§ 384.82 — Authority — revenue bonds — pledge orders

Iowa § 384.82

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

Text

1. a. A city may carry out projects, borrow money, and issue revenue bonds and pledge
orders to pay all or part of the cost of projects, which may include a qualified water
resource restoration project, such revenue bonds and pledge orders to be payable solely
and only out of the net revenues of the city utility, combined utility system, city enterprise,
or combined city enterprise involved in the project. The cost of a project includes the
construction contracts, interest upon the revenue bonds and pledge orders during the period
or estimated period of construction and for twelve months thereafter, or for twelve months
after the acquisition date, such reserve funds as the governing body may deem advisable in
connection with the project and the issuance of revenue bonds and pledge orders, and the
costs of engineering, architectural, technical and legal services, preliminary reports, surveys,
property valuations, estimates, plans, specifications, notices, acquisition of real and personal
property, consequential damages or costs, easements, rights-of-way, supervision, inspection,
testing, publications, printing and sale of bonds and provisions for contingencies. A city
may sell revenue bonds or pledge orders at public or private sale in the manner prescribed
by chapter 75 and may deliver revenue bonds and pledge orders to the contractors, sellers,
and other persons furnishing materials and services constituting a part of the cost of the
project in payment therefor.
b. A city may deliver its revenue bonds to the federal government or any agency thereof
which has loaned the city money for sanitary or solid waste projects, water projects or other
projects for which the government has a loan program.
2. A city may issue revenue bonds or pledge orders to refund revenue bonds, pledge
orders, and other obligations which are by their terms payable from the net revenues of
the same city utility, combined utility system, city enterprise, or combined city enterprise,
or from a city utility comprising a part of the combined utility system or a city enterprise
comprising a part of the combined city enterprise, at lower, the same, or higher rates of
interest. Upon a finding of necessity by the governing body, a city may issue revenue bonds
or pledge orders to refund general obligation bonds to the extent the general obligation
bonds were issued or the proceeds of them were expended for a city utility, city enterprise,
or a portion of a combined city utility or city enterprise. These revenue bonds or pledge
orders may be issued at lower, the same, or at higher rates of interest than the rates of
the general obligation bonds being refunded. A city may sell refunding revenue bonds or
pledge orders at public or private sale in the manner prescribed by chapter 75 and apply the
proceeds to the payment of the obligations being refunded, and may exchange refunding
revenue bonds or pledge orders in payment and discharge of the obligations being refunded.
The principal amount of refunding revenue bonds or pledge orders may exceed the principal
amount of the obligations being refunded to the extent necessary to pay a premium due
on the call of the obligations being refunded, to fund interest accrued and to accrue on the
obligations being refunded, to pay the costs of issuance of the refunding revenue bonds or

pledge orders, and to fund such reserve funds as the governing body may deem advisable in
connection with the issuance of the refunding revenue bonds or pledge orders.

Legislative History

[C31, §6134-d1; C35, §5903-f4, 6066-f6, 6134-d1, -f1; C39, §5903.15, 6066.29, 6134.01 – 6134.03; C46, §385.4, 394.6, 397.9 – 397.11; C50, §385.4, 390.9, 394.6, 397.9 – 397.11; C58, 62, 66, §385.4, 386B.10, 390.9, 394.6, 397.9 – 397.11; C71, 73, §385.4, 386B.10, 390.9, 390.16, 394.6, 397.9 – 397.11; C75, 77, 79, 81, §384.82; 81 Acts, ch 126, §1]