How to start refunding improvement district debt

(a) (1) Subject to § 14-12.1 (b), the owners or lessees of real property in any improvement district, whose property represents 75 percent or more of the outstanding improvement assessments at the time of the filing of the petition, may file with the council a petition setting forth the indebtedness of the improvement district requesting that the indebtedness be refunded, and stating the proposed method of refunding the outstanding indebtedness. The council shall thereupon by resolution request the mayor to direct the director to investigate and report to the council: (A) The amount of unpaid assessments and the property subject to the same in the improvement district; (B) The detail of any delinquent assessments and of any unpaid penalties; (C) Whether the petitioners own real estate representing 75 percent or more of the unpaid assessments in the district; (D) The proposed method of reassessment of the lands subject to existing assessments; (E) A new assessment roll showing the proposed new assessments; (F) The cost of the proposed refunding; and (G) Other details that may be necessary to carry into effect the proposed refunding. Such report of the director shall be filed with the council. Within seven days after the filing of the director’s report, the petitioners shall deposit with the director of budget and fiscal services a sum sufficient to meet the cost of preparing the proposed refunding plan. (2) Thereafter, the council shall, by resolution, propose the adoption of the suggested refunding plan specifying the outstanding indebtedness of the improvement district, that the owners and lessees of land representing not less than 75 percent of the unpaid improvement assessments have petitioned that the outstanding indebtedness of the improvement district be refunded, the proposed refunding plan in detail, and the proposed method of reassessment, including the number of installment payments to be proposed, and the amount of assessment that may include all costs of refunding. The resolution shall refer to and incorporate by reference the assessment roll and such other data reported by the director as shall be approved by the council. The resolution shall also fix the date of a public hearing upon such plan, which date shall not be less than 15 days after the first publication of notice thereof in the manner provided by applicable State law or, if no State law applies, in a newspaper of general circulation in the city. After the adoption of the resolution, the city clerk shall cause a notice to be published and mailed as provided for in § 14-10.4 stating the time and place of the public hearing and where the resolution, assessment roll, and other data may be seen and examined before the hearing. Affidavits of publication and mailing shall be filed with the council at or before the hearing. (b) The refunding of outstanding indebtedness under this article may be initiated by the council on its own motion as an alternative to initiation by petition of the owners and lessees as provided in subsection (a) and without obtaining the prior approval of such owners and lessees. Notwithstanding that a proposed refunding of outstanding indebtedness is initiated by the council on its own motion, the report of the director required by subsection (a)(1) shall be prepared, and the public hearing required by subsection (a)(2) shall be held, in accordance with subsection (a). In the event a proposed refunding is initiated by the council on its motion pursuant to this subsection, the new assessments approved by the council pursuant to § 14-13.4 shall not be greater in any year than the assessments for such year in effect before the approval of such new assessments. )