Text: H01896 Text: H01898 Text: H01800 - H01899 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 514, as amended, passed, and 1 2 reprinted by the Senate, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "Section 1. NEW SECTION. 25B.5A UNFUNDED STATE 1 6 MANDATES – EFFECT. 1 7 If, on or after July 1, 2001, a state mandate is 1 8 enacted by the general assembly, or otherwise imposed, 1 9 on a political subdivision and the state mandate 1 10 requires a political subdivision to engage in any new 1 11 activity, to provide a new service, or to provide any 1 12 service beyond that required by any law enacted prior 1 13 to July 1, 2001, and the state does not appropriate 1 14 moneys to fully fund the cost of the state mandate as 1 15 identified pursuant to section 25B.5, subsections 1 1 16 and 2, the political subdivision is not required to 1 17 perform the activity or provide the service and the 1 18 political subdivision shall not be subject to any 1 19 liabilities imposed by the state or the imposition of 1 20 any fines or penalties for the failure to comply with 1 21 the state mandate. 1 22 Sec. 2. NEW SECTION. 28L.1 IOWA COMMISSION ON 1 23 STATE AND LOCAL TAXATION. 1 24 1. An Iowa commission on state and local taxation 1 25 is created which shall consist of fourteen members 1 26 appointed as follows: 1 27 a. Three senators appointed by the majority leader 1 28 of the senate, one of whom shall be nominated by the 1 29 minority leader of the senate. Two of the appointees 1 30 shall be residents of a county with a population of 1 31 less than forty thousand. 1 32 b. Three representatives appointed by the speaker 1 33 of the house, one of whom shall be nominated by the 1 34 minority leader of the house. Two of the appointees 1 35 shall be residents of a county with a population of 1 36 less than forty thousand. 1 37 c. One member appointed by the Iowa state 1 38 association of counties. 1 39 d. One member appointed by the Iowa league of 1 40 cities. 1 41 e. One member appointed by the Iowa association of 1 42 school boards. 1 43 f. One member from an organization representing 1 44 agricultural interests appointed jointly by the 1 45 majority leader of the senate and the speaker of the 1 46 house. 1 47 g. One member from an organization representing 1 48 taxpayers and appointed jointly by the majority leader 1 49 of the senate and the speaker of the house. 1 50 h. One member from an organization representing 2 1 business taxpayers and appointed jointly by the 2 2 majority leader of the senate and the speaker of the 2 3 house. 2 4 i. One member representing small business owners 2 5 appointed jointly by the majority leader of the senate 2 6 and the speaker of the house. 2 7 j. The director of the department of management or 2 8 the director's designee. 2 9 2. In making all appointments, consideration shall 2 10 be given to gender, race, or ethnic representation, 2 11 population and demographic factors, and representation 2 12 of different geographic regions. Appointments made 2 13 under subsection 1, paragraphs "c" through "e", are 2 14 not subject to section 69.16 or 69.16A. 2 15 3. Members of the commission shall hold office for 2 16 four years beginning June 1 of the year of appointment 2 17 and until their successors are appointed, except that 2 18 three initial appointees shall be appointed for one 2 19 year, three initial appointees for two years, four 2 20 initial appointees for three years, and three initial 2 21 appointees for four years. The commission shall 2 22 conduct its organizational meeting no later than 2 23 September 1, 2001, and at that meeting shall elect a 2 24 chairperson to serve until May 2002. 2 25 4. Legislative members of the commission are 2 26 eligible for per diem and expenses as provided in 2 27 section 2.10. Other members of the commission shall 2 28 be reimbursed for actual and necessary expenses 2 29 incurred in performance of their duties. Members may 2 30 also be eligible to receive compensation as provided 2 31 in section 7E.6. 2 32 5. A majority of the commission members shall 2 33 constitute a quorum. For the purpose of conducting 2 34 business, a majority vote of the commission shall be 2 35 required. Beginning in May 2002, the commission shall 2 36 meet in May of each year for the purpose of electing 2 37 one of its members as chairperson. The commission 2 38 shall meet quarterly and at other times as necessary 2 39 at the call of the chairperson or when any five 2 40 members of the commission file a written request with 2 41 the chairperson for a meeting. Written notice of the 2 42 time and place of each meeting shall be given to each 2 43 member of the commission. 2 44 6. The commission may establish committees, as it 2 45 deems advisable and feasible, whose membership shall 2 46 include at least two members of the commission, but 2 47 only the commission may take final action on a 2 48 proposal or recommendation of a committee. 2 49 7. Any vacancy shall be filled in the same manner 2 50 as regular appointments are made for the unexpired 3 1 portion of the regular term. A member of the 3 2 commission may be removed for any of the causes and in 3 3 the manner provided in chapter 66. 3 4 Sec. 3. NEW SECTION. 28L.2 STAFF AND FACILITIES. 3 5 The commission and committees established by the 3 6 commission may accept technical and operational 3 7 assistance from the staff of the legislative service 3 8 bureau and the legislative fiscal bureau, other state 3 9 or federal agencies, units of local governments, or 3 10 any other public or private source. The directors of 3 11 the legislative service bureau and the legislative 3 12 fiscal bureau may assign professional, technical, 3 13 legal, clerical, or other staff, as necessary and 3 14 authorized by the legislative council for continued 3 15 operation of the commission. However, technical and 3 16 operational assistance provided by the bureaus shall 3 17 be provided within existing appropriations made to or 3 18 with existing resources of the legislative service 3 19 bureau and legislative fiscal bureau. The legislative 3 20 council may also provide to the commission available 3 21 facilities and equipment as requested by the 3 22 commission. The legislative council shall provide 3 23 funding for consulting services should the commission 3 24 deem it appropriate. 3 25 Sec. 4. NEW SECTION. 28L.3 REVIEW OF STATE AND 3 26 LOCAL REVENUE AND SERVICES. 3 27 1. The commission shall conduct a review of the 3 28 following: 3 29 a. Revenue sources available to local governments, 3 30 including taxes, fees, state appropriations, and 3 31 federal moneys. 3 32 b. Revenue sources available to the state, 3 33 including taxes, fees, and federal moneys, and the 3 34 portion of state revenues annually appropriated, or 3 35 otherwise disbursed, to local governments. 3 36 c. Services provided by local governments, 3 37 including those provided at the discretion of a local 3 38 government and those mandated by federal or state 3 39 statutes and regulations. 3 40 2. In conducting its review of revenue sources, 3 41 the commission shall study state and local taxes from 3 42 the standpoint of equity, neutrality, competitiveness, 3 43 simplicity, and stability. 3 44 3. The commission shall hold public hearings to 3 45 allow persons and organizations to be heard. 3 46 4. The commission shall submit a report to the 3 47 general assembly on the status of the review no later 3 48 than March 15, 2002. The status report shall 3 49 summarize the commission's activities to date and may 3 50 include such other information that the commission 4 1 deems relevant and necessary. 4 2 5. a. The commission shall submit a final report 4 3 to the general assembly no later than January 15, 4 4 2006. 4 5 b. The final report shall include the following: 4 6 (1) A statement of goals that the commission 4 7 believes are necessary to achieve principles of 4 8 taxation agreed upon by the committee. 4 9 (2) Any strategies formulated by the commission 4 10 that consist of recommended methods of state and local 4 11 taxation, specific structural changes, and any 4 12 modifications to the current system of state and local 4 13 taxation. 4 14 (3) Such other information that the commission 4 15 deems relevant and necessary. 4 16 6. This section shall not be construed to preclude 4 17 the enactment of legislation that eliminates or 4 18 reduces any state or local government tax during the 4 19 period the Iowa commission on state and local taxation 4 20 is conducting the review required by this section. 4 21 Sec. 5. NEW SECTION. 28L.4 DUTIES OF THE 4 22 COMMISSION. 4 23 The commission shall: 4 24 1. Conduct the review as required in section 4 25 28L.3. 4 26 2. Monitor legislative or administrative action on 4 27 recommendations in the report required in section 4 28 28L.3. 4 29 3. Annually report on the state of local 4 30 governments in Iowa. 4 31 4. Annually report on state and federal issues 4 32 relating to local government that have a potential 4 33 fiscal impact on local governments. 4 34 5. Annually report on court decisions having an 4 35 impact on state and local government revenue or 4 36 services. 4 37 6. Select participants to the pilot projects 4 38 established in sections 331.440B and 384.22A and 4 39 report to the general assembly as required in those 4 40 sections. 4 41 7. The reports in subsections 3, 4, and 5 shall be 4 42 filed with the governor, president of the senate, 4 43 speaker of the house, and the majority and minority 4 44 leaders of each house, and shall be made available to 4 45 legislators and the public upon request. The reports 4 46 must be submitted no later than January 15 of each 4 47 year. The report in subsection 6 shall be filed with 4 48 the general assembly on or before January 1, 2005. 4 49 Sec. 6. NEW SECTION. 28L.5 INFORMATION. 4 50 The commission may request from any state agency or 5 1 official the information and assistance as needed to 5 2 perform the duties of the commission. A state agency 5 3 or official shall furnish the information or 5 4 assistance requested within the authority and 5 5 resources of the state agency or official. This 5 6 section does not allow the examination or copying of 5 7 any public record which is required by law to be kept 5 8 confidential. 5 9 Sec. 7. NEW SECTION. 28L.6 FUTURE REPEAL. 5 10 This chapter is repealed effective July 1, 2006. 5 11 Sec. 8. Section 331.325, Code 2001, is amended to 5 12 read as follows: 5 13 331.325 CONTROL AND MAINTENANCE OF PIONEER 5 14 CEMETERIES – CEMETERY COMMISSION. 5 15 1. As used in this section, "pioneer cemetery" 5 16 means a cemetery where there have been six or fewer 5 17 burials in the preceding fifty years. 5 18 2. Each county board of supervisors may adopt an 5 19 ordinance assuming jurisdiction and control of pioneer 5 20 cemeteries in the county. The board shall exercise 5 21 the powers and duties of township trustees relating to 5 22 the maintenance and repair of cemeteries in the county 5 23 as provided in sections 359.28 through 359.41 except 5 24 that the board shall not certify a tax levy pursuant 5 25 to section 359.30 or 359.33 and except that the 5 26 maintenance and repair of all cemeteries under the 5 27 jurisdiction of the county including pioneer 5 28 cemeteries shall be paid from the county general fund 5 29 or the cemetery fund established in section 331.440H, 5 30 as applicable. The maintenance and improvement 5 31 program for a pioneer cemetery may include restoration 5 32 and management of native prairie grasses and 5 33 wildflowers. 5 34 3. In lieu of management of the cemeteries, the 5 35 board of supervisors may create, by ordinance, a 5 36 cemetery commission to assume jurisdiction and 5 37 management of the pioneer cemeteries in the county. 5 38 The ordinance shall delineate the number of 5 39 commissioners, the appointing authority, the term of 5 40 office, officers, employees, organizational matters, 5 41 rules of procedure, compensation and expenses, and 5 42 other matters deemed pertinent by the board. The 5 43 board may delegate any power and duties relating to 5 44 cemeteries which may otherwise be exercised by 5 45 township trustees pursuant to sections 359.28 through 5 46 359.41 to the cemetery commission except the 5 47 commission shall not certify a tax levy pursuant to 5 48 section 359.30 or 359.33 and except that the expenses 5 49 of the cemetery commission shall be paid from the 5 50 county general fund or the cemetery fund established 6 1 in section 331.440H, as applicable. 6 2 4. Notwithstanding sections 359.30 and 359.33, the 6 3 costs of management, repair, and maintenance of 6 4 pioneer cemeteries shall be paid from the county 6 5 general fund or the cemetery fund established in 6 6 section 331.440H, as applicable. 6 7 Sec. 9. NEW SECTION. 331.404 COUNTY FINANCIAL 6 8 MANAGEMENT PLAN. 6 9 Each county shall prepare a financial management 6 10 plan for the county for use in budget planning. The 6 11 financial management plan shall contain a set of 6 12 financial policies for use by counties in budget 6 13 planning. The county financial management plan shall 6 14 be prepared in a manner which will assist counties in 6 15 identifying budgeting goals, fiscal and service 6 16 planning strategies, and revenue targets. County 6 17 financial management planning shall be completed on 6 18 forms prepared by the department of management and 6 19 approved by the county finance committee in 6 20 consultation with the Iowa state association of county 6 21 supervisors, the Iowa state association of county 6 22 auditors, and the public. 6 23 Copies of the financial management plan for a 6 24 county shall be maintained as a public record at the 6 25 county auditor's office and shall be filed with the 6 26 state appeal board in the same manner and at the same 6 27 time that certified budgets are filed under section 6 28 24.17. 6 29 Sec. 10. NEW SECTION. 331.423A ENDING FUND 6 30 BALANCE. 6 31 Effective for a fiscal year beginning on or after 6 32 July 1, 2005, actual ending fund balances shall not 6 33 exceed twenty-five percent of actual expenditures in 6 34 the previous fiscal year for either the general fund 6 35 or the rural services fund. Actual ending fund 6 36 balances for a fiscal year in excess of twenty-five 6 37 percent of actual expenditures in the previous fiscal 6 38 year shall be reserved or designated for a specific 6 39 purpose and specifically described in the certified 6 40 budget. The excess actual balance for that specific 6 41 purpose shall be considered an increase in an item in 6 42 the budget for the following fiscal year for purposes 6 43 of section 24.28. 6 44 Counties shall reach the twenty-five percent fund 6 45 balance limitation by the fiscal year ending June 30, 6 46 2005, and shall maintain the balance at this level or 6 47 at a lower level as recorded in the annual financial 6 48 report. A county shall not exceed a balance greater 6 49 than five percent above the twenty-five percent fund 6 50 balance limitation. If a county exceeds the 7 1 limitation, in the second budget year following the 7 2 fiscal year that shows a fund balance exceeding the 7 3 limitation, the county shall implement a levy 7 4 reduction formula to offset the excess fund balance. 7 5 Up to ten percent of an amount reserved or 7 6 designated for a specific purpose may be used for a 7 7 purpose other than that described in the certified 7 8 budget. Such change in use shall be treated as an 7 9 amendment to the budget subject to section 331.435. 7 10 The board of supervisors may change the specific 7 11 purpose for which all or a portion of funds in excess 7 12 of ten percent are reserved or designated if the 7 13 proposition to change the specific purpose has been 7 14 submitted at a special election and received a 7 15 favorable majority of the votes cast on the 7 16 proposition. The special election shall be held in 7 17 the manner provided in section 331.425, except that if 7 18 the change in purpose is to the general services fund 7 19 ending balance, registered voters in the county may 7 20 vote on the proposition and if the change in purpose 7 21 is the rural services fund ending balance, registered 7 22 voters residing outside the corporate limits of a city 7 23 within the county may vote on the proposition. 7 24 Sec. 11. Section 331.429, subsection 1, Code 2001, 7 25 is amended by adding the following new paragraph: 7 26 NEW PARAGRAPH. f. Notwithstanding paragraphs "a" 7 27 and "b", transfers from the general fund or rural 7 28 services fund in accordance with this paragraph. The 7 29 board may transfer additional funds from the general 7 30 fund or rural services fund in excess of the amounts 7 31 in paragraphs "a" and "b" if the proposition has been 7 32 submitted at a special election and received a 7 33 favorable majority of the votes cast on the 7 34 proposition. The board shall direct the county 7 35 commissioner of elections to submit the proposition at 7 36 an election. The board must give at least thirty-two 7 37 days' notice to the county commissioner of elections 7 38 that the special election is to be held. For a 7 39 transfer from the general fund, registered voters of 7 40 the county may vote on the proposition. For a 7 41 transfer from the rural services fund, registered 7 42 voters of the county residing outside the corporate 7 43 limits of a city within the county may vote on the 7 44 proposition. The proposition to be submitted shall be 7 45 substantially in the following form: 7 46 "Vote "yes" or "no" on the following question: 7 47 Shall the county of _______ transfer an additional 7 48 $______ each year for two years beginning July 1, 7 49 ____, from the (general fund or rural services fund) 7 50 to the secondary road fund?" 8 1 Notice of the special election shall be published 8 2 at least once in a newspaper in the manner provided in 8 3 section 331.305. Notice of the special election shall 8 4 appear as early as practicable after the board has 8 5 voted to submit a proposition to the voters to 8 6 transfer funds from the general fund or rural services 8 7 fund to the secondary road fund. 8 8 If a majority of the votes cast are in favor of the 8 9 proposition, the board shall certify the results of 8 10 the election to the department of management and 8 11 transfer the approved amount to the secondary road 8 12 fund in the appropriate fiscal year. 8 13 PART 2A 8 14 COUNTY LEVIES, FUNDS, BUDGETS, AND 8 15 EXPENDITURES – PILOT PROJECT 8 16 Sec. 12. NEW SECTION. 331.440B PILOT PROJECT. 8 17 For the fiscal year beginning July 1, 2002, through 8 18 the fiscal year ending June 30, 2005, a county may 8 19 participate in a pilot project under this part. To 8 20 participate, a county board of supervisors must adopt 8 21 a resolution in favor of participation in the pilot 8 22 project and must forward the resolution to the Iowa 8 23 state association of counties and the commission on 8 24 state and local taxation by September 1, 2001. The 8 25 commission may select participating counties based on 8 26 population, property valuations, and other factors 8 27 deemed appropriate by the commission. No more than a 8 28 total of ten counties and cities may participate in a 8 29 pilot project under this part or under chapter 384, 8 30 division IIA. 8 31 On or before January 1, 2005, the commission shall 8 32 report on the pilot project to the general assembly. 8 33 The report shall include such data and information 8 34 necessary to allow the general assembly to evaluate 8 35 the pilot project. 8 36 Sections 331.421, 331.423, 331.424, 331.424C 8 37 through 331.426, do not apply to this part. 8 38 References in the Code of Iowa to these sections do 8 39 not apply to counties participating in the pilot 8 40 project under this part. 8 41 Sec. 13. NEW SECTION. 331.440C DEFINITIONS. 8 42 As used in this part, unless the context otherwise 8 43 requires: 8 44 1. "Committee" means the county finance committee 8 45 established in chapter 333A. 8 46 2. "Debt service" means expenditures for servicing 8 47 the county's debt. 8 48 3. "Debt service levy" means a levy authorized and 8 49 limited by section 331.422, subsection 3. 8 50 4. "Emergency services levy" means a levy 9 1 authorized and limited by section 331.424C. 9 2 5. "Fiscal year" means the period of twelve months 9 3 beginning July 1 and ending on the following June 30. 9 4 6. "General county services" means the services 9 5 which are primarily intended to benefit all residents 9 6 of a county, including secondary road services, but 9 7 excluding services financed by other statutory funds. 9 8 7. "Item" means a budgeted expenditure, 9 9 appropriation, or cash reserve from a fund for a 9 10 service area, program, program element, or purpose. 9 11 8. "Rural county services" means the services 9 12 which are primarily intended to benefit those persons 9 13 residing in the county outside of incorporated city 9 14 areas, including secondary road services, but 9 15 excluding services financed by other statutory funds. 9 16 9. "Secondary road services" means the services 9 17 related to secondary road construction and 9 18 maintenance, excluding debt service and services 9 19 financed by other statutory funds. 9 20 Sec. 14. NEW SECTION. 331.440D PROPERTY TAX 9 21 DOLLARS – MAXIMUMS. 9 22 1. Annually, the board shall determine separate 9 23 property tax levy limits to pay for general county 9 24 services and rural county services in accordance with 9 25 this section. The property tax levies separately 9 26 certified for general county services and rural county 9 27 services in accordance with section 331.434 shall not 9 28 exceed the amount determined under this section. 9 29 2. For purposes of this section and sections 9 30 331.423A and 331.423B: 9 31 a. "Annual price index" means the change, computed 9 32 to four decimal places, between the preliminary price 9 33 index for the third quarter of the calendar year 9 34 preceding the calendar year in which the fiscal year 9 35 starts and the revised price index for the third 9 36 quarter of the previous calendar year as published in 9 37 the same issue in which such preliminary price index 9 38 is first published. The price index used shall be the 9 39 state and local government chain-type price index used 9 40 in the quantity and price indexes for gross domestic 9 41 product as published by the United States department 9 42 of commerce. The annual price index shall not be less 9 43 than zero and shall not exceed four hundredths. The 9 44 change shall then be added to one to create a 9 45 multiplier for the annual price index. For the fiscal 9 46 year beginning July 1, 2002, the annual price index as 9 47 defined in this paragraph, for the purposes of 9 48 determining the tentative maximum property tax dollars 9 49 for general county services and rural county services 9 50 under section 331.423, subsection 3, shall be the same 10 1 as the annual price index certified for the fiscal 10 2 year beginning July 1, 2001, as applied in section 10 3 331.423A, subsection 3. 10 4 b. "Boundary adjustment" means annexation, 10 5 severance, incorporation, or discontinuance as those 10 6 terms are defined in section 368.1. 10 7 c. "Budget year" is the fiscal year beginning 10 8 during the calendar year in which a budget is first 10 9 certified. 10 10 d. "Current fiscal year" is the fiscal year ending 10 11 during the calendar year in which a budget is first 10 12 certified. 10 13 e. "Local sales and services taxes" means local 10 14 sales and services taxes imposed under the authority 10 15 of chapter 422B. 10 16 f. "Net new valuation taxes" means the amount of 10 17 property tax dollars equal to the tentative maximum 10 18 general rate for purposes of the general fund, or the 10 19 tentative maximum rural rate for purposes of the rural 10 20 services fund, times the increase from the previous 10 21 fiscal year in taxable valuation due to the following: 10 22 (1) Net new construction excluding all incremental 10 23 valuation that is released in any one year from an 10 24 urban renewal area for which taxes are being divided 10 25 under section 403.19 if the property remains part of 10 26 the urban renewal area. 10 27 (2) Additions or improvements to existing 10 28 structures. 10 29 (3) Remodeling of existing structures for which a 10 30 building permit is required. 10 31 (4) Net boundary adjustment. 10 32 (5) A municipality no longer dividing tax revenues 10 33 in an urban renewal area as provided in section 10 34 403.19, to the extent that the incremental valuation 10 35 released is due to new construction or revaluation on 10 36 property newly constructed after the division of 10 37 revenue begins. 10 38 (6) That portion of taxable property located in an 10 39 urban revitalization area on which an exemption was 10 40 allowed and such exemption has expired. 10 41 g. "Property tax replacement dollars" means 10 42 revenues received under sections 427B.17 through 10 43 427B.19D, revenues received under chapter 437A, 10 44 subchapter II, revenues received under section 99F.11 10 45 that are specifically designated for property tax 10 46 relief in the current fiscal year, and amounts 10 47 appropriated by the general assembly for property tax 10 48 relief first enacted for fiscal years beginning on or 10 49 after July 1, 2001. 10 50 h. "Tentative maximum general rate" means the 11 1 amount calculated in subsection 3, paragraph "b", 11 2 subparagraph (1), divided by the net taxable valuation 11 3 in the county. For purposes of this paragraph, "net 11 4 taxable valuation" is the amount of taxable valuation 11 5 in the county minus the amount of taxable valuation 11 6 used to calculate net new valuation taxes. 11 7 i. "Tentative maximum rural rate" means the amount 11 8 calculated in subsection 3, paragraph "c", 11 9 subparagraph (1), divided by the net taxable valuation 11 10 in the unincorporated area of the county. For 11 11 purposes of this paragraph, "net taxable valuation" is 11 12 the amount of taxable valuation in the unincorporated 11 13 area of the county minus the amount of taxable 11 14 valuation in the unincorporated area of the county 11 15 used to calculate net new valuation taxes. 11 16 j. "Unused taxing authority" means the maximum 11 17 amount of property tax dollars calculated under 11 18 subsection 3 for a fiscal year minus the amount 11 19 actually levied under this section in that fiscal 11 20 year. Unused taxing authority may be carried forward 11 21 to the following fiscal year. However, the amount of 11 22 unused taxing authority which may be carried forward 11 23 shall not exceed twenty-five percent of the maximum 11 24 amount of property tax dollars available in the 11 25 current fiscal year. 11 26 3. a. Effective for and after the fiscal year 11 27 beginning July 1, 2002, the maximum amount of property 11 28 tax dollars levied which may be certified by a county 11 29 for general county services and rural county services 11 30 shall be the tentative maximum property tax dollars 11 31 calculated under paragraphs "b" and "c", respectively, 11 32 and adjusted by the amounts in paragraphs "d", "e", 11 33 and "f". 11 34 b. The tentative maximum property tax dollars for 11 35 general county services is an amount equal to the sum 11 36 of the following: 11 37 (1) The current fiscal year's tentative maximum 11 38 property tax dollars for general county services minus 11 39 the unused taxing authority carried forward from the 11 40 previous fiscal year times the annual price index. 11 41 (2) The amount of net new valuation taxes. 11 42 (3) The amount of unused taxing authority carried 11 43 forward from the previous fiscal year. 11 44 c. The tentative maximum property tax dollars for 11 45 rural county services is an amount equal to the sum of 11 46 the following: 11 47 (1) The current fiscal year's tentative maximum 11 48 property tax dollars for rural county services minus 11 49 the unused taxing authority carried forward from the 11 50 previous fiscal year times the annual price index. 12 1 (2) The amount of net new valuation taxes. 12 2 (3) The amount of unused taxing authority carried 12 3 forward from the previous fiscal year. 12 4 d. Subtract the amount of property tax replacement 12 5 dollars to be received for the budget year that will 12 6 be deposited in the general fund or the rural services 12 7 fund, as applicable. 12 8 e. Subtract the amount of local sales and services 12 9 taxes for property tax relief estimated by the 12 10 department of revenue and finance to be received for 12 11 the budget year that will be deposited in the general 12 12 fund or the rural services fund, as applicable. 12 13 f. Subtract the amount of local sales and services 12 14 taxes received for property tax relief in the previous 12 15 fiscal year for the county general fund and rural 12 16 services fund, and add the amount of local sales and 12 17 services taxes that was budgeted for property tax 12 18 relief for each of those funds in that fiscal year. 12 19 4. Property taxes certified for deposit in the 12 20 mental health, mental retardation, and developmental 12 21 disabilities services fund in section 331.424A, the 12 22 emergency services fund in section 331.424C, the debt 12 23 service fund in section 331.430, the cemetery fund in 12 24 section 331.440H, the county supplemental fund in 12 25 section 331.440I, and any capital projects fund 12 26 established by the county for deposit of bond, loan, 12 27 or note proceeds, and any temporary increase approved 12 28 pursuant to section 331.440G, are not counted against 12 29 the maximum amount of property tax dollars that may be 12 30 certified for the fiscal year under subsection 3. 12 31 5. The department of management shall adopt rules 12 32 to administer this section and sections 331.423A and 12 33 331.423B after consultation with the county finance 12 34 committee. 12 35 Sec. 15. NEW SECTION. 331.440E BASE YEAR 12 36 PROPERTY TAX DOLLARS. 12 37 1. For purposes of calculating maximum property 12 38 tax dollars under section 331.423, the tentative 12 39 maximum property tax dollars for the fiscal year 12 40 beginning July 1, 2000, for general county services 12 41 shall be calculated as provided in this subsection. 12 42 For purposes of the base year calculation, the amount 12 43 of property taxes levied for general county services 12 44 shall include the amounts levied for each fiscal year 12 45 for general county services pursuant to sections 12 46 331.423, 331.424, and 331.426, Code 2001. However, 12 47 the amount levied for the purposes described in 12 48 section 331.425 shall not be included if it was levied 12 49 for under section 331.424, Code 2001. For purposes of 12 50 the base year calculation, the amount of property 13 1 taxes levied for rural county services shall include 13 2 the amounts levied for each fiscal year for rural 13 3 county services pursuant to sections 331.423, 331.424, 13 4 and 331.426, Code 2001. However, the amount levied 13 5 for the purposes described in section 331.425 shall 13 6 not be included if it was levied for under section 13 7 331.424, Code 2001. For purposes of the base year 13 8 calculation, amounts certified and levied in each 13 9 fiscal year pursuant to sections 331.424A, 331.424B, 13 10 331.424C, and 331.430, and for any capital projects 13 11 fund, shall not be included. 13 12 a. The tentative maximum amount of property tax 13 13 dollars for general county services for taxes payable 13 14 in the fiscal year beginning July 1, 2000, shall be an 13 15 amount equal to the sum of the following, divided by 13 16 three, and adjusted by the amount in paragraph "b": 13 17 (1) The sum of the amount of property taxes levied 13 18 for general county services and the amount of property 13 19 tax replacement dollars received, the amount of 13 20 revenues received under section 99F.11 that were 13 21 specifically designated for property tax relief, and 13 22 the amount of local sales and services tax revenues 13 23 received as property tax relief and deposited in the 13 24 general fund, all for the fiscal year beginning July 13 25 1, 1997, times one and one hundred ten thousandths. 13 26 (2) The sum of the amount of property taxes levied 13 27 for general county services and the amount of property 13 28 tax replacement dollars received, the amount of 13 29 revenues received under section 99F.11 that were 13 30 specifically designated for property tax relief, and 13 31 the amount of local sales and services tax revenues 13 32 received as property tax relief and deposited in the 13 33 general fund, all for the fiscal year beginning July 13 34 1, 1998, times one and eighty-nine thousandths. 13 35 (3) The sum of the amount of property taxes levied 13 36 for general county services and the amount of property 13 37 tax replacement dollars received, the amount of 13 38 revenues received under section 99F.11 that were 13 39 specifically designated for property tax relief, and 13 40 the amount of local sales and services tax revenues 13 41 received as property tax relief and deposited in the 13 42 general fund, all for the fiscal year beginning July 13 43 1, 1999, times one and sixty-seven thousandths. 13 44 b. The amount computed under the formula in 13 45 paragraph "a" shall be adjusted by subtracting the 13 46 amount of the ending fund balance differential for 13 47 general county services as provided in this paragraph. 13 48 The ending fund balance differential for general 13 49 county services is the difference between the general 13 50 fund's ending balance for the fiscal year beginning 14 1 July 1, 1999, and the general fund's ending balance 14 2 for the fiscal year beginning July 1, 1996, divided by 14 3 three. However, for purposes of this paragraph, the 14 4 ending fund balance for the fiscal year beginning July 14 5 1, 1996, and the fiscal year beginning July 1, 1999, 14 6 shall not include general obligation bond proceeds 14 7 deposited in the general fund and shall not include 14 8 revenues received under section 99F.11 deposited in 14 9 the general fund. 14 10 2. For purposes of calculating maximum property 14 11 tax dollars under section 331.423, the tentative 14 12 maximum property tax dollars for the fiscal year 14 13 beginning July 1, 2000, for rural county services 14 14 shall be calculated as provided in this subsection. 14 15 a. The tentative maximum amount of property tax 14 16 dollars for rural county services for taxes payable in 14 17 the fiscal year beginning July 1, 2000, shall be an 14 18 amount equal to the sum of the following, divided by 14 19 three, and adjusted by the amount in paragraph "b": 14 20 (1) The sum of the amount of property taxes levied 14 21 for rural county services and the amount of property 14 22 tax replacement dollars received, the amount of 14 23 revenues received under section 99F.11 that were 14 24 specifically designated for property tax relief, and 14 25 the amount of local sales and services tax revenues 14 26 received as property tax relief and deposited in the 14 27 rural services fund, all for the fiscal year beginning 14 28 July 1, 1997, times one and one hundred ten 14 29 thousandths. 14 30 (2) The sum of the amount of property taxes levied 14 31 for rural county services and the amount of property 14 32 tax replacement dollars received, the amount of 14 33 revenues received under section 99F.11 that were 14 34 specifically designated for property tax relief, and 14 35 the amount of local sales and services tax revenues 14 36 received as property tax relief and deposited in the 14 37 rural services fund, all for the fiscal year beginning 14 38 July 1, 1998, times one and eighty-nine thousandths. 14 39 (3) The sum of the amount of property taxes levied 14 40 for rural county services and the amount of property 14 41 tax replacement dollars received, the amount of 14 42 revenues received under section 99F.11 that were 14 43 specifically designated for property tax relief, and 14 44 the amount of local sales and services tax revenues 14 45 received as property tax relief and deposited in the 14 46 rural services fund, all for the fiscal year beginning 14 47 July 1, 1999, times one and sixty-seven thousandths. 14 48 b. The amount computed under the formula in 14 49 paragraph "a" shall be adjusted by subtracting the 14 50 amount of the ending fund balance differential for 15 1 rural county services as provided in this paragraph. 15 2 The ending fund balance differential for rural county 15 3 services is the difference between the rural services 15 4 fund's ending balance for the fiscal year beginning 15 5 July 1, 1999, and the rural services fund's ending 15 6 balance for the fiscal year beginning July 1, 1996, 15 7 divided by three. However, for purposes of this 15 8 paragraph, the ending fund balance for the fiscal year 15 9 beginning July 1, 1996, and for the fiscal year 15 10 beginning July 1, 1999, shall not include revenues 15 11 received under section 99F.11 deposited in the general 15 12 fund. 15 13 3. A county may choose to calculate its base year 15 14 under subsections 1 and 2 using the fiscal years 15 15 beginning July 1, 1998, July 1, 1999, and July 1, 15 16 2000, in lieu of the fiscal years cited in subsections 15 17 1 and 2 and applying the following annual price 15 18 indices, respectively: one and sixty-nine 15 19 thousandths, one and forty-eight thousandths, and one 15 20 and thirty thousandths. 15 21 4. a. The tentative maximum amount of property 15 22 tax dollars for general county services for taxes 15 23 payable in the fiscal year beginning July 1, 2001, is 15 24 an amount equal to the amount computed in subsection 1 15 25 times the annual price index plus the amount of net 15 26 new valuation taxes. 15 27 b. The tentative maximum amount of property tax 15 28 dollars for rural county services for taxes payable in 15 29 the fiscal year beginning July 1, 2001, is an amount 15 30 equal to the amount computed in subsection 2 times the 15 31 annual price index plus the amount of net new 15 32 valuation taxes. 15 33 5. Each county shall calculate its tentative 15 34 maximum property tax dollars under this section on 15 35 forms prescribed by the department of management. 15 36 Sec. 16. NEW SECTION. 331.440F ENDING FUND 15 37 BALANCE. 15 38 Effective for a fiscal year beginning on or after 15 39 July 1, 2005, actual ending fund balances shall not 15 40 exceed twenty-five percent of actual expenditures in 15 41 the previous fiscal year for either the general fund 15 42 or the rural services fund. Actual ending fund 15 43 balances for a fiscal year in excess of twenty-five 15 44 percent of actual expenditures in the previous fiscal 15 45 year shall be reserved or designated for a specific 15 46 purpose and specifically described in the certified 15 47 budget. The excess actual balance for that specific 15 48 purpose shall be considered an increase in an item in 15 49 the budget for the following fiscal year for purposes 15 50 of section 24.28. 16 1 Counties shall reach the twenty-five percent fund 16 2 balance limitation by the fiscal year ending June 30, 16 3 2005, and shall maintain the balance at this level or 16 4 at a lower level as recorded in the annual financial 16 5 report. A county shall not exceed a balance greater 16 6 than five percent above the twenty-five percent fund 16 7 balance limitation. If a county exceeds the 16 8 limitation, in the second budget year following the 16 9 fiscal year that shows a fund balance exceeding the 16 10 limitation, the county shall implement a levy 16 11 reduction formula to offset the excess fund balance. 16 12 Up to ten percent of an amount reserved or 16 13 designated for a specific purpose may be used for a 16 14 purpose other than that described in the certified 16 15 budget. Such change in use shall be treated as an 16 16 amendment to the budget subject to section 331.435. 16 17 The board of supervisors may change the specific 16 18 purpose for which all or a portion of funds in excess 16 19 of ten percent are reserved or designated if the 16 20 proposition to change the specific purpose has been 16 21 submitted at a special election and received a 16 22 favorable majority of the votes cast on the 16 23 proposition. The special election shall be held in 16 24 the manner provided in section 331.425, except that if 16 25 the change in purpose is to the general services fund 16 26 ending balance, registered voters in the county may 16 27 vote on the proposition and if the change in purpose 16 28 is the rural services fund ending balance, registered 16 29 voters residing outside the corporate limits of a city 16 30 within the county may vote on the proposition. 16 31 Sec. 17. NEW SECTION. 331.440G AUTHORITY TO LEVY 16 32 BEYOND MAXIMUM PROPERTY TAX DOLLARS. 16 33 1. The board may certify additions to the maximum 16 34 amount of property tax dollars to be levied for a 16 35 period of time not to exceed two years if the 16 36 proposition has been submitted at a special election 16 37 and received a favorable majority of the votes cast on 16 38 the proposition. 16 39 2. The special election is subject to the 16 40 following: 16 41 a. The board must give at least thirty-two days' 16 42 notice to the county commissioner of elections that 16 43 the special election is to be held. 16 44 b. The special election shall be conducted by the 16 45 county commissioner of elections in accordance with 16 46 law. 16 47 c. The proposition to be submitted shall be 16 48 substantially in the following form: 16 49 "Vote "yes" or "no" on the following: 16 50 Shall the county of _______ levy for an additional 17 1 $_______ each year for ___ years beginning July 1, 17 2 _____, in excess of the statutory limits otherwise 17 3 applicable for the (general county services or rural 17 4 services) fund?" 17 5 d. The canvass shall be held beginning at one p.m. 17 6 on the second day which is not a holiday following the 17 7 special election. 17 8 e. Notice of the special election shall be 17 9 published at least once in a newspaper as specified in 17 10 section 331.305 prior to the date of the special 17 11 election. The notice shall appear as early as 17 12 practicable after the board has voted to seek 17 13 additional property tax dollars. 17 14 3. Registered voters in the county may vote on the 17 15 proposition to increase property taxes for the general 17 16 fund in excess of the statutory limit. Registered 17 17 voters residing outside the corporate limits of a city 17 18 within the county may vote on the proposition to 17 19 increase property taxes for the rural services fund in 17 20 excess of the statutory limit. 17 21 4. The amount of additional property tax dollars 17 22 certified under this subsection shall not be included 17 23 in the computation of the maximum amount of property 17 24 tax dollars which may be certified and levied under 17 25 section 331.423. 17 26 Sec. 18. NEW SECTION. 331.440H CEMETERY LEVY AND 17 27 FUND. 17 28 The board may levy annually a tax not to exceed six 17 29 and three-fourths cents per thousand dollars of the 17 30 assessed value of all taxable property in the county 17 31 to repair and maintain all cemeteries under the 17 32 jurisdiction of the board including pioneer cemeteries 17 33 and to pay other expenses of the board or the cemetery 17 34 commission as provided in section 331.325. The 17 35 proceeds of the tax levy shall be credited to the 17 36 cemetery fund. 17 37 Sec. 19. NEW SECTION. 331.440I COUNTY 17 38 SUPPLEMENTAL FUND. 17 39 1. The county supplemental fund is established for 17 40 the following purposes and taxes may be certified and 17 41 levied for such fund in the amount necessary to meet 17 42 its obligations: 17 43 a. Accounting for pension and related employee 17 44 benefits as provided by the county finance committee. 17 45 b. Accounting for tort liability insurance, 17 46 property insurance, and any other insurance that may 17 47 be necessary in the operation of the county, costs of 17 48 a self-insurance program, costs of a local government 17 49 risk pool, and amounts payable under any insurance 17 50 agreements to provide or procure such insurance, self- 18 1 insurance program, or local government risk pool. 18 2 c. Accounting for gifts or grants received by the 18 3 county for a particular purpose. 18 4 d. Accounting for money and property received and 18 5 handled by the county as trustee or custodian or in 18 6 the capacity of an agent. 18 7 2. County revenues from taxes and other sources 18 8 for the purposes described in this section shall be 18 9 credited to the county supplemental fund. 18 10 Sec. 20. NEW SECTION. 331.440J UNFUNDED MANDATES 18 11 FUND. 18 12 A county may establish an unfunded mandates fund 18 13 and may certify taxes not to exceed twenty-seven cents 18 14 per thousand dollars of taxable value each year to be 18 15 levied for the fund. A county may levy for the fund 18 16 only to pay for an unfunded state mandate as described 18 17 in section 25B.5A and identified by the general 18 18 assembly in the enactment of the unfunded state 18 19 mandate. 18 20 The amount of property taxes levied under this 18 21 section shall not be included in the computation of 18 22 the maximum amount of property tax dollars which may 18 23 be certified and levied under section 331.440D. 18 24 DIVISION IIA 18 25 BUDGETING AND ACCOUNTING – PILOT PROJECT 18 26 Sec. 21. NEW SECTION. 384.22A PILOT PROJECT. 18 27 For the fiscal year beginning July 1, 2002, through 18 28 the fiscal year ending June 30, 2004, a city may 18 29 participate in a pilot project under this division. 18 30 To participate, a city council must adopt a resolution 18 31 in favor of participation in the pilot project and 18 32 must forward the resolution to the Iowa league of 18 33 cities and the commission on state and local taxation 18 34 by September 1, 2001. The commission may select 18 35 participating cities based on population, property 18 36 valuations, and other factors deemed appropriate by 18 37 the commission. No more than a total of ten counties 18 38 and cities may participate in a pilot project under 18 39 this division or under chapter 331, division IV, part 18 40 2A. 18 41 On or before January 1, 2005, the commission shall 18 42 report on the pilot project to the general assembly. 18 43 The report shall include such data and information 18 44 necessary to allow the general assembly to evaluate 18 45 the pilot project. 18 46 Section 384.1 and section 384.12, subsection 20, do 18 47 not apply to this division. References in the Code of 18 48 Iowa to section 384.1 and section 384.12, subsection 18 49 20, do not apply to cities participating in a pilot 18 50 project under this division. 19 1 Sec. 22. NEW SECTION. 384.22B PROPERTY TAX 19 2 DOLLARS – MAXIMUMS. 19 3 1. A city shall certify taxes to be levied by the 19 4 city on all taxable property within the city limits, 19 5 for all city government purposes. Annually, the city 19 6 council may certify basic levies for city government 19 7 purposes, subject to the limitation on property tax 19 8 dollars provided in this section. 19 9 2. For purposes of this section: 19 10 a. "Annual price index" means the change, computed 19 11 to four decimal places, between the preliminary price 19 12 index for the third quarter of the calendar year 19 13 preceding the calendar year in which the fiscal year 19 14 starts and the revised price index for the third 19 15 quarter of the previous calendar year as published in 19 16 the same issue in which such preliminary price index 19 17 is first published. The price index used shall be the 19 18 state and local government chain-type price index used 19 19 in the quantity and price indexes for gross domestic 19 20 product as published by the United States department 19 21 of commerce. The annual price index shall not be less 19 22 than zero and shall not exceed four hundredths. The 19 23 change shall then be added to one to create a 19 24 multiplier for the annual price index. 19 25 b. "Boundary adjustment" means annexation, 19 26 severance, incorporation, or discontinuance as those 19 27 terms are defined in section 368.1. 19 28 c. "Budget year" is the fiscal year beginning 19 29 during the calendar year in which a budget is 19 30 certified. 19 31 d. "Current fiscal year" is the fiscal year ending 19 32 during the calendar year in which a budget is 19 33 certified. 19 34 e. "Local sales and services taxes" means local 19 35 sales and services taxes imposed under the authority 19 36 of chapter 422B. 19 37 f. "Net new valuation taxes" means the amount of 19 38 property tax dollars equal to the tentative maximum 19 39 general rate for city government purposes times the 19 40 increase from the previous year in taxable valuation 19 41 due to the following: 19 42 (1) Net new construction. 19 43 (2) Additions or improvements to existing 19 44 structures. 19 45 (3) Remodeling of existing structures for which a 19 46 building permit is required. 19 47 (4) Net boundary adjustment. 19 48 (5) A municipality no longer dividing tax revenues 19 49 in an urban renewal area as provided in section 19 50 403.19, to the extent that the incremental valuation 20 1 released is due to new construction or revaluation on 20 2 property newly constructed after the division of 20 3 revenue begins. 20 4 (6) That portion of taxable property located in an 20 5 urban revitalization area on which an exemption was 20 6 allowed and such exemption has expired. 20 7 g. "Property tax replacement dollars" means 20 8 revenues received under sections 427B.17 through 20 9 427B.19D, revenues received under chapter 437A, 20 10 subchapter II, revenues received under section 99F.11 20 11 that are specifically designated for property tax 20 12 relief in the current fiscal year, and amounts 20 13 appropriated by the general assembly for property tax 20 14 relief first enacted for fiscal years beginning on or 20 15 after July 1, 2001. 20 16 h. "Tentative maximum general rate" means the 20 17 amount calculated in subsection 3, paragraph "b", 20 18 subparagraph (1), divided by the net taxable valuation 20 19 in the city. For purposes of this paragraph, "net 20 20 taxable valuation" is the amount of taxable valuation 20 21 in the city minus the amount of taxable valuation in 20 22 the city used to calculate net new valuation taxes. 20 23 i. "Unused taxing authority" means the maximum 20 24 amount of property tax dollars calculated under 20 25 subsection 3 for a fiscal year minus the amount 20 26 actually levied under this section in that fiscal 20 27 year. Unused taxing authority may be carried forward 20 28 to the following fiscal year. However, the amount of 20 29 unused taxing authority which may be carried forward 20 30 shall not exceed twenty-five percent of the maximum 20 31 amount of property tax dollars available in the 20 32 current fiscal year. 20 33 3. a. Effective for the fiscal year beginning 20 34 July 1, 2002, the maximum amount of property tax 20 35 dollars which may be certified by a city for city 20 36 government purposes shall be the tentative maximum 20 37 property tax dollars calculated under paragraph "b", 20 38 and adjusted by the amounts in paragraphs "c", "d", 20 39 and "e". 20 40 b. The tentative maximum property tax dollars for 20 41 city government purposes is an amount equal to the sum 20 42 of the following: 20 43 (1) The current fiscal year's tentative maximum 20 44 property tax dollars for city government purposes 20 45 minus the unused taxing authority carried forward from 20 46 the previous fiscal year times the annual price index. 20 47 (2) The amount of net new valuation taxes. 20 48 (3) The amount of unused taxing authority carried 20 49 forward from the previous fiscal year. 20 50 c. Subtract the amount of property tax replacement 21 1 dollars to be received for the budget year that will 21 2 be deposited in the city general fund. 21 3 d. Subtract the amount of local sales and services 21 4 taxes for property tax relief estimated by the 21 5 department of revenue and finance to be received for 21 6 the budget year that will be deposited in the city 21 7 general fund. 21 8 e. Subtract the amount of local sales and services 21 9 taxes received for property tax relief in the previous 21 10 fiscal year for the city general fund, and add the 21 11 amount of local sales and services taxes that was 21 12 budgeted for property tax relief for the city general 21 13 fund in that fiscal year. 21 14 3A. Property taxes certified for deposit in the 21 15 debt service fund in section 384.4, trust and agency 21 16 funds in section 384.6, capital improvements reserve 21 17 fund in section 384.7, the emergency fund in section 21 18 384.8, any capital projects fund established by the 21 19 city for deposit of bond, loan, or note proceeds, any 21 20 temporary increase approved pursuant to section 21 21 384.22E, property taxes collected from a voted levy in 21 22 section 384.12, and property taxes levied under 21 23 section 384.12, subsection 18, are not counted against 21 24 the maximum amount of property tax dollars that may be 21 25 certified for a fiscal year under subsection 3. 21 26 4. Notwithstanding the maximum amount of taxes a 21 27 city may certify for levy, the tax levied by a city on 21 28 tracts of land and improvements on the tracts of land 21 29 used and assessed for agricultural or horticultural 21 30 purposes shall not exceed three dollars and three- 21 31 eighths cents per thousand dollars of assessed value 21 32 in any year. Improvements located on such tracts of 21 33 land and not used for agricultural or horticultural 21 34 purposes and all residential dwellings are subject to 21 35 the same rate of tax levied by the city on all other 21 36 taxable property within the city. 21 37 5. The department of management shall adopt rules 21 38 to administer this section and section 384.22C after 21 39 consultation with the city finance committee. 21 40 Sec. 23. NEW SECTION. 384.22C BASE YEAR PROPERTY 21 41 TAX DOLLARS. 21 42 1. For purposes of calculating maximum property 21 43 tax dollars under section 384.22B, the tentative 21 44 maximum property tax dollars for the fiscal year 21 45 beginning July 1, 2000, for city government purposes 21 46 shall be calculated as provided in this subsection. 21 47 a. The tentative maximum amount of property tax 21 48 dollars for city government purposes for taxes payable 21 49 in the fiscal year beginning July 1, 2000, shall be an 21 50 amount equal to the sum of the following, divided by 22 1 three, and adjusted by the amounts in paragraph "b". 22 2 (1) The sum of the amount of property taxes levied 22 3 for city government purposes and the amount of 22 4 property tax replacement dollars received, the amount 22 5 of revenues received under section 99F.11 that were 22 6 specifically designated for property tax relief, and 22 7 the amount of local sales and services tax revenues 22 8 received as property tax relief deposited in the city 22 9 general fund all for the fiscal year beginning July 1, 22 10 1997, times one and one hundred ten thousandths. 22 11 (2) The sum of the amount of property taxes levied 22 12 for city government purposes and the amount of 22 13 property tax replacement dollars received, the amount 22 14 of revenues received under section 99F.11 that were 22 15 specifically designated for property tax relief, and 22 16 the amount of local sales and services tax revenues 22 17 received as property tax relief deposited in the city 22 18 general fund all for the fiscal year beginning July 1, 22 19 1998, times one and eighty-nine thousandths. 22 20 (3) The sum of the amount of property taxes levied 22 21 for city government purposes and the amount of 22 22 property tax replacement dollars received, the amount 22 23 of revenues received under section 99F.11 that were 22 24 specifically designated for property tax relief, and 22 25 the amount of local sales and services tax revenues 22 26 received as property tax relief deposited in the city 22 27 general fund all for the fiscal year beginning July 1, 22 28 1999, times one and sixty-seven thousandths. 22 29 b. The amount computed under the formula in 22 30 paragraph "a" shall be adjusted by subtracting the 22 31 amount of the ending fund balance differential for 22 32 city government purposes as provided in this 22 33 paragraph. The ending fund balance differential for 22 34 city government purposes is the difference between the 22 35 city general fund's ending balance for the fiscal year 22 36 beginning July 1, 1999, and the city general fund's 22 37 ending balance for the fiscal year beginning July 1, 22 38 1996, divided by three. However, for purposes of this 22 39 paragraph, the ending fund balance for the fiscal year 22 40 beginning July 1, 1996, and the fiscal year beginning 22 41 July 1, 1999, shall not include general obligation 22 42 bond proceeds deposited in the general fund and shall 22 43 not include revenues received under section 99F.11 22 44 deposited in the general fund. 22 45 2. A city may choose to calculate its base year 22 46 under subsection 1 using the fiscal years beginning 22 47 July 1, 1998, July 1, 1999, and July 1, 2000, in lieu 22 48 of the fiscal years cited in subsection 1 and applying 22 49 the following annual price indices, respectively: one 22 50 and sixty-nine thousandths, one and forty-eight 23 1 thousandths, and one and thirty thousandths. 23 2 3. The tentative maximum amount of property tax 23 3 dollars for city government purposes for the fiscal 23 4 year beginning July 1, 2001, is an amount equal to the 23 5 amount computed in subsection 1 times the annual price 23 6 index plus the amount of net new valuation taxes. 23 7 4. Each city shall calculate its base year 23 8 tentative maximum property tax dollars and its maximum 23 9 property tax dollars under this section on forms 23 10 prescribed by the department of management. 23 11 Sec. 24. NEW SECTION. 384.22D ENDING FUND 23 12 BALANCE. 23 13 Effective for a fiscal year beginning on or after 23 14 July 1, 2005, actual ending fund balances shall not 23 15 exceed twenty-five percent of actual expenditures in 23 16 the previous fiscal year for either the general fund 23 17 or the rural services fund. Actual ending fund 23 18 balances for a fiscal year in excess of twenty-five 23 19 percent of actual expenditures in the previous fiscal 23 20 year shall be reserved or designated for a specific 23 21 purpose and specifically described in the certified 23 22 budget. The excess actual balance for that specific 23 23 purpose shall be considered an increase in an item in 23 24 the budget for the following fiscal year for purposes 23 25 of section 24.28. 23 26 Cities shall reach the twenty-five percent fund 23 27 balance limitation by the fiscal year ending June 30, 23 28 2005, and shall maintain the balance at this level or 23 29 at a lower level as recorded in the annual financial 23 30 report. A city shall not exceed a balance greater 23 31 than five percent above the twenty-five percent fund 23 32 balance limitation. If a city exceeds the limitation, 23 33 in the second budget year following the fiscal year 23 34 that shows a fund balance exceeding the limitation, 23 35 the city shall implement a levy reduction formula to 23 36 offset the excess fund balance. 23 37 Up to ten percent of an amount reserved or 23 38 designated for a specific purpose may be used for a 23 39 purpose other than that described in the certified 23 40 budget. Such change in use shall be treated as an 23 41 amendment to the budget subject to section 384.18. 23 42 The board of supervisors may change the specific 23 43 purpose for which all or a portion of funds in excess 23 44 of ten percent are reserved or designated if the 23 45 proposition to change the specific purpose has been 23 46 submitted at a special election and received a 23 47 favorable majority of the votes cast on the 23 48 proposition. The special election shall be held in 23 49 the manner provided in section 384.12, subsection 20. 23 50 Sec. 25. NEW SECTION. 384.22E AUTHORITY TO LEVY 24 1 BEYOND MAXIMUM PROPERTY TAX DOLLARS. 24 2 1. The city council may certify additions to the 24 3 maximum amount of property tax dollars to be levied 24 4 for a period of time not to exceed two years if the 24 5 proposition has been submitted at a special election 24 6 and received a favorable majority of the votes cast on 24 7 the proposition. 24 8 2. The special election is subject to the 24 9 following: 24 10 a. The city council must give at least thirty-two 24 11 days' notice to the county commissioner of elections 24 12 that the special election is to be held. 24 13 b. The special election shall be conducted by the 24 14 county commissioner of elections in accordance with 24 15 law. 24 16 c. The proposition to be submitted shall be 24 17 substantially in the following form: 24 18 "Vote "yes" or "no" on the following: 24 19 Shall the city of _______ levy for an additional 24 20 $_______ each year for ___ years beginning next July 24 21 1, ____, in excess of the statutory limits otherwise 24 22 applicable for the city general fund?" 24 23 d. The canvass shall be held beginning at one p.m. 24 24 on the second day which is not a holiday following the 24 25 special election. 24 26 e. Notice of the special election shall be 24 27 published at least once in a newspaper as specified in 24 28 section 362.3 prior to the date of the special 24 29 election. The notice shall appear as early as 24 30 practicable after the city council has voted to seek 24 31 additional property tax dollars. 24 32 3. The amount of additional property tax dollars 24 33 levied under subsection 2 shall not be included in the 24 34 computation of the maximum amount of property tax 24 35 dollars which may be certified and levied under 24 36 section 384.1. 24 37 Sec. 26. Section 425A.2, subsection 4, paragraph 24 38 d, Code 2001, is amended to read as follows: 24 39 d. If the owner is an authorized farm corporation, 24 40 a shareholder or the shareholder's spouse who owns at 24 41 leastfifty-onefifty percent of the stock of the 24 42 authorized farm corporationor the shareholder's24 43spouse. 24 44 Sec. 27. Section 425A.2, subsection 4, paragraph 24 45 e, Code 2001, is amended to read as follows: 24 46 e. If the owner is an individual who leases the 24 47 tract to a family farm corporation, a shareholder of 24 48 the corporation if the combined stock of the family 24 49 farm corporation owned by the owner of the tract and 24 50 persons related to the owner as enumerated in 25 1 paragraph "a" is equal to at leastfifty-onefifty 25 2 percent of the stock of the family farm corporation. 25 3 Sec. 28. Section 425A.2, subsection 4, paragraph 25 4 f, Code 2001, is amended to read as follows: 25 5 f. If the owner is an individual who leases the 25 6 tract to a partnership, a partner if the combined 25 7 partnership interest owned by a designated person as 25 8 defined in paragraph "a" is equal to at leastfifty-25 9onefifty percent of the ownership interest of the 25 10 partnership. 25 11 Sec. 29. Section 427.1, subsection 19, Code 2001, 25 12 is amended by adding the following new unnumbered 25 13 paragraph after unnumbered paragraph 8: 25 14 NEW UNNUMBERED PARAGRAPH. Pollution-control 25 15 property used for purposes relating to the care and 25 16 feeding of livestock as defined in section 169C.1 25 17 shall be limited to the first two hundred thousand 25 18 dollars in assessed value, unless an owner of the 25 19 pollution-control property is any of the following: 25 20 a. The owner of agricultural land which is 25 21 eligible for the family farm property tax credit as 25 22 provided in chapter 425A. 25 23 b. Actively engaged in farming as defined in 25 24 section 10.1. 25 25 c. A networking farmers entity as defined in 25 26 section 10.1 or a member of a networking farmers 25 27 entity. 25 28 Sec. 30. APPLICABILITY DATES. Sections 26 through 25 29 28 of this Act apply to credits applied for on or 25 30 after July 1, 2001. Section 29 of this Act applies to 25 31 exemptions first applied for on or after July 1, 2001. 25 32 The remainder of this Act applies to the fiscal year 25 33 beginning July 1, 2002, and all subsequent fiscal 25 34 years."" 25 35 #2. Title page, line 1, by inserting after the 25 36 word "for" the following: "certain cities and". 25 37 25 38 25 39 25 40 HOUSER of Pottawattamie 25 41 25 42 25 43 25 44 VAN ENGELENHOVEN of Mahaska 25 45 SF 514.317 79 25 46 sc/cf
Text: H01896 Text: H01898 Text: H01800 - H01899 Text: H Index Bills and Amendments: General Index Bill History: General Index
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