§ 29217 Refunding Bond Tax Levy

• •If the bonds take more than a year to mature, the board must collect a tax every year.
• •This tax money is used to pay the interest on the bonds and save up to pay back the full amount when it's due.
• •The goal is to have enough money saved to pay back the bonds on time.

Imagine you borrow money from a friend and agree to pay it back in 5 years. Every year, you save some money to pay the interest and also put some aside to have the full amount ready when the 5 years are up.

Similarly, the board collects a tax every year to pay the interest on the bonds and save up to pay back the full amount when the bonds mature.