What Is the Levy Request and When Do We Vote?
An operating levy request for Bexley City Schools will appear as Issue 36 on the November 5, 2024, general election ballot. The levy request is for funds to operate Bexley Schools.
What Would the Levy Funds Pay for?
If approved by Bexley voters, funds generated from the levy will pay to operate Bexley Schools.
This operating levy is funded from property taxes and specifically funds the day-to-day operational costs of a school district. The proposed levy will fund daily current operational expenses, support the work to meet the district’s strategic plan goals, and maintain current academic and extracurricular offerings, as well as student services. This includes salaries, utilities, transportation, and other essential services.
What Are the Term and Amount of the Levy Request?
The proposed levy will be phased in over 5 years, to reach a total of 15 mils.
- Year 1, 2025 - 5 mills
- Year 2, 2026 - 2.5 mills
- Year 3, 2027 - 2.5 mills
- Year 4, 2028 - 2.5 mills
- Year 5, 2029 - 2.5 mills
What Is the Levy Cost to Taxpayers?
The cost is based upon the county auditor’s appraised value of a property.
Property owners can expect to pay an amount close to the following annual breakdown according to the value of their property.
2025 | 5 mills | $175, per $100K of Appraised Value |
2026 | 2.5 mills | $88, per $100K of Appraised Value |
2027 | 2.5 mills | $88, per $100K of Appraised Value |
2028 | 2.5 mills | $88, per $100K of Appraised Value |
2029 | 2.5 mills | $88, per $100K of Appraised Value |
This cost is an estimate based on current property valuations and may vary slightly with changes in these valuations.
When Did Bexley Residents Last Approve a Levy Request and What Was the Amount?
Bexley voters last approved a 9-mill operating levy five years ago, in 2019. At that time, the school district told residents that a new levy request could be on the ballot in 2022. At that time, it was expected that additional revenue would be needed by 2023.
Why Is the School District Asking for More Money Now?
The need for additional revenue is reflected in the school district’s Five-Year Forecast, a document summarizing the financial health of a school district that is required to be filed with the State of Ohio twice a year. The May 2024 Five-Year Forecast confirms that the district’s revenue forecast will fall below the district’s 70-day cash-on-hand threshold in three years.
Treasurer Kyle Smith stated the following to the Bexley Board of Education on May 8, 2024: “What this says is we will be out of cash by fiscal (year) 2028. This is the reasoning for the need for additional revenue to continue current operations.”
Why Are Levy Requests from the Schools Needed So Often?
Revenue the school district receives from voter-approved levies is fixed. For Bexley, it does not increase with inflation or from property value increases (due to limitations of House Bill 920). Districts at the minimum-funding floor (not Bexley) do get increases from property value increases. For example, the 2019 9-mill levy is now at an effective residential tax rate of 6.075 mills.
Like households or businesses, our costs increase from inflation and sometimes from unexpected expenses. We must stretch our existing revenue as far as we can.
There comes a point in time though when existing revenue is not enough to cover current and projected expenses. Our Five-Year Forecast, completed every May and November, helps us to determine when additional revenue may be needed.
Levy requests are cyclical, not to a specific time, but in the cycle of accepting new revenue and stretching it as far as possible, until the revenue stream cannot keep up with needs and expenses. When school districts reach that point, then a levy request for additional funding may be needed.
How Does an Incremental Levy Help Residents and the Schools?
An incremental levy allows the schools to receive funds when they’re needed, not upfront like a traditional levy. For taxpayers, an incremental levy lessens the immediate financial impact.
Why Was an Incremental Levy Selected over a Traditional Levy?
Bexley Schools last asked for voters to approve a 9-mill operating levy in 2019, which was passed. Though approved in 2019, residents told us then that 9 mills was a large request. Residents encouraged us to find ways to ask for smaller funding requests.
Treasurer Smith convened the school district’s Finance Advisory Committee four times since December 2023 to discuss finances and to allow members to weigh levy and funding options. The committee’s members considered both district needs and taxpayer concerns when settling upon the recommendation for a 5-year incremental levy. Worthington City Schools has been using the incremental funding model for more than 10 years.
Would Funds from the Operating Levy Help to Pay for the School Facilities Upgrades the District Has Been Working on?
No. If approved, new funding from the incremental levy would be used to pay for daily school operations.
How Would School Facility Upgrades Be Paid for?
The Bexley Board of Education is expected to receive a proposed Facilities Plan during the first quarter of 2025. If the Board approves the Facilities Plan, then Board members, along with the School District Treasurer/CFO and Superintendent, will discuss how to pay for school building upgrades. It is anticipated that a bond levy or permanent improvement levy will be considered. Bexley voters would vote on any new funding options.