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Pleasant Valley CSD board amends 2024–25 certified budget, discusses lower property tax levy
Summary
The Pleasant Valley Community School District board approved an amended certified 2024–25 budget that raises total maximum expenditures from $102,523,102 to $150,396,734 and held discussion about lowering the district's property tax levy after reaching the statutory cash‑reserve limit.
The Pleasant Valley Community School District board approved an amended certified budget for fiscal 2024–25 that increases the district's maximum allowable expenditures from $102,523,102 to $150,396,734, district staff said during a public hearing and vote.
Mr. Klingensmith, who presented the amendment, told the board: “As a reminder, per Iowa law, school districts are not allowed to overspend their certified budget, and they're not allowed to over spend it in any of the 4 functional areas.” He said the amendment reflects additional miscellaneous income (for example, grants identified after the original certified budget) and the district's regular practice of amending budgets to show the maximum it could legally spend so fund balances are reflected at zero for planning purposes.
After a public hearing, Director Kunkle moved to amend the 2024–25 certified budget as presented; Director Kanwisher seconded the motion. A roll‑call vote was taken and the motion passed unanimously.
Board discussion then turned to next year's property tax levy timeline and a staff recommendation to reduce the district's overall levy rate because the district has reached the statutory limit for levying a cash reserve. Klingensmith said the district's general‑fund ending balance at June 30, 2024 exceeded the allowable 20% threshold by $185,032; when a district's ending balance exceeds the statutory threshold it cannot levy for the general‑fund cash reserve for the next year.
Klingensmith and district financial advisers said the only remaining levy‑rate lever is the management fund, which covers items such as early retirement benefits, unemployment, property and liability insurance and workers' compensation. The district's insurance broker, Tate Featherstone of Arthur J. Gallagher & Company, told the board he expects further insurance cost increases next year. District staff said keeping the management‑fund levy where it is — and reducing the overall levy by roughly $1.25 to $1.30 per $1,000 of taxable valuation depending on the state's supplemental state aid decision — should allow the district to cover likely insurance increases and planned retirements while maintaining prudent fund balances.
Board members also discussed options such as buying down insurance deductibles for large facilities and monitoring pending legislation that could change allowed uses of the management fund.
Votes at a glance
- Motion to hold an exempt session for negotiations under Section 20.173, Code of Iowa (motion by Director Wagle; second by Director Ayers): approved by roll call. - Motion to approve the meeting agenda as presented (mover: Director Ayers; second: Director Kunkle): approved (voice vote). - Motion to approve the consent agenda (mover: Director Ayers; second: Director Kunkle): approved (voice vote). - Warrants/claims and fund approvals (motions listed in board packet; all approved by voice vote): general fund warrants $265,061.14; nutrition fund warrants $107,870.29; elementary/junior high activity fund warrants $839.19; high school activity fund warrants $45,496.18; management fund warrants $18,042.00; capital projects fund warrants $3,417.39; physical plant and equipment levy (PEBL) warrants $97,973.44; student construction fund warrants $37.95; internal service fund warrants $166,449.11; trust fund warrants $1,787.31.
Next steps and timeline
Staff reviewed the 2025–26 aid, levy and certified budget timeline. The district will set proposed tax and adoption public‑hearing dates at the next board meeting; state and county deadlines require the district to report a proposed levy by March 5 so Scott County can mail proposed tax notices around March 20. Staff said a final decision on the levy rate relies in part on the state's supplemental state aid percentage, which had not been finalized at the meeting.
The certified budget amendment motion and the fund warrant approvals were recorded in the meeting minutes; the district will submit the amended certified budget to the county by the statutory deadline.
