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Tax Impact <br /> <br />The following chart shows the tax impact for various bond issues <br />with a 20 year term and a 7.30 percent interest rate. <br /> <br />Bond Issue Size <br />Tax Rate <br /> <br />$ 1,500,000 $ 2,500,000 $ 3,500,000 <br /> 2.474% 4.124% 5.757% <br /> <br />$ 4,500,000 <br /> 7.423% <br /> <br />Estimated Market <br /> Value <br /> <br />Resulting Tax Increase <br /> <br />60,000 R $ 15 $ 25 $ 35 $ 45 <br />80, 000 R 23 38 53 68 <br />120,000 R 33 54 76 98 <br /> <br />144 240 336 433 <br /> <br />150,000 C/I <br /> <br />R = Residential - homestead <br />C/I = Commercial or Industrial <br /> <br />Tax Rate = Debt Service X 105% divided by Total City Tax Capacity <br />($6,331,671) <br /> <br />Ail tax calculations are made using payable 1990 tax numbers and <br />laws. <br /> <br />A $4.5 million Bond issue will generate approximately $4,360,000 in <br />proceeds available for construction. The remaining $140,000 would <br />be used for financing costs associated with the issue. The annual <br />debt service for this issue is estimated to be approximately <br />$450,000. <br /> <br />Supplemental Information <br /> <br />1989 Estimated Market Value of Taxable Property $309,273,623. <br /> <br />1989 Gross Tax Capacity $6,331,671 <br /> <br />Legal Debt Limit <br /> <br /> (2% of Estimated Market Value) <br /> Less Outstanding Debt Subject to Limit <br /> <br /> Debt Margin as of December 31, 1989 <br />Payable 1990 City Tax Rate <br /> <br /> Urban Rate 22.620% <br /> Rural Rate 19.389% <br /> <br />$ 6, 185,472 <br /> (929, 780) <br /> <br />$ 5, 255, 692 <br /> <br /> <br />