Library Facilities Master Plan Decision Framework
Financial Analysis
With principal and interest debt service payments accounted for, by 2034, the Capital Fund balance would total $130.6 million for the long-term bond option and $131.1 million for the mediumterm bond scenario, less than the $138.8 million available for pay-as-you-go financed projects.
Tax rate increases. Tax increases were also considered as a possible source for funding future Library District capital projects. Currently, as described above, the majority of Library District revenues are sourced to property tax and a share of the consolidated tax. Both revenues present unique difficulties in enacting and raising significant new revenues.
The utility of bond financing seems a viable option only if the Library District needs access to capital funding sooner than pay-as-you-go funding allows. This would be in circumstances where the Library District Board of Trustees choose to provide expanded services to the community quicker, potentially limit construction cost escalation exposure, and/or fulfill the needs of larger, more capital-intensive projects.
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Property tax increases, as previously discussed, are significantly capped. Currently, at least 95% of all property value in Clark County falls under the property tax cap. Additionally, revenue is also capped (abated) in redevelopment areas, where incremental revenues do not inure to the Library District but rather to the redevelopment agency. This applies to roughly 4.3% of all value in Clark County. Applying both limitations to potential Library District property tax rate increases suggests that doubling the property tax rate in the District would result in an increase of just $2.1 million of revenue in FY 2020, 4.9% over existing revenues.
Additional Property Taxes Raised by Doubling the Rate $2.1 M
$2.2 M
FY ‘20
FY ‘21
$2.3 M
FY ‘22
$2.4 M
FY ‘23
$2.6 M
FY ‘24
$2.7 M
FY ‘25
$2.8 M
FY ‘26
$3.0 M
FY ‘27
$3.1 M
FY ‘28
$3.3 M
FY ‘29
$3.4 M
FY ‘30
$3.6 M
FY ‘31
$3.8 M
FY ‘32
$4.0 M
FY ‘33
$4.2 M
FY ‘34