House Study Bill 714 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE) A BILL FOR An Act relating to county and city finances by amending 1 provisions relating to the issuance of bonds and authorizing 2 counties to establish and levy for a capital improvement 3 reserve fund. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6193YC (3) 89 md/jh

H.F. _____ Section 1. NEW SECTION . 331.430A Capital improvements 1 reserve fund. 2 1. A county may establish a capital improvements reserve 3 fund, and may certify taxes not to exceed sixty-seven and 4 one-half cents per thousand dollars of taxable value each year 5 to be levied for the fund for the purpose of accumulating 6 moneys for the financing of specified capital improvements, or 7 carrying out a specific capital improvement plan. 8 2. The question of the establishment of a capital 9 improvements reserve fund, the time period during which a levy 10 will be made for the fund, and the tax rate to be levied for the 11 fund is subject to approval by the voters, and may be submitted 12 at any general election upon the board’s motion, or shall be 13 submitted at the next general election upon receipt of a valid 14 petition as provided in section 331.306. 15 3. If a continuing capital improvements levy is established 16 by election, such levy may be terminated in the same manner, 17 upon the board’s motion or upon petition. Balances in a 18 capital improvements reserve fund are not unencumbered or 19 unappropriated funds for the purpose of reducing tax levies. 20 Transfers may be made between the capital improvements reserve 21 fund, construction funds, and the general fund, as provided in 22 rules promulgated by the committee. 23 Sec. 2. Section 331.442, subsection 2, paragraph a, Code 24 2022, is amended to read as follows: 25 a. The board shall publish notice of the proposal to issue 26 the bonds, including a statement of the amount and purpose of 27 the bonds and a statement of the estimated cost of the project 28 for which the bonds are to be issued . The notice shall be 29 published as provided in section 331.305 with the minutes of 30 the meeting at which the board adopts a resolution to call a 31 county special election to vote upon the question of issuing 32 the bonds. The cost of the project, as published in the notice 33 pursuant to this paragraph, is an estimate and is not intended 34 to be binding on the board in later proceedings related to the 35 -1- LSB 6193YC (3) 89 md/jh 1/ 5

H.F. _____ project. 1 Sec. 3. Section 331.442, subsection 5, paragraph a, 2 subparagraphs (1), (2), and (3), Code 2022, are amended to read 3 as follows: 4 (1) In counties having a population of twenty thousand or 5 less, in an amount of not more than one four hundred thousand 6 dollars. 7 (2) In counties having a population of over twenty thousand 8 and not over fifty thousand, in an amount of not more than two 9 seven hundred thousand dollars. 10 (3) In counties having a population of over fifty thousand, 11 in an amount of not more than three hundred thousand one 12 million dollars. 13 Sec. 4. Section 331.443, subsection 3, paragraph a, Code 14 2022, is amended to read as follows: 15 a. Notwithstanding subsection 2 , a board may institute 16 proceedings for the issuance of bonds for an essential county 17 purpose specified in section 331.441, subsection 2 , paragraph 18 “b” , subparagraph (18) or (19), in an amount equal to or 19 greater than three five million dollars by causing a notice 20 of the proposal to issue the bonds, including a statement of 21 the amount and purpose of the bonds, together with the maximum 22 rate of interest which the bonds are to bear, and the right 23 to petition for an election, to be published at least once in 24 a newspaper of general circulation within the county at least 25 ten days prior to the meeting at which it is proposed to take 26 action for the issuance of the bonds. 27 Sec. 5. Section 384.25, subsection 3, paragraph a, Code 28 2022, is amended to read as follows: 29 a. Notwithstanding subsection 2 , a council may institute 30 proceedings for the issuance of bonds for an essential 31 corporate purpose specified in section 384.24, subsection 3 , 32 paragraph “w” or “x” , in an amount equal to or greater than 33 three five million dollars by causing a notice of the proposal 34 to issue the bonds, including a statement of the amount 35 -2- LSB 6193YC (3) 89 md/jh 2/ 5

H.F. _____ and purpose of the bonds, together with the maximum rate of 1 interest which the bonds are to bear, and the right to petition 2 for an election, to be published at least once in a newspaper 3 of general circulation within the city at least ten days prior 4 to the meeting at which it is proposed to take action for the 5 issuance of the bonds. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to county and city finances by amending 10 provisions relating to the issuance of bonds and authorizing 11 counties to establish and levy for a capital improvement 12 reserve fund. 13 The bill authorizes a county to establish a capital 14 improvements reserve fund, and may certify taxes not to exceed 15 67.5 cents per $1,000 of taxable value each year to be levied 16 for the fund for the purpose of accumulating moneys for the 17 financing of specified capital improvements, or carrying out a 18 specific capital improvement plan. The authorization of the 19 fund and levy are similar to those authorized for cities under 20 Code section 384.7. The question of the establishment of a 21 capital improvements reserve fund, the time period during which 22 a levy will be made for the fund, and the tax rate to be levied 23 for the fund is subject to approval by the voters, and may be 24 submitted at any general election upon the board’s motion, or 25 shall be submitted at the next general election upon receipt of 26 a valid petition. Termination of the levy is done in the same 27 manner as the authorization. 28 When a county proposes to issue general county purpose 29 bonds, Code section 331.442(2) requires the board of 30 supervisors to publish a notice of the proposal to issue 31 the bonds, including a statement of the amount and purpose 32 of the bonds and a statement of the estimated cost of the 33 project for which the bonds are to be issued. The bill strikes 34 the requirement that the notice include a statement of the 35 -3- LSB 6193YC (3) 89 md/jh 3/ 5

H.F. _____ estimated cost of the project for which the bonds are to be 1 issued. 2 If a county proposes to carry out a general county purpose 3 using funds from the issuance of general obligation bonds, 4 generally the issuance of such bonds must first be approved by 5 the registered voters of the county. Current law establishes 6 an exception by providing that a county, in lieu of calling 7 an election, may institute proceedings for the issuance of 8 bonds for a general county purpose by notice and publication 9 of the proposal to issue the bonds that includes a notice of 10 the right to petition for an election, subject to the following 11 bond amount and county population limitations: (1) in counties 12 having a population of 20,000 or less, in an amount of not 13 more than $100,000; (2) in counties having a population of 14 over 20,000 and not over 50,000, in an amount of not more than 15 $200,000; and (3) in counties having a population of over 16 50,000, in an amount of not more than $300,000. However, if 17 at any time before the date fixed for taking action for the 18 issuance of the bonds, a valid petition is filed with the 19 county auditor asking that the question of issuing the bonds 20 be submitted to the registered voters of the county, the board 21 of supervisors shall either by resolution declare the proposal 22 to issue the bonds to have been abandoned or shall direct the 23 county commissioner of elections to call a special election 24 upon the question of issuing the bonds. 25 The bill increases the bond amount limitations for each of 26 the county population categories to the following amounts: (1) 27 in counties having a population of 20,000 or less, in an amount 28 of not more than $400,000; (2) in counties having a population 29 of over 20,000 and not over 50,000, in an amount of not more 30 than $700,000; and (3) in counties having a population of over 31 50,000, in an amount of not more than $1 million. 32 The bill amends the provisions governing the issuance of 33 essential county purpose bonds and essential corporate purpose 34 bonds for purposes relating to the remediation, restoration, 35 -4- LSB 6193YC (3) 89 md/jh 4/ 5

H.F. _____ repair, cleanup, replacement, and improvement of property, 1 buildings, equipment, and public facilities that have been 2 damaged by a disaster and that are located in a specified 3 disaster area. The bill increases the minimum threshold amount 4 of bonds for such purposes from $3 million to $5 million. 5 -5- LSB 6193YC (3) 89 md/jh 5/ 5