Lake Washington School District 2014 Levy and Bond Issues (Part 1)

This post addresses the upcoming Bond and Levy measures for Lake Washington School District for February, 2014.

What is a Levy?                     A “Levy” is a pay-as-you-go-model; a certain amount of money is collected each year for a limited number of years. 1

What is a Bond?  A “Bond” resembles a mortgage; a bond is sold with a promise to pay back the money to the bond buyer with interest.  The payments are made with the portion of the property tax devoted to bond measures.  Bonds are up to 20-years in maturity dates.  Bonds are sold as needed to build schools; so not all bonds are sold at once. 1

Debt Numbers  The debt number includes past bonds and levies that have not yet paid off.  The total INCREASE if all three measures are approved would be $0.81 (81 cents) per thousand dollars of assessed value in 2014; with slight changes for 2015-2018 depending on tax assessments and bonds that pay off. 1

The three measures below will appear on the ballot for the February 11, 2014 election:

Levy #1:                  Educational Programs & Operations Levy    The EP&O levy funding makes up about 23 percent of the district’s general fund revenues. It provides funding for basic items such as textbooks, insurance, utilities and maintenance; teacher planning, preparation and training; and athletics and activities. 2

Proposed cost:  $1.85 per thousand dollars of assessed value on each home in annual property taxes. Currently the cost is $1.78 per thousand dollars of assessed value.  (Increase of $0.07)

Among the items it helps pay for are:

·       Additional staff beyond those funded by the state

·       Teacher planning & preparation time

·       Instructional materials and textbooks

·       Safety & security, transportation, facility maintenance    

·       Programs to meet student instructional needs, such as Special Education, English Language         Learners, and safety net

·       Extracurricular activities & athletics3

Levy #2:                  Capital Projects Levy          Replaces an expiring levy to fund both facility and technology projects.

Proposed Cost:  $0.91 cents per thousand dollars of assessed value.  Currently the cost is $0.70 per thousand dollars of assessed value.  (Increase of $0.21)

This measure would raise ($127,200,000):

$21.2 million for building systems replacement & improvements, such as new roofs

$4.8 million for site improvements, including athletic field and playground upgrades

$9.3 million for school and program building improvements

$6.3 million to for code, compliance, health and safety projects

$20.7 million for technology infrastructure and support

$28.5 million for technology equipment, including replacement of student computers on a four-year lifecycle

$9.3 million for instructional software & support systems

$8.8 million for business system & technology operations software and support

$18.3 million for technology training and professional development2

Bond Measure                        $755 million to build new schools needed to accommodate growth and to modernize existing schools. The new schools are needed based on the district’s projections of enrollment growth of 4,200 students over the next four years. 2

Proposed Cost:                      $1.97       per thousand dollars of assessed value.  Currently the cost is $1.44 per thousand dollars of assessed value.  (Increase of $0.53)

Here is a chart of the estimated cost for the four years covered by the two levies – 2015-2018. Remember that the exact amount per thousand may vary as future assessed values change.

	EP&O	CPF Levy	Debt/6-yr levy	Total
Current - 2014	1.78	0.70	1.44	3.92
2015	1.85	0.91	1.97	4.73
2016	1.88	0.91	1.97	4.76
2017	1.90	0.91	1.97	4.78
2018	1.92	0.91	1.97	4.80

The debt number includes past bonds that were sold as authorized by previous bond measures and the six-year capital projects levy passed in 2011. As old bonds mature and are paid off and as the six-year levy is paid off, that number may vary; also depending on when in the next eight years we sell bonds. Our business office plans these sales to ensure that the debt cost each year stays the same as much as possible.1

Over the next eight years, the bond will enable the district to build new schools and space for students:

Three new elementary schools

One middle school

Additions for Lake Washington and Eastlake High Schools

A STEM-focused high school on the west side of the district and 

An international-focused high school on the east side of the district.

The funds for modernization would replace three schools in Kirkland (Juanita High School, Kamiakin Middle School, and Kirk Elementary School), two in Redmond (Evergreen Middle School and Rockwell Elementary School) and Mead Elementary School in Sammamish. 2

              

The overall tax rate with the replacement levies and the new bond measure would be $4.73 per $1000 of assessed value.  The increase for the average valued home in Lake Washington School District would be $365 per year, or $30 per month.  Lake Washington School District uses an average home assessed value of $450,000.   Again, the total INCREASE if all three measures were to pass would be $0.81/thousand for 2014. 

*I calculated my tax increase based on assessment values stated on my current Official Property Value Notice, dated September 15, 2013 of $357,000. (Assessment valuation is not the same as appraised value of a home.)  My annual King County Taxes are $3683.75 for tax year 2013.  If all three measures were approved, my taxes would increase approximately $289 for 2015 through 2018 tax years.*

1       Information provided by Kathryn M. Reith, APR               Communications Director, LWSD

2       Information from LWSD.org website http://www.lwsd.org/News/News-and-Announcements/Pages/Lake-Washington-school-board-proposes-levy-and-bond-measures.aspx

3      Information from LWSD.org website http://www.lwsd.org/News/2014-Levy-and-Bond/Pages/Frequently-Asked-Questions.aspx

4       Information from LWSD.org website http://www.lwsd.org/SiteCollectionDocuments/News/Levy-Bond-2014/2014-Levy-and-Bond-Options-Presentation.pdf

Paige A. Norman

Redmond resident

paigenor@outlook.com