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Financial Impact

1. DID YOU KNOW THAT MERCER ISLAND HAS THE LOWEST TAX RATE FOR SCHOOLS ON THE EASTSIDE?

​Mercer Island taxpayers currently pay 32-54% less in local school taxes than Bellevue, Issaquah, Lake Washington and Northshore School Districts.

The current rate is $1.44 per thousand of assessed value. With the April 2025 Bond, the rate would be $1.89 per thousand.

Let's compare that to other Eastside districts.

The Issaquah School District rate is $3.14 per thousand, so school taxes would still be 66% higher in Issaquah than on Mercer Island with voter approval of the April 2025 bond.

Let's compare tax rates with the 21 school districts across Washington State with a comparable total assessed property values. Mercer Island's rate is the lowest, 21st on the list. After the bond passes, we'd be 19th out of the 21 districts.

Let's compare tax rates with the 19 school districts in King County. Mercer Island's tax rate is 18th, nearly the lowest with only one other district having a lower rate. After the bond passes, we'd still be 17th out of the 19 districts.

Data was compiled by Piper Sandler.

This is demonstrated financial responsibility, keeping our Mercer Island school tax rates the lowest on the Eastside, across King County, and across Washington State.
2. DID YOU KNOW THAT MISD IS STABILIZING OUR SCHOOL TAX RATE ACROSS LEVIES AND BONDS?
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After the bond passes, the tax rate for schools will be $1.89 per $1000 assessed value. 

Regarding levies, voters will be asked to approve replacement levies for EP&O and CapTech funding because these expire.  EP&O levies are funds for learning and are voter renewed every 2-4 years.  EP&O levies are capped by the McCleary decision, so MISD cannot even ask for a higher amount of EP&O funding.  CapTech levies are funds for smaller capital projects and some IT and maintenance salaries, and these are voter approved for 2-6 years. Your tax rate is planned to remain stable at $1.89.

This is demonstrated financial responsibility, designing for a stable tax rate and for keeping our schools outstanding for our students.
3. DID YOU KNOW THAT THE LAST BOND FOR IMPROVING MERCER ISLAND SCHOOL BUILDINGS WAS IN 2014?

​In 2014, Mercer Island approved a bond to build Northwood Elementary, build 1/2 of IMS, and add 12 classrooms to MIHS. That bond was for $98.8MM ($172MM in today's dollars).  That bond has been restructured (saving taxpayers $1.5M), and the bond is being paid off in 15-years rather than 20-years.

Now it's time to build the other 1/2 of IMS, just as our community decided  was the financially responsible thing to do 11-years ago.  This bond finishes IMS, providing security and learning spaces, and critical improvements to the 70-year old MIHS based on aging infrastructure (HVAC, plumbing, fire alarm) as well as updates learning spaces.

There are many other improvements considered, yet the bond reflects the honed scope and smaller size that Mercer Island voters have supported for decades.  The last bond was approved by 74% of voters, a reflection of how valuable our schools are to our community.

This is demonstrated financial responsibility.  MISD waited until the previous bond is nearly paid off to ask voters for a bond, and the bond is about the same size as the previously approved bond.
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4. DID YOU KNOW THERE'S A DIFFERENCE BETWEEN A BOND AND A CAPTECH LEVY?

Hang on, it's easy. There are 3 voter approved ways to fund schools: Bonds, CapTech Levy, and EP&O Levy. The combinations of these three support a local school district. Washington State also provides funding, and for MISD that's about 70% of the annual MISD General Fund.

OK, here are the 3 ways voters approve school funding, and you'll see the differences between a CapTech Levy and a Bond.

(1) Technology & Facilities Capital Projects Levy (CapTech): These levies can be approved by voters and can last from 2-6 years. These levy funds are available on an annual basis to school districts. Funds can be used for smaller capital improvements (boilers, roof, HVAC), but are not large enough to build buildings or do major renovations. CapTech funds can be used for technology costs such as computers.  CapTech funds can also be used for some salaries, such as IT staff and some Maintenance & Operations positions.

Please note there are some incorrect claims about this funding source. 
- Nearly every school district that has a CapTech levy transfers CapTech funds into their General Fund for the approved salaries....otherwise the rules require 2 paychecks, 2 W-2s, and other chaos.  MISD does this in accordance with state rules, and this passes audit. This is the standard operating procedure for Bellevue, Issaquah, Lake Washington, and Northshore.
- Some districts with much higher total assessed value (e.g. Seattle, 300B of assessed value) can build schools and do renovations with CapTech levies.  This isn't feasible for Mercer Island because our total assessed property value is 20B, so our school tax rate would have to skyrocket for Mercer Island to raise enough money via a CapTech levy.  

(2) Educational Programs and Operations Levy (EP&O): Can be offered for voter approval every 2-4 years. These levy funds are available on an annual basis to school districts. Funds can be used for educational programs (including salaries) and operations (e.g. insurance, utilities bills, transportation). The McCleary decision caps the amount that a district can raise with an EP&O levy.  MISD cannot raise additional funds for learning because of the McCleary cap. (This means the bond does not and cannot take away funds for learning.)

(3) Bond. Bonds build buildings and do major renovations. There is no other method for funding buildings on Mercer Island. No funding for construction comes from the state. Bonds are sold, and then the school district services the debt. All the funds come to the school district when the bonds are sold, much like your ability to buy a house and then pay the mortgage.
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5.  DID YOU KNOW THAT THERE MAY BE SOME STATE FUNDING TO SUPPORT THE CONSTRUCTION? 

Washington State does not pay for school construction or renovation.  However, the state provides what is called SCAP (School Construction Assistance Program) funding for schools once they have reached 30-years of age, or 30-years since the last major remodel.  The formula is based on enrollment, allowable square feet per enrolled student, and the SCAP dollars per allowable square foot.  This total is then factored by the district’s match percentage.  For IMS, the district should be eligible for up to $4MM in funding.  The district will apply for and diligently pursue every dollar available, but there are no guarantees when OSPI will reimburse.  The district has committed to front funding the project and using the state funds to pay down the bonds which will reduce the cost for Mercer Island taxpayers.  ​

Get your questions answered

 If you'd like to see a question added to this list, please email us at [email protected]
For more detailed information on the bond, please visit the Mercer Island School District website.