Board hears financing plan for FMP 2.2; SAVE revenue borrowing could cover $119 million estimate

The Iowa City Community School District Board of Directors on May 13 received a presentation on financing options for Facilities Master Plan (FMP) 2.2, including how much the district could borrow against future SAVE (Secure and Advanced Vision for Education) sales-tax revenues.

District staff presented an estimated remaining need of $119,000,000 for FMP 2.2 and explained three capital funding buckets: SAVE revenue bonds, PPEL (the physical plant and equipment levy), and general obligation bonds that require a 60% public vote. "SAVE is Secure and Advanced Vision for Education, Statewide Sales Tax," the district presenter said. "And it's authorized through 02/1950." The presenter added that borrowing against future SAVE receipts is the primary funding strategy discussed for the projects on the FMP 2.2 list.

Why it matters: the board must weigh timing, interest-rate risk and tax-law compliance when choosing how to structure debt. Staff said existing SAVE revenue bonds carry…