TAX IMPACT

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.

The School District is legally obligated to only use referendum funds as stated in the ballot language. 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.