281—98.69(76,273,298,298A,423E,423F) Capital projects fund. Capital projects funds are used to account for financial resources to acquire or construct major capital facilities and to account for revenues from the state sales and services tax for school infrastructure. Boards of directors of school districts are authorized to establish more than one capital projects fund as necessary.
	98.69(1) Sources of revenue in the capital projects fund. Sources of revenue in a capital projects fund include sale of general obligation bonds, grants and donations for capital facility projects, and transfers from other funds that authorized indebtedness for capital facility projects or that initiated a capital facility project or that received grants or other funding for capital projects, and tax receipts or revenue bonds issued for the state sales and services tax for school infrastructure. In the case of an area education agency, transfers from the general fund to a capital projects fund are limited to payments from proceeds accounted for in the general fund when payments are due on a capital project under a lease-purchase agreement pursuant to Iowa Code section 273.3(7).
	98.69(2) Appropriate uses of the capital projects fund.
	a. 	Appropriate expenditures in a capital projects fund, excluding state/local option sales and services tax for school infrastructure fund, include the following:
	(1)	Purchasing, constructing, furnishing, equipping, reconstructing, repairing, improving, or remodeling a schoolhouse or schoolhouses and additions thereto, gymnasium, stadium, field house, school bus garage, or teachers’ or superintendents’ home(s). Prior to approving the use of revenues for an athletic facility infrastructure project within the scope of the school district’s approved revenue purpose statement, the board of directors shall adopt a resolution setting forth the proposal for the athletic facility infrastructure project and hold an additional public hearing on the issue of construction of the athletic facility as stipulated in Iowa Code section 423F.3(7).
	(2)	Procuring a site, or purchasing land to add to a site already owned, or procuring and improving a site for an athletic field, or improving a site already owned for an athletic field.
	(3)	Transferring to the PPEL fund or debt service fund by board resolution any balance remaining in a capital projects fund after the capital project is completed and after return of any excess amount transferred into the capital projects fund from another fund. The voters in the district may authorize the district to transfer the remaining balance to the general fund instead of the PPEL fund or debt service fund pursuant to Iowa Code section 278.1(1)“e.”
	(4)	Improving buildings or sites for the purpose of accessing digital telecommunications over multiple channels, often referred to as broadband.
	(5)	School safety and security infrastructure listed in Iowa Code section 423F.3(6).
	b. 	Appropriate expenditures in the state/local option sales and services tax for the school infrastructure capital projects fund shall be expended in accordance with a valid revenue purpose statement if a valid revenue purpose statement exists; otherwise, appropriate expenditures include the following in order:
	(1)	Payment of principal and interest on revenue bonds issued pursuant to Iowa Code sections 423E.5 and 423F.4 for which the revenue has been pledged.
	(2)	Reduction of debt service levies.
	(3)	Reduction of regular and voter-approved PPEL levies.
	(4)	Reduction of the PERL levy.
	(5)	Reduction of any schoolhouse tax levy under Iowa Code section 278.1(1)“e.”
	(6)	Any authorized infrastructure purpose of the district pursuant to Iowa Code section 423F.3(6), which includes the following:
	1.	Payment or retirement of outstanding general obligation bonded indebtedness issued for school infrastructure purposes.
	2.	Payment or retirement of outstanding revenue bonds issued for school infrastructure purposes.
	3.	Purchasing, constructing, furnishing, equipping, reconstructing, repairing, improving, remodeling, or demolition of a schoolhouse or schoolhouses and additions thereto, gymnasium, stadium, field house, or school bus garage.
	4.	Procuring a site, or purchasing land to add to a site already owned, or procuring and improving a site for an athletic field, or improving a site already owned for an athletic field.
	5.	Expenditures listed in Iowa Code section 298.3.
	6.	Expenditures listed in Iowa Code section 300.2.
	(7)	Improving buildings or sites for the purpose of accessing digital telecommunications over multiple channels, often referred to as broadband.
	(8)	School safety and security infrastructure listed in Iowa Code section 423F.3(6).
	98.69(3) Inappropriate uses of the capital projects fund. Inappropriate expenditures in a capital projects fund include any expenditure not expressly authorized in the Iowa Code. Additionally, expenditures from the state sales and services tax for new construction or for payments for bonds issued for new construction in any district that has a certified enrollment of fewer than 250 pupils in the district or a certified enrollment of fewer than 100 pupils in the high school without a certificate of need issued, as described in Iowa Code chapter 423F, by the department of education. This restriction does not apply to payment of outstanding general obligation bonded indebtedness issued pursuant to Iowa Code section 296.1 before April 1, 2003. This restriction also does not apply to costs to repair school buildings; purchase of equipment, technology or transportation equipment authorized under Iowa Code section 298.3; or for construction necessary to comply with the federal Americans With Disabilities Act.
[ARC 7802C, IAB 4/17/24, effective 5/22/24]