House File 2264 - Introduced HOUSE FILE 2264 BY KURTH , BROWN-POWERS , WINCKLER , GASKILL , KURTZ , KACENA , ANDERSON , and WILLIAMS A BILL FOR An Act excluding employee benefit costs from the calculation of 1 certain county and city budget amounts subject to approval 2 by resolution and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6046YH (3) 88 md/jh

H.F. 2264 Section 1. Section 331.433A, subsection 2, paragraphs a and 1 b, Code 2020, are amended to read as follows: 2 a. For general county services, the sum of the property 3 tax dollars levied under section 331.423, subsection 1 , 4 section 331.424, subsection 1 , and those amounts for general 5 county services under section 331.426 , but excluding additions 6 approved at election under section 331.425 and amounts 7 certified for the payment of employee benefits that are 8 associated with salaries for general county services, including 9 benefits under chapter 97B or other pension or retirement 10 systems . 11 b. For rural county services, the sum of the property tax 12 dollars levied under section 331.423, subsection 2 , section 13 331.424, subsection 2 , and those amounts for rural county 14 services under section 331.426 , but excluding additions 15 approved at election under section 331.425 and amounts 16 certified for the payment of employee benefits that are 17 associated with salaries for rural county services, including 18 benefits under chapter 97B or other pension or retirement 19 systems . 20 Sec. 2. Section 384.15A, subsection 2, Code 2020, is amended 21 to read as follows: 22 2. For budget years beginning on or after July 1, 2020, 23 prior to the period of time for distribution of the budget 24 under section 384.16, subsection 2 , the council shall adopt a 25 resolution establishing the total maximum property tax dollars 26 that may be certified for levy that includes taxes for city 27 government purposes under section 384.1 , for the city’s trust 28 and agency fund under section 384.6, subsection 1 , for the 29 city’s emergency fund under section 384.8 , and for the levies 30 authorized under section 384.12, subsections 8, 10, 11, 12, 13, 31 17, and 21 , but excluding additions approved at election under 32 section 384.12, subsection 19 . 33 Sec. 3. APPLICABILITY. This Act applies to county and city 34 budgets for fiscal years beginning on or after July 1, 2021. 35 -1- LSB 6046YH (3) 88 md/jh 1/ 2

H.F. 2264 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 Current law requires that for budget years beginning on or 4 after July 1, 2020, each county and city is, prior to filing of 5 the entity’s proposed budget, required to adopt a resolution 6 establishing, in the case of a county, the total maximum 7 property tax dollars that may be certified for levy for general 8 county services and the total maximum property tax dollars that 9 may be certified for levy for rural county services; and in the 10 case of a city, the total maximum property tax dollars that 11 may be certified for the enumerated city government purposes 12 and funds. If the sum of the total maximum property tax 13 dollars for the budget year specified in the resolution exceeds 14 102 percent of the sum of the current fiscal year’s actual 15 property taxes certified for levy, the governing body shall be 16 required to adopt the resolution by a two-thirds majority of 17 the membership of the governing body. 18 This bill excludes for counties amounts certified for the 19 payment of employee benefits, including benefits under Code 20 chapter 97B or other pension or retirement systems, and for 21 cities amounts certified under the city’s trust and agency fund 22 for payment of pension and employee benefits. 23 The bill applies to county and city budgets for fiscal years 24 beginning on or after July 1, 2021. 25 -2- LSB 6046YH (3) 88 md/jh 2/ 2