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Dollars & Sense

April 22, 2014 Capital Bond information

What’s in the bond? What will it cost

  • A stable tax rate
  • Existing debt phases out and is replaced with new bond payments
  • Existing bond debt paid off in 2022, making way for next 8-year capital ballot measure
Strategic timing of when bonds are issued stabilizes local school tax rate 2013 Actual 2014
Preliminary
2015 Estimated< 2016 Estimated2017 Estimated 2018 Estimated 2019 Estimated 2020 Estimated 2021
Estimated
2022 Estimated
Educational Programs & Operations Levy $3.61 $3.25 $3.54 $3.51 $3.68 $3.44 $2.95 $2.95 $2.95 $2.95
2010 Capital Levy
($8M X 6 Years)
$0.67 $0.61 $0.59 $0.57
2018 Capital Levy
($12M X 6 years)
$0.78 $0.76 $0.74 $0.72
Existing bond debt expiring in 2023 $2.27 $2.09 $1.77 $1.79 $1.85 $1.76 $1.78 $1.79 $1.72 $1.02
2014 bonds ($259.4M) $0.65 $0.68 $1.02 $1.35 $1.04 $1.05 $1.14 $1.86
2022 New bonds
($320-350M)
Assessment would begin in 2023
Total district rate

$6.55

$5.95

$6.55

$6.55

$6.55

$6.55

$6.55

$6.55

$6.55

$6.55

 

Stable tax rate for local schools

 

What does this chart represent?

The chart depicts local school tax rate history and a projection of  local school tax rate through 2022. The amount at the bottom of each column
is the TOTAL local school tax rate paid historically by local property owners or projected as a local school tax rate in the future – the total for all bonds and levies of the past and projected for the future.

The past and present bonds, levies and capital levies listed in the left hand column represent the ways local residents support local public schools.

The chart shows how the district staggers school ballot issues in a way that maintains a stable tax rate for property owners – thus minimizing spikes and dips in the levy rate property owners pay to support local school educational programs and construction.

Why is there a dip in the tax rate for 2014?

Work to plan the February 2014 bond was done before 2014 and before the county assessor released tax rate information for 2014. The economy was improving, and as a result, property values increased by a surprising 10 percent – an improvement rate that was a welcome surprise – and that caused a drop in the local school tax rate for 2014. In general, when property values to up, the local school property tax rate goes down, and that is what happened in 2014.

If the bond passes on April 22, the projected local school tax rate is $6.55 in 2015, which is when the district would begin collecting funds for the bond projects. That is the same local school rate property owners paid in 2013. The long-term projection for the local school tax rate also remains at $6.55.  That $6.55 stable rate is based upon a modest increase in property values over time. Under those projected circumstances, the $6.55 rate would remain in place through the year 2022 and through bonds and levies and capital levies that are possible between now and then.

If property values do increase more rapidly over time, as they did in 2014, that would lower the rate for local school support -- as happened in 2014.

The Educational Service District has created a video that helps clarify how local school tax rates vary when property values go up or down. It is a simple explanation of a complex topic. You can view it below.
 

Learn more about local school property taxes

Property taxes 101

Learn how your property taxes are calculated and how they are affected as population fluctuates and if bonds and levies are approved.


Bonds and levies - What's the difference?

Get the scoop on the differences between bonds and levies and what they can and can't be used for by watching this four-minute video by NW Educational Service District 189.