What is the difference between a bond/operating levy? How come 2+ mills can generate roughly $50 million for a bond issue but it takes 20+ mills to generate $50 million for our annual operating budget?
In raising millage to fund a bond issue, keep in mind you are only levying enough millage to finance the principal and interest payments on the total amount that is being financed. Conversely, in an operating scenario, millage is being assessed to raise the full amount of the request. In short, you are borrowing money in a bond issue and need to pay It back in small increments over the time, hence the lower millage. In the operating scenario, you are raising (not borrowing) a significant amount of money and it needs to be paid for all in the same year.