PPEL (Physical Plant and Equipment Levy)
When can we expect a PPEL Vote? The District is proposing a PPEL vote in September of 2016. This gives the district ample time to provide the community with important facts and to answer further questions related to the continuation of the levy.
What is the Physical Plant & Equipment Levy (PPEL)? This is not a new Levy (tax) and an extension of what is already in place. The voter approved Physical Plant and Equipment Levy (PPEL) is $1.34 per $1,000 taxable assessed valuation. 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. (Source: School Administrators of Iowa).
How does PPEL fit into the district’s financials? The Woodward-Granger Community School District (WGCSD) has relied on the PPEL for many, many years to provide important maintenance funding. Well maintained school buildings, athletic facilities, and grounds are an essential part of our school community.
The insured value of the physical plant our community has instructed the District to care for is in excess of $31 million (4 student attendance centers, 1 district office, 2 bus garages, wrestling room, industrial technology shop and misc. outbuildings at various athletic facilities ). To be responsible stewards the District needs funds to maintain this community investment in our students. The annual revenue from the voted PPEL only represents 1.1% of this physical plant investment. The General fund is not a sustainable option for these projects since it responsible for delivering our instructional programs. Our Statewide Penny is already being utilized to pay for new buildings and infrastructure needs and the capacity of this funding is already in question as the Governor has proposed to divert some of this funding for water quality issues in the state.
How much does this levy generate and for how long? The maximum length of the voter-approved PPEL program is 10 years. The current levy expires June 30, 2018 Our district voter-approved PPEL program is projected to provide between 300K and 425K per year for the next 10 years. The Woodward-Granger Community School District has had the voter-approved PPEL in place at the $1.34 / $1,000 assessed valuation since 2008.
How does the passage of the PPEL affect me? Renewal of this levy will not increase your property taxes. The district is asking for approval to continue the voter- approved rate that has been in effect for the past 10 years so that we may continue to use the funding in our maintenance and upgrades plan. The current rate is $1.34 per $1,000 of assessed property valuation. The district wants to keep the rate at the $1.34 level for the next 10 years.
Can the PPEL program be used to offset shortages in the district’s general fund? No, the PPEL revenues cannot be used for salaries, textbooks, or new educational programs. The requirements for the use of the PPEL funds are very specific and limited to maintenance, technology, and equipment.
What are some examples of how the PPEL revenues can be used? PPEL Fund Uses:
- Safety & Security Enhancements
- Athletic Fields & Playgrounds
- Exterior Hard Surfaces, such as asphalt & concrete
- Building Roof Replacement
- Building Envelope, to include windows & masonry tuck pointing
- Painting & Asbestos Abatement
- Heating, Mechanical, Electrical & Plumbing Life Cycle Replacements
- Mechanical Equipment Upgrades
- Carpet & Flooring Replacement
- Furniture Replacement
- Locker Replacements
- Large Musical Instruments
- Relocation of Modular Classrooms
- Building Leases
- Vehicle & Equipment Purchases
- Technology Infrastructure and Computers
- Building Leases
What happens if the PPEL vote does not pass? Some projects and purchases still need to be completed and would have to be funded by other revenue sources, such as the general fund, where approximately 70% is dedicated to staff salaries/benefits. Our district would struggle to meet the maintenance requirements for our facilities and grounds without the approved PPEL funds in place.
What is the difference between the Physical Plant and Equipment Levy (PPEL) and the State One Cent Sales and Service Tax Program? PPEL funds maintain or replaces what we currently have, and SAVE manages growth by funding major building renovations and building new facilities. If we used SAVE for maintenance, we would remove the much needed funding for the new building and renovations projected under our long-range facility plans.
Brad Anderson
Superintendent
