§ 384.4 — Debt service fund

Iowa § 384.4

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

Text

1. A city shall establish a debt service fund and shall certify taxes to be levied for the debt
service fund in the amount necessary to pay:
a. Judgments against the city, except those authorized by state law to be paid from other
funds.
b. Interest as it becomes due and the amount necessary to pay, or to create a sinking fund
to pay, the principal at maturity of all general obligation bonds issued by the city.
c. Payments required to be made from the debt service fund under a lease or
lease-purchase agreement.
d. Payments required to be made from the debt service fund under a loan agreement.
e. Payments authorized to be made from the debt service fund to a flood project fund
under section 418.14, subsection 4.
2. Moneys pledged or available to service general obligation bonds, and received from
sources other than property taxes, must be deposited in the debt service fund.
3. If a final judgment is entered against a city with a population of five hundred or less
for an amount in excess of eighty-eight thousand dollars over and above what is covered
by liability insurance, such city may spread the budgeting and payment of that portion not
covered by insurance over a period of time not to exceed ten years. Interest shall be paid by
the city on the unpaid balance. This subsection shall only apply to final judgments entered
but not fully satisfied prior to March 25, 1976.
4. The taxes realized from the tax levy imposed under section 346.27, subsection 22, for a
joint county-city building shall be deposited into a separate account in the city’s debt service

fund for the payment of the annual rent and shall be disbursed pursuant to section 346.27,
subsection 22.

Legislative History

[C97, §894; SS15, §879-s, 894; C24, 27, 31, 35, 39, §6211, 6603; C46, 50, §404.5, 416.132; C54, 58, 62, 66, 71, 73, §404.13; C75, 77, 79, 81, §384.4]