FAQ
Voted Physical Plant and Equipment Levy FAQ
1.What is a Voted Physical Plant and Equipment Levy (PPEL)? The Physical Plant and Equipment Levy was created by the Iowa Legislature in the early 1990s as a local funding stream to support school district facilities and equipment. Voters can approve a maximum levy of $1.34 per $1,000 of property tax. PPEL funds may not be used for employee salaries, benefits or any other purpose not expressly authorized by Iowa Code.
2.What is the History of a Voted Physical Plant and Equipment Levy (PPEL) ADM? ADM’s current voted PPEL levy of $1.00 per $1,000 of property tax was approved by voters for 10 years in April of 2012. The voted PPEL needs to be approved for extension by voters every ten years. The current voted levy will expire on June 30, 2022. Over the past 10 years, revenue from the voted PPEL levy has been used to support purchases of musical instruments, technology devices, technology infrastructure, and transportation vehicles.
3.What Will Voters See On The Ballot About PPEL? The ballot question will ask voters if they will approve a voted PPEL levy of $1.34 per $1,000 of property tax for a period of 10 years. View Full Ballot Language
4.Why is ADM asking for an increase from $1.00 to $1.34 per $1,000 of property tax in this Voted PPEL levy? ADM has utilized the voted PPEL to invest in the purchase of musical instruments, technology devices and infrastructure, and transportation vehicles. ADM anticipates continued and increased needs in each of these areas over the next 10 years. See below for more information on how future PPEL is projected to be used over the next 10 years
5.Will the $1.34 voted PPEL increase property taxes? No. While the voted PPEL amount would increase from $1.00 to $1.34 per $1,000 of property tax, ADM would offset this increase by decreasing the tax rate in the management fund. This would result in the PPEL increase being tax rate neutral. ADM has been and remains committed to maintaining a stable tax rate for residents of the district. Tax rates have remained stable during substantial growth in the district, construction of additions to all buildings in 2014 and 2015 and the recent construction of Meadow View Elementary. Stability in the tax rate has been accomplished through careful fiscal management of district resources.
6.How can the management levy be reduced to off-set the increase from $1.00 to $1.34? The management fund currently has an adequate fund balance that allows the management levy rate to be reduced while still meeting district needs.
7.How will PPEL funds be used over the next 10 years? ADM’s PPEL revenue would continue to be used to support investments in the purchase of musical instruments, technology devices and infrastructure and transportation vehicles.
8.Does the voted PPEL require a “simple majority” to pass? Yes. The question on the ballot requires a simple majority (50% + 1) “yes” vote to pass.
9.What happens if the community doesn’t approve the PPEL extension? In the event that the voted PPEL is not approved on November 2, the district would bring a special ballot back to the voters in March of 2022, prior to the expiration of the current voted PPEL. In the event that the community would not vote to extend the voted PPEL prior to the expiration of the current voted PPEL, revenue would be dramatically reduced. The impact on current and future budgets would directly negatively impact services provided to students, the technology infrastructure within the district, and ADM’s ability to maintain a safe fleet of buses and other transportation vehicles.
Revenue Purpose Statement FAQ
10.What Is A Revenue Purpose Statement (RPS)? The Revenue Purpose Statement is a voter approved measure that outlines how the district can spend revenues from the Secure an Advanced Vision for Education (SAVE) Fund, often referred to as the Statewide Penny Sales Tax. These are funds that the state of Iowa has dedicated to public schools.
11.Will The Revenue Purpose Statement (RPS) Increase Property Taxes? No.The statewide penny sales tax will continue to be collected across the state regardless of whether or not the new revenue purpose statement is approved at ADM. If voters approve the new Revenue Purpose Statement in November, ADM will simply be able to spend revenue received from the SAVE Fund as allowed by Iowa law.
12.Why Does The Revenue Purpose Statement (RPS) Need To Be Updated? In 2019, the Iowa Legislature extended the statewide penny sales tax through 2050. Prior to this extension, the statewide penny sales tax was set to expire in 2030. ADM’s current voter approved Revenue Purpose Statement is currently set to expire in 2030. Approval of the Revenue Purpose Statement would allow ADM to spend revenue received from the SAVE Fund as allowed by Iowa law through 2050.
13.How Has ADM Been Using SAVE Funds? Secure an Advanced Vision for Education (SAVE) Fund revenue is used to support many important projects in the district. Some examples include:
Construction of Meadow View Elementary, in conjunction with general obligation bonds
Building maintenance and HVAC systems
Security camera systems at all buildings
Athletic facility improvements
14.How Can Revenue From The SAVE Fund Be Used? The Revenue Purpose Statement outlines the permitted use of revenues from the Iowa Secure an Advanced Vision for Education (SAVE) Fund that ADM will receive as part of the statewide penny sales tax. Some specified uses of SAVE funds include the following:
To provide funds for school safety and security infrastructure
To provide funds to remodel, reconstruct, repair, expand, and improve school buildings
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 for property tax relief
To provide funds to build and furnish a new school building or buildings; to build and furnish addition(s) to school buildings
To provide funds to establish and maintain public recreation places and playgrounds
To provide funds for the payment of principal and interest or retirement of general obligation bonds issued for school infrastructure purposes
To provide funds for other authorized expenditures and purposes permitted by law
15.What Will Voters See On The Ballot? The ballot question will ask voters if they approve ADM’s new Revenue Purpose Statement. View Full Ballot Language
16.What happens if the community doesn’t approve the new Revenue Purpose Statement? In the event that the new revenue purpose statement is not approved on November 2, the district would bring a special ballot back to the voters in March of 2022.