FAQ

District

Q: WHAT IS THE DIFFERENCE BETWEEN A BOND AND A LEVY?

A: An easy way to remember the difference is “Bonds=Buildings” and “Levies=Learning.” School bonds provide funds for large long-term capital projects such as modernization of buildings, new school construction or acquisition of property. Bond funds are generally collected over a 15 to 20 year period.

Levies bridge the gap between state and federal funding and the actual cost of operating a school district. Levies support basic educational programs and services and represent approximately 11 percent of our annual operating expenditures. In Parma, levies support student learning, health and safety, athletics, activities, instructional support, technology, transportation, operations, and maintenance.

Q: HOW DOES THE $498 PER $100,000 OF TAXABLE MARKET VALUE THAT IS CURRENTLY COLLECTED BREAK DOWN INTO ACTUAL UTILIZATION?

A: The total current levy rate of .004982828 levied by the Parma School District, which equals the $498 per $100,000 of taxable market value, is the combination of the district’s bonds and levies. The following shows the components currently collected annually by the Parma School District:

· $233 for current debt payments to pay off the 2004 and 2009 construction bonds along with payments for the recently approved 2018 bond. The 2004 bond will be paid off in 2020 and the 2009 bond is paid off in 2025.

· $65 for the Plant Facilities levy to support the maintenance and upkeep of current facilities and grounds.

· $90 for the Supplemental levy to support instruction, curriculum, and activities.

· $110 for the COSSA and Tort levies. The COSSA levy supports our five district cooperative for Special Education services, Career Technical programs, and Gifted – Talented services. The Tort levy is a liability insurance levy that the county determines. These two along with the Plant levy will normally show up as "other" on your county tax form.

Q: WHAT WILL THE DISTRICT TAX RATE BE IF THE LEVY PASSES?

· A: It has been a top priority of the Parma School District to not increase the levy rate, and if at all possible to lower the overall levy rate. Due to total market value growth and the district’s ability over the last few years to build up the bond reserve account the overall levy rate will actually decrease by approximately 6%. With the passage of this levy the $498 collected per $100,000 will decrease to $473 per $100,000. The property tax rate will drop from .00498 to approximately .00473.

Q: THE LEVY RESOLUTION/BALLOT STATES THAT “THE ESTIMATED ANNUAL COST TO THE TAXPAYER ON THE PROPOSED LEVY IS A TAX OF $106 PER $100,000 OF TAXABLE ASSESSED VALUE BASED ON CURRENT CONDITIONS.” DOESN’T THIS MEAN TAXES WILL INCREASE?

· A: The $106 per $100,000 of taxable value that will be collected is just a part of the total $473 collected to go towards district needs. So rather than being an additional amount it is folded in with current collections.