If the referendum is successful, the City will likely sell the bonds over a three- to four-year period. This will mean that the increase in property tax impact will also be spread over three to four years.
The City may sell approximately 25% or 33% of the bonds in 2024, 2025, 2026, and/or 2027. Once bonds are sold in a particular year, they will not impact your property taxes until the following year. As an example, if the City sells bonds for four consecutive years beginning in 2024 (2024, 2025, 2026, and 2027) the increase in property tax impact would begin in 2025 and continue for four consecutive years (2025, 2026, 2027, and 2028) and then remain constant for the remainder of the 20-year period until the bonds are retired.
Question 1 Example
Tax Impact of $66,750,000 G.O. Bonds Issued with a 20-year repayment |
Year | Bonds Sold | Median Valued Home Annual Amount |
2024 | $16,687,500 |
|
2025 | $16,687,500 | $58.59 |
2026 | $16,687,500 | $58.59 |
2027 | $16,687,500 | $58.59 |
2028 | | $58.59 |
Total | $66,750,000 | $234.36 |
Tax impact is estimated based on certain assumptions, including a median value home valuation of $352,500 and an estimated issuance of $66,750,000 in general obligation bonds with repayment period of 20 years and estimated bond rates as of June 30, 2023.
Question 2 Example
Tax Impact of $6,500,000 G.O. Bonds Issued with a 20-year repayment |
Year | Bonds Sold | Median Valued Home Annual Amount |
2024 | $1,625,000 | |
2025 | $1,625,000 | $5.70 |
2026 | $1,625,000 | $5.70 |
2027 | $1,625,000 | $5.70 |
2028 | | $5.70 |
Total | $6,500,000 | $22.80 |
Tax impact is estimated based on certain assumptions, including a median value home valuation of $352,500 and an estimated issuance of $6,500,000 in general obligation bonds with a repayment period of 20 years and estimated bond rates as of June 30, 2023.