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