Agenda - 05-26-1992 - Laserfiche WebLink

Browse Search

Present Value = Future Amount n (1 + i) where n is the number of years between the present.and when the amount is to be received, and i is the interest rate. Rather than the calculations above, the present value table shown in Table 12 provides "multipliers" or "factors" that may be multiplied by the annual payment to arrive at the present value of a stream of payments. In the example above, in which the interest rate is seven percent and the term is six years, the present value factor or multiplier is 4.76654. This means that the annual payment of $263 would be multiplied by 4.76654 to arrive at present value. Thus, the present value of $263 per year for six years would be $1,253. From Table 9, the capital cost per single- family unit for new schools is $5,225. The net cost for new schools would thus be $3,972, the total capital cost minus the present value of payments toward property taxes for debt service and recurring.capital. In order.'to calculate the credit due for debt service payments, it is necessary to have some basis for estimating the value of different types of dwelling units in Orange County. Using 1990 Census information from the N.C. State Data Center, it is - possible to calculate the average value of owner occupied homes, by housing type. This information is shown in Table 13. By multiplying that portion of the tax rate [$.1938 per $100 valuation] to be used for debt service and recurring capital by the average value of each housing type, it is possible to identify the amount of credit to be given to each type of housing unit. These calculations are shown on Table 14. It should be noted that due to data limitations, average values could not be calculated for all housing types. In the calculations in Table 14, the average value of two unit structures [$147,800] was assigned to the "Duplex, Triplex, Quadplex" category and the average value of three or more unit structures [$69,867] was assigned to the "Garden Apartment" category. sales Tax Rid venues. Owners of undeveloped land do not pay sales taxes on that land. However, they do pay property taxes. If property taxes have financed facilities, even in part, local governments should determine the value of those payments [see discussion of "Property Tax Revenues" above]. On the other hand, if payments for facilities came from State sales tax rebates, they probably cannot be attributed.to vacant land prior to development. Orange County offers a somewhat different situation. In 1984, the Board of County Commissioners adopted a one -half cent local option sales tax based on the provisions of Article 40 of G.S. 105. Although the statute indicated that 40 percent of the proceeds from the sales tax could be used to finance public school capital projects and /or retire debt on such projects carried out within the five preceding years, Orange County elected to use 80 percent of the proceeds for these purposes. Two years later, in 1986, another 1 i� 11 Page - 11 1