§ 386.11 — Self-supported municipal improvement district bonds

Iowa § 386.11

• Jurisdiction: Iowa
• Title IX: LOCAL GOVERNMENT
• Ch. 386: SELF-SUPPORTED MUNICIPAL IMPROVEMENT DISTRICTS

Text

1. A city may issue and sell self-supported municipal improvement district bonds at
public or private sale payable from taxes which must be levied in accordance with chapter
76. The bonds are payable from the levy of unlimited ad valorem taxes on all the taxable
property within the district through the district debt service fund authorized by section
386.10. When self-supported municipal improvement district bonds are issued and taxes are
levied in accordance with chapter 76, the taxes shall continue to be levied, until the bonds
and interest thereon are paid in full, against all of the taxable property that was included in
the district at the time of the issuance of the bonds, regardless of any subsequent removal of
any property from the district or the dissolution of the district.
2. The proceeds of the sale of the bonds may be used to pay any or all of the costs
of any improvement, or be used to pay any legal indebtedness incurred for the cost of
any improvement including bonds or warrants previously issued to pay the costs of an
improvement, or bonds may be exchanged for the evidences of such legal indebtedness.
3. Before the council may institute proceedings for the issuance of bonds, it shall proceed
in the same manner as is required for the institution of proceedings for the issuance of bonds
for an essential corporate purpose as provided in section 384.25, subsection 2 and all of the
provisions of that subsection apply to bonds issued pursuant to this section.
4. A city may issue bonds authorized by this section pursuant to a resolution adopted
at a regular or special meeting by an affirmative vote of a majority of the total members to
which the council is entitled. The proceeds of a single bond issue may be used for various
improvements.
5. The provisions of sections 384.29, 384.30, and 384.31 apply to bonds issued pursuant
to this section, except that the bonds shall be designated “municipal improvement district
bonds”.
6. No action may be brought which questions the legality of bonds issued pursuant to
this section or the power of a city to issue the bonds or the effectiveness of any proceedings
relating to the authorization and issuance of the bonds after thirty days from the time the
bonds are ordered issued by the city.

Legislative History

[C77, 79, 81, §386.11]