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House File 773 - IntroducedA Bill ForAn Act 1establishing budget limitations for counties and cities
2and including applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 23A.2, subsection 10, paragraph h, Code
22019, is amended to read as follows:
3h. The performance of an activity listed in section 331.424,
4Code 2019, as a service for which a supplemental levy county
5 may be certified include in its budget.
6 Sec. 2. Section 28M.5, subsections 1 and 2, Code 2019, are
7amended to read as follows:
81. The commission, with the approval of the board of
9supervisors of participating counties and the city council
10of participating cities in the chapter 28E agreement, may
11levy annually a tax not to exceed ninety-five cents per
12thousand dollars of the assessed value of all taxable property
13in a regional transit district to the extent provided in
14this section. The chapter 28E agreement may authorize the
15commission to levy the tax at different rates within the
16participating cities and counties in amounts sufficient to meet
17the revenue responsibilities of such cities and counties as
18allocated in the budget adopted by the commission. However,
19for a city participating in a regional transit district, the
20total of all the tax levies imposed in the city pursuant
21to section 384.12, subsection 10, and this section shall
22not exceed the aggregate of ninety-five cents per thousand
23dollars of the assessed value of all taxable property in the
24participating city.
252. If a regional transit district budget allocates
26revenue responsibilities to the board of supervisors of a
27participating county, the amount of the regional transit
28district levy that is the responsibility of the participating
29county shall be deducted from the maximum rates amount of taxes
30authorized to be levied by the county pursuant to section
31331.423, subsections 1 and 2 subsection 3, paragraphs “b”
32 and “c”, as applicable, unless the county meets its revenue
33responsibilities as allocated in the budget from other
34available revenue sources. However, for a regional transit
35district that includes a county with a population of less than
-1-1three hundred thousand, the amount of the regional transit
2district levy that is the responsibility of such participating
3county shall be deducted from the maximum rate amount of taxes
4authorized to be levied by the county pursuant to section
5331.423, subsection 1 3, paragraph “b”.
6 Sec. 3. Section 29C.17, subsection 2, paragraph a, Code
72019, is amended by striking the paragraph.
8 Sec. 4. Section 123.38, subsection 2, paragraph b, Code
92019, is amended to read as follows:
10b. For purposes of this subsection, any portion of license
11or permit fees used for the purposes authorized in section
12331.424, subsection 1, paragraph “a”, subparagraphs (1) and
13(2), Code 2019, and in section 331.424A, shall not be deemed
14received either by the division or by a local authority.
15 Sec. 5. Section 218.99, Code 2019, is amended to read as
16follows:
17218.99 Counties to be notified of patients’ personal
18accounts.
19The administrator in control of a state institution shall
20direct the business manager of each institution under the
21administrator’s jurisdiction which is mentioned in section
22331.424, subsection 1, paragraph “a”, subparagraphs (1) and
23(2), and for which services are paid under section 331.424A,
24to quarterly inform the county of residence of any patient or
25resident who has an amount in excess of two hundred dollars on
26account in the patients’ personal deposit fund and the amount
27on deposit. The administrators shall direct the business
28manager to further notify the county of residence at least
29fifteen days before the release of funds in excess of two
30hundred dollars or upon the death of the patient or resident.
31If the patient or resident has no residency in this state or
32the person’s residency is unknown, notice shall be made to the
33director of human services and the administrator in control of
34the institution involved.
35 Sec. 6. Section 331.263, subsection 2, Code 2019, is amended
-2-1to read as follows:
22. The governing body of the community commonwealth
3shall have the authority to levy county taxes and shall
4have the authority to levy city taxes to the extent the
5city tax levy authority is transferred by the charter to
6the community commonwealth. A city participating in the
7community commonwealth shall transfer a portion of the
8city’s tax levy authorized under section 384.1 or 384.12,
9whichever is applicable, to the governing body of the community
10commonwealth. The maximum rates amount of taxes authorized to
11be levied under sections section 384.1 and the maximum amount
12of taxes authorized to be levied under section384.12 by a city
13participating in the community commonwealth shall be reduced
14by an amount equal to the rates of the same or similar taxes
15levied in the city by the governing body of the community
16commonwealth.
17 Sec. 7. Section 331.301, subsection 12, Code 2019, is
18amended to read as follows:
1912. The board of supervisors may credit funds to a reserve
20for the purposes authorized by subsection 11 of this section;
21section 331.424, subsection 1, paragraph “a”, subparagraph
22(5); and section 331.441, subsection 2, paragraph “b”. Moneys
23credited to the reserve, and interest earned on such moneys,
24shall remain in the reserve until expended for purposes
25authorized by subsection 11 of this section; section 331.424,
26subsection 1, paragraph “a”, subparagraph (5); or section
27331.441, subsection 2, paragraph “b”.
28 Sec. 8. Section 331.421, subsections 1 and 10, Code 2019,
29are amended by striking the subsections.
30 Sec. 9. Section 331.421, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 7A. “Item” means, in accordance
33with protests under chapter 24, a budgeted expenditure,
34appropriation, or cash reserve from a fund for a service area,
35program, program element, or purpose.
-3-1 Sec. 10. Section 331.422, unnumbered paragraph 1, Code
22019, is amended to read as follows:
3Subject to this section and sections 331.423 through 331.426
4 331.424C or as otherwise provided by state law, the board of
5each county shall certify property taxes annually at its March
6session to be levied for county purposes as follows:
7 Sec. 11. Section 331.423, Code 2019, is amended by striking
8the section and inserting in lieu thereof the following:
9331.423 Property tax dollars — maximums.
101. Annually, the board shall determine separate property
11tax levy limits to pay for general county services and rural
12county services in accordance with this section. The property
13tax levies separately certified for general county services and
14rural county services under section 331.434 shall not raise
15property tax dollars that exceed the amounts determined under
16this section.
172. For purposes of this section, unless the context
18otherwise requires:
19a. “Annual growth factor” means one hundred two percent.
20b. “Boundary adjustment” means annexation, severance,
21incorporation, or discontinuance as those terms are defined in
22section 368.1.
23c. “Budget year” is the fiscal year beginning during the
24calendar year in which a budget is certified.
25d. “Current fiscal year” is the fiscal year ending during
26the calendar year in which a budget is certified.
27e. “Net new valuation taxes” means the amount of property
28tax dollars equal to the current fiscal year’s levy rate in
29the county for general county services or for rural county
30services, as applicable, multiplied by the net increase from
31the current fiscal year to the budget year in taxable valuation
32due to the following, the amount of each as certified by the
33county auditor to the department of management by January
341 preceding the applicable fiscal year, excluding amounts
35attributable to a valuation release:
-4- 1(1) New construction.
2(2) Additions or improvements to existing structures that
3are not normal and necessary repairs under section 441.21,
4subsection 8.
5(3) Net boundary adjustment.
6(4) A municipality no longer dividing tax revenues in an
7urban renewal area as provided in section 403.19 or a community
8college no longer dividing revenues as provided in section
9260E.4.
10(5) That portion of taxable property located in an urban
11revitalization area on which an exemption was allowed and such
12exemption has expired.
13(6) New exemptions for existing properties and the
14expiration or removal of property exemptions.
15f. “Valuation release” means the valuation that is released
16in any one year from either a division of revenue under section
17260E.4 or an urban renewal area for which taxes were being
18divided under section 403.19 if the property for the valuation
19being released remains subject to the division of revenue under
20section 260E.4 or remains part of the urban renewal area that
21is subject to a division of revenue under section 403.19.
223. a. For the fiscal year beginning July 1, 2020, and
23subsequent fiscal years, the maximum amount of property tax
24dollars which may be certified for levy by a county for general
25county services and rural county services shall be the maximum
26property tax dollars calculated under paragraphs “b” and “c”,
27respectively. The amount of property tax dollars calculated
28under this subsection and determined under subsection 4
29includes those amounts received by the county as replacement
30taxes under chapter 437A or 437B.
31b. The maximum property tax dollars that may be levied for
32general county services is an amount equal to the sum of the
33following:
34(1) The annual growth factor times the current fiscal year’s
35actual property tax dollars certified for levy for general
-5-1county services.
2(2) The amount of net new valuation taxes in the county.
3(3) The amount of the additions for general county services
4approved under section 331.424 for the budget year, if
5applicable.
6c. The maximum property tax dollars that may be levied for
7rural county services is an amount equal to the sum of the
8following:
9(1) The annual growth factor times the current fiscal year’s
10actual property tax dollars certified for levy for rural county
11services.
12(2) The amount of net new valuation taxes in the
13unincorporated area of the county.
14(3) The amount of the additions for rural county services
15approved under section 331.424 for the budget year, if
16applicable.
174. a. For purposes of calculating maximum property tax
18dollars for general county services for the fiscal year
19beginning July 1, 2020, only, the term “current fiscal year’s
20actual property tax dollars” shall mean the total amount of
21property tax dollars certified by the county for general county
22services for the fiscal year beginning July 1, 2019, or the
23fiscal year beginning July 1, 2018, whichever is greater,
24including amounts certified under section 331.424, subsection
251, Code 2019.
26b. For purposes of calculating maximum property tax dollars
27for rural county services for the fiscal year beginning July
281, 2020, only, the term “current fiscal year’s actual property
29tax dollars” shall mean the total amount of property tax
30dollars certified by the county for rural county services for
31the fiscal year beginning July 1, 2019, or the fiscal year
32beginning July 1, 2018, whichever is greater, including amounts
33certified under section 331.424, subsection 2, Code 2019.
34c. For purposes of calculating maximum property tax dollars
35for a fiscal year beginning on or after July 1, 2021, a county
-6-1for which the county’s taxes were not certified back by the
2department of management under section 24.17 for the current
3fiscal year due to an act or omission of the county, the
4current fiscal year’s actual property tax dollars certified for
5levy shall be equal to the amount certified for levy for the
6fiscal year immediately preceding the current fiscal year or
7the amount under paragraph “a” or “b”, if applicable.
85. Property taxes certified for mental health and
9disabilities services in section 331.424A, a unified law
10enforcement district under chapter 28E, subchapter II,
11the emergency services fund in section 331.424C, the debt
12service fund in section 331.430, and any capital projects
13fund established by the county for deposit of bond, loan, or
14note proceeds, are not counted against the maximum amount of
15property tax dollars that may be certified for a budget year
16under subsection 3.
176. The department of management, in consultation with the
18county finance committee, shall adopt rules to administer this
19section. The department shall prescribe forms to be used by
20counties when making calculations required by this section.
21 Sec. 12. NEW SECTION. 331.423A Ending fund balance.
221. a. Budgeted ending fund balances for a budget year
23in excess of twenty-five percent of budgeted expenditures in
24either the general fund or rural services fund for that budget
25year shall be nonspendable or be restricted, committed, or
26assigned for a specific purpose.
27b. In a protest to the county budget under section 331.436,
28the county shall have the burden of proving that the budgeted
29balances in excess of twenty-five percent are reasonably likely
30to be appropriated for the restricted, committed, or assigned
31specific purpose. The excess budgeted balance for the specific
32purpose shall be considered an increase in an item in the
33budget for purposes of section 24.28.
342. a. For a county that has, as of June 30, 2019, reduced
35its actual ending fund balance to less than twenty-five
-7-1percent of actual expenditures, additional property taxes may
2be computed and levied as provided in this subsection. The
3additional property tax levy amount is an amount not to exceed
4twenty-five percent of actual expenditures from the general
5fund and rural services fund for the fiscal year beginning July
61, 2018, minus the combined ending fund balances for those
7funds for that year.
8b. The amount of the additional property taxes shall be
9apportioned between the general fund and the rural services
10fund. However, the amount apportioned for general county
11services and for rural county services shall not exceed for
12each fund twenty-five percent of actual expenditures for the
13fiscal year beginning July 1, 2018.
14c. All or a portion of additional property tax dollars
15may be levied for the purpose of increasing cash reserves
16for general county services and rural county services in the
17budget year. The additional property tax dollars authorized
18under this subsection but not levied may be carried forward as
19unused ending fund balance taxing authority until and for the
20fiscal year beginning July 1, 2025. The amount carried forward
21shall not exceed twenty-five percent of the maximum amount of
22property tax dollars available in the current fiscal year.
23Additionally, property taxes that are levied as unused ending
24fund balance taxing authority under this subsection may be the
25subject of a protest under section 331.436, and the amount
26will be considered an increase in an item in the budget for
27purposes of section 24.28. The amount of additional property
28taxes levied under this subsection shall not be included in the
29computation of the maximum amount of property tax dollars which
30may be certified and levied under section 331.423.
31 Sec. 13. Section 331.424, Code 2019, is amended by striking
32the section and inserting in lieu thereof the following:
33331.424 Authority to levy beyond maximum property tax
34dollars.
351. a. The board may, by resolution and subject to the
-8-1petition and election provisions of this section, annually
2certify additions to the maximum amount of property tax
3dollars to be levied pursuant to section 331.423, subsection 3,
4paragraph “b”, subparagraph (3), or section 331.423, subsection
53, paragraph “c”, subparagraph (3), if the board publishes the
6notice of the proposed action, including a statement of the
7amount and purpose of the proposed additions, the requirements
8and deadlines for filing a petition under paragraph “b”, the
9resulting consequences and processes if a petition is filed
10under paragraph “b”, and the time and place of a public meeting
11at which the board proposes to take action on the proposal. At
12the meeting, the board shall receive oral or written objections
13from any resident or property owner of the county. After
14all objections have been received and considered, the board
15may, following twenty days after the meeting and subject to
16paragraph “b”, take action on the proposal or abandon the
17proposal. A resolution under this section approving additions
18to the maximum amount of property tax dollars must be effective
19not later than January 31 preceding the fiscal year for which
20the addition is applicable.
21b. If at any time within twenty days after the meeting under
22paragraph “a”, a petition is filed with the county auditor
23signed by eligible electors of the county equal in number to
24the lesser of two thousand or twenty percent of the persons in
25the county who voted for the office of president of the United
26States at the last preceding general election that had such
27office on the ballot, but not less than ten eligible electors,
28asking that the question of levying an additional amount be
29submitted to the registered voters of the county, the board
30shall either by resolution declare the proposal to be abandoned
31or shall direct the county commissioner of elections to call
32a special election upon the question. If, however, a valid
33petition is filed under this section and the notice requirement
34of subsection 2, paragraph “a”, cannot be satisfied, the board
35shall declare the proposal to be abandoned.
-9- 12. The special election, if called, may be held on a Tuesday
2other than the dates specified in section 39.2, subsection 4,
3paragraph “a”, but not later than the second Tuesday in March
4and is subject to the following:
5a. The board must give at least thirty-two days’ notice to
6the county commissioner of elections that the special election
7is to be held. In no case, however, shall a notice be given to
8the county commissioner of elections after January 31 for an
9election on a proposition to exceed the statutory limits during
10the fiscal year beginning following the current fiscal year.
11b. The proposition submitted to voters may propose authority
12for the board to certify additions to the maximum amount
13of property tax dollars for up to two fiscal years. The
14proposition is approved if it receives a favorable majority of
15the votes cast on the proposition.
16c. The proposition to be submitted shall be substantially
17in the following form:
18Vote “yes” or “no” on the following:
19Shall the county of levy for an additional $each
20year for years beginning July 1, , in excess of the
21statutory limits otherwise applicable for the (general county
22services or rural services) fund?
23d. The canvass shall be held beginning at 1:00 p.m.on
24the second day which is not a holiday following the special
25election.
26e. Notice of the special election shall be published at
27least once in a newspaper as specified in section 331.305 prior
28to the date of the special election. The notice shall appear
29as early as practicable after the board has voted to submit
30a proposition to the voters to levy additional property tax
31dollars.
323. Registered voters in the county may vote on the
33proposition to increase property taxes for the general fund
34in excess of the statutory limit. Registered voters residing
35outside the corporate limits of a city within the county may
-10-1vote on the proposition to increase property taxes for the
2rural services fund in excess of the statutory limit.
3 Sec. 14. Section 331.424A, subsection 6, Code 2019, is
4amended to read as follows:
56. For each fiscal year, the county shall certify a levy
6for payment of services. For each fiscal year, county revenues
7from taxes imposed by the county credited to the county
8services fund shall not exceed an amount equal to the county
9budgeted amount for the fiscal year. A levy certified under
10this section is not subject to the appeal provisions of section
11331.426or to any other provision in law authorizing a county
12to exceed, increase, or appeal a property tax levy limit.
13 Sec. 15. Section 331.427, subsection 3, paragraph l, Code
142019, is amended to read as follows:
15l. Services listed in section 331.424, subsection 1, Code
162019, and section 331.554.
17 Sec. 16. Section 331.428, subsection 2, paragraph d, Code
182019, is amended to read as follows:
19d. Services listed under section 331.424, subsection 2, Code
202019.
21 Sec. 17. Section 331.429, subsection 1, paragraphs a and b,
22Code 2019, are amended to read as follows:
23a. Transfers from the general fund not to exceed in any year
24the dollar equivalent of a tax of sixteen and seven-eighths
25cents per thousand dollars of assessed value on all taxable
26property in the county multiplied by the ratio of current
27taxes actually collected and apportioned for the general basic
28 county services levy to the total general basic county services
29 levy for the current year, and an amount equivalent to the
30moneys derived by the general fund from military service tax
31credits under chapter 426A, manufactured or mobile home taxes
32under section 435.22, and delinquent taxes for prior years
33collected and apportioned to the general basic county services
34 fund in the current year, multiplied by the ratio of sixteen
35and seven-eighths cents to three dollars and fifty cents.
-11-1The limit on transfers in this paragraph applies only to
2property tax revenue and is not a limit on transfers of revenue
3generated from sources other than property taxes.
4b. Transfers from the rural services fund not to exceed in
5any year the dollar equivalent of a tax of three dollars and
6three-eighths cents per thousand dollars of assessed value on
7all taxable property not located within the corporate limits
8of a city in the county multiplied by the ratio of current
9taxes actually collected and apportioned for the rural county
10 services basic levy to the total rural county services basic
11 levy for the current year and an amount equivalent to the
12moneys derived by the rural services fund from military service
13tax credits under chapter 426A, manufactured or mobile home
14taxes under section 435.22, and delinquent taxes for prior
15years collected and apportioned to the rural county services
16basic fund in the current year, multiplied by the ratio of
17three dollars and three-eighths cents to three dollars and
18ninety-five cents. The limit on transfers in this paragraph
19applies only to property tax revenue and is not a limit on
20transfers of revenue generated from sources other than property
21taxes.
22 Sec. 18. Section 331.434, unnumbered paragraph 1, Code
232019, is amended to read as follows:
24Annually, the board of each county, subject to section
25331.403, subsection 4, sections 331.423 through 331.426
26 331.424C, and other applicable state law, shall prepare and
27adopt a budget, certify taxes, and provide appropriations as
28follows:
29 Sec. 19. Section 331.434, subsection 7, Code 2019, is
30amended to read as follows:
317. Taxes levied by a county whose budget is certified after
32March 15 shall be limited to the prior year’s budget amount.
33However, this penalty may be waived by the director of the
34department of management if the county demonstrates that the
35March 15 deadline was missed because of circumstances beyond
-12-1the control of the county or as the result of an election held
2under section 331.424.
3 Sec. 20. Section 364.25, Code 2019, is amended to read as
4follows:
5364.25 Retiree health care.
6A city may provide health or medical insurance coverage or
7supplemental health or medical insurance coverage to retired
8employees of the city. A city providing health or medical
9insurance coverage pursuant to this section may establish such
10requirements or restrictions concerning the coverage provided
11as the city may adopt. If coverage is provided, the cost of the
12health or medical insurance coverage may be paid from moneys
13held in a trust and agency fund established pursuant to section
14384.6, or out of an appropriation from the city general fund
15for this purpose.
16 Sec. 21. Section 331.435, unnumbered paragraph 1, Code
172019, is amended to read as follows:
18The board may amend the adopted county budget, subject to
19sections 331.423 through 331.426 331.424C and other applicable
20state law, to permit increases in any class of proposed
21expenditures contained in the budget summary published under
22section 331.434, subsection 3.
23 Sec. 22. Section 373.10, Code 2019, is amended to read as
24follows:
25373.10 Taxing authority.
26The metropolitan council shall have the authority to
27levy city taxes to the extent the city tax levy authority
28is transferred by the charter to the metropolitan council.
29A member city shall transfer a portion of the city’s tax
30levy authorized under section 384.1 or 384.12, whichever is
31applicable, to the metropolitan council. The maximum rates
32 amount of taxes authorized to be levied under sections section
33 384.1 and the taxes authorized to be levied under section
34 384.12 by a member city shall be reduced by an amount equal to
35the rates of the same or similar taxes levied in the city by the
-13-1metropolitan council.
2 Sec. 23. Section 384.1, Code 2019, is amended by striking
3the section and inserting in lieu thereof the following:
4384.1 Property tax dollars — maximum.
51. A city shall certify taxes to be levied by the city
6on all taxable property within the city limits, for all city
7government purposes. Annually, the city council may certify
8a basic levy for city government purposes, subject to the
9limitation on property tax dollars provided in this section.
102. For purposes of this section, unless the context
11otherwise requires:
12a. “Annual growth factor” means one hundred two percent.
13b. “Boundary adjustment” means annexation, severance,
14incorporation, or discontinuance as those terms are defined in
15section 368.1.
16c. “Budget year” is the fiscal year beginning during the
17calendar year in which a budget is certified.
18d. “Current fiscal year” is the fiscal year ending during
19the calendar year in which a budget is certified.
20e. “Net new valuation taxes” means the amount of property
21tax dollars equal to the current fiscal year’s levy rate in the
22city for the general fund plus, for the fiscal year beginning
23July 1, 2020, only, the levy rates in the city under sections
24384.6 and 384.8, Code 2019, multiplied by the net increase from
25the current fiscal year to the budget year in taxable valuation
26due to the following, the amount of each as certified by the
27county auditor to the department of management by January
281 preceding the applicable fiscal year, excluding amounts
29attributable to a valuation release:
30(1) New construction.
31(2) Additions or improvements to existing structures that
32are not normal and necessary repairs under section 441.21,
33subsection 8.
34(3) Net boundary adjustment.
35(4) A municipality no longer dividing tax revenues in an
-14-1urban renewal area as provided in section 403.19 or a community
2college no longer dividing revenues as provided in section
3260E.4.
4(5) That portion of taxable property located in an urban
5revitalization area on which an exemption was allowed and such
6exemption has expired.
7(6) New exemptions for existing properties and the
8expiration or removal of property exemptions.
9f. “Valuation release” means the valuation that is released
10in any one year from either a division of revenue under section
11260E.4 or an urban renewal area for which taxes were being
12divided under section 403.19 if the property for the valuation
13being released remains subject to the division of revenue under
14section 260E.4 or remains part of the urban renewal area that
15is subject to a division of revenue under section 403.19.
163. a. For the fiscal year beginning July 1, 2020, and
17subsequent fiscal years, the maximum amount of property
18tax dollars which may be certified for levy by a city for
19the general fund shall be the maximum property tax dollars
20calculated under paragraph “b”. The amount of property tax
21dollars calculated under this subsection and determined under
22subsection 4 includes those amounts received by the city as
23replacement taxes under chapter 437A or 437B.
24b. The maximum property tax dollars that may be levied for
25deposit in the general fund is an amount equal to the sum of the
26following:
27(1) The annual growth factor times the current fiscal year’s
28actual property tax dollars certified for levy for the general
29fund.
30(2) The amount of net new valuation taxes in the city.
31(3) The amount of the additions approved under section
32384.12A for the budget year, if applicable.
334. a. For purposes of calculating maximum property tax
34dollars for the city general fund for the fiscal year beginning
35July 1, 2020, only, the term “current fiscal year’s actual
-15-1property tax dollars” shall mean the sum of the total amount
2of property tax dollars certified by the city for the city’s
3general fund plus the total amount of property tax dollars
4certified for the city’s trust and agency fund under section
5384.6, subsection 1, Code 2019, for the city’s emergency fund
6under section 384.8, Code 2019, and for the levies authorized
7under section 384.12, subsections 8, 10, 11, 12, 13, and 17,
8Code 2019, for the fiscal year beginning July 1, 2018, or the
9fiscal year beginning July 1, 2019, whichever is greater.
10b. For purposes of calculating maximum property tax dollars
11for a fiscal year beginning on or after July 1, 2021, a city
12for which the city’s taxes were not certified back by the
13department of management under section 24.17 for the current
14fiscal year due to an act or omission of the city, the current
15fiscal year’s actual property tax dollars certified for levy
16shall be equal to the amount certified for levy for the fiscal
17year immediately preceding the current fiscal year or the
18amount under paragraph “a”, if applicable.
195. Property taxes certified for a unified law enforcement
20district under chapter 28E, subchapter II, deposit in the debt
21service fund in section 384.4, capital improvements reserve
22fund in section 384.7, any capital projects fund established
23by the city for deposit of bond, loan, or note proceeds, and
24property taxes collected from a levy in section 384.12, are not
25counted against the maximum amount of property tax dollars that
26may be certified for a fiscal year under subsection 3.
276. Notwithstanding the maximum amount of taxes a city
28may certify for levy, the tax levied by a city on tracts of
29land and improvements on the tracts of land used and assessed
30for agricultural or horticultural purposes shall not exceed
31three dollars and three-eighths cents per thousand dollars
32of assessed value in any year. Improvements located on such
33tracts of land and not used for agricultural or horticultural
34purposes and all residential dwellings are subject to the same
35rate of tax levied by the city on all other taxable property
-16-1within the city.
27. The department of management, in consultation with the
3city finance committee, shall adopt rules to administer this
4section. The department shall prescribe forms to be used by
5cities when making calculations required by this section.
6 Sec. 24. NEW SECTION. 384.1A Ending fund balance.
71. a. Budgeted ending fund balances for a budget year in
8excess of twenty-five percent of budgeted expenditures from the
9general fund for that budget year shall be nonspendable or be
10restricted, committed, or assigned for a specific purpose.
11b. In a protest to the city budget under section 384.19,
12the city shall have the burden of proving that the budgeted
13balances in excess of twenty-five percent are reasonably likely
14to be appropriated for the restricted, committed, or assigned
15specific purpose. The excess budgeted balance for the specific
16purpose shall be considered an increase in an item in the
17budget for purposes of section 24.28.
182. a. For a city that has, as of June 30, 2019, reduced its
19ending fund balance to less than twenty-five percent of actual
20expenditures, additional property taxes may be computed and
21levied as provided in this subsection. The additional property
22tax levy amount is an amount not to exceed the difference
23between twenty-five percent of actual expenditures for city
24government purposes for the fiscal year beginning July 1, 2018,
25minus the ending fund balance for that year.
26b. All or a portion of additional property tax dollars
27may be levied for the purpose of increasing cash reserves for
28city government purposes in the budget year. The additional
29property tax dollars authorized under this subsection but not
30levied may be carried forward as unused ending fund balance
31taxing authority until and for the fiscal year beginning
32July 1, 2025. The amount carried forward shall not exceed
33twenty-five percent of the maximum amount of property tax
34dollars available in the current fiscal year. Additionally,
35property taxes that are levied as unused ending fund balance
-17-1taxing authority under this subsection may be the subject of a
2protest under section 384.19, and the amount will be considered
3an increase in an item in the budget for purposes of section
424.28. The amount of additional property tax dollars levied
5under this subsection shall not be included in the computation
6of the maximum amount of property tax dollars which may be
7certified and levied under section 384.1.
8 Sec. 25. Section 384.3, Code 2019, is amended to read as
9follows:
10384.3 General fund.
11All moneys received for city government purposes from
12taxes and other sources must be credited to the general fund
13of the city, except that moneys received for the purposes
14of the debt service fund, the trust and agency funds, the
15capital improvements reserve fund, the emergency fund and other
16funds established by state law must be deposited as otherwise
17required or authorized by state law. All moneys received by
18a city from the federal government must be reported to the
19department of management who shall transmit a copy to the
20legislative services agency.
21 Sec. 26. NEW SECTION. 384.3B Employee benefits and
22retirement contributions — city general fund.
23A city may include within the city’s basic levy for city
24government purposes, an amount necessary, subject to the
25limitation on property tax dollars in section 384.1, property
26taxes for the following purposes, with such taxes accounted for
27as provided by the city finance committee:
281. Pension and related benefits of the city’s employees.
292. A city may make contributions to a retirement system
30other than the Iowa public employees’ retirement system for
31its city manager, or city administrator performing the duties
32of city manager, in an annual amount not to exceed the amount
33that would have been contributed by the employer under section
3497B.11.
353. If a police chief or fire chief has submitted a
-18-1written request to the board of trustees to be exempt from
2chapter 411, authorized in section 411.3, subsection 1, a
3city shall make contributions for the chief, in an amount
4not to exceed the amount that would have been contributed by
5the city under section 411.8, subsection 1, paragraph “a”,
6to the international city management association retirement
7corporation.
84. A city which has contracted with another city or
9governmental entity for the provision of public safety
10services, including but not limited to police protection,
11fire protection, ambulance, or hazardous materials response,
12may, pursuant to contract, make contributions for pension and
13related employee benefits for personnel of the other city or
14governmental entity providing such services to the city. The
15city may make such contributions in an annual amount not to
16exceed the amount of contributions for pension and related
17employee benefits that would otherwise be paid by the other
18city or governmental entity for such personnel.
19 Sec. 27. Section 384.6, Code 2019, is amended to read as
20follows:
21384.6 Trust and agency funds.
22A city may establish trust and agency funds for the following
23purposes:
241. Accounting for pension and related employee benefit
25funds as provided by the city finance committee. A city may
26certify taxes to be levied for a trust and agency fund in the
27amount necessary to meet its obligations.
28a. A city may make contributions to a retirement system
29other than the Iowa public employees’ retirement system for
30its city manager, or city administrator performing the duties
31of city manager, in an annual amount not to exceed the amount
32that would have been contributed by the employer under section
3397B.11.
34b. If a police chief or fire chief has submitted a
35written request to the board of trustees to be exempt from
-19-1chapter 411, authorized in section 411.3, subsection 1, a
2city shall make contributions for the chief, in an amount
3not to exceed the amount that would have been contributed by
4the city under section 411.8, subsection 1, paragraph “a”,
5to the international city management association retirement
6corporation.
7c. A city which has contracted with another city or
8governmental entity for the provision of public safety
9services, including but not limited to police protection,
10fire protection, ambulance, or hazardous materials response,
11may, pursuant to contract, make contributions for pension and
12related employee benefits for personnel of the other city or
13governmental entity providing such services to the city. The
14city may make such contributions in an annual amount not to
15exceed the amount of contributions for pension and related
16employee benefits that would otherwise be paid by the other
17city or governmental entity for such personnel.
182. 1. Accounting for gifts received by the city for a
19particular purpose.
203. 2. Accounting for money and property received and
21handled by the city as trustee or custodian or in the capacity
22of an agent.
23 Sec. 28. Section 384.12, subsections 8, 10, 11, 12, 13, and
2417, Code 2019, are amended by striking the subsections.
25 Sec. 29. NEW SECTION. 384.12A Authority to levy beyond
26maximum property tax dollars.
271. a. The city council may, by resolution and subject to
28the petition and election provisions of this section, annually
29certify additions to the maximum amount of property tax dollars
30to be levied pursuant to section 384.1, subsection 3, paragraph
31“b”, subparagraph (3), if the city council publishes notice
32of the proposed action, including a statement of the amount
33and purpose of the proposed additions, the requirements and
34deadlines for filing a petition under paragraph “b”, the
35resulting consequences and processes if a petition is filed
-20-1under paragraph “b”, and the time and place of a public meeting
2at which the city council proposes to take action on the
3proposal. At the meeting, the council shall receive oral or
4written objections from any resident or property owner of the
5city. After all objections have been received and considered,
6the council may, following twenty days after the meeting and
7subject to paragraph “b”, take action on the proposal or abandon
8the proposal. A resolution under this section approving
9additions to the maximum amount of property tax dollars must be
10effective not later than January 31 preceding the fiscal year
11for which the addition is applicable.
12b. If, at any time within twenty days after the meeting
13under paragraph “a”, a petition is filed with the city clerk
14signed by eligible electors of the city equal in number to the
15lesser of two thousand or twenty percent of the persons in the
16city who voted for the office of president of the United States
17at the last preceding general election that had such office on
18the ballot, but not less than ten eligible electors, asking
19that the question of levying an additional amount be submitted
20to the registered voters of the city, the city council shall
21either by resolution declare the proposal to be abandoned or
22shall direct the county commissioner of elections to call a
23special election upon the question. If, however, a valid
24petition is filed under this section and the notice requirement
25of subsection 2, paragraph “a”, cannot be satisfied, the council
26shall declare the proposal to be abandoned.
272. The special election, if called, may be held on a Tuesday
28other than the dates specified in section 39.2, subsection 4,
29paragraph “b”, but not later than the second Tuesday in March
30and is subject to the following:
31a. The city council must give at least thirty-two days’
32notice to the county commissioner of elections that the special
33election is to be held. In no case, however, shall a notice be
34given to the county commissioner of elections after January 31
35for an election on a proposition to exceed the statutory limits
-21-1during the fiscal year beginning following the current fiscal
2year.
3b. The proposition submitted to voters may propose authority
4for the city council to certify additions to the maximum amount
5of property tax dollars for up to two fiscal years. The
6proposition is approved if it receives a favorable majority of
7the votes cast on the proposition.
8c. The proposition to be submitted shall be substantially
9in the following form:
10Vote “yes” or “no” on the following:
11Shall the city of levy for an additional $each
12year for years beginning next July 1, , in excess of
13the statutory limits otherwise applicable for the city general
14fund?
15d. The canvass shall be held beginning at 1:00 p.m.on
16the second day which is not a holiday following the special
17election.
18e. Notice of the special election shall be published at
19least once in a newspaper as specified in section 362.3 prior
20to the date of the special election. The notice shall appear
21as early as practicable after the city council has voted to
22submit a proposition to the voters to levy additional property
23tax dollars.
24 Sec. 30. Section 384.15, subsection 1, Code 2019, is amended
25to read as follows:
261. Promulgate rules relating to budget amendments and the
27procedures for transferring moneys between funds, and other
28rules necessary or desirable in order to exercise its powers
29and perform its duties, including rules necessary to implement
30section 384.6, subsection 1 384.3B. The committee’s rules are
31subject to chapter 17A as applicable.
32 Sec. 31. Section 384.16, subsection 6, Code 2019, is amended
33to read as follows:
346. Taxes levied by a city whose budget is certified after
35March 15 shall be limited to the prior year’s budget amount.
-22-1However, this penalty may be waived by the director of the
2department of management if the city demonstrates that the
3March 15 deadline was missed because of circumstances beyond
4the control of the city or as the result of an election held
5under section 384.12A.
6 Sec. 32. Section 384.18, subsection 1, paragraph c, Code
72019, is amended to read as follows:
8c. To permit transfers from the debt service fund, the
9capital improvements reserve fund, the emergency fund, or other
10funds established by state law, to any other city fund, unless
11specifically prohibited by state law.
12 Sec. 33. Section 384.19, Code 2019, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 5. For purposes of a tax protest filed
15under this section and in accordance with the provisions of
16chapter 24, “item” means a budgeted expenditure, appropriation,
17or cash reserve from a fund for a service area, program,
18program element, or purpose.
19 Sec. 34. Section 384.110, Code 2019, is amended to read as
20follows:
21384.110 Insurance, self-insurance, and risk pooling funds.
22A city may credit funds to a fund or funds for the purposes
23authorized by section 364.4, subsection 5; section 384.12,
24subsection 17; or section 384.24, subsection 3, paragraph “s”.
25Moneys credited to the fund or funds, and interest earned on
26such moneys, shall remain in the fund or funds until expended
27for purposes authorized by section 364.4, subsection 5;
28section 384.12, subsection 17; or section 384.24, subsection
293, paragraph “s”.
30 Sec. 35. Section 386.8, Code 2019, is amended to read as
31follows:
32386.8 Operation tax.
33A city may establish a self-supported improvement district
34operation fund, and may certify taxes not to exceed the
35rate limitation as established in the ordinance creating the
-23-1district, or any amendment thereto, each year to be levied
2for the fund against all of the property in the district,
3for the purpose of paying the administrative expenses of
4the district, which may include but are not limited to
5administrative personnel salaries, a separate administrative
6office, planning costs including consultation fees, engineering
7fees, architectural fees, and legal fees and all other expenses
8reasonably associated with the administration of the district
9and the fulfilling of the purposes of the district. The taxes
10levied for this fund may also be used for the purpose of paying
11maintenance expenses of improvements or self-liquidating
12improvements for a specified length of time with one or more
13options to renew if such is clearly stated in the petition
14which requests the council to authorize construction of the
15improvement or self-liquidating improvement, whether or not
16such petition is combined with the petition requesting creation
17of a district. Parcels of property which are assessed as
18residential property for property tax purposes are exempt from
19the tax levied under this section except residential properties
20within a duly designated historic district. A tax levied under
21this section is not subject to the levy limitation in section
22384.1.
23 Sec. 36. Section 386.9, Code 2019, is amended to read as
24follows:
25386.9 Capital improvement tax.
26A city may establish a capital improvement fund for a
27district and may certify taxes, not to exceed the rate
28established by the ordinance creating the district, or any
29subsequent amendment thereto, each year to be levied for
30the fund against all of the property in the district, for
31the purpose of accumulating moneys for the financing or
32payment of a part or all of the costs of any improvement or
33self-liquidating improvement. However, parcels of property
34which are assessed as residential property for property tax
35purposes are exempt from the tax levied under this section
-24-1except residential properties within a duly designated historic
2district. A tax levied under this section is not subject to
3the levy limitations in section 384.1 or 384.7.
4 Sec. 37. Section 400.8, subsection 1, Code 2019, is amended
5to read as follows:
61. The commission, when necessary under the rules,
7including minimum and maximum age limits, which shall be
8prescribed and published in advance by the commission and
9posted in the city hall, shall hold examinations for the
10purpose of determining the qualifications of applicants
11for positions under civil service, other than promotions,
12which examinations shall be practical in character and shall
13relate to matters which will fairly test the mental and
14physical ability of the applicant to discharge the duties of
15the position to which the applicant seeks appointment. The
16physical examination of applicants for appointment to the
17positions of police officer, police matron, or fire fighter
18shall be held in accordance with medical protocols established
19by the board of trustees of the fire and police retirement
20system established by section 411.5 and shall be conducted
21in accordance with the directives of the board of trustees.
22However, the prohibitions of section 216.6, subsection 1,
23paragraph “d”, regarding tests for the presence of the antibody
24to the human immunodeficiency virus shall not apply to such
25examinations. The board of trustees may change the medical
26protocols at any time the board so determines. In the event of
27a conflict between the medical protocols established under this
28section and the minimum entrance requirements of the Iowa law
29enforcement academy under section 80B.11, the medical protocols
30established under this section shall control. The physical
31examination of an applicant for the position of police officer,
32police matron, or fire fighter shall be conducted after a
33conditional offer of employment has been made to the applicant.
34An applicant shall not be discriminated against on the basis
35of height, weight, sex, or race in determining physical or
-25-1mental ability of the applicant. Reasonable rules relating to
2strength, agility, and general health of applicants shall be
3prescribed. The costs of the physical examination required
4under this subsection shall be paid from the trust and agency
5 general fund of the city.
6 Sec. 38. Section 411.6, subsection 5, paragraph b, Code
72019, is amended to read as follows:
8b. If a member in service or the chief of the police or
9fire departments becomes incapacitated for duty as a natural
10or proximate result of an injury or disease incurred in or
11aggravated by the actual performance of duty at some definite
12time or place or while acting, pursuant to order, outside the
13city by which the member is regularly employed, the member,
14upon being found to be temporarily incapacitated following a
15medical examination as directed by the city, is entitled to
16receive the member’s full pay and allowances from the city’s
17general fund or trust and agency fund until reexamined as
18directed by the city and found to be fully recovered or until
19the city determines that the member is likely to be permanently
20disabled. If the temporary incapacity of a member continues
21more than sixty days, or if the city expects the incapacity
22to continue more than sixty days, the city shall notify the
23system of the temporary incapacity. Upon notification by a
24city, the system may refer the matter to the medical board for
25review and consultation with the member’s treating physician
26during the temporary incapacity. Except as provided by this
27paragraph, the board of trustees of the statewide system has no
28jurisdiction over these matters until the city determines that
29the disability is likely to be permanent.
30 Sec. 39. Section 411.15, Code 2019, is amended to read as
31follows:
32411.15 Hospitalization and medical attention.
33Cities shall provide hospital, nursing, and medical
34attention for the members of the police and fire departments
35of the cities, when injured while in the performance of their
-26-1duties as members of such department, and shall continue to
2provide hospital, nursing, and medical attention for injuries
3or diseases incurred while in the performance of their duties
4for members receiving a retirement allowance under section
5411.6, subsection 6. Cities may fund the cost of the hospital,
6nursing, and medical attention required by this section through
7the purchase of insurance, by self-insuring the obligation, or
8through payment of moneys into a local government risk pool
9established for the purpose of covering the costs associated
10with the requirements of this section. However, the cost of
11the hospital, nursing, and medical attention required by this
12section shall not be funded through an employee-paid health
13insurance policy. The cost of the hospital, nursing, and
14medical attention required by this section shall be paid from
15moneys held in a trust and agency fund established pursuant
16to section 384.6, the city’s general fund or out of the
17appropriation for the department to which the injured person
18belongs or belonged; provided that any amounts received by
19the injured person from any other source for such specific
20purposes, shall be deducted from the amount paid by the city
21under the provisions of this section.
22 Sec. 40. REPEAL. Sections 331.425, 331.426, and 384.8, Code
232019, are repealed.
24 Sec. 41. APPLICABILITY. This Act applies to fiscal years
25beginning on or after July 1, 2020.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill removes the property tax levy rate limitations on
30the general and rural funds for counties and on the general
31fund for cities and substitutes a limitation on the maximum
32amount of property tax dollars that may be certified for levy
33by a county or city for those funds for fiscal years beginning
34on or after July 1, 2020. For the fiscal year beginning July
351, 2020, and subsequent fiscal years, the maximum amount of
-27-1property tax dollars which may be certified for levy shall be
2an amount equal to the sum of the following: (1) the current
3fiscal year’s actual property tax dollars certified by the
4county or city multiplied by the annual growth factor, defined
5in the bill to be 102 percent; (2) the amount of net new
6valuation taxes, as defined in the bill; and (3) the amount of
7additions to the levy approved by resolution of the governing
8body of the city or county, subject to a voter referendum, if
9the referendum is requested by a petition signed by a specified
10amount of electors.
11Property taxes certified for mental health and disabilities
12services in Code section 331.424A, a unified law enforcement
13district under Code chapter 28E, the emergency services fund in
14Code section 331.424C, the debt service fund in Code section
15331.430, and any capital projects fund established by the
16county for deposit of bond, loan, or note proceeds, are not
17counted against the maximum amount of property tax dollars that
18may be certified for levy by a county.
19Property taxes certified for a unified law enforcement
20district under Code chapter 28E, deposit in the debt service
21fund in Code section 384.4, capital improvements reserve fund
22in Code section 384.7, any capital projects fund established
23by the city for deposit of bond, loan, or note proceeds, and
24property taxes collected from a levy in Code section 384.12,
25as amended in the bill, are not counted against the maximum
26amount of property tax dollars that may be certified for levy
27by a city.
28The bill establishes an amount to be used by each county
29or city, as applicable, in order to calculate the maximum
30property tax dollars that may be certified for the fiscal year
31beginning July 1, 2020. For counties, that amount includes the
32total amount of property tax dollars certified by the county
33for general county services or for rural county services,
34as applicable, including those amounts certified under Code
35section 331.424, Code 2019 (supplemental levies). For cities,
-28-1that amount includes the sum of the total amount of property
2tax dollars certified by the city for the city’s general fund
3plus the total amount of property tax dollars certified for
4the city’s trust and agency fund under Code section 384.6,
5subsection 1, Code 2019, for the city’s emergency fund under
6Code section 384.8, Code 2019, and for the levies authorized
7under Code section 384.12, subsections 8, 10, 11, 12, 13, and
817, Code 2019.
9The bill also provides that the city’s employee benefits
10expenditures, currently levied as part of the city’s trust and
11agency funds under Code section 384.6, shall be levied for
12under new Code section 384.3B and are subject to the limitation
13on property tax dollars established in the bill.
14The bill specifies certain requirements for ending fund
15balances for counties and cities. The bill provides that
16budgeted ending fund balances in certain specified funds for a
17budget year in excess of 25 percent of budgeted expenditures
18shall be nonspendable or be restricted, committed, or assigned
19for a specific purpose.
20In a protest to the county or city budget, the county
21or city, as applicable, has the burden of proving that the
22budgeted balances in excess of 25 percent are reasonably likely
23to be appropriated for the restricted, committed, or assigned
24specific purpose.
25The bill also allows for additional property taxes to be
26levied in certain fiscal years for those counties or cities
27that have, as of June 30, 2019, reduced their actual ending
28fund balance to less than 25 percent of actual expenditures.
29Such additional property tax dollars authorized but not levied
30may be carried forward as unused ending fund balance taxing
31authority until and for the fiscal year beginning July 1, 2025.
32However, the amount carried forward shall not exceed 25 percent
33of the maximum amount of property tax dollars available in the
34current fiscal year. The amount of such additional property
35taxes levied shall not, however, be included in the computation
-29-1of the maximum amount of property tax dollars which may be
2certified and levied in future budget years.
3The bill also makes conforming amendments to other
4provisions of the Code.
5The bill applies to fiscal years beginning on or after July
61, 2020.
-30-md/jh
2and including applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 23A.2, subsection 10, paragraph h, Code
22019, is amended to read as follows:
3h. The performance of an activity listed in section 331.424,
4Code 2019, as a service for which a supplemental levy county
5 may be certified include in its budget.
6 Sec. 2. Section 28M.5, subsections 1 and 2, Code 2019, are
7amended to read as follows:
81. The commission, with the approval of the board of
9supervisors of participating counties and the city council
10of participating cities in the chapter 28E agreement, may
11levy annually a tax not to exceed ninety-five cents per
12thousand dollars of the assessed value of all taxable property
13in a regional transit district to the extent provided in
14this section. The chapter 28E agreement may authorize the
15commission to levy the tax at different rates within the
16participating cities and counties in amounts sufficient to meet
17the revenue responsibilities of such cities and counties as
18allocated in the budget adopted by the commission. However,
19for a city participating in a regional transit district, the
20total of all the tax levies imposed in the city pursuant
21to section 384.12, subsection 10, and this section shall
22not exceed the aggregate of ninety-five cents per thousand
23dollars of the assessed value of all taxable property in the
24participating city.
252. If a regional transit district budget allocates
26revenue responsibilities to the board of supervisors of a
27participating county, the amount of the regional transit
28district levy that is the responsibility of the participating
29county shall be deducted from the maximum rates amount of taxes
30authorized to be levied by the county pursuant to section
31331.423, subsections 1 and 2 subsection 3, paragraphs “b”
32 and “c”, as applicable, unless the county meets its revenue
33responsibilities as allocated in the budget from other
34available revenue sources. However, for a regional transit
35district that includes a county with a population of less than
-1-1three hundred thousand, the amount of the regional transit
2district levy that is the responsibility of such participating
3county shall be deducted from the maximum rate amount of taxes
4authorized to be levied by the county pursuant to section
5331.423, subsection 1 3, paragraph “b”.
6 Sec. 3. Section 29C.17, subsection 2, paragraph a, Code
72019, is amended by striking the paragraph.
8 Sec. 4. Section 123.38, subsection 2, paragraph b, Code
92019, is amended to read as follows:
10b. For purposes of this subsection, any portion of license
11or permit fees used for the purposes authorized in section
12331.424, subsection 1, paragraph “a”, subparagraphs (1) and
13(2), Code 2019, and in section 331.424A, shall not be deemed
14received either by the division or by a local authority.
15 Sec. 5. Section 218.99, Code 2019, is amended to read as
16follows:
17218.99 Counties to be notified of patients’ personal
18accounts.
19The administrator in control of a state institution shall
20direct the business manager of each institution under the
21administrator’s jurisdiction which is mentioned in section
22331.424, subsection 1, paragraph “a”, subparagraphs (1) and
23(2), and for which services are paid under section 331.424A,
24to quarterly inform the county of residence of any patient or
25resident who has an amount in excess of two hundred dollars on
26account in the patients’ personal deposit fund and the amount
27on deposit. The administrators shall direct the business
28manager to further notify the county of residence at least
29fifteen days before the release of funds in excess of two
30hundred dollars or upon the death of the patient or resident.
31If the patient or resident has no residency in this state or
32the person’s residency is unknown, notice shall be made to the
33director of human services and the administrator in control of
34the institution involved.
35 Sec. 6. Section 331.263, subsection 2, Code 2019, is amended
-2-1to read as follows:
22. The governing body of the community commonwealth
3shall have the authority to levy county taxes and shall
4have the authority to levy city taxes to the extent the
5city tax levy authority is transferred by the charter to
6the community commonwealth. A city participating in the
7community commonwealth shall transfer a portion of the
8city’s tax levy authorized under section 384.1 or 384.12,
9whichever is applicable, to the governing body of the community
10commonwealth. The maximum rates amount of taxes authorized to
11be levied under sections section 384.1 and the maximum amount
12of taxes authorized to be levied under section384.12 by a city
13participating in the community commonwealth shall be reduced
14by an amount equal to the rates of the same or similar taxes
15levied in the city by the governing body of the community
16commonwealth.
17 Sec. 7. Section 331.301, subsection 12, Code 2019, is
18amended to read as follows:
1912. The board of supervisors may credit funds to a reserve
20for the purposes authorized by subsection 11 of this section;
21section 331.424, subsection 1, paragraph “a”, subparagraph
22(5); and section 331.441, subsection 2, paragraph “b”. Moneys
23credited to the reserve, and interest earned on such moneys,
24shall remain in the reserve until expended for purposes
25authorized by subsection 11 of this section; section 331.424,
26subsection 1, paragraph “a”, subparagraph (5); or section
27331.441, subsection 2, paragraph “b”.
28 Sec. 8. Section 331.421, subsections 1 and 10, Code 2019,
29are amended by striking the subsections.
30 Sec. 9. Section 331.421, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 7A. “Item” means, in accordance
33with protests under chapter 24, a budgeted expenditure,
34appropriation, or cash reserve from a fund for a service area,
35program, program element, or purpose.
-3-1 Sec. 10. Section 331.422, unnumbered paragraph 1, Code
22019, is amended to read as follows:
3Subject to this section and sections 331.423 through 331.426
4 331.424C or as otherwise provided by state law, the board of
5each county shall certify property taxes annually at its March
6session to be levied for county purposes as follows:
7 Sec. 11. Section 331.423, Code 2019, is amended by striking
8the section and inserting in lieu thereof the following:
9331.423 Property tax dollars — maximums.
101. Annually, the board shall determine separate property
11tax levy limits to pay for general county services and rural
12county services in accordance with this section. The property
13tax levies separately certified for general county services and
14rural county services under section 331.434 shall not raise
15property tax dollars that exceed the amounts determined under
16this section.
172. For purposes of this section, unless the context
18otherwise requires:
19a. “Annual growth factor” means one hundred two percent.
20b. “Boundary adjustment” means annexation, severance,
21incorporation, or discontinuance as those terms are defined in
22section 368.1.
23c. “Budget year” is the fiscal year beginning during the
24calendar year in which a budget is certified.
25d. “Current fiscal year” is the fiscal year ending during
26the calendar year in which a budget is certified.
27e. “Net new valuation taxes” means the amount of property
28tax dollars equal to the current fiscal year’s levy rate in
29the county for general county services or for rural county
30services, as applicable, multiplied by the net increase from
31the current fiscal year to the budget year in taxable valuation
32due to the following, the amount of each as certified by the
33county auditor to the department of management by January
341 preceding the applicable fiscal year, excluding amounts
35attributable to a valuation release:
-4- 1(1) New construction.
2(2) Additions or improvements to existing structures that
3are not normal and necessary repairs under section 441.21,
4subsection 8.
5(3) Net boundary adjustment.
6(4) A municipality no longer dividing tax revenues in an
7urban renewal area as provided in section 403.19 or a community
8college no longer dividing revenues as provided in section
9260E.4.
10(5) That portion of taxable property located in an urban
11revitalization area on which an exemption was allowed and such
12exemption has expired.
13(6) New exemptions for existing properties and the
14expiration or removal of property exemptions.
15f. “Valuation release” means the valuation that is released
16in any one year from either a division of revenue under section
17260E.4 or an urban renewal area for which taxes were being
18divided under section 403.19 if the property for the valuation
19being released remains subject to the division of revenue under
20section 260E.4 or remains part of the urban renewal area that
21is subject to a division of revenue under section 403.19.
223. a. For the fiscal year beginning July 1, 2020, and
23subsequent fiscal years, the maximum amount of property tax
24dollars which may be certified for levy by a county for general
25county services and rural county services shall be the maximum
26property tax dollars calculated under paragraphs “b” and “c”,
27respectively. The amount of property tax dollars calculated
28under this subsection and determined under subsection 4
29includes those amounts received by the county as replacement
30taxes under chapter 437A or 437B.
31b. The maximum property tax dollars that may be levied for
32general county services is an amount equal to the sum of the
33following:
34(1) The annual growth factor times the current fiscal year’s
35actual property tax dollars certified for levy for general
-5-1county services.
2(2) The amount of net new valuation taxes in the county.
3(3) The amount of the additions for general county services
4approved under section 331.424 for the budget year, if
5applicable.
6c. The maximum property tax dollars that may be levied for
7rural county services is an amount equal to the sum of the
8following:
9(1) The annual growth factor times the current fiscal year’s
10actual property tax dollars certified for levy for rural county
11services.
12(2) The amount of net new valuation taxes in the
13unincorporated area of the county.
14(3) The amount of the additions for rural county services
15approved under section 331.424 for the budget year, if
16applicable.
174. a. For purposes of calculating maximum property tax
18dollars for general county services for the fiscal year
19beginning July 1, 2020, only, the term “current fiscal year’s
20actual property tax dollars” shall mean the total amount of
21property tax dollars certified by the county for general county
22services for the fiscal year beginning July 1, 2019, or the
23fiscal year beginning July 1, 2018, whichever is greater,
24including amounts certified under section 331.424, subsection
251, Code 2019.
26b. For purposes of calculating maximum property tax dollars
27for rural county services for the fiscal year beginning July
281, 2020, only, the term “current fiscal year’s actual property
29tax dollars” shall mean the total amount of property tax
30dollars certified by the county for rural county services for
31the fiscal year beginning July 1, 2019, or the fiscal year
32beginning July 1, 2018, whichever is greater, including amounts
33certified under section 331.424, subsection 2, Code 2019.
34c. For purposes of calculating maximum property tax dollars
35for a fiscal year beginning on or after July 1, 2021, a county
-6-1for which the county’s taxes were not certified back by the
2department of management under section 24.17 for the current
3fiscal year due to an act or omission of the county, the
4current fiscal year’s actual property tax dollars certified for
5levy shall be equal to the amount certified for levy for the
6fiscal year immediately preceding the current fiscal year or
7the amount under paragraph “a” or “b”, if applicable.
85. Property taxes certified for mental health and
9disabilities services in section 331.424A, a unified law
10enforcement district under chapter 28E, subchapter II,
11the emergency services fund in section 331.424C, the debt
12service fund in section 331.430, and any capital projects
13fund established by the county for deposit of bond, loan, or
14note proceeds, are not counted against the maximum amount of
15property tax dollars that may be certified for a budget year
16under subsection 3.
176. The department of management, in consultation with the
18county finance committee, shall adopt rules to administer this
19section. The department shall prescribe forms to be used by
20counties when making calculations required by this section.
21 Sec. 12. NEW SECTION. 331.423A Ending fund balance.
221. a. Budgeted ending fund balances for a budget year
23in excess of twenty-five percent of budgeted expenditures in
24either the general fund or rural services fund for that budget
25year shall be nonspendable or be restricted, committed, or
26assigned for a specific purpose.
27b. In a protest to the county budget under section 331.436,
28the county shall have the burden of proving that the budgeted
29balances in excess of twenty-five percent are reasonably likely
30to be appropriated for the restricted, committed, or assigned
31specific purpose. The excess budgeted balance for the specific
32purpose shall be considered an increase in an item in the
33budget for purposes of section 24.28.
342. a. For a county that has, as of June 30, 2019, reduced
35its actual ending fund balance to less than twenty-five
-7-1percent of actual expenditures, additional property taxes may
2be computed and levied as provided in this subsection. The
3additional property tax levy amount is an amount not to exceed
4twenty-five percent of actual expenditures from the general
5fund and rural services fund for the fiscal year beginning July
61, 2018, minus the combined ending fund balances for those
7funds for that year.
8b. The amount of the additional property taxes shall be
9apportioned between the general fund and the rural services
10fund. However, the amount apportioned for general county
11services and for rural county services shall not exceed for
12each fund twenty-five percent of actual expenditures for the
13fiscal year beginning July 1, 2018.
14c. All or a portion of additional property tax dollars
15may be levied for the purpose of increasing cash reserves
16for general county services and rural county services in the
17budget year. The additional property tax dollars authorized
18under this subsection but not levied may be carried forward as
19unused ending fund balance taxing authority until and for the
20fiscal year beginning July 1, 2025. The amount carried forward
21shall not exceed twenty-five percent of the maximum amount of
22property tax dollars available in the current fiscal year.
23Additionally, property taxes that are levied as unused ending
24fund balance taxing authority under this subsection may be the
25subject of a protest under section 331.436, and the amount
26will be considered an increase in an item in the budget for
27purposes of section 24.28. The amount of additional property
28taxes levied under this subsection shall not be included in the
29computation of the maximum amount of property tax dollars which
30may be certified and levied under section 331.423.
31 Sec. 13. Section 331.424, Code 2019, is amended by striking
32the section and inserting in lieu thereof the following:
33331.424 Authority to levy beyond maximum property tax
34dollars.
351. a. The board may, by resolution and subject to the
-8-1petition and election provisions of this section, annually
2certify additions to the maximum amount of property tax
3dollars to be levied pursuant to section 331.423, subsection 3,
4paragraph “b”, subparagraph (3), or section 331.423, subsection
53, paragraph “c”, subparagraph (3), if the board publishes the
6notice of the proposed action, including a statement of the
7amount and purpose of the proposed additions, the requirements
8and deadlines for filing a petition under paragraph “b”, the
9resulting consequences and processes if a petition is filed
10under paragraph “b”, and the time and place of a public meeting
11at which the board proposes to take action on the proposal. At
12the meeting, the board shall receive oral or written objections
13from any resident or property owner of the county. After
14all objections have been received and considered, the board
15may, following twenty days after the meeting and subject to
16paragraph “b”, take action on the proposal or abandon the
17proposal. A resolution under this section approving additions
18to the maximum amount of property tax dollars must be effective
19not later than January 31 preceding the fiscal year for which
20the addition is applicable.
21b. If at any time within twenty days after the meeting under
22paragraph “a”, a petition is filed with the county auditor
23signed by eligible electors of the county equal in number to
24the lesser of two thousand or twenty percent of the persons in
25the county who voted for the office of president of the United
26States at the last preceding general election that had such
27office on the ballot, but not less than ten eligible electors,
28asking that the question of levying an additional amount be
29submitted to the registered voters of the county, the board
30shall either by resolution declare the proposal to be abandoned
31or shall direct the county commissioner of elections to call
32a special election upon the question. If, however, a valid
33petition is filed under this section and the notice requirement
34of subsection 2, paragraph “a”, cannot be satisfied, the board
35shall declare the proposal to be abandoned.
-9- 12. The special election, if called, may be held on a Tuesday
2other than the dates specified in section 39.2, subsection 4,
3paragraph “a”, but not later than the second Tuesday in March
4and is subject to the following:
5a. The board must give at least thirty-two days’ notice to
6the county commissioner of elections that the special election
7is to be held. In no case, however, shall a notice be given to
8the county commissioner of elections after January 31 for an
9election on a proposition to exceed the statutory limits during
10the fiscal year beginning following the current fiscal year.
11b. The proposition submitted to voters may propose authority
12for the board to certify additions to the maximum amount
13of property tax dollars for up to two fiscal years. The
14proposition is approved if it receives a favorable majority of
15the votes cast on the proposition.
16c. The proposition to be submitted shall be substantially
17in the following form:
18Vote “yes” or “no” on the following:
19Shall the county of levy for an additional $each
20year for years beginning July 1, , in excess of the
21statutory limits otherwise applicable for the (general county
22services or rural services) fund?
23d. The canvass shall be held beginning at 1:00 p.m.on
24the second day which is not a holiday following the special
25election.
26e. Notice of the special election shall be published at
27least once in a newspaper as specified in section 331.305 prior
28to the date of the special election. The notice shall appear
29as early as practicable after the board has voted to submit
30a proposition to the voters to levy additional property tax
31dollars.
323. Registered voters in the county may vote on the
33proposition to increase property taxes for the general fund
34in excess of the statutory limit. Registered voters residing
35outside the corporate limits of a city within the county may
-10-1vote on the proposition to increase property taxes for the
2rural services fund in excess of the statutory limit.
3 Sec. 14. Section 331.424A, subsection 6, Code 2019, is
4amended to read as follows:
56. For each fiscal year, the county shall certify a levy
6for payment of services. For each fiscal year, county revenues
7from taxes imposed by the county credited to the county
8services fund shall not exceed an amount equal to the county
9budgeted amount for the fiscal year. A levy certified under
10this section is not subject to the appeal provisions of section
11331.426or to any other provision in law authorizing a county
12to exceed, increase, or appeal a property tax levy limit.
13 Sec. 15. Section 331.427, subsection 3, paragraph l, Code
142019, is amended to read as follows:
15l. Services listed in section 331.424, subsection 1, Code
162019, and section 331.554.
17 Sec. 16. Section 331.428, subsection 2, paragraph d, Code
182019, is amended to read as follows:
19d. Services listed under section 331.424, subsection 2, Code
202019.
21 Sec. 17. Section 331.429, subsection 1, paragraphs a and b,
22Code 2019, are amended to read as follows:
23a. Transfers from the general fund not to exceed in any year
24the dollar equivalent of a tax of sixteen and seven-eighths
25cents per thousand dollars of assessed value on all taxable
26property in the county multiplied by the ratio of current
27taxes actually collected and apportioned for the general basic
28 county services levy to the total general basic county services
29 levy for the current year, and an amount equivalent to the
30moneys derived by the general fund from military service tax
31credits under chapter 426A, manufactured or mobile home taxes
32under section 435.22, and delinquent taxes for prior years
33collected and apportioned to the general basic county services
34 fund in the current year, multiplied by the ratio of sixteen
35and seven-eighths cents to three dollars and fifty cents.
-11-1The limit on transfers in this paragraph applies only to
2property tax revenue and is not a limit on transfers of revenue
3generated from sources other than property taxes.
4b. Transfers from the rural services fund not to exceed in
5any year the dollar equivalent of a tax of three dollars and
6three-eighths cents per thousand dollars of assessed value on
7all taxable property not located within the corporate limits
8of a city in the county multiplied by the ratio of current
9taxes actually collected and apportioned for the rural county
10 services basic levy to the total rural county services basic
11 levy for the current year and an amount equivalent to the
12moneys derived by the rural services fund from military service
13tax credits under chapter 426A, manufactured or mobile home
14taxes under section 435.22, and delinquent taxes for prior
15years collected and apportioned to the rural county services
16basic fund in the current year, multiplied by the ratio of
17three dollars and three-eighths cents to three dollars and
18ninety-five cents. The limit on transfers in this paragraph
19applies only to property tax revenue and is not a limit on
20transfers of revenue generated from sources other than property
21taxes.
22 Sec. 18. Section 331.434, unnumbered paragraph 1, Code
232019, is amended to read as follows:
24Annually, the board of each county, subject to section
25331.403, subsection 4, sections 331.423 through 331.426
26 331.424C, and other applicable state law, shall prepare and
27adopt a budget, certify taxes, and provide appropriations as
28follows:
29 Sec. 19. Section 331.434, subsection 7, Code 2019, is
30amended to read as follows:
317. Taxes levied by a county whose budget is certified after
32March 15 shall be limited to the prior year’s budget amount.
33However, this penalty may be waived by the director of the
34department of management if the county demonstrates that the
35March 15 deadline was missed because of circumstances beyond
-12-1the control of the county or as the result of an election held
2under section 331.424.
3 Sec. 20. Section 364.25, Code 2019, is amended to read as
4follows:
5364.25 Retiree health care.
6A city may provide health or medical insurance coverage or
7supplemental health or medical insurance coverage to retired
8employees of the city. A city providing health or medical
9insurance coverage pursuant to this section may establish such
10requirements or restrictions concerning the coverage provided
11as the city may adopt. If coverage is provided, the cost of the
12health or medical insurance coverage may be paid from moneys
13held in a trust and agency fund established pursuant to section
14384.6, or out of an appropriation from the city general fund
15for this purpose.
16 Sec. 21. Section 331.435, unnumbered paragraph 1, Code
172019, is amended to read as follows:
18The board may amend the adopted county budget, subject to
19sections 331.423 through 331.426 331.424C and other applicable
20state law, to permit increases in any class of proposed
21expenditures contained in the budget summary published under
22section 331.434, subsection 3.
23 Sec. 22. Section 373.10, Code 2019, is amended to read as
24follows:
25373.10 Taxing authority.
26The metropolitan council shall have the authority to
27levy city taxes to the extent the city tax levy authority
28is transferred by the charter to the metropolitan council.
29A member city shall transfer a portion of the city’s tax
30levy authorized under section 384.1 or 384.12, whichever is
31applicable, to the metropolitan council. The maximum rates
32 amount of taxes authorized to be levied under sections section
33 384.1 and the taxes authorized to be levied under section
34 384.12 by a member city shall be reduced by an amount equal to
35the rates of the same or similar taxes levied in the city by the
-13-1metropolitan council.
2 Sec. 23. Section 384.1, Code 2019, is amended by striking
3the section and inserting in lieu thereof the following:
4384.1 Property tax dollars — maximum.
51. A city shall certify taxes to be levied by the city
6on all taxable property within the city limits, for all city
7government purposes. Annually, the city council may certify
8a basic levy for city government purposes, subject to the
9limitation on property tax dollars provided in this section.
102. For purposes of this section, unless the context
11otherwise requires:
12a. “Annual growth factor” means one hundred two percent.
13b. “Boundary adjustment” means annexation, severance,
14incorporation, or discontinuance as those terms are defined in
15section 368.1.
16c. “Budget year” is the fiscal year beginning during the
17calendar year in which a budget is certified.
18d. “Current fiscal year” is the fiscal year ending during
19the calendar year in which a budget is certified.
20e. “Net new valuation taxes” means the amount of property
21tax dollars equal to the current fiscal year’s levy rate in the
22city for the general fund plus, for the fiscal year beginning
23July 1, 2020, only, the levy rates in the city under sections
24384.6 and 384.8, Code 2019, multiplied by the net increase from
25the current fiscal year to the budget year in taxable valuation
26due to the following, the amount of each as certified by the
27county auditor to the department of management by January
281 preceding the applicable fiscal year, excluding amounts
29attributable to a valuation release:
30(1) New construction.
31(2) Additions or improvements to existing structures that
32are not normal and necessary repairs under section 441.21,
33subsection 8.
34(3) Net boundary adjustment.
35(4) A municipality no longer dividing tax revenues in an
-14-1urban renewal area as provided in section 403.19 or a community
2college no longer dividing revenues as provided in section
3260E.4.
4(5) That portion of taxable property located in an urban
5revitalization area on which an exemption was allowed and such
6exemption has expired.
7(6) New exemptions for existing properties and the
8expiration or removal of property exemptions.
9f. “Valuation release” means the valuation that is released
10in any one year from either a division of revenue under section
11260E.4 or an urban renewal area for which taxes were being
12divided under section 403.19 if the property for the valuation
13being released remains subject to the division of revenue under
14section 260E.4 or remains part of the urban renewal area that
15is subject to a division of revenue under section 403.19.
163. a. For the fiscal year beginning July 1, 2020, and
17subsequent fiscal years, the maximum amount of property
18tax dollars which may be certified for levy by a city for
19the general fund shall be the maximum property tax dollars
20calculated under paragraph “b”. The amount of property tax
21dollars calculated under this subsection and determined under
22subsection 4 includes those amounts received by the city as
23replacement taxes under chapter 437A or 437B.
24b. The maximum property tax dollars that may be levied for
25deposit in the general fund is an amount equal to the sum of the
26following:
27(1) The annual growth factor times the current fiscal year’s
28actual property tax dollars certified for levy for the general
29fund.
30(2) The amount of net new valuation taxes in the city.
31(3) The amount of the additions approved under section
32384.12A for the budget year, if applicable.
334. a. For purposes of calculating maximum property tax
34dollars for the city general fund for the fiscal year beginning
35July 1, 2020, only, the term “current fiscal year’s actual
-15-1property tax dollars” shall mean the sum of the total amount
2of property tax dollars certified by the city for the city’s
3general fund plus the total amount of property tax dollars
4certified for the city’s trust and agency fund under section
5384.6, subsection 1, Code 2019, for the city’s emergency fund
6under section 384.8, Code 2019, and for the levies authorized
7under section 384.12, subsections 8, 10, 11, 12, 13, and 17,
8Code 2019, for the fiscal year beginning July 1, 2018, or the
9fiscal year beginning July 1, 2019, whichever is greater.
10b. For purposes of calculating maximum property tax dollars
11for a fiscal year beginning on or after July 1, 2021, a city
12for which the city’s taxes were not certified back by the
13department of management under section 24.17 for the current
14fiscal year due to an act or omission of the city, the current
15fiscal year’s actual property tax dollars certified for levy
16shall be equal to the amount certified for levy for the fiscal
17year immediately preceding the current fiscal year or the
18amount under paragraph “a”, if applicable.
195. Property taxes certified for a unified law enforcement
20district under chapter 28E, subchapter II, deposit in the debt
21service fund in section 384.4, capital improvements reserve
22fund in section 384.7, any capital projects fund established
23by the city for deposit of bond, loan, or note proceeds, and
24property taxes collected from a levy in section 384.12, are not
25counted against the maximum amount of property tax dollars that
26may be certified for a fiscal year under subsection 3.
276. Notwithstanding the maximum amount of taxes a city
28may certify for levy, the tax levied by a city on tracts of
29land and improvements on the tracts of land used and assessed
30for agricultural or horticultural purposes shall not exceed
31three dollars and three-eighths cents per thousand dollars
32of assessed value in any year. Improvements located on such
33tracts of land and not used for agricultural or horticultural
34purposes and all residential dwellings are subject to the same
35rate of tax levied by the city on all other taxable property
-16-1within the city.
27. The department of management, in consultation with the
3city finance committee, shall adopt rules to administer this
4section. The department shall prescribe forms to be used by
5cities when making calculations required by this section.
6 Sec. 24. NEW SECTION. 384.1A Ending fund balance.
71. a. Budgeted ending fund balances for a budget year in
8excess of twenty-five percent of budgeted expenditures from the
9general fund for that budget year shall be nonspendable or be
10restricted, committed, or assigned for a specific purpose.
11b. In a protest to the city budget under section 384.19,
12the city shall have the burden of proving that the budgeted
13balances in excess of twenty-five percent are reasonably likely
14to be appropriated for the restricted, committed, or assigned
15specific purpose. The excess budgeted balance for the specific
16purpose shall be considered an increase in an item in the
17budget for purposes of section 24.28.
182. a. For a city that has, as of June 30, 2019, reduced its
19ending fund balance to less than twenty-five percent of actual
20expenditures, additional property taxes may be computed and
21levied as provided in this subsection. The additional property
22tax levy amount is an amount not to exceed the difference
23between twenty-five percent of actual expenditures for city
24government purposes for the fiscal year beginning July 1, 2018,
25minus the ending fund balance for that year.
26b. All or a portion of additional property tax dollars
27may be levied for the purpose of increasing cash reserves for
28city government purposes in the budget year. The additional
29property tax dollars authorized under this subsection but not
30levied may be carried forward as unused ending fund balance
31taxing authority until and for the fiscal year beginning
32July 1, 2025. The amount carried forward shall not exceed
33twenty-five percent of the maximum amount of property tax
34dollars available in the current fiscal year. Additionally,
35property taxes that are levied as unused ending fund balance
-17-1taxing authority under this subsection may be the subject of a
2protest under section 384.19, and the amount will be considered
3an increase in an item in the budget for purposes of section
424.28. The amount of additional property tax dollars levied
5under this subsection shall not be included in the computation
6of the maximum amount of property tax dollars which may be
7certified and levied under section 384.1.
8 Sec. 25. Section 384.3, Code 2019, is amended to read as
9follows:
10384.3 General fund.
11All moneys received for city government purposes from
12taxes and other sources must be credited to the general fund
13of the city, except that moneys received for the purposes
14of the debt service fund, the trust and agency funds, the
15capital improvements reserve fund, the emergency fund and other
16funds established by state law must be deposited as otherwise
17required or authorized by state law. All moneys received by
18a city from the federal government must be reported to the
19department of management who shall transmit a copy to the
20legislative services agency.
21 Sec. 26. NEW SECTION. 384.3B Employee benefits and
22retirement contributions — city general fund.
23A city may include within the city’s basic levy for city
24government purposes, an amount necessary, subject to the
25limitation on property tax dollars in section 384.1, property
26taxes for the following purposes, with such taxes accounted for
27as provided by the city finance committee:
281. Pension and related benefits of the city’s employees.
292. A city may make contributions to a retirement system
30other than the Iowa public employees’ retirement system for
31its city manager, or city administrator performing the duties
32of city manager, in an annual amount not to exceed the amount
33that would have been contributed by the employer under section
3497B.11.
353. If a police chief or fire chief has submitted a
-18-1written request to the board of trustees to be exempt from
2chapter 411, authorized in section 411.3, subsection 1, a
3city shall make contributions for the chief, in an amount
4not to exceed the amount that would have been contributed by
5the city under section 411.8, subsection 1, paragraph “a”,
6to the international city management association retirement
7corporation.
84. A city which has contracted with another city or
9governmental entity for the provision of public safety
10services, including but not limited to police protection,
11fire protection, ambulance, or hazardous materials response,
12may, pursuant to contract, make contributions for pension and
13related employee benefits for personnel of the other city or
14governmental entity providing such services to the city. The
15city may make such contributions in an annual amount not to
16exceed the amount of contributions for pension and related
17employee benefits that would otherwise be paid by the other
18city or governmental entity for such personnel.
19 Sec. 27. Section 384.6, Code 2019, is amended to read as
20follows:
21384.6 Trust and agency funds.
22A city may establish trust and agency funds for the following
23purposes:
241. Accounting for pension and related employee benefit
25funds as provided by the city finance committee. A city may
26certify taxes to be levied for a trust and agency fund in the
27amount necessary to meet its obligations.
28a. A city may make contributions to a retirement system
29other than the Iowa public employees’ retirement system for
30its city manager, or city administrator performing the duties
31of city manager, in an annual amount not to exceed the amount
32that would have been contributed by the employer under section
3397B.11.
34b. If a police chief or fire chief has submitted a
35written request to the board of trustees to be exempt from
-19-1chapter 411, authorized in section 411.3, subsection 1, a
2city shall make contributions for the chief, in an amount
3not to exceed the amount that would have been contributed by
4the city under section 411.8, subsection 1, paragraph “a”,
5to the international city management association retirement
6corporation.
7c. A city which has contracted with another city or
8governmental entity for the provision of public safety
9services, including but not limited to police protection,
10fire protection, ambulance, or hazardous materials response,
11may, pursuant to contract, make contributions for pension and
12related employee benefits for personnel of the other city or
13governmental entity providing such services to the city. The
14city may make such contributions in an annual amount not to
15exceed the amount of contributions for pension and related
16employee benefits that would otherwise be paid by the other
17city or governmental entity for such personnel.
182. 1. Accounting for gifts received by the city for a
19particular purpose.
203. 2. Accounting for money and property received and
21handled by the city as trustee or custodian or in the capacity
22of an agent.
23 Sec. 28. Section 384.12, subsections 8, 10, 11, 12, 13, and
2417, Code 2019, are amended by striking the subsections.
25 Sec. 29. NEW SECTION. 384.12A Authority to levy beyond
26maximum property tax dollars.
271. a. The city council may, by resolution and subject to
28the petition and election provisions of this section, annually
29certify additions to the maximum amount of property tax dollars
30to be levied pursuant to section 384.1, subsection 3, paragraph
31“b”, subparagraph (3), if the city council publishes notice
32of the proposed action, including a statement of the amount
33and purpose of the proposed additions, the requirements and
34deadlines for filing a petition under paragraph “b”, the
35resulting consequences and processes if a petition is filed
-20-1under paragraph “b”, and the time and place of a public meeting
2at which the city council proposes to take action on the
3proposal. At the meeting, the council shall receive oral or
4written objections from any resident or property owner of the
5city. After all objections have been received and considered,
6the council may, following twenty days after the meeting and
7subject to paragraph “b”, take action on the proposal or abandon
8the proposal. A resolution under this section approving
9additions to the maximum amount of property tax dollars must be
10effective not later than January 31 preceding the fiscal year
11for which the addition is applicable.
12b. If, at any time within twenty days after the meeting
13under paragraph “a”, a petition is filed with the city clerk
14signed by eligible electors of the city equal in number to the
15lesser of two thousand or twenty percent of the persons in the
16city who voted for the office of president of the United States
17at the last preceding general election that had such office on
18the ballot, but not less than ten eligible electors, asking
19that the question of levying an additional amount be submitted
20to the registered voters of the city, the city council shall
21either by resolution declare the proposal to be abandoned or
22shall direct the county commissioner of elections to call a
23special election upon the question. If, however, a valid
24petition is filed under this section and the notice requirement
25of subsection 2, paragraph “a”, cannot be satisfied, the council
26shall declare the proposal to be abandoned.
272. The special election, if called, may be held on a Tuesday
28other than the dates specified in section 39.2, subsection 4,
29paragraph “b”, but not later than the second Tuesday in March
30and is subject to the following:
31a. The city council must give at least thirty-two days’
32notice to the county commissioner of elections that the special
33election is to be held. In no case, however, shall a notice be
34given to the county commissioner of elections after January 31
35for an election on a proposition to exceed the statutory limits
-21-1during the fiscal year beginning following the current fiscal
2year.
3b. The proposition submitted to voters may propose authority
4for the city council to certify additions to the maximum amount
5of property tax dollars for up to two fiscal years. The
6proposition is approved if it receives a favorable majority of
7the votes cast on the proposition.
8c. The proposition to be submitted shall be substantially
9in the following form:
10Vote “yes” or “no” on the following:
11Shall the city of levy for an additional $each
12year for years beginning next July 1, , in excess of
13the statutory limits otherwise applicable for the city general
14fund?
15d. The canvass shall be held beginning at 1:00 p.m.on
16the second day which is not a holiday following the special
17election.
18e. Notice of the special election shall be published at
19least once in a newspaper as specified in section 362.3 prior
20to the date of the special election. The notice shall appear
21as early as practicable after the city council has voted to
22submit a proposition to the voters to levy additional property
23tax dollars.
24 Sec. 30. Section 384.15, subsection 1, Code 2019, is amended
25to read as follows:
261. Promulgate rules relating to budget amendments and the
27procedures for transferring moneys between funds, and other
28rules necessary or desirable in order to exercise its powers
29and perform its duties, including rules necessary to implement
30section 384.6, subsection 1 384.3B. The committee’s rules are
31subject to chapter 17A as applicable.
32 Sec. 31. Section 384.16, subsection 6, Code 2019, is amended
33to read as follows:
346. Taxes levied by a city whose budget is certified after
35March 15 shall be limited to the prior year’s budget amount.
-22-1However, this penalty may be waived by the director of the
2department of management if the city demonstrates that the
3March 15 deadline was missed because of circumstances beyond
4the control of the city or as the result of an election held
5under section 384.12A.
6 Sec. 32. Section 384.18, subsection 1, paragraph c, Code
72019, is amended to read as follows:
8c. To permit transfers from the debt service fund, the
9capital improvements reserve fund, the emergency fund, or other
10funds established by state law, to any other city fund, unless
11specifically prohibited by state law.
12 Sec. 33. Section 384.19, Code 2019, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 5. For purposes of a tax protest filed
15under this section and in accordance with the provisions of
16chapter 24, “item” means a budgeted expenditure, appropriation,
17or cash reserve from a fund for a service area, program,
18program element, or purpose.
19 Sec. 34. Section 384.110, Code 2019, is amended to read as
20follows:
21384.110 Insurance, self-insurance, and risk pooling funds.
22A city may credit funds to a fund or funds for the purposes
23authorized by section 364.4, subsection 5; section 384.12,
24subsection 17; or section 384.24, subsection 3, paragraph “s”.
25Moneys credited to the fund or funds, and interest earned on
26such moneys, shall remain in the fund or funds until expended
27for purposes authorized by section 364.4, subsection 5;
28section 384.12, subsection 17; or section 384.24, subsection
293, paragraph “s”.
30 Sec. 35. Section 386.8, Code 2019, is amended to read as
31follows:
32386.8 Operation tax.
33A city may establish a self-supported improvement district
34operation fund, and may certify taxes not to exceed the
35rate limitation as established in the ordinance creating the
-23-1district, or any amendment thereto, each year to be levied
2for the fund against all of the property in the district,
3for the purpose of paying the administrative expenses of
4the district, which may include but are not limited to
5administrative personnel salaries, a separate administrative
6office, planning costs including consultation fees, engineering
7fees, architectural fees, and legal fees and all other expenses
8reasonably associated with the administration of the district
9and the fulfilling of the purposes of the district. The taxes
10levied for this fund may also be used for the purpose of paying
11maintenance expenses of improvements or self-liquidating
12improvements for a specified length of time with one or more
13options to renew if such is clearly stated in the petition
14which requests the council to authorize construction of the
15improvement or self-liquidating improvement, whether or not
16such petition is combined with the petition requesting creation
17of a district. Parcels of property which are assessed as
18residential property for property tax purposes are exempt from
19the tax levied under this section except residential properties
20within a duly designated historic district. A tax levied under
21this section is not subject to the levy limitation in section
22384.1.
23 Sec. 36. Section 386.9, Code 2019, is amended to read as
24follows:
25386.9 Capital improvement tax.
26A city may establish a capital improvement fund for a
27district and may certify taxes, not to exceed the rate
28established by the ordinance creating the district, or any
29subsequent amendment thereto, each year to be levied for
30the fund against all of the property in the district, for
31the purpose of accumulating moneys for the financing or
32payment of a part or all of the costs of any improvement or
33self-liquidating improvement. However, parcels of property
34which are assessed as residential property for property tax
35purposes are exempt from the tax levied under this section
-24-1except residential properties within a duly designated historic
2district. A tax levied under this section is not subject to
3the levy limitations in section 384.1 or 384.7.
4 Sec. 37. Section 400.8, subsection 1, Code 2019, is amended
5to read as follows:
61. The commission, when necessary under the rules,
7including minimum and maximum age limits, which shall be
8prescribed and published in advance by the commission and
9posted in the city hall, shall hold examinations for the
10purpose of determining the qualifications of applicants
11for positions under civil service, other than promotions,
12which examinations shall be practical in character and shall
13relate to matters which will fairly test the mental and
14physical ability of the applicant to discharge the duties of
15the position to which the applicant seeks appointment. The
16physical examination of applicants for appointment to the
17positions of police officer, police matron, or fire fighter
18shall be held in accordance with medical protocols established
19by the board of trustees of the fire and police retirement
20system established by section 411.5 and shall be conducted
21in accordance with the directives of the board of trustees.
22However, the prohibitions of section 216.6, subsection 1,
23paragraph “d”, regarding tests for the presence of the antibody
24to the human immunodeficiency virus shall not apply to such
25examinations. The board of trustees may change the medical
26protocols at any time the board so determines. In the event of
27a conflict between the medical protocols established under this
28section and the minimum entrance requirements of the Iowa law
29enforcement academy under section 80B.11, the medical protocols
30established under this section shall control. The physical
31examination of an applicant for the position of police officer,
32police matron, or fire fighter shall be conducted after a
33conditional offer of employment has been made to the applicant.
34An applicant shall not be discriminated against on the basis
35of height, weight, sex, or race in determining physical or
-25-1mental ability of the applicant. Reasonable rules relating to
2strength, agility, and general health of applicants shall be
3prescribed. The costs of the physical examination required
4under this subsection shall be paid from the trust and agency
5 general fund of the city.
6 Sec. 38. Section 411.6, subsection 5, paragraph b, Code
72019, is amended to read as follows:
8b. If a member in service or the chief of the police or
9fire departments becomes incapacitated for duty as a natural
10or proximate result of an injury or disease incurred in or
11aggravated by the actual performance of duty at some definite
12time or place or while acting, pursuant to order, outside the
13city by which the member is regularly employed, the member,
14upon being found to be temporarily incapacitated following a
15medical examination as directed by the city, is entitled to
16receive the member’s full pay and allowances from the city’s
17general fund or trust and agency fund until reexamined as
18directed by the city and found to be fully recovered or until
19the city determines that the member is likely to be permanently
20disabled. If the temporary incapacity of a member continues
21more than sixty days, or if the city expects the incapacity
22to continue more than sixty days, the city shall notify the
23system of the temporary incapacity. Upon notification by a
24city, the system may refer the matter to the medical board for
25review and consultation with the member’s treating physician
26during the temporary incapacity. Except as provided by this
27paragraph, the board of trustees of the statewide system has no
28jurisdiction over these matters until the city determines that
29the disability is likely to be permanent.
30 Sec. 39. Section 411.15, Code 2019, is amended to read as
31follows:
32411.15 Hospitalization and medical attention.
33Cities shall provide hospital, nursing, and medical
34attention for the members of the police and fire departments
35of the cities, when injured while in the performance of their
-26-1duties as members of such department, and shall continue to
2provide hospital, nursing, and medical attention for injuries
3or diseases incurred while in the performance of their duties
4for members receiving a retirement allowance under section
5411.6, subsection 6. Cities may fund the cost of the hospital,
6nursing, and medical attention required by this section through
7the purchase of insurance, by self-insuring the obligation, or
8through payment of moneys into a local government risk pool
9established for the purpose of covering the costs associated
10with the requirements of this section. However, the cost of
11the hospital, nursing, and medical attention required by this
12section shall not be funded through an employee-paid health
13insurance policy. The cost of the hospital, nursing, and
14medical attention required by this section shall be paid from
15moneys held in a trust and agency fund established pursuant
16to section 384.6, the city’s general fund or out of the
17appropriation for the department to which the injured person
18belongs or belonged; provided that any amounts received by
19the injured person from any other source for such specific
20purposes, shall be deducted from the amount paid by the city
21under the provisions of this section.
22 Sec. 40. REPEAL. Sections 331.425, 331.426, and 384.8, Code
232019, are repealed.
24 Sec. 41. APPLICABILITY. This Act applies to fiscal years
25beginning on or after July 1, 2020.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill removes the property tax levy rate limitations on
30the general and rural funds for counties and on the general
31fund for cities and substitutes a limitation on the maximum
32amount of property tax dollars that may be certified for levy
33by a county or city for those funds for fiscal years beginning
34on or after July 1, 2020. For the fiscal year beginning July
351, 2020, and subsequent fiscal years, the maximum amount of
-27-1property tax dollars which may be certified for levy shall be
2an amount equal to the sum of the following: (1) the current
3fiscal year’s actual property tax dollars certified by the
4county or city multiplied by the annual growth factor, defined
5in the bill to be 102 percent; (2) the amount of net new
6valuation taxes, as defined in the bill; and (3) the amount of
7additions to the levy approved by resolution of the governing
8body of the city or county, subject to a voter referendum, if
9the referendum is requested by a petition signed by a specified
10amount of electors.
11Property taxes certified for mental health and disabilities
12services in Code section 331.424A, a unified law enforcement
13district under Code chapter 28E, the emergency services fund in
14Code section 331.424C, the debt service fund in Code section
15331.430, and any capital projects fund established by the
16county for deposit of bond, loan, or note proceeds, are not
17counted against the maximum amount of property tax dollars that
18may be certified for levy by a county.
19Property taxes certified for a unified law enforcement
20district under Code chapter 28E, deposit in the debt service
21fund in Code section 384.4, capital improvements reserve fund
22in Code section 384.7, any capital projects fund established
23by the city for deposit of bond, loan, or note proceeds, and
24property taxes collected from a levy in Code section 384.12,
25as amended in the bill, are not counted against the maximum
26amount of property tax dollars that may be certified for levy
27by a city.
28The bill establishes an amount to be used by each county
29or city, as applicable, in order to calculate the maximum
30property tax dollars that may be certified for the fiscal year
31beginning July 1, 2020. For counties, that amount includes the
32total amount of property tax dollars certified by the county
33for general county services or for rural county services,
34as applicable, including those amounts certified under Code
35section 331.424, Code 2019 (supplemental levies). For cities,
-28-1that amount includes the sum of the total amount of property
2tax dollars certified by the city for the city’s general fund
3plus the total amount of property tax dollars certified for
4the city’s trust and agency fund under Code section 384.6,
5subsection 1, Code 2019, for the city’s emergency fund under
6Code section 384.8, Code 2019, and for the levies authorized
7under Code section 384.12, subsections 8, 10, 11, 12, 13, and
817, Code 2019.
9The bill also provides that the city’s employee benefits
10expenditures, currently levied as part of the city’s trust and
11agency funds under Code section 384.6, shall be levied for
12under new Code section 384.3B and are subject to the limitation
13on property tax dollars established in the bill.
14The bill specifies certain requirements for ending fund
15balances for counties and cities. The bill provides that
16budgeted ending fund balances in certain specified funds for a
17budget year in excess of 25 percent of budgeted expenditures
18shall be nonspendable or be restricted, committed, or assigned
19for a specific purpose.
20In a protest to the county or city budget, the county
21or city, as applicable, has the burden of proving that the
22budgeted balances in excess of 25 percent are reasonably likely
23to be appropriated for the restricted, committed, or assigned
24specific purpose.
25The bill also allows for additional property taxes to be
26levied in certain fiscal years for those counties or cities
27that have, as of June 30, 2019, reduced their actual ending
28fund balance to less than 25 percent of actual expenditures.
29Such additional property tax dollars authorized but not levied
30may be carried forward as unused ending fund balance taxing
31authority until and for the fiscal year beginning July 1, 2025.
32However, the amount carried forward shall not exceed 25 percent
33of the maximum amount of property tax dollars available in the
34current fiscal year. The amount of such additional property
35taxes levied shall not, however, be included in the computation
-29-1of the maximum amount of property tax dollars which may be
2certified and levied in future budget years.
3The bill also makes conforming amendments to other
4provisions of the Code.
5The bill applies to fiscal years beginning on or after July
61, 2020.
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