Why the P.P.E.L. Vote is Important

posted February 15, 2021

The Board of Directors at Cardinal Schools submitted a ballot issue regarding the renewal of the Physical Plant and Equipment Levy (P.P.E.L.) at the March 2, 2021 Special Election. The Cardinal School District has participated in the P.P.E.L. for 20 years. 

P.P.E.L. Facts: 

• The $1.34 P.P.E.L. is a Voter-approved Levy, maximum of 10 years. The revenues are restricted to school building repairs, maintenance, improvements, or new construction. 
• P.P.E.L. revenues can also be used to purchase technology and other equipment items over $500.
• The current voter-approved P.P.E.L. expires June 30, 2021. The District has generated an average of $250,000 per year over the past 10 years on the $1.34 P.P.E.L.
• P.P.E.L. is funded with 100% property tax. P.P.E.L. requires a 50% majority to be approved.

Where to Vote on March 2

Polling locations will be open from 7 am - 8 pm at the following addresses:

Davis, Van Buren, & Wapello County Residents:

• Agency Community Center (102 W. Main St.)
• Eldon Library Hall (608 W. Elm St.)

Jefferson County Residents:

• Batavia Community Center (1006 3rd St.)

Frequently Asked Questions

What is P.P.E.L.? 
P.P.E.L. stands for Physical Plant and Equipment Levy. P.P.E.L. provides the necessary funds to maintain the school buildings, complete site improvements and purchase school equipment. P.P.E.L. is an annual property tax levy, not a bond issue. 

How long has the District had a P.P.E.L.? 
Cardinal Schools has had a P.P.E.L. for over 20+ years. Prior to 1992, P.P.E.L. was called the "Schoolhouse Levy". 

What is the current P.P.E.L. levy amount? 
P.P.E.L. is limited to $1.34 per $1,000 of taxable property valuation. Cardinal's current levy is $1.34 and, if not renewed, will expire in 2021. Voters are being asked to renew for another 10 years, extending the levy until 2031 

How many schools have P.P.E.L.? 
Currently, 268 of the 327 Iowa School Districts (82%) have a voter-approved P.P.E.L. All of these schools levy the addi­tional $.33/$1,000 for the board approved P.P.E.L. component. 

Why is the school board requesting the voters to renew the P.P.E.L. now? 
The current P.P.E.L. will expire on June 30, 2021 (2020-2021 school year). To keep the buildings functioning safely and efficiently, the District is required to do ongoing facility maintenance planning, always looking 10 years out to predict routine facility maintenance as well as general improvements. To assure continuous planning for long-term building maintenance, the Board is requesting the voters to renew the P.P.E.L. 

What happens if the P.P.E.L. is not renewed? 
Maintenance of school buildings is essential to meeting the basic educational needs of the students. Under Iowa law, construction of school buildings, site improvements, and large equipment purchases are a local taxpayer's responsi­bility. Repair and improvement expenditures must be made to maintain safe and efficient buildings. If funds are not provided by P.P.E.L., costs for building repairs must be paid from another source. Cardinal has used Sales Tax funds for large construction projects to avoid levying future property tax construction bonds. The only remaining source of funding for school maintenance, other than P.P.E.L., would be the General Fund. Use of the General Fund for building maintenance will reduce funding available for teacher salaries, support staff, curriculum, programs, supplies and all other support for teaching and learning. Without P.P.E.L. funds, the General Fund will be spread even thinner to meet the demands of education and school maintenance. 

What does P.P.E.L. fund?

From 2010 to 2020, the P.P.E.L. funded Cardinal Community School District:

• School buses
• Student computers purchased
• Teacher technology purchased
• Remodeling of band/music rooms
• Increased parking for the elementary
• Replaced roof for the high school common area
• New concrete throughout the District
• New elementary playground

Tax Impact

• Assessed Value is not "Market Value." Assessed Value is determined by the County Assessor while Market Value is determined by the open real estate marketplace. Market Value plays no role in determining taxable value or property tax dollars. 
• Homestead Credit may vary from county to county 
• Farm Buildings are assessed with the Agriculture Property Rollback
• Ag Property will pay the school levy but will pay a different City Levy than residential property if the land is within city limits. 
• Within city limits, Ag Property pays the Ag Levy (likely near the maximum rate of $3.00375) and not the City Levy but, does still pay all school levies, including P.P.E.L. and Debt Service. The farm home pays the entire levy just as any other home within city limits, except the City levy is replaced with the County Levy. 

Ag Land Examples, Assuming "Average" Assessed Valuation of Land

• 40 acres  x  $1.10574  =  $44.23
• 80 acres  x  $1.10574  =  $88.46
• 160 acres  x  $1.10574  =  $176.92
• 240 acres  x  $1.10574  =  $265.38
• 320 acres  x  $1.10574  =  $353.84
• 500 acres  x  $1.10574  =  $552.84
• 1,000 acres  x  $1.10574  =  $1,105.74
• 2,000 acres  x  $1.10574  =  $2,211.48

P.P.E.L. Brochure

Informational Meeting

February 24 | 6 pm | Cardinal High School Cafeteria

Please join us for an informational meeting about the P.P.E.L. to learn more. Superintendent Joel Pedersen will answer any questions voters may have. 

This is an extension of the levy that the district has had in place for 20 years. This is not a new tax levy. Please contact Superintendent Joel Pedersen for any additional questions at 641-652-7531 ext. 3201 or joel.pedersen@cardinalcomet.com.