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36 <br /> Commissioner Greene asked if they are talking about $100 million over ten years, where <br /> are the additional funds for the $6.4 million this year. <br /> Kirk Vaughn said they are not doing the full $10 million this year. She said they are doing <br /> the full $10 million starting next year. He said in years 6-10 there is an incremental increase and <br /> likely wouldn't push the county towards a tax rate increase because it is less than the natural <br /> growth they have planned in revenue. <br /> Commissioner Portie-Ascott asked if it is the 1.07 cents plus the 2.42 cents. <br /> Kirk Vaughn said yes and that between the pay go and the debt they would anticipate a <br /> 3.5 cent tax increase before they look at operations. <br /> Vice-Chair Hamilton noted that the debt service is for all capital spending not just the <br /> school capital spending. <br /> Kirk Vaughn said that is correct. He said that it includes items that have already been <br /> approved in addition to the CIP. He said there is a larger than usual borrowing in this year and <br /> they will start paying principal payments in 2027. <br /> Commissioner McKee said the rates do not go down and remain cumulative from the <br /> starting point. <br /> Commissioner Carter asked if the Board would not see a debt tax rate equivalent for the <br /> $6 million bond debt. <br /> Kirk Vaughn said no because that is for planning, and they don't borrow for planning <br /> because there is no hard cost at that time. He said they wait until construction has occurred <br /> and they borrow for planning and construction together so it would be in fiscal year 2026-27. He <br /> said they will start making interest payments in fiscal year 2027-28. He said that in capital there <br /> is a lag between making decisions and paying. <br /> Commissioner McKee said that interest does not kick in until after they take their first <br /> draft of the borrowed funds. <br /> Commissioner Carter asked if the debt tax rate equivalent is an estimate. <br /> Kirk Vaughn said yes, and that in a 10-year debt model there are a lot of assumptions <br /> made. He said they try to be more conservative than not. He said they will often be more <br /> conservative than what might end up happening. <br /> Chair Bedford said that is why they went with $100,000 of pay-go because that provides <br /> flexibility every year for the next ten years. She said this was intentional. <br /> Commissioner McKee said this is all before operating. He said there will be additional <br /> taxes if they have to increase spending. <br />