Revenues of the Wapello Community School District shall be received by the board treasurer or their designee. Other persons receiving revenues on behalf of the school district shall promptly turn them over to the board treasurer or their designee.

 

Revenue, from whatever source, shall be accounted for and classified under the official accounting system of the school district. It shall be 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 shall not be used for private gain or political purposes.

 

Tuition fees received by the school district shall be deposited in the general fund. The tuition fees for kindergarten through twelfth grade during the regular academic school year shall be set by the board based upon the superintendent's recommendation in compliance with current law. Tuition fees for summer school, driver's education and adult education shall be 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. Educational materials fees received by the school district shall be deposited in the general fund. It shall be 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 shall be deposited in the general fund. It shall be 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 shall be 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 shall be 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.
• Items displaying the emblem, mascot, or logo of the district or that otherwise promote the identity of the District and its programs if sold on district property;
• Souvenirs and programs relating to events sponsored by or at the district if sold on district property; and
• Goods, products, or professional services which are produced, created, or sold incidental to the district’s teaching, research, and extension missions.

 

It shall be the responsibility of the superintendent to bring to the board's attention additional sources of revenue for the school district.

 

 

 

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

279.9-.12, .22; 301.1

 

 

 

Cross Reference:       701.1  Depository of Funds

                                   703     Budget

                                   805     Selling and Leasing

                                   905     Use of School District Facilities and Equipment

 

 

 

Approved:      7/18/95

Reviewed:      12/13/01; 12/12/07; 12/14/11; 4/10/19; 1/10/24

Revised:         12/13/01; 4/17/24

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 by 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 security 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, and 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 arrangements, 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 as follows: 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. Bis 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 and 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
  • 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 maintaining 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

 

 

 

Approved: 10/16/97

Reviewed: 12/13/01; 12/12/07; 12/14/11; 4/10/19; 1/10/24

Revised: 12/13/01; 5/9/16

Wapello Community 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 principal;
• 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 then 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 months of receipt. When investing operating funds, the investments must mature within three hundred and ninety-seven days or less. If, during the current budget year an amount of public funds will exceed operating funds by at least thirty-three percent, the amount of public funds that exceed operating funds by greater than thirty-three percent may be invested in certificates of deposit at federally insured depository institutions which mature within sixty-three months or less, in accordance with state and federal laws.  When investing funds other than operating funds, the investments 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,
• Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions.
• Repurchase agreements in which underlying collateral consists of investments in a government securities.  The school district must take delivery of the collateral either directly or through an authorized custodian.  Repurchase agreements do not include reverse repurchase agreements;
• Prime bankers' acceptances that mature within two hundred seventy days and that are eligible for purchase by a federal reserve bank.  At the time of purchase no more than ten percent of the investment portfolio can be in these investments and no more than five percent of the investment portfolio can be invested in the securities of a single issuer;
• Commercial paper or other short-term corporate debt that matures within two hundred seventy days and that is rated within the two highest classifications, as established by at least one of the standard rating services, with no more than five percent at the time of purchase placed in the second highest classification.  At the time of purchase no more than ten percent of the investment portfolio can be in these investments and no more than five percent of the investment portfolio can be invested in the securities of a single issuer; and,
• An open-end management investment company registered with the federal securities exchange commission and commonly referred to as a money market mutual fund.  The money market mutual fund will use only the investments individually authorized by law for school districts.

 

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 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 performance of the investment portion of the school district audit. 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 investment 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 management.

 

 

 

Legal Reference:  Iowa Code 11.2, .6; 12.62; 12B.10; 10A' 12C' 22/1. /14' 28#2; 257; 279.29;

283A; 285; 502.701; 633.123

 

 

 

Cross References:      206.4  Treasurer

                                   704     Revenue

 

 

 

Approved: 4/18/95

Reviewed: 152/13/01; 12/12/07; 12/14/11; 4/10/19; 1/10/24

Revised: 12/13/01

The Wapello Board of Directors believes gifts, grants, and bequests to the school district may be accepted when they will further the interests of the school district. The board shall have sole authority to determine whether the gift furthers the interests of the school district.

 

Gifts, grants, and bequests shall be approved by the board. Once it has been approved by the board, a board member or the superintendent may accept the gift on behalf of the school district.

 

Gifts, grants, and bequests once accepted on behalf of the school district shall become the property of the school district. Gifts, grants, and bequests shall be administered in accordance with terms, if any, agreed to by the board.

 

 

 

Legal Reference:          Iowa Code §§ 279.42; 565.6 (1993).

 

 

 

Cross Reference:        217     Gifts to Board of Directors

                                    402.4   Gifts to Employees

                                    508.1   Class or Student Group Gifts

 

 

 

Approved:      7/18/95

Reviewed:      12/13/01; 12/12/07; 12/14/11; 4/10/19; 1/10/24

 Revised:        12/13/01

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 superintendent’s secretary 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:       504     Student Activities

                                   701     Financial Accounting System

 

 

 

Approved:      7/18/95

Reviewed:      12/13/01; 12/12/07; 12/14/11; 4/10/19; 1/10/24

Revised:         12/13/01

Fundraising can foster a sense of community and pride in the school district through group efforts to accomplish a common goal.  The school board believes fundraising campaigns can further the interests of the district.  Care must be taken to help ensure fundraising efforts are done properly and safely to benefit the school community.  The school board is responsible for approving all district affiliated and student fundraising.  Any person or entity acting on behalf of the district and wishing to conduct a fundraising campaign for the benefit of the district shall begin the process by seeking prior approval from t6he board or its designee.  Any fundraising efforts conducted using the district’s resources, any, logos, symbols, or imagery will be conducted in accordance with all policies, regulations, and rules for fundraising within the district.

 

District Affiliated Fundraising

There are times when the school board may decide to engage in district-affiliated fundraising efforts to benefit the school district.  All district affiliated fundraising efforts will fulfill a public purpose and will not benefit only one single individual or family, except in unique circumstances pre-approved by the school board.  The use of district owned resources to conduct fundraising efforts will be in accordance with all applicable laws and regulations and other relevant district policies and procedures.

 

Money or items raised by any district affiliated fundraising campaign will be the property of the district only upon acceptance by the board and will be used only in accordance with the terms for which they were given, as agreed to by the board,

 

Student Fundraising

Students may raise funds for school-sponsored events with the permission of the school board.  The school board delegates to the Superintendent the authority to approve routine student fundraising as deemed appropriate.  Collection boxes for school fundraising must have prior approval from the school board or its designee before being placed on school property.  All funds generated from district-sponsored student fundraising will be placed in the district’s student activity fund.  The Superintendent will develop necessary regulations to ensure the safety and equity of student fundraising efforts.

 

Online Fundraising

The use of the district’s name, logos, symbols, or imagery for online fundraising will be subject to the approval of the Superintendent.  All online fundraising efforts will fulfill a public purpose, and will not benefit only one single individual or family except in unique circumstances pre-approved by the school board.  If approved, the requestor shall be responsible for preparing all materials and information related to the online fundraising campaign and keeping district administration apprised of the status of the campaign.

 

All items and money generated from online fundraising are subject to the same controls and regulations as other district property and shall be deposited or inventoried accordingly.  No money raised or items purchased shall be districted to individual employees.

 

 

Legal Reference:       Senior Class of Pekin High School v. Tharp, 154 N.W. 2d 874 (Iowa 1967). 

Iowa Code 279.8; 279.42; 565.6

 

 

Cross Reference:       508.1  Class or Student Group Gifts

                                504.5  Student Fundraising

                                704.4  Gifts—Grants—Bequests

                                904.2  Advertising and Promotion

 

 

Approved:  5/8/24

Reviewed:

Revised: