Debt Instruments

Print
Press Enter to show all options, press Tab go to next option
 Essential Corporate Purpose Bonds
Iowa Code Section Chapter 384 Sections 24 and 25 
Authorized Projects Traffic control devices; street lighting; sidewalks; sanitary and storm sewers; solid waste collection and disposal; bridges; legal indebtedness; joint projects with government entities; air, water, and noise pollution control; flood protection; equipping of fire, police, street, sanitation, civil defense and data base systems; cemeteries; ambulances; to improve dams already owned; improve airports already owned; improve parks already owned; improve CATV systems already owned; waterworks; insurance; dangerous buildings or nuisances; housing; emergency communication equipment; disaster relief; and reimbursement for disaster relief 
Approval Process Public Hearing; No referendum required
Considerations Subject to the City's debt limit; 20 year amortization
Revenue Sources Property Taxes; Plus abatements by Other Sources. Possible abatements include: Special Assessments, Utility Revenues, and Tax Increment

 

General Purpose Bonds
Iowa Code Section Chapter 384 Sections 24 and 26 
Authorized Projects Non-Essential Public Improvements such as: non-essential utilities or enterprises; parks and recreation; swimming pools; golf courses; municipal buildings; new dams; tree removal from private property; greenhouses; new airports; joint projects; or any other project which is necessary for the operation of the City of the health and welfare of its citizens
Approval Process

Referendum required if project cost is:

  • Greater than $400,000 (City population under 5,000)
  • Greater than $700,000 (City population 5,001-75,000)
  • Greater than $1,000,000 (City population over 75,000)

60% majority required for approval

Considerations
Referendum; Subject to the City's debt limit; 20 year amortization
Revenue Sources
Property Taxes; Plus abatements by Other Sources. Possible abatements include: Special Assessments, Utility Revenues, and Tax Increment

 

Urban Renewal (Tax Increment) Bonds (G.O. or Revenue Bonds)
Iowa Code Section Chapter 403 
Authorized Projects Any "Urban Renewal Project" within a defined TIF area 
Approval Process Public Hearing (both G.O. & Revenue Bonds); Resolution of Necessity & Approval of Urban Renewal Plan (both G.O. & Revenue Bonds); Reverse Referendum required for G.O. bonds; No reverse referendum required for revenue bonds
Considerations
Subject to the City's debt limit; Project must be within a TIF area; Revenue bonds must be repaid with TIF revenues; 20 year amortization
Revenue Sources
Tax Increment Revenues (G.O. & Revenue Bonds); Property Taxes and other abatements (G.O. bonds only)

 

Lease Purchase Contract (General Fund)
Iowa Code Section Chapter 364 Section 4 
Authorized Projects Real or personal property
Approval Process
Public hearing for personal property leases; Public hearing requirements for real property are based on the lease amount and population, similar to General Purpose Bonds requirements
Considerations
Annual payments may not exceed 10% of last certified general fund budget; subject to general fund rate limitations; Term of lease cannot exceed the economic life of the property
Revenue Sources
Debt service levy (property taxes) or General fund revenues

 

Interim Financing (Project Notes)
Iowa Code Section Chapter 76 Section 13 
Authorized Projects Any projects previously authorized 
Approval Process Public Hearing (for G.O. Bonds) 
Considerations Short-term financing issued in anticipation of bond proceeds, state or federal grants, or project revenues
Revenue Sources
Property Taxes; Plus abatements by: Special Assessments, Utility Revenues, and Tax Increment

 

Disaster Recovery Bonds
Iowa Code Section
Sections 76.1-2, 331, 384.25, 384.103, 404B.1-7 (as amended by 2009 Senate File 457)
Authorized Projects  Remediation, restoration repair, replacement and improvement of property, equipment, and public facilities damaged by a disaster
Approval Process Public Hearing; Reverse Referendum - 20% >= $3M
Considerations Must be proclaimed disaster emergency; must be issued within 10 years; 30 year amortization; Subject to debt limit
Revenue Sources Property Taxes

 

Other Financing Options
Local Option Sales Tax Bonds (G.O. or Revenue) Special Assessment Revenue Bonds Enterprise Fund Revenue Bonds
Chapter 423B, Chapter 384 Section 24A Chapter 384 Sections 37-79 Division V or Chapter 384 
Specifics will vary by issue