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3 <br /> • Assessed Value <br /> The assessed value growth assumption is important because it is directly linked to the debt <br /> service to assessed value metric discussed above, and it dictates the amount of revenue <br /> that each penny on the property tax rate can generate. <br /> In most years, assessed value grows by approximately 2% annually. However, in years in <br /> which a revaluation occurs, assessed value grows at a much higher rate as all of the real <br /> property in the County is valued as closely as possible to market value. The Department <br /> of Revenue has indicated that current market values are well above the assessed values <br /> that were established in the 2020 revaluation. In the second quarter of 2023, the NC <br /> Department of Revenue estimated that current assessed values are representing <br /> approximately 64.8% of market value. As a result, total assessed value may increase by <br /> as much as 50% when adjusted to market conditions, increasing the value of one penny <br /> from $2,304,674 to $3,476,344 which is reflected in the debt model. In future revaluation <br /> years, the rate of growth is moderated to approximately 11% which is consistent with prior <br /> revaluation years. <br /> • Total General Fund Revenue <br /> Total General Fund Revenue is primarily comprised of property tax (68%) and sales tax <br /> (15.6%). Total property tax collections are calculated by applying a tax rate to total <br /> assessed value which is assumed to grow as described above. Sales tax collections are <br /> assumed to grow at a rate of 4% annually. Additionally, the model assumes that the <br /> operating budget will increase by 3% annually which requires associated revenue growth. <br /> • Current Existing and Planned Resources <br /> The County has already authorized and planned funding in the Capital Investment Plan <br /> (CIP) that would partially address the needs identified in the facility studies. The County <br /> has approximately $202 million in existing and planned tax supported capital investments, <br /> and the School Districts have approximately $148 million in approved and planned funding <br /> to address the Woolpert Scenarios. Funding for school recurring capital and technology <br /> investments are not included in the effort to fund the Woolpert recommendations. <br /> Supported:� County Existing and Planned Tax <br /> County Projects Approved Projects Not Financed $10 million <br /> County Projects—Ten Year CIP $192 million <br /> Total Existing and Planned $202 million <br /> . . n=- <br /> Remaining 2016 Bond Funds $15 million <br /> Remaining Deferred Maintenance Funds $38 million <br /> School Projects—Ten Year CIP $95 million <br /> Total Existing and Planned $148 million <br /> Financing Scenarios <br /> Each of the financing scenarios is evaluated on the basis of tax rate impacts and the resulting <br /> debt service to general fund revenue metric. In order to manage the number of scenarios <br /> presented, each model assumes that existing and planned tax supported borrowing is funded at <br /> the amounts contained in the accepted Capital Investment Plan. <br /> The variable in each of the scenarios is the amount of new funding for County and School facility <br /> needs. As a starting point, the amount of funding for County projects represents either the first <br />