M-8 - Budget Special Report - FY 2024-2025

The legislation also eliminated a number of levies cities could use to help support its general fund, including some that were voter approved and could be used for specific purposes. Below is a list of levies that can no longer be used by city governments. • Regular General Fund Levy (replaced with CGFL, see above) • Emergency Levy • Instrumental/Vocal Music Groups • Memorial Buildings • Symphony Orchestra • Cultural & Scientific Facilities • County Bridge • Mississippi or Missouri River Bridge Construction • Bridge Purchase • Contract for Use of Bridge • Aid to a Transit Company • Rent, Insurance, Maintenance of Civic Center • Operation & Maintenance of City-owned Civic Center • Planning a Sanitary Disposal Project • Levee Improvement Fund in a Special Charter City • Maintain Institution Received by Gift/Devise • City Emergency Medical District • Support Public Library Other levies that some cities utilize were not affected, including ones for debt service, pensions, employee benefits, and tort and self-insurance. More details on these can be seen here: • A city may levy for the city’s contribution under the Federal Insurance Contributions Act (FICA), the Iowa Public Employees’ Retirement System (IPERS), the Municipal Fire and Police Retirement System of Iowa (MFPRSI) and certain other employee benefits. On the state budget forms, these are shown in the special revenues fund column of the Revenues Detail (Form 631B). The expense would be shown on the Expenditures Schedule (Form 631A) under the appropriate activity in the special revenues fund (column D). Alternatively, the city may need to transfer the benefits into the general fund where the expenses are recorded. (Section 384.6) • Insurance premiums, including workers’ compensation, necessary for the operation of the city and the costs of self-insurance or risk pools may also be levied outside the CGFL limit. The levy rate is the actual cost of the premiums divided by the total property tax base. Insurance costs on projects or improvements covered by revenue bonds and insurance on proprietary fund activities may not be levied, as these activities should fund themselves. These revenues are typically credited to the general fund even though they are restricted. (Section 384.12(17)) • A city may levy to cover principal and interest payments on general obligation bonds under debt service. Provided proper procedures were followed on lease-purchase or loan agreements, the annual principal and interest payments may also be levied under debt service. The debt service levy is the dollars needed to cover the annual debt obligations divided by the total property tax base. (Section 384.4)