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<br />ATTACHMENT B <br /> <br />G.O. Bond Measure Options for <br />Parks, Recreation and Open Space Projects <br /> <br /> <br />Bond Amounts <br />Three options are presented for a General Obligation (“G.O.”) bond measure to be placed <br />on the November 2006 ballot. The three options are for project spending of $20 million, <br />$35 million or $50 million. In addition to the project spending, the bond measure must <br />include a provision for the costs of issuing the bonds, such as obtaining a bond rating <br />from Moody’s, obtaining a legal opinion from bond counsel, working with a financial <br />advisor, publishing the necessary bond documents, etc. The three proposed bond <br />measure sizes are: <br /> <br /> Option A Option B Option C <br /> <br />Project Spending $20,000,000 $35,000,000 $50,000,000 <br />Bond Issuance Costs 410,000 690,000 970,000 <br />Total Bond Size $20,410,000 $35,690,000 $50,970,000 <br /> <br /> <br />Impact on Taxpayers <br />Assuming that voters approve a G.O. bond request in November 2006, the first impact on <br />tax bills would occur in FY08. The chart below sets out the impact on taxpayers if the <br />entire bond amount were issued immediately following the positive election results. <br /> <br />Bond Bond Amount First-Year Cost in FY08 Average Annual Cost <br />Option from FY08 to FY27 <br /> Tax Rate Cost to Tax Rate Per Cost to Median <br />Per $1000 AV Median Home $1000 AV Home <br />A $20,410,000 $0.24 $35 $0.11 $20 <br />B $35,690,000 $0.43 $63 $0.20 $37 <br />C $50,970,000 $0.61 $89 $0.29 $53 <br /> <br />The chart sets out both the first year tax rate and the estimated rate over the 20 year <br />repayment schedule for the bonds. The repayment schedule assumes that the principal <br />payments are equal each year, which results in declining overall payments each year. <br />This means that the cost to the taxpayer decreases each year, as assessed value in the City <br />increases. Therefore, the average cost to the taxpayer over the life of the bonds is lower <br />than the first-year cost. <br /> <br />It should be pointed out, however, that it is likely that any PROS bond measure debt <br />would be sold in more than one piece over several years, as the City did with the last <br />parks and open space bonds. The impact on taxpayers would be different than what is <br />shown above, depending on how much is issued and when it is issued. The chart above <br />sets out the maximum anticipated payment in any year (the FY08 estimate) and the <br /> <br />