Campaign Finance Information
Finance Mission Statement
Secure public and private financial pledges to fill the funding gap between total construction cost and public sources of financing to construct a new Junior/Senior High School.
What the School Bond Pays:
The bond will pay for approximately 45 percent of the overall cost of the new 169,000 square foot Jr./Sr. high school and all related site work. SILO funds, grants, and donations will cover the remaining costs of the project.
Total Cost of Bond Referendum:
The bond referendum is $12,480,000 that will require a tax levy of not more than $2.70 per $1,000 of taxable valuation payable over 20 years. This bond issue allows our community to receive a new high school valued at $27,519,833 (when combined with the sales tax bonding and donations) for a $12,480,000 bond from property taxes.
Financing a New Jr./Sr. High School with the Help of a Bond Referendum:
The general obligation bond of $12,480,000 is set and will not change. Due to bonding legal and underwriting expenses, the net proceeds available for construction are estimated at $12,222,800. The remainder of the project will be financed through the 1¢ sales tax proceeds (SILO) as well as grants and donations.
PPEL & SILO Funds:
PPEL stands for Physical Plant and Equipment Levy. It is a special revenue fund used for repairs, infrastructure, and equipment purchases costing more than $500.
SILO stands for School Infrastructure Local Option. This one-cent sales tax may be “used for infrastructure purposes, repair, and improvements, the payment or retirement of outstanding bonds previously issued for school infrastructure purposes and payment or retirement of new bonds issued for school infrastructure purposes issued under Iowa Code section 422E.4 (2001 Code of Iowa).”
Working with Project Architects:
Sub-committees of the Build for the Future group are working closely with architects to help address suggestions. Any interested community members are encouraged to become involved in the process by contacting Build for the Future.
Effect of Property Value Increase on Taxes:
The school district is permitted to sell bonds only as authorized by the voters. If property values increase, the dollar amount each homeowner pays stays constant over the 20 year bond repayment.
Assessment of Taxes for Bond Levy:
The bond levy is not triggered by the September 13th bond vote itself, but rather when the school sells the bonds. If construction started and the school sold the bonds by early 2012, the soonest the property tax increase would take effect is fall 2012.
Bond’s Effect on Property Taxes:
The following charts will give you an idea of how your property taxes may be affected. The chart does not consider the impact of deductibility of property tax on your state and federal income tax returns, and it does not consider any impact Governor Brandstad’s current proposal to change the valuation of commercial property in the state may have. These are estimates and will depend on the annual rollback percentage assigned to property as well as the growth in property valuation over future years. These estimates assume the full $2.70 levy which may be lowered in future years as a result of property valuation growth.
| Property Value | Monthly Cost | Annual Cost* |
| $30,000 | $2.18 | $26.21 |
| $50,000 | $4.37 | $52.42 |
| $100,000 | $9.83 | $117.94 |
| $150,000 | $15.29 | $183.45 |
| $200,000 | $20.75 | $248.97 |
| $250,000 | $26.21 | $314.48 |
| $300,000 | $31.67 | $380.00 |
*Residential annual cost assumes the property has the Homestead credit.
| Property Value | Monthly Cost | Annual Cost |
| $30,000 | $6.75 | $81.00 |
| $50,000 | $11.25 | $135.00 |
| $100,000 | $22.50 | $270.00 |
| $150,000 | $33.75 | $405.00 |
| $250,000 | $56.25 | $675.00 |
| $500,000 | $112.50 | $1,350.00 |
| Acres | Monthly Cost | Annual Cost |
| 1 | $.19 | $2.34 |
| 10 | $1.95 | $23.36 |
| 80 | $15.57 | $186.89 |
| 120 | $23.36 | $280.34 |
| 240 | $46.72 | $560.68 |
| 480 | $93.45 | $1,121.36 |
| 1000 | $194.68 | $2,336.18 |
*Agricultural property taxes are computed using the approximate average county 1/1/09 agricultural values. Your tax impact will be subject to your actual taxable valuation of land, which is subject to annual rollback and the number of acres you own.
Click here to access the Property Tax Levy Cost Calculator for your property (document is in Microsoft Excel format).
Building Now vs. in 10 Years:
We can choose to invest money into our current school to keep the old systems running, patch things up, and update. We can continue to shift classrooms, but we will never correct the flow. We can replace locks and doors on the buildings, but we can’t secure them. We can add technology here and there as we can fit it in. We can continue to use the junior high-sized gym and hallways. We can make attempts to bring the building up to code and improve accessibility. These are not money-saving choices, but if we say ‘no’ to building now, we must realize that we say ‘yes’ to choices such as these. Costs associated are not for improvements or educational benefit, but rather to meet the minimum health and safety standards. Research has linked student achievement and behavior, as well as staff morale, to physical building conditions. Property tax dollars are a better investment in a new Jr./Sr. high school rather than maintaining an out-dated and inadequate school facility.
Budget for Ongoing Facilities Maintenance:
Sufficient money is set aside for ongoing maintenance. Our district uses the PPEL and SILO funds to pay for necessary maintenance, repairs, and other improvements. Piper Jaffray has prepared a conservative revenue projection of approximately $640,000 annually in PPEL and SILO funds to be used for technology/maintenance needs throughout the district. The other SILO income will be used to pay for the Sales Tax Bond portion of the new Jr./Sr. high building.
Voting Yes in September 2011
Interest rates are at some of their lowest levels of all time, which keeps financing costs lower. Architects have noticed contractors for many of their projects coming in under budget because the tighter economy forces contractors to get more aggressive to win bids. If we wait to build, we lose these benefits and the project will cost us substantially more. Meanwhile, our current school needs significant improvements. The existing Jr./Sr. high school has inefficient heating and cooling. A new building will be energy efficient, asbestos free, temperature controlled and security supervised.
Project Information
Click here for some Fast Facts
Finance Subcommittee Members
- Fundraising - Rob Robinson (319) 334-7181 or rob.robinson@bankiowa.com
- Grants - Steve Diers citymgr@indytel.com
Contributions
Gifts are needed and can be in the form of in-kind contributions, cash, and other non-cash assets (securities, CDs, real property).
Contact Information
If you are interested in contributing or becoming a part of the finance committee, contact Rob Robinson at (319) 334-7181 or rob.robinson@bankiowa.com.
