Vote March 3 on Revenue Purpose Statement
Edgewood-Colesburg School District Vote on Revenue Purpose Statement for Expenditure of State Sales Tax for School Infrastructure and Property Tax Relief:
On March 3, Edgewood-Colesburg school patrons will have an opportunity to vote on a new Revenue Purpose Statement to direct the district’s spending of state penny sales tax revenues. This vote does not impact your sales taxes.
History: There used to be a school local option sales tax, or SILO, which 61.2% of Delaware County voters approved back in 2003 and 73.4% of Clayton County Voters approved in 2007. Eventually, voters in all 99 counties approved this sales tax to upgrade school facilities without increasing property taxes. The SILO was originally intended to last ten years. In 2008, the Legislature changed the SILO local option into a state penny sales tax to benefit the students in all school districts. In the 2019 Session, the Legislature further extended the state penny. The state will continue to collect the penny on retail purchases through Dec. 31, 2050 and will continue to send the proceeds to all Iowa school districts.
Recent Changes: As part of this change, the state now requires school districts to determine how they plan to spend the sales tax money for the tax extension and communicate those intentions to their patrons. The Edgewood-Colesburg school board has passed a resolution approving the new Revenue Purpose Statement, which states how the district must use the sales tax funds. The voters have a chance to weigh in on that revenue purpose statement at a special school election on March 3. The statement must follow Iowa law and can only use the funds for specific purposes described in law as school infrastructure and property tax relief. The law limits the uses to construction, reconstruction, demolition, repair, purchase of equipment, technology, buses, school safety equipment, and other infrastructure and property tax relief needs defined in the Iowa Code which voters will see stated on the Revenue Purpose Statement and ballot. The Iowa Secretary of State defines the ballot language for the revenue purpose statement and requires it to follow a standardized format.
Stakeholder input: Since the Revenue Purpose Statement will direct district expenses for a long time, through 2050, the statement preserves some flexibility for a future board to operate within the constraints of the law and consider additional projects or equipment purchases that otherwise would take property taxes to fund. In most cases, other school districts have language which lists all legal uses of the state penny revenue and preserves future flexibility similar to the revenue purpose statement that the Edgewood-Colesburg voters will consider on March 3. This is not the only opportunity for the public to weigh in, however. If this school board or any future school board wishes to bond using the sales tax revenues to pay ongoing obligations, or wishes to spend sales tax revenues on athletic facilities not attached to the school, the new law requires the district to conduct a public hearing prior to either of those actions. If the public delivers a petition with signatures equal to 30% of those voting in the last school election, then the school board must either rescind the plan or place that bond issue or athletic facility improvement on the ballot for all voters to weigh in.
SAVE Uses in Edgewood-Colesburg Community School District: During the duration of the local option sales tax, and the state penny sales tax for school infrastructure since 2008, the board has understood student needs for safe, technology-ready facilities designed for student learning. The district has used the funds to update HVAC controls, install new windows, add additional parking, provide one-to-one computers and technology needs, LED lighting, among other improvements. The Board has held work sessions and continue to hold more to acquire public input on things need to be done to keep the Edgewood-Colesburg School facilities in energy-efficient working condition to create the best environment for students.
For additional information on the change in law and the revenue purpose statement process, visit the district’s web site at www.edge-cole.k12.ia.us or contact Rob Busch, Superintendent.
The Text of the Revenue Purpose Statement as approved by the Edgewood-Colesburg School Board, which will be on the March 3 ballot, follows:
Summary: To adopt a Revenue Purpose Statement specifying the use of revenues the Edgewood-Colesburg Community School District will receive from the State of Iowa Secure an Advanced Vision for Education Fund.
In the Edgewood-Colesburg Community School District, the following Revenue Purpose Statement which specifies the use of revenues the Edgewood-Colesburg Community School District will receive from the State of Iowa Secure an Advanced Vision for Education Fund shall be adopted.
To provide funds to acquire or install information technology infrastructure (including improving buildings or sites for the purpose of accessing broadband digital telecommunications) and school safety and security infrastructure.
To provide funds to build and furnish a new school building or buildings; to build and furnish addition(s) to school buildings in the District; to remodel, reconstruct, repair, expand, and improve the school buildings in the District; to purchase and improve grounds; for demolition work; to furnish and equip district facilities.
To provide funds for the purchase, lease or lease-purchase of buildings, equipment (including transportation and recreation equipment), or technology and to repair transportation equipment for transporting students as authorized by law, to implement energy conservation measures, sharing or rental of facilities including a joint infrastructure project for the purposes of offering classes under a district-to-community college as authorized in Iowa Code Section 423F.3(3)(c), procuring or acquisition of libraries, or opening roads to schoolhouses or buildings.
To provide funds to purchase land as part of start-up costs for new student construction program or if the sale of the previous student construction was insufficient to purchase land, and to purchase construction materials and supplies for a student-constructed building or shed intended to be retained by and used by the District.
To provide funds to make payments to a municipality or other entity as required under Iowa Code Section 403.19(2).
To provide funds for demolition, cleanup, and other costs if such costs are necessitated by, and incurred within two years of, a disaster.
To provide funds to establish and maintain public recreation places and playgrounds; provide for supervision and instruction for recreational activities; or for community education purposes.
To provide funds for the payment of principal and interest or retirement of general obligation bonds issued for school infrastructure purposes, energy improvement loans, loan agreements authorized by Iowa Code Section 297.36, sales, service and use tax revenue bonds issued under Iowa Code Section 423E.5 or Iowa Code Section 423F.4.
To provide funds for property tax relief; and
To provide funds for other authorized expenditures and purposes as now or hereafter permitted by law and designated by the Edgewood-Colesburg Community School District.
It being understood that if this proposition should fail to be approved by the voters, such failure shall not be construed to terminate or restrict authority previously granted by the voters to expend receipts from the Secure an Advanced Vision for Education Fund.
If approved, this Revenue Purpose Statement shall remain in effect until replaced or amended by the Edgewood-Colesburg Community School District.
