Sales Tax

Code Number: 800.13

Philosophy

The District believes that the sales tax is a viable option to fund infrastructure needs.

Accounting

The District will follow generally accepted accounting principles to account for revenue and expenditures of funds.

  • Revenue
    • The funds will be transferred to a separate account and all interest accrued will be accumulated to that account.
    • Revenues can only be utilized for the following:
      • 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, 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 or equipment (including transportation, technology, and recreation equipment) as authorized by law, to implement energy conservation measures, sharing or rental of facilities, procuring or acquisition of libraries, or opening roads to schoolhouses or buildings.
      • To provide funds for emergency repairs to respond to natural disasters, such as fire, wind damage, flood; unanticipated mechanical, plumbing, structural, roof, electrical system failures; environmental remediation; or to respond to changes in demographics that require the construction of additions or improvements to school buildings or new school buildings.
      • 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; and other authorized capital expenditures now or hereafter permitted by law and designated by the District.
      • To provide funds for property tax relief.
  • Expenditures: No expenditures shall be permitted except those identified in Item A above.
  • Funding Options for Infrastructure Needs
    • Cash, on a pay as you go basis.
    • Indebtedness (bonds)
      • The District’s goal is to provide adequate debt service coverage of at least 1.20 times the annual debt service. The District may issue interim Bond or Revenue Anticipation Notes for project cash flow management when necessary.
  • Reporting
    • Monthly reports will be submitted to the Sales Tax Finance Oversight Committee, reflecting revenues by source and expenditures by project number.
  • Annual Report
    • The District shall annually report to the Board and the general public, through the District’s annual audit, on all revenue received and expenditures allowed during the year.

First Adoption:
1998-08-18
Revision Adoption:
September 8, 1998/ December 19, 2000/ May 22, 2001/ January 25, 2010/ February 9, 2015/ August 10, 2020
Reviewed Dates:
June 23, 2020
Legal Reference:
Iowa Code Chapters 76; 423E, 423F; § 298A.10

Documents

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