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- Cherry Creek School District No. 5
- Overview of Mill and Bond Elections
Overview of Mill and Bond Election
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Why does CCSD need mill and bond elections?
Funding for the Cherry Creek School District, and all school districts in Colorado, is determined by the 1994 School Finance Act. This formula does not provide any funding for facilities or capital construction needs of schools. The only way CCSD receives additional funding for capital construction needs or operating expenses like teacher pay is by voter-approved measures such as Mill Levy Overrides and Capital Construction Bond.
Additionally, Colorado currently ranks in the bottom third of states for K-12 education funding, trailing the national average by $2,000 to $2,500 per student per year.
What is a mill election?
A Mill Levy Override (MLO) helps supplement the operating budget of a school district. This includes ongoing operating expenses such as salaries and benefits; staffing to maintain class size; computers and classroom technology; curriculum and instructional supplies and programming; transportation; utility costs; and other expenses related to CCSD’s commitment to academic excellence and the highest quality educational programs.
It requires approval by CCSD voters and is funded through personal and business property taxes. A recent change to the School Finance Act increased CCSD’s mill levy override limit from 25% to 30% of CCSD’s Total Program.
What is a bond election?
A Capital Construction Bond helps to fund capital expenditures for a school district. Bonds can only be used for capital needs such as building new schools; equipping and furnishing new schools; repairing, renovating, improving and enlarging existing facilities, including updating heating and ventilation systems, roofs, wiring and plumbing; and other major costs including larger technology purchases, safety and security systems and innovation projects. These are needs generally defined as assets that have a useful life over one year.
A bond is funded through personal and business property taxes. Voter approval is required by state law for a school district to incur long-term debt. The debt instrument (general obligation bond) will allow a school district to borrow money at the lowest interest cost, on a competitive basis, due to the credit quality of the district. The Cherry Creek School District has a strong credit rating and is able to issue tax-exempt general obligation bonds at a very low interest rate.
Did You Know?
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CCSD taxpayers pay less than taxpayers in surrounding school districts.