§ 384.26 — General obligation bonds for general purposes

Iowa § 384.26

• Jurisdiction: Iowa
• Title IX: LOCAL GOVERNMENT
• Ch. 384: CITY FINANCE

Text

1. A city which proposes to carry out any general corporate purpose within or without its
corporate limits, and to contract indebtedness and issue general obligation bonds to provide
funds to pay all or any part of the costs of a project, must do so in accordance with the
provisions of this subchapter.
2. a. The council shall publish notice of the proposal to issue the bonds, including a
statement of the amount and purpose of the bonds, a statement of the estimated cost of
the project for which the bonds are to be issued, and an estimate of the annual increase in
property taxes as the result of the bond issuance on a residential property with an actual
value of one hundred thousand dollars. The notice shall be published as provided in section

362.3 with the minutes of the meeting at which the council adopts a resolution to call a
special election to vote upon the question of issuing the bonds. The cost of the project, as
published in the notice pursuant to this paragraph, is an estimate and is not intended to be
binding on the council in later proceedings related to the project.
b. Before the council may institute proceedings for the issuance of bonds for a general
corporate purpose, it shall call a special election to vote upon the question of issuing the
bonds. At the election the proposition must be submitted in the following form:
Shall the ................................................ (insert the name of the
city) issue its bonds in an amount not exceeding the amount of
$................ for the purpose of ........................................?
3. a. Allelectionsheldpursuanttothissectionshallbeheldonthedatespecifiedinsection
39.2, subsection 4, paragraph “d”.
b. Notice of the election must be given by publication as required by section 49.53 in a
newspaper of general circulation in the city. At the election the ballot used for the submission
ofthepropositionmustbeinsubstantiallytheformforsubmittingspecialquestionsatgeneral
elections.
4. The proposition of issuing general corporate purpose bonds is not carried or adopted
unless the vote in favor of the proposition is equal to at least sixty percent of the total vote
cast for and against the proposition at the election. If the proposition of issuing the general
corporate purpose bonds is approved by the voters, the city may proceed with the issuance
of the bonds.
5. a. Notwithstanding the provisions of subsection 2, a council may, in lieu of calling an
election, institute proceedings for the issuance of bonds for a general corporate purpose by
causing a notice of the proposal to issue the bonds, including a statement of the amount and
purposeofthebonds, togetherwiththemaximumrateofinterestwhichthebondsaretobear,
andtherighttopetitionforanelection,tobepublishedatleastonceinanewspaperofgeneral
circulation within the city at least ten days prior to the meeting at which it is proposed to take
action for the issuance of the bonds subject to the following population-based limitations,
adjusted and published annually in January by the department of management by applying
the percentage change in the consumer price index for all urban consumers for the most
recent available twelve-month period published in the federal register by the United States
department of labor, bureau of labor statistics:
(1) In cities having a population of five thousand or less, in an amount of not more than
five hundred twenty thousand dollars.
(2) Incitieshavingapopulationofmorethanfivethousandandnotmorethanseventy-five
thousand, in an amount of not more than nine hundred ten thousand dollars.
(3) In cities having a population in excess of seventy-five thousand, in an amount of not
more than one million three hundred thousand dollars.
b. Each city’s population used to determine the limitations of paragraph “a” shall be
determined by the greater of the city’s population during the most recent federal decennial
census or the most recent population estimate produced by the United States census bureau.
c. If at any time before the date fixed for taking action for the issuance of the bonds, a
petition is filed with the clerk of the city in the manner provided by section 362.4, asking that
the question of issuing the bonds be submitted to the registered voters of the city, the council
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. Notice of the election and its conduct shall be in the manner provided
in the preceding subsections of this section.
d. If no petition is filed, or if a petition is filed and the proposition of issuing the bonds is
approved at an election, the council may proceed with the authorization and issuance of the
bonds.

Legislative History

[C73, §461; C97, §727, 741-4, 852 – 855; S13, §727, 741-q, -r, -v, -w2, 850-c, -e, -f, 1306-d, -e; SS15, §696-b, 741-f, -g, -h, 879-r, -s; C24, 27, §5793 – 5795, 5800 – 5804, 5902, 6241, 6244 – 6246, 6248; C31, 35, §5793 – 5795, 5800 – 5804, 5902, 5903-c5, 6241, 6244 – 6246, 6248; C39, §5793 – 5795, 5800 – 5804, 5902, 5903.05, 6241, 6244 – 6246, 6248, 6261.1; C46, 50, §330.7, 330.8, 370.7 – 370.9, 370.15 – 370.19, 384.3, 407.5, 407.8 – 407.10, 407.12, 408.11; C54, 58, 62, 66, §330.7, 370.7, 384.3, 390.13, 407.5, 407.8 – 407.10, 407.12; C71, 73, §330.7, 370.7, 378A.11, 384.3, 390.13, 407.5, 407.8 – 407.10, 407.12, 408A.1, 408A.2, 408A.6; C75, 77, 79, 81, §384.26]