School districts may use a board-levied Physical Plant and Equipment Levy (PPEL) and Local Option Sales Tax (LOST) funds for infrastructure needs. The board-levied PPEL (limited to 33 cents per $1,000 of assessed valuation) generates about $134,000 per year. We generate most of our current LOST revenue from Howard county, but some also is generated by Winneshiek and Chickasaw counties. The LOST funds are partly committed to paying for previous projects, such as the NICC Center here in Cresco.
LOST revenues are being used to repay the bonds sold to fund most of the cost of the Early Childhood Development Center, the NICC Community College Cresco Center, and the major projects that are discussed above.
The only way a district can fund construction projects is through PPEL revenue, bonding against future LOST revenue, or the sale of bonds from a voter-approved bond issue. With the passage of the one-cent sales tax levy statewide, bond issues requesting property taxes for construction will only be needed when the cost of the project exceeds available projected LOST revenue.