) Any evidence the person desires to present on these 14
issues must be presented at the hearing; and 15
(3) Evidence on these issues that is not presented at the 16
hearing may not thereafter be presented in an action brought 17
pursuant to NRS 271.315. 18
(n) If the project is a neighborhood improvement project, that: 19
(1) A person who owns or resides within a tract in the 20
proposed improvement district may file a protest to inclusion in the 21
assessment plat pursuant to NRS 271.392; and 22
(2) Pursuant to NRS 271.306, if written remonstrances by the 23
owners of tracts constituting one-third or more of the basis for the 24
computation of assessments for [the] a neighborhood improvement 25
project described in subsection 1 or 2 of NRS 271.147 are 26
presented to the governing body, the governing body shall not 27
proceed with the neighborhood improvement project. 28
7. The notice need not state either or both of the exceptions 29
stated in subsection 2 of NRS 271.306 unless either or both of the 30
exceptions are determined by the governing body or the engineer to 31
be relevant to the proposed improvement district to which the notice 32
appertains. 33
8. All proceedings may be modified or rescinded wholly or in 34
part by resolution adopted by the governing body, or by a document 35
prepared by the engineer and ratified by the governing body, at any 36
time before the passage of the ordinance adopted pursuant to NRS 37
271.325, creating the improvement district, and authorizing the 38
project. 39
9. No substantial change in the improvement district, details, 40
preliminary plans or specifications or estimates may be made after 41
the first publication, posting or mailing of notice to property owners, 42
whichever occurs first, except: 43
(a) As otherwise provided in NRS 271.640 to 271.646, 44
inclusive; or 45
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(b) For the deletion of a portion of a project and property from 1
the proposed program and improvement district or any assessment 2
unit. 3
10. The engineer may make minor changes in time, plans and 4
materials entering into the work at any time before its completion. 5
11. If the ordinance is for a neighborhood improvement 6
project, notice sent pursuant to this section must be sent by mail to 7
each person who owns real property which is located within the 8
proposed improvement district and to each tenant who resides or 9
owns a business located within the proposed improvement district. 10
Sec. 4. NRS 271.306 is hereby amended to read as follows: 11
271.306 1. Regardless of the basis used for apportioning 12
assessments, the amount apportioned to a wedge or V or any other 13
irregularly shaped tract must be in proportion to the special benefits 14
thereby derived. 15
2. Except as otherwise provided in subsections 3 , [and] 4 [,] 16
and 5, if, within the time specified in the notice, complaints, 17
protests and objections in writing, that is, all written remonstrances, 18
against acquiring or improving the project proposed by initiation of 19
the governing body are filed with the clerk, signed by the owners of 20
tracts constituting a majority of the frontage, of the area, of the zone, 21
or of the other basis for the computation of assessments, as the case 22
may be, of the tracts to be assessed in the improvement district or in 23
the assessment unit if the improvement district is divided into 24
assessment units, the project therein must not be acquired or 25
improved unless: 26
(a) The municipality pays one-half or more of the total cost of 27
the project, other than a park project, with money derived from other 28
than the levy of assessments; or 29
(b) The project constitutes not more than 2,640 feet, including 30
intersections, remaining unimproved in any street, including an 31
alley, between improvements already made to either side of the 32
same street or between improvements already made to intersecting 33
streets. In this case the governing body may on its own motion cause 34
the intervening and unimproved part of the street to be improved. 35
Such improvements will not be stayed or defeated or prevented by 36
written complaints, protests and objections thereto, unless the 37
governing body in its sole discretion, deems such written 38
complaints, protests and objections proper to cause the improvement 39
to be stayed or prevented. 40
3. Written remonstrances by the owners of tracts constituting 41
50 percent of the basis for the computation of assessments suffice to 42
preclude the acquisition or improvement of a street beautification 43
project or waterfront maintenance project. 44
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4. Written remonstrances by the owners of tracts constituting at 1
least one-third of the basis for the computation of assessments 2
suffice to preclude the acquisition or improvement of a 3
neighborhood improvement project [.] described in subsection 1 or 4
2 of NRS 271.147. For the purposes of this subsection, the property 5
of a single owner may not be counted as constituting more than 10 6
percent of the basis. 7
5. A neighborhood improvement project described in 8
subsection 3 of NRS 271.147 will not be stayed or defeated or 9
prevented by written complaints, protests and objections thereto, 10
unless the governing body in its sole discretion, deems such 11
written complaints, protests and objections proper to cause the 12
neighborhood improvement project to be stayed or prevented. 13
Sec. 5. NRS 271.320 is hereby amended to read as follows: 14
271.320 1. After the hearing and after the governing body 15
has: 16
(a) Disposed of all complaints, protests and objections, oral and 17
in writing; 18
(b) Determined that it is not prevented from proceeding pursuant 19
to subsection 3 or 4 of NRS 271.306; and 20
(c) Determined that: 21
(1) [Either or both] Any of the exceptions stated in 22
[subsection 2 of] NRS 271.306 apply; or 23
(2) There were not filed with the clerk complaints, protests 24
and objections in writing and signed by the owners of tracts 25
constituting a majority of the frontage, of the area, of the zone, or of 26
the other basis for the computation of assessments stated in the 27
notice, of the tracts to be assessed in the improvement district or in 28
the assessment unit, if any, 29
and the governing body has jurisdiction to proceed, the governing 30
body shall determine whether to proceed with the improvement 31
district, and with each assessment unit, if any, except as otherwise 32
provided in this chapter. 33
2. Except as otherwise provided in NRS 271.640 to 271.646, 34
inclusive, if the governing body desires to proceed and desires any 35
modification, by motion or resolution it shall direct the engineer to 36
prepare and present to the governing body: 37
(a) A revised and detailed estimate of the total cost, including, 38
without limiting the generality of the foregoing, the cost of 39
acquiring or improving each proposed project and of each of the 40
incidental costs. The revised estimate does not constitute a 41
limitation for any purpose. 42
(b) Full and detailed plans and specifications for each proposed 43
project designed to permit and encourage competition among the 44
bidders, if any project is to be acquired by construction contract. 45
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(c) A revised map and assessment plat showing respectively the 1
location of each project and the tracts to be assessed therefor, not 2
including any area or project not before the governing body at a 3
provisional order hearing. 4
3. That resolution, a separate resolution, or the ordinance 5
creating the improvement district may combine or divide the 6
proposed project or projects into suitable construction units for the 7
purpose of letting separate and independent contracts, regardless of 8
the extent of any project constituting an assessment unit and 9
regardless of whether a portion or none of the cost of any project is 10
to be defrayed other than by the levy of special assessments. Costs 11
of unrelated projects must be segregated for assessment purposes as 12
provided in this chapter. 13
Sec. 6. NRS 271.377 is hereby amended to read as follows: 14
271.377 1. [On] For a neighborhood improvement district 15
described in subsection 1 or 2 of NRS 271.147, on or before 16
June 30 of each year after the governing body acquires or improves 17
[a] the neighborhood improvement project, the governing body shall 18
prepare or cause to be prepared an estimate of the expenditures 19
required in the ensuing fiscal year and a proposed amendment to the 20
assessment roll assessing an amount not greater than the estimated 21
cost against the benefited property. The amendment to the 22
assessment must be computed according to frontage or another 23
uniform and quantifiable basis. 24
2. The governing body shall consider the amendment to the 25
assessment roll at a public meeting of the governing body. Notice 26
must be given by mail or, upon written request and to the extent 27
practicable, by electronic mail to the owner of each tract to be 28
assessed at least 21 days before the date of the meeting of the 29
governing body. The notice must set forth the amount of the 30
assessment roll for the ensuing fiscal year. 31
3. The agenda for a public meeting of the governing body to 32
consider an amendment to the assessment roll must list the 33
amendment as a separate action item. The governing body shall not 34
approve an amendment to the assessment roll as a group of agenda 35
items in a single motion. 36
4. After the meeting, the governing body shall confirm the 37
assessments, as specified in the amendment to the assessment roll, 38
by resolution and mail notice of the assessments to the owner of 39
each tract being assessed. The notice must set forth the date on 40
which the assessment is due and instructions for paying the 41
assessment. 42
5. An improvement district created for a neighborhood 43
improvement project is not entitled to any distribution from the local 44
government tax distribution account. 45
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Sec. 7. This act becomes effective upon passage and approval. 1
H