MINUTES PROVIDING FOR PASSAGE OF AN ORDINANCE ESTABLISHING AN URBAN RENEWAL TAX INCREMENT AREA

Swisher Housing Urban Renewal Area

442718-3

Swisher, Iowa

March 13, 2006

The City Council of the City of Swisher, Iowa, met on March 13, 2006 at 7:00 o’clock p.m., at the City Hall, in the City.

The Mayor presided and the roll was called showing members present and absent, as follows:

Present: K. Feldman, B. Hoss, T. Perkins, G. Svec, L. Svec

Absent: None

Council Member B. Hoss introduced an ordinance entitled “Ordinance No. 207. An Ordinance providing for the division of taxes levied on taxable property in the Swisher Housing Urban Renewal Area, pursuant to Section 403.19 of the Code of Iowa.”

It was moved by Council Member B. Hoss and seconded by Council Member K. Feldman that the aforementioned ordinance be adopted. The Mayor put the question on the motion and the roll being called, the following named Council Members voted:

Ayes: K. Feldman, B. Hoss, T. Perkins, G. Svec, L. Svec

Nays: None

Whereupon, the Mayor declared the motion duly carried and declared that said ordinance had been given its initial passage.0

It was moved by Council Member G. Svec and seconded by Council Member L. Svec that the statutory rule requiring said ordinance to be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended. The Mayor put the question on the motion and the roll being called, the following named Council Members voted:

Ayes: K. Feldman, B. Hoss, T. Perkins, G. Svec, L. Svec

Nays: None

Whereupon, the Mayor declared the motion duly carried.

It was moved by Council Member B. Hoss and seconded by Council Member L. Svec that the ordinance entitled “Ordinance No. 207. An Ordinance providing for the division of taxes levied on taxable property in the Swisher Housing Urban Renewal Area, pursuant to Section 403.19 of the Code of Iowa,” now be put upon its final passage and adoption. The Mayor put the question on the final passage and adoption of said ordinance and the roll being called, the following named Council Members voted:

Ayes: K. Feldman, B. Hoss, T. Perkins, G. Svec, L. Svec

Nays: None

Whereupon, the Mayor declared the motion duly carried and said ordinance duly adopted, as follows:

ORDINANCE NO. 207

An Ordinance Providing for the Division of Taxes Levied on Taxable Property in the Swisher Housing Urban Renewal Area, Pursuant to Section 403.19 of the Code of Iowa

BE IT ENACTED by the Council of the City of Swisher, Iowa:

Section 1. Purpose. The purpose of this ordinance is to provide for the division of taxes levied on the taxable property in the Swisher Housing Urban Renewal Area, each year by and for the benefit of the state, city, county, school districts or other taxing districts after the effective date of this ordinance in order to create a special fund to pay the principal of and interest on loans, moneys advanced to or indebtedness, including bonds proposed to be issued by the City of Swisher to finance projects in such area.

Section 2. Definitions. For use within this ordinance the following terms shall have the following meanings:

“City” shall mean the City of Swisher, Iowa.

“County” shall mean Johnson County, Iowa.

“Urban Renewal Area” shall mean the Swisher Housing Urban Renewal Area, the boundaries of which are set out below, such area having been identified in the Urban Renewal Plan approved by the City Council by resolution adopted on March 13, 2006:

A portion of the west half of the northeast one-quarter of Section 8, Township 81 North, Range 7 West of the Fifth Principal Meridian, Johnson County, Iowa, the boundaries of which are described as follows:

Beginning at the northeast corner of the northwest one-quarter of the northeast one-quarter of Section 8, Township 81 North, Range 7 West of the Fifth Principal Meridian, Johnson County, Iowa; thence S00°34’49"W along the east line of the west one-half of the northeast one-quarter of said Section 8, a distance of 1986.28 feet to the north line of Lot One, Marak’s Subdivision as recorded in Book 29, Page 64, of the Johnson County Recorder’s Office; thence S89°47’35"W along the north line of said Lot One, 221.85 feet to the northwest corner of said Lot One; thence S00°34’20"W along the west line of said Lot One 3.22 feet to the north line of Auditor’s Parcel 2001-130 as recorded in Book 43, Page 291 of the Johnson County Recorder’s Office, thence S89°45’27"W along the north line of said Auditor’s Parcel, 1194.90 feet to the west line of the northeast one-quarter of said Section 8; thence N00°31’50"E along said west line 1613.41 feet to the southwest corner of Lot 1, Walmar Subdivision, as recorded in Book 41, Page 243, of the Johnson County Recorder’s Office; thence N89°59’53"E along the south line of said Lot 1, a distance of 854.89 feet to the southeast corner of said Lot 1; thence N00°31’50"E along the east line of said Lot 1, a distance of 381.71 feet to the north line of said Section 8; thence N89°59’53"E along said north line, 518.52 feet to the point of beginning, said parcel containing 55.26 acres and subject to easements and restrictions of record.

Section 3. Provisions for Division of Taxes Levied on Taxable Property in the Urban Renewal Area. After the effective date of this ordinance, the taxes levied on the taxable property in the Urban Renewal Area each year by and for the benefit of the State of Iowa, the City, the County and any school district or other taxing district in which the Urban Renewal Area is located, shall be divided as follows:

(a) that portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts upon the total sum of the assessed value of the taxable property in the Urban Renewal Area, as shown on the assessment roll as of January 1 of the calendar year preceding the first calendar year in which the City certifies to the County Auditor the amount of loans, advances, indebtedness, or bonds payable from the special fund referred to in paragraph (b) below, shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for said taxing district into which all other property taxes are paid. For the purpose of allocating taxes levied by or for any taxing district which did not include the territory in the Urban Renewal Area on the effective date of this ordinance, but to which the territory has been annexed or otherwise included after the effective date, the assessment roll applicable to property in the annexed territory as of January 1 of the calendar year preceding the effective date of the ordinance which amends the plan for the Urban Renewal Area to include the annexed area, shall be used in determining the assessed valuation of the taxable property in the annexed area.

(b) that portion of the taxes each year in excess of such amounts shall be allocated to and when collected be paid into a special fund of the City to pay the principal of and interest on loans, moneys advanced to or indebtedness, whether funded, refunded, assumed or otherwise, including bonds issued under the authority of Section 403.9(1), of the Code of Iowa, incurred by the City to finance or refinance, in whole or in part, projects in the Urban Renewal Area, and to provide assistance for low and moderate-income family housing as provided in Section 403.22, except that taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to Section 298.2 of the Code of Iowa, and taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the taxing district without limitation by the provisions of this ordinance. Unless and until the total assessed valuation of the taxable property in the Urban Renewal Area exceeds the total assessed value of the taxable property in such area as shown by the assessment roll referred to in subsection (a) of this section, all of the taxes levied and collected upon the taxable property in the Urban Renewal Area shall be paid into the funds for the respective taxing districts as taxes by or for said taxing districts in the same manner as all other property taxes. When such loans, advances, indebtedness, and bonds, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the Urban Renewal Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property.

(c) the portion of taxes mentioned in subsection (b) of this section and the special fund into which that portion shall be paid may be irrevocably pledged by the City for the payment of the principal and interest on loans, advances, bonds issued under the authority of Section 403.9(1) of the Code of Iowa, or indebtedness incurred by the City to finance or refinance in whole or in part projects in the Urban Renewal Area.

(d) as used in this section, the word “taxes” includes, but is not limited to, all levies on an ad valorem basis upon land or real property.

Section 4. Repealer. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed.

Section 5. Saving Clause. If any section, provision, or part of this ordinance shall be adjudged invalid or unconstitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional.

Section 6. Effective Date. This ordinance shall be effective after its final passage, approval and publication as provided by law.

Passed and approved by the Council of the City of Swisher, Iowa, on March 13, 2006.

Mayor

Attest:

City Clerk

• • • • •

There being no further business to come before the meeting, it was upon motion adjourned.

Mayor

Attest:

City Clerk