## Facts

- Citizens of Rising Sun petitioned to incorporate the unincorporated territory known as Rising Sun, located in eastern Polk County adjacent to the City of Pleasant Hill, covering about five square miles with an estimated population of 1,022.
- Under Iowa Code § 368.14, a Rising Sun City Development Committee (the Committee) was formed to consider the incorporation proposal, and a public hearing was held as required by Iowa Code § 368.15.
- Rising Sun presented evidence that most customary municipal services would be provided through contracts with other governmental entities or private businesses, including services commonly associated with a city (such as police protection, fire protection, road-related services, and library services).
- The only services Rising Sun proposed to provide directly were city-clerk functions and legal services needed to create and maintain service contracts.
- Rising Sun did not submit a detailed, time-based plan showing when it would be able to provide substantial municipal services on its own, beyond the limited in-house functions it identified.
- The Committee disapproved the petition, finding Rising Sun had not shown an ability to provide customary municipal services within a reasonable time as required by Iowa Code § 368.17(1).
- Rising Sun sought judicial review; the district court upheld the Committee’s decision. Rising Sun appealed to the Iowa Supreme Court (with the City of Pleasant Hill participating as an intervenor-appellee).

## Issues

1. Whether substantial evidence supported the Committee’s finding that Rising Sun failed to show the proposed city could provide “customary municipal services within a reasonable time” under Iowa Code § 368.17(1).

## Decision

- The Iowa Supreme Court affirmed the district court’s judgment upholding the Committee’s denial of the incorporation petition.
- The court held that substantial evidence supported the Committee’s determination that Rising Sun did not meet its burden to prove timely, feasible provision of customary municipal services.
- The court declined to reweigh the evidence, applying the substantial-evidence standard used on judicial review of administrative fact-finding.

## Legal Principles

- Iowa Code chapter 368 conditions incorporation on proof that the proposed city can provide “customary municipal services within a reasonable time.” Iowa Code § 368.17(1).
- The petitioners bear the burden to produce evidence showing the statutory conditions for incorporation are satisfied; if the record does not show that ability, the Committee may disapprove the petition.
- On judicial review, courts ask whether substantial evidence in the record supports the Committee’s factual findings; courts do not substitute their judgment on disputed facts.
- Contracting for municipal services (including through intergovernmental agreements under Iowa Code chapter 28E) may be considered, but reliance on anticipated or indefinite contracts—without a workable, time-specific plan—may support a finding that the statutory service requirement has not been met.
- A proposal that leaves the new city with only minimal internal functions (such as clerk and legal services) may be viewed as insufficient where the record does not show reliable, timely arrangements for the full set of customary municipal services.

## Conclusion

The Iowa Supreme Court affirmed denial of Rising Sun’s incorporation petition because substantial evidence supported the Committee’s finding that Rising Sun had not shown it could provide customary municipal services within a reasonable time, given its heavy dependence on contracted services and the absence of a detailed plan showing how and when the proposed city would function as a full-service municipality.


Citizens of Rising Sun v. Rising Sun City Development Committee, 528 N.W.2d 597 (1995)