Voted PPEL
BACKGROUND: The Sibley-Ocheyedan Community School District has had the Voted Physical Plant and Equipment Levy (VPPEL) in place since it was approved by voters for the first time on September 8, 2015. The rate approved at that time was $.67. The voted PPEL provides important "maintenance" funding to repair roofs, playgrounds, and sidewalks; remove asbestos; purchase equipment such as school buses and music instruments; support classroom technology (student chromebooks, etc); and more. Well-maintained schools are an essential part of the educational process.
When is the community vote on PPEL? On Tuesday, Nov. 4, 2025, Osceola County residents will be asked to vote on the Physical Plant and Equipment Levy. Polls will be open from Z am to 8 pm.
How much does this levy generate and for how long? The maximum length of the levy is 10 years. The current levy would generate approximately $275,000 annually for the 10-year period. After 10 years, the district may ask the voters to approve it again. The new proposed levy would be able to generate up to approximately $550,000 annually.
Does the district currently receive PPEL dollars? Yes, we have the board approved PPEL which has a limit of 33 cents per $1,000 of taxable valuation. This generates approximately $139,000 worth of funding. We also currently have the voter approved PPEL at 5.67. The Board is asking for the public to approve increasing the voted PPEL levy to $1.34 to bring the total PPEL levy to $1.67.
What is the legal maximum for the voted PPEL? Iowa law allows a maximum of $1.34 per $1,000 of taxable valuation. Previously the board had asked the voters to approve $.67 per $1000 of taxable valuation. The Sibley-Ocheyedan Board has decided to ask the voters for the full $1.34 cents per $1,000 of taxable valuation.
How many schools in Iowa utilize the voted PPEL? Of the 325 Iowa school districts, there are 281 that utilize the voted PPEL. 181 districts are at the maximum rate of $1.34 per $1,000 of taxable valuation. The remaining schools have rates other than the ones mentioned or a combination of property tax and income surtax.
How is the VPPEL funded? The VPPEL can be funded solely by property tax or a combination of property tax and income surtax. Under the law, the VPPEL cannot be all income surtax. The Board has decided that a combination of property tax and income surtax would be the best for the Sibley-Ocheyedan School District.
What is Income Surtax? Income surtax is basically a tax on your tax. If you owe $1000 in individual State Income Taxes and the income surtax is 3%, that means you now pay $1030. ($1000 x 3% income surtax = $30)
The ballot measure says the percent of Income surtax shall not exceed 20 %. Does that mean my individual State Income taxes will go up by 20%? NO. 20% is the max that the Income surtax can be set at by law. Also, the income surtax is a tax on your individual income taxes in the state of Iowa, it is not your individual tax rate. Please see the previous question.
What is our current Income Surtax rate for the voted PPEL? At Sibley-Ocheyedan CSD the rate for FY26 is set at 3%.
Do Income Surtax Dollars generate more money for the district? NO. The income surtax in a way to shift where the tax dollars come from. Income surtax is used in combination with property taxes to provide the funds to Sibley-Ocheyedan CSD from the voted PPEL. The income surtax allows the voted PPEL to be funded through both individual income taxes and property taxes.
If a school district runs a budget deficit, why isn't PPEL used to offset the general fund? PPEL cannot be used for salaries, textbooks, or educational programs. The requirements to use these funds are very specific to maintenance and equipment.
What are examples of the types of things the levy can be used for? PPEL funds can be used for technology such as computer replacements, transportation (buses, vehicles), musical instruments, roofing replacement and repair, masonry repairs, energy conservation improvements, concrete and asphalt repairs, other equipment, and remodeling projects.
What happens if the levy does not pass? Some projects and purchases still need to be completed and will have to be funded by other options such as the general fund, where approximately 80 percent of the fund is dedicated to staff salaries. The district will struggle to meet the maintenance requirements of our schools. Some future projects will have to be delayed or outright cancelled.
Can PPEL be used for facilities that are not owned by the school district? PPEL funds can only be used on facilities owned by the school district.
