Chapter 407 Indebtedness and 408 Bonds Code of IowaCITIES AND TOWNS -INDEBTEDNESS [See note p. lli"_91, §407.4
CHAPTER 407
INDEBTEDNESS
Referred to in 11330.7. 368.48, 390.13
ADDlicable to all clues and town'
4079 Questions submitted -manner of sub-
yl;.l Limitation.
hy;.2 Limitation.
pr;:3 Purposes.
Vy, 4 Application of limitation.
p -5 Election required.
initiation of proceedings.
07.7 Election called.
10;.5 Notice.
407.1 Limitation. No county or other politi-
cal or municipal corporation shall become
indebted in any o es to anner for amouits
ntex
nary exceeding in the aggregate
one and one-fourth percent of the
actual value of the taxable property within
such corporation. The value of such property
.hall be ascertained by the last tax list previ-
ous to the incurring of the indebtedness. In-
debtedness heretofore or hereafter incurred by
a county for poor relief purposes shall not be
construed or regarded as having been incurred
for its general or ordinary purposes insofar as
said indebtedness may be incurred solely for
poor relief purposes. [S13,§1306-b; C24, 27, 31,
S5, 39,§6235; C46, 50, 54, 58, 62, 66, 71,§407.11
Referred to in §§145A.18, 280A 20, 395.25, 395.35, 441.21
Constitutional limitation, Art. xI,§3
407.2 Limitation. No county, or other polit-
ical or municipal corporation, shall become
indebted in any manner, or for any purpose to
an amount, in the aggregate, exceeding five
percent of the actual value of the property
within such county or corporation, to be ascer-
tained by the last state and county tax lists
previous to the incurring of such indebtedness.
[C46, 50, 54,458, 62, 66, 71,§407.21
Referred to in §441.21 ch 220,§I9
Constitutionality, 49GA,
407.3 Purposes. Cities and towns when
authorized to acquire the following named
public utilities and other improvements may
incur indebtedness for the purpose of:
1. Purchasing, erecting, extending, recon.
structing, or maintaining and operating water-
works, gasworks, electric light and power
Plants , or the necessary transmission lines
therefor, and heating plants.
Referred to in §407.6(1)
2. Erecting and equipping community cen-
ter houses and recreation grounds.
3. Acquiring lands and establishing, con-
structing and equipping a recreation building,
Juvenile playgrounds, swimming pools, and
recreation centers thereon or on lands already
owned or to be leased by the city or town.
Referred to in 1401.6(1) remodeling, Or
4. Constructing, purchasing,
Purchasing and remodeling city and town halls,
mission.
407.10 Majorities required.
407.11 Limitation.
407.12 Issuance of bonds.
407.13 Maturity of bonds -interest.
407.14 Payment of bonds.
407.15 Construction.
407.16 Municipal auditorium improvements.
jails, police stations, fire stations, or garages
for the storage, repair and servicing of city or
town motor vehicles and other equipment and
acquiring sites therefor.
5. Erecting, purchasing, remodeling, or pur-
chasing and remodeling a building or buildings
and purchasing sites, books and other library
materials, equipment, and furniture for a pub-
lic library.
6. Purchasing sites for hospitals or sites
with a building or buildings and ^^_^.'-'-"-= -
or reconstructing buildings to be used for
hospitals.
Referred to in §407.6(1)
7. Purchasing or constructing dams across
streams for any proper municipal purpose.
8. Purchasing sites for any of the public
utilities and other improvements named in
subsections 1 through 7 hereof.
9. Constructing, purchasing, repairing, im-
proving, remodeling, enlarging, and equipping
a building for use as a city or town hall, jail,
police station, fire station, or library, or any
combination of said uses, and procuring a site
therefor.
1. [513,§1306-b; C24, 27, 31, 35, 39,§6239; C46,.
50, 54, 58, 62, 66, 71,§407.31
2. [C24, 27, 31, 35, 39,§6239; C46, 50, 54, 58, 62,
66, 719§407.31
3. [SS15,§879-s; C24, 27, 31, 35, 39,§6239; C46,
50, 54, 58, 62, 66. 71;§407.31
4. [SS15,§741-f; C24, 27, 31, 35, 39,§6239; C46,
50, 54, 58, 62, 66, 719§407.31
5. [C97,§732; 513,§732; C24, 27, 31, 35, 39,§6239;
C46, 50, 54, 58, 62, 66, 71,§407.31
6. [513,§741-r; C24, 27, 31, 35, 39,§6239; C46,
50, 54, 58, 62, 66, 71,§407.31
7. [C27, 31, 35, 39,§6239; C46, 50, 54, 58, 62,
66, 71,§407.31
8. [C66, 71,§407.31
9. [C71,§407.31
Referred to in §§407.4, 407.6(1), 407.9
Subsection 2, Code 1966, repealed by 63GA, ch 1191,§16
407.4 Application of limitation. No indebt-
edness for the extraordinary purposes men-
tioned in section 407.3 shall be charged against
§407.4, CITIES AND TOWNS -INDEBTEDNESS [See note p. 1629]
or counted as a part of the one and one-fourth
percent available for general ordinary pur-
poses until the other three and three -fourths
percent of the five percent of indebtedness per.
mitted by statute has been exhausted.- [S13,
§1306-b; C24, 27, 31, 35, 39,§6240; C46, 50, 54, 58,
62, 66, 71,§407.41
Constitutional provision, Art xI,j3
407.5 Election required. No such indebted-
ness shall be incurred until authorized by an
election. [C73,§461; C97,§727• 513,§§727, 741-r;
SS15,§§696-b, 741-g, 879-r; C24, 27, 31, 35, 39,
§6241; C46, 50, 54, 58, 62, 66, 71,§407.51
407.6 Initiation of proceedings. The pro-
ceedings to call such an election may be insti-
tuted by the council, except that before an
election may be called for any of the following
Purposes a petition shall be filed with the
council, requesting that such action be taken:
1. For any of the purposes mentioned in
subsections 1, 3, and 6 of section 407.3, the
petition shall be signed by qualified electors
of the city or town equal in number to twenty-
five percent of those who voted at the last
regular municipal election.
2. For the establishment of community cen-
ter houses and recreation grounds, it shall be
signed by fifteen percent of the resident free-
holders of the district within which the same
is to be constructed.
5C24 27
31, 35,39,§6242; C46350c54, 58568766,�71,§4076]
2. [C24, 27, 31, 35, 39,§6242; C46, 50, 54, 58,
62, 66, 71,§407.61
;vI.e council on receipt
Of
I., calleu. Tn
any such petition shall at the next regular
meeting call a special election, fixing the time
and place thereof, or may submit the proposi-
tion as a special question at the next regular
municipal election. The council may reject a
Petition for a community center, or change the
area of any district petitioned for. [513,§1306.
d; C24, 27, 31, 35, 39,§6243 C46, 50, 54, 58, 62,
66, 71,§407.71
407.8 Notice. It shall give notice of any
election held under the provisions of this chap.
ter by publication once each week for three
consecutive weeks in some newspaper pub-
lished in the city or town, or if none be
published therein, in a newspaper published in
the county and of general circulation in the
City or town. The election shall be held on a
day not less than five nor more than twenty
days after the last publication of notice. [513,
§1306-d; SS15,§741-h; C24, 27, 31, 35, 39,§6244;
C46, 50, 54, 58, 62, 66, 71,§407.81
407.9 Questions subndtted-manner of sub-
mission. Each proposition mentioned in sec-
tion 407.3 shall be submitted as a separate
proposition; provided however, that a proposi-
tion submitted pursuant to the provisions of
section 407.3, subsection 9, contemplating any
combination of the uses mentioned therein,
1824 1 1825
shall be submitted as and considered to be a
separate and single proposition. More than
one of such propositions may be so submitted
at the same election, and as a part of each
proposition so submitted there shall be stated
on the ballot: The amount of indebtedness to
be contracted, if any; the amount of bonds to
be issued, if any; the annual rate of tax to be
levied, if any, for the payment of such bonds
and interest thereon. The form of the ballot
shall be substantially as follows:
Shall (Here name city or town)
(Here state the particular proposition to be
voted upon) and contract indebtedness for
such purpose not exceeding $....... and issue
bonds for such purpose not exceeding $.......
and levy tax annually upon the
taxable property in (Here name of YES ❑
City or town), not exceeding ......
mills per annum for the payment NO ❑
of such bonds and the interest
thereon?
[513,§1306-d; SS15,§§741-h, 879-r; C24, 27, 3135
39,§6245; C46, 50, 54, 58, 62, 66, 71,§407.91 , ,
407.10 Majorities required. If the vote in
favor of any such proposition is equal to at
least sixty percent of the total vote cast for
and against said proposition at said election.
said proposition shallbe deemed carried and
adopted, and the city or town shall be
authorized to contract the indebtedness and
issue the bonds and levy the tax as specified
in said proposition. [C97,§727; 513,§§727, 741.
q,-v, 1306-e; SS15,§§696-b, 741-g, 879-r; C24, 27,
31, 35, 39,§6246; C46, 50, 54, 58, 62, 66, 71,§407.101
Vote required to authorise bonds, 175.1
407.11 Limitation. If a question for the
establishment of community center houses or
juvenile playgrounds fails to secure the requi-
site majority it shall not again be submitted
at an election for two years. [SS15,§879-r; C24,
27, 31, 35, 39,§6247; C46, 50, 54, 58, 62, 66, 71,
§407,111
407.12 Issuance of bonds. If the municipal.
ity is authorized to incur the indebtedness, the
council shall issue bonds and make provisions
for the payment thereof with interest. [513,
§§741-r,-v; SS15,§§696.b, 7414, 879-s; C24, 27, 31,
35, 39,§6248; C46, 50, 54, 58, 62, 66, 71,§407.12]
407.13 Maturity of bonds -interest. Bonds
issued under the provisions of this chapter
shall bear interest at the rate of not more than
seven percent per annum and shall become due
in not more than twenty years after issuance
and may be issued serially. [C97,§726; 513.
§§741-r, 1306-e; SS151§726; C24, 27, 31, 35, 39,
§6249; C46, 50, 54, 58, 62, 66, 71,§407.131
maturity and payment of bonds, ch 76
See 63GA, eh 87,1 60
407.14 Payment of bonds. Bonds for gar•
bage disposal plants shall be paid from the
sanitation fund of the city or town, but other
bonds shall be paid from the debt service
fund. [C97,§881; 513,§741-q; SS15§881; C24, 27,
31, 35, 39,§6250, C46, 50, 54, 58, 62, 66, 71,§407.141
ERS! IB'3
CITIES AND TOWNS -BONDS [See note p. 16291, §4083
407.15 Construction. Nothing in this chap.
ter shall be construed to repeal chapter 296 or
23 being applicable to bonds issued under
Fection 398.6. [S13,§1306-f; C24, 27, 31, 35, 39,
16:51; C46, 50, 54, 58, 62, 66, 71,§407.15j
407.16 Municipal auditorium improvements.
Any city or town that has heretofore estab-
lished or hereafter establishes a municipal
auditorium may thereafter acquire and con
struct improvements and betterments thereto,
including the installation of air conditioning
facilities, and in order to pay the cost thereof
may incur indebtedness and issue and sell its
bonds when authorized at an election called
by the council and held in the manner pre.
scribed by this chapter. [C62, 66, 71,§407.161
CHAPTER 408
BONDS
Referred to in 11357B.12, 869.45, 893.8, 399.7
ADD6esble to ell cities and towns
0 82 Form' . Funding.
108408.8 Delivery -cancellation -sale -proceeds.
408.4 .3 - 408.9 Taxes to pay.
408.4 Signing. 408.10 to 408.14 Repealed by 55GA, ch 194,§1. Resolution required. 408.15 Limitation of action.
408. 406 Registration. 408.16 Repealed by 55GA, ch 194,§2.
403.7 Sale or exchange. .E Monthly reports. 408.17 Street bonds and taxes.
408.1 Funding. Cities and towns may settle,
adjust, renew, or extend the legal indebtedness
they may have, or any part thereof, in the sum
of one thousand dollars or upwards, whether
evidenced by bonds, warrants, or judgments,
and may fund or refund the same and issue
coupon bonds therefor; but no bonds shall be
Issued under this section for any other purpose
than is above authorized. [C97,§905; C24, 27, 31,
3:i, 39,§6252; C46, 50, 54, 58, 62, 66, 71,§408.11
Maturity and payment of bonds, ch 76
408.2 Form. Such bonds shall be issued in
sums of not less than one hundred dollars nor
more than ten thousand dollars each, running
not more than twenty years, bearing interest
not exceeding seven percent per annum pay.
able annually or semiannually, and shall be
substantially in the following form, but sub-
ject to changes that will conform them to the
resolution of the council, to wit:
The city (or town) of .................. in
the state of Iowa, for value received promises
to pay to bearer . dollars, lawful
money of the United States of America, on
the
date hereof until paid at thearate uof fromper-
cent per annum, payable ...... annuallyon
the first day of and
"ch year, on presentation and surrender of
the Interest coupons hereto attached; both prin-
cipal and interest payable at ................
This bond is issued by the city (or town)
or of .•••....•..... pursuant to the provisions
section ., chapter ... ., of the Code
of Iowa, and in conformity to a resolution of
the council of said city (or town) duly passed,
nn the ..... day of ...... ............ And
It Is hereby represented and certified that all
things requisite according to the laws and
Con,ctitntinn of the state of Iowa to be done
precedent to the lawful issue of this bond
have been performed as required by law, and
that the total indebtedness of said city, includ.
ing this bond, does not exceed the constitution-
al or statutory limitations.
In testimony whereof said city (or town) by
its council has caused this bond to be signed
by its mayor and attested by its auditor (or
clerk), with the seal of said city (or town) at-
tached, this ........ day of ..................
..........................
Mayor of the city (or town)..
Attest: of .......................
Clerk of the city (or town) of ..........
(Form of Coupon.)
The treasurer of the city (or town) of
..........I Iowa, will pay to bearer ..........
dollars, on ............. at ............. for
.......... annual interest on its .......
bond, dated .............. No. ..............
Attest:
..................................
Clerk of the city (or town) of ...............
[C97,§906; C24, 27, 31, 35, 39,§6253; C46, 50, 54,
58, 62, 66, 71,§408.21
Referred to in 1420,158
See 63GA, eh 87,§60
408.3 Signing. Said bonds shall be num.
bered consecutively, signed by the mayor, and
attested by the auditor or clerk as the case
may be, with the seal of the city (or town)
affixed. The interest coupons attached thereto
shall be attested by the signature of the clerk,
or a facsimile thereof. [C97,§907; C24, 27, 31,
35, 39,§6254; C46, 50, 54, 58, 62, 66, 71,§ 108.3j