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Bond Accountability Commission 2 Recommendations Page 112

able to utilize all tax collections and to apply excess balances to debt service in succeeding years in which annual revenue is insufficient to pay annual debt service. As shown in the following chart, after the spikes in debt service, cumulative net revenue would increase significantly. This is available to support the issuance of the remaining $55,000,000 authorization, and/or can permit a reduction in the millage rate necessary to repay the outstanding 2002 and 2004 Bonds. Additionally, the millage rate could be maintained at the targeted level to support the repayment of any subsequently approved Bond.

Cumulative Net Tax Revenue Increases Significantly After Notes are Repaid

Cum. Net Tax Revenue $375,000,000 $350,000,000 $325,000,000 $300,000,000 $275,000,000 $250,000,000 $225,000,000 $200,000,000 $175,000,000 $150,000,000 $125,000,000 $100,000,000 $75,000,000 $50,000,000 $25,000,000 $0 2001

2003

2005

Assumes 15% of property tax is not received.

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

Collection Year (Beg. Jan. 1)

The only obvious flaw in the structure is that while the Issue 14 ballot language stated that principal would be repaid “over a maximum period of twenty-five years,”

BAC2 Recomendations Final 04062010  
BAC2 Recomendations Final 04062010  
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