HOW WILL THIS IMPACT YOUR TAXES?
Calculating tax impacts for project, such as the proposed new Emergency Services Building, is based on a
variety of factors. These include amount of borrowing, repayment term, interest rates, debt structure & placement, and future tax base of the City. Also, the value of each individual property plays a role (higher value properties will be impacted more).
Of all these variables, the only solid answer we have is borrowing amount…. which is $4.5 million if approved by the voters. If approved, the City intends to secure the longest term available with the best interest rate, but that will be dictated by the market and other factors. As such, we’ve asked our municipal advisor to calculate impacts on a few different scenarios…. specifically, a 20-year municipal bond (the least attractive option), a 30-year municipal bond, and a 39-year USDA loan (the most attractive option). Based on these scenarios, the current estimate is an increased monthly cost between $40 and $65 for a $250,000 single family residence, again based on type of debt. The City will aggressively pursue the most cost efficient method possible. Please see the attachment for a more detailed breakdown of these numbers. If you wish to learn more about the project itself, the City will be holding two community informational meetings. The first will be on Thursday, October 3rd from 5 PM
to 8 PM at the Fire Hall. The second will be on Saturday, October 5th at 11 AM to 2 PM at the Fire Hall.
Click Here-Tax impact spreadsheet
