The Management Fund is for early retirement, unemployment compensation, TORT liability and insurance that meets the statutory requirements for expenditures. The local school board has the discretion as to the amount of dollars that are generated through property tax for the management levy. The board certifies the amount of tax as part of the school district's budget certification process. The revenue is 100% property tax.
There are two types of Physical Plant and Equipment Levies. The regular PPEL is a maximum of 33 cents per $1,000 of taxable assessed valuation of the district. This amount is determined each year by the board and is 100% property tax. The voter approved PPEL must be approved by the voters by a 50% margin of those voters voting at the election. The maximum limit that may be generated is $1.34 per $1,000 of taxable assessed valuation. An option on the voter approved PPEL is a portion of the voted PPEL and may be funded by an income surtax on the Iowa income taxes paid by the residents of the school district. This cannot exceed an income surtax rate of 20% total for the school district.
The PERL fund may be established by a vote of the residents by a simple majority for the purpose of establishing and maintaining public recreational places and playgrounds in the public school buildings and grounds. The maximum tax rate that can be approved for this purpose is 13 1/2 cents per $1,000 of taxable assessed valuation. The levy continues unless voted to discontinue. The board of education certifies the tax rate for the PERL as part of the school district's budget certification process each year.
Only one school district qualifies for the use of the Library Fund. The purpose of this fund is to allow for contracting with the public library for library services. The maximum levy authorized for the Library Fund is 20 cents per $1,000 of taxable assessed valuation to pay for a contract for library services.
The Student Activity Fund has no taxing authority or state aid as part of its funding sources. The fund receives its revenue from gate receipts, fees and gifts. Funds in the student activity fund are considered local school district funds and fall under the auditing requirements specified in the Code of Iowa. The accounts normally maintained in the Student Activity Fund are the athletic, music, drama and other student purposes accounts.
The Capital Projects Fund is used any time the local school district has a major construction or renovation project. It is designed to be used for specific projects to keep track of expenditures and revenues for that particular project. One exception to that statement is that the local option sales tax approved by each county is deposited in the Capital Projects Fund. When the project is completed, the remaining funds may be transferred by board resolution to the Debt Service Fund, the Physical Plant and Equipment Levy Fund or another fund from which the surplus originated, or to the General Fund, with a simple majority approval by the voters of the school district. The local option sales tax revenue may be used for infrastructure purposes, and if approved by the voters, for the purposes authorized in the PPEL and the PERL.
