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<br />ATTACHMENT D <br /> <br />Comparison of Property Tax Funding Approaches <br /> <br />The following chart compares three property tax funding mechanisms: long-term GO bonds, short-term <br />GO bonds, and a capital local option levy. Each of these options is designed to fund $6.5 million of <br />pavement capital preservation projects per year for 10 years, and taxpayers will pay the costs over a 10- <br />year period. <br /> <br />Comparison of Funding Types – Bonds vs. Local Option Levy <br />To fund $6.5 million of project spending annually for 10 years <br /> Capital Local <br />Option Levy <br />(fixed dollar <br />Short-Term <br />Long-Term Bonds Bonds amount) <br />Bond/Levy Size $66.3 million $65.1 million $69.8 million <br />Total Tax Levy Over 10 Years $87.0 million $69.9 million $69.8 million <br />High/Low/Average <br />Annual Levy Amount <br />$10.1/$7.3/$8.7 <br />$7.0 million $7.0 million <br />( 95% collection rate) <br />million <br /> <br />High/Low/AverageHigh/Low/AverageHigh/Low/Average <br />Estimated Tax Rate <br />$0.90/$0.42/$0.64 $0.63/$0.41$0.51 $0.62/$0.41/$0.51 <br />Cost Per Year to Owner of Median- <br /> <br />High/Low/AverageHigh/Low/AverageHigh/Low/Average <br />$137/$85/$110 $96/$81/$88 $95/$81/$88 <br />Value Home <br /> <br />Payment Period 10 years 10 years 10 years <br />Issuance & Interest Costs Over 10 Years $17.6 million $1,400,000 $1,300,000 <br /> <br />Some of the other effects of these funding mechanisms are compared in the following chart. The chart <br />shows both a fixed dollar and a fixed tax rate capital local option levy. <br /> <br />F:\CMO\2007 Council Agendas\M071210\S071210B.doc <br /> <br />