Excerpts from Treasurer (7)

What is the difference between an Operating Levy, Permanent Improvement Levy and Bond Issue?

Finneytown Local School District utilizes the following three types of local tax revenue options:

Operating levy

  • A voted local property tax
  • The primary vehicle used to raise local funds for a district’s General Fund (001)
  • Can be used to pay normal, day-to-day operating expenses of a school district such as salaries, fringe benefits, utilities, instructional supplies and equipment
    • Finneytown collects $9,938,000 annually.

Permanent Improvement Levy

  • A voted local property tax
  • Funds are maintained in a separate Permanent Improvement Fund (003)
  • Can only be used to construct, add to, or repair buildings and other school property and assets that have a useful life of at least five years
  • Finneytown collects $222,000 annually.

Bond Issue

  • A voted local property tax
  • Funds are maintained in a separate Bond Retirement Fund (002)
  • Can only be used to pay principal and interest on bonds or notes that were issued by boards of education to pay for large permanent improvement projects.
  • Finneytown collects $917,000 annually.

How are School District Property Taxes Calculated?

Residential property taxes are calculated according to a formula that multiplies the fair market value of the home by a 35% assessment rate by the millage rate divided by 1000.

Annual Property Taxes = Fair market value X 0.35 X millage / 1000

Example: $100,000 home x 0.35 x 7.69 mills / 1000 = $269.15

Operating Levy Outlook and Financial Outlook

The financial position of the Finneytown Local School District remains solid and on target with projections. The District ended the fiscal year (June 30, 2019) with a General Fund cash balance of $8,727,232. The district has now reported an operating surplus in seven out of the last eight years. Current projections suggest the District will not require an operating levy for another five years. The district’s last operating levy was in May 2010.