FREQUENTLY ASKED QUESTIONS

Last November 2023, the School District asked voters to approve a series of facility improvements. It didn’t pass because it needed at least 60% approval and it received 54%. The needs for our school facilities are still there. After engaging with the community in a community-wide survey last spring and with a community advisory committee, the School Board eliminated several scope items, reduced the cost by over a million dollars, and will try again with another vote on November 5th.

We need to do these projects to protect our school buildings, which are vital assets in our community. Just like homes, schools need regular upgrades or replacements for things like HVAC systems (heating, cooling, and ventilation), windows, and plumbing. These projects also benefit our students and staff. Studies show that replacing and upgrading HVAC systems can improve how well students perform and think in school. Upgrading safe and secure entrances reduces the risk of unauthorized persons gaining access to school grounds. Renovations to educational spaces at the elementary school would enhance student support such as early childhood, speech, and title programs.

The School District receives money each year from the Federal and State governments, as well as local taxpayers. The Federal and State money mainly pays for everyday things like teachers' salaries, programs, and school supplies. But when it comes to fixing or upgrading our buildings, that's mostly up to our local communities. If there are big costs for building projects, the district needs to ask voters to approve a referendum so they can borrow money to pay for them.

Separate line-item accounting records must be kept for all bond related expenses to ensure the funds are being used legally and appropriately. The School District’s finances are audited annually including use of referendum funds. The independent auditor then turns over the audit information to the state of Iowa. The referendum project expenses would be a part of the annual audit until all funds are spent.

When costs are estimated at this stage of the process, they are based off industry-wide database information that construction companies use (i.e. Mortenson, RS Means, etc.), similar recently completed work by our partners, and at times, conversations with specific suppliers/contractors for specialized work. An industry-wide escalator is used to account for inflation and construction increases for work that would be scheduled out a year or more. If the referendum passes, bids are solicited from qualified companies by the school board and contractor/supplier decisions are made by the board.

The cost involved with building a new elementary building would likely be more than $50 million, much more than the current $12 million dollar referendum, and would require a significant tax increase to our community. From an engineering and architectural standpoint, the “bones” of our school are good. Updates to the infrastructure and equipment, and updates and modifications to how we operate in the building are far more cost effective and fiscally responsible.

• An updated safe and secure entry would require all visitors to check in with the office staff in person before being allowed access to the school. This way, we can be sure that only visitors we approve have access to our buildings.

• A secure entrance means that staff control who has access to the building so we know that our students are safe.

• There are other improvements that further enhance security, such as improved camera systems, double locked entrances that only allow access through the office, and more.

The size and cost of the projects proposed in this referendum exceed the capacity of the school district's annual operating budget. While the district has effectively managed general upkeep and smaller projects over the years, larger initiatives, such as roof replacements and HVAC systems, typically require additional funding. Similar to how homeowners may seek loans for significant renovations, school districts often require a school building bond, which requires voter approval. 

Yes, Underwood teachers and staff will have the opportunity to provide input on the final planning decisions.

The bond is expected to be outstanding for 21 budget years. The district would consult with its financial advisor throughout the term and explore ways to potentially shorten the loan, saving taxpayer funds.