Revenue Purpose Statement
THANK YOU!!!!
On 11/2/2021, voters across the PCM school district approved the renewal of the Revenue Purpose Statement with over 87% voter approval.
Why is the school district asking for re-approval of the Revenue Purpose Statement (RPS)?
In the 2019 Legislative Session, the Secure and Advanced Vision for Education (SAVE) Tax (the statewide penny) was extended by Iowa Legislature through December 31, 2050. As a part of that extension, there was a requirement that each school district revises their existing Revenue Purpose Statement through a vote of the public by a simple majority. Our current Revenue Purpose Statements are valid through December 2029.If the PCM School District wants to continue to use these funds for long-term facility planning beyond 2029, the RPS must be re-approved to align with the 2019 legislative changes. Re-approval of the PCM Revenue Purpose Statements will allow:
-Maintain the investment our communities have made in facilities
-Facilitate long-term planning and provide a stable revenue source to respond to changing facility needs.
-Provide funds to purchase technology and equipment.
-Ensure our transportation fleet is safe.
-Utilize SAVE revenue for bond principal and interest payments as opposed to issuing General Obligation bonds, which are funded with property tax.
What is SAVE and how have funds been used in the past?
SAVE stands for Secure an Advanced Vision for Education. It is more commonly known as the statewide one-cent sales tax (or penny tax) for schools. The one-cent sales tax first began as a county vote, but in March of 2008, the Iowa Legislature enacted the state-wide SAVE that provided one-cent sales tax revenue to all school districts through 2029. PCM updated its Revenue Purpose Statements in 2014 allowing the district to use SAVE funds for facilities and technology through 2029.
SAVE Funds allow our district to:
- Provide property tax relief
- Ensure adequate 21st-century technology infrastructure
- Address school safety and security
- Build and furnish new school buildings and facilities, as needed
- Remodel, reconstruct, repair, expand, and improve the school buildings
- Establish and maintain public recreation places and playgrounds
- Reduce principal and interest on or retirement of bonds issued for school infrastructure purposes
Will re-approving the RPS raise my taxes?
No. The Iowa Legislature approved the sales tax to go through 2051. This is NOT a property tax but a sales tax paid at the time of purchase, so you'll pay regardless of whether the Revenue Purpose Statement is re-approved. Re-approval of the RPS simply dictates how the revenues may be spent, and allows districts to prioritize expenditures on facilities, transportation, and technology so that all students can have safe, high-quality schools.
How much does PCM receive annually in SAVE dollars?
In 2018-2019, the PCM district received $1,070,610.83
In 2019-2020, the PCM district received $1,108,890.05
In 2020-2021, the PCM district received $1,061,938.53
In 2021-2022, it is estimated that the PCM district will receive $1,085,579.82
How would the passage of the RPS affect facilities planning?
Re-approval of the RPS allows District Administrators and Directors to present long-range facilities, technology, and transportation planning to the Board of Education and community. This allows for a more productive planning process, allowing the District to continue to provide a 21st Century education to all students and minimizes costs of deferred maintenance on facilities.
Re-approval of the RPS allows District Administrators and Directors to present long-range facilities, technology, and transportation planning to the Board of Education and community. This allows for a more productive planning process, allowing the District to continue to provide a 21st Century education to all students and minimizes costs of deferred maintenance on facilities.
How much longer does the current state-wide one-cent sales tax (SAVE) run?
The district's current RPS is valid through December of 2029. The District will still receive SAVE funds through 2050. However, if the Revenue Purpose Statement is not updated, SAVE funds must be spent in the order listed below, and the PCM District would not be able to borrow against future revenues. This drastically limits the District's ability to plan for long-term facilities, technology and transportation projects.
*Reduce any debt levy
*Reduce any Physical Plant and Equipment Levy (PPEL)
*Reduce any Public Education and Recreation Levy (PERL)
*THEN the District can use the funds for school infrastructure and any lawful State Penny purpose
How does the District decide what to spend on each project?
We are building for the future and our goal is to provide the best educational opportunities possible for our students to prepare them for their future. The PCM School District is beginning a long-range facility needs assessment. This process will include a facility planning team, with representation from community members along with focus groups and community presentations. The goal of this process is to identify high-priority needs for the next 5-10 years. The Board and community will continue to provide important guidance and input on how best to use our SAVE revenue.
How will the ballot be worded?
See the SAMPLE BALLOT above.When will the Revenue Purpose Statement vote be held?
The RPS vote will be a ballot measure on the November 2, 2021 city/school election ballot. You are encouraged to get out and vote on Nov. 2, or contact the Jasper County Auditor to vote by absentee ballot. It is an important decision for our district, our facilities, and our children.
What will the PCM School District do if the Revenue Purpose Statement is not approved?
Iowa Law requires a minimum of six months to elapse before another RPS vote can be held. If the original version is not approved, either the same or a revised Statement can be brought to our voters. Any facility, transportation or technology planning for short or long-term projects cannot be conducted if we do not have bonding capacity with SAVE revenue to depend on from the State.
Who should I contact if I would like more information about the Revenue Purpose Statement?
If you would like more information, please contact Dr. Michelle Havenstrite, PCM Superintendent at [email protected], or Lisa Stewart, Board Secretary/SBO at [email protected].
Thank you for voting on Nov. 2nd!