Revenue Purpose Statement Vote to Utilize SAVE Tax Funds
The Interstate 35 Community School District is seeking voter approval of a proposed Revenue Purpose Statement (RPS) that describes how the District will utilize funds made available through the Iowa Legislature’s extension of the Secure an Advanced Vision for Education (SAVE) Fund, commonly referred to as the One-Cent Sales Tax. The District’s current RPS expires January 1, 2031.
Approving the proposed RPS will allow the District to use future SAVE funds for school infrastructure and technology through calendar year 2050, when the SAVE law expires. It will not change the current sales tax rate. Citizens will continue to pay the one-cent sales tax even if the proposed RPS is not approved.
WHEN TO VOTE: Tuesday, September 13, 2022
WHERE TO VOTE: Voters should contact the Warren, Madison, or Clarke County Auditor’s office to determine the correct polling place or to request an absentee ballot.
In May 2019, HF 546 was signed into law extending the Secure an Advanced Vision for Education (SAVE) law through calendar year 2050. SAVE allows school districts to borrow against statewide penny sales tax revenue to help fund school infrastructure projects.
On June 27, 2022, the Interstate 35 Board of Education passed a resolution to call an election on September 13, 2022, to include the question of adopting a new RPS. Approval of the new RPS will not affect the sales tax rate. Rather, adoption of the proposed RPS will allow the Interstate 35 CSD to use SAVE funds to support current facility and technology needs and to provide funding for future building needs for the full term of the SAVE authorization.
What are SAVE Funds used for in the district?
The Secure an Advanced Vision for Education (SAVE) Fund is a statewide tax that provides funding to specifically support school infrastructure and technology needs.
The SAVE revenue has funded many key infrastructure and technology projects in the district, including:
Technology infrastructure improvements, as well as student and staff learning devices
Construction of the Auditorium, CTE Building, Fine Arts Classrooms, and High School Commons, in conjunction with general obligation bonds
Update building security and entrance doors
New school buses
Construction of the Fitness Center
Roof replacement on school facilities
What does the new Revenue Purpose Statement say? The RPS specifies the use of funds Interstate 35 will receive from the the State of Iowa Secure an Advanced Vision for Education (SAVE) Fund, and is intended to be used in the following manner:
To provide funds for technology infrastructure
To provide funds for school safety and security infrastructure
To provide funds to build, remodel, reconstruct, repair, improve, or demolish school buildings
To provide funds to purchase, lease, or lease-purchase buildings, equipment, or technology and to repair transportation equipment
To provide funds for property tax relief
To provide funds to implement energy conservation measures
To provide funds for emergency demolition, cleanup, and repairs due to natural disasters
To provide funds to establish and maintain public recreational areas and playgrounds
To provide funds for the payment of principal and interest or retirement of general obligation bonds issued for school infrastructure purposes and tax revenue bonds
To provide funds for other authorized purposes permitted by law
The entire RPS as it will appear on the ballot can be viewed here.
What will the approval of this measure allow?
In order to complete large capital projects in a timely manner, districts often utilize low-interest borrowing strategies to utilize future SAVE funds today. In order to use SAVE funds for school infrastructure projects beyond the sunset of their current Revenue Purpose Statements, districts must have a new Revenue Purpose Statement approved by voters outlining how the SAVE funds may be used.
What if the Revenue Purpose Statement is not approved?
A simple majority (50%+1) is needed for the RPS to pass. If the new RPS is not approved on September 13, the district will need to spend SAVE funds in a manner previously allowed under the original RPS. A special ballot can be brought back to voters not less than six months after the previous election.
How can I learn more?
If you have a question about the Revenue Purpose Statement or vote on September 13, 2022, please contact Sharon Dentlinger, Superintendent, at the Interstate 35 District Office at 641-765-4291.