Davenport board approves technology and curriculum purchases; finance director flags $1.7 million IRS arbitrage payment

The Davenport Community School District board approved several vendor contracts and purchases and received a finance briefing that included a projected arbitrage payment to the IRS.

During the meeting the board approved a three-year Google Workspace for Education renewal for $72,060 and a purchase of interactive displays for the new Sudlow building for $242,680. The board also approved curriculum resources for U.S. History and Government from SABAS for $198,525.50. Director Hayes moved the workspace and curriculum motions; staff identified the interactive displays purchase and answered questions about lead times and how the displays differ from whiteboards.

A motion to approve a MidAmerican Energy proposal to relocate a gas regulator at Frank L. Smart Middle School drew the strongest debate. Directors and staff discussed whether MidAmerican, which will continue to own and operate the utility equipment, should share relocation costs and whether the timing of the work — originally scheduled by the utility for 2027 — could have been better communicated. Staff noted that because the district now owns the land where the regulator sits, the district bears the responsibility for the relocation and that the regulator’s current location would interfere with planned athletic fields and drop-off areas. Despite objections and questions about fairness to the district, the board approved the relocation by voice vote.

Finance director Kevin reviewed May financials and said the district’s general fund showed “a deficit of just over $9,000,000” for the period but an ending balance around $41.8 million. He explained arbitrage rules for tax-exempt bond proceeds and said an actuary’s calculation indicates the district may have to return up to $1.7 million of interest income to the IRS because idle bond proceeds earned higher returns than the bonds’ tax-exempt rates. Kevin said the district will plan for the payment and that the obligation is expected to be settled within a multi-year timeframe rather than immediately.

The board also renewed a Teach to Heal consulting contract for up to $56,000 for the coming year; staff described the program as trauma-responsive professional learning plus on-site coaching to help educators support students dealing with chronic stress. Board members asked whether measurable outcomes are being tracked; staff said participating buildings align the work with school improvement plans and monitor implementation locally.

All formal approvals reported in the meeting were carried by voice vote; no roll-call tallies with named votes were recorded in the transcript.