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Bond & Levy FAQ

Bonds & Levies FAQ

A free, public education is a fundamental right guaranteed by law to all children in the United States. Washington provides funding for 'basic education,' but many programs, services, and school buildings rely on local measures approved by voters to bridge the funding gap. In the Enumclaw School District, as in all Washington school districts, these come in two main forms: bonds and levies.

When a school district needs a large-scale, long-term investment in facilities such as a new building or significant renovations, or technology improvements, this is considered a major capital project. Capital projects can be funded with a bond or a levy, depending on the size of the project(s).

Bonds

Bonds are the primary method used by Washington school districts to finance major capital projects because funding is generated upfront, and repayment is spread over time. Districts sell bonds to investors and repay them over 10 to 40 years. Total bonds cannot exceed 5% of the assessed value of taxable properties.

One of two types of Bonds school districts can seek to fund:

  • Voter approved with a 60% supermajority yes vote, and must also meet the voter turnout requirement
  • New revenue created: repaid with property taxes based on assessed value
  • 40-year maximum term; must match useful life of asset

  • May only be submitted to voters twice in a calendar year

One of two types of Bonds school districts can seek to fund:

  • Board approved
  • Repaid with existing district revenue
  • Can't be used for new construction
  • A public hearing is required if more than $250,000

  • Bonds are the primary method used by Washington school districts to finance major capital projects because funding is generated upfront, and repayment is spread over time. Districts sell bonds to investors and repay them over 10 to 40 years. Total bonds cannot exceed 5% of the assessed value of taxable properties.

  • One of two types of Bonds school districts can seek to fund:

    • Voter approved with a 60% supermajority yes vote, and must also meet the voter turnout requirement
    • New revenue created: repaid with property taxes based on assessed value
    • 40-year maximum term; must match useful life of asset

    • May only be submitted to voters twice in a calendar year

  • One of two types of Bonds school districts can seek to fund:

    • Board approved
    • Repaid with existing district revenue
    • Can't be used for new construction
    • A public hearing is required if more than $250,000

Levies

Levies are short-term voter-approved local property taxes. As district revenue boosters, levies do not accumulate interest. As more homes and businesses are built to share the revenue increase, the property tax rate collected decreases. Typically lasting one to six years, levies require a simple majority, 50% + 1 vote, to pass.

One of three types of levies school districts can ask voters to approve:

  • One to six-year collection cycle
  • To construct, modernize, or remodel school facilities, including technology improvements
  • Multiple capital projects levies may be authorized for the same period
  • If a capital projects levy fails, it may be resubmitted to voters only once in the same 12-month period

One of three types of levies school districts may ask voters to approve:

  • Four-year collection cycle
  • Bridges the gap between what the state provides based on the Prototypical Funding Model and the actual cost of running schools
  • To support programs, staff, and services that the state does not fully fund under 'basic education'
  • Revenue cap is based on the assessed value of taxable properties in the District or the maximum pupil limit from the state
  • Formerly called a Maintenance & Operations Levy

One of three types of levies school district may ask voters to approve:

  • Two-year collection cycle
  • Funds buses or major repairs to buses

  • Levies are short-term voter-approved local property taxes. As district revenue boosters, levies do not accumulate interest. As more homes and businesses are built to share the revenue increase, the property tax rate collected decreases. Typically lasting one to six years, levies require a simple majority, 50% + 1 vote, to pass.

  • One of three types of levies school districts can ask voters to approve:

    • One to six-year collection cycle
    • To construct, modernize, or remodel school facilities, including technology improvements
    • Multiple capital projects levies may be authorized for the same period
    • If a capital projects levy fails, it may be resubmitted to voters only once in the same 12-month period

  • One of three types of levies school districts may ask voters to approve:

    • Four-year collection cycle
    • Bridges the gap between what the state provides based on the Prototypical Funding Model and the actual cost of running schools
    • To support programs, staff, and services that the state does not fully fund under 'basic education'
    • Revenue cap is based on the assessed value of taxable properties in the District or the maximum pupil limit from the state
    • Formerly called a Maintenance & Operations Levy

  • One of three types of levies school district may ask voters to approve:

    • Two-year collection cycle
    • Funds buses or major repairs to buses