§ 174.17 — Issuance of revenue bonds — standby tax levy

Iowa § 174.17

• Jurisdiction: Iowa
• Title V: AGRICULTURE
• Ch. 174: COUNTY AND DISTRICT FAIRS

Text

1. The governing body of a fair may issue bonds payable from revenue generated by the
operations of the fair event and the use or rental of the real and personal property owned
or leased by the fair. The governing body of a fair shall comply with all of the following
procedures in issuing such bonds:
a. A fair may institute proceedings for the issuance of bonds by causing a notice of the
proposaltoissuethebondstobepublishedatleastonceinanewspaperofgeneralcirculation
within the county at least ten days prior to the meeting at which the fair proposes to take
action for the issuance of the bonds. The notice shall include a statement of the amount and
purpose of the bonds, the maximum rate of interest the bonds are to bear, and the right to
petition for an election.
b. If at any time before the date fixed for taking action for the issuance of the bonds, a
petition signed by three percent of the registered voters of the county is filed with the board
of supervisors, asking that the question of issuing the bonds be submitted to the registered
voters, the board of supervisors shall either by resolution declare the proposal to issue the
bonds to have been abandoned or shall direct the county commissioner of elections to call
a special election upon the question of issuing the bonds. The proposition of issuing bonds
under this subsection is not approved unless the vote in favor of the proposition is equal to
at least sixty percent of the vote cast. If a petition is not filed, or if a petition is filed and the
proposition of issuing the bonds is approved at an election, the board of supervisors acting
on behalf of the fair may proceed with the authorization and issuance of the bonds. Bonds
may be issued for the purpose of refunding outstanding and previously issued bonds under
this subsection without otherwise complying with the provisions of this subsection.
c. All bonds issued under this subsection shall be payable solely from and shall be
secured by an irrevocable pledge of a sufficient portion of the net rents, profits, and
income derived from the operation of the fair event and the use or rental of the real and
personal property owned or leased by the fair. Bonds issued pursuant to this section shall
not constitute an indebtedness within the meaning of any constitutional or statutory debt
limitation or restriction, and shall not be subject to the provisions of any other law or charter
relating to the authorization, issuance, or sale of bonds. Bonds issued under this subsection
shall not limit or restrict the authority of the fair as otherwise provided by law.
2. Tofurthersecurethepaymentofthebonds,theboardofsupervisorsmay,byresolution,
provide for the assessment of an annual levy of a standby tax upon all taxable property within
thecounty. Acopyoftheresolutionshallbesenttothecountyauditor. Therevenuesfromthe

standby tax shall be deposited in a special fund and shall be expended only for the payment
ofprincipalofandinterestonthebondsissuedasprovidedinthissection, whenthereceiptof
revenuespursuanttosubsection1isinsufficienttopaytheprincipalandinterest. Ifpayments
are necessary and made from the special fund, the amount of the payments shall be promptly
repaid into the special fund from the first available revenues received which are not required
for the payment of principal of or interest on bonds due. Reserves shall not be built up in the
special fund in anticipation of a projected default. The board of supervisors shall adjust the
annual standby tax levy for each year to reflect the amount of revenues in the special fund
and the amount of principal and interest which is due in that year.
3. Inorderforthegoverningbodyofafairtoissuebondsunderthissection, thegoverning
body must conduct a fair event that has a verifiable annual attendance of at least one hundred
fifty thousand persons and annual outside gate admission revenues of at least four hundred
thousand dollars.