LaBrae's 2023 Bond Rate
LaBrae Cuts Taxes Again with Bond Rate Reduction
LaBrae Local Schools is reducing the rate of taxation in 2023 on the outstanding debt incurred when the District built the LaBrae Complex. The construction costs for building the new LaBrae Complex were acquired, as is typical with capital improvement projects of this magnitude, through the sale of bonds on the market. The original debt was refinanced in 2011 so the District could take advantage of historically low interest rates at that time. The refinancing of the debt saved the District, and subsequently, LaBrae taxpayers, $631,644.17 in interest over the remaining life of the debt.
In 2022, LaBrae Local Schools was able to compound the aforementioned interest savings by continuing the return of unused principal from the bond levy to taxpayers. The 2022 tax rate on the LaBrae bond debt was reduced from 4.4 mills to 3.8 mills of taxation. In 2023, the bond rate will be lowered further to 3.3 mills. For comparison, the 2016 tax rate on the bond debt was 5.7 mills. From 2017-2019, the tax rate stood at 5.0 mills. The bond millage was lowered to 4.5 mills in 2020. What does this mean for a property owner in our community? In 2016 at 5.7 mills, the owner of a $100,000 home would have paid $199.50 in taxes to help fund the bond obligation. With a reduction in millage to 3.3 mills in 2023, that same homeowner will see a lower tax liability of $115.50.
The District is able to return the remaining unused principal because the construction of the building project came in under budget. This unused principal will supplant tax revenue lost when lower tax rates on the bond levy are provided to LaBrae property owners. Each year LaBrae Local Schools evaluates the tax revenue from the bond levy and sets its tax rate with the Trumbull County Auditor's Office to ensure that the rate will generate enough money to make the coming year's debt payments. LaBrae Local Schools will continue to manage this revenue in an efficient and responsible manner. LaBrae will continue to annually evaluate bond revenues and adjust the rates accordingly. The last debt payment will be made in December 2024, which will mark the expiration of the bond obligations.
Should you have questions regarding the information herein, please do not hesitate to contact the Superintendent or Treasurer at 330.898.0800.