Senate File 301 - Introduced SENATE FILE 301 BY SCHNEIDER and McCOY A BILL FOR An Act relating to the voter-approved physical plant and 1 equipment levy by authorizing school districts to exceed 2 the statutory levy rate limit following the refunding 3 or refinancing of certain loan agreements and including 4 effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2114XS (5) 86 md/sc

S.F. 301 Section 1. Section 298.2, subsection 1, Code 2015, is 1 amended to read as follows: 2 1. a. A physical plant and equipment levy of not exceeding 3 one dollar and sixty-seven cents per thousand dollars of 4 assessed valuation in the district is established except as 5 otherwise provided in this subsection . The physical plant 6 and equipment levy consists of the regular physical plant 7 and equipment levy of not exceeding thirty-three cents per 8 thousand dollars of assessed valuation in the district and 9 a voter-approved physical plant and equipment levy of not 10 exceeding one dollar and thirty-four cents per thousand 11 dollars of assessed valuation in the district. However, the 12 voter-approved physical plant and equipment levy may consist 13 of a combination of a physical plant and equipment property 14 tax levy and a physical plant and equipment income surtax as 15 provided in subsection 4 with the maximum amount levied and 16 imposed limited to an amount that could be raised by a one 17 dollar and thirty-four cent property tax levy. 18 b. For school budget years beginning on or after July 1, 19 2015, a school district may by resolution of the board of 20 directors adopted prior to April 15 preceding the budget year 21 impose a physical plant and equipment levy at a rate in excess 22 of the levy rate limitations under paragraph “a” if the board 23 has refunded or refinanced a loan agreement entered into under 24 section 297.36 and such refunding or refinancing complies with 25 the maturity period authorized under section 297.36, subsection 26 1, paragraph “c” , and results in a lower amount of interest on 27 the amount of the loan agreement. However, the rate imposed 28 by a school district under this paragraph shall not exceed the 29 rate imposed during the budget year in which the loan agreement 30 was refunded or refinanced. Authorization to exceed the levy 31 rate limitations of paragraph “a” shall terminate upon the 32 maturity of the loan agreement after refunding or refinancing. 33 Upon adoption of the resolution under this paragraph “b” , the 34 board shall comply with the requirements of section 297.36, 35 -1- LSB 2114XS (5) 86 md/sc 1/ 3

S.F. 301 subsection 1, paragraph “b” . 1 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 Current Code section 298.2 authorizes a physical plant and 7 equipment levy of not exceeding $1.67 per $1,000 of assessed 8 valuation in the district. The physical plant and equipment 9 levy consists of the regular physical plant and equipment levy 10 of not exceeding $0.33 per $1,000 of assessed valuation in the 11 district and a voter-approved physical plant and equipment 12 levy of not exceeding $1.34 per $1,000 of assessed valuation 13 in the district. However, the voter-approved physical plant 14 and equipment levy may consist of a combination of a physical 15 plant and equipment property tax levy and a physical plant and 16 equipment income surtax. In anticipation of revenues received 17 from the physical plant and equipment levy, Code section 297.36 18 authorizes school districts to borrow money and enter into loan 19 agreements. 20 This bill provides that for school budget years beginning 21 on or after July 1, 2015, a school district may by resolution 22 of the board of directors adopted prior to April 15 preceding 23 the budget year impose a physical plant and equipment levy at a 24 rate in excess of the levy rate limitations under Code section 25 298.2 if the board has refunded or refinanced a loan agreement 26 entered into under Code section 297.36 and such refunding or 27 refinancing complies with the maturity period authorized by 28 voters and results in a lower amount of interest on the amount 29 of the loan agreement. The bill provides, however, that the 30 rate imposed by a school district under the provisions of the 31 bill shall not exceed the rate imposed during the budget year 32 in which the loan agreement was refunded or refinanced. The 33 authorization to exceed the levy rate limitations terminates 34 upon the maturity of the loan agreement after refunding or 35 -2- LSB 2114XS (5) 86 md/sc 2/ 3

S.F. 301 refinancing. After adoption of the resolution to exceed the 1 levy rate limits, the bill requires the board of directors 2 to comply with Code section 297.36(1)(b) relating to the 3 certification of amounts to the county auditor. 4 The bill takes effect upon enactment. 5 -3- LSB 2114XS (5) 86 md/sc 3/ 3