SCHOOL INFRASTRUCTURE LOCAL OPTION SALES

AND SERVICE TAX

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Background

• 1998 Iowa legislature authorizes a Local Option Sales and Service Tax for school infrastructure.

• Option tax would be imposed on a county-wide basis following approval by a simple majority of voters.

• Each school district in the county shares tax receipts based on a ratio of resident pupil enrollment.

• Maximum tax rate is one percent that may be imposed for a period up to ten years.

• Local option sales tax is imposed on sales and services except for food, prescription drugs, motor fuel, automobiles, farm equipment, and rentals subject to an existing hotel/motel tax.

• Funds cannot be used for any kind of personnel costs.

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Muscatine County SILO BenefitColumbus (159*)

$856,0682%

Davenport (48*)$381,351

1%Durant (119*)

$627,6312%

Louisa-Musca-tine (439*)$2,256,722

5%

Muscatine (5504*)

$30,035,87167%

West Liberty (1180*)

$6,300,03614%

Wilton (741*)$4,185,013

9%

• Number of Students residing in Muscatine County• Funds represent total collected over first 10 years v 1.4

Muscatine Schools’ Current

Ten-Year Plan 2000-2010

• In 1999 the MCSD School Board approved the current ten-year plan.

• $30 million will be generated from the current local option sales tax.

• $3.5 million in private and public grants were used in conjunction with the school infrastructure local option sales tax funding.

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The district will use 25% to reduce property tax• Over $7 million will be used to reduce

property tax.

The district is debt free• All the projects will be completed without

creating debt.

Promises Made… Promises Kept

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Promises Made… Promises Kept

Additions, renovations, life safety features and air conditioning in our elementary schools

Elementary Buildings$12 million

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Promises Made… Promises Kept

• Elementary Renovations…

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• Elementary Renovations…

Promises Made… Promises Kept

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Promises Made… Promises Kept

• Elementary Renovations…

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Additions, renovations, life safety features and air conditioning in both middle schools

Promises Made… Promises Kept

Middle Schools$8 million

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Promises Made… Promises Kept

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Additions, renovations, including the new MHS cafeteria and the Stan Howe Student Commons, life safety features and air conditioning at the high school

Promises Made… Promises Kept

Muscatine High School$7.5 million

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All Iowa Counties Have A SILO Tax

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Economic Development

• Muscatine County – Best choice for young families

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Projected Funding – Next 10 Years

• $33,263,110

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Promises to the Next Generation of Learning

• Property tax relief/future needs• Life safety and security• Energy conservation and HVAC

improvements• ADA compliance• Parking/Traffic safety• Remodeling and renovations• New construction• Educational technology• Environmental issues

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10-Year Facilities Plan

Visitor's Bleachers

Technology

Middle School

Future Updates

Environmental

Bruner Field

Administration

0 2,000,000 4,000,000 6,000,000 8,000,000

44,000586,500

2,000,000112,200

4,316,4507,365,509

4,733,150184,300200,000

4,139,573100,000250,000

89,500Estimated Cost

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Sample Ballot

SHALL THE FOLLOWING PUBLIC MEASURE BE ADOPTED: YES ___________

NO ___________ A local sales and services tax for school infrastructure projects shall be imposed in Muscatine County at the rate of one percent. The tax will begin on July 1, 2010. The tax will be in effect for a period of ten years until June 30, 2020. The money received from the tax shall be spent for school infrastructure. “School infrastructure” means, those activities for which a school district is authorized to contract indebtedness and issue general obligation bonds under Section 296.1, * * *. Those activities include construction, reconstruction, repair demolition work, purchasing, or remodeling of schoolhouses, stadiums, gyms, fieldhouses, and bus garages and the procurement of schoolhouse construction sites and the making of site improvements and those activities for which revenues under Section 298.3 or 300.2 may be spent. Additionally “school infrastructure” includes the payment or retirement of outstanding bonds previously issued for school infrastructure purposes as defined in Section 423E.1(3) and the payment of bonds issued under Section 423E.5, for debt reduction or property tax relief, or for any other such other purposes authorized by Chapter 423E, Iowa Code, or for any purpose or purposes now or hereafter authorized by law.

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Presentation Dates

• Monday, February 18 at 7 p.m.  Administration Center (auditorium)• Tuesday, February 19 at 7 p.m. 

West Middle School  (Library)• Wednesday, February 20 at 7 p.m.

Muscatine High School (auditorium)• Thursday, February 21 at 7 p.m.

Central Middle School (auditorium)

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Special ElectionTuesday, March 4, 2008

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Questions?

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