I-1 - Preliminary Official Statement Series 2021A Refunding

replacement tax revenues and the property tax revenues that it would have otherwise collected from the utilities). It is possible that the general obligation debt capacity of the County could be adjudicated to be proportionately reduced in future years if utility property were determined to be other than “taxable property” for purposes of computing the County’s debt limit under Article XI of the Constitution of the State of Iowa. There can be no assurance that such legislation will not (i) operate to reduce the amount of debt the County can issue or (ii) adversely affect the County’s ability to levy taxes in the future for the payment of the principal of and interest on its outstanding debt obligations. Tax Levies and Collections Property is assessed on a calendar year basis and valued as of January 1 of each year. Property owners are notified by the following April 15 if there has been any increase or decrease in valuation of the property. Assessments as of January 1, 2020 are used to determine tax levies and tax rates for collection in the fiscal year beginning July l, 2021. Taxes are collected on a fiscal year running July 1 through June 30. A county collects all tax levies within its jurisdiction and remits, by the 10th of each month, the amount collected through the last day of the preceding month to underlying units of government. Property tax payments are made at the office of each county treasurer in full or one-half by September 30 and March 31, pursuant to the Code of Iowa, Sections 445.36 and 445.37. Where the first half of any property tax has not been paid by October 1, such installment becomes delinquent. If the second installment is not paid, it becomes delinquent on April 1. Delinquent taxes are subject to a penalty rate of 1.5% per month. If taxes are not paid when due, the property may be offered at the regular tax sale on the third Monday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the property, and funds so received are applied to the payment of taxes. A property owner may redeem from the regular tax sale, but failing redemption within two years the tax sale purchaser is entitled to a deed which in general conveys the title free and clear of all liens except future installment of taxes and assessments. For properties that have previously been advertised, offered for one year or more, and remain unsold for want of bidders, a public sale is held which results in the county acquiring a tax sale certificate on such properties. After twelve months’ time, and after proper notification of any interested parties, the county is issued the deed. The county may then resell the property for whatever price the market will bear and the proceeds of the sale are credited to the county general fund. The sale eliminates liens of past due installments of taxes and assessments but the property remains subject to future installments. DEBT LIMITATIONS Article XI, Section 3 of the Constitution of the State of Iowa limits the amount of debt outstanding at any time of any county, municipality, school district or other political subdivision to no more than 5% of the actual value, as shown by the last certified state or county tax list, of all taxable property within such county, municipality, school district or other political subdivision. For the purpose of computing the debt limitation, the term “actual value” is the actual value of taxable property without application of any percentage reduction or rollback, and after deduction of the military exemption on taxable property. [remainder of page left blank intentionally] A-8