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LB 90

Change provisions relating to improvement districts in cities of the first class

109th Legislature (2025-2026) Introduced by Rob Clements and 2 co-sponsors

LB 90 lets first-class Nebraska cities fund street improvement districts with public funds or special assessments, boosting fiscal flexibility while protecting property owners.

Approved by Governor on May 13, 2025
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Bill Summary · LB 90

Summary — LB 90 (2025)

Title: Change provisions relating to improvement districts in cities of the first class
Status: Approved by Governor (May 13, 2025)

Overview / Purpose

LB 90 revises statutes in Chapter 16 governing street and related improvement districts in Nebraska cities of the first class. The principal change is to give these cities the same flexibility already available to cities of the second class and villages: improvements undertaken in an improvement district may be funded either at public cost or by levying special assessments on benefited property. The bill also modernizes and harmonizes eligible improvements and several procedural protections when special assessments are used.

Key provisions (by subject / section)

  • Scope and funding (sec. 16-617): Mayor and city council may create numbered improvement districts; improvements in such districts may be funded at public cost or by special assessments (previously required assessments).
  • Definition of “improvement” (sec. 16-617.01): Broader, non‑exclusive list added (paving, repaving, graveling, grading, curbing, guttering, pedestrian walks, plazas, malls, landscaping, lighting systems, permanent facilities).
  • District composition (sec. 16-618): Districts may include sidewalks, public ways, other public spaces and may combine two or more types of improvements into a single ordinance/district (continuous or extended area).
  • Notice when assessments are used (sec. 16-619): If any improvements in a district are to be funded by special assessments, the city clerk must publish notice of the district’s creation once each week for not less than twenty days in a legal city newspaper.
  • Owner objections (sec. 16-620): Owners of record title at the time of the notice representing >50% of the front footage abutting the improvement may file written objections within 20 days from first publication; if such objections are timely filed the ordinance creating the district must be repealed by the mayor and city council.
  • Bidding and material selection (sec. 16-621): When advertising bids for improvements in a district, the city must include bids on any material(s) suggested by petition of owners representing 25% of abutting property (if filed before advertisement). After bids open, action is postponed at least 10 days; during that period owners representing a majority of abutting property may petition to select a particular material for which a bid was received.
  • Assessments and bonds (secs. 16-622, 16-624): Assessment procedures harmonized with existing municipal statutes; bill allows issuance of street improvement bonds. (Detailed levy/repayment provisions retained/updated; assessments may be levied and, where applicable, payable in installments not to exceed 20 years.)

Who is affected

  • Cities of the first class (Nebraska’s largest cities): gain discretion to fund district improvements from public funds rather than mandating property assessments.
  • Property owners in proposed improvement districts: retain expanded statutory protections and procedural rights when special assessments are proposed (notice, objection window, material-selection petition rights).
  • Municipal finance offices and contractors: changes affect bidding, contracting, financing (potentially more municipal-funded projects and bond issuances).

Procedural / timeline notes

  • Introduced: Jan 10, 2025
  • Urban Affairs hearing: Feb 11, 2025 (advanced out of committee)
  • Passed Legislature on Final Reading: May 9, 2025 (vote 48-0-1)
  • Presented to Governor: May 9, 2025; Approved (signed) May 13, 2025
  • Sections amended: 16-617, 16-617.01, 16-618, 16-619, 16-620, 16-621, 16-622, 16-623, 16-624 (Reissue Revised Statutes of Nebraska). Original sections repealed where indicated.

Potential fiscal/policy implications

  • Municipal budgets: Cities may shift some street and public-space improvement costs to public funds (general fund or bond financing) rather than relying on property owner special assessments, altering local fiscal burdens and capital planning.
  • Property-owner protections: The bill preserves and clarifies enhanced notice and objection procedures when assessments are proposed, maintaining historical safeguards.

Sponsors: Primary — Sen. Clements; Cosponsors — Sen. Clouse, Sen. Quick.

Compiled from official sources — confirm details with the bill’s official record.

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