Sunday, September 27, 2009

One Awesome Investment in a Hard Recession

Remember the old adage...if you can get your investment to grow at about an 10-11% rate, you'll double your investment every 7 years.

So many of us saw investments take a big hit in the wake of the recession the country continues to struggle with. But there is ONE thing that continues to grow at the premium rate. If only our investments were this reliable!


What is it? The school district tax levy!!!! Over the past 7 years, the tax levy has grown from about $22M to over $46M. It's the perfect investment growth curve!

Unfortunately, the equalized value (the equalized assessed value of all property in the district) has begun to peak.


Why do you care? The mill rate is determined by dividing the tax levy by the equalized value. If you remember your math, the mill rate SHRINKS as the denominator (the equalized value) increases at a greater rate than the numerator (the tax levy). That's why the mill rate is shooting up...because the district continued to spend as if the economy and property values were not taking a hit.