Iowa-2015-SF365-Introduced
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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