§ 357H.9 — Incremental property taxes

Iowa § 357H.9

• Jurisdiction: Iowa
• Title IX: LOCAL GOVERNMENT
• Ch. 357H: RURAL IMPROVEMENT ZONES

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the payment of principal of and interest on the certificates, contracts, or other obligations.
1. Certificates may be sold at public sale or at private sale at par, premium, or discount
at the discretion of the board of trustees. Chapter 75 does not apply to the issuance of these
certificates.
2. Certificates may be issued with respect to a single improvement project or multiple
projects and may contain terms or conditions as the board of trustees may provide by
resolution authorizing the issuance of the certificates. However, certificates, including
certificates to refund outstanding certificates under subsection 3, shall not be issued if the
maturity date of the certificates would be after the date the rural improvement zone is, at the
time of issuing the certificates, to be dissolved by law under section 357H.10.
3. Certificates issued to refund other certificates may be sold at public sale or at private
sale as provided in this section with the proceeds from the sale to be used for the payment
of the certificates being refunded. The refunding certificates may be exchanged in payment
anddischargeofthecertificatesbeingrefunded,ininstallmentsatdifferenttimes,oranentire
issue or series at one time. Refunding certificates may be sold or exchanged at any time on,
before, or after the maturity of the outstanding certificates to be refunded, may be issued for
the purpose of refunding a like, greater, or lesser principal amount of certificates, and may
bear a rate of interest higher or lower than, or equivalent to, the rate of interest on certificates
being renewed or refunded.
4. To further secure the payment of the certificates, the board of trustees shall, by
resolution, provide for the assessment of an annual levy of a standby tax upon all taxable
§357H.8, RURAL IMPROVEMENT ZONES 4
property within the rural improvement zone. The rate of the standby tax shall be not less
than fifty cents per thousand dollars of the assessed value of the taxable property and not
more than two dollars and fifty cents per thousand dollars of the assessed value of the
taxable property. A copy of the resolution shall be sent to the county auditor. The revenues
from the standby tax shall be deposited in a special fund and shall be expended only for the
payment of principal of and interest on the certificates issued as provided in this section,
when the receipt of tax revenues pursuant to section 357H.9 is insufficient. If payments 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 payments received which are not required
for the payment of principal of or interest on certificates due. No reserves may be built up in
the special fund in anticipation of a projected default. The board of trustees 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.
5. Before certificates, contracts, or other obligations are issued or entered into, the board
of trustees shall publish a notice of its intention, stating the amount, the purpose, and the
improvement project or projects for which the certificates, contracts, or other obligations are
to be issued or entered into. A person may, within fifteen days after the publication of the
notice, appeal the decision of the board of trustees in proposing to issue the certificates or to
enter into the contracts or other obligations to the district court in the county in which the
rural improvement zone exists. The action of the board of trustees in determining to issue the
certificates or to enter into the contracts or other obligations is final and conclusive unless the
district court finds that the board of trustees has exceeded its legal authority. An action shall
not be brought which questions the legality of the certificates, contracts, or other obligations,
the power of the board of trustees to issue the certificates or to enter into the contracts or
other obligations, the effectiveness of any proceedings relating to the authorization of the
project, or the authorization and issuance of the certificates or entrance into the contracts
or other obligations after fifteen days from the publication of the notice of intention to issue
certificates or enter into contracts or other obligations.
6. The board of trustees shall determine if revenues are sufficient to secure the faithful
performance of obligations.