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What is the difference between a levy and a bond?
The easiest way to think about it is that Levies are for Learning and Bonds are for Buildings.
LEVIES = LEARNING Environment
(Library Books, Curriculum, Staffing, Building Maintenance and Needed Improvements, etc.)
BONDS = BUILDINGS - Major Construction
(New Buildings, Major Renovations, etc.)
Levy - a ballot measure asking voters to agree to a property tax to collect a set dollar amount for a specific number of years. They are used for operational costs and capital improvements. Local levies bridge the gap between state funding and the true costs of operating a school district. There are many different types of levies. Some examples include: General Fund, Building Reserve, Transportation, Tuition, Technology, etc.
Replacement Levy - a levy asking voters to replace an existing levy that is scheduled to expire.
Bond - allows a district to finance the cost of projects through the bond market. When placed before voters, the school district is asking for the authority to sell municipal bonds and then pay the principal and interest on those bonds using money collected from property taxes. Bond proceeds are used to purchase or construct new buildings, renovate and modernize existing buildings, add or upgrade infrastructure systems, and purchase additional equipment. Bonds are used to finance the projects because the payments to the investors are made over a period of 12-30 years thus spreading the costs of the projects over a long period of time which reduces the annual impact on property taxes.