LWSD bond tax levy rate full disclosure | Letter

I have read with interest information on the Lake Washington School District (LWSD) $398 million bond issue and how this may impact the actual dollar amount of my property taxes. Voter information and opinion letters to the Kirkland Reporter state that the "tax levy rate will not increase." However, this does not mean the dollar amount a property owner will pay for the bonds will not increase. Most likely property owners will be paying a substantial actual dollar amount increase over the next 10 years to pay for planned bond issues.

April 11, 2016 12:43 pm
Letters to the editor can be submitted to editor@kirklandreporter.com.
Letters to the editor can be submitted to editor@kirklandreporter.com.

I have read with interest information on the Lake Washington School District (LWSD) $398 million bond issue and how this may impact the actual dollar amount of my property taxes. Voter information and opinion letters to the Kirkland Reporter state that the “tax levy rate will not increase.” However, this does not mean the dollar amount a property owner will pay for the bonds will not increase. Most likely property owners will be paying a substantial actual dollar amount increase over the next 10 years to pay for planned bond issues.

Voters need to be provided by LWSD a clear example of the actual dollar amount of bond taxes to be paid by a typical home owner based on the median assessed value of a home in the school’s district over the next 10 years. Full disclosure will not only help voters in their decision making process, but also in support of the district’s future building plans.

Contained in the LWSD website “Long Term Bond Plan,” the LWSD is forecasting over the next 10 years four building/capital improvement bond issues totaling $1.171 billion including the $398 million bond issue. The district’s assumptions are based on a 3.8 percent increase in annual assessed valuation growth including 1.8 percent from property assessed valuation increases and 2 percent from new construction. Over a 10-year period for each $1,000 in total assessed valuation growth at a 3.8 percent compound rate will result in an assessed value of $1,399 or nearly a 40 percent increase. The vast majority of property owners will be paying a higher dollar amount in bond taxes based on the district’s assumptions. The exact amount would depend on the increase in assessed value of a specific property as well as the amount of total assessed value growth from new properties, which would also help pay for the bonds.

Good school buildings are a significant investment to support a growing student enrollment and part of the equation for providing a quality education and a productive future work force. But at what cost to the taxpayers? As the voter ballot provides no statement on the tax levy rate or bond payment assumptions full disclosure of costs to property owners is needed. Statements that the “tax levy rate will not increase” do not fully disclosure the financial costs placed on property owners.

Doug Sollitt, Kirkland