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PAG LIN 1 1 Section 1. Section 75.1, Code 2003, 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. Notwithstanding subsection 1, if principal and interest 1 14 on bonds issued by a county, school corporation, or city are 1 15 to be paid in part with revenue from a local income surtax 1 16 imposed under section 76.19, the proposition shall so state 1 17 and the proposition is adopted if the vote in favor of the 1 18 proposition is equal to at least fifty-five percent of the 1 19 total vote cast for and against the proposition at the 1 20 election. However, a bond issuance proposition proposing 1 21 imposition of an income surtax shall not be presented to the 1 22 electors if in the first year the income surtax is imposed the 1 23 total of all income surtaxes, including income surtaxes 1 24 authorized in sections 257.21, 257.29, and 298.2, and the 1 25 enrichment surtax under section 442.15, Code 1989, imposed in 1 26 that year on any taxpayer in the political subdivision would 1 27 exceed twenty percent. Upon request of the governing 1 28 authority, the department of management shall certify the 1 29 cumulative rate of income surtax being imposed in the 1 30 political subdivision. 1 31 3. All ballots cast and not counted as a vote for or 1 32 against the proposition shall not be used in computing the 1 33 total vote cast for and againstsaidthe proposition. 1 34 4. When a proposition to authorize an issuance of bonds 1 35 has been submitted to the electors under this section and the 2 1 proposal fails to gain approval by the required percentage of 2 2 votes, such proposal, or any proposal which incorporates any 2 3 portion of the defeated proposal, shall not be submitted to 2 4 the electors for a period of six months from the date of such 2 5 regular or special election. 2 6 Sec. 2. Section 76.1, Code 2003, is amended to read as 2 7 follows: 2 8 76.1 MANDATORY RETIREMENT. 2 9Hereafter issuesIssues of bondsof every kind and2 10characterby counties, cities, and school corporations shall 2 11 be consecutively numbered. The annual levy of property tax or 2 12 a combination of property tax levy and income surtax imposed 2 13 as provided in section 76.19, if authorized by an election 2 14 held pursuant to section 75.1, shall be sufficient to pay the 2 15 interest and approximately such portion of the principal of 2 16 the bonds as will retire them in a period not exceedingtwenty2 17 twenty-two years from date of issue. Each issue of bonds 2 18 shall be scheduled to mature serially in the same order as 2 19 numbered. 2 20 Sec. 3. Section 76.2, Code 2003, is amended to read as 2 21 follows: 2 22 76.2 MANDATORY LEVY OBLIGATIONS IN ANTICIPATION OF 2 23 LEVY. 2 24 The governing authority of these political subdivisions 2 25 before issuing bonds shall, by resolution, provide for the 2 26 assessment of an annual levy upon all the taxable property in 2 27 the political subdivision, or the assessment of an annual levy 2 28 and imposition of an income surtax under section 76.19, 2 29 sufficient to pay theinterest andprincipal of the bonds 2 30 within a period named not exceedingtwenty yearsthat period 2 31 provided in section 76.1. A certified copy of this resolution 2 32 shall be filed with the county auditoror the auditorsofthe2 33countieseach county in which the political subdivision is 2 34 located; and the filing shall make it a duty of theauditors2 35 auditor to enter annually this levy for collection from the 3 1 taxable property within the boundaries of the political 3 2 subdivision until funds are realized to pay the principal and 3 3 interest of the bonds in full. If a political subdivision has 3 4 imposed an income surtax under section 76.19, the annual 3 5 property tax levy shall be reduced to the extent and in the 3 6 manner provided in that section. The property tax levy shall 3 7 continue to be made against property that is severed from the 3 8 political subdivision after the filing of the resolution until 3 9 funds are realized to pay the principal and interest of bonds 3 10 in full. 3 11 If the resolution is filed prior to April 1 or May 1, if 3 12 the political subdivision is a school district, the annual 3 13 levy shall begin with the tax levy for collection commencing 3 14 July 1 of that year. If the resolution is filed after April 1 3 15 or May 1, in the case of a school district, the annual levy 3 16 shall begin with the tax levy for collection in the next 3 17 succeeding fiscal year. However, the governing authority of a 3 18 political subdivision may adjust a levy of taxes made under 3 19 this section for the purpose of adjusting the annual levies 3 20 and collections for property severed from the political 3 21 subdivision, subject to the approval of the director of the 3 22 department of management. 3 23 If the resolution includes imposition of a local income 3 24 surtax, the annual levy shall begin with the tax levy for 3 25 collection commencing July 1 of the calendar year subsequent 3 26 to the calendar year in which the resolution was filed. 3 27 If the resolution includes the imposition of a local income 3 28 surtax and it is filed with the department of revenue and 3 29 finance prior to August 1, the imposition of the surtax is 3 30 retroactive to January 1 of that calendar year. If the 3 31 resolution is filed with the department of revenue and finance 3 32 on or after August 1, the imposition of the income surtax is 3 33 January 1 of the next calendar year. 3 34 If funds, including reserves and amounts available for 3 35 temporary transfer, arefound to beinsufficient to pay in 4 1 full any installment of principal or interest, a public issuer 4 2 of bonds may anticipate the next levy of taxes pursuant to 4 3 this section or the imposition of an income surtax under 4 4 section 76.19 in the manner provided in chapter 74, whether 4 5 the taxes so anticipated are to be collected in the same or a 4 6 future fiscal year. 4 7 To further secure the payment of the bonds, the governing 4 8 authority shall, by resolution, provide for the assessment of 4 9 an annual levy of a standby tax upon all taxable property 4 10 within the political subdivision. A copy of the resolution 4 11 shall be sent to the county auditor of each county in which 4 12 the political subdivision is located. The revenues from the 4 13 standby tax shall be deposited in a special fund and shall be 4 14 expended only for the payment of principal of and interest on 4 15 the bonds issued as provided in this section, when the revenue 4 16 from an income surtax as provided in section 76.19 is 4 17 insufficient. No reserves may be built up in this fund in 4 18 anticipation of a projected default. The governing authority 4 19 shall adjust the annual standby tax levy for each year to 4 20 reflect the amount of revenues in the special fund and the 4 21 amount of principal and interest which is due in that year. 4 22 Sec. 4. Section 76.7, Code 2003, is amended to read as 4 23 follows: 4 24 76.7 PARTICULAR BONDS AFFECTED PAYMENT. 4 25 Counties, cities, and school corporations may at any time 4 26or timesextend or renew any legal indebtedness or any part 4 27thereofof the indebtedness theymayhave represented by bonds 4 28 or certificates wheresuchthe indebtedness is payable from a 4 29 limited annual tax or from a local income surtax imposed under 4 30 section 76.19, or from a voted annual tax, and may by 4 31 resolution fund or refund thesamelegal indebtedness and 4 32 issue bondsthereforrunning not more thantwenty yearsthe 4 33 period of time provided in section 76.1 to be known as funding 4 34 or refunding bonds, and make provision for the payment of the 4 35 principal and interestthereoffrom the proceeds of an annual 5 1 tax or annual tax and local income surtax for the period 5 2 covered bysuchthe bonds similar to the tax authorized by law 5 3 or by the electors for the payment of the indebtednessso5 4 extended or renewed. 5 5 Sec. 5. NEW SECTION. 76.19 INCOME SURTAX. 5 6 An income surtax may be imposed by a political subdivision 5 7 as provided in this section, but only if authorized by the 5 8 electors as provided in section 75.1. 5 9 The income surtax shall be imposed upon state income taxes 5 10 computed under sections 422.5 and 422.33, less credits allowed 5 11 in sections 422.11 through 422.12C, and shall be imposed upon 5 12 the state income tax for each calendar year, or for a 5 13 taxpayer's fiscal year ending during the second half of that 5 14 calendar year or the first half of the succeeding calendar 5 15 year, and shall be imposed on all taxpayers residing in the 5 16 political subdivision on the last day of the applicable tax 5 17 year. The income surtax imposed on a corporation shall only 5 18 be imposed by the political subdivision in which the principal 5 19 office from which the return is filed is located. 5 20 The income surtax shall be used to pay an amount that is 5 21 equal to at least eighty percent of the sum of the principal 5 22 and interest of the bonds over the life of the bonds. The 5 23 rate of the income surtax may be adjusted in any year for the 5 24 sole purpose of ensuring that at least eighty percent of the 5 25 principal and interest is paid from income surtax over the 5 26 life of the bonds. 5 27 At the time of the annual levy under section 76.2, the 5 28 governing authority of the political subdivision shall also 5 29 impose as part of the resolution an income surtax sufficient 5 30 to pay at least eighty percent of the principal and interest 5 31 of the bonds and certify to the department of management such 5 32 sum expressed in dollars. However, in the first year in which 5 33 the surtax is imposed, the amount collected shall be an amount 5 34 sufficient to pay ninety percent of the principal and interest 5 35 of the bonds. The department shall determine the rate of 6 1 income surtax to be imposed based upon the most recent 6 2 available figures from state income taxes paid by taxpayers 6 3 residing in the political subdivision. The department shall 6 4 continue to make such calculations and certify the income 6 5 surtax rate to the auditor of the political subdivision with 6 6 adjustments as provided in this section until the principal 6 7 and interest on the bonds are paid in full. On or before 6 8 November 1 of each year in which the income surtax is 6 9 collected, the director of revenue and finance shall deposit 6 10 with the treasurer of the political subdivision the entire 6 11 amount of income surtax collected from taxpayers residing in 6 12 the political subdivision. 6 13 The director of revenue and finance shall administer the 6 14 income surtax imposed under this chapter and sections 422.20, 6 15 422.22 through 422.31, 422.68, and 422.72 through 422.75 shall 6 16 apply with respect to administration of the income surtax. 6 17 Sec. 6. NEW SECTION. 76.20 INCOME TAX RETURNS. 6 18 An income surtax imposed under section 76.19 shall be made 6 19 a part of the Iowa individual and Iowa corporate income tax 6 20 returns subject to the conditions and restrictions set forth 6 21 in section 422.21. The director of revenue and finance shall 6 22 provide on income tax returns a requirement that each person 6 23 or corporation required to file a return numerically identify 6 24 the city of residence or city of principal office of the 6 25 taxpayer and the merged area from which the tax return is 6 26 filed upon the income tax return. 6 27 Sec. 7. NEW SECTION. 76.21 DESIGNATION OF TAX. 6 28 An income surtax imposed by a school district under section 6 29 76.19 shall be designated as a school debt service income 6 30 surtax, an income surtax imposed by a merged area shall be 6 31 designated as a merged area debt service income surtax, and an 6 32 income surtax imposed by a county shall be designated a county 6 33 debt service income surtax. 6 34 Sec. 8. Section 260C.20, Code 2003, is amended to read as 6 35 follows: 7 1 260C.20 PAYMENT OF BONDS. 7 2 Taxes for the payment of bonds issued under section 260C.19 7 3 shall be levied in accordance with chapter 76. The bonds 7 4 shall be payable from a fund created from the proceeds of the 7 5 taxes in not more thantwenty yearsthe time period provided 7 6 in section 76.1 and shall bear interest at a rate not 7 7 exceeding the rate permitted by chapter 74A, and shall be of 7 8 the form as the board issuing the bonds shall by resolution 7 9 provide. Any indebtedness incurred shall not be considered an 7 10 indebtedness incurred for general and ordinary purposes. 7 11 Sec. 9. Section 260C.21, Code 2003, is amended to read as 7 12 follows: 7 13 260C.21 ELECTION TO INCUR INDEBTEDNESS. 7 14 1.No indebtednessIndebtedness shall not be incurred 7 15 under section 260C.19 until authorized by an election. A 7 16 proposition to incur indebtedness and issue bonds for 7 17 community college purposes shall be deemedcarriedadopted in 7 18 a merged area if approved by a sixty percent majority of all 7 19 voters voting on the proposition in the area. However, if the 7 20 board elects to partially fund the issuance of bonds with 7 21 revenues from a local income surtax, in addition to property 7 22 tax revenues, the ballot proposition to authorize the issuance 7 23 of the bonds shall be submitted to the electorate pursuant to 7 24 section 75.1, subsection 2. 7 25 2. Notwithstanding subsection 1, if the costs of utilities 7 26 are paid by a community college with funds derived from the 7 27 levy authorized under section 260C.22, the community college 7 28 may use the general fund moneys that would have been used to 7 29 pay the costs of utilities for capital expenditures, may 7 30 invest the funds, or may incur indebtedness without an 7 31 election, provided that the payments on the indebtedness 7 32 incurred, and any interest on the indebtedness, can be made 7 33 using general funds of the community college and the total 7 34 payments on the principal and interest on the indebtedness do 7 35 not exceed the amount of the costs of the utilities. 8 1 Sec. 10. Section 296.1, Code 2003, is amended to read as 8 2 follows: 8 3 296.1 INDEBTEDNESS AUTHORIZED. 8 4 Subject to the approval of the voters thereof, school 8 5 districts areherebyauthorized to contract indebtedness and 8 6 to issue general obligation bonds to provide funds to defray 8 7 the cost of purchasing, building, furnishing, reconstructing, 8 8 repairing, improving or remodeling a schoolhouse or 8 9 schoolhouses and additions thereto, gymnasium, stadium, field 8 10 house, school bus garage, teachers' or superintendent's home 8 11 or homes, and procuring a site or sites therefor, or 8 12 purchasing land to add to a site already owned, or procuring 8 13 and improving a site for an athletic field, or improving a 8 14 site already owned for an athletic field, and for any one or 8 15 more of such purposes. Taxes for the payment ofsaidthe 8 16 bonds shall be levied or imposed in accordance with chapter 8 17 76, andsaidthe bonds shall mature withinathe time period 8 18not exceeding twenty years from date of issueprovided in 8 19 section 76.1, shall bear interest at a rate or rates not 8 20 exceeding that permitted by chapter 74A and shall be of such 8 21 form as the board of directors ofsuchthe school district 8 22 shall by resolution provide, but the aggregate indebtedness of 8 23 any school district shall not exceed five percent of the 8 24 actual value of the taxable property withinsaidthe school 8 25 district, as ascertained by the last preceding state and 8 26 county tax lists. 8 27 Sec. 11. Section 296.6, Code 2003, is amended to read as 8 28 follows: 8 29 296.6 BONDS. 8 30 If the vote in favor of the issuance of such bonds is equal 8 31 to at least sixty percent of the total vote cast for and 8 32 againstsaidthe proposition atsaidthe election, the board 8 33 of directors shall issue thesamebonds and make provision for 8 34 paymentthereofof the bonds. However, if the board of 8 35 directors of a school corporation elects to partially fund the 9 1 issuance of bonds with revenues from a local income surtax, in 9 2 addition to property tax revenues, the ballot proposition to 9 3 authorize the issuance of the bonds shall be submitted to the 9 4 electorate pursuant to section 75.1, subsection 2. 9 5 Sec. 12. Section 298.18, unnumbered paragraphs 2, 4, and 9 6 6, Code 2003, are amended to read as follows: 9 7 The amount estimated and certified toapply onpay 9 8 principal and interest for any one year shall not exceed an 9 9 amount that could be raised by a property tax levy equal to 9 10 two dollars and seventy cents per thousand dollars of the 9 11 assessed valuation of the taxable property of the school 9 12 corporation except as hereinafter provided. 9 13 The amount estimated and certified toapply onpay 9 14 principal and interest for any one year may exceed an amount 9 15 that could be raised by a property tax levy equal to two 9 16 dollars and seventy cents per thousand dollars of assessed 9 17 value by the amount approved by the voters of the school 9 18 corporation, but not exceeding four dollars and five cents per 9 19 thousand of the assessed value of the taxable property within 9 20 any school corporation, provided that the registered voters of 9 21 such school corporation have first approved such increased 9 22 amount at a special election, which may be held at the same 9 23 time as the regular school election. The proposition 9 24 submitted to the voters at such special election shall be in 9 25 substantially the following form: 9 26 Notice of the election shall be given by the county 9 27 commissioner of elections according to section 49.53. The 9 28 election shall be held on a date not less than four nor more 9 29 than twenty days after the last publication of the notice. At 9 30suchthe election the ballot used for the submission ofsaid9 31 the proposition shall be in substantially the form for 9 32 submitting special questions at general elections. The county 9 33 commissioner of elections shall conduct the election pursuant 9 34 to the provisions of chapters 39 to 53 and certify the results 9 35 to the board of directors.SuchThe proposition shall not be 10 1 deemedcarried oradopted unless the vote in favor ofsuchthe 10 2 proposition is equal to at least sixty percent of the total 10 3 vote cast for and againstsaidthe proposition atsaidthe 10 4 election. However, if the board of directors of a school 10 5 corporation elects to partially fund the issuance of bonds 10 6 with revenues from a local income surtax, in addition to 10 7 property tax revenues, the ballot proposition to authorize the 10 8 issuance of the bonds shall be submitted to the electorate 10 9 pursuant to section 75.1, subsection 2.WheneverIf such a 10 10 proposition has been approved by the voters of a school 10 11 corporation as hereinbefore provided, no further approval of 10 12 the voters ofsuchthe school corporation shall be required as 10 13 a result of any subsequent change in the boundaries ofsuch10 14 the school corporation. 10 15 Sec. 13. Section 298.22, unnumbered paragraph 1, Code 10 16 2003, is amended to read as follows: 10 17All of saidThe bonds shall be substantially in the form 10 18 provided for county bonds, but subject to changes that will 10 19 conform them to the action of the boardproviding therefor; 10 20 shallrun not more than twenty yearsmature within the time 10 21 period provided in section 76.1, and may be sooner paid if so 10 22 nominated in the bond; bear a rate of interest not exceeding 10 23 that permitted by chapter 74A, payable semiannually; be signed 10 24 by the president and countersigned by the secretary of the 10 25 board of directors; and shall not be disposed of for less than 10 26 par value, nor issued for other purposes than this chapter 10 27 provides. 10 28 Sec. 14. Section 331.442, subsection 4, Code 2003, is 10 29 amended to read as follows: 10 30 4. The proposition of issuing bonds for a general county 10 31 purpose is notcarried oradopted unless the vote in favor of 10 32 the proposition is equal to at least sixty percent of the 10 33 total vote cast for and against the proposition at the 10 34 election. However, if the board elects to partially fund the 10 35 issuance of bonds with revenues from a local income surtax, in 11 1 addition to property tax revenues, the ballot proposition to 11 2 authorize the issuance of the bonds shall be submitted to the 11 3 electorate pursuant to section 75.1, subsection 2. If the 11 4 proposition of issuing the general county purpose bonds is 11 5 approved by the voters, the board may proceed with the 11 6 issuance of the bonds. 11 7 Sec. 15. Section 331.442, subsection 5, paragraph a, 11 8 unnumbered paragraph 1, Code 2003, is amended to read as 11 9 follows: 11 10 Notwithstanding subsection 2, a board, in lieu of calling 11 11 an election, may institute proceedings for the issuance of 11 12 bonds for a general county purpose by causing a notice of the 11 13 proposal to issue the bonds, including a statement of the 11 14 amount and purpose of the bonds, the type or types of debt 11 15 service tax to be levied or imposed to pay principal and 11 16 interest on the bonds, and the right to petition for an 11 17 election, to be published as provided in section 331.305 at 11 18 least ten days prior to the meeting at which it is proposed to 11 19 take action for the issuance of the bonds subject to the 11 20 following limitations: 11 21 Sec. 16. Section 331.447, subsection 1, Code 2003, is 11 22 amended to read as follows: 11 23 1. Taxes for the payment of general obligation bonds shall 11 24 be levied or imposed in accordance with chapter 76, and the 11 25 bonds are payable fromthe levy of unlimited ad valorem taxes11 26on all the taxable property within the county through its debt11 27service fund required by section 331.430a debt service 11 28 property tax or a combination of a debt service property tax 11 29 and a debt service local income surtax, unlimited as to 11 30 amount, except that: 11 31 a. The amount estimated and certified to apply on 11 32 principal and interest for any one year shall not exceed an 11 33 amount that could be raised by a debt service property tax 11 34 levy equal to the maximum rate of tax, if any, provided by 11 35 this division for the purpose for which the bonds were issued. 12 1 If general obligation bonds are issued for different 12 2 categories, as provided in section 331.445, the maximum rate 12 3 of levies, if any, for each purpose shall apply separately to 12 4 that portion of the bond issue for that category and the 12 5 resolution authorizing the bond issue shall clearly set forth 12 6 the annual debt service requirements with respect to each 12 7 purpose in sufficient detail to indicate compliance with the 12 8 rate of tax levy, if any. 12 9 b. The amount estimated and certified toapply onpay 12 10 principal and interest for any one year may only exceed an 12 11 amount that could be raised by a debt service property tax 12 12 levy equal to the statutory rate of levy limit, if any, by the 12 13 amount that the registered voters of the county have approved 12 14 at a special election, which may be held at the same time as 12 15 the general election and may be included in the proposition 12 16 authorizing the issuance of bonds, if an election on the 12 17 proposition is necessary, or may be submitted as a separate 12 18 proposition at the same election or at a different election. 12 19 Notice of the election shall be given as specified in section 12 20 331.305. If the proposition includes issuing bonds and 12 21 increasing the levy limit, it shall be in substantially the 12 22 following form: 12 23 Shall the county of ........, state of Iowa, be authorized 12 24 to .......... (here state purpose of project) at a total cost 12 25 not exceeding $.... and issue its general obligation bonds in 12 26 an amount not exceeding $.... for that purpose, and be 12 27 authorized to levy annually a debt service property tax (or 12 28 debt service property tax and income surtax, if applicable), 12 29 which will produce an amount not exceeding ... dollars and ... 12 30 cents per thousand dollars of the assessed value of the 12 31 taxable property within the county to pay the principal of and 12 32 interest on the bonds? 12 33 If the proposition includes only increasing the levy limit 12 34 it shall be in substantially the following form: 12 35 Shall the county of ........, state of Iowa, be authorized 13 1 to levy annually a debt service property tax (or debt service 13 2 property tax and income surtax, if applicable), which will 13 3 produce an amount not exceeding ... dollars and ... cents per 13 4 thousand dollars of the assessed value of the taxable property 13 5 within the county to pay principal and interest on the bonded 13 6 indebtedness of the county for the purpose of ..........? 13 7 Sec. 17. Section 331.490, Code 2003, is amended to read as 13 8 follows: 13 9 331.490 CITIES SUBJECT TO DEBT SERVICE TAX LEVY RATES. 13 10 1. If a county and city have entered into an agreement to 13 11 create a joint special assessment district and issue county 13 12 general obligation bonds to fund the costs of a public 13 13 improvement benefiting that district, the county's debt 13 14 service property tax levy for the county general obligation 13 15 bonds shall not be levied against property located in any city 13 16 except a city which has entered into the agreement, and if 13 17 applicable, the county's debt service income surtax for the 13 18 county general obligation bonds shall not be imposed on 13 19 taxpayers who reside in any city except a city that has 13 20 entered into the agreement. 13 21 2. Counties and cities entering into an agreement for a 13 22 joint special assessment district may provide in the agreement 13 23 for a different rate of the county's debt service tax levy 13 24 against property in areas of the county outside a city and 13 25 property within the cities, and if applicable, for a different 13 26 rate of the county's debt service income surtax to be imposed 13 27 on taxpayers residing outside the cities and those residing 13 28 within each city. 13 29 Sec. 18. Section 384.26, subsection 2, Code 2003, is 13 30 amended to read as follows: 13 31 2. Before the council may institute proceedings for the 13 32 issuance of bonds for a general corporate purpose, it shall 13 33 call a special city election to vote upon the question of 13 34 issuing the bonds. At the election the proposition must be 13 35 submitted in substantially the following form: 14 1 Shall the ............ (insert the name of the city) issue 14 2 its bonds in an amount not exceeding the amount of $.... for 14 3 the purpose of .........., such bonds to be payable from a 14 4 property tax levied on all taxable property within the city 14 5 (and income surtax to be imposed on the state income tax of 14 6 each income taxpayer residing in the city)? 14 7 Sec. 19. Section 384.26, subsection 4, Code 2003, is 14 8 amended to read as follows: 14 9 4. The proposition of issuing general corporate purpose 14 10 bonds is notcarried oradopted unless the vote in favor of 14 11 the proposition is equal to at least sixty percent of the 14 12 total vote cast for and against the proposition at the 14 13 election. If the proposition of issuing the general corporate 14 14 purpose bonds is approved by the voters, the city may proceed 14 15 with the issuance of the bonds. However, if the city council 14 16 elects to partially fund the issuance of bonds with revenues 14 17 from a local income surtax, in addition to property tax 14 18 revenues, the ballot proposition to authorize the issuance of 14 19 the bonds shall be submitted to the electorate pursuant to 14 20 section 75.1, subsection 2. 14 21 Sec. 20. Section 384.26, subsection 5, paragraph a, 14 22 unnumbered paragraph 1, Code 2003, is amended to read as 14 23 follows: 14 24 Notwithstanding the provisions of subsection 2, a council 14 25 may, in lieu of calling an election, institute proceedings for 14 26 the issuance of bonds for a general corporate purpose by 14 27 causing a notice of the proposal to issue the bonds, including 14 28 a statement of the amount and purpose of the bonds, the type 14 29 or types of debt service tax to be levied or imposed to pay 14 30 principal and interest on the bonds, together with the maximum 14 31 rate of interest which the bonds are to bear, and the right to 14 32 petition for an election, to be published at least once in a 14 33 newspaper of general circulation within the city at least ten 14 34 days prior to the meeting at which it is proposed to take 14 35 action for the issuance of the bonds subject to the following 15 1 limitations: 15 2 Sec. 21. Section 384.32, Code 2003, is amended to read as 15 3 follows: 15 4 384.32 TAX TO PAY. 15 5 Taxes for the payment of general obligation bonds must be 15 6 levied in accordance with chapter 76, and the bonds are 15 7 payable from the levy ofunlimited ad valorem taxes on all the15 8taxable property within the city through its debt service fund15 9authorized by section 384.4a debt service property tax or a 15 10 combination of a debt service property tax and a debt service 15 11 income surtax, unlimited as to amount. 15 12 EXPLANATION 15 13 This bill authorizes bonds to be issued that will be 15 14 partially funded by a local income surtax, in addition to 15 15 property taxes. At least 80 percent of the principal and 15 16 interest of the bonds shall be funded by income surtax. The 15 17 question of whether to impose a local income surtax to 15 18 partially fund the issuance of bonds shall be included in the 15 19 bond issuance ballot proposition. If the bond issuance is to 15 20 be funded by property tax and local income surtax, the 15 21 required percentage of votes needed to authorize issuance of 15 22 the bonds is reduced from 60 percent to 55 percent. The 15 23 property tax levied or income surtax imposed are to be 15 24 designated as debt service taxes for the payment of principal 15 25 and interest on general obligation bonds. 15 26 The bill applies to bonds issued by a county, city, school 15 27 district, or community college. 15 28 LSB 1072XS 80 15 29 sc/cl/14.1
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