174.17 - ISSUANCE OF REVENUE BONDS -- STANDBY TAX LEVY.
174.17 ISSUANCE OF REVENUE BONDS -- STANDBY TAX
LEVY.
1. The governing body of a fair may issue bonds payable from
revenue generated by the operations of the fair event and the use or
rental of the real and personal property owned or leased by the fair.
The governing body of a fair shall comply with all of the following
procedures in issuing such bonds:
a. A fair may institute proceedings for the issuance of bonds
by causing a notice of the proposal to issue the bonds to be
published at least once in a newspaper of general circulation within
the county at least ten days prior to the meeting at which the fair
proposes to take action for the issuance of the bonds. The notice
shall include a statement of the amount and purpose of the bonds, the
maximum rate of interest the bonds are to bear, and the right to
petition for an election.
b. If at any time before the date fixed for taking action for
the issuance of the bonds, a petition signed by three percent of the
registered voters of the county is filed with the board of
supervisors, asking that the question of issuing the bonds be
submitted to the registered voters, the board of supervisors shall
either by resolution declare the proposal to issue the bonds to have
been abandoned or shall direct the county commissioner of elections
to call a special election upon the question of issuing the bonds.
The proposition of issuing bonds under this subsection is not
approved unless the vote in favor of the proposition is equal to at
least sixty percent of the vote cast. If a petition is not filed, or
if a petition is filed and the proposition of issuing the bonds is
approved at an election, the board of supervisors acting on behalf of
the fair may proceed with the authorization and issuance of the
bonds. Bonds may be issued for the purpose of refunding outstanding
and previously issued bonds under this subsection without otherwise
complying with the provisions of this subsection.
c. All bonds issued under this subsection shall be payable
solely from and shall be secured by an irrevocable pledge of a
sufficient portion of the net rents, profits, and income derived from
the operation of the fair event and the use or rental of the real and
personal property owned or leased by the fair. Bonds issued pursuant
to this section shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or
restriction, and shall not be subject to the provisions of any other
law or charter relating to the authorization, issuance, or sale of
bonds. Bonds issued under this subsection shall not limit or
restrict the authority of the fair as otherwise provided by law.
2. To further secure the payment of the bonds, the board of
supervisors may, by resolution, provide for the assessment of an
annual levy of a standby tax upon all taxable property within the
county. A copy of the resolution shall be sent to the county
auditor. The revenues from the standby tax shall be deposited in a
special fund and shall be expended only for the payment of principal
of and interest on the bonds issued as provided in this section, when
the receipt of revenues pursuant to subsection 1 is insufficient to
pay the principal and interest. If payments are necessary and made
from the special fund, the amount of the payments shall be promptly
repaid into the special fund from the first available revenues
received which are not required for the payment of principal of or
interest on bonds due. Reserves shall not be built up in the special
fund in anticipation of a projected default. The board of
supervisors shall adjust the annual standby tax levy for each year to
reflect the amount of revenues in the special fund and the amount of
principal and interest which is due in that year.
3. In order for the governing body of a fair to issue bonds under
this section, the governing body must conduct a fair event that has a
verifiable annual attendance of at least one hundred fifty thousand
persons and annual outside gate admission revenues of at least four
hundred thousand dollars. Section History: Recent Form
99 Acts, ch 204, §34; 2004 Acts, ch 1019, §21, 22