The Observation Deck

Tax Limited:

Municipality bond that, like a general obligation bond, is backed by the full faith of the government issuer but, unlike an unlimited tax bond, is secured only by a certain percentage of revenue from a specific tax or group of taxes.

Read more: http://www.investorwords.com/7379/limit ... z2X8us5tJh

Tax Unlimited Bond

A municipal bond backed by a full faith and credit commitment to tax at whatever rate and for whatever duration is necessary to fulfill the obligation.

Read more: http://www.investorwords.com/5169/unlim ... z2X8v6Vece

I thought a fascinating subject like this would get more interest!

Answer from Tim Penton:

"If approved by the voters, the District will issue “unlimited tax” general obligation bonds to pay the remaining local share of the costs of the facilities improvement program. The District’s current outstanding bonds are also unlimited tax general obligation bonds. The debt service (principal & interest) on our bonds is payable from voted property taxes approved as a part of each bond issue question, and those voted property taxes are “unlimited as to amount or rate”. That is, they are levied at whatever rate is necessary to generate the amount required for the debt service on the bonds."

Awaiting answer from someone else.

Bill you know more about it than I do but I recall reading, some time ago, about what an “emergency levy” is….

Suffice it to say it has nothing to do with urgency. That would be meaningful and transparent. Rather, an emergency levy is one where the revenue target is fixed, and the millage is adjusted upward if it has to be in order to fulfill the revenue target, whatever that happens to be. So for instance with the recently-passed 3.9 mill operating levy, the millage can be raised if the total funds actually received don’t hit the revenue target. And the alleged 3.9 mill levy could end up, say, 5 mills and you would never know it.

So bottom line, if property values fall 25%, the property taxes we pay for schools in Lakewood will jump 33%. Is that why my property taxes stayed the same when the assessed value of my home actually dropped about 10%? It’s nice to know that taxes will go up automatically as you get poorer….

I read many articles leading up to the vote, and of course I read the ballot language, and not once was the levy described as an emergency levy. Was it? I guess I figured that, in fairness, the ballot language would at a minimum have to reveal that.

Someone please tell me if I am wrong about all this….

I voted “no” on the operating levy because I think that government schools here already have enough money to operate, and then some. I’m inclined to vote yes on what I presume will be a November vote on money for upgraded facilities. But if the Kasich budget is passed, the levy cost jumps another 14% and I probably will vote no again. It’s a lot to pay when you have two young adults in college and are nearing retirement….