Question: Are you going to lower the levy if there's more than a 3.0% increase:
Yes. If annual valuation increases are beyond the 3.0% assumed increase, the levy is lowered. The inverse is also true, however. If annual valuation increases are less than 3.0% the levy would increase.
This is a question about the assumptions in the financing component for the bonds. The models we are using to estimate the required levy has an assumption of a 3% growth in valuation year over year. If the valuation growth is exactly 3% then the levy will be exactly what the model shows. However, if the valuation is greater than 3% then the levy will be less than what the model shows. The levy will fluctuate yearly based on certified valuations we receive from the county assessors. I think what helps clarify this for me is that there is a specific dollar amount needed each year. The levy will adjust in order to generate the required dollar amount to make the payment. IF the valuation is higher than the assumption the levy will be reduced. Conversely, if the valuation is lower than three percent then the levy would have to be higher than what is in the model.