2015 North Dakota Century Code Title 61 Waters Chapter 61-24.8 Garrison Diversion Conservancy District Irrigation Special Assessments
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CHAPTER 61-24.8
GARRISON DIVERSION CONSERVANCY DISTRICT IRRIGATION SPECIAL ASSESSMENTS
61-24.8-01. Definitions.
As used in this chapter:
1. "Auditor" means the county auditor.
2. "Board" means the board of directors of the Garrison Diversion Conservancy District.
3. "Bond" means any revenue bond, refunding bond, improvement bond, or other
evidence of indebtedness of the district issued under this chapter.
4. "Direct benefit" means water is delivered to a tract of land.
5. "Director" means a member of the board of directors.
6. "District" means the Garrison Diversion Conservancy District.
7. "Federal agency" includes the United States, the president of the United States, or any
agency, instrumentality, or corporation of the United States which has been or may be
designated or created by or pursuant to any act or acts or joint resolutions of the
Congress of the United States or which may be owned or controlled, directly or
indirectly, by the United States.
8. "Holder of bonds" or "bondholder", or any similar term, means any person who is the
registered owner of any outstanding revenue bond, improvement bond, or refunding
bond.
9. "Law" means any statute of this state.
10. "Project" means any work, undertaking, enterprise, or any combination of two or more
projects, which the district is authorized to construct. The term includes all irrigation
improvements, betterments, extensions, and replacements of work, undertaking, or
enterprises, and all appurtenances, facilities, easements, lands, rights in land, water
rights, contract rights, approaches, dams, reservoirs, generating stations, trunk
connections, other water mains, filtration works, pumping stations, equipment,
franchises, and structures in connection with or incidental to any irrigation work,
undertaking, or enterprise the district is authorized to construct.
11. "Refinancing" means funding, refunding, paying, or discharging by means of refunding
bonds or the proceeds from the sale of refunding bonds, all or any part of any notes,
bonds, or other obligations issued to finance or to aid in financing the acquisition,
construction, or improvement of a project.
12. "Refunding bonds" means notes, bonds, certificates, or other obligations of the district
issued under this chapter, the proceeds of which are to be used to pay the principal of
or interest on any outstanding bonds or other obligations.
13. "Revenues" means all fees, tolls, rates, rentals, and charges levied and collected by
the district in connection with, and all other income and receipts of whatever kind or
character derived by the district from, the operation of any project.
14. "State engineer" has the same meaning as provided in chapter 61-03.
15. "Warrant" means an order drawn by the proper official of the district on its treasury, the
warrant to be so drawn that when signed by the district treasurer in an appropriate
place it becomes a check on the depository of the district, and a warrant upon the
treasury may not be delivered or mailed to the payee or the payee's agent or
representative until the warrant has been signed by the district treasurer and entered
on the district's books as a check drawn on a bank depository.
61-24.8-02. Financing project through improvement bonds or special assessments Apportionment of benefits.
The board may acquire needed interest in property and provide for the cost of construction,
alteration, repair, operation, and maintenance of a project with funds raised by special
assessments. The board may issue improvement bonds in anticipation of the levy and collection
of special assessments. If the board decides to acquire property or interests in property to
construct, operate, alter, repair, or maintain a project with funds raised in whole or in part
through special assessments, the assessments must be apportioned to and spread in
proportion to direct benefits accruing to lands or premises benefited by the project. The board
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shall assess the proportion of the cost of the project, or the part of the cost to be financed with
funds raised through levy and collection of special assessments which any lot, piece, or parcel
of land bears in proportion to the direct benefits accruing to the property that is benefited.
61-24.8-03. Resolution authorizing project and the issuance of revenue bonds.
The acquisition, construction, reconstruction, improvement, betterment, or extension of any
project and the issuance of bonds in anticipation of the collection of special assessments or of
the revenues of such project to provide funds to pay the associated costs may be authorized by
a resolution of the board adopted after appropriate notice by the affirmative vote of a majority of
the board. Unless otherwise provided in the resolution, the resolution under this section takes
effect immediately and need not be laid over, published, or posted.
61-24.8-04. Construction.
Powers under this chapter are in addition and supplemental to and not in substitution for,
and the limitations imposed by this chapter do not affect the powers conferred by, any other law.
Bonds may be issued under this chapter without regard to any other laws of this state, except as
provided in section 61-24-29. The project may be acquired, purchased, constructed,
reconstructed, improved, bettered, and extended, and bonds may be issued under this chapter
for those purposes, notwithstanding that any other law may provide for the acquisition,
purchase, construction, reconstruction, improvement, betterment, and extension of a like project
or for the issuance of bonds for like purposes, and without regard to the requirements,
restrictions, debt, or other limitations or other provisions contained in any other law, including
any requirement for any restriction or limitation on the incurring of indebtedness or the issuance
of bonds. If this chapter is inconsistent with any other law of this state, the provisions of this
chapter are controlling with reference to the issuance of bonds.
61-24.8-05. Power of district to defray expense of improvements by special
assessments.
Upon complying with this chapter, the district may defray the expense of any or all of the
improvements by special assessments, including the construction of all or part of an irrigation
water supply works or any improvement, extension, or replacement of such works, including the
construction and erection of wells, intakes, pumping stations, settling basins, filtration plants,
standpipes, water towers, canals, ditches, aqueducts, reservoirs, water mains, and outlets, and
all other appurtenances, contrivances, and structures used or useful for a central supply works.
In planning an improvement project, the board may include in the plans any and all items of
work and materials, which in its judgment are necessary or reasonably incidental to the
completion of an improvement project of that type.
61-24.8-06. Condemnation of land and rights of way for special improvements Taking of possession - Trial - Appeal - Vacation of judgment.
When property required to make any improvement authorized by this chapter is to be taken
by condemnation proceedings, the court, upon request by resolution of the board of the district
making the improvement, shall call a special term of court for the trial of the proceedings and
may summon a jury for the trial. The proceedings must be instituted and prosecuted in
accordance with chapter 32-15, except that when the interest sought to be acquired is a right of
way for the laying of any main, pipe, ditch, canal, aqueduct, or flume for conducting water,
whether within or without the district, the district may make an offer to purchase the right of way
and may deposit the amount of the offer with the clerk of the district court of the county in which
the right of way is located, and may then take possession of the right of way. The offer must be
made by resolution of the board of the district, and a copy of the resolution must be attached to
the complaint filed with the clerk of court in accordance with section 32-15-18. The clerk shall
immediately notify the owners of the land on which the right of way is located of the deposit by
causing a notice to be appended to the summons when served and published in the
proceedings as provided in the North Dakota Rules of Civil Procedure stating the amount
deposited or agreed in the resolution to be deposited. The owner may then appeal to the court
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by filing an answer to the complaint in the manner provided in the North Dakota Rules of Civil
Procedure and may have a jury trial, unless a jury is waived, to determine the damages.
However, upon due proof of the service of the notice and summons and upon deposit of the
aggregate sum agreed in the resolution, the court without further notice may make and enter an
order as authorized by section 16 of article I of the Constitution of North Dakota. If under laws of
the United States proceedings for the acquisition of any right of way are required to be instituted
in or removed to a federal court, the proceedings may be taken in that court in the same manner
and with the same effect as provided in this section and the clerk of the district court of the
county in which the right of way is located shall perform any and all of the duties set forth in this
section if the clerk is directed to do so by the federal court. The proceedings must be
determined as speedily as practicable. An appeal from a judgment in the condemnation
proceedings must be taken within sixty days after the entry of the judgment and appeal must be
given preference by the supreme court over all other civil cases except election contests. No
final judgment in the condemnation proceedings awarding damages to property used by the
district for irrigation or other purposes may be vacated or set aside if the district pays to the
defendant, or into court for the defendant, the amount awarded in cash. The district may levy
special assessments within the district to pay all or part of the judgment. To provide funds for the
payment of the judgment or for the deposit of the amount offered for purchase of a right of way,
the district may issue bonds on the fund of the improvement district as provided in
section 61-24.8-09 in anticipation of the levy and collection of special assessments or revenues
to be appropriated to the fund in accordance with this chapter. The bonds may be issued upon
or after the commencement of the condemnation proceedings. Upon the failure of the district to
make payment in accordance with this section, the judgment in the condemnation proceedings
may be vacated.
61-24.8-07. Improvement districts to be created.
For an improvement project under section 61-24.8-05 and defraying the cost of the project
by special assessments, the district may create improvement districts, and may extend any
such district when necessary. The special improvement district must be created by resolution.
The special improvement district must be directly designated by a name appropriate to the type
of improvement for which it is created and by a number distinguishing it from other improvement
districts. For examinations or surveys, the board or its employees, after written notice to each
landowner, may enter upon any land on which the proposed project is located or any other lands
necessary to gain access.
61-24.8-08. Size and form of improvement districts - Regulations governing.
Any improvement district created by the district may embrace two or more separate
property areas. Each improvement district must be of such size and form as to include all
properties, which in the judgment of the board, after consultation with the engineer planning the
improvement, will be benefited by the construction of the improvement project which is
proposed to be made in or for the district, or by any portion of the project. A single district may
be created for an improvement of the type specified in section 61-24.8-07, notwithstanding any
lack of uniformity among the types, items, or quantities of work and materials to be used at
particular locations throughout the improvement district. The jurisdiction of the district to make,
finance, and assess the cost of any improvement project may not be impaired by any lack of
commonness, unity, or singleness of the location, purpose, or character of the improvement, or
by the fact that any one or more of the properties included in the improvement district is
subsequently determined not to be benefited by the improvement, or by a particular portion of
the improvement project, and is not assessed for that purpose. The board may omit from an
improvement district property within the improvement district limits. The board may by resolution
enlarge an improvement district in which an improvement is proposed, under construction, or in
existence upon receipt of a petition signed by the owners of all of the area to be added to the
district.
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61-24.8-09. Engineer's report required - Contents.
After a special improvement district has been created, the board, if the board determines it
necessary to make any of the improvement set out in section 61-24.8-05 in the manner provided
in this chapter, shall direct the engineer for the district, or another registered professional
engineer, to prepare a report as to the general nature, purpose, and feasibility of the proposed
improvement. The engineer shall prepare profiles, plans, and specifications of the proposed
project and estimates of the total cost. The estimate of costs prepared by the engineer must
include acquisition of right of way and other costs specified in section 61-24.8-19 and must be in
sufficient detail to allow the board to determine the probable share of the total costs that will be
assessed against each of the affected landowners in the proposed assessment district.
61-24.8-10. Approval of plans, specifications, and estimates.
After receiving the engineer's report required by section 61-24.8-09, the board may direct
the engineer to prepare detailed plans and specifications for construction of the improvement.
The plans and specifications must be certified by a registered professional engineer and must
be approved by a resolution of the board.
61-24.8-11. District engineer to retain copy of plans, specifications, and estimates Sale of copies.
The engineer acting for the district shall retain a copy of the plans, specifications, and
estimates that have been prepared for any improvement. The engineer shall furnish copies at
the request of any person at a reasonable cost.
61-24.8-12. Plans, specifications, and estimates filed in office of district.
The plans, specifications, and estimates prepared as directed under section 61-24.8-10 are
the property of the district, must be filed in the district office, and must remain on file subject to
inspection by any interested person.
61-24.8-13. Hearing - Notice - Contents.
Upon the filing of the engineer's report provided for in section 61-24.8-09, and after
satisfying the requirements of section 61-24.8-10, the board shall fix a date and place for public
hearing on the proposed project. The place of hearing must be in the vicinity of the proposed
project and must be convenient and accessible for the majority of the landowners subject to
assessment for the project or whose property is subject to condemnation for the proposed
project. The board may appoint a hearing officer or a committee of the board to conduct the
hearing. The board shall cause a complete list of the benefits and assessments to be made,
setting forth each lot, piece, or parcel of land assessed, the amount each is benefited by the
improvement, and the amount assessed against each. At least fourteen days before the
hearing, the board shall file with the county auditor of each county in which the project is or will
be located the list showing the percentage assessment and approximate assessment in dollars
against each parcel of land benefited by the proposed project. Notices of the hearing must
contain the time and place where the board will conduct the hearing. The notice of hearing must
specify when and where votes concerning the proposed project may be filed and contain an
assessment list showing the percentage assessment and approximate assessment in dollars
against each parcel of land benefited by the proposed project. The board shall cause the notice
of hearing to be published once a week for two consecutive weeks in newspapers of general
circulation in the area in which the affected landowners reside and in the official county
newspaper of each county in which the benefited lands are located. The date set for the hearing
may not be fewer than fourteen days after the first publication of the notice. A record of the
hearing must be made by the board, including a list of affected landowners present in person or
by agent, and the record must be preserved in the minutes of the meeting. Affected landowners
to be assessed must be informed at the hearing of the probable total cost of the project and
their individual share of the cost and the portion of their property, if any, to be condemned for the
project.
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61-24.8-14. Voting on proposed projects.
At the hearing, the affected landowners must be informed when and where votes
concerning the proposed project may be filed. Affected landowners to be assessed have thirty
days after the date of the hearing to file their votes with the secretary of the district. Once the
deadline for filing votes has been reached, no more votes may be filed and no person may
withdraw a vote. Any withdrawal of a vote concerning the proposed project before that time must
be in writing. When the votes have been filed and the deadline for filing votes has passed, the
board shall immediately determine whether the project is approved. If the board finds that one
hundred percent of the total votes filed are for the proposed project, then the vote constitutes an
affirmation of the project and the board shall issue an order establishing the proposed project
and may proceed, after complying with the requirements of sections 61-24.8-17 and 61-24.8-18,
to contract or provide for the construction or maintenance of the project in substantially the
manner and according to the forms and procedure provided in section 61-24.8-41. The board
may enter any agreement with any federal or state agency under the terms of which the contract
for the project is to be let by the federal agency, the state agency, or a combination thereof. In
projects where there is an agreement that a party other than the board will let the contract, the
board may dispense with all of the requirements of section 61-24.8-41. Upon making an order
establishing or denying establishment of a project, the board shall publish notice of the order in
a newspaper of general circulation in the area in which the affected landowners reside and in
the official county newspaper of each county in which the benefited lands are located. Any right
of appeal begins to run on the date of publication of the notice.
61-24.8-15. Voting right or powers of landowners.
In order that there may be a fair relationship between the amount of liability for assessments
and the power of objecting to the establishment of a proposed project, the voting rights of
affected landowners on the question of establishing the project are as provided in this section.
The landowner of land affected by the project has one vote for each dollar of assessment to
which the land is subject or one vote for each dollar of the assessed valuation of land for which
fee title interest will be lost as a result of the project. There may be only one vote for each dollar
of assessment, regardless of the number of owners of a tract of land. If more than one owner of
a tract of land exists, the votes must be prorated among them in accordance with each owner's
property interest. A written power of attorney authorizes an agent to protest a project on behalf
of any affected landowner or landowners.
61-24.8-16. Assessment of cost of project.
When the board proposes to make any special assessment under this chapter, the board or
its agent, before the hearing required under section 61-24.8-13, shall inspect any and all lots
and parcels of land that may be subject to assessment and shall determine from the inspection
the particular lots and parcels of lands which, in the opinion of the board, will be directly
benefited by the construction of the work for which the assessment is made and shall assess
the proportion of the total cost of acquiring right of way and constructing and maintaining such
improvement in accordance with direct benefits received but not exceeding such benefits
against any lot, piece, or parcel of land that is directly benefited by the improvement. Property
belonging to the United States is exempt from assessment unless the United States has
provided for the payment of any assessment that may be levied against its property for benefits
received. There must be attached to the list of assessments a certificate signed by the chairman
and certified by the secretary that it is a true and correct assessment of the benefit described to
the best of their judgment and stating the several items of expense included in the assessment.
61-24.8-17. Assessment list to be published - Notice of hearing - Alteration of
assessments - Confirmation of assessment list - Filing.
After entering an order establishing the project, the board shall cause the assessment list to
be published once each week for two successive weeks in the official county newspaper of each
county in which the benefited lands are located and in local newspapers of general circulation in
the area of the affected lands. The publication must include a notice of the time and place the
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board will meet to hear objections to any assessment by any interested party or an agent or
attorney for that party. The date set for the hearing must be not less than fourteen days after the
first publication of the notice. At the hearing, the board may make such alterations in the
assessments as in its opinion may be just and necessary to correct any error in the assessment
but must make the aggregate of all assessments equal to the total amount required to pay the
entire cost of the work for which the assessments are made or the part of the cost to be paid by
special assessment. An assessment may not exceed the benefit as determined by the board to
the parcel of land assessed. The board then shall confirm the assessment list and the secretary
shall attach to the list a certificate that it is correct as confirmed by the board. The list must be
filed in the office of the district secretary.
61-24.8-18. Appeal to state engineer.
Within ten days after the hearing under section 61-24.8-17, affected landowners subject to
assessment, who believe that the assessment has not been fairly or equitably made, or that the
project is not properly located or designed, may petition the state engineer to review the
assessments and examine the location and design of the proposed project. Upon receipt of a
petition, the state engineer shall examine the lands assessed and the location and design of the
proposed project. If it appears to the state engineer that the assessments have not been made
equitably, the state engineer may proceed to correct the assessments. The state engineer's
correction and adjustment of assessments is final. If it appears to the state engineer that the
project has been improperly located or designed, the state engineer may order a relocation and
redesign, which must be followed in the construction of the proposed project. Any landowner
claiming to receive no direct benefit from the project may appeal to the state engineer the
question of whether there is any direct benefit. The appeal must be filed with the state engineer
within ten days after the hearing on assessments in section 61-24.8-17. The state engineer may
not determine the specific amount of benefit upon an appeal by an individual landowner and
may determine only if there is any direct benefit to the landowner. The determination of the state
engineer upon the appeal is final.
61-24.8-19. When assessments may be made.
After the requirements of this chapter have been satisfied and a contract and bond for any
work for which a special assessment is to be levied have been approved by the board, the
board may direct special assessments to be levied for the payment of appropriate costs and the
secretary shall certify to the board the items of total cost to be paid by special assessments so
far as they have been ascertained. The certificate must include the estimated construction cost
under the terms of any contract; a reasonable allowance for cost of extra work that may be
authorized under the plans and specifications; acquisition of right of way; engineering, fiscal
agents, and attorney's fees for any services in connection with the authorization and financing of
the improvement; cost of publication of required notices; printing of improvement bonds; cost
necessarily paid for damages caused by such improvement; interest during the construction
period; and all expenses incurred in making the improvement and levy of assessments. A
contract or contracts may not be awarded which exceed, by twenty percent or more, the
estimated cost of the project as presented to and approved by the affected landowners.
61-24.8-20. Correction of errors and mistakes in special assessments - Requirements
governing.
If mathematical errors or other mistakes occur in making any assessment resulting in a
deficiency in that assessment, the board shall cause additional assessments to be made in a
manner substantially complying with chapter 40-26 as it relates to special assessments.
61-24.8-21. Lien of special assessment.
A special assessment imposed by the district, with accrued interest and penalties, is a lien
upon the property on which the assessment is levied from the time the assessment list is
approved by the board until the assessment is fully paid. The liens have precedence over all
other liens except general tax liens and may not be divested by any judicial sale. Mistake in the
Page No. 6
description of the property covered by the special assessment lien or in the name of the owner
of such property does not defeat the lien if the assessed property can be identified by the
description in the assessment list. This chapter must be considered notice to all subsequent
encumbrances of the priority of special assessments imposed under this chapter.
61-24.8-22. Irrigation improvements in districts - Paid by service charges.
The district constructing an irrigation improvement under the special assessment method
may resolve in the resolution required by section 61-24.8-07 that a portion of the cost of the
improvement must be raised by service charges for the use of the improvement and of the utility
of which it forms a part. If the district so resolves, it may determine in its resolutions, and other
proceedings relating to the levying of special assessments and the issuing of bonds to pay the
cost of such improvement that a specified portion or all of such special assessments may be
reduced each year by the amount of revenues on deposit in the fund required by section
61-24.8-36. All of the applicable provisions of this chapter relating to special assessments are
applicable to such improvements except as to the portion of the cost of improvements resolved
or ordained to be paid by service charges. The board of the district shall provide for the
establishment, imposition, and collection of service charges for the services furnished by the
improvement and the utility of which it forms a part, and in that connection it has all the rights
and powers respecting such service charges as it would have with respect to like matters if the
improvement were made in accordance with sections 61-24-22 through 61-24-32. The net
revenues derived from the imposition and collection of the service charges or any portion of the
service charges as are determined by the board in the resolutions and ordinances must be paid
into the appropriate improvement district funds created under section 61-24.8-36. The revenues
when collected must be used and applied in the same manner as moneys paid into such funds
from the collection of special assessments. The board in issuing bonds to finance any such
improvement in its resolutions may establish an assessment reserve in the fund of the
improvement district, to which it may appropriate net revenues of the utility or system from time
to time received in excess of amounts required, with special assessments then on hand, to meet
the principal and interest next due on the bonds. Before November first of any year, the district
may by resolution determine the proportion which the amount then on hand in the assessment
reserve, and irrevocably appropriated to the payment of the bond, bears to the aggregate
amount of the installment of the special assessments levied for the improvement which is
payable in the following year, including interest. The district may direct the auditor to reduce, by
not more than a proportionate amount, the total of that installment and interest which would
otherwise be placed upon the tax list of the improvement district for the current year against
each lot and tract of land assessed or taxed for improvement. If the installment of the special
assessment on any property has been prepaid, the board may direct the district to refund, out of
the assessment reserve, to the owner of the property at the time of the refund as indicated in
the records of the recorder of the county a sum not exceeding a similar proportion of the
principal amount of such installment excluding interest.
61-24.8-23. Abbreviations, letters, or figures.
In all proceedings for the levy and collection of special assessments, abbreviations, letters,
and figures may be used to denote all or parts of additions, lots, lands, blocks, sections,
townships, ranges, years, days of the month, and amounts of money.
61-24.8-24. Record of improvements - Record as evidence.
The district office shall keep a complete record of all the proceedings taken in the matter of
making any improvements under this chapter. The record must include all reports and
confirmations, all petitions, orders, notices and proofs of publication, and resolutions of the
board. The record, a certified transcript of the record, or the original papers, proofs of
publications, orders, or resolutions on file in the office must be admitted in evidence in any court
or place in this state without further proof as evidence of the facts in those documents.
Page No. 7
61-24.8-25. Defects and irregularities in improvement proceedings.
Defects and irregularities in any proceedings had or to be had under this chapter relating to
district improvements by the special assessment method, if the proceedings are for a lawful
purpose and are unaffected by fraud and do not violate any constitutional limitation or
restriction, do not invalidate the proceedings. No action may be commenced or maintained and
no defense or counterclaim in any action may be recognized in the courts of this state founded
on any such defects or irregularities in the proceedings unless commenced within thirty days of
the adoption of the resolution of the board awarding the sale of bonds to finance the
improvement.
61-24.8-26. Payment of special assessments - Interest.
All special assessments levied under this chapter may be paid without interest within ten
days after they have been approved by the board and thereafter bear interest at an annual rate
not exceeding one and one-half percentage points above the average net annual interest rate
on any bonds for the payment of which they are pledged on the total amount remaining unpaid.
61-24.8-27. Lien between vendor and vendee of special assessments.
As between a vendor and vendee of real property, unless the purchase contract otherwise
provides, the installment of all special assessments for local improvements which are required
to be certified and returned to the county auditor in each year become a lien upon the real
property upon which they are assessed from and after the first day of December in that year.
61-24.8-28. Irrigation special assessments extended over a period of not more than
thirty years.
Special assessments for the payment of the cost of constructing any irrigation works are
payable in equal annual amounts, or in such annual amounts as will permit the annual increase
in payment of principal to approximate the annual decrease in the interest on amounts
remaining unpaid, extending over a period of not exceeding thirty years as the board may fix by
resolution.
61-24.8-29. Payments in full of assessments - Payments to county treasurer or district
treasurer - Receipts.
The owner of any property against which an assessment has been made under this chapter
for the cost of any improvement may pay in full or in part the amount remaining unpaid and the
unpaid accumulated interest. The payment in full discharges the lien of the assessment upon
that property. The payment may be made to the county treasurer upon all installments of the
assessments which have been certified to the county auditor, and may be made to the district
treasurer upon all portions of the assessment which have not been certified. Any person
desiring to pay any portion of the assessment to the district treasurer shall obtain from the
district treasurer a certificate of the amount due upon the assessment which has not been
certified to the county auditor and shall present the certificate to the district treasurer. The
district treasurer shall receive and collect that amount and issue a receipt to the person paying
the assessment. The district treasurer shall note upon the treasurer's records the payment of
the assessment.
61-24.8-30. Certification of assessments to county auditor.
When the board, by resolution, has caused special assessments to be levied to cover the
cost of constructing a project the board shall determine the rate of interest unpaid special
assessments are to bear, which rate may not exceed one and one-half percent above the bond
rate. Interest on unpaid special assessments commences on the date the assessments are
finally confirmed by the board. Special assessments may be certified and made payable in
equal annual installments, the last of which must be due and payable not more than thirty years
after the date of the bonds to be paid. The secretary of the district shall certify to the county
auditor of the county in which the improvement district is situated, or if the improvement district
embraces more than one county to the county auditor of each county in which improvement
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district lands subject to such special assessments are situated, the total amount assessed
against each piece, parcel, lot, or tract of land. The secretary of the district also shall file with the
county auditor of each county in which district lands lie a statement showing the cost of the
project and the part of the project to be financed by special assessments. Funds needed to pay
the cost of maintaining a project may be raised in the same manner as funds were raised to
meet construction costs. If the project was financed in whole or in part through the use of
special assessments, the board shall prorate the cost of construction. The district treasurer
annually shall certify to the county auditor all uncertified installments of assessments which are
to be extended upon the tax lists of the improvement district for the current year, in the manner
provided in this section. The annual certification must continue until the amount of moneys on
deposit in the fund established under section 61-24.8-36 is sufficient to cover outstanding
principal of and interest on any obligations issued to fund the projects, and in addition, to repay
the district for any payments made by the district to fund deficiencies in the fund established
under section 61-24.8-36.
61-24.8-31. District treasurer to insert amount of improvements in county real estate
book or other forms - Regulations governing.
The district treasurer shall notify the county auditor not later than August twentieth in each
year of any special assessments that were made in the improvement district in addition to those
reported in the previous year. The county auditor shall make and deliver to the district treasurer
on or before September twentieth each year a copy of the real estate assessment book or other
forms for the current year covering all additions in which any special assessments have existed
and where any will appear for the current year as advised by the district treasurer. The district
treasurer shall insert in the proper columns under the appropriate headings the amount of each
of the installments of the assessments on the lots or subdivisions of lots or tracts of land which
are to be extended upon the tax lists of the improvement district for the current year. The district
treasurer shall show the total amount of special assessments certified to the county auditor for
the current year. If a division of property has been made since the original assessment, the
district treasurer shall make or cause to be made the proper division of the special assessments
on the lots or tracts of land in the same manner as general taxes are divided and assessed as
furnished by the county auditor. The district treasurer shall certify the special assessments to
the county auditor by November first of each year.
61-24.8-32. Extension of special assessments on tax lists - Collection - Payment over
to district.
The county auditor shall extend the special assessments upon the improvement tax lists of
the district for the current year and the assessments with interest and penalties must be
collected as general taxes are collected and paid over to the district treasurer and shall be
placed by the district treasurer in the respective funds for which they were collected.
61-24.8-33. Special assessment record book kept by county auditor - Assessments
certified for more than one year.
The county auditor shall keep a special assessment record. When the improvement district
causes the installments of special assessments for a period of more than one year to be
certified, the county auditor shall cause the certified special assessments to be recorded for the
respective years and in the amounts shown in the certificate of the district treasurer. The
certificate of the district treasurer must include a list of all lots and tracts of land upon which
such assessments are levied, designating the purpose of the assessment, the fund to which it
belongs, and the installment of such assessment for each year against each lot or tract,
including interest.
61-24.8-34. County treasurer to certify and receipt for amount of special assessments
collected - Contents of certificate - Procedure for abatement.
Special assessments of any kind certified to the county auditor by the district treasurer must
be paid to the county treasurer and included in the receipt required by section 57-20-08. If the
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county treasurer receives less than the full amount of taxes and special assessments due at any
time on any lot or tract of real estate, the county treasurer shall allocate the amount of such
payment between taxes and special assessments in proportion to the respective amounts of
taxes and special assessments which are then due. When prorating any tax payment received
before October fifteenth, the term "due", as it pertains to real estate taxes, includes only the first
installment of real estate taxes. Special assessments are not subject to abatement or refund by
proceedings under chapter 57-32 but may be reviewed and corrected only in the manner and
upon the conditions provided in chapter 40-26. The county treasurer, at the time set by law for
the payment to the district treasurer of all the taxes and special assessments collected during
the preceding month, shall certify the amounts of special assessments collected. The certificate
must state specifically the lot or known subdivision as it appears on the tax books of the county
treasurer; the block, addition, amount collected, and amount credited to each lot or known
subdivision; and the year for which the sum was collected. The certificate must be furnished to
the district treasurer.
61-24.8-35. Interest and penalties added to special assessments - County treasurer to
collect and pay over.
The county treasurer shall add to all special assessments the same interest and penalties
that are added in the case of general taxes and at the same time. The county treasurer shall
collect the interest and penalties with the special assessments and shall pay all such interest
and penalties collected over to the district treasurer.
61-24.8-36. Special improvement moneys to be kept separate - Designation and
numbering of funds - Diversion of moneys prohibited.
All special assessments and taxes levied and other revenues pledged under the provisions
of this chapter to pay the cost of an improvement constitute a fund for the payment of that cost,
including all principal of and interest on bonds and other obligations issued by the district to
finance the improvement, and may be diverted to no other purpose. The district treasurer shall
hold all moneys received for any such fund as a special fund to be applied to payment for the
improvement. Each fund must be designated by the name and number of the improvement
district in or for which the special assessments, taxes, and revenues are collected. When all
principal and interest on bonds and other obligations of the fund have been fully paid, all
moneys remaining in a fund may be transferred into the general fund of the district. Any
deficiency in any fund created for the payment of district bonds payable in whole or in part out of
collections of special assessment taxes must be the general obligation of the district.
61-24.8-37. Bonds - When payable - Amounts - Interest.
At any time after entering a contract for a project to be financed in whole or in part by
special assessments, the district may issue temporary and definitive bonds on the project fund
created for that purpose in the manner and subject to the limitations prescribed in
section 40-24-19. If the bonds are issued to finance an irrigation project, the net revenues
derived from the imposition of service charges to be imposed and collected with respect to the
project as provided in section 61-24.8-22 may be pledged to payment of those bonds. Bonds
issued under this section must be in amounts as in the judgment of the board will be necessary
for the project. The bonds must bear interest at a rate or rates and be sold at a price resulting in
an average net interest cost not exceeding twelve percent per annum if sold at private sale.
There is no interest rate ceiling on bond issues sold at public sale or to the state or any of its
agencies or instrumentalities. The bonds must state upon their face the purpose for which they
are issued and the project fund from which they are payable and must be signed by the manual
or facsimile signature of the chairman of the district board and countersigned by the manual or
facsimile signature of the secretary of the district. The bonds must be payable in such amounts
as the board determines, extending over a period of not more than thirty years.
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61-24.8-38. Bonds may be used in making payments on contract - Bonds payable out
of fund on which drawn - May be used to pay special assessments.
Improvement bonds may be sold for cash at not less than ninety-eight percent of par and
accrued interest, and the proceeds, less accrued interest, must be credited to the construction
account of the fund and must be used exclusively to pay those contracts and construction costs.
Any balance remaining in any construction account after completion of any project must be
transferred to the sinking fund account of the assessment fund. The treasurer of the district shall
pay special assessment bonds as they mature and are presented for payment out of the fund on
which they are drawn and shall cancel the bonds when paid.
61-24.8-39. Refunding special assessment bonds - Purposes for which such bonds
may be issued - Payment of bonds.
Any district having outstanding special assessment bonds, payable in whole or in part out of
collections from special assessments, which are past-due or which are redeemable, either at
the option of the district or with the consent of the bondholders, may issue refunding special
assessment bonds if there is not sufficient money in the project fund against which such bonds
are drawn to pay the same. The issuance of refunding bonds must be authorized by resolution
of the board. The resolution must describe the bonds to be refunded and their amount and
maturity. Refunding bonds may be issued to extend the maturities of bonds payable in whole or
in part by special assessments or to reduce the interest on the bonds. Refunding bonds must
bear such date, be in such date, be in such denominations, and mature serially within such time,
not exceeding thirty years from date of issuance, as the board determines. The treasurer of the
district shall pay special assessment bonds as they mature and are presented for payment out
of the fund against which they are drawn and shall cancel the bonds when paid.
61-24.8-40. Foreclosure of tax lien on property when general and special assessment
taxes are delinquent.
Special assessments imposed under this chapter become due and delinquent and are
subject to penalties for nonpayment at the same date and rates as first installments of real
estate taxes at the same time and in the same manner as provided in title 57. If there is no
delinquent general property tax against a tract or parcel of land and it is foreclosed for special
assessments alone, the notice of foreclosure of tax lien must state that the foreclosure is for
special assessments and a tax deed in such case must be issued in the usual course of
procedure.
61-24.8-41. Contracts for construction or maintenance of project.
If the cost of construction or maintenance of a project does not exceed the amount provided
for construction of a public improvement under section 48-01.2-02, the work may be done on a
day work basis or a contract may be let without being advertised. If the costs of the construction
or maintenance exceed the amount provided for construction of a public improvement under
section 48-01.2-02, the board must let a contract in accordance with chapter 48-01.2.
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