Street improvement district changes considered

The Urban Affairs Committee heard testimony Feb. 11 on a bill that would eliminate a disparity in how Nebraska cities pay for street improvements.

Currently, first class cities, which have a population of 5,001 to 100,000, may create improvement districts for the purpose of paving, repaving or making certain other improvements to streets and alleys.

Kearney Sen. Stan Clouse, sponsor of LB90, said those cities currently are required to levy a special assessment on adjacent property to fund improvements in the district. Under his proposal, a city could levy a special assessment or fund the improvements at public cost.

LB90 would require the mayor and city council to create an improvement district by ordinance. Additionally, it would expand current law by allowing first class cities also to construct streets and alleys — as well as sidewalks, public ways and other public spaces — in the districts.

First class cities still would be required to provide notice when they create an improvement district, Clouse said, and affected property owners would retain the right to object.

Mike Rogers, an Omaha bond attorney, testified in support of the bill. He said second class cities and villages — which have populations of 801 to 5,000 and 100 to 800, respectively — that create improvement districts may use general funds to pay for improvements rather than levy a special assessment.

LB90 would eliminate the current disparity and grant the same flexibility to larger cities, Rogers said.

No one testified in opposition to the bill and the committee took no immediate action on it.