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<br />Other Effects of Bonds vs. Local Option Levies <br /> Capital LOL – <br />Long-Term Short-Term fixed dollar Capital LOL – <br />amount <br />GO Bonds GO Bonds fixed tax rate <br />Impact on Debt Ratios? Yes Minimal None None <br />Measure 5 Impacts/ <br />No No Yes Yes <br />Count Towards $10 Cap? <br />Dollar amount Dollar amount <br />Dollar amount Tax rate <br />representing representing <br />What Number Do Voters representing representing <br />project + project + <br />Approve in Ballot project + interest project + interest <br />issuance costs issuance costs <br />Measure Language? (not interest costs (not interest costs costs + collection costs + collection <br />factor factor <br />or collection or collection <br />factor) factor) <br />Adjustment for Inflation? Depends Depends Depends Yes <br /> <br />It would be possible to adjust the bond or levy request in order to capture additional funds to account for <br />inflation over the 10 year period. The chart below sets out the short-term GO bonds and capital local <br />option levies sized to account for 4.8% annual inflation. <br /> <br />Comparison of Funding Types – Short-term Bonds vs. Local Option Levy <br />To fund $6.5 million + 4.8% inflation annually for 10 years <br /> Capital Local <br />Short-Term Option Levy <br />(fixed tax rate) <br />Bonds <br />Bond/Levy Size $81.1 million $87.0 million <br />Total Paid by Taxpayers $87.0 million $87.0 million <br /> <br />High/Low/AverageHigh/Low/Average <br />Annual Levy Amount <br />$10.6/$7.1/$8.7 $10.6/$7.0/$8.7 <br />( 95% collection rate) <br />million million <br />Estimated Tax Rate $0.62 $0.62 <br />Cost Per Year to Owner <br /> <br />High/Low/AverageHigh/Low/Average <br />$124/$96/$109 $124/$95/$109 <br />of Median-Value Home <br /> <br />Payment Period 10 years 10 years <br />Issuance & Interest Costs Over 10 Years $1.4 million $1.3 million <br />F:\CMO\2007 Council Agendas\M071210\S071210B.doc <br /> <br />