| | | less the product of the following:__the amount of such funds | | received in the prior fiscal year multiplied by the growth | | limitation factor described in subsection 3.__If a municipality | | receives net new funds in any fiscal year for which its property | | tax levy limit has not been adjusted as provided in this | | subsection, the municipality shall adjust its property tax levy | | limit in the following year in an amount equal to the net new | | funds. |
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| | | 5.__Exceeding property tax levy limit; extraordinary | | circumstances.__The property tax levy limit established in | | subsection 2 may be exceeded for extraordinary circumstances only | | under the following circumstances. |
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| | | A.__The extraordinary circumstances must be circumstances | | outside the control of the municipal legislative body, | | including: |
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| | | (1)__Catastrophic events such as__natural disaster, | | terrorism, fire, war or riot; |
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| | | (2)__Unfunded or underfunded state or federal mandates; |
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| | | (3)__Citizens' initiatives or other referenda; |
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| | | (4)__Court orders or decrees; or |
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| | | (5)__Loss of state or federal funding. |
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| | | Extraordinary circumstances do not include changes in | | economic conditions, revenue shortfalls, increases in | | salaries or benefits, new programs or program expansions | | that go beyond existing program criteria and operation. |
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| | | B.__The property tax levy limit may be exceeded only as | | provided in subsection 7. |
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| | | C.__Exceeding the property tax levy limit established in | | subsection 2 permits the property tax levy to exceed the | | property tax levy limit only for the year in which the | | extraordinary circumstance occurs and does not increase the | | base for purposes of calculating the property tax levy limit | | for future years. |
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| | | 6.__Increase in property tax levy limit.__The property tax | | levy limit established in subsection 2 may be increased for other | | purposes only as provided in subsection 7. |
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