At the June 29 Board of Education meeting, Treasurer Paul Pestello presented the five-year-forecast. He noted the expected reduction in state foundation aid and real estate tax revenue and anticipated increase in COVID-19 related educational and operational expenditures. The board discussed the possibility of a combined permanent improvement and operating levy in 2021.
In 2015, voters passed a combined operating levy and bond issue.
Chagrin Valley Times article – Kenston board considers combined levy in 2021
School Finance 101
Operating Levy
Operating levies are property tax issues that are placed on the ballot (in terms of millage rates) for a vote by the electorate. Operating levies pay for the day-to-day expenditures of a school district, which include salaries, benefits, utilities, books, supplies and equipment.
Permanent Improvement Levy
A permanent improvement levy is used for capital improvement projects, maintenance and repairs of school property and certain equipment items that are designed to last five years or more.
Bond Issue
A property tax levy used to provide a school district with local revenue for construction purposes. The county auditor determines the rate of a bond levy needed each year to service the principal and interest owed on the amount of bonded debt approved by voters when they approved the bond levy. Bond levies remain in place until the debt (principal and interest) is fully paid, typically 20 or more years.