Levies vs Bonds: What’s the Difference?

Do you know the difference between levies and bond issues? Similar to how homeowners may have different accounts for their expenses, school districts do, too. Here's a quick comparison:

Operating Levy

An operating levy helps fund Lakota’s daily expenses - like a checking account for the District. The majority of this money goes toward classroom instruction, student support and extracurricular activities.

Permanent Improvement Levy

A permanent improvement (PI) levy helps Lakota pay for long-term needs - like a savings account for the District. It pays for things that last at least five years, such as curriculum, technology and the upkeep of Lakota's buildings.

Bond Issue

A bond issue is how Lakota pays for large building and facility projects. Like a mortgage, the District borrows this money and pays it back over time. This money cannot be used for daily expenses, like salaries.

On Nov. 4, Lakota residents will decide whether to fund the District's Master Facilities Plan through a bond issue and permanent improvement levy. The Lakota Board of Education's commitment to the community includes:

• Collection will not start until the calendar year 2029.
• Collection will be limited to 2.66 total mills. This is LESS than the ballot language will require.

Learn more about the Master Facilities Plan on our website.