Discretionary Funding Sources

Physical Plant and Equipment Levy (PPEL)

(Iowa Code, Chap. 298.2-.3)

The Physical Plant and Equipment Levy (PPEL) comprises two levies—the regular Physical Plant and Equipment Levy and the voter approved Physical Plant and Equipment Levy. The maximum for the regular is 33 cents per $1,000 taxable assessed valuation, and the maximum for the voter approved is $1.34 per $1,000 taxable assessed valuation, for a combined maximum of $1.67 per $1,000 taxable assessed valuation.

School districts may adopt the regular Physical Plant and Equipment Levy by certifying the tax to the county auditor and the Department of Education by April 15 as part of the regular budget process.

School districts may use the voter approved Physical Plant and Equipment Levy only upon a majority approval of the voters of the school district. The maximum length of the levy may not exceed ten years and must be stated in the resolution prior to the election.

The uses of the funds and interest earned on funds raised under both the regular and voter approved Physical Plant and Equipment Levy are as follows:

1. Purchase of grounds, including legal costs relating to acquisition of the property.
2. Acquisition surveys of property costs of relocation assistance under the state and federal law, and other costs incidental to property acquisition
3. Improvement of grounds, which includes grading, landscaping, shrubbery, construction of sidewalks, roadways, retainer walls, etc.
4. Purchasing of buildings and single units of equipment and technology exceeding $500 in value.
5. Payment of debts contracted for the election or construction of schoolhouses or buildings, not to include interest on bonds.
6. Repair and remodeling reconstruction, improving inter-expanding the school houses or buildings and additions to existing school buildings.
7. The purchase of transportation equipment for transporting students. It is important to note that only the property tax portion of the PPEL may be used for debt retirement.