Dr. Jorgensen's February Highland Highlights
January 26, 2021
Highland Highlights
The Highland Board of Education has requested a vote take place on March 2, 2021 to renew the voted Physical Plant and Equipment levy. The voted Physical Plant and Equipment Levy (PPEL) is one of three methods a school district uses to address the infrastructure needs within a school district. This article will discuss the three accounts that are commonly used for facilities and infrastructure needs and give you insight into some specifics to how the PPEL is used and the relationship to the patrons of the Highland CSD.
The Physical Plant and Equipment Levy has two components. There is a voted levy that can be approved by a majority vote in the district for up to $1.34 per $1,000 valuation. There is a smaller levy of .33 that is allowed by vote of the School Board. Currently, the Highland CSD only has requested $1.00 of the voted levy. This is the amount of the request in the March 2nd vote. This levy has to be renewed every 10 years and Highland’s is up for renewal. The majority of districts in Iowa have approved voted levies, though the amount varies from .33 to $1.34. Highland’s request falls in the middle.
PPEL revenues may be used to purchase and improve grounds; construction of buildings and opening roads to school houses; purchase or least of technology above $500 per transactions; payment of debts of constructing facilities, acquisition of library facilities; repairing, remodeling, improving or expanding of buildings; expenditures to energy conservation; rental of facilities; purchase of transportation equipment; purchase of recreational purposes; clean up of natural disasters. Money cannot be used for employee salaries or travel, supplies, printing costs or any general fund expenditures. In my experience as a Superintendent, the majority of PPEL funds were used to purchase school busses, technology, or payment of a facility bond.
The Local Option Sales tax is very similar and is generally allowed the same type of purposes. These funds are generated by the extra one cent state sales tax. Recently the state of Iowa included the charging of sales tax for on-line purchases, which has help stabilize this budget despite the economic difficulties created by the COVID-19 pandemic.
The third revenue stream for facilities is a bond issue. Highland most recently passed a $3.7 million bond issue in October of 2019 that is being used to upgrade the secondary building’s HVAC system, Fine Arts storage and the Elementary playground. In order for a district to use bond issue funds, a 60%+1 approval vote is needed in an election. These funds are generated through property tax dollars.
Physical Plant and Equipment Levies are vital to a district. When an emergency situation comes up to repair or replace a boiler, repair damage to a building, update and replace technology or address transportation needs, PPEL is usually the go to fund. This is not a new levy for the district or taxpayers. . The vote on March 2nd is simply a renewal for the same amount that the district has been paying over the last decade.
