LOCAL - STATE - FEDERAL - MISCELLANEOUS REVENUE

Code No. 704.1

Revenues of the school district are received by the board treasurer.  Other persons receiving revenues on behalf of the school district will promptly turn them over to the board treasurer.

Revenue, from whatever source, is accounted for and classified under the official accounting system of the school district.  It is the responsibility of the board treasurer to deposit the revenues received by the school district in a timely manner.  School district funds from all sources will not be used for private gain or political purposes.

Tuition fees received by the school district are deposited in the general fund.  The tuition fees for kindergarten through twelfth grade during the regular academic school year are set by the board based upon the superintendent's recommendation in compliance with current law.  Tuition fees for summer school and adult education are set by the board prior to the offering of the programs.

The board may charge materials fees for the use or purchase of educational materials.  Materials fees received by the school district are deposited in the general fund.  It is the responsibility of the superintendent to recommend to the board when materials fees will be charged and the amount of the materials fees.

Rental fees received by the school district for the rental of school district equipment or facilities are deposited in the general fund.  It is the responsibility of the superintendent to recommend to the board a fee schedule for renting school district property.

Proceeds from the sale of real property are placed in the Physical Plant and Equipment Levy (PPEL) fund. However, following a properly noticed public hearing, the board of directors may elect to deposit proceeds from the sale of real property or buildings into any fund under the control of the school corporation. Notice for the public hearing must be published in a newspaper of general circulation within the district not less than ten and no more than twenty days prior to the proposed public hearing.  Notice of the public hearing must include the date, time and location of the public hearing, and a description of the proposed action.  The proceeds from the sale of other school district property are placed in the general fund.

The board may claim exemption from the law prohibiting competition with private enterprise for the following activities:

      ·    Goods and services directly and reasonably related to the educational mission;

      ·    Goods and services offered only to students, employees or guests which cannot be provided by private enterprise at the same or lower cost;

      ·    Use of vehicles for charter trips offered to the public, full- or part-time, or temporary students;

      ·    Goods and services which are not otherwise available in the quantity or quality required by the school district;

      ·    Telecommunications other than radio or television stations;

      ·    Sponsoring or providing facilities for fitness and recreation;

      ·    Food service and sales; and,

      ·    Sale of books, records, tapes, software, educational equipment, and supplies.

Legal Reference:          Iowa Code §§ 12C; 23A; 24.9; 257.2; 279.8, .41; 282.2, .6, .24; 291.12, 297.9-.12, .22; 301.1.

Cross Reference:         701.1   Depository of Funds

                                    703      Budget

                                    803      Selling and Leasing

                                    905      Use of School District Facilities & Equipment

Adopted:               10/19/1992

Reviewed:             1/17/2022

Revised:                1/17/2022

DEBT LIMITS

Credit Ratings
The school district seeks to maintain the highest possible credit ratings for all categories of short- and long-term debt that can be achieved without compromising the delivery of services and the achievement of adopted objectives.  The school district recognizes that external economic, natural, or other events may from time to time affect the creditworthiness of its debt. Nevertheless, the school district is committed to ensuring that actions within their control are prudent.

Debt Limits
For general obligation debt, the school district’s outstanding debt limit shall be no more than five percent (5%) of the actual value of property within the school district’s boundaries, as prescribed the Iowa constitution and statutory restrictions.

For revenue debt, the school district’s goal is to provide adequate debt service coverage of at least 1.20 times the annual debt service costs.

In accordance with Iowa law, the school district may not act as a conduit issuer or issue municipal securities to raise capital for revenue-generating projects where the funds generated are used by a third party (“conduit borrower”) to make payments to investors.

PURPOSES AND USES OF DEBT 

Capital Planning
To enhance creditworthiness and prudent financial management, the school district is committed to systematic capital planning, intergovernmental cooperation and coordination and long-term financial planning.

Capital Financing
The school district may issue long-term debt for capital projects as authorized by Iowa law, which include, but are not limited to, the costs of planning, design, land acquisition, buildings, permanent structures, attached fixtures or equipment, and movable pieces of equipment. Capitalized interest may be included in sizing any capital project debt issue.  The types of debt instruments to be used by the school district include:

• General Obligation Bonds
• General Obligation Capital Loan Notes
• Bond Anticipation Notes
• Revenue Anticipation Notes
• School Infrastructure Sales, Services and Use Tax Revenue Bonds
• Lease Purchase Agreements, including Certificates of Participation

Working Capital Financing
The school district may issue debt for working capital for operations after cash flow analysis has determined that there is a mismatch between available cash and cash outflows.  The school district shall strive to repay working capital debt by the end of the fiscal year in which the debt was incurred.  A Working Capital Reserve may be included in sizing any working capital debt issue.

Refundings
Periodic reviews of all outstanding debt will be undertaken to determine if refunding opportunities exist. Refunding will be considered (within federal tax law restraints) if and when there is a net economic benefit of the refunding or if the refunding is otherwise in the best interests of the school district, such as to release restrictive bond covenants which affect the operations and management of the school district.

In general, advance refundings for economic savings will be undertaken when a net present value savings exceeds three percent of the refunded debt can be achieved.  Current refundings, which produce a new present value savings of less than three percent will be considered on a case by case basis taking into consideration bond covenants and general conditions.  Refundings with negative savings will not be considered unless there is a compelling public policy objective for doing so.

DEBT STANDARDS AND STRUCTURE

Length of Debt
Debt will be structured for the shortest period consistent with a fair allocation of costs to current and future beneficiaries or users.  Long-term debt will not be issued for periods exceeding the useful life or average useful lives of the project or projects to be financed.  All debt issued will adhere to state and federal law regarding the length of time the debt may be outstanding.

Debt Structure
Debt will be structured to achieve the lowest possible net cost to the school district given market conditions, the urgency of the capital project, the type of debt being issued, and the nature and type of repayment source.  To the extent possible, the school district will design the repayment of its overall debt to rapidly recapture its credit capacity for future use.

Generally, the school district will only issue fixed-rate debt.  In very limited circumstances, the school district may issue variable rate debt, consistent with the limitations of Iowa law and upon a finding of the board that the use of fixed rate debt is not in the best interest of the school district and a statement of the reasons for the use of variable rate debt.

All debt may be structured using discount, par or premium coupons, and as serial or term bonds or notes, or any combination thereof, consistent with Iowa law.  The school district should utilize the coupon structure that produces the lowest True Interest Cost (TIC) taking into consideration the call option value of any callable maturities.

The school district will strive to structure their debt in sinking fund installments for each debt issue that achieves, as nearly as practicable, level debt service within an issue or overall debt service within a particular classification of debt.

Derivatives (including, but not limited to, interest rate swaps, caps, collars, corridors, ceiling and floor agreements, forward agreements, float agreements, or other similar financing arrangements), zero-coupon or capital appreciation bonds are not allowed to be issued consistent with State law.

Decision Analysis to Issue Debt
Whenever the school district is contemplating the issuance of debt, information will be developed concerning the following four categories commonly used by rating agencies assessing the school district’s credit worthiness, listed below.

Debt Analysis – Debt capacity analysis; purpose for which debt is proposed to be issued; debt structure; debt burden; debt history and trends; and adequacy of debt and capital planning.

Financial Analysis – Stability, diversity, and growth rates of tax or other revenue sources; trend in assessed valuation and collections; current budget trends; appraisal of past revenue and expenditure trends; history and long-term trends of revenues and expenditures; evidences of financial planning; adherence to GAAP; audit results; fund balance status and trends in operating and debt funds; financial monitoring systems and capabilities; and cash flow projections.

Governmental and Administrative Analysis – Government organization structure; location of financial responsibilities and degree of control; adequacy of basic service provision; intergovernmental cooperation/conflict and extent of duplication; and overall planning efforts.

Economic Analysis – Geographic and location advantages; population and demographic characteristics; wealth indicators; types of employment, industry and occupation; housing characteristics; new construction; evidences of industrial decline; and trend of the economy.

DEBT ISSUANCE 

Credit Enhancement
Credit enhancements (.i.e., bond insurance, etc.) may be used but only when the net debt service on the debt is reduced by more than the costs of the credit enhancement.

Costs and Fees
All costs and fees related to issuing the debt will be paid out of debt proceeds and allocated across all projects receiving proceeds of the debt issue.

Method of Sale
Generally, all school district debt will be sold through a competitive bidding process.  Bids will be awarded on a TIC basis providing other bidding requirements are satisfied.

The school district may sell debt using a negotiated process in extraordinary circumstances when the complexity of the issue requires specialized expertise, when the negotiated sale would result in substantial savings in time or money, or when market conditions of school district credit are unusually volatile or uncertain.

Professional Service Providers
The school district will retain external bond counsel for all debt issues.  All debt issued by the school district will include a written opinion by bond counsel affirming that the school district is authorized to issue the debt, stating that the school district has met all Iowa constitutional and statutory requirements necessary for issuance and determining the debt’s federal income tax status.  The bond counsel retained must have comprehensive municipal debt experience and a thorough understanding of Iowa law as it relates to the issuance of the particular debt.

The school district will retain an independent financial advisor.  The financial advisor will be responsible for structuring and preparing all offering documents for each debt issue.  The financial advisor retained will have comprehensive municipal debt experience, experience with diverse financial structuring and pricing of municipal securities.

The treasurer shall have the authority to periodically select other service providers (e.g., escrow agents, verification agents, trustees, arbitrage consultants, rebate specialist, etc.) as necessary to meet legal requirements and minimize net debt costs.  These services can include debt restructuring services and security or escrow purchases.

Compensation for bond counsel, financial advisor and other service providers will be as economical as possible and consistent with industry standards for the desired qualification levels.

DEBT MANAGEMENT

Investment of Debt Proceeds
The school district shall invest all proceeds received from the issuance of debt separate from the school district’s consolidated cash pool unless otherwise specified by the authorizing bond resolution or trust indenture.  Investments will be consistent with those authorized by Iowa law and the school district’s Investment Policy to maintain safety of principal and liquidity of the funds.

Arbitrage and Record Keeping Compliance
The treasurer shall maintain a system of record keeping reporting and compliance procedures with respect to all federal tax requirements which are currently, or may become applicable through the lifetime of all tax-exempt or tax credit bonds.

Federal tax compliance, record-keeping reporting and compliance procedures shall include not shall not be limited to: 

1)      post-issuance compliance procedures (including proper use of proceeds, timely expenditure of proceeds, proper use of bond financed property, yield restriction and rebate, and timely return filing);

2)      proper maintenance of records to support federal tax compliance;

3)      investments and arbitrage compliance; 

4)      expenditures and assets; 

5)      private business use; and

6)      designation of primary responsibilities for federal tax compliance of all bond financings.

Financial Disclosure
The school district is committed to full and complete financial disclosure, and to cooperating fully with rating agencies, institutional and individual investors, other levels of government, and the general public to share comprehensible and accurate financial information.  The school district is dedicated to meeting secondary disclosure requirements on a timely and comprehensive basis, as promulgated by the Securities and Exchange Commission.

The Official Statements accompanying debt issues, Annual Audits, and Continuing Disclosure statements will meet the standards articulated  by the Municipal Securities Rulemaking Board (MSRB), the Government Accounting Standards Board (GASB), the Securities and Exchange Commission (SEC), Generally Accepted Accounting Principles (GAAP) and the Internal Revenue Service (IRS).  The treasurer shall be responsible for ongoing debt disclosure as required by any Continuing Disclosure Certificate for any debt issue and for maintain compliance with disclosure standards promulgated by state and federal regulatory bodies.

Legal Reference:  Iowa Code §§ 74-76; 278.1; 298; 298A (2013).

Cross Reference:  701      Financial Accounting System
                                      704      Revenue

Adopted: 6/15/2020          
Revised:               
Reviewed: 12/21/2020      

Gifts-Grants-Bequests-Donations

Code No. 704.4

Recognizing that the loss of a member of the school community is deeply felt, the Edgewood-Colesburg Community School District will support staff, students and families who feel the loss, and will assist with connections to appropriate community resources. As places designed primarily to support learning, school sites should not serve as the main venue for the memorializing of students or staff.

The board believes gifts, donations, grants, and/or bequests to the school district involving money, equipment, and furnishings may be accepted by the District when they will further the interests of the school district. The District encourages gifts, donations, grants, and/or bequests that are not likely to be acquired from public fund expenditures.

Memorials for deceased students or staff shall be limited in form to perpetual awards or scholarships, collections of books, or items of historical or educational significance. Memorials involving concrete work, pavers, gardens, plantings or building/landscape modifications will not be permitted. Memorials shall be limited to one per loss. Monetary donations or fundraising contributions may be designated to the specific clubs, sport, or General fund for collection and administration of the gift.  For suggestions about specific needs or memorial ideas, consult with the Superintendent.  Other types of memorials may be considered for approval, at the discretion of the Superintendent/designee.

Most ordinarily, the ceremony for acceptance of the memorial commemorating the student or staff member will take place four to six months after the request, depending on seasonal conditions. Plaques may be created and given to the family at time of scholarship/contribution, or displayed in a designated viewing site.

The district desires to honor those who were students or employees at the time of their death or within three months of graduation or ending employment.  An area will be designated at the high school building for an indoor memorial.  The area should be accessible to the general public when the building is open but not in an area of main traffic flow.  It should be a place that allows quiet contemplation.  The high school building principal has final determination of this site.  A memorial plaque for students and a separate plaque for employees will be displayed.  A plate with the student’s or employee’s name along with the date of death will be engraved on the plate.  Each plate will be approximately the same size (1 ½” x 3” or less).  The administrative team will determine if the deceased meet the intent of the memorial. 

Generally, the following will apply when the District accepts gifts:

1. The Board is solely authorized to accept any monetary donations made to the District.
2. Equipment contributed to the schools becomes the property of the District and is subject to the same controls and regulations that govern the use of other school-owned property.
3. Contributions of equipment or services that may involve major costs for installation or maintenance or initial or continuing financial commitments from school funds shall be presented by the Superintendent’s office for Board consideration and approval.
4. Because of differences in economic resources available to the various schools, and for other reasons, the purchase of equipment on a matching fund basis (part of cost provided by an individual or organization and part by the Board from public funds) are discouraged. Additionally, to ensure equity of opportunity across schools, those making donations are encouraged to collaborate with the Superintendent/designee to identify ways that their contributions may positively impact the maximum number of students across the District.
5. Individuals or organizations desiring to contribute supplies or equipment will counsel with school officials regarding the acceptability of such contributions in advance of the solicitation of funds or by making budgetary appropriations.
6. A list of supplies and equipment contributed primarily for school use shall be reported to the Board by the Superintendent’s office at least annually.
7. Gifts for computer or other technology purchase will be accepted consistent with the technology plan.
8. Gifts for facilities will be accepted consistent with the facility plan of the District and if necessary will be renovated or built consistent with the required building codes or regulations applicable to education entities.

Employees, Board Directors, and prospective donors are reminded of state law regulating the giving of and/or receipt of gifts by public employees and elected officials. Nothing in this policy should be seen as modifying or overriding those restrictions, as outlined in Policy 402.4: Gifts to Employees, Policy 217.00: Gifts to Board Directors, and Policy

All gifts, donations, grants, and/or bequests shall be administered in pursuance of the terms of the gift, grant, and/or bequest. Such gifts shall become the property of the District and shall be under the control of the Superintendent and the Board.

Memorial Services:

As places designed primarily to support learning, school sites will not be available for a venue for funeral or memorial services. There are special circumstances that may arise in which a school site may be reserved and appropriate. An individual or family may request to have a funeral or memorial service, if the deceased fits any of the following criteria when the deceased may be categorized as:

1. Employee of the District
2. Student or alumni
3. Contributor to Edgewood Colesburg Community School either in time or money.
4. Board member

The facility request should be made directly to the Community Engagement Department. Requests will be considered based on availability, time, capacity, costs, and feasibility. Any costs for custodial assistance, damage, or set up shall be borne by those making the requests. This is considered a Class 1 rental. A recommendation shall be made to Superintendent/designee for final approval.

Legal References: Iowa Code §§ 279.42; 565.6.

Cross References

217                  Gifts to Board of Directors

402.04             Gifts to Employees

508.01             Class or Student Group Gifts

704.06             Online Fundraising Campaigns/Crowdfunding
Adopted:         04/12/21

Reviewed:       06/26/2023

Revised:          06/26/2023

Business Procedures and Non-Instructional Series

700 Series

STUDENT ACTIVITIES FUND

Code No. 704.5

Revenue raised by students or from student activities shall be deposited and accounted for in the student activities fund.  This revenue is the property of and shall be under the financial control of the board.  Students may use this revenue for purposes approved by the superintendent or superintendent’s designee.

Whether such revenue is collected from student contributions, club dues, and special activities or result from admissions to special events or from other fund-raising activities, all funds will be under the jurisdiction of the Board and under the specific control of the superintendent or superintendent’s designee.  They will be deposited in a designated depository and will be disbursed and accounted for in accordance with instructions issued by the superintendent.

It shall be the responsibility of the board secretary/district administrative assistant to keep student activity accounts up-to-date and complete.

Any unencumbered class or activity account balances will automatically revert to the activity fund when a class graduates or an activity is discontinued.

Legal Reference:  Iowa Code 279.8

Cross Reference: Student Activities

                                Financial Accounting System

Adopted:               04/17/2000

Revised:                1/17/2022

Reviewed:             1/17/2022

School district funds in excess of current needs shall be invested in compliance with this policy.  The goals of the school district’s investment portfolio in order of priority are:

            •  To provide safety of the principle;

            •  To maintain the necessary liquidity to match expected liabilities; and

            •  To obtain a reasonable rate of return.

In making investments, the school district shall exercise the care, skill prudence and diligence under the circumstances than prevailing that a prudent person acting in a like capacity and familiar with such matters would use to meet the goals of the investment program.

School district funds are monies of the school district, including operating funds.  “Operating Funds” of the school district are funds which are reasonably expected to be used during a current budget year or within fifteen (15) months of receipt.  When investing operating funds, the investments must mature within three hundred and ninety-seven (397) days or less.  When investing funds other than operating funds, the investments must mature according to the need for the funds.

The Board authorizes the treasurer to invest funds in excess of current needs in the following investments:

            •  Interest bearing savings, money market, and checking accounts at the school district’s authorized depositories;

            •  Iowa Schools Joint Investment Trust Program (ISJIT);

            •  Obligations of the United States government, its agencies and instrumentalities; and

            •  Certificated of deposit and other evidences of deposit at federally insured Iowa depository institutions.

It shall be the responsibility of the treasurer to oversee the investment portfolio in compliance with this policy and the law.  It shall be the responsibility of the treasurer to bring a contract with an outside person to invest school district funds, to advise on investments, to direct investments, to act in a fiduciary capacity or to perform other services to the board for review and approval.  The treasurer shall also provide the board with information about and verification of the outside person’s fiduciary bond.  Contracts with outside persons shall include a clause requiring the outside person to notify the school district within thirty (30) days of any material weakness in internal structure or regulatory orders or sanctions against the outside person regarding the services being provided to the school district and to provide the documents necessary for the compensation of the outside persons shall not be based on the performance of the investment portfolio.

The treasurer shall be responsible for reporting to and reviewing with the board at its regular meetings the investment portfolio’s performance, transaction activity and current investments including the percent of the investment portfolio by type of investment and by issuer and maturities.  The report shall also include trend lines by month over the last year and year-to-year trend lines regarding the performance of the investment portfolio.  It shall also be the responsibility of the treasurer to obtain the information necessary to ensure that the investments and the outside persons doing business with the school district meet the requirements outlined in this policy.

It shall be the responsibility of the superintendent to deliver a copy of this policy to the school district’s depositories, auditor and outside persons doing business with the school district.

It shall also be the responsibility of the superintendent, in conjunction with the treasurer, to develop a system of investment practices and internal controls over the investment practices.  The investment practices shall be designed to prevent losses, to document the officers and employees responsibility for elements of the investment process and address the capability of the managemen

Legal Reference:  Iowa Code §§ 11.2, .6; 12.62; 22.1, .13; 28E.2; 257; 279.29; 283A; 285; 452.10; 453; 502.701; 633.123 (1993).
                                  1992 Iowa Acts.

Approved:             10/19/1992
Reviewed:             1/18/2021