LOCAL OPTION SALES AND SERVICES TAX INTERGOVERNMENTAL REVENUE SHARING AGREEMENT PURSUANT TO IOWA CODE CHAPTER 28E

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1 Return to: Preparer Information: Individual s Name Street Address City Phone LOCAL OPTION SALES AND SERVICES TAX INTERGOVERNMENTAL REVENUE SHARING AGREEMENT PURSUANT TO IOWA CODE CHAPTER 28E THIS REVENUE SHARING AGREEMENT (hereinafter the Sharing Agreement ) is entered into pursuant to Iowa Code chapter 28E by and between the undersigned cities (collectively the Cities ) located in Linn County, Iowa, the undersigned school districts (collectively the School Districts ) located in Linn County, Iowa, and the unincorporated portion of the County of Linn, State of Iowa (the County ), as of the day of, 2004: RECITALS: WHEREAS, the Cities are each duly incorporated, organized and exist under and by virtue of the laws and Constitution of the State of Iowa; and WHEREAS, the County is a political subdivision duly organized and existing under and by virtue of the laws and constitution of the State of Iowa; and WHEREAS, the School Districts are each duly created and validly existing as a body corporate and politic and political subdivision of the State of Iowa with the corporate power to perform the obligations herein; and WHEREAS, pursuant to Iowa Code chapter 28E any powers, privileges or authority exercised or capable of exercise by a public agency of the State of Iowa may be exercised and enjoyed jointly with any other public agency of the State; and WHEREAS, Iowa Code chapter 422B provides that cities may, by agreement with other political subdivisions of the state, as provided in Iowa Code chapter 28E, pledge irrevocably any amount derived from the designated portions of the revenues of the local -1-

2 option sales and services tax to the support of the purposes set forth on the ballot proposition concerning the imposition of the local option sales and services tax; and WHEREAS, the parties hereto desire to enter into this Sharing Agreement whereby the revenues of a local option sales and services tax pursuant to Iowa Code chapter 422B imposed and collected within the Cities which approve said tax is shared in accordance with the terms hereof; and WHEREAS, independent of its election on the sales tax, the County has agreed to act as fiscal agent for the distribution of revenues pursuant to this Sharing Agreement; and WHEREAS, the Cities and School Districts have requested proceedings be initiated to call a special election on the question of imposing a one cent (1 ) local option sales and services tax pursuant to Iowa Code chapter 422B commencing January 1, 2006 (hereinafter the LOSST ); and WHEREAS, those Cities who approve the imposition of the LOSST shall participate in the revenue sharing outlined more fully herein; and WHEREAS, if the County approves the imposition of the LOSST, it shall participate in revenue sharing outlined more fully herein; and WHEREAS, a condition precedent to this Agreement shall be the successful imposition of the LOSST within the contiguous block of cities comprised of Cedar Rapids, Hiawatha, Marion and Robins (the Contiguous Block ), such that if the Contiguous Block does not approve imposition of the LOSST, this Agreement shall be null and void; and WHEREAS, if the Contiguous Block passes imposition of the LOSST, all School Districts shall participate in this Sharing Agreement as outlined more fully herein. IT IS NOW, THEREFORE, AGREED by and between the parties hereto as follows: 1. The purpose of this Sharing Agreement shall be the sharing of revenues of the LOSST. Accordingly, those Cities who approve imposition of the LOSST shall direct that the revenues received from the Iowa Department of Revenue and Finance shall be submitted to the County in accordance herewith. -2-

3 2. The County shall serve as fiscal agent to this Sharing Agreement. In such capacity, the County shall disburse the LOSST revenues as follows: (a) 67% of all LOSST revenues (calculated upon total receipts within prior to any property tax relief afforded within the respective jurisdictions pursuant to each city ballot proposition) shall be placed into the School District Distribution Model. Proceeds in the School District Distribution Model shall be disbursed as follows: Each school district shall receive its share of the proceeds in the Distribution Model based upon certified student enrollment within Linn County, calculated annually based upon the enrollments as of the third Friday of the month of September; (b) the remainder of LOSST revenues received by the County to each participating city to be used for the purposes approved by the voters of said city at the election on the imposition of the LOSST, including property tax relief, if such is included in a city ballot proposition. [Example: the ballot proposition for the City of XYZ includes 1% of LOSST revenues for property tax relief. In 2006, XYZ collects $100 of LOSST. $1 goes towards property tax relief, $99 is transferred to the County as fiscal agent hereunder. However, when calculating the School Districts share of all LOSST revenues for distribution to the School District Distribution Model, the County shall add the entire amount of XYZ LOSST revenues prior to the portion for property tax relief ($100) to all other LOSST revenues collected within Linn County. In this example, $67 of the XYZ LOSST revenues will go into the School District Distribution Model for distribution in accordance with (a) above. $32 will go back to XYZ to be used for the city purposes approved by the voters of XYZ, and the $1 retained by XYZ prior to the transfer to the County as fiscal agent hereunder to be applied by XYZ for property tax relief pursuant to the ballot.] 3. A further purpose of this Sharing Agreement is to comply with the provisions of Chapter 422B and to acknowledge that the School Districts may issue bonds for the purposes outlined more fully in exhibit A, attached hereto and incorporated herein by this reference, and pledge the -3-

4 revenues hereby assigned by the parties to payment of interest and principal of said bonds. 4. The term of this Sharing Agreement shall coincide with the LOSST approved by the voters of the Cities at a special election on the question of imposition of said LOSST, and shall automatically end upon the effective date of the expiration, repeal or termination of the LOSST within the Contiguous Block. No partial termination of this Sharing Agreement shall be permitted. 5. No separate legal entity is established by this Agreement. No joint acquisition, ownership, or disposition of real or personal property is contemplated by the Parties to this Agreement. 6. Each party may execute this Sharing Agreement and the Sharing Agreement shall consist of each executed counterpart with multiple copies all as the original. 7. Additional parties to this Sharing Agreement may be added upon the approval of the governing bodies of the existing members, and the filing and recording thereof as required by law. 8. This Sharing Agreement shall be effective upon the filing of a copy with the Secretary of State and recording of a copy with the Linn County Recorder. 9. This Agreement shall be null, void, and of no further effect if the voters of the Contiguous Block do not approve imposition of the LOSST. 10. If any provision of this Agreement is for any reason held to be illegal or invalid, such illegality or invalidity shall not affect any other provision entered into, each of which shall be construed and enforced as if such illegal or invalid portion were not contained herein. Nor shall such illegality or invalidity of any application thereof affect any legal and valid application thereof, and each such provision shall be deemed to be effective in the manner and to the full extent permitted by law. 11. This Agreement shall be governed exclusively by and construed in accordance with the laws of the State of Iowa. -4-

5 [REPEAT FOR EACH PARTICIPATING SCHOOL DISTRICT] IN WITNESS WHEREOF, the School District has caused this Agreement to be approved by resolution of its Board of Directors and executed as of the date first above written. COMMUNITY SCHOOL DISTRICT ATTEST: By: Chair, School Board of Directors By: Secretary STATE OF IOWA ) ) SS: COUNTY OF LINN ) The foregoing instrument was acknowledged before me this day of, 2004 by and, the Board President and Board Secretary of Community School District, in Linn County, Iowa, a political subdivision of the State of Iowa, on behalf of said subdivision. Notary Public in and for said County and State

6 [REPEAT FOR EACH PARTICIPATING CITY] IN WITNESS WHEREOF, the City has caused this Agreement to be approved by resolution of its City Council and executed as of the date first above written. CITY OF By: Mayor, City Council ATTEST: By City Clerk STATE OF IOWA ) ) SS: COUNTY OF LINN ) The foregoing instrument was acknowledged before me this day of, 2004 by and, the Mayor and City Clerk of the City Council of the City of, Linn County, Iowa, a political subdivision of the State of Iowa, on behalf of said subdivision. Notary Public in and for said County and State

7 IN WITNESS WHEREOF, the County has caused this Agreement to be approved by resolution of its Board of Supervisors and executed as of the date first above written. COUNTY OF LINN, STATE OF IOWA By: Chair, Board of Supervisors ATTEST: By County Auditor STATE OF IOWA ) ) SS: COUNTY OF LINN ) The foregoing instrument was acknowledged before me this day of, 2004 by and, the Chair of the Board of Supervisors and County Auditor for the County of Linn, a political subdivision of the State of Iowa, on behalf of said subdivision. Notary Public in and for said County and State

8 EXHIBIT A SCHOOL DISTRICT REVENUE USE STATEMENT Money received from the local sales and services tax may be spent for any one or more of the following purposes: To provide funds to build and furnish addition(s) to school buildings in the District; to remodel, repair, expand, and improve the school buildings in the District; to purchase and improve grounds; to furnish and equip district facilities. Monies may be used for emergency repairs to respond to natural disasters, such as fire, wind damage, flood; unanticipated mechanical, plumbing, structural, roof, electrical system failures; environmental remediation; or to respond to changes in demographics that require construction of additions or improvements to school buildings or new school buildings. Monies may also be used for the purchase, lease or lease-purchase of buildings or equipment (including transportation and recreation equipment) as authorized by law. Monies may be used for the payment of principal and interest or retirement of general obligation bonds issued for school infrastructure purposes, loan agreements authorized by Iowa Code section , sales tax revenue bonds issued under Iowa Code section 422E.4, or property tax relief.

9 CERTIFICATE This Agreement was duly filed in the office of the Secretary of State on the day of, 2004, and in the office of the Linn County Recorder on the day of, LINN COUNTY AUDITOR EBOEHLERT\418899\1\

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