School Board Approves Tax Cut for West Valley Taxpayers

On September 9, 2025, the West Valley School Board unanimously approved a resolution to use $7.5 million in leftover school construction funds to lower property taxes.

What is defeasance?
 Defeasance is when a district uses extra funds to buy government securities, which lowers the tax rate on existing bonds.

How much will this save taxpayers?
 The $7.5 million defeasance is expected to reduce the tax rate by about $0.10 per $1,000 of assessed value each year from 2026 through 2038. 

Why were there leftover funds?
 Voters approved a bond in 2019 to build Apple Valley and Summitview elementary schools. Thanks to lower construction costs and a faster schedule, money remained after the projects were completed.

How was this decision for defeasance made?
 Starting in 2022, the School Board held community meetings to gather input on how to use the leftover money. Options included using it all for tax relief, using it all for school improvements, or splitting between the two. In June 2023, the Board approved a plan to do both.

During the past two years, the District completed Capital Projects and a community group updated the Long-Range Facilities Plan.  After a thorough review of the facilities plan, the current School Board decided to use $7.5 million to lower the tax rate for West Valley tax payers from 2026 through 2038.

What happens next?

• District administration will work with the Yakima County Treasurer and financial advisors to process the defeasance.
• The new lower tax rate will be included in the 2026 property tax certification.