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6 <br />Additionally, in order to afford additional debt, the County would potentially have to increase the <br />property tax rate 2.82 cents for the new debt service. This projected tax increase would not <br />include 1) any future other operating expenditure increases or 2) any future operating <br />expenditure increases related directly to the new facilities and schools being built. <br />Based on current projects included in the County's Capital Investment Plan and future debt <br />service, the County could afford additional debt of the following after FY2018 — 19: <br />Fiscal <br />Capacity <br />Year <br />2016 <br />$34,762,073 <br />2017 <br />21,359,811 <br />2018 <br />29,089,027 <br />2019 <br />11,405,556 <br />2020 <br />17,808,611 <br />Total <br />$114,425,078 <br />The Board of County Commissioners will need to finalize its decisions regarding outstanding <br />issues such as the need for a future jail and school, and any other potential projects that would <br />be financed with alternative financing and an approved bond referendum. Furthermore, the <br />decision to start an educational campaign and appoint a Capital Needs Advisory Task Force <br />will need to be completed as soon as possible. <br />FINANCIAL IMPACT: There is not a financial impact with the information being provided. <br />There will be a financial impact in future years as decisions are made to proceed with a bond <br />referendum and issuing debt for future County and School projects. All projects that are being <br />considered are currently in the County's Capital Investment Plan. <br />It is currently expected that projects totaling $100 million will be financed with the issuance of <br />general obligation or limited obligation bonds over a period not to exceed 20 years. At current <br />municipal bond interest rates, the total combined debt service is estimated to be $6.1.million <br />annually. This would represent 4.00 cents on the current property tax rate. Based the County <br />current budget and budgeted revenues, the County could afford an additional $25,000,000 of <br />additional general obligation debt capacity for a potential bond referendum if General Fund <br />revenues remain consistent. At current municipal bond interest rates, the total combined debt <br />service for $125 million is estimated to $ 7.6 million annually. This would represent 4.67 cents <br />on the current property tax rate. <br />RECOMMENDATION(S): The Manager recommends that the Board receive the information <br />and provide feedback and direction to staff. <br />