City of Marion, IA
Home MenuDebt Instruments
| 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:
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 | |||