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Black Hawk County, Iowa, Schools Increase Local Option Sales Tax Revenues

Posted on: Thursday, 1 December 2005, 18:00 CST

By Andrew Wind, Waterloo-Cedar Falls Courier, Iowa

Nov. 30--WATERLOO --- Black Hawk County schools saw another year of increasing local option sales tax revenues.

Eleven school districts with at least some of their students living in the county received a total of $15.81 million from the 1 percent tax during fiscal year 2004-05, which ended June 30. The money is used for school infrastructure, mostly to fund building and renovation projects.

Earlier this month, the districts received $1.4 million in payments as the state reconciled its monthly estimates of $14.4 million with the fiscal year's actual tax revenues. Since the tax was approved by county voters 5 1/2 years ago, revenues have fallen short of projections only during fiscal year 2000.

"I would say they were 3 percent stronger than we estimated in Black Hawk County," said Joel Gabrielson, the Iowa Department of Revenue's program manager for local option taxes.

Money is doled out monthly to each district based on its enrollment in the county. Those payments equal 95 percent of estimated revenues. So, the reconciliation payments include the remaining 5 percent plus the 3 percent generated above the estimate.

With the lion's share of student enrollment, Cedar Falls and Waterloo community schools received most of the reconciliation payment. That came to $333,548 for Cedar Falls and $880,458 for Waterloo. Overall for the year, Cedar Falls received about $3.75 million and Waterloo received about $9.9 million.

"It's a positive thing," said Dan Smith, Cedar Falls superintendent. "I would say it reflects well on the economy in Black Hawk County because it's a reflection of the sales tax received."

"It points to a strong economy and sales here in Black Hawk County," said Jim Langstraat, Waterloo's executive director of financial services.

Smith said the additional money would have no immediate impact on district construction projects.

"It's a very positive thing that the revenues are increasing, but it doesn't change our plans in the short run." He noted, though, that construction costs have been growing and projects continue to get more expensive.

Gabrielson said reconciliation payments for other counties in the state with the sales tax for schools were closer to the 5 percent estimate.

"Black Hawk is definitely stronger than the overall state," he said.

"There are others that are as strong as them, but not many."

The tax lasts for 10 years, until 2009, but a referendum to continue it after that is coming before county voters Feb. 7. If the tax is continued, county collections beginning in 2009 would be added to a pool of revenues distributed to districts statewide that have the local option. The change would mean a significant revenue reduction for the districts.

State officials estimate $15,554,948 in countywide school sales tax collections for the current fiscal year, which will end June 30. That is $1.15 million more than the estimate for fiscal year 2005, but $255,160 less than was actually collected.

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Copyright (c) 2005, Waterloo-Cedar Falls Courier, Iowa

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Source: Waterloo Courier

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