Hello Everyone, I wanted to make you aware of our Voted PPEL that will come to vote on March 3rd.

A top priority for our Board of Directors for the East Union Community Schools is to continue to update our buses and support vehicles as well as upgrading our facilities. After months of discussion, at the December 16th meeting the Board of Directors passed a resolution calling for a voter approved PPEL of $1.34 to be used to update the East Union Community School District transportation fleet and upgrade facilities. This allows our District to bring the question of updating our transportation fleet and upgrading facilities to our voters on March 3, 2020. 

It is essential that each of you understands our purpose and the benefits to our students and district. As you are the voice of East Union! If our community has questions it's YOU they will come to with questions. I am open to answering any of your questions at any time. I have included some talking points below for your information. Again, please don't hesitate to let me know if you have any questions.

What is PPEL? The Physical Plant and Equipment Levy (PPEL), pronounced “pepple” in school jargon, is one of the most important sources of revenue for public school systems. The Physical Plant and Equipment Levy may annually be certified by our Board of Directors in an amount of 33¢ per thousand dollars of assessed valuation.  District voters may authorize an additional PPEL know as a voted PPEL for a period not to exceed 10-years.  The voted PPEL cannot exceed $1.34. 

At this time East Union does not have voted PPEL, the District only has an approved regular PPEL of 33¢.  This 33¢ generates $52,183 in revenue for our district. An additional $1.34 voter approved, would generate $211,895 extra for the district. 

Why? Without the PPEL funds, many things that keep the District running need to be paid for out of the District’s general fund, which also covers teacher salaries and programming for students. Those are the things that are essential to educating students! If those items aren’t funded with PPEL, then scarce general fund dollars have to cover those expenses. Today, General Fund dollars are currently dedicated to instruction – supporting classrooms with teachers, textbooks, heat and lighting, and providing support staff to meet students needs.

Currently buses range in age from 2 years old to 20 years old. The current plan for updating busses and vehicles using PPEL funds is the addition of buses and support vehicles when possible. Our newest bus bought this year was $87,000 which is significantly more than our current PPEL fund provides. These funds then must come from other sources. Current ages of 12 buses; new, 2, 5, 8, 11, 12, 15, 17, 20 years old. As you will note the 2012 model if replaced even every-other-year would be scheduled to be replaced in 2032 and be even older by then. 

Administration and the school board would like to accelerate the purchase a new bus each year over the next several years, allowing us to update the fleet so that buses are used on routes for 7 years and stay in the fleet for 12 years. Support vehicles, which now range in age from 2 years old to 18 years old, would also be purchased more often and kept for 6 years. The newest bus purchased this fall is the start of this new rotation. 

What can the money be used for? The PPEL Funds are categorical funds that can only be used for specific purposes as it relates to building and grounds upkeep and repairs, new construction, technology (our 1:1 program for computers in every student’s hands), and equipment such as vehicles, maintenance equipment, furniture, energy conservation, and even large musical instruments for the band. The money cannot be used to pay teacher salaries, to fund student programs, or pay for utilities.

Future PPEL revenue will be used to fund long-term capital improvements in the district, along with a continuation of its current uses to assist in educating students through the purchase of transportation equipment, repairs, and improving and maintaining the building and grounds throughout the district.

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Will this raise my taxes? The answer to this question at this time is NO.  At this time, we do not anticipate an increase in our school property taxes.  Currently our overall school levy rate is $17.00 per thousand. Our Board of Directors has been diligent in their responsibility in managing our district budget and living within our means. A great example of this can be found in the boards recent completion of our boards refinancing of our General Obligation Bonds in the amount of $2,562,000 (New refinancing bond principle). Working through the refinancing was a great thing for the school and communities. The board was able to lock in a rate of 1.93% until the bonds mature date. This is a significantly better rate than the 4.0% - 4.75%. By refinancing the bonds, the board is able to save the taxpayers $354,315.91. Including the additional savings, we have made from surplus levies the total savings from the board action is $435,540.91. A big thank you to the East Union Board of Education!! 

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Why Now? There is never a "best" time to ask for additional funding, but we believe this is the "right" time. 

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1. We need to update our buses more quickly. 

2. By 2 years of debt service pre-pay levy and the renfinancing of our General Obligation bonds the board action has saved the district $435,540.91 

3. Looking to 2020-2021, you can expect to see an estimated tax rate of $16.90, lowest in years...and this is with your March 3rd approval of the additional $1.34 PPEL

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Voted PPEL Details

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• Maximum 10-year duration.

• A simple majority vote (50% plus 1) is required for passage.

• East Union is one of the 18% of school districts in the 2019-20 school year that does not have a voter PPEL in place. 

• East Union district is proposing ng Voter PPEL $1.34 tax rate. 

• The funds generated support facilities construction and maintenance, buses, leases, lease-purchase or purchase of technology (laptops, non-instructional software, computer hardware, etc.) and equipment (such as musical instruments and science lab equipment or school security/safety equipment).

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Where?  

VOTE

Tuesday, March 3rd

Afton Methodist Church 
Arispe Methodist Church
Lorimor City Hall