H.F. 773 Section 1. Section 23A.2, subsection 10, paragraph h, Code 1 2019, is amended to read as follows: 2 h. The performance of an activity listed in section 331.424 , 3 Code 2019, as a service for which a supplemental levy county 4 may be certified include in its budget . 5 Sec. 2. Section 28M.5, subsections 1 and 2, Code 2019, are 6 amended to read as follows: 7 1. The commission, with the approval of the board of 8 supervisors of participating counties and the city council 9 of participating cities in the chapter 28E agreement, may 10 levy annually a tax not to exceed ninety-five cents per 11 thousand dollars of the assessed value of all taxable property 12 in a regional transit district to the extent provided in 13 this section . The chapter 28E agreement may authorize the 14 commission to levy the tax at different rates within the 15 participating cities and counties in amounts sufficient to meet 16 the revenue responsibilities of such cities and counties as 17 allocated in the budget adopted by the commission. However, 18 for a city participating in a regional transit district, the 19 total of all the tax levies imposed in the city pursuant 20 to section 384.12, subsection 10 , and this section shall 21 not exceed the aggregate of ninety-five cents per thousand 22 dollars of the assessed value of all taxable property in the 23 participating city. 24 2. If a regional transit district budget allocates 25 revenue responsibilities to the board of supervisors of a 26 participating county, the amount of the regional transit 27 district levy that is the responsibility of the participating 28 county shall be deducted from the maximum rates amount of taxes 29 authorized to be levied by the county pursuant to section 30 331.423, subsections 1 and 2 subsection 3, paragraphs “b” 31 and “c” , as applicable, unless the county meets its revenue 32 responsibilities as allocated in the budget from other 33 available revenue sources. However, for a regional transit 34 district that includes a county with a population of less than 35 -1- LSB 1563HV (3) 88 md/jh 1/ 30

H.F. 773 three hundred thousand, the amount of the regional transit 1 district levy that is the responsibility of such participating 2 county shall be deducted from the maximum rate amount of taxes 3 authorized to be levied by the county pursuant to section 4 331.423, subsection 1 3, paragraph “b” . 5 Sec. 3. Section 29C.17, subsection 2, paragraph a, Code 6 2019, is amended by striking the paragraph. 7 Sec. 4. Section 123.38, subsection 2, paragraph b, Code 8 2019, is amended to read as follows: 9 b. For purposes of this subsection , any portion of license 10 or permit fees used for the purposes authorized in section 11 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 12 (2), Code 2019, and in section 331.424A , shall not be deemed 13 received either by the division or by a local authority. 14 Sec. 5. Section 218.99, Code 2019, is amended to read as 15 follows: 16 218.99 Counties to be notified of patients’ personal 17 accounts. 18 The administrator in control of a state institution shall 19 direct the business manager of each institution under the 20 administrator’s jurisdiction which is mentioned in section 21 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 22 (2), and for which services are paid under section 331.424A , 23 to quarterly inform the county of residence of any patient or 24 resident who has an amount in excess of two hundred dollars on 25 account in the patients’ personal deposit fund and the amount 26 on deposit. The administrators shall direct the business 27 manager to further notify the county of residence at least 28 fifteen days before the release of funds in excess of two 29 hundred dollars or upon the death of the patient or resident. 30 If the patient or resident has no residency in this state or 31 the person’s residency is unknown, notice shall be made to the 32 director of human services and the administrator in control of 33 the institution involved. 34 Sec. 6. Section 331.263, subsection 2, Code 2019, is amended 35 -2- LSB 1563HV (3) 88 md/jh 2/ 30

H.F. 773 to read as follows: 1 2. The governing body of the community commonwealth 2 shall have the authority to levy county taxes and shall 3 have the authority to levy city taxes to the extent the 4 city tax levy authority is transferred by the charter to 5 the community commonwealth. A city participating in the 6 community commonwealth shall transfer a portion of the 7 city’s tax levy authorized under section 384.1 or 384.12 , 8 whichever is applicable, to the governing body of the community 9 commonwealth. The maximum rates amount of taxes authorized to 10 be levied under sections section 384.1 and the maximum amount 11 of taxes authorized to be levied under section 384.12 by a city 12 participating in the community commonwealth shall be reduced 13 by an amount equal to the rates of the same or similar taxes 14 levied in the city by the governing body of the community 15 commonwealth. 16 Sec. 7. Section 331.301, subsection 12, Code 2019, is 17 amended to read as follows: 18 12. The board of supervisors may credit funds to a reserve 19 for the purposes authorized by subsection 11 of this section ; 20 section 331.424, subsection 1 , paragraph “a” , subparagraph 21 (5); and section 331.441, subsection 2 , paragraph “b” . Moneys 22 credited to the reserve, and interest earned on such moneys, 23 shall remain in the reserve until expended for purposes 24 authorized by subsection 11 of this section ; section 331.424, 25 subsection 1 , paragraph “a” , subparagraph (5); or section 26 331.441, subsection 2 , paragraph “b” . 27 Sec. 8. Section 331.421, subsections 1 and 10, Code 2019, 28 are amended by striking the subsections. 29 Sec. 9. Section 331.421, Code 2019, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 7A. “Item” means, in accordance 32 with protests under chapter 24, a budgeted expenditure, 33 appropriation, or cash reserve from a fund for a service area, 34 program, program element, or purpose. 35 -3- LSB 1563HV (3) 88 md/jh 3/ 30

H.F. 773 Sec. 10. Section 331.422, unnumbered paragraph 1, Code 1 2019, is amended to read as follows: 2 Subject to this section and sections 331.423 through 331.426 3 331.424C or as otherwise provided by state law, the board of 4 each county shall certify property taxes annually at its March 5 session to be levied for county purposes as follows: 6 Sec. 11. Section 331.423, Code 2019, is amended by striking 7 the section and inserting in lieu thereof the following: 8 331.423 Property tax dollars —— maximums. 9 1. Annually, the board shall determine separate property 10 tax levy limits to pay for general county services and rural 11 county services in accordance with this section. The property 12 tax levies separately certified for general county services and 13 rural county services under section 331.434 shall not raise 14 property tax dollars that exceed the amounts determined under 15 this section. 16 2. For purposes of this section, unless the context 17 otherwise requires: 18 a. “Annual growth factor” means one hundred two percent. 19 b. “Boundary adjustment” means annexation, severance, 20 incorporation, or discontinuance as those terms are defined in 21 section 368.1. 22 c. “Budget year” is the fiscal year beginning during the 23 calendar year in which a budget is certified. 24 d. “Current fiscal year” is the fiscal year ending during 25 the calendar year in which a budget is certified. 26 e. “Net new valuation taxes” means the amount of property 27 tax dollars equal to the current fiscal year’s levy rate in 28 the county for general county services or for rural county 29 services, as applicable, multiplied by the net increase from 30 the current fiscal year to the budget year in taxable valuation 31 due to the following, the amount of each as certified by the 32 county auditor to the department of management by January 33 1 preceding the applicable fiscal year, excluding amounts 34 attributable to a valuation release: 35 -4- LSB 1563HV (3) 88 md/jh 4/ 30

H.F. 773 (1) New construction. 1 (2) Additions or improvements to existing structures that 2 are not normal and necessary repairs under section 441.21, 3 subsection 8. 4 (3) Net boundary adjustment. 5 (4) A municipality no longer dividing tax revenues in an 6 urban renewal area as provided in section 403.19 or a community 7 college no longer dividing revenues as provided in section 8 260E.4. 9 (5) That portion of taxable property located in an urban 10 revitalization area on which an exemption was allowed and such 11 exemption has expired. 12 (6) New exemptions for existing properties and the 13 expiration or removal of property exemptions. 14 f. “Valuation release” means the valuation that is released 15 in any one year from either a division of revenue under section 16 260E.4 or an urban renewal area for which taxes were being 17 divided under section 403.19 if the property for the valuation 18 being released remains subject to the division of revenue under 19 section 260E.4 or remains part of the urban renewal area that 20 is subject to a division of revenue under section 403.19. 21 3. a. For the fiscal year beginning July 1, 2020, and 22 subsequent fiscal years, the maximum amount of property tax 23 dollars which may be certified for levy by a county for general 24 county services and rural county services shall be the maximum 25 property tax dollars calculated under paragraphs “b” and “c” , 26 respectively. The amount of property tax dollars calculated 27 under this subsection and determined under subsection 4 28 includes those amounts received by the county as replacement 29 taxes under chapter 437A or 437B. 30 b. The maximum property tax dollars that may be levied for 31 general county services is an amount equal to the sum of the 32 following: 33 (1) The annual growth factor times the current fiscal year’s 34 actual property tax dollars certified for levy for general 35 -5- LSB 1563HV (3) 88 md/jh 5/ 30

H.F. 773 county services. 1 (2) The amount of net new valuation taxes in the county. 2 (3) The amount of the additions for general county services 3 approved under section 331.424 for the budget year, if 4 applicable. 5 c. The maximum property tax dollars that may be levied for 6 rural county services is an amount equal to the sum of the 7 following: 8 (1) The annual growth factor times the current fiscal year’s 9 actual property tax dollars certified for levy for rural county 10 services. 11 (2) The amount of net new valuation taxes in the 12 unincorporated area of the county. 13 (3) The amount of the additions for rural county services 14 approved under section 331.424 for the budget year, if 15 applicable. 16 4. a. For purposes of calculating maximum property tax 17 dollars for general county services for the fiscal year 18 beginning July 1, 2020, only, the term “current fiscal year’s 19 actual property tax dollars” shall mean the total amount of 20 property tax dollars certified by the county for general county 21 services for the fiscal year beginning July 1, 2019, or the 22 fiscal year beginning July 1, 2018, whichever is greater, 23 including amounts certified under section 331.424, subsection 24 1, Code 2019. 25 b. For purposes of calculating maximum property tax dollars 26 for rural county services for the fiscal year beginning July 27 1, 2020, only, the term “current fiscal year’s actual property 28 tax dollars” shall mean the total amount of property tax 29 dollars certified by the county for rural county services for 30 the fiscal year beginning July 1, 2019, or the fiscal year 31 beginning July 1, 2018, whichever is greater, including amounts 32 certified under section 331.424, subsection 2, Code 2019. 33 c. For purposes of calculating maximum property tax dollars 34 for a fiscal year beginning on or after July 1, 2021, a county 35 -6- LSB 1563HV (3) 88 md/jh 6/ 30

H.F. 773 for which the county’s taxes were not certified back by the 1 department of management under section 24.17 for the current 2 fiscal year due to an act or omission of the county, the 3 current fiscal year’s actual property tax dollars certified for 4 levy shall be equal to the amount certified for levy for the 5 fiscal year immediately preceding the current fiscal year or 6 the amount under paragraph “a” or “b” , if applicable. 7 5. Property taxes certified for mental health and 8 disabilities services in section 331.424A, a unified law 9 enforcement district under chapter 28E, subchapter II, 10 the emergency services fund in section 331.424C, the debt 11 service fund in section 331.430, and any capital projects 12 fund established by the county for deposit of bond, loan, or 13 note proceeds, are not counted against the maximum amount of 14 property tax dollars that may be certified for a budget year 15 under subsection 3. 16 6. The department of management, in consultation with the 17 county finance committee, shall adopt rules to administer this 18 section. The department shall prescribe forms to be used by 19 counties when making calculations required by this section. 20 Sec. 12. NEW SECTION . 331.423A Ending fund balance. 21 1. a. Budgeted ending fund balances for a budget year 22 in excess of twenty-five percent of budgeted expenditures in 23 either the general fund or rural services fund for that budget 24 year shall be nonspendable or be restricted, committed, or 25 assigned for a specific purpose. 26 b. In a protest to the county budget under section 331.436, 27 the county shall have the burden of proving that the budgeted 28 balances in excess of twenty-five percent are reasonably likely 29 to be appropriated for the restricted, committed, or assigned 30 specific purpose. The excess budgeted balance for the specific 31 purpose shall be considered an increase in an item in the 32 budget for purposes of section 24.28. 33 2. a. For a county that has, as of June 30, 2019, reduced 34 its actual ending fund balance to less than twenty-five 35 -7- LSB 1563HV (3) 88 md/jh 7/ 30

H.F. 773 percent of actual expenditures, additional property taxes may 1 be computed and levied as provided in this subsection. The 2 additional property tax levy amount is an amount not to exceed 3 twenty-five percent of actual expenditures from the general 4 fund and rural services fund for the fiscal year beginning July 5 1, 2018, minus the combined ending fund balances for those 6 funds for that year. 7 b. The amount of the additional property taxes shall be 8 apportioned between the general fund and the rural services 9 fund. However, the amount apportioned for general county 10 services and for rural county services shall not exceed for 11 each fund twenty-five percent of actual expenditures for the 12 fiscal year beginning July 1, 2018. 13 c. All or a portion of additional property tax dollars 14 may be levied for the purpose of increasing cash reserves 15 for general county services and rural county services in the 16 budget year. The additional property tax dollars authorized 17 under this subsection but not levied may be carried forward as 18 unused ending fund balance taxing authority until and for the 19 fiscal year beginning July 1, 2025. The amount carried forward 20 shall not exceed twenty-five percent of the maximum amount of 21 property tax dollars available in the current fiscal year. 22 Additionally, property taxes that are levied as unused ending 23 fund balance taxing authority under this subsection may be the 24 subject of a protest under section 331.436, and the amount 25 will be considered an increase in an item in the budget for 26 purposes of section 24.28. The amount of additional property 27 taxes levied under this subsection shall not be included in the 28 computation of the maximum amount of property tax dollars which 29 may be certified and levied under section 331.423. 30 Sec. 13. Section 331.424, Code 2019, is amended by striking 31 the section and inserting in lieu thereof the following: 32 331.424 Authority to levy beyond maximum property tax 33 dollars. 34 1. a. The board may, by resolution and subject to the 35 -8- LSB 1563HV (3) 88 md/jh 8/ 30

H.F. 773 petition and election provisions of this section, annually 1 certify additions to the maximum amount of property tax 2 dollars to be levied pursuant to section 331.423, subsection 3, 3 paragraph “b” , subparagraph (3), or section 331.423, subsection 4 3, paragraph “c” , subparagraph (3), if the board publishes the 5 notice of the proposed action, including a statement of the 6 amount and purpose of the proposed additions, the requirements 7 and deadlines for filing a petition under paragraph “b” , the 8 resulting consequences and processes if a petition is filed 9 under paragraph “b” , and the time and place of a public meeting 10 at which the board proposes to take action on the proposal. At 11 the meeting, the board shall receive oral or written objections 12 from any resident or property owner of the county. After 13 all objections have been received and considered, the board 14 may, following twenty days after the meeting and subject to 15 paragraph “b” , take action on the proposal or abandon the 16 proposal. A resolution under this section approving additions 17 to the maximum amount of property tax dollars must be effective 18 not later than January 31 preceding the fiscal year for which 19 the addition is applicable. 20 b. If at any time within twenty days after the meeting under 21 paragraph “a” , a petition is filed with the county auditor 22 signed by eligible electors of the county equal in number to 23 the lesser of two thousand or twenty percent of the persons in 24 the county who voted for the office of president of the United 25 States at the last preceding general election that had such 26 office on the ballot, but not less than ten eligible electors, 27 asking that the question of levying an additional amount be 28 submitted to the registered voters of the county, the board 29 shall either by resolution declare the proposal to be abandoned 30 or shall direct the county commissioner of elections to call 31 a special election upon the question. If, however, a valid 32 petition is filed under this section and the notice requirement 33 of subsection 2, paragraph “a” , cannot be satisfied, the board 34 shall declare the proposal to be abandoned. 35 -9- LSB 1563HV (3) 88 md/jh 9/ 30

H.F. 773 2. The special election, if called, may be held on a Tuesday 1 other than the dates specified in section 39.2, subsection 4, 2 paragraph “a” , but not later than the second Tuesday in March 3 and is subject to the following: 4 a. The board must give at least thirty-two days’ notice to 5 the county commissioner of elections that the special election 6 is to be held. In no case, however, shall a notice be given to 7 the county commissioner of elections after January 31 for an 8 election on a proposition to exceed the statutory limits during 9 the fiscal year beginning following the current fiscal year. 10 b. The proposition submitted to voters may propose authority 11 for the board to certify additions to the maximum amount 12 of property tax dollars for up to two fiscal years. The 13 proposition is approved if it receives a favorable majority of 14 the votes cast on the proposition. 15 c. The proposition to be submitted shall be substantially 16 in the following form: 17 Vote “yes” or “no” on the following: 18 Shall the county of ........ levy for an additional $ ... each 19 year for ... years beginning July 1, .... , in excess of the 20 statutory limits otherwise applicable for the (general county 21 services or rural services) fund? 22 d. The canvass shall be held beginning at 1:00 p.m. on 23 the second day which is not a holiday following the special 24 election. 25 e. Notice of the special election shall be published at 26 least once in a newspaper as specified in section 331.305 prior 27 to the date of the special election. The notice shall appear 28 as early as practicable after the board has voted to submit 29 a proposition to the voters to levy additional property tax 30 dollars. 31 3. Registered voters in the county may vote on the 32 proposition to increase property taxes for the general fund 33 in excess of the statutory limit. Registered voters residing 34 outside the corporate limits of a city within the county may 35 -10- LSB 1563HV (3) 88 md/jh 10/ 30

H.F. 773 vote on the proposition to increase property taxes for the 1 rural services fund in excess of the statutory limit. 2 Sec. 14. Section 331.424A, subsection 6, Code 2019, is 3 amended to read as follows: 4 6. For each fiscal year, the county shall certify a levy 5 for payment of services. For each fiscal year, county revenues 6 from taxes imposed by the county credited to the county 7 services fund shall not exceed an amount equal to the county 8 budgeted amount for the fiscal year. A levy certified under 9 this section is not subject to the appeal provisions of section 10 331.426 or to any other provision in law authorizing a county 11 to exceed, increase, or appeal a property tax levy limit. 12 Sec. 15. Section 331.427, subsection 3, paragraph l, Code 13 2019, is amended to read as follows: 14 l. Services listed in section 331.424, subsection 1 , Code 15 2019, and section 331.554 . 16 Sec. 16. Section 331.428, subsection 2, paragraph d, Code 17 2019, is amended to read as follows: 18 d. Services listed under section 331.424, subsection 2 , Code 19 2019 . 20 Sec. 17. Section 331.429, subsection 1, paragraphs a and b, 21 Code 2019, are amended to read as follows: 22 a. Transfers from the general fund not to exceed in any year 23 the dollar equivalent of a tax of sixteen and seven-eighths 24 cents per thousand dollars of assessed value on all taxable 25 property in the county multiplied by the ratio of current 26 taxes actually collected and apportioned for the general basic 27 county services levy to the total general basic county services 28 levy for the current year, and an amount equivalent to the 29 moneys derived by the general fund from military service tax 30 credits under chapter 426A , manufactured or mobile home taxes 31 under section 435.22 , and delinquent taxes for prior years 32 collected and apportioned to the general basic county services 33 fund in the current year, multiplied by the ratio of sixteen 34 and seven-eighths cents to three dollars and fifty cents. 35 -11- LSB 1563HV (3) 88 md/jh 11/ 30

H.F. 773 The limit on transfers in this paragraph applies only to 1 property tax revenue and is not a limit on transfers of revenue 2 generated from sources other than property taxes. 3 b. Transfers from the rural services fund not to exceed in 4 any year the dollar equivalent of a tax of three dollars and 5 three-eighths cents per thousand dollars of assessed value on 6 all taxable property not located within the corporate limits 7 of a city in the county multiplied by the ratio of current 8 taxes actually collected and apportioned for the rural county 9 services basic levy to the total rural county services basic 10 levy for the current year and an amount equivalent to the 11 moneys derived by the rural services fund from military service 12 tax credits under chapter 426A , manufactured or mobile home 13 taxes under section 435.22 , and delinquent taxes for prior 14 years collected and apportioned to the rural county services 15 basic fund in the current year, multiplied by the ratio of 16 three dollars and three-eighths cents to three dollars and 17 ninety-five cents. The limit on transfers in this paragraph 18 applies only to property tax revenue and is not a limit on 19 transfers of revenue generated from sources other than property 20 taxes. 21 Sec. 18. Section 331.434, unnumbered paragraph 1, Code 22 2019, is amended to read as follows: 23 Annually, the board of each county, subject to section 24 331.403, subsection 4 , sections 331.423 through 331.426 25 331.424C , and other applicable state law, shall prepare and 26 adopt a budget, certify taxes, and provide appropriations as 27 follows: 28 Sec. 19. Section 331.434, subsection 7, Code 2019, is 29 amended to read as follows: 30 7. Taxes levied by a county whose budget is certified after 31 March 15 shall be limited to the prior year’s budget amount. 32 However, this penalty may be waived by the director of the 33 department of management if the county demonstrates that the 34 March 15 deadline was missed because of circumstances beyond 35 -12- LSB 1563HV (3) 88 md/jh 12/ 30

H.F. 773 the control of the county or as the result of an election held 1 under section 331.424 . 2 Sec. 20. Section 364.25, Code 2019, is amended to read as 3 follows: 4 364.25 Retiree health care. 5 A city may provide health or medical insurance coverage or 6 supplemental health or medical insurance coverage to retired 7 employees of the city. A city providing health or medical 8 insurance coverage pursuant to this section may establish such 9 requirements or restrictions concerning the coverage provided 10 as the city may adopt. If coverage is provided, the cost of the 11 health or medical insurance coverage may be paid from moneys 12 held in a trust and agency fund established pursuant to section 13 384.6 , or out of an appropriation from the city general fund 14 for this purpose. 15 Sec. 21. Section 331.435, unnumbered paragraph 1, Code 16 2019, is amended to read as follows: 17 The board may amend the adopted county budget, subject to 18 sections 331.423 through 331.426 331.424C and other applicable 19 state law, to permit increases in any class of proposed 20 expenditures contained in the budget summary published under 21 section 331.434, subsection 3 . 22 Sec. 22. Section 373.10, Code 2019, is amended to read as 23 follows: 24 373.10 Taxing authority. 25 The metropolitan council shall have the authority to 26 levy city taxes to the extent the city tax levy authority 27 is transferred by the charter to the metropolitan council. 28 A member city shall transfer a portion of the city’s tax 29 levy authorized under section 384.1 or 384.12 , whichever is 30 applicable, to the metropolitan council. The maximum rates 31 amount of taxes authorized to be levied under sections section 32 384.1 and the taxes authorized to be levied under section 33 384.12 by a member city shall be reduced by an amount equal to 34 the rates of the same or similar taxes levied in the city by the 35 -13- LSB 1563HV (3) 88 md/jh 13/ 30

H.F. 773 metropolitan council. 1 Sec. 23. Section 384.1, Code 2019, is amended by striking 2 the section and inserting in lieu thereof the following: 3 384.1 Property tax dollars —— maximum. 4 1. A city shall certify taxes to be levied by the city 5 on all taxable property within the city limits, for all city 6 government purposes. Annually, the city council may certify 7 a basic levy for city government purposes, subject to the 8 limitation on property tax dollars provided in this section. 9 2. For purposes of this section, unless the context 10 otherwise requires: 11 a. “Annual growth factor” means one hundred two percent. 12 b. “Boundary adjustment” means annexation, severance, 13 incorporation, or discontinuance as those terms are defined in 14 section 368.1. 15 c. “Budget year” is the fiscal year beginning during the 16 calendar year in which a budget is certified. 17 d. “Current fiscal year” is the fiscal year ending during 18 the calendar year in which a budget is certified. 19 e. “Net new valuation taxes” means the amount of property 20 tax dollars equal to the current fiscal year’s levy rate in the 21 city for the general fund plus, for the fiscal year beginning 22 July 1, 2020, only, the levy rates in the city under sections 23 384.6 and 384.8, Code 2019, multiplied by the net increase from 24 the current fiscal year to the budget year in taxable valuation 25 due to the following, the amount of each as certified by the 26 county auditor to the department of management by January 27 1 preceding the applicable fiscal year, excluding amounts 28 attributable to a valuation release: 29 (1) New construction. 30 (2) Additions or improvements to existing structures that 31 are not normal and necessary repairs under section 441.21, 32 subsection 8. 33 (3) Net boundary adjustment. 34 (4) A municipality no longer dividing tax revenues in an 35 -14- LSB 1563HV (3) 88 md/jh 14/ 30

H.F. 773 urban renewal area as provided in section 403.19 or a community 1 college no longer dividing revenues as provided in section 2 260E.4. 3 (5) That portion of taxable property located in an urban 4 revitalization area on which an exemption was allowed and such 5 exemption has expired. 6 (6) New exemptions for existing properties and the 7 expiration or removal of property exemptions. 8 f. “Valuation release” means the valuation that is released 9 in any one year from either a division of revenue under section 10 260E.4 or an urban renewal area for which taxes were being 11 divided under section 403.19 if the property for the valuation 12 being released remains subject to the division of revenue under 13 section 260E.4 or remains part of the urban renewal area that 14 is subject to a division of revenue under section 403.19. 15 3. a. For the fiscal year beginning July 1, 2020, and 16 subsequent fiscal years, the maximum amount of property 17 tax dollars which may be certified for levy by a city for 18 the general fund shall be the maximum property tax dollars 19 calculated under paragraph “b” . The amount of property tax 20 dollars calculated under this subsection and determined under 21 subsection 4 includes those amounts received by the city as 22 replacement taxes under chapter 437A or 437B. 23 b. The maximum property tax dollars that may be levied for 24 deposit in the general fund is an amount equal to the sum of the 25 following: 26 (1) The annual growth factor times the current fiscal year’s 27 actual property tax dollars certified for levy for the general 28 fund. 29 (2) The amount of net new valuation taxes in the city. 30 (3) The amount of the additions approved under section 31 384.12A for the budget year, if applicable. 32 4. a. For purposes of calculating maximum property tax 33 dollars for the city general fund for the fiscal year beginning 34 July 1, 2020, only, the term “current fiscal year’s actual 35 -15- LSB 1563HV (3) 88 md/jh 15/ 30

H.F. 773 property tax dollars” shall mean the sum of the total amount 1 of property tax dollars certified by the city for the city’s 2 general fund plus the total amount of property tax dollars 3 certified for the city’s trust and agency fund under section 4 384.6, subsection 1, Code 2019, for the city’s emergency fund 5 under section 384.8, Code 2019, and for the levies authorized 6 under section 384.12, subsections 8, 10, 11, 12, 13, and 17, 7 Code 2019, for the fiscal year beginning July 1, 2018, or the 8 fiscal year beginning July 1, 2019, whichever is greater. 9 b. For purposes of calculating maximum property tax dollars 10 for a fiscal year beginning on or after July 1, 2021, a city 11 for which the city’s taxes were not certified back by the 12 department of management under section 24.17 for the current 13 fiscal year due to an act or omission of the city, the current 14 fiscal year’s actual property tax dollars certified for levy 15 shall be equal to the amount certified for levy for the fiscal 16 year immediately preceding the current fiscal year or the 17 amount under paragraph “a” , if applicable. 18 5. Property taxes certified for a unified law enforcement 19 district under chapter 28E, subchapter II, deposit in the debt 20 service fund in section 384.4, capital improvements reserve 21 fund in section 384.7, any capital projects fund established 22 by the city for deposit of bond, loan, or note proceeds, and 23 property taxes collected from a levy in section 384.12, are not 24 counted against the maximum amount of property tax dollars that 25 may be certified for a fiscal year under subsection 3. 26 6. Notwithstanding the maximum amount of taxes a city 27 may certify for levy, the tax levied by a city on tracts of 28 land and improvements on the tracts of land used and assessed 29 for agricultural or horticultural purposes shall not exceed 30 three dollars and three-eighths cents per thousand dollars 31 of assessed value in any year. Improvements located on such 32 tracts of land and not used for agricultural or horticultural 33 purposes and all residential dwellings are subject to the same 34 rate of tax levied by the city on all other taxable property 35 -16- LSB 1563HV (3) 88 md/jh 16/ 30

H.F. 773 within the city. 1 7. The department of management, in consultation with the 2 city finance committee, shall adopt rules to administer this 3 section. The department shall prescribe forms to be used by 4 cities when making calculations required by this section. 5 Sec. 24. NEW SECTION . 384.1A Ending fund balance. 6 1. a. Budgeted ending fund balances for a budget year in 7 excess of twenty-five percent of budgeted expenditures from the 8 general fund for that budget year shall be nonspendable or be 9 restricted, committed, or assigned for a specific purpose. 10 b. In a protest to the city budget under section 384.19, 11 the city shall have the burden of proving that the budgeted 12 balances in excess of twenty-five percent are reasonably likely 13 to be appropriated for the restricted, committed, or assigned 14 specific purpose. The excess budgeted balance for the specific 15 purpose shall be considered an increase in an item in the 16 budget for purposes of section 24.28. 17 2. a. For a city that has, as of June 30, 2019, reduced its 18 ending fund balance to less than twenty-five percent of actual 19 expenditures, additional property taxes may be computed and 20 levied as provided in this subsection. The additional property 21 tax levy amount is an amount not to exceed the difference 22 between twenty-five percent of actual expenditures for city 23 government purposes for the fiscal year beginning July 1, 2018, 24 minus the ending fund balance for that year. 25 b. All or a portion of additional property tax dollars 26 may be levied for the purpose of increasing cash reserves for 27 city government purposes in the budget year. The additional 28 property tax dollars authorized under this subsection but not 29 levied may be carried forward as unused ending fund balance 30 taxing authority until and for the fiscal year beginning 31 July 1, 2025. The amount carried forward shall not exceed 32 twenty-five percent of the maximum amount of property tax 33 dollars available in the current fiscal year. Additionally, 34 property taxes that are levied as unused ending fund balance 35 -17- LSB 1563HV (3) 88 md/jh 17/ 30

H.F. 773 taxing authority under this subsection may be the subject of a 1 protest under section 384.19, and the amount will be considered 2 an increase in an item in the budget for purposes of section 3 24.28. The amount of additional property tax dollars levied 4 under this subsection shall not be included in the computation 5 of the maximum amount of property tax dollars which may be 6 certified and levied under section 384.1. 7 Sec. 25. Section 384.3, Code 2019, is amended to read as 8 follows: 9 384.3 General fund. 10 All moneys received for city government purposes from 11 taxes and other sources must be credited to the general fund 12 of the city, except that moneys received for the purposes 13 of the debt service fund, the trust and agency funds, the 14 capital improvements reserve fund, the emergency fund and other 15 funds established by state law must be deposited as otherwise 16 required or authorized by state law. All moneys received by 17 a city from the federal government must be reported to the 18 department of management who shall transmit a copy to the 19 legislative services agency. 20 Sec. 26. NEW SECTION . 384.3B Employee benefits and 21 retirement contributions —— city general fund. 22 A city may include within the city’s basic levy for city 23 government purposes, an amount necessary, subject to the 24 limitation on property tax dollars in section 384.1, property 25 taxes for the following purposes, with such taxes accounted for 26 as provided by the city finance committee: 27 1. Pension and related benefits of the city’s employees. 28 2. A city may make contributions to a retirement system 29 other than the Iowa public employees’ retirement system for 30 its city manager, or city administrator performing the duties 31 of city manager, in an annual amount not to exceed the amount 32 that would have been contributed by the employer under section 33 97B.11. 34 3. If a police chief or fire chief has submitted a 35 -18- LSB 1563HV (3) 88 md/jh 18/ 30

H.F. 773 written request to the board of trustees to be exempt from 1 chapter 411, authorized in section 411.3, subsection 1, a 2 city shall make contributions for the chief, in an amount 3 not to exceed the amount that would have been contributed by 4 the city under section 411.8, subsection 1, paragraph “a” , 5 to the international city management association retirement 6 corporation. 7 4. A city which has contracted with another city or 8 governmental entity for the provision of public safety 9 services, including but not limited to police protection, 10 fire protection, ambulance, or hazardous materials response, 11 may, pursuant to contract, make contributions for pension and 12 related employee benefits for personnel of the other city or 13 governmental entity providing such services to the city. The 14 city may make such contributions in an annual amount not to 15 exceed the amount of contributions for pension and related 16 employee benefits that would otherwise be paid by the other 17 city or governmental entity for such personnel. 18 Sec. 27. Section 384.6, Code 2019, is amended to read as 19 follows: 20 384.6 Trust and agency funds. 21 A city may establish trust and agency funds for the following 22 purposes: 23 1. Accounting for pension and related employee benefit 24 funds as provided by the city finance committee. A city may 25 certify taxes to be levied for a trust and agency fund in the 26 amount necessary to meet its obligations. 27 a. A city may make contributions to a retirement system 28 other than the Iowa public employees’ retirement system for 29 its city manager, or city administrator performing the duties 30 of city manager, in an annual amount not to exceed the amount 31 that would have been contributed by the employer under section 32 97B.11 . 33 b. If a police chief or fire chief has submitted a 34 written request to the board of trustees to be exempt from 35 -19- LSB 1563HV (3) 88 md/jh 19/ 30

H.F. 773 chapter 411 , authorized in section 411.3, subsection 1 , a 1 city shall make contributions for the chief, in an amount 2 not to exceed the amount that would have been contributed by 3 the city under section 411.8, subsection 1 , paragraph “a” , 4 to the international city management association retirement 5 corporation. 6 c. A city which has contracted with another city or 7 governmental entity for the provision of public safety 8 services, including but not limited to police protection, 9 fire protection, ambulance, or hazardous materials response, 10 may, pursuant to contract, make contributions for pension and 11 related employee benefits for personnel of the other city or 12 governmental entity providing such services to the city. The 13 city may make such contributions in an annual amount not to 14 exceed the amount of contributions for pension and related 15 employee benefits that would otherwise be paid by the other 16 city or governmental entity for such personnel. 17 2. 1. Accounting for gifts received by the city for a 18 particular purpose. 19 3. 2. Accounting for money and property received and 20 handled by the city as trustee or custodian or in the capacity 21 of an agent. 22 Sec. 28. Section 384.12, subsections 8, 10, 11, 12, 13, and 23 17, Code 2019, are amended by striking the subsections. 24 Sec. 29. NEW SECTION . 384.12A Authority to levy beyond 25 maximum property tax dollars. 26 1. a. The city council may, by resolution and subject to 27 the petition and election provisions of this section, annually 28 certify additions to the maximum amount of property tax dollars 29 to be levied pursuant to section 384.1, subsection 3, paragraph 30 “b” , subparagraph (3), if the city council publishes notice 31 of the proposed action, including a statement of the amount 32 and purpose of the proposed additions, the requirements and 33 deadlines for filing a petition under paragraph “b” , the 34 resulting consequences and processes if a petition is filed 35 -20- LSB 1563HV (3) 88 md/jh 20/ 30

H.F. 773 under paragraph “b” , and the time and place of a public meeting 1 at which the city council proposes to take action on the 2 proposal. At the meeting, the council shall receive oral or 3 written objections from any resident or property owner of the 4 city. After all objections have been received and considered, 5 the council may, following twenty days after the meeting and 6 subject to paragraph “b” , take action on the proposal or abandon 7 the proposal. A resolution under this section approving 8 additions to the maximum amount of property tax dollars must be 9 effective not later than January 31 preceding the fiscal year 10 for which the addition is applicable. 11 b. If, at any time within twenty days after the meeting 12 under paragraph “a” , a petition is filed with the city clerk 13 signed by eligible electors of the city equal in number to the 14 lesser of two thousand or twenty percent of the persons in the 15 city who voted for the office of president of the United States 16 at the last preceding general election that had such office on 17 the ballot, but not less than ten eligible electors, asking 18 that the question of levying an additional amount be submitted 19 to the registered voters of the city, the city council shall 20 either by resolution declare the proposal to be abandoned or 21 shall direct the county commissioner of elections to call a 22 special election upon the question. If, however, a valid 23 petition is filed under this section and the notice requirement 24 of subsection 2, paragraph “a” , cannot be satisfied, the council 25 shall declare the proposal to be abandoned. 26 2. The special election, if called, may be held on a Tuesday 27 other than the dates specified in section 39.2, subsection 4, 28 paragraph “b” , but not later than the second Tuesday in March 29 and is subject to the following: 30 a. The city council must give at least thirty-two days’ 31 notice to the county commissioner of elections that the special 32 election is to be held. In no case, however, shall a notice be 33 given to the county commissioner of elections after January 31 34 for an election on a proposition to exceed the statutory limits 35 -21- LSB 1563HV (3) 88 md/jh 21/ 30

H.F. 773 during the fiscal year beginning following the current fiscal 1 year. 2 b. The proposition submitted to voters may propose authority 3 for the city council to certify additions to the maximum amount 4 of property tax dollars for up to two fiscal years. The 5 proposition is approved if it receives a favorable majority of 6 the votes cast on the proposition. 7 c. The proposition to be submitted shall be substantially 8 in the following form: 9 Vote “yes” or “no” on the following: 10 Shall the city of ........ levy for an additional $ ... each 11 year for ... years beginning next July 1, .... , in excess of 12 the statutory limits otherwise applicable for the city general 13 fund? 14 d. The canvass shall be held beginning at 1:00 p.m. on 15 the second day which is not a holiday following the special 16 election. 17 e. Notice of the special election shall be published at 18 least once in a newspaper as specified in section 362.3 prior 19 to the date of the special election. The notice shall appear 20 as early as practicable after the city council has voted to 21 submit a proposition to the voters to levy additional property 22 tax dollars. 23 Sec. 30. Section 384.15, subsection 1, Code 2019, is amended 24 to read as follows: 25 1. Promulgate rules relating to budget amendments and the 26 procedures for transferring moneys between funds, and other 27 rules necessary or desirable in order to exercise its powers 28 and perform its duties, including rules necessary to implement 29 section 384.6, subsection 1 384.3B . The committee’s rules are 30 subject to chapter 17A as applicable. 31 Sec. 31. Section 384.16, subsection 6, Code 2019, is amended 32 to read as follows: 33 6. Taxes levied by a city whose budget is certified after 34 March 15 shall be limited to the prior year’s budget amount. 35 -22- LSB 1563HV (3) 88 md/jh 22/ 30

H.F. 773 However, this penalty may be waived by the director of the 1 department of management if the city demonstrates that the 2 March 15 deadline was missed because of circumstances beyond 3 the control of the city or as the result of an election held 4 under section 384.12A . 5 Sec. 32. Section 384.18, subsection 1, paragraph c, Code 6 2019, is amended to read as follows: 7 c. To permit transfers from the debt service fund, the 8 capital improvements reserve fund, the emergency fund, or other 9 funds established by state law, to any other city fund, unless 10 specifically prohibited by state law. 11 Sec. 33. Section 384.19, Code 2019, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 5. For purposes of a tax protest filed 14 under this section and in accordance with the provisions of 15 chapter 24, “item” means a budgeted expenditure, appropriation, 16 or cash reserve from a fund for a service area, program, 17 program element, or purpose. 18 Sec. 34. Section 384.110, Code 2019, is amended to read as 19 follows: 20 384.110 Insurance, self-insurance, and risk pooling funds. 21 A city may credit funds to a fund or funds for the purposes 22 authorized by section 364.4, subsection 5 ; section 384.12, 23 subsection 17 ; or section 384.24, subsection 3 , paragraph “s” . 24 Moneys credited to the fund or funds, and interest earned on 25 such moneys, shall remain in the fund or funds until expended 26 for purposes authorized by section 364.4, subsection 5 ; 27 section 384.12, subsection 17 ; or section 384.24, subsection 28 3 , paragraph “s” . 29 Sec. 35. Section 386.8, Code 2019, is amended to read as 30 follows: 31 386.8 Operation tax. 32 A city may establish a self-supported improvement district 33 operation fund, and may certify taxes not to exceed the 34 rate limitation as established in the ordinance creating the 35 -23- LSB 1563HV (3) 88 md/jh 23/ 30

H.F. 773 district, or any amendment thereto, each year to be levied 1 for the fund against all of the property in the district, 2 for the purpose of paying the administrative expenses of 3 the district, which may include but are not limited to 4 administrative personnel salaries, a separate administrative 5 office, planning costs including consultation fees, engineering 6 fees, architectural fees, and legal fees and all other expenses 7 reasonably associated with the administration of the district 8 and the fulfilling of the purposes of the district. The taxes 9 levied for this fund may also be used for the purpose of paying 10 maintenance expenses of improvements or self-liquidating 11 improvements for a specified length of time with one or more 12 options to renew if such is clearly stated in the petition 13 which requests the council to authorize construction of the 14 improvement or self-liquidating improvement, whether or not 15 such petition is combined with the petition requesting creation 16 of a district. Parcels of property which are assessed as 17 residential property for property tax purposes are exempt from 18 the tax levied under this section except residential properties 19 within a duly designated historic district. A tax levied under 20 this section is not subject to the levy limitation in section 21 384.1 . 22 Sec. 36. Section 386.9, Code 2019, is amended to read as 23 follows: 24 386.9 Capital improvement tax. 25 A city may establish a capital improvement fund for a 26 district and may certify taxes, not to exceed the rate 27 established by the ordinance creating the district, or any 28 subsequent amendment thereto, each year to be levied for 29 the fund against all of the property in the district, for 30 the purpose of accumulating moneys for the financing or 31 payment of a part or all of the costs of any improvement or 32 self-liquidating improvement. However, parcels of property 33 which are assessed as residential property for property tax 34 purposes are exempt from the tax levied under this section 35 -24- LSB 1563HV (3) 88 md/jh 24/ 30

H.F. 773 except residential properties within a duly designated historic 1 district. A tax levied under this section is not subject to 2 the levy limitations in section 384.1 or 384.7 . 3 Sec. 37. Section 400.8, subsection 1, Code 2019, is amended 4 to read as follows: 5 1. The commission, when necessary under the rules, 6 including minimum and maximum age limits, which shall be 7 prescribed and published in advance by the commission and 8 posted in the city hall, shall hold examinations for the 9 purpose of determining the qualifications of applicants 10 for positions under civil service, other than promotions, 11 which examinations shall be practical in character and shall 12 relate to matters which will fairly test the mental and 13 physical ability of the applicant to discharge the duties of 14 the position to which the applicant seeks appointment. The 15 physical examination of applicants for appointment to the 16 positions of police officer, police matron, or fire fighter 17 shall be held in accordance with medical protocols established 18 by the board of trustees of the fire and police retirement 19 system established by section 411.5 and shall be conducted 20 in accordance with the directives of the board of trustees. 21 However, the prohibitions of section 216.6, subsection 1 , 22 paragraph “d” , regarding tests for the presence of the antibody 23 to the human immunodeficiency virus shall not apply to such 24 examinations. The board of trustees may change the medical 25 protocols at any time the board so determines. In the event of 26 a conflict between the medical protocols established under this 27 section and the minimum entrance requirements of the Iowa law 28 enforcement academy under section 80B.11 , the medical protocols 29 established under this section shall control. The physical 30 examination of an applicant for the position of police officer, 31 police matron, or fire fighter shall be conducted after a 32 conditional offer of employment has been made to the applicant. 33 An applicant shall not be discriminated against on the basis 34 of height, weight, sex, or race in determining physical or 35 -25- LSB 1563HV (3) 88 md/jh 25/ 30

H.F. 773 mental ability of the applicant. Reasonable rules relating to 1 strength, agility, and general health of applicants shall be 2 prescribed. The costs of the physical examination required 3 under this subsection shall be paid from the trust and agency 4 general fund of the city. 5 Sec. 38. Section 411.6, subsection 5, paragraph b, Code 6 2019, is amended to read as follows: 7 b. If a member in service or the chief of the police or 8 fire departments becomes incapacitated for duty as a natural 9 or proximate result of an injury or disease incurred in or 10 aggravated by the actual performance of duty at some definite 11 time or place or while acting, pursuant to order, outside the 12 city by which the member is regularly employed, the member, 13 upon being found to be temporarily incapacitated following a 14 medical examination as directed by the city, is entitled to 15 receive the member’s full pay and allowances from the city’s 16 general fund or trust and agency fund until reexamined as 17 directed by the city and found to be fully recovered or until 18 the city determines that the member is likely to be permanently 19 disabled. If the temporary incapacity of a member continues 20 more than sixty days, or if the city expects the incapacity 21 to continue more than sixty days, the city shall notify the 22 system of the temporary incapacity. Upon notification by a 23 city, the system may refer the matter to the medical board for 24 review and consultation with the member’s treating physician 25 during the temporary incapacity. Except as provided by this 26 paragraph, the board of trustees of the statewide system has no 27 jurisdiction over these matters until the city determines that 28 the disability is likely to be permanent. 29 Sec. 39. Section 411.15, Code 2019, is amended to read as 30 follows: 31 411.15 Hospitalization and medical attention. 32 Cities shall provide hospital, nursing, and medical 33 attention for the members of the police and fire departments 34 of the cities, when injured while in the performance of their 35 -26- LSB 1563HV (3) 88 md/jh 26/ 30

H.F. 773 duties as members of such department, and shall continue to 1 provide hospital, nursing, and medical attention for injuries 2 or diseases incurred while in the performance of their duties 3 for members receiving a retirement allowance under section 4 411.6, subsection 6 . Cities may fund the cost of the hospital, 5 nursing, and medical attention required by this section through 6 the purchase of insurance, by self-insuring the obligation, or 7 through payment of moneys into a local government risk pool 8 established for the purpose of covering the costs associated 9 with the requirements of this section . However, the cost of 10 the hospital, nursing, and medical attention required by this 11 section shall not be funded through an employee-paid health 12 insurance policy. The cost of the hospital, nursing, and 13 medical attention required by this section shall be paid from 14 moneys held in a trust and agency fund established pursuant 15 to section 384.6 , the city’s general fund or out of the 16 appropriation for the department to which the injured person 17 belongs or belonged; provided that any amounts received by 18 the injured person from any other source for such specific 19 purposes, shall be deducted from the amount paid by the city 20 under the provisions of this section . 21 Sec. 40. REPEAL. Sections 331.425, 331.426, and 384.8, Code 22 2019, are repealed. 23 Sec. 41. APPLICABILITY. This Act applies to fiscal years 24 beginning on or after July 1, 2020. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill removes the property tax levy rate limitations on 29 the general and rural funds for counties and on the general 30 fund for cities and substitutes a limitation on the maximum 31 amount of property tax dollars that may be certified for levy 32 by a county or city for those funds for fiscal years beginning 33 on or after July 1, 2020. For the fiscal year beginning July 34 1, 2020, and subsequent fiscal years, the maximum amount of 35 -27- LSB 1563HV (3) 88 md/jh 27/ 30

H.F. 773 property tax dollars which may be certified for levy shall be 1 an amount equal to the sum of the following: (1) the current 2 fiscal year’s actual property tax dollars certified by the 3 county or city multiplied by the annual growth factor, defined 4 in the bill to be 102 percent; (2) the amount of net new 5 valuation taxes, as defined in the bill; and (3) the amount of 6 additions to the levy approved by resolution of the governing 7 body of the city or county, subject to a voter referendum, if 8 the referendum is requested by a petition signed by a specified 9 amount of electors. 10 Property taxes certified for mental health and disabilities 11 services in Code section 331.424A, a unified law enforcement 12 district under Code chapter 28E, the emergency services fund in 13 Code section 331.424C, the debt service fund in Code section 14 331.430, and any capital projects fund established by the 15 county for deposit of bond, loan, or note proceeds, are not 16 counted against the maximum amount of property tax dollars that 17 may be certified for levy by a county. 18 Property taxes certified for a unified law enforcement 19 district under Code chapter 28E, deposit in the debt service 20 fund in Code section 384.4, capital improvements reserve fund 21 in Code section 384.7, any capital projects fund established 22 by the city for deposit of bond, loan, or note proceeds, and 23 property taxes collected from a levy in Code section 384.12, 24 as amended in the bill, are not counted against the maximum 25 amount of property tax dollars that may be certified for levy 26 by a city. 27 The bill establishes an amount to be used by each county 28 or city, as applicable, in order to calculate the maximum 29 property tax dollars that may be certified for the fiscal year 30 beginning July 1, 2020. For counties, that amount includes the 31 total amount of property tax dollars certified by the county 32 for general county services or for rural county services, 33 as applicable, including those amounts certified under Code 34 section 331.424, Code 2019 (supplemental levies). For cities, 35 -28- LSB 1563HV (3) 88 md/jh 28/ 30

H.F. 773 that amount includes the sum of the total amount of property 1 tax dollars certified by the city for the city’s general fund 2 plus the total amount of property tax dollars certified for 3 the city’s trust and agency fund under Code section 384.6, 4 subsection 1, Code 2019, for the city’s emergency fund under 5 Code section 384.8, Code 2019, and for the levies authorized 6 under Code section 384.12, subsections 8, 10, 11, 12, 13, and 7 17, Code 2019. 8 The bill also provides that the city’s employee benefits 9 expenditures, currently levied as part of the city’s trust and 10 agency funds under Code section 384.6, shall be levied for 11 under new Code section 384.3B and are subject to the limitation 12 on property tax dollars established in the bill. 13 The bill specifies certain requirements for ending fund 14 balances for counties and cities. The bill provides that 15 budgeted ending fund balances in certain specified funds for a 16 budget year in excess of 25 percent of budgeted expenditures 17 shall be nonspendable or be restricted, committed, or assigned 18 for a specific purpose. 19 In a protest to the county or city budget, the county 20 or city, as applicable, has the burden of proving that the 21 budgeted balances in excess of 25 percent are reasonably likely 22 to be appropriated for the restricted, committed, or assigned 23 specific purpose. 24 The bill also allows for additional property taxes to be 25 levied in certain fiscal years for those counties or cities 26 that have, as of June 30, 2019, reduced their actual ending 27 fund balance to less than 25 percent of actual expenditures. 28 Such additional property tax dollars authorized but not levied 29 may be carried forward as unused ending fund balance taxing 30 authority until and for the fiscal year beginning July 1, 2025. 31 However, the amount carried forward shall not exceed 25 percent 32 of the maximum amount of property tax dollars available in the 33 current fiscal year. The amount of such additional property 34 taxes levied shall not, however, be included in the computation 35 -29- LSB 1563HV (3) 88 md/jh 29/ 30