The voters may approve bonded indebtedness for a period up to twenty years and approve a rate for a debt service levy up to $2.70 per thousand dollars of assessed valuation. However, the voters can also approve to exceed that rate limit up to $4.05. The proceeds from the sale of the General Obligation Bonds are deposited in a Capital Project Fund to be used for the costs of the project. The revenues from the Debt Service Levy are deposited in the Debt Service Fund to be used to retire principal and interest on the bonds.
For specific appropriate and inappropriate uses of debt service funds and revenue sources, refer to Iowa Administrative Code chapter 281--98 and the Iowa Uniform Administrative Procedures Manual, chapter 9.