STATE PENNY FOR SCHOOL INFRASTRUCTURE AND PROPERTY TAX RELIEF: REVENUE PURPOSE STATEMENTS CARDINAL COMMUNITY SCHOOL DISTRICT

Transcription

1 STATE PENNY FOR SCHOOL INFRASTRUCTURE AND PROPERTY TAX RELIEF: REVENUE PURPOSE STATEMENTS CARDINAL COMMUNITY SCHOOL DISTRICT

2 BACKGROUND In 1998, the legislature created the school infrastructure local option (SILO) sales tax. By 2007, voters in all 99 counties had approved a SILO. In 2008, the legislature replaced the SILO with a state penny for school infrastructure and property tax relief through Dec. 31, This changed from a county to a school district wide election, allowing districts to have one set of ballot language governing expenditures.

3 BACKGROUND The state penny continues the SILO requirement of voter approval of a Revenue Purpose Statement to authorize expenditures of the sales tax once their first SILO expires. This vote does not determine whether the tax will be collected state law imposes the penny of sales tax. The Revenue Purpose Statement directs how the revenues for the school district will be spent.

4 SCHOOL INFRASTRUCTURE AND PROPERTY TAX RELIEF PURPOSES Sales tax revenues for schools are covered under Chapter 423F of the Code of Iowa. Revenues may be used for school infrastructure or property tax relief as defined in the 2007 Iowa Code, Section 423E.3 The law further prohibits a future legislature from changing the uses of the state penny unless they have a 2/3 rd vote in both the House and Senate. Although the requirement shows legislative intent to protect the funds, this prohibition can be changed by a simple majority vote to amend it or notwithstand it (which is legalese for ignore it ).

5 WHAT HAS CARDINAL USED THE SILO FUND FOR? 1 to 1 computer program Playground renovation New boiler at high school Air conditioning at elementary A number of school buses Fire alarm system upgrade Athletic field renovations Maintenance of all school facilities

6 SPECIFIC USES (DEFINED IN THE 2007 IOWA CODE, SECTION 423E.3) Construction, reconstruction, repair, and demolition work Purchasing, or remodeling of schoolhouses, stadiums, gyms, fieldhouses, and bus garages Procurement of schoolhouse construction sites and the making of site improvements The payment or retirement of property tax or sales tax revenue bonds.

7 SPECIFIC USES CONTINUED PPEL (IOWA CODE 298.3) WHICH INCLUDES: Purchase and improvement of grounds. Construction, reconstruction, additions, remodeling, repair (but not maintenance) Purchase, lease, or leasepurchase of a single unit of equipment or technology exceeding $500 in value per unit. Payment of debts contracted for building construction, not including interest on bonds. Procuring or acquisition of library facilities. Energy conservation. Rental of facilities under chapter 28E. Buses Purchase/lease-purchase of buildings. Equipment purchases for recreational purposes. Payments as required under section , subsection 2 (TIF) Demolition, clean up, and other costs within two years of a disaster as defined in section 29C.2, subsection 1.

8 SPECIFIC USES CONTINUED PERL (IOWA CODE 300.2) INCLUDING: Public recreation places and playgrounds for children and adults Accommodations for the recreation places and playgrounds A 28E agreement with a public or private agency responsible for public parks or public buildings and grounds, located in the school district Supervision and instruction to carry on public educational and recreational activities, and Community education purposes under chapter 276.

9 REVENUE PURPOSE STATEMENT DETAILS The Iowa Secretary of State defines the ballot language for the revenue purpose statement. The template is located on the web at: pdf The RPS can range from very specific to very broad. In most cases, districts have language which lists all legal uses of the state penny revenue. The RPS may indicate the priorities or order of the allowable uses. The RPS may be valid for a limited number of years or endure through the duration of the state penny authorization (Dec. 31, 2029).

10 RPS PROCESS Existing RPS remains in effect until either extended or amended Districts with old SILO s prior to 2008 are required to put the RPS forward prior to their SILO expiring, but may proceed sooner RPS solely for reduction of property taxes under or can be passed simply by board resolution without a vote of the public required Any other uses must be included in a RPS approved by voters to be voted not later than 60 days prior to expiration of current RPS or unextended SILO term.

11 SCHOOLS ARE LIMITED TO FOUR SPECIAL ELECTION DATES EVERY YEAR: ODD NUMBERED YEARS EVEN NUMBERS YEARS 1st Tuesday in February 1st Tuesday in April Last Tuesday in June 2nd Tuesday in September (Board Election Date) 1st Tuesday in February 1st Tuesday in April 2nd Tuesday in September 1st Tuesday in December Specific dates for the next few years are: 9/13/2011 (Board Election), 2/7/2012, 4/3/2012, 9/11/ /3/2012

12 STEPS TO PUT RPS ON THE BALLOT Publish notice of board resolution to adopt RPS and resolution of election at least 24 hours prior to board meeting Board must pass both the resolution to adopt, amend or extend a RPS AND a board resolution calling for the election. The resolution of election directs the board secretary to send the ballot language and notice of election to the County Commissioner of Elections. 46 days notice to the county auditor is required for city, county, and school special elections. [ 47.6 (3)(a-c)]

13 DISTRICT S W/O AN APPROVED RPS The law requires districts without an approved RPS to spend revenues on the following (423F.3): a. Reduction of bond levies under sections and A and all other debt levies. b. Reduction of the regular and voter-approved physical plant and equipment levy under section c. Reduction of the public educational and recreational levy under section d. Reduction of the schoolhouse tax levy under section 278.1, subsection 7, Code e. For any authorized infrastructure purpose of the school district as defined in subsection 6. f. For the payment of principal and interest on bonds issued under sections 423E.5 and 423F.4.

14 TIMING OF THE REVENUES August 15: the Director of the Iowa Department of Revenue provides each school district with a monthly and annual state penny revenue estimate. (The director may revise the estimates for the year and remaining months at the end of any future month.) August 31: 95% of the monthly estimated tax receipts are paid to the school district (and continues on or before the last day of each following month.) November 10: District receives the final payment of the remainder of tax moneys due for the fiscal year before November 10 of the next fiscal year. (If an overpayment has resulted during the previous fiscal year, the amount of overpayment is deducted from the November payment monthly payment.)

15 THANK YOU Mr. Pedersen would enjoy explaining the RPS or SILO fund with anyone who would listen. There will also be information on the school website. Mr. Pedersen ext Cardinal Website: Mr. Pedersen will speak to any group that requests.