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PAG LIN 1 1 Section 1. Section 75.1, Code 2001, is amended to read as 1 2 follows: 1 3 75.1 BONDS – ELECTION – VOTE REQUIRED. 1 4 1. When a proposition to authorize an issuance of bonds by 1 5 a county, township, school corporation, city, or by any local 1 6 board or commission, is submitted to the electors,suchthe 1 7 propositionshall not be deemed carried or adopted, anything1 8in the statutes to the contrary notwithstanding, unlessis 1 9 adopted if the vote in favor ofsuch authorizationthe 1 10 proposition is equal to at least sixty percent of the total 1 11 vote cast for and againstsaidthe proposition atsaidthe 1 12 election. 1 13 2. Principal and interest on bonds issued by a county, 1 14 school corporation, or city may be paid in part with revenue 1 15 from a local income surtax imposed under section 76.19. If 1 16 the bonds are to be paid in part with revenue from a local 1 17 income surtax, the proposition shall so state and the 1 18 proposition is adopted if the vote in favor of the proposition 1 19 is equal to at least a majority of the total vote cast for and 1 20 against the proposition at the election. However, a bond 1 21 issuance proposition proposing imposition of an income surtax 1 22 shall not be presented to the electors if in the first year 1 23 the income surtax is imposed the total of all income surtaxes 1 24 authorized by law and imposed in that year on any taxpayer in 1 25 the political subdivision imposing the surtax would exceed 1 26 twenty percent. Upon request of the governing authority, the 1 27 department of management shall certify the cumulative rate of 1 28 income surtax being imposed in the political subdivision. 1 29 3. All ballots cast and not counted as a vote for or 1 30 against the proposition shall not be used in computing the 1 31 total vote cast for and againstsaidthe proposition. 1 32 4. When a proposition to authorize an issuance of bonds 1 33 has been submitted to the electors under this section and the 1 34 proposal fails to gain approval by the required percentage of 1 35 votes, such proposal, or any proposal which incorporates any 2 1 portion of the defeated proposal, shall not be submitted to 2 2 the electors for a period of six months from the date of such 2 3 regular or special election. 2 4 Sec. 2. Section 76.1, Code 2001, is amended to read as 2 5 follows: 2 6 76.1 MANDATORY RETIREMENT. 2 7Hereafter issuesIssues of bondsof every kind and2 8characterby counties, cities, and school corporations shall 2 9 be consecutively numbered. The annual levy of property tax, 2 10 or combination of property tax levy and income surtax imposed 2 11 as provided in section 76.19, shall be sufficient to pay the 2 12 interest and approximatelysuchthat portion of the principal 2 13 of the bonds as will retire them in a period not exceeding 2 14twentytwenty-two years from date of issue. Each issue of 2 15 bonds shall be scheduled to mature serially in the same order 2 16 as numbered. 2 17 Sec. 3. Section 76.2, Code 2001, is amended to read as 2 18 follows: 2 19 76.2 MANDATORY LEVY – OBLIGATIONS IN ANTICIPATION OF 2 20 LEVY. 2 21 The governing authority of these political subdivisions 2 22 before issuing bonds shall, by resolution, provide for the 2 23 assessment of an annual levy upon all the taxable property in 2 24 the political subdivision, or the assessment of an annual 2 25 property tax levy and imposition of a local income surtax 2 26 under section 76.19, sufficient to pay theinterest and2 27 principal and interest of the bonds within a period named not 2 28 exceedingtwenty yearsthat provided in section 76.1. A 2 29 certified copy of this resolution shall be filed with the 2 30 county auditor or the auditors of the counties in which the 2 31 political subdivision is located; and the filing shall make it 2 32 a duty of the auditors to enter annually this levy for 2 33 collection from the taxable property within the boundaries of 2 34 the political subdivision until funds are realized to pay the 2 35 bonds in full. The property tax levy shall continue to be 3 1 made against property that is severed from the political 3 2 subdivision and the income surtax shall continue to be imposed 3 3 upon the residents of any area severed from the political 3 4 subdivision after the filing of the resolution until funds are 3 5 realized to pay the bonds in full. 3 6 Ifthea resolution which does not include imposition of an 3 7 income surtax is filed prior to April 1, or May 1,if the 3 8 political subdivision is a school district, the annual levy 3 9 shall begin with the tax levy for collection commencing July 1 3 10 of that year. If the resolution is filed after April 1, or 3 11 May 1,in the case of a school district, or if the resolution 3 12 includes imposition of an income surtax, the annual property 3 13 tax levy shall begin with the tax levy for collection in the 3 14 next succeeding fiscal year. If the resolution includes the 3 15 imposition of a local income surtax and it is filed with the 3 16 department of revenue and finance prior to August 1, the 3 17 imposition of the surtax is retroactive to January 1 of that 3 18 calendar year. If the resolution is filed with the department 3 19 of revenue and finance on or after August 1, the imposition of 3 20 the income surtax begins on January 1 of the next calendar 3 21 year. However, the governing authority of a political 3 22 subdivision may adjust a levy of taxes made under this section 3 23 for the purpose of adjusting the annual levies and collections 3 24 and income surtax rate for property severed from the political 3 25 subdivision, subject to the approval of the director of the 3 26 department of management. 3 27 If funds, including reserves and amounts available for 3 28 temporary transfer, arefound to beinsufficient to pay in 3 29 full any installment of principal or interest, a public issuer 3 30 of bonds may anticipate the next levy of property taxes 3 31 pursuant to this section or the imposition of an income surtax 3 32 under section 76.19 in the manner provided in chapter 74, 3 33 whether the taxes so anticipated are to be collected in the 3 34 same or a future fiscal year. 3 35 To further secure the payment of the bonds, the governing 4 1 authority shall, by resolution, provide for the assessment of 4 2 an annual levy of a standby tax upon all taxable property 4 3 within the political subdivision. A copy of the resolution 4 4 shall be sent to the county auditor of each county in which 4 5 the political subdivision is located. The revenues from the 4 6 standby tax shall be deposited in a special fund and shall be 4 7 expended only for the payment of principal and interest on the 4 8 bonds issued as provided in this section, when the revenue 4 9 from an income surtax as provided in section 76.19 is 4 10 insufficient. Reserves shall not be built up in this fund in 4 11 anticipation of a projected default. The governing authority 4 12 shall adjust the annual standby property tax levy for each 4 13 year to reflect the amount of revenues in the special fund and 4 14 the amount of principal and interest which is due in that 4 15 year. 4 16 Sec. 4. Section 76.4, Code 2001, is amended to read as 4 17 follows: 4 18 76.4 PERMISSIVE APPLICATION OF FUNDS. 4 19WheneverIf the governing authority ofsucha political 4 20 subdivisionshall havehas on hand funds derived fromany4 21othera source other than taxation which may be appropriated 4 22 to the payment either ofinterest orprincipal or interest, or 4 23 both principal and interest of such bonds,suchthe funds may 4 24 besoappropriated and used and the property tax levy and 4 25 income surtax, if imposed, for the payment of the bonds 4 26 correspondingly reduced. 4 27 Sec. 5. Section 76.7, Code 2001, is amended to read as 4 28 follows: 4 29 76.7 PARTICULAR BONDS AFFECTED – PAYMENT. 4 30 Counties, cities, and school corporations may at any time 4 31or timesextend or renew any legal indebtedness or any part 4 32thereofof the indebtedness theymayhave represented by bonds 4 33 or certificates wheresuchthe indebtedness is payable from a 4 34 limited annual property tax or from a voted annual property 4 35 tax or from an annual property tax and income surtax imposed 5 1 under section 76.19, and may by resolution fund or refund the 5 2samelegal indebtedness and issue bondsthereforrunning not 5 3 more than twenty years to be known as funding or refunding 5 4 bonds, and make provision for the payment of the principal and 5 5 interestthereoffrom the proceeds of an annual property tax, 5 6 or annual property tax and income surtax, for the period 5 7 covered bysuchthe bonds similar to the tax authorized by law 5 8 or by the electors for the payment of the indebtednessso5 9 extended or renewed. 5 10 Sec. 6. NEW SECTION. 76.19 INCOME SURTAX. 5 11 1. An income surtax may be imposed by a political 5 12 subdivision as provided in this section, but only if 5 13 authorized by the electors as provided in section 75.1. 5 14 2. The income surtax shall be imposed upon state income 5 15 taxes computed under section 422.5, less credits allowed 5 16 against tax liability computed under chapter 422, division II, 5 17 and shall be imposed upon the state income tax for each 5 18 calendar year, or for a taxpayer's fiscal year beginning 5 19 during the second half of that calendar year or the first half 5 20 of the succeeding calendar year, and shall be imposed on all 5 21 taxpayers residing in the political subdivision on the last 5 22 day of the applicable tax year, and on taxpayers residing in 5 23 areas severed from the political subdivision as provided in 5 24 section 76.2. 5 25 3. The income surtax shall be imposed to collect an amount 5 26 that is equivalent to sixty percent of the sum of the 5 27 principal and interest of the bonds over the life of the 5 28 bonds. The rate of the income surtax may be adjusted in any 5 29 year for the sole purpose of ensuring that an amount 5 30 equivalent to no more than fifty percent of the principal and 5 31 interest over the life of the bonds is collected. 5 32 4. At the time of the annual levy under section 76.2, the 5 33 governing authority of the political subdivision shall also 5 34 provide in the resolution for the imposition of the income 5 35 surtax and shall certify to the department of management such 6 1 sum expressed in dollars. The department shall determine the 6 2 rate of income surtax to be imposed based upon the most recent 6 3 available figures from state income taxes paid by taxpayers 6 4 residing in the political subdivision. The department shall 6 5 continue to make such calculations and certify the income 6 6 surtax rate to the county auditor or the auditors of the 6 7 counties in which the political subdivision is located with 6 8 adjustments as provided in this section until the principal 6 9 and interest on the bonds are paid in full. On or before 6 10 November 1 of each year in which the income surtax is 6 11 collected the director of revenue and finance shall deposit 6 12 with the treasurer of the political subdivision the entire 6 13 amount of income surtax collected from taxpayers residing in 6 14 the political subdivision. 6 15 5. The costs of administration shall be determined by the 6 16 department of revenue and finance, and shall be based on a 6 17 share of the total cost of administering the department, in 6 18 the same proportion as the amount of income surtax collected 6 19 is to the amount of state income taxes collected. 6 20 6. The director of revenue and finance shall administer 6 21 the income surtax imposed under this chapter and sections 6 22 422.4, 422.20 to 422.31, 422.68, and 422.72 to 422.75 shall 6 23 apply with respect to administration of the income surtax. 6 24 Sec. 7. NEW SECTION. 76.20 INCOME TAX RETURNS. 6 25 An income surtax imposed under section 76.19 shall be made 6 26 a part of the Iowa individual income tax return subject to the 6 27 conditions and restrictions set forth in section 422.21. The 6 28 director of revenue and finance shall provide on income tax 6 29 returns a requirement that each person required to file a 6 30 return numerically identify the city of residence of the 6 31 taxpayer and the merged area in which the taxpayer resides. 6 32 Sec. 8. NEW SECTION. 76.21 DESIGNATION OF TAX. 6 33 An income surtax imposed under section 76.19 by a school 6 34 district shall be designated as a school debt service income 6 35 surtax, and income surtax imposed by a merged area shall be 7 1 designated as a merged area debt service income surtax, and 7 2 income surtax imposed under section 76.19 by a city shall be 7 3 designated a city debt service income surtax, and an income 7 4 surtax imposed under section 76.19 by a county shall be 7 5 designated a county debt service income surtax. 7 6 Sec. 9. Section 260C.21, Code 2001, is amended to read as 7 7 follows: 7 8 260C.21 ELECTION TO INCUR INDEBTEDNESS. 7 9 1. No indebtedness shall be incurred under section 260C.19 7 10 until authorized by an election. A proposition to incur 7 11 indebtedness and issue bonds for community college purposes 7 12 shall be deemedcarriedadopted in a merged area if approved 7 13 by a sixty percent majority of all voters voting on the 7 14 proposition in the area.However, ifIf the board elects to 7 15 partially fund the bonds with revenues from a local income 7 16 surtax, in addition to property tax revenues, the ballot 7 17 proposition to authorize the issuance of the bonds shall be 7 18 submitted to the electorate pursuant to section 75.1, 7 19 subsection 2. 7 20 2. Notwithstanding subsection 1, if the costs of utilities 7 21 are paid by a community college with funds derived from the 7 22 levy authorized under section 260C.22, the community college 7 23 may use the general fund moneys that would have been used to 7 24 pay the costs of utilities for capital expenditures, may 7 25 invest the funds, or may incur indebtedness without an 7 26 election, provided that the payments on the indebtedness 7 27 incurred, and any interest on the indebtedness, can be made 7 28 using general funds of the community college and the total 7 29 payments on the principal and interest on the indebtedness do 7 30 not exceed the amount of the costs of the utilities. 7 31 Sec. 10. Section 296.1, Code 2001, is amended to read as 7 32 follows: 7 33 296.1 INDEBTEDNESS AUTHORIZED. 7 34 Subject to the approval of the voters thereof, school 7 35 districts areherebyauthorized to contract indebtedness and 8 1 to issue general obligation bonds to provide funds to defray 8 2 the cost of purchasing, building, furnishing, reconstructing, 8 3 repairing, improving or remodeling a schoolhouse or 8 4 schoolhouses and additions thereto, gymnasium, stadium, field 8 5 house, school bus garage, teachers' or superintendent's home 8 6 or homes, and procuring a site or sites therefor, or 8 7 purchasing land to add to a site already owned, or procuring 8 8 and improving a site for an athletic field, or improving a 8 9 site already owned for an athletic field, and for any one or 8 10 more of such purposes. Taxes for the payment ofsaidthe 8 11 bonds shall be levied or imposed in accordance with chapter 8 12 76, andsaidthe bonds shall mature withina period not8 13exceeding twenty years from date of issuethe period provided 8 14 in section 76.1, shall bear interest at a rate or rates not 8 15 exceeding that permitted by chapter 74A, and shall be of such 8 16 form as the board of directors ofsuchthe school district 8 17 shall by resolution provide, but the aggregate indebtedness of 8 18 any school district shall not exceed five percent of the 8 19 actual value of the taxable property withinsaidthe school 8 20 district, as ascertained by the last preceding state and 8 21 county tax lists. 8 22 Sec. 11. Section 296.6, Code 2001, is amended to read as 8 23 follows: 8 24 296.6 BONDS. 8 25 If the vote in favor of the issuance of such bonds is equal 8 26 to at least sixty percent of the total vote cast for and 8 27 againstsaidthe proposition atsaidthe election, the board 8 28 of directors shall issue thesamebonds and make provision for 8 29 paymentthereofof the bonds. If the board of directors of a 8 30 school district elects to partially fund the bonds with 8 31 revenues from an income surtax, in addition to property tax 8 32 revenues, the ballot proposition to authorize the issuance of 8 33 the bonds shall be submitted to the electorate pursuant to 8 34 section 75.1, subsection 2. 8 35 Sec. 12. Section 298.14, unnumbered paragraphs 1 and 2, 9 1 Code 2001, are amended to read as follows: 9 2 For each fiscal year, the cumulative total of the percents 9 3 of surtax approved by the board of directors of a school 9 4 district and collected by the department of revenue and 9 5 finance under sections 76.19, 257.21, 257.29, and 298.2, and 9 6 the enrichment surtax under section 442.15, Code 1989, and an 9 7 income surtax collected by a political subdivision under 9 8 chapter 422D, shall not exceed twenty percent. 9 9 A school district income surtax fund is created in the 9 10 office of treasurer of state. Income surtaxes collected by 9 11 the department of revenue and finance under sections 76.19, 9 12 257.21, 257.29, and 298.2 and section 442.15, Code 1989, shall 9 13 be deposited in the school district income surtax fund to the 9 14 credit of each school district. A separate accounting of each 9 15 surtax, by school district, shall be maintained. 9 16 Sec. 13. Section 298.18, unnumbered paragraph 2, Code 9 17 2001, is amended to read as follows: 9 18 The amount estimatedand certified to apply onto pay 9 19 principal and interest for any one year shall not exceed an 9 20 amount that could be raised by a property tax levy equal to 9 21 two dollars and seventy cents per thousand dollars of the 9 22 assessed valuation of the taxable property of the school 9 23 corporation except as hereinafter provided. 9 24 Sec. 14. Section 298.18, unnumbered paragraph 4, Code 9 25 2001, is amended to read as follows: 9 26 The amount estimatedand certified to apply onto pay 9 27 principal and interest for any one year may exceed an amount 9 28 that could be raised by a property tax levy equal to two 9 29 dollars and seventy cents per thousand dollars of assessed 9 30 value by the amount approved by the voters of the school 9 31 corporation, but not exceeding four dollars and five cents per 9 32 thousand of the assessed value of the taxable property within 9 33 any school corporation, provided that thequalifiedregistered 9 34 voters of such school corporation have first approved such 9 35 increased amount at a special election, which may be held at 10 1 the same time as the regular school election. The proposition 10 2 submitted to the voters at such special election shall be in 10 3 substantially the following form: 10 4 Sec. 15. Section 298.18, unnumbered paragraph 6, Code 10 5 2001, is amended to read as follows: 10 6 Notice of the election shall be given by the county 10 7 commissioner of elections according to section 49.53. The 10 8 election shall be held on a date not less than four nor more 10 9 than twenty days after the last publication of the notice. At 10 10suchthe election, the ballot used for the submission ofsaid10 11 the proposition shall be in substantially the form for 10 12 submitting special questions at general elections. The county 10 13 commissioner of elections shall conduct the election pursuant 10 14 to the provisions of chapters 39 to 53 and certify the results 10 15 to the board of directors.SuchThe proposition shall not be 10 16 deemedcarried oradopted unless the vote in favor ofsuchthe 10 17 proposition is equal to at least sixty percent of the total 10 18 vote cast for and againstsaidthe proposition atsaidthe 10 19 election.Whenever suchIf the board of directors of a school 10 20 district elects to partially fund the bonds with revenues from 10 21 a local income surtax, in addition to property tax revenues, 10 22 the ballot proposition to authorize the issuance of the bonds 10 23 shall be submitted to the electorate pursuant to section 75.1, 10 24 subsection 2. If a proposition has been approved by the 10 25 voters of a school corporation as hereinbefore provided, no 10 26 further approval of the voters ofsuchthe school corporation 10 27 shall be required as a result of any subsequent change in the 10 28 boundaries ofsuchthe school corporation. 10 29 Sec. 16. Section 298.22, unnumbered paragraph 1, Code 10 30 2001, is amended to read as follows: 10 31All of saidThe bonds shall be substantially in the form 10 32 provided for county bonds, but subject to changes that will 10 33 conform them to the action of the boardproviding therefor; 10 34 shallrun not more than twenty yearsmature within the period 10 35 provided in section 76.1, and may be sooner paid if so 11 1 nominated in the bond; bear a rate of interest not exceeding 11 2 that permitted by chapter 74A, payable semiannually; be signed 11 3 by the president and countersigned by the secretary of the 11 4 board of directors; and shall not be disposed of for less than 11 5 par value, nor issued for other purposes than this chapter 11 6 provides. 11 7 Sec. 17. Section 331.442, subsection 4, Code 2001, is 11 8 amended to read as follows: 11 9 4. The proposition of issuing bonds for a general county 11 10 purpose is notcarried oradopted unless the vote in favor of 11 11 the proposition is equal to at least sixty percent of the 11 12 total vote cast for and against the proposition at the 11 13 election. If the board elects to partially fund the bonds 11 14 with revenues from a local income surtax, in addition to 11 15 property tax revenues, the ballot proposition to authorize the 11 16 issuance of the bonds shall be submitted to the electorate 11 17 pursuant to section 75.1, subsection 2. If the proposition of 11 18 issuing the general county purpose bonds is approved by the 11 19 voters, the board may proceed with the issuance of the bonds. 11 20 Sec. 18. Section 331.442, subsection 5, paragraph a, 11 21 unnumbered paragraph 1, Code 2001, is amended to read as 11 22 follows: 11 23 Notwithstanding subsection 2, a board, in lieu of calling 11 24 an election, may institute proceedings for the issuance of 11 25 bonds for a general county purpose by causing a notice of the 11 26 proposal to issue the bonds, the type or types of debt service 11 27 tax to be levied or imposed to pay principal and interest on 11 28 the bonds, including a statement of the amount and purpose of 11 29 the bonds,and the right to petition for an election, to be 11 30 published as provided in section 331.305 at least ten days 11 31 prior to the meeting at which it is proposed to take action 11 32 for the issuance of the bonds subject to the following 11 33 limitations: 11 34 Sec. 19. Section 331.447, subsection 1, Code 2001, is 11 35 amended to read as follows: 12 1 1. Taxes for the payment of general obligation bonds shall 12 2 be levied in accordance with chapter 76, and the bonds are 12 3 payable fromthe levy of unlimited ad valorem taxes on all the12 4taxable property within the county through its debt service12 5fund required by section 331.430a debt service property tax 12 6 or combination of a debt service property tax and debt service 12 7 local income surtax, unlimited as to amount, except that: 12 8 a. The amount estimatedand certified to apply onto pay 12 9 principal and interest for any one year shall not exceed an 12 10 amount that could be raised by a debt service property tax 12 11 levy equal to the maximum rate of tax, if any, provided by 12 12 this division for the purpose for which the bonds were issued. 12 13 If general obligation bonds are issued for different 12 14 categories, as provided in section 331.445, the maximum rate 12 15 of levies, if any, for each purpose shall apply separately to 12 16 that portion of the bond issue for that category and the 12 17 resolution authorizing the bond issue shall clearly set forth 12 18 the annual debt service requirements with respect to each 12 19 purpose in sufficient detail to indicate compliance with the 12 20 rate of tax levy, if any. 12 21 b. The amount estimatedand certified to apply onto pay 12 22 principal and interest for any one year may only exceed an 12 23 amount that could be raised by a debt service property tax 12 24 levy equal to the statutory rate of levy limit, if any, by the 12 25 amount that the registered voters of the county have approved 12 26 at a special election, which may be held at the same time as 12 27 the general election and may be included in the proposition 12 28 authorizing the issuance of bonds, if an election on the 12 29 proposition is necessary, or may be submitted as a separate 12 30 proposition at the same election or at a different election. 12 31 Notice of the election shall be given as specified in section 12 32 331.305. If the proposition includes issuing bonds and 12 33 increasing the levy limit, it shall be in substantially the 12 34 following form: 12 35 Shall the county of ........, state of Iowa, be authorized 13 1 to .......... (here state purpose of project) at a total cost 13 2 not exceeding $.... and issue its general obligation bonds in 13 3 an amount not exceeding $.... for that purpose, and be 13 4 authorized to levy annually a debt service property tax (or 13 5 debt service property tax and income surtax, if applicable), 13 6 which will produce an amount not exceeding ... dollars and ... 13 7 cents per thousand dollars of the assessed value of the 13 8 taxable property within the county to pay the principal of and 13 9 interest on the bonds? 13 10 If the proposition includes only increasing the levy limit 13 11 it shall be in substantially the following form: 13 12 Shall the county of ........, state of Iowa, be authorized 13 13 to levy annually a debt service property tax (or debt service 13 14 property tax and income surtax, if applicable), which will 13 15 produce an amount not exceeding ... dollars and ... cents per 13 16 thousand dollars of the assessed value of the taxable property 13 17 within the county to pay principal and interest on the bonded 13 18 indebtedness of the county for the purpose of ..........? 13 19 Sec. 20. Section 331.490, Code 2001, is amended to read as 13 20 follows: 13 21 331.490 CITIES SUBJECT TO DEBT SERVICE TAX LEVY – RATES. 13 22 1. If a county and city have entered into an agreement to 13 23 create a joint special assessment district and issue county 13 24 general obligation bonds to fund the costs of a public 13 25 improvement benefiting that district, the county's debt 13 26 service property tax levy for the county general obligation 13 27 bonds shall not be levied against property located in any city 13 28 except a city which has entered into the agreement, and, if 13 29 applicable, the county's debt service income surtax for the 13 30 county general obligation bonds shall not be imposed on 13 31 taxpayers who reside in any city except a city which has 13 32 entered into the agreement. 13 33 2. Counties and cities entering into an agreement for a 13 34 joint special assessment district may provide in the agreement 13 35 for a different rate of the county's debt service property tax 14 1 levy against property in areas of the county outside a city 14 2 and property within the cities, and, if applicable, for a 14 3 different rate of the county's debt service income surtax to 14 4 be imposed on taxpayers residing outside the cities and those 14 5 residing within each city. 14 6 Sec. 21. Section 384.26, subsection 2, Code 2001, is 14 7 amended to read as follows: 14 8 2. Before the council may institute proceedings for the 14 9 issuance of bonds for a general corporate purpose, it shall 14 10 call a special city election to vote upon the question of 14 11 issuing the bonds. At the election the proposition must be 14 12 submitted in substantially the following form: 14 13 Shall the ............ (insert the name of the city) issue 14 14 its bonds in an amount not exceeding the amount of $.... for 14 15 the purpose of .........., such bonds to be payable from a 14 16 property tax levied on all taxable property within the city 14 17 (and income surtax to be imposed on the state income tax of 14 18 each income taxpayer residing in the city)? 14 19 Sec. 22. Section 384.26, subsection 4, Code 2001, is 14 20 amended to read as follows: 14 21 4. The proposition of issuing general corporate purpose 14 22 bonds is notcarried oradopted unless the vote in favor of 14 23 the proposition is equal to at least sixty percent of the 14 24 total vote cast for and against the proposition at the 14 25 election. If the city council elects to partially fund the 14 26 bonds with revenues from a local income surtax, in addition to 14 27 property tax revenues, the ballot proposition to authorize the 14 28 issuance of the bonds shall be submitted to the electorate 14 29 pursuant to section 75.1, subsection 2. If the proposition of 14 30 issuing the general corporate purpose bonds is approved by the 14 31 voters, the city may proceed with the issuance of the bonds. 14 32 Sec. 23. Section 384.26, subsection 5, paragraph a, 14 33 unnumbered paragraph 1, Code 2001, is amended to read as 14 34 follows: 14 35 Notwithstanding the provisions of subsection 2, a council 15 1 may, in lieu of calling an election, institute proceedings for 15 2 the issuance of bonds for a general corporate purpose by 15 3 causing a notice of the proposal to issue the bonds, including 15 4 a statement of the amount and purpose of the bonds, the type 15 5 or types of debt service tax to be levied or imposed to pay 15 6 principal and interest of the bonds, together with the maximum 15 7 rate of interest which the bonds are to bear, and the right to 15 8 petition for an election, to be published at least once in a 15 9 newspaper of general circulation within the city at least ten 15 10 days prior to the meeting at which it is proposed to take 15 11 action for the issuance of the bonds subject to the following 15 12 limitations: 15 13 Sec. 24. Section 384.32, Code 2001, is amended to read as 15 14 follows: 15 15 384.32 TAX TO PAY. 15 16 Taxes for the payment of general obligation bonds must be 15 17 levied in accordance with chapter 76, and the bonds are 15 18 payable from the levy ofunlimited ad valorem taxes on all the15 19taxable property within the city through its debt service fund15 20authorized by section 384.4a debt service property tax or a 15 21 combination of a debt service property tax and a debt service 15 22 income surtax, unlimited as to amount. 15 23 Sec. 25. APPLICABILITY DATE. This Act applies to bond 15 24 issuances approved at elections held on or after the effective 15 25 date of this Act. 15 26 EXPLANATION 15 27 This bill authorizes general obligation bonds to be issued 15 28 by certain political subdivisions which will be partially 15 29 funded by a local income surtax imposed on individuals, in 15 30 addition to property taxes. The bill requires that 60 percent 15 31 of the principal and interest of the bonds be funded by income 15 32 surtax. The bill provides that the question of whether to 15 33 impose a local income surtax to partially fund the bonds shall 15 34 be included in the bond issuance ballot proposition. If 15 35 principal and interest on the bonds are to be funded by 16 1 property tax and income surtax, the required number of votes 16 2 needed to authorize issuance of the bonds is a simple 16 3 majority. 16 4 The bill provides that a bond proposition which includes an 16 5 income surtax may not be presented to the electorate if, in 16 6 the first year the surtax is imposed, the total surtax imposed 16 7 on any taxpayer in the political subdivision would exceed 20 16 8 percent. The property tax levied or income surtax imposed is 16 9 to be designated as debt service taxes for the payment of 16 10 principal and interest on general obligation bonds. 16 11 The bill applies to bond issuances approved at elections 16 12 held on or after the effective date of the bill. 16 13 The bill applies to bonds issued by a county, a city, 16 14 school districts, and community colleges. 16 15 LSB 2432SS 79 16 16 sc/cf/24.1
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