School Finance Levies and Funds | Levies and Funds |
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This section includes descriptions of funds that school districts or area education agencies (AEA) may have. School districts or AEAs are not required to maintain separate accounts at the bank for each separate fund. Also included in this section are answers to frequently asked questions related to appropriate uses of school funds and election procedures for property tax levies. For more detailed information on funds, see the Uniform Financial Accounting Manual or the Uniform Administrative Procedures Manuals. Contact: Su McCurdy , Administrative Consultant Capital Project FundsSchool districts or area education agencies (AEA) establish capital project funds to account for the financial transactions related to acquisition or construction of facilities.One capital project fund that a school district will establish is the Local Option Sales and Services Tax for School infrastructure Capital Project Fund. The link below will redirect you to information about LOSST. Local Option Sales and Services Tax for School Infrastructure (LOSST), Iowa Code Chapter 423E General FundLevies that are part of the school foundation formula are revenues to the General Fund. The school board may annually certify a levy for cash flow in the General Fund, called a cash reserve levy, within limits set by the School Budget Review Committee. Money from all sources is accounted for in the General Fund except money required by law to be accounted for in another fund. Expenditures include the cost of providing an educational program and day-to-day operations.Instructional Support ProgramA school district may establish an Instructional Support Program to provide additional funding in the General Fund. The Program may be established by a board resolution up to five years or approved by the voters up to 10 years. The Program may be funded by all property tax or a combination of property tax and income surtax. The total Program may not exceed 10% of the district's regular program district cost. The revenues from the Instructional Support Program may be expended for any purpose allowed from the General Fund, but may not be used to supplant funding authorized to be received for returning dropout and dropout prevention programs, gifted and talented programs, PPEL levy, Management levy, or special education deficits. Iowa Code section 257.18.Instructional Support Program FAQs Educational Improvement ProgramThe voters in a school district may authorize an Educational Improvement Program to provide additional funding in the General Fund if the regular program district cost per pupil for a budget year is 110% of the regular program state cost per pupil for the budget year or the district had adopted an enrichment levy of 15% prior to July 1, 1992. In order to implement the Educational Improvement Program, the district must have also approved the Instructional Support Program. The Educational Improvement Program may be funded by all property tax or a combination of property tax and income surtax. The Program may not exceed the percent of the district's regular program district cost that was approved by the voters. Once voted, the Program continues to be authorized in the district until the voters rescind. The Educational Improvement Program may be expended for any purpose allowed from the General Fund. Iowa Code section 257.29.Management LevyThe school board may annually certify a Management Levy. The revenues from the Management Levy may be used to pay the costs of unemployment benefits, costs of liability insurance and agreements, costs of judgments, and costs of certain early retirement benefits. Iowa Code section 298.4.Early Retirement Incentive FAQs Physical Plant and Equipment LevyThe school board may annually certify a regular Physical Plant and Equipment Levy (PPEL) in an amount up to 33 cents per thousand dollars of assessed valuation. The revenues from the PPEL may be used for purchase and improvement of grounds; construction and demolition; payment of debt principal related to construction; acquisition of a single unit of equipment or technology exceeding $500 in value per unit; remodeling or repair of facilities; energy conservation; facility rental; acquisition of facilities, transportation equipment, or recreation equipment; and payment of TIF obligations. Revenues may not be used for any purpose not expressly authorized by Iowa Code. The voters may authorize a voted Physical Plant and Equipment Levy (VPPEL) for a period not exceeding ten years and in an amount not exceeding $1.34 per thousand dollars of assessed valuation. The VPPEL revenues may be used for the same purposes as the PPEL revenues. In adddition, the board may obtain loans against future VPPEL revenues and may repay that debt with interest from the VPPEL. Iowa Code section 298.2.
The link below will redirect you to more information about PPEL and a history of VPPEL elections. Public Education and Recreation LevyThe voters may approve a Public Education and Recreation Levy (PERL) for an amount up to 13.5 cents per thousand dollars of assessed valuation. Once voted, the PERL continues to be authorized until voters rescind. Revenues from the PERL, also called Playground Levy, are used to establish and maintain public recreation places and playgrounds in the public school buildings and grounds of the district. The PERL revenues are also used to provide public educational and recreational activities within the district and for community education. Iowa Code chapters 300 and 276. Debt Service LevyThe 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. Public Disclosure of Oustanding Levies
Iowa Code requires districts, prior to certifying any levy by board approval or submitting a levy for voter approval, to facilitate public access to a complete listing of all outstanding levies within the district by rate, amount, duration, and maximum levy limitations. The Department of Management has prepared on its website the required levy information for districts, called Outstanding Property Tax Levies and Maximum Levy Limits. |
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| Last Updated ( Tuesday, 24 June 2008 ) |
