800.00 Fiscal Management-Guiding Principles

The Ankeny Board of Education recognizes its responsibility to govern District finances. Fiscal management practices should be implemented in ways that promote and sustain the integrity of the District and community earning the trust of citizens. Crucial here is the avoidance of conflicts of interest, personal agendas, and single issue perspectives. While there is no one source for what works best in school business, successful fiscal management practices will embody, to the extent practical, the following fundamental belief statements:

  • Public Involvement - The District’s fiscal management system will offer and encourage stakeholder opportunities for involvement in creating, implementing, and monitoring budgets.
  • Transparency – The District’s financial reporting system will be developed to encourage openness and accountability through clear and easily understood information by everyone.
  • Balanced Budget – The District will annually balance reoccurring spending authority with annual expenditures.
  • Taxation – The Board recognizes in Iowa school finance the local board of education has limited authority to set establish final tax rates since this is controlled by the school aid state formula. Whenever possible the Board discretionary levy amounts will be reduced to the extent possible to meet the financial measurements policy.
  • Efficiency – The District’s fiscal management system will maximize available resources in ways that most directly and effectively meet with the public purpose of education producing the effect intended or desired as defined in the District’s strategic plan.
  • SAVE (Secure and Advanced Vision for Education (State 1-Cent Sales Tax) - To the extent possible, the District will first utilize the state 1-cent sales tax revenue to construct or renovate school facilities. If SAVE is not required to fund facilities needs, it will be used any other legal purpose set forth in the community approved revenue purpose statement including but not limited to: purchasing new school building sites, repairs to existing buildings, technology and general equipment systems in excess of $500, and to reduce the tax levy required to meet outstanding general obligation bond debt.
  • Physical Plant and Equipment Levy (PPEL) - Responsible stewardship of community facilities requires that both the Board of Education and the voter approved portions of the PPEL levy should be maintained and maximized each year for the highest priority of repair and maintenance to current buildings and sites. Pledging of current or anticipated PPEL funding to be used for new construction projects is discouraged. 
  • Long-term Debt - If resources are required for construction of facilities in excess of the revenues available from the SAVE fund, these requirements will be taken to the community in the form of a general obligation bond referendum.
  • Short-term Debt – Cash flow for the payment of current obligations is especially important during the summer when state revenue or property taxes are not available to the District. Sufficient cash reserve should be levied to meet the fiscal performance policy targets and minimize any short-term borrowing costs.
  • Financial Projections - The District's fiscal management practices include 5-year projections of estimated revenue and expenditures based on 2% valuation growth, generally with conservative expectations. Additionally, to the extent possible, longer-range planning of facilities projects is expected.

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Adopted:

Reviewed:
August 18, 2003
February 7, 2011

November 18, 2013
February 18, 2019
 

Revised:
February 7, 2011
November 18, 2013

February 18, 2019