Cedar Rapids schools’ proposed $220M bond referendum would keep property taxes comparable

CORRECTION: The article original stated that Wilson and Roosevelt middle schools would be closed under the first phase of the plan. This is not accurate. The middle schools would close if a second bond issue is approved by voters in 2027.

CEDAR RAPIDS — A proposed $220 million bond referendum in the Cedar Rapids Community School District would raise property taxes if approved — but would keep rates assessed for district schools on par with those already levied by several other school districts in the region.

The Cedar Rapids school board is expected to approve a resolution Thursday ordering a referendum after receiving the number of signatures required to take the question to voters. About 6,300 signatures from eligible district voters need to be collected to get the referendum placed on the Nov. 7 ballot.

Signatures are verified by the school board secretary, who ultimately will make the determination if enough signatures from the district are valid. Signatures should not be counted if a street address is incomplete, a post office box is used or the signature clearly is from a fictional character.

The proposed bond would help fund a facility plan that ultimately would reduce the number of middle schools in the district from its existing six. This would create a stronger feeder system for students in K-12, ensuring students stay together with classmates as they move from elementary to middle to high school. School leaders have said they believe this would provide more equitable services to all students while reducing the district’s operational and maintenance costs.

If the bond is approved, the Cedar Rapids schools property tax rate would increase from $14.67 to $17.33 per $1,000 of taxable value. For a homeowner with a home assessed at $200,000, the property tax bill based on the taxable value of that home — about 54.7 percent of its assessed value — would be about $282.02 per year, or $23.50 a month.

The last school bond to be considered by Cedar Rapids district voters was in 2000 when a $46 million bond was approved to fund construction of Viola Gibson Elementary, 6101 Gibson Dr. NE.

Karla Hogan, chief financial officer for the Cedar Rapids Community School District, said that since then, the district largely has been relying on Secure an Advanced Vision for Education (SAVE) funding — an existing sales tax — to tackle projects. SAVE is a capital projects fund for the purchase and improvement of grounds, purchase, construction and remodeling of buildings, major equipment purchases — including technology — and community education programs. The expenditures from SAVE are approved by voters and funded by a sales tax to school districts based upon enrollment.

Recently, the district used SAVE to fund the construction of new elementary schools in Cedar Rapids. West Willow opened in August 2021, replacing Coolidge Elementary School. Maple Grove opened in August 2022, replacing Jackson Elementary School. And Trailside Elementary, under construction at 2630 B Ave. NE, will open next fall to replace Arthur and Garfield elementary schools.

“The district can only take on so many projects at a time. We’ve hit a period where we have so many building needs and projects that need to be funded,” Hogan said about the proposed $220 million bond referendum.

Like an individual’s credit score, school districts need bond ratings to show lenders the district has the ability to pay the loan, Hogan said. Bonds like the ones proposed for the Nov. 7 ballot are backed by property taxes.

Property tax rates not only levied by school districts, but also by cities, counties and other public entities.

Cedar Rapids schools has a “stable” A+ bond rating, a grade given to bonds that indicates their credit quality, Hogan said. The district’s bond rating is determined by Standard & Poor, which evaluates a bond issuer’s financial strength or its ability to pay a bond’s principal and interest.

The proposed facility plan also relies on voters renewing the Physical Plant and Equipment Levy, (PPEL) which expires June 30, 2025. A 10-year extension of PPEL was last approved by voters in the Cedar Rapids schools district in September 2014. The cost already is included in the property tax rate and would continue if approved.

To take a school bond referendum to voters, at least 25 percent of the number of registered voters in the district voting in the last election of school officials must sign a petition, according to Iowa Code. For this year, notice and language of the measure is due to the county auditor by noon Friday — 46 days before city and school elections.

If the referendum fails to reach the required 60 percent approval, the board would be precluded from going back to voters again for a year.

Under a new state law, the Linn County Auditor’s Office is required to individually notify every voter within the Cedar Rapids school district of the upcoming referendum vote between 10 and 20 days before an election, said Matt Warfield, deputy commissioner of elections for Linn County.

Since March 2020, the only Iowa school district to propose and get over a $100 million school bond referendum approved was Waukee. In September 2020, voters in the Waukee school district approved a $205 million bond referendum by 88 percent, according to data kept by the Iowa Association of School Boards. That was in a special election, which the new Iowa law doesn’t allow for school referendums anymore.

Christie VanWey, business manager for the Marion Independent School District, said most voters don’t want an increase in taxes. However, it also is important for schools to stay “competitive” with neighboring districts, said VanWey, echoing Cedar Rapids schools’ leaders thoughts on the need for upgraded buildings and amenities.

Voters in the Marion Independent School District passed a $31 million bond in March 2021, enabling the district to move forward on a facilities plan that includes building an elementary school, auditorium and outdoor activities complex at Marion High School and making repairs to other district buildings.

While that $31 million bond referendum was tax neutral — it did not raise or lower the tax rate for residents in the district because previous debt was paid off — VanWey said “that may not be the case the next time around.”

“We are working hard to maintain our goals in keeping the tax rate steady and providing the facilities promised in the original bond. If we continue to do that, it is our hope that when the next bond comes around, the taxpayers will see our commitment to maintaining fiscal responsibility while providing facilities the community can be proud of,” VanWey said.

The facilities plan

The $220 million bond referendum would fund the Cedar Rapids district’s purchase of land for and the construction of a 1,200-student middle school. School officials have not yet disclosed possible locations for this school, although it likely will be on the northeast side.

It also would fund new turf fields and career and technical education classroom additions at Kennedy, Jefferson and Washington high schools.

Kennedy High’s cafeteria and kitchen and Metro High School’s gymnasium would be updated under this plan.

Franklin Middle School would be renovated and turned into an 800-student school for seventh- and eighth-graders. Sixth-graders in the Franklin school boundary would attend McKinley, which would be converted into a school for 400 sixth-graders.

Harding Middle School would be closed under the plan.

A second $225 million bond referendum — proposed to be taken to voters in 2029 — would address the remaining middle schools.

Under this phase of the plan, Wilson and Roosevelt middle schools would be closed. The idea is that developers could repurpose these buildings into some other use.

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