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Addition-Impact of Debt Financing
Impact of Debt Financing April 10, 2012 Council Work Session Current Debt Year Tax Levies Required 2012 $351,558 2013 $341,406 2014 $330,853 2015 $319,862 2016 $153,170 2017 $115,450 2018 0 Example of New Debt Issue Construction Cost: $1,500,000 Total Cost: $1,580,000 Assumptions: 2012, 10-yr issue, 2.5692%net rate, 20%assessed for 10 yrs at 4.50% Tax Capacity Annual Tax Impact,Home Market Value Annual Tax Levy Rate Year Required Increase $100,000 $150,000 $200,000 2013 $130,000 2.32% 23.21 34.82 46.43 2014 $140,000 2.48% 24.75 37.13 49.50 2015 $145,000 2.54% 25.38 38.07 50.76 2016 $145,000 2.51% 25.13 37.70 50.26 2017 $147,000 2.52% 25.23 37.84 50.45 2018 $150,000 2.55% 25.49 38.23 50.97 2019 $150,000 2.52% 25.23 37.85 50.47 2020 $150,000 2.50% 24.98 37.47 49.97 2021 $150,000 2.47% 24.74 37.10 49.47 2022 $150,000 2.45% 24.49 36.74 48.98 2023 $0 0% 0 0 0 Average Annual: $24.86 $37.30 $49.73 Average Monthly: $2.07 $3.11 $4.14 Source: Northland Securities,3/28/12