House File 88 - Introduced HOUSE FILE 88 BY JACOBY A BILL FOR An Act relating to city finances by amending provisions 1 relating to the issuance of general obligation bonds. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1599YH (2) 90 md/jh

H.F. 88 Section 1. Section 384.26, subsection 5, paragraph a, Code 1 2023, is amended to read as follows: 2 a. Notwithstanding the provisions of subsection 2 , a council 3 may, in lieu of calling an election, institute proceedings 4 for the issuance of bonds for a general corporate purpose by 5 causing a notice of the proposal to issue the bonds, including 6 a statement of the amount and purpose of the bonds, together 7 with the maximum rate of interest which the bonds are to bear, 8 and the right to petition for an election, to be published at 9 least once in a newspaper of general circulation within the 10 city at least ten days prior to the meeting at which it is 11 proposed to take action for the issuance of the bonds subject 12 to the following population-based limitations , adjusted and 13 published annually in January by the department of management 14 by applying the percentage change in the consumer price 15 index for all urban consumers for the most recent available 16 twelve-month period published in the federal register by the 17 United States department of labor, bureau of labor statistics : 18 (1) In cities having a population of five thousand or less, 19 in an amount of not more than four eight hundred thousand 20 dollars. 21 (2) In cities having a population of more than five thousand 22 and not more than seventy-five thousand, in an amount of not 23 more than seven one million four hundred thousand dollars. 24 (3) In cities having a population in excess of seventy-five 25 thousand, in an amount of not more than one two million 26 dollars. 27 Sec. 2. Section 384.26, subsection 5, Code 2023, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . 0b. Each city’s population used to determine 30 the limitations of paragraph “a” shall be determined using the 31 most recent population estimate produced by the United States 32 census bureau. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -1- LSB 1599YH (2) 90 md/jh 1/ 3

H.F. 88 the explanation’s substance by the members of the general assembly. 1 This bill relates to city finances by amending provisions 2 relating to the issuance of general obligation bonds. 3 If a city proposes to carry out a general corporate purpose 4 using funds from the issuance of general obligation bonds, 5 generally the issuance of such bonds must first be approved at 6 election. Current law establishes an exception by providing 7 that a city, in lieu of calling an election, may institute 8 proceedings for the issuance of bonds for a general municipal 9 purpose by notice and publication of the proposal to issue 10 the bonds that includes a notice of the right to petition for 11 an election, subject to the following bond amount and city 12 population limitations: (1) in cities having a population 13 of 5,000 or less, in an amount of not more than $400,000; 14 (2) in cities having a population of over 5,000 and not over 15 75,000, in an amount of not more than $700,000; and (3) in 16 cities having a population of over 75,000, in an amount of 17 not more than $1 million. However, if at any time before the 18 date fixed for taking action for the issuance of the bonds, a 19 valid petition is filed asking that the question of issuing the 20 bonds be submitted to the registered voters of the city, the 21 city council 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 city population categories to the following amounts: (1) 27 in counties having a population of 5,000 or less, in an amount 28 of not more than $800,000; (2) in cities having a population 29 of over 5,000 and not over 75,000, in an amount of not more 30 than $1.4 million; and (3) in cities having a population of 31 over 75,000, in an amount of not more than $2 million. In 32 addition, the bill provides for such bond amount limitations 33 to be adjusted and published annually by the department of 34 management based on a specified consumer price index and 35 -2- LSB 1599YH (2) 90 md/jh 2/ 3

H.F. 88 requires each city’s population to be determined based on the 1 most recent population estimate produced by the United States 2 census bureau. 3 -3- LSB 1599YH (2) 90 md/jh 3/ 3