How are f acilities & buildings to be kept safe, efficient, and updated?

1. Goal: Provide the best facilities while being fiscally responsible. Edgewood-Colesburg Community School District How are facilities & buildings to be kept safe, efficient, and updated?

2. Recent Projects New Windows Bathroom Renovations New Carpet

3. Painted Elementary Railings Improvements to High School gym Recent Projects Began work on Elementary Parking lot Elementary Concrete Improvements

4. Estimates vs. Encountered Cost

5. Past Improvements • Bus (Every two years) • Technology-computer/network • Vehicles • HVAC Controls • Security Cameras • LED Lights • Roof/Gutters • Tuckpointing • Land • Door/Boiler Maintenance

6. Funding Source for Past Improvements • Source of funding for school facilities, technology and equipment is the state penny for school infrastructure. • The board approved PPEL at $0.33 covers the purchase of a bus every two years. • Delaware County School Infrastructure Local Option (SILO) Sales Tax began funding Edgewood-Colesburg and other County school renovations and technology on July 1, 2004 (6 years after the SILO tax was first available to school districts.) • The SILO became a state penny for the same purposes in 2009, authorized through Dec. 2029. • Edgewood-Colesburg schools now receive a share per pupil of the state penny, estimated to be $959 per student in FY 2018.

7. Pending Projects • Security including secure entrances -Both Buildings • HVAC controls • Parking Lots • Boilers/HVAC • Roofs • Gym Floors • Community Dreams Upgrades (Bleachers) • Playground Improvements • Maintenance (sidewalks, repairs, flooring & tuckpointing) • Items as needed

8. How can we fund future projects & needs? • The state penny revenue is insufficient to cover all district needs for technology and renovation, IF IT MUST ALSO pay for repair and maintenance which is funded in most other school districts with the PPEL.

9. Physical Plant & Equipment Levy Funds • There are two portions of the Physical Plant and Equipment (PPEL) levy – board approved levy and a voter approved levy. • The purposes for usage include facilities construction and repair, buses, technology and equipment that exceeds $500 in unit value (such as musical instruments and science lab equipment.) • The board approved levy is limited to the equivalent of $0.33 per $1,000 of net, assessed taxable value. It will raise $57,235 in FY19. • A voter approved levy is limited to the equivalent of $1.34 per $1,000 of net, assessed taxable value. Approximately 80% of Iowa school district use.

10. PPEL Purposes in Detail • Purchase or improvement of property • Construction of schools, buildings and roads • Purchase/lease purchase of equipment/ technology exceeding $500 per transaction (includes computers, musical instruments, copiers, projectors, software licenses for non-instructional software, etc.) • Payment of debt for schools or buildings • Procuring or acquiring library facilities • Repair, remodeling and reconstructing of existing facilities • Demolition and other costs within two years of a disaster • Expenditures for energy conservation • Rental of facilities under 28E • Transportation equipment for transporting students (buses) including repairs and maintenance exceeding $2,500 • Purchase or lease purchase of buildings • Equipment for recreational purposes • Asbestos Inspection and elimination costs

11. PPEL Prohibitions State law does not allow use of PPEL for the following purposes: • Can NOT pay Employee salaries, benefits or travel expenses • Can NOT buy Materials and supplies • Can NOT pay for Printing costs or media services • Can NOT pay for Heating and cooling costs or bus fuel • Can NOT use for any other purpose not expressly authorized in Iowa Code section 298.3

12. Voted PPEL Details • Maximum 10 year duration • A simple majority vote (50% plus 1) is required for passage.  • Property tax rate is limited to no more than $1.34 per $1,000 of net, assessed taxable value.  The Edgewood-Colesburg district is considering a maximum tax rate of $1.34. • The school board could recommend and the district voters authorize a combination of income surtax and property tax to fund the PPEL. • Use of an income surtax does not generate additional funds for PPEL purposes, but provides an alternative to what would otherwise be local property taxes.

13. How does Income Surtax work? • The income surtax is applied to the state tax bill of residents. For example, a family with Iowa taxable income of $40,000 likely pays about $2,000 in Iowa state income tax. The surtax is a percent of the state tax bill, so a 2% income surtax is $40 for that family for the year. • Income surtax only applies to individual income tax filers, not corporate income tax filers. • The mix of income surtax and property tax is determined by the board and ballot language approved by the voters. • Each 1% of income surtax in Edgewood-Colesburg generates $21,669 (FY 2019 Aid and Levy Worksheet).

14. How does Income Surtax work? • Edgewood-Colesburg currently uses a 8% income surtax which offsets $173,354 for Instructional Support Levy which would otherwise be property taxes. • If we had passed it at 2% for the current year, our property tax rate would have been $0.25 per thousand lower. In the future, although the property tax rate savings may fluctuate due to changes in income surtaxes paid by taxpayers, each dollar of income surtax paid is guaranteed to replace a dollar that would otherwise be property taxes. • The combined total income surtax rate of all taxing authorities is capped at 20%.

15. Tax Rate Comparison 14.09 14.10 13.96 14.02 13.95 14.01 14.09

16. PPEL vs. General Fund • Items currently funded with Board ApprovedPPEL are necessary, such as buses. • If those items aren’t funded with additional Voter Approved PPEL, then scarce General Fund dollars have to cover those expenses. • Today, General Fund dollars are currently dedicated to instruction – supporting classrooms with teachers, textbooks, heat and lighting, and providing for the library and support staff that students need.

17. Statewide Statistics: FY 2019 • 327 of 330 school districts (99%) have a 33 cent board approved PPEL, which generates $58.3 million statewide. Edgewood-Colesburg’s 33 cent PPEL generates $57,235. • Edgewood-Colesburg does not have a voted PPEL, placing the district among the 19% of districts in Iowa that do not have the voted PPEL.

18. Edgewood-Colesburg Community School District *Comply with state/federal mandates *Improve Student Achievement *Provide Safe Learning Environment *Maximize impact on upkeep of facilities *Attract teachers and/or families *Maximize support from community Recap Goal: Provide the best facilities while being fiscally responsible.

19. 2018-19 Board Members Robert Schilling, President Dan Venteicher, Vice President Kenny Faust Travis Gudenkauf Matt Elliott

20. Questions/Comments? Do not hesitate to contact us if you have any questions or comments! Rob Busch, Superintendent 563-856-2415 rbusch@edge-cole.k12.ia.us Iowa School Finance Information Services (ISFIS) 515-251-5970 Larry Sigel, Partner Larry.sigel@isfis.net 515-490-9951 (cell) Margaret Buckton, Partner Margaret.buckton@isfis.net 515-201-3755

21. VOTE Get out and vote on February 5th, 2019!