House Study Bill 761
SENATE/HOUSE FILE
BY (PROPOSED DEPARTMENT OF
MANAGEMENT BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to city finance committee duties and the city
2 budgeting process.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5218XD 82
5 md/sc/5
PAG LIN
1 1 Section 1. Section 384.4, unnumbered paragraph 2, Code
1 2 Supplement 2007, is amended by striking the unnumbered
1 3 paragraph.
1 4 Sec. 2. Section 384.15, subsections 1 and 2, Code 2007,
1 5 are amended to read as follows:
1 6 1. Promulgate Consult with the department of management on
1 7 budget forms, adopt rules relating to budget amendments and
1 8 the procedures for transferring moneys between funds, and
1 9 adopt other rules necessary or desirable in order to exercise
1 10 its powers and perform its duties, including rules necessary
1 11 to implement section 384.6, subsection 1. The committee's
1 12 rules are subject to chapter 17A as applicable.
1 13 2. Select its officers and meet at least twice annually at
1 14 the call of the director of the department of management or at
1 15 the request of a majority of the committee.
1 16 Sec. 3. Section 384.15, subsection 7, Code 2007, is
1 17 amended by striking the subsection.
1 18 Sec. 4. Section 384.16, subsection 1, unnumbered paragraph
1 19 2, Code Supplement 2007, is amended to read as follows:
1 20 A budget must show comparisons between the estimated
1 21 expenditures in each program in the following year, the latest
1 22 estimated expenditures in each program in the current year,
1 23 and the actual expenditures in each program from the annual
1 24 report as provided in section 384.22, or as corrected by a
1 25 subsequent audit report. Wherever practicable, as provided in
1 26 rules of the committee, a budget must show comparisons between
1 27 the levels of service provided by each program as estimated
1 28 for the following year, and actual levels of service provided
1 29 by each program during the two preceding years. For each city
1 30 that has established an urban renewal area, the budget shall
1 31 include estimated and actual tax increment financing revenues
1 32 and all estimated and actual expenditures of the revenues,
1 33 proceeds from debt and all estimated and actual expenditures
1 34 of the debt proceeds, and identification of any entity
1 35 receiving a direct payment of taxes funded by tax increment
2 1 financing revenues and shall include the total amount of
2 2 loans, advances, indebtedness, or bonds outstanding at the
2 3 close of the most recently ended fiscal year, which qualify
2 4 for payment from the special fund created in section 403.19,
2 5 including interest negotiated on such loans, advances,
2 6 indebtedness, or bonds. For purposes of this subsection,
2 7 "indebtedness" includes written agreements whereby the city
2 8 agrees to suspend, abate, exempt, rebate, refund, or reimburse
2 9 property taxes, provide a grant for property taxes paid, or
2 10 make a direct payment of taxes, with moneys in the special
2 11 fund. The amount of loans, advances, indebtedness, or bonds
2 12 shall be listed in the aggregate for each city reporting. The
2 13 city finance committee, in consultation with the department of
2 14 management and the legislative services agency, shall
2 15 determine reporting criteria and shall prepare a form for
2 16 reports filed with the department pursuant to this section.
2 17 The department shall make the information available by
2 18 electronic means.
2 19 Sec. 5. Section 384.16, subsection 3, Code Supplement
2 20 2007, is amended to read as follows:
2 21 3. The council shall set a time and place for public
2 22 hearing on the budget before the final certification date and
2 23 shall publish notice of the hearing not less than ten four nor
2 24 more than twenty days before the hearing in a newspaper
2 25 published at least once weekly and having general circulation
2 26 in the city. However, if the city has a population of two
2 27 hundred or less, publication may be made by posting in three
2 28 public places in the city. A summary of the proposed budget
2 29 shall be included in the notice. Proof of publication must be
2 30 filed with the county auditor. The department of management
2 31 shall prescribe the form for the public hearing notice for use
2 32 by cities.
2 33 Sec. 6. Section 384.22, unnumbered paragraph 2, Code 2007,
2 34 is amended by striking the unnumbered paragraph.
2 35 EXPLANATION
3 1 This bill makes several changes to Iowa's city finance
3 2 laws. The bill amends Code section 384.4 to strike the
3 3 requirement that moneys pledged or available to service
3 4 general obligation bonds, and received from sources other than
3 5 property taxes, be deposited in a city's debt service fund.
3 6 The bill amends Code section 384.15 relating to the city
3 7 finance committee. The bill requires the city finance
3 8 committee to consult with the department of management on
3 9 budget forms and requires the city finance committee to meet
3 10 at least two times per year.
3 11 The bill amends Code section 384.15 by abolishing the law
3 12 enforcement officer training reimbursement program which
3 13 currently is administered by the department of management
3 14 under rules adopted by the city finance committee. The law
3 15 enforcement officer training reimbursement program provides
3 16 reimbursement to a city or county for expenses incurred in
3 17 training a law enforcement officer who resigns from law
3 18 enforcement service with the city or county within four years
3 19 after completion of the law enforcement training.
3 20 Code section 384.16 is amended by striking a provision
3 21 requiring the city finance committee to determine city budget
3 22 reporting criteria in consultation with the department of
3 23 management and the legislative services agency, striking a
3 24 provision requiring the city finance committee to prepare a
3 25 form for such reports, and striking a provision requiring the
3 26 department of management to make such information available
3 27 electronically.
3 28 Currently, Code section 384.16, subsection 3, requires that
3 29 a notice of the public hearing on the city budget be published
3 30 not less than 10 and no more than 20 days before the hearing.
3 31 The bill amends the publication period to be not less than
3 32 four and no more than 20 days before the hearing. This
3 33 amendment makes the publication period consistent with other
3 34 publication of notices under Code section 362.3.
3 35 Currently, Code section 384.16 provides that a city failing
4 1 to meet the annual report filing deadline shall have a portion
4 2 of its allocation of homestead property tax credit
4 3 reimbursement withheld until the annual report is filed. The
4 4 bill strikes this penalty.
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