If, in the opinion of the board of a school corporation, after having originally estimated and certified the amount required to pay interest and principal due upon bonded indebtedness incurred before July 1, 1995, an adjustment in the amount certified in excess of that previously levied by the resolution authorizing issuance of the bonds becomes necessary in anticipation of future projected revenue shortfalls resulting from a machinery and equipment-related taxable valuation decrease from the valuation as of January 1, 1994, an adjustment shall be permitted subject to the following limitations:
1. An adjustment shall be permitted only in a district in which machinery and equipment valuation exceeds twenty percent of total taxable valuation as of January 1, 1994.
2. The adjustment shall not result in a total amount levied in excess of the two dollar and seventy cent per thousand dollars of assessed valuation limit provided in section 298.18. An adjustment in excess of the two dollar and seventy cent per thousand dollars of assessed valuation limit shall be subject to the special election provisions for increases of up to four dollars and five cents per thousand dollars of assessed valuation provisions of section 298.18.
3. The amount of the adjustment, when added to the amount originally estimated and certified, for any one year, shall not exceed the least of:
a. The amount required to pay interest and principal due upon bonded indebtedness for the three-year period beginning on the date of the adjustment.
b. One hundred twenty-five percent of the amount originally estimated and certified.
c. One hundred ten percent of the total district levies for the fiscal year preceding the fiscal year in which the adjustment is to be added.
4. The amount of the adjustment plus the amount of state replacement moneys received under section 427B.19A which is attributable to the amount of the adjustment, when added to the amount originally estimated and certified, shall not result in the levying of an amount over the life of the issue in excess of the amount necessary for principal and interest repayment.
5. Amounts collected pursuant to this section shall be deposited in a separate debt service account distinct from the account established to hold principal and interest revenues resulting from the original levy.
6. An adjustment shall not be permitted which results in extending a levy beyond the earlier of the following:
a. Ten years from the original date of certification of the amount required to pay interest and principal.
b. June 30, 2007.
96 Acts, ch 1179, §1
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