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7 <br /> 1 One item covered by the resolution approving the referendum details is the approval of the specific <br /> 2 question that will be on the ballot for the voters. As has been discussed with the Board, most of <br /> 3 the form of the ballot question is set by law, and there is no meaningful leeway to simplify or <br /> 4 shorten the question. The resolution also directs staff to complete certain remaining newspaper <br /> 5 publications the law requires. <br /> 6 <br /> 7 The Board must complete its formal authorization process before early August to allow the County <br /> 8 Board of Elections adequate time for ballot printing and other organizational matters for the <br /> 9 referendum.At this point, the Board can reduce the bond amount, but the Board cannot increase <br /> 10 the amount unless the process is re-started. <br /> 11 <br /> 12 SECURITY FOR BOND REPAYMENT: A general obligation bond, as proposed, is not secured by <br /> 13 any physical collateral. Instead, the County promises to levy property taxes in whatever amount <br /> 14 is necessary to provide for repaying the bonds, including the interest on the money borrowed <br /> 15 through the bonds. <br /> 16 <br /> 17 Gary Donaldson, Chief Financial Officer, said that the action requested was for the Board <br /> 18 to adopt the bond order and resolution. He reviewed the background information included in the <br /> 19 agenda abstract. <br /> 20 Commissioner McKee said he had questions about the total cost to taxpayers. He said it <br /> 21 will be an 8.8 cent tax rate increase overall. He said in 2034, debt service payments will be about <br /> 22 $78.5 million. He said there will be a $30 million gap between what the tax rate increase will <br /> 23 generate and what will need to be paid. He asked Gary Donaldson to elaborate on the gap and <br /> 24 how revaluation will affect the gap. <br /> 25 Gary Donaldson said maximum debt service is $78.5 million. He said that the existing tax <br /> 26 rate will address the existing debt service. He said during the next revaluation, they have <br /> 27 assumed significant appreciation in the assessed value. He said considering the revenue neutral <br /> 28 rate, it will take care of existing debt, plus 8.8 cents on top of that for the new debt service. <br /> 29 Commissioner McKee said that the impact of the next revaluation will be extreme on some <br /> 30 lower income residents. He said is concerned with the revaluation coming up and the impact on <br /> 31 individual homeowners. He said that the gap in the middle confused him. He said that the peak <br /> 32 is about 40% of the total budget in the current year. He said that they are doing more than just <br /> 33 the bond, and the impact will be significant on residents. He said this does not account for any <br /> 34 additional spending by future boards. He said he wanted everyone to be aware of the implications <br /> 35 of their decisions. He said he hopes the schools will find a way to minimize costs. <br /> 36 <br /> 37 A motion was made by Commissioner Hamilton, seconded by Commissioner Fowler, to <br /> 38 approve the Bond Order and the Resolution approving referendum details in the forms presented. <br /> 39 <br /> 40 VOTE: UNANIMOUS <br /> 41 <br /> 42 Commissioner Portie-Ascott had a question about a chart in the agenda packet: <br />