Frequently Asked Bond Questions September 2017
Frequently Asked Bond Referendum Questions
What constructions projects will the bond issue fund?
Updates to HVAC, replace windows, additional parking, reroofing, update restrooms, accessible hardware in both buildings and remodel entry at elementary.
These projects appear to be mainly up-keep and maintenance. Why haven’t they been completed before?
98.5% of Iowa school district use the Board approved Physical Plant and Equipment Levy (PPEL); 79% use the voter approved PPEL. Edgewood-Colesburg receives approximately $50,000 in PPEL funds each year. The district has used the Board approved PPEL to purchase buses every other year. This bond probably won’t be needed if the voter approved PPEL was used in the past. The voter approved $1.34 PPEL levy would have created over $200,000 in revenue for the 2017-18 school year.
How is this different from the February 7th, 2017 bond referendum?
The current bond referendum doesn't ask for an additional $1.35 above the current tax rate of 2016-17. It also doesn’t include the gym and moving the entrance at the secondary building.
Why consider this bond referendum now before getting everyone on the same page?
1. Ability to fund with little change in tax rate.
2. Construction costs are projected to increase at 5% to 8% per year. A 5% increase in a construction project of 7 million is $350,000 per year.
3. Cost of borrowing is now at historic lows.
How much is the referendum?
The referendum is $7,000,000. This is the estimated total design, construction and bonding costs for the improvements. StruXture Architects and financial advisor Piper Jaffray determined the estimated costs.
If the referendum passes, how much will property taxes increase?
The tax rate is made up of many different factors: valuations, enrollment (budget guarantee), cash reserve levy, modified allow-growth, special education, etc. If the bond referendum is approved, the board is expected to take action to adjust other school levies, where appropriate and reasonable. The $2.70 rate per $1000 would match the 2016-17 levy rate. The management levy rate could be reduced.
If the referendum is passed, can the list of construction projects be changed?
No, the district is obligated to construct only the projects that are specified.
What happens if the construction bids for the projects come back higher than $7,000,000?
The Ed-Co Board of Education has two options available if the bids for construction projects come back higher than the amount allowed by the bond referendum. One option is to direct the architects and engineers to review and critically analyze the construction plans to try to discover ways to make the project more economical without sacrificing quality. Another option is to allocate other district resources like sales tax revenues towards the construction of the project to make up the difference.
What happens if the construction bids for the projects come back lower than $7,000,000?
Again the Ed-Co Board of Education has two options available if the bids for construction projects come back lower than the amount allowed by the bond referendum. One option is pay the bonds off sooner than the twenty-year plan. The other option is to take advantage of additional energy efficiencies.
From what sources can a school build new or renovate existing infrastructure?
Voted General Obligation Bonds
PPEL Notes (Voted PPEL) – Has not been approved in the Ed-Co District
Sales Tax Bonds
Cash Donations or Grants
What is the proposed construction timeline?
Following the vote on September 12, the district would begin a 2-3 month Design Development Phase where stakeholders would have an opportunity to provide input on specific details of the facilities. Construction documents would be provided to contractors that would result in the District scheduling a date to open bids. If low bids were at the levels established for the project, construction would occur as soon as possible. Because it is a “remodel” project, it may take 2 summers to complete.
Can a school use bond money to give teachers or staff a raise or pay employment-related expenses?
Absolutely not. These are two separate pots of money. Debt Service Fund, PPEL and Sales Tax Monies are ONLY to be used for infrastructure improvements.
I don’t have children in this District either because I’m not married and have no children, don’t want to have children, or have already raised my children to adulthood. Why should I be concerned with the future of this District, and why should I pay to foot the bill of improvements (if the community agrees that such improvements are desired)?
In Iowa every property owner or consumer paying sales taxes pays for the construction of our schools. When you were 5-18 years old…someone else what paying for your school, your parents…but also your neighbors, relatives, and other community members regardless of whether they had school-age children attending.
Who can vote on the referendum?
Anyone who lives in the Edgewood-Colesburg School District, is eighteen years of age, and is registered to vote can cast a ballot on September 12. A person that is not registered to vote can register at the polling place the same day by providing proof of age and residence.
Where are the polling locations and when can a person vote?
Colesburg - Community Center – Noon to 8 PM
Edgewood -City Hall - Noon to 8 PM
Voting by mail?
Absentee voting is available for this election. Forms are available on the Delaware County website at www.co.delaware.ia.us/election_docs/primary/absentee_ballot.pdf
What is needed for the referendum to pass?
The Bond referendum needs 60% of the votes cast to be “yes” in order to pass. In recent years, multiple school district bond referendums have been decided by less than a handful of votes. This demonstrates that everyone’s opinion and vote is important.
