Senate committee substitute makes the following changes to 1st edition. Deletes all provisions in proposed new GS 160A-536 and replaces them with the following. Authorizes a city to establish a service district to convert private residential streets to public streets if the following conditions are met: (1) the service district tax only is used to pay certain specified costs related to the transfer of ownership of the streets, evaluation of the condition of the streets, and the design and construction costs related to improving the private streets to meet public street standards; (2) the service district tax may not exceed 30% of the ad valorem tax rate in effect in the city in the fiscal year prior to the establishment of the district; (3) no further service district tax may be imposed, and the district must be abolished, after the private streets have been upgraded to meet public street standards and all costs have been recovered. Provides that if the city abandons the streets and associated rights-of-way, the street-related common elements must be returned to the owner’s association from which the city acquired them. Specifies that certain conditions must be met for a city to be able to create a municipal service district to convert private residential streets to public streets, including that the private residential road be nongated; that the city receive a petition signed by at least 60% of the lot owners of the owners’ association requesting the service district; that the city agree to accept the converted streets for perpetual public maintenance; and that the city, and county in which the city is located, meet certain threshold population requirements.