House File 88 - IntroducedA Bill ForAn Act 1relating to city finances by amending provisions
2relating to the issuance of general obligation bonds.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 384.26, subsection 5, paragraph a, Code
22023, is amended to read as follows:
   3a.  Notwithstanding the provisions of subsection 2, a council
4may, in lieu of calling an election, institute proceedings
5for the issuance of bonds for a general corporate purpose by
6causing a notice of the proposal to issue the bonds, including
7a statement of the amount and purpose of the bonds, together
8with the maximum rate of interest which the bonds are to bear,
9and the right to petition for an election, to be published at
10least once in a newspaper of general circulation within the
11city at least ten days prior to the meeting at which it is
12proposed to take action for the issuance of the bonds subject
13to the following population-based limitations, adjusted and
14published annually in January by the department of management
15by applying the percentage change in the consumer price
16index for all urban consumers for the most recent available
17twelve-month period published in the federal register by the
18United States department of labor, bureau of labor statistics
:
   19(1)  In cities having a population of five thousand or less,
20in an amount of not more than four eight hundred thousand
21dollars.
   22(2)  In cities having a population of more than five thousand
23and not more than seventy-five thousand, in an amount of not
24more than seven one million four hundred thousand dollars.
   25(3)  In cities having a population in excess of seventy-five
26thousand, in an amount of not more than one two million
27dollars.
28   Sec. 2.  Section 384.26, subsection 5, Code 2023, is amended
29by adding the following new paragraph:
30   NEW PARAGRAPH.  0b.  Each city’s population used to determine
31the limitations of paragraph “a” shall be determined using the
32most recent population estimate produced by the United States
33census bureau.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-1-1the explanation’s substance by the members of the general assembly.
   2This bill relates to city finances by amending provisions
3relating to the issuance of general obligation bonds.
   4If a city proposes to carry out a general corporate purpose
5using funds from the issuance of general obligation bonds,
6generally the issuance of such bonds must first be approved at
7election. Current law establishes an exception by providing
8that a city, in lieu of calling an election, may institute
9proceedings for the issuance of bonds for a general municipal
10purpose by notice and publication of the proposal to issue
11the bonds that includes a notice of the right to petition for
12an election, subject to the following bond amount and city
13population limitations: (1) in cities having a population
14of 5,000 or less, in an amount of not more than $400,000;
15(2) in cities having a population of over 5,000 and not over
1675,000, in an amount of not more than $700,000; and (3) in
17cities having a population of over 75,000, in an amount of
18not more than $1 million. However, if at any time before the
19date fixed for taking action for the issuance of the bonds, a
20valid petition is filed asking that the question of issuing the
21bonds be submitted to the registered voters of the city, the
22city council shall either by resolution declare the proposal
23to issue the bonds to have been abandoned or shall direct the
24county commissioner of elections to call a special election
25upon the question of issuing the bonds.
   26The bill increases the bond amount limitations for each of
27the city population categories to the following amounts: (1)
28in counties having a population of 5,000 or less, in an amount
29of not more than $800,000; (2) in cities having a population
30of over 5,000 and not over 75,000, in an amount of not more
31than $1.4 million; and (3) in cities having a population of
32over 75,000, in an amount of not more than $2 million. In
33addition, the bill provides for such bond amount limitations
34to be adjusted and published annually by the department of
35management based on a specified consumer price index and
-2-1requires each city’s population to be determined based on the
2most recent population estimate produced by the United States
3census bureau.
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