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02 1. <br /> FUNDING ALTERNATIVES FOR LONG RANGE SCHOOL CAPITAL <br /> I. Pay-As-You-Go <br /> (See School Capital Reserve Fund Long Range Plan and Budget) <br /> II. Bond Referendum <br /> A. Uncertainty In Bond Market <br /> 1. Bill 3838 (Tax Reform Bill) <br /> a. General Purpose Bonds could lose tax-exempt status <br /> b. Effective date uncertain <br /> 1. Maybe January 1, 1986 or September 1, 1986 <br /> c. Has passed in the House and is now in the Senate <br /> B. Interest Rate Today - Approximately 7.0% <br /> C. Total Debt Service Approximately Twice the Amount Borrowed <br /> III. Advalorem Tax Increase <br /> A. Presently @ 2 'l/2G /$100 <br /> B. Scheduled @ 3 /$100 for 1986-87 <br /> C. Extend 3 /$100 <br /> Assuming 5% Growth In Base Each Year <br /> 87-88 88-89 89-90 90-91 91-92 92-93 <br /> $728,000 $765,000 $802,000 $842,000 $884,000 $929,000 <br /> IV. Additional 1/2C Sales Tax <br /> A. Senate Bill 431 <br /> 1. Levy additional l/2G sales tax <br /> 2. Dedicated for school construction, renovation, retirement of <br /> school bonds previously issued, etc. <br /> 3. Funds held by state and grants made to counties <br /> 4. County matches grant with $1 for each $3.50 of grant funds <br /> 5. Allocated to each county based on ADM <br />