Bill Text: IA SF365 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the voter-approved physical plant and equipment levy by authorizing school districts to exceed the statutory levy rate limit following the refunding or refinancing of certain loan agreements and including effective date provisions. (Formerly SF 301; see SF 485.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-03-26 - Passed subcommittee. [SF365 Detail]

Download: Iowa-2015-SF365-Introduced.html

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Senate File 365 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON EDUCATION

                                 (SUCCESSOR TO SF 301)

                                      A BILL FOR

  1 An Act relating to the voter=approved physical plant and
  2    equipment levy by authorizing school districts to exceed
  3    the statutory levy rate limit following the refunding
  4    or refinancing of certain loan agreements and including
  5    effective date provisions.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 298.2, subsection 1, Code 2015, is
  1  2 amended to read as follows:
  1  3    1.  a.  A physical plant and equipment levy of not exceeding
  1  4 one dollar and sixty=seven cents per thousand dollars of
  1  5 assessed valuation in the district is established except as
  1  6 otherwise provided in this subsection. The physical plant
  1  7 and equipment levy consists of the regular physical plant
  1  8 and equipment levy of not exceeding thirty=three cents per
  1  9 thousand dollars of assessed valuation in the district and
  1 10 a voter=approved physical plant and equipment levy of not
  1 11 exceeding one dollar and thirty=four cents per thousand
  1 12 dollars of assessed valuation in the district. However, the
  1 13 voter=approved physical plant and equipment levy may consist
  1 14 of a combination of a physical plant and equipment property
  1 15 tax levy and a physical plant and equipment income surtax as
  1 16 provided in subsection 4 with the maximum amount levied and
  1 17 imposed limited to an amount that could be raised by a one
  1 18 dollar and thirty=four cent property tax levy.
  1 19    b.  For school budget years beginning on or after July 1,
  1 20 2015, a school district may by resolution of the board of
  1 21 directors adopted prior to April 15 preceding the budget year
  1 22 impose a physical plant and equipment levy at a rate in excess
  1 23 of the levy rate limitations under paragraph "a" if the board
  1 24 has refunded or refinanced a loan agreement entered into under
  1 25 section 297.36 and such refunding or refinancing complies with
  1 26 the maturity period authorized under section 297.36, subsection
  1 27 1, paragraph "c", and results in a lower amount of interest on
  1 28 the amount of the loan agreement.  However, the rate imposed
  1 29 by a school district under this paragraph shall not exceed the
  1 30 rate imposed during the budget year in which the loan agreement
  1 31 was refunded or refinanced. Authorization to exceed the levy
  1 32 rate limitations of paragraph "a" shall terminate upon the
  1 33 maturity of the loan agreement after refunding or refinancing.
  1 34 Upon adoption of the resolution under this paragraph "b", the
  1 35 board shall comply with the requirements of section 297.36,
  2  1 subsection 1, paragraph "b".
  2  2    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2  3 immediate importance, takes effect upon enactment.
  2  4                           EXPLANATION
  2  5 The inclusion of this explanation does not constitute agreement with
  2  6 the explanation's substance by the members of the general assembly.
  2  7    Current Code section 298.2 authorizes a physical plant and
  2  8 equipment levy of not exceeding $1.67 per $1,000 of assessed
  2  9 valuation in the district. The physical plant and equipment
  2 10 levy consists of the regular physical plant and equipment levy
  2 11 of not exceeding $0.33 per $1,000 of assessed valuation in the
  2 12 district and a voter=approved physical plant and equipment
  2 13 levy of not exceeding $1.34 per $1,000 of assessed valuation
  2 14 in the district. However, the voter=approved physical plant
  2 15 and equipment levy may consist of a combination of a physical
  2 16 plant and equipment property tax levy and a physical plant and
  2 17 equipment income surtax. In anticipation of revenues received
  2 18 from the physical plant and equipment levy, Code section 297.36
  2 19 authorizes school districts to borrow money and enter into loan
  2 20 agreements.
  2 21    This bill provides that for school budget years beginning
  2 22 on or after July 1, 2015, a school district may by resolution
  2 23 of the board of directors adopted prior to April 15 preceding
  2 24 the budget year impose a physical plant and equipment levy at a
  2 25 rate in excess of the levy rate limitations under Code section
  2 26 298.2 if the board has refunded or refinanced a loan agreement
  2 27 entered into under Code section 297.36 and such refunding or
  2 28 refinancing complies with the maturity period authorized by
  2 29 voters and results in a lower amount of interest on the amount
  2 30 of the loan agreement.  The bill provides, however, that the
  2 31 rate imposed by a school district under the provisions of the
  2 32 bill shall not exceed the rate imposed during the budget year
  2 33 in which the loan agreement was refunded or refinanced. The
  2 34 authorization to exceed the levy rate limitations terminates
  2 35 upon the maturity of the loan agreement after refunding or
  3  1 refinancing.  After adoption of the resolution to exceed the
  3  2 levy rate limits, the bill requires the board of directors
  3  3 to comply with Code section 297.36(1)(b) relating to the
  3  4 certification of amounts to the county auditor.
  3  5    The bill takes effect upon enactment.
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