House File 2732 - Introduced
HOUSE FILE
BY KURTENBACH
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to certification to the county auditor of the
2 amount of loans, advances, indebtedness, or bonds issued or
3 incurred for urban renewal purposes.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5536HH 81
6 sc/je/5
PAG LIN
1 1 Section 1. Section 403.19, subsection 5, Code 2005, is
1 2 amended to read as follows:
1 3 5. a. A municipality shall certify to the county auditor
1 4 on or before December 1 the amount of loans, advances,
1 5 indebtedness, or bonds which qualify for payment from the
1 6 special fund referred to in subsection 2, for each urban
1 7 renewal area in the municipality, and the filing of the
1 8 certificate shall make it a duty of the auditor to provide for
1 9 the division of taxes in each subsequent year without further
1 10 certification, except as provided in paragraphs "b" and "c",
1 11 until the amount of the loans, advances, indebtedness, or
1 12 bonds is paid to the special fund. If any loans, advances,
1 13 indebtedness, or bonds are issued which qualify for payment
1 14 from the special fund and which are in addition to amounts
1 15 already certified, the municipality shall certify the amount
1 16 of the additional obligations on or before December 1 of the
1 17 year such obligations were issued, and the filing of the
1 18 certificate shall make it a duty of the auditor to provide for
1 19 the division of taxes in each subsequent year without further
1 20 certification, except as provided in paragraphs "b" and "c",
1 21 until the amount of the loans, advances, indebtedness, or
1 22 bonds is paid to the special fund. Any subsequent
1 23 certifications under this subsection shall not include amounts
1 24 previously certified.
1 25 A certification made under this paragraph "a" shall include
1 26 the date that the individual loans, advances, indebtedness, or
1 27 bonds were initially approved by the governing body of the
1 28 municipality.
1 29 b. If the amount certified in paragraph "a" is reduced by
1 30 payment from sources other than the division of taxes, by a
1 31 refunding or refinancing of the obligation which results in
1 32 lowered principal and interest on the amount of the
1 33 obligation, or for any other reason, the municipality on or
1 34 before December 1 of the year the action was taken which
1 35 resulted in the reduction shall certify the amount of the
2 1 reduction to the county auditor.
2 2 c. In any year, the county auditor shall, upon receipt of
2 3 a certified request from a municipality filed on or before
2 4 December 1, increase the amount to be allocated under
2 5 subsection 1 in order to reduce the amount to be allocated in
2 6 the following fiscal year to the special fund, to the extent
2 7 that the municipality does not request allocation to the
2 8 special fund of the full portion of taxes which could be
2 9 collected. Upon receipt of a certificate from a municipality,
2 10 the auditor shall mail a copy of the certificate to each
2 11 affected taxing district.
2 12 EXPLANATION
2 13 This bill specifies that the amount of loans, advances,
2 14 indebtedness, or bonds issued for urban renewal purposes need
2 15 only be certified once to the county auditor unless loans,
2 16 advances, indebtedness, or bonds are subsequently issued and
2 17 are in addition to the amount already certified. The bill
2 18 requires that the date the municipality initially approves
2 19 such loans, advances, indebtedness, or bonds shall also be
2 20 included in the certification. The bill further specifies
2 21 that if the municipality takes action that results in a
2 22 reduction of the amount of an urban renewal obligation already
2 23 certified, the municipality shall certify the amount of the
2 24 reduction.
2 25 LSB 5536HH 81
2 26 sc:rj/je/5.1