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 $575 per $100,000 of taxable market value that is CURRENTLY collected break down into actual utilization?

A: The total 2018 levy rate of .005747983 levied by the Parma School District, which equals the $575 per $100,000 of taxable market value, is the combination of the district’s bonds and levies. The following shows the components collected annually by the Parma School District:

  • $285 for current debt payments to pay off the 2004 and 2009 construction bonds. The 2004 bond will be paid off in 2020 and the 2009 bond is paid off in 2025.
  • $75 for the Plant Facilities levy to support the maintenance and upkeep of current facilities and grounds.
  • $105 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 distict tax rate be if the bond 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 13%. With the passage of this bond the $575 collected per $100,000 will decrease by $75 to $500 per $100,000. The property tax rate will drop from .00575 to .00500.

Q: HOW WILL THE NEW AMOUNT OF $500 PER $100,000 OF TAXABLE MARKET VALUE THAT WILL BE COLLECTED BREAK DOWN INTO UTILIZATION?

  • $235 for current debt payments to pay off the 2004 and 2009 construction bonds and pay for the new 2018 bond.
  • $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.

 

Q: What will the proposed bond pay for and estimated cost of each component?

  • Construction of a new Agricultural Science building to support current Ag programs and provide more advanced course offerings. ($2M - $2.25M) 

  • Expansion of the high school band room due to overcrowding. ($.5M - $.75M) 
  • Replacement of the current stadium and upgrades to the field lighting. ($1.5M - $1.75M) 
  • Construct new middle school tennis courts. ($.4M - $.5M) 
  • Total = $4.4M - $5.25M


Q:  THE BOND RESOLUTION/BALLOT STATES THAT “THE ESTIMATED ANNUAL COST TO THE TAXPAYER ON THE PROPOSED BOND IS A TAX OF $77 PER $100,000 OF TAXABLE ASSEESSED VALUE BASED ON CURRENT CONDITIONS.” DOESN’T THIS MEAN TAXES WILL INCREASE?

  • A:The $77 per $100,000 of taxable value that will be collected is just a part of the total $235 collected to go towards debt payments. So rather than being an additional amount it is folded in with current collections.


Q:  THE BOND RESOLUTION/BALLOTT ALSO STATES “THE TOTAL AMOUNT TO BE REPAID OVER THE LIFE OF THE BONDS, BASED ON THE ANTICIPATED INTEREST RATE, IS $5,165,568, CONSISTING OF $5,000,000 IN PRINCIPAL AND $2,379,383 OF INTEREST, TOTALING $7,379,383, LESS $2,213,815 IN ESTIMATED BOND LEVY EQUALIZATION PAYMENTS.” WHAT IS BOND LEVY EQUALIZATION AND HOW DOES IT EFFECT OUR LEVY RATE?

A:The Bond Levy Equalization Program was created by the Idaho legislature a number of years ago to help school districts with building and construction projects. Based on several factors established in legislation the State provides assistance to school districts in meeting their debt payment requirements. This year the Parma School District received $259,252 from the State to help us meet our payments on the two existing bonds. With the passage of this new bond the district will qualify for additional Bond Levy Equalization support. What the ballot is stating is that this new support over the term of the debt will amount to $2,213,815. The Bond Levy Equalization Program will lower the amount that needs to be collected by local taxes and in essence lower the interest rate on the bond from 3.42% to less than 1%. This allows the district to incur additional debt and still significantly lower the total district levy rate.