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Board renews natural gas purchase through Iowa Local Government Risk Pool for 2025-26
Summary
The school board approved a renewal to procure natural gas through the Iowa Local Government Risk Pool for about $214,000, a purchase funded by the district's management levy to free general-fund dollars.
The Ottumwa Community School District board approved a renewal May 12 to purchase natural gas through the Iowa Local Government Risk Pool for the 2025-26 year, a transaction that district staff said lets the district use the management levy to pay the cost and thereby preserve general‑fund dollars.
"By doing it this way, we're allowed to use the management levy to fund it," John, staff member, told the board while explaining the purchase model. The arrangement requires the district to estimate expected usage and pay up-front; if actual usage is 10% below estimate the pool issues a credit, John said.
Why it matters: buying through the pool stabilizes budgeting for natural-gas costs across all district facilities and lets the district apply levy funding. Staff told the board that a combination of higher natural gas prices this year and two new facilities (Farney Elementary and the Ottumwa High School athletic complex) increased the projected cost for 2025-26 to about $214,000.
Staff said the pool provides an annual invoice based on projected consumption; if the district uses substantially less gas the pool will adjust the account and issue credits. John said in some years the district ends up paying less overall because actual usage was below the estimate.
Board action: following a motion and second, the board approved the renewal by voice vote; the chair announced "Motion passes." No further board action was requested.
