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What is a Bond Issue?

Posted on: October 27, 2021
bond issue operating levy graphic
What is a bond issue? - A bond issue is used to provide local revenue for construction purposes. By law, bond dollars can be used only for capital costs - building construction and/or renovations, major equipment purchases and furniture. It cannot be used for salaries or any operational expenses. Bond Issue funds also cover costs for all equipment and furniture for the new building.
What is the difference between a bond issue and an operating levy? - Bond issues raise money that, by law, can ONLY be used for capital improvements (bricks and mortar). Operating levies generate money for a district’s day-to-day operating costs, such as salaries, benefits, and utilities.