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House Journal: Page 1675: Tuesday, April 16, 1996

Page  27

 1   to pay in full any installment of principal or
 2   interest, a public issuer of bonds may anticipate the
 3   next levy of property taxes pursuant to this section
 4   or the imposition of an income surtax under section
 5   76.19 in the manner provided in chapter 74, whether
 6   the taxes so anticipated are to be collected in the
 7   same or a future fiscal year.
 8     To further secure the payment of the bonds, the
 9   governing authority shall, by resolution, provide for
10   the assessment of an annual levy of a standby tax upon
11   all taxable property within the political subdivision.
12   A copy of the resolution shall be sent to the county
13   auditor of each county in which the political
14   subdivision is located.  The revenues from the standby
15   tax shall be deposited in a special fund and shall be
16   expended only for the payment of principal and
17   interest on the bonds issued as provided in this
18   section, when the revenue from an income surtax as
19   provided in section 76.19 is insufficient.  Reserves
20   shall not be built up in this fund in anticipation of
21   a projected default.  The governing authority shall
22   adjust the annual standby property tax levy for each
23   year to reflect the amount of revenues in the special
24   fund and the amount of principal and interest which is
25   due in that year.
26     Sec. ___.  Section 76.4, Code 1995, is amended to
27   read as follows:
28     76.4  PERMISSIVE APPLICATION OF FUNDS.
29     Whenever If the governing authority of such
a~ 
30   political subdivision shall have has on hand funds
31   derived from any other a source other than
taxation
32   which may be appropriated to the payment either of
33   interest or principal or interest, or both principal
34   and interest of such bonds, such the funds may be
so
35   appropriated and used and the property tax levy and
36   income surtax rate, if imposed, for the payment of the
37   bonds correspondingly reduced.
38     Sec. ___.  Section 76.7, Code 1995, is amended to
39   read as follows:
40     76.7  PARTICULAR BONDS AFFECTED - PAYMENT.
41     Counties, cities, and school corporations may at
42   any time or times extend or renew any legal
43   indebtedness or any part thereof of the indebtedness
44   they may have represented by bonds or certificates
45   where such the indebtedness is payable from a
limited
46   annual property tax or from a voted annual property
47   tax, or from an income surtax imposed under section
48   76.19, and may by resolution fund or refund the same
49   legal indebtedness and issue bonds therefor running
50   not more than twenty years to be known as funding or

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 2)

© 1996 Cornell College and League of Women Voters of Iowa

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