Annexation restrictions approved

Restrictions on asset expenditures by sanitary and improvement districts (SIDs) that have received notice of annexation were approved Feb. 18.

Under LB131, introduced by Omaha Sen. Joni Craighead last session, expenditures by an SID will be restricted for 90 days upon receiving notification of a city or village’s intent to annex.

Payments on construction bonds, construction fund warrants, general fund warrants and contracted labor and services are exempt from the spending restriction.

Any proposed construction projects that have not been put to a public bidding process prior to receiving notice of annexation will be submitted to the city’s finance director for approval during the 90-day period.

The bill was amended on select file to include provisions of LB827, sponsored by Omaha Sen. Burke Harr, which makes clear that counties may collect ad valorem taxes and special assessments from SIDs.

LB131 passed on a vote of 46-0.

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