In this week’s column, I am going to focus on the reason why there will be two questions on the bond issue ballot on March 1.

Our current total property tax rate in the district is $13.23 per $1,000 of taxable value. Of that $13.23, $2.70 is designated for paying off the debt created by the successful passage of the 2014 bond referendum when the voters gave permission to the school board to sell $10.6 million worth of bonds to pay for building construction. This $2.70 per $1,000 of taxable valuation is a portion of the $13.23 and is referred to as the “Debt Service Levy.”

Current Iowa law allows every Iowa School District to have a debt service levy of $2.70.  Iowa law allows a school district to go above the $2.70 limit when special permission is given by the voters. The second limit is $4.05 per $1,000 of taxable valuation.  But even though the voters may give the additional permission to set the new limit at $4.05, the new levy is whatever is needed to make the annual debt payments.

What does this mean for the March 1 Mid-Prairie referendum? The first question on the ballot will ask voters permission to sell $26.3 million of general obligation bonds to fund the $37.6 million worth of proposed new construction. (The difference will be paid for with sales tax and private donations.) To do this, the current debt service levy will need to increase 60 cents — from $2.70 to $3.30. 

To increase Mid-Prairie’s debt service levy to $3.30, the school board needs permission to go above the $2.70 limit to a new limit of $4.05. The second question on the ballot will ask Mid-Prairie voters’ permission to go to this new limit of $4.05. But the school board only needs 60 cents of the additional amount to go to $3.30, not the full amount to $4.05.

I know it’s confusing so maybe I can illustrate using this example. Let’s assume I have a credit card that has a $2,000 limit. I make purchases and pay the full balance every month but obviously, I can never purchase anything that goes over the $2,000 limit. Let’s suppose that one month I want to buy something that costs $2,500. To do that I need permission from the credit card company to raise my limit and let’s assume the credit card company sets the new limit to $3,000.  I can now purchase the $2,500 item, but I do not have to use the full $3,000.

Some individuals may be worried that even though the school board only needs $3.30, they could use the difference between $3.30 and $4.05 for new and different construction. The school board can’t do this on its own. The school board needs approval from voters for every construction project funded by general obligation bonds. They can’t add to the list without voter approval.

The school board can only pursue the construction projects contained on the first ballot question.  To use additional funds for other construction projects from the debt service levy, the school board would have to come back to the district voters for another bond referendum.  The voters are in complete control of what the debt service levy can be used for.  In my credit card example, if I went above $2,500 to buy something else in the next month at the $3,000 limit without my wife’s permission, it would not end well for me.

If the first question asking permission to sell $26.3 million in bonds passes by 60%, but the second question asking permission to raise the debt limit to $4.05 does not get the 60% needed, the school board will not get to proceed with the construction projects as proposed and will reassess the situation.

There are 82 Iowa school districts out of 328 where voters have approved a debt limit above $2.70. Schools in our area and conference that have a higher limit than $2.70 are Anamosa, Clear Creek-Amana, College Community, English Valley, Mt. Vernon, Solon, WACO, West Branch and Wilton.

I have been asked about the deadline for requesting absentee ballots. The deadline for requesting an absentee ballot is February 14. The easiest way to request an absentee ballot is to access the Iowa Secretary of State website at https://sos.iowa.gov/elections/electioninfo/absenteeinfo.html.  You may also contact your respective County Auditor (Washington County: 319-653- 7717, Johnson County: 319-356-6004, or Iowa County Auditor: 319-642-3923) or me (319-936-8601, mschneider@mphawks.org) and we can guide you through the process.