260C.22 - FACILITIES LEVY BY VOTE -- BORROWING -- TEMPORARY CASH RESERVE LEVY.
260C.22 FACILITIES LEVY BY VOTE -- BORROWING --
TEMPORARY CASH RESERVE LEVY.
1. a. In addition to the tax authorized under section
260C.17, the voters in a merged area may at the regular school
election or at a special election held on the second Tuesday in
September of the even-numbered year vote a tax not exceeding twenty
and one-fourth cents per thousand dollars of assessed value in any
one year for a period not to exceed ten years for the purchase of
grounds, construction of buildings, payment of debts contracted for
the construction of buildings, purchase of buildings and equipment
for buildings, and the acquisition of libraries, for the purpose of
paying costs of utilities, and for the purpose of maintaining,
remodeling, improving, or expanding the community college of the
merged area. If the tax levy is approved under this section, the
costs of utilities shall be paid from the proceeds of the levy. The
tax shall be collected by the county treasurers and remitted to the
treasurer of the merged area as provided in section 331.552,
subsection 29. The proceeds of the tax shall be deposited in a
separate and distinct fund to be known as the voted tax fund, to be
paid out upon warrants drawn by the president and secretary of the
board of directors of the merged area district for the payment of
costs incurred in providing the school facilities for which the tax
was voted.
b. In order to make immediately available to the merged area
the proceeds of the voted tax hereinbefore authorized to be levied,
the board of directors of any such merged area is hereby authorized,
without the necessity for any further election, to borrow money and
enter into loan agreements in anticipation of the collection of such
tax, and such board shall, by resolution, provide for the levy of an
annual tax, within the limits of the special voted tax hereinbefore
authorized, sufficient to pay the amount of any such loan and the
interest thereon to maturity as the same becomes due. A certified
copy of this resolution shall be filed with the county auditors of
the counties in which such merged area is located, and the filing
thereof shall make it a duty of such auditors to enter annually this
levy for collection until funds are realized to repay the loan and
interest thereon in full. Said loan must mature within the number of
years for which the tax has been voted and shall bear interest at a
rate or rates not exceeding that permitted by chapter 74A. Any loan
agreement entered into pursuant to authority herein contained shall
be in such form as the board of directors shall by resolution provide
and the loan shall be payable as to both principal and interest from
the proceeds of the annual levy of the voted tax hereinbefore
authorized, or so much thereof as will be sufficient to pay the loan
and interest thereon. In furtherance of the foregoing the board of
directors of such merged area may, with or without notice, negotiate
and enter into a loan agreement or agreements with any bank,
investment banker, trust company, insurance company or group thereof,
whereunder the borrowing of the necessary funds may be assured and
consummated. The proceeds of such loan shall be deposited in a
special fund, to be kept separate and apart from all other funds of
the merged area, and shall be paid out upon warrants drawn by the
president and secretary of the board of directors to pay the cost of
acquiring the school facilities for which the tax was voted.
c. If the boundary lines of a merged area are changed, the
levy of the annual tax provided in this section sufficient to pay the
amount due for a loan agreement and the interest on the loan
agreement to maturity shall continue in any territory severed from
the merged area until the loan with interest on the loan has been
paid in full.
d. Nothing herein contained shall be construed to limit the
authority of the board of directors to levy the full amount of the
voted tax, but if and to whatever extent said tax is levied in any
year in excess of the amount of principal and interest falling due in
such year under any loan agreement, the first available proceeds
thereof, to an amount sufficient to meet maturing installments of
principal and interest under the loan agreement, shall be paid into
the sinking fund for such loan before any of such taxes are otherwise
made available to the merged area for other school purposes, and the
amount required to be annually set aside to pay the principal of and
interest on the money borrowed under such loan agreement shall
constitute a first charge upon all of the proceeds of such annual
special voted tax, which tax shall be pledged to pay said loan and
the interest thereon.
e. This law shall be construed as supplemental and in
addition to existing statutory authority and as providing an
independent method of financing the cost of acquiring school
facilities for which a tax has been voted under this section and for
the borrowing of money and execution of loan agreements in connection
therewith and shall not be construed as subject to the provisions of
any other law. The fact that a merged area may have previously
borrowed money and entered into loan agreements under authority
herein contained shall not prevent such merged area from borrowing
additional money and entering into further loan agreements provided
that the aggregate of the amount payable under all of such loan
agreements does not exceed the proceeds of the voted tax. All acts
and proceedings heretofore taken by the board of directors or by any
official of any merged area for the exercise of any of the powers
granted by this section are hereby legalized and validated in all
respects.
2. The proceeds of the tax voted under subsection 1, paragraph
"a", prior to July 1, 1987, shall be used for the purposes for
which it was approved by the voters and may be used for the purpose
of paying the costs of utilities.
3. a. In addition to the tax authorized under section
260C.17, the board of directors of an area school may certify for
levy by March 15, 1982, and March 15, 1983, a tax on taxable property
in the merged area at rates that will provide total revenues for the
two years equal to five percent of the area school's general fund
expenditures for the fiscal year ending June 30, 1980, in order to
provide a cash reserve for that area school. As nearly as possible,
one-half the revenue for the cash reserve fund shall be collected
during each year.
b. The revenues derived from the levies shall be placed in a
separate cash reserve fund. Moneys from the cash reserve fund shall
only be used to alleviate temporary cash shortages. If moneys from
the cash reserve fund are used to alleviate a temporary cash
shortage, the cash reserve fund shall be reimbursed immediately from
the general fund of the community college as funds in the general
fund become available, but in no case later than June 30 of the
current fiscal year, to repay the funds taken from the cash reserve
fund.
4. a. The board of directors of any merged area that failed
to certify for levy under subsection 3 by March 15, 1982, and March
15, 1983, may certify for levy by April 15, 1997, and April 15, 1998,
a tax on taxable property in the merged area at rates that will
provide total revenues for the two years equal to five percent of the
area school's general fund expenditures for the fiscal year ending
June 30, 1995, in order to provide a cash reserve for that area
school. As nearly as possible, one-half the revenue for the cash
reserve fund shall be collected during each year.
b. The revenues derived from the levies shall be placed in a
separate cash reserve fund. Notwithstanding subsection 3, moneys
from the cash reserve fund established by a merged area under
subsection 3 or this subsection shall be used only to alleviate
temporary cash shortages. If moneys from the cash reserve fund are
used to alleviate a temporary cash shortage, the cash reserve fund
shall be reimbursed immediately from the general fund of the
community college as funds in the general fund become available, but
in no case later than June 30 of the current fiscal year, to repay
the funds taken from the cash reserve fund. Section History: Early Form
[C66, 71, 73, 75, 77, 79, 81, § 280A.22; 81 Acts, ch 88, § 1; 82
Acts, ch 1136, § 10] Section History: Recent Form
84 Acts, ch 1003, § 3; 87 Acts, ch 233, § 476, 477; 90 Acts, ch
1253, § 32
C93, § 260C.22
96 Acts, ch 1215, §30; 2008 Acts, ch 1115, §6, 21; 2009 Acts, ch
41, §263; 2009 Acts, ch 57, §76
Referred to in § 260C.15, 260C.21, 260C.34, 260C.35, 260C.38,
331.512, 331.559