15 ATTACHMENT - Laserfiche WebLink

Maximum Tax Rate ($532,179) ($430,264) Total Total Fiscal Year Per Tax Per Tax Per Funds on Program Gap Gap Funds $100,000 of Average Median Hand2 Costs' Financin Needed AV° AVSFS AVSF6 Pro rams $105.9M $158.9M $53M 2010-11FY $19 $101 $82 ' Program includes Bernal Community Pazk, Open Space, Youth Center, Community Center and Civic Arts Center. A complete description of each project and the basis for estimates of the capital costs and the respective increase in operating and maintenance costs is contained in Appendix A. z Includes an increase in transient occupancy tax that must be available in the 2008-09FY. ' Includes all capital costs and increases in operating and maintenance costs for the projects. Maximum Tax Rate is per $100,000 of assessed valuation. s Total annual tax is based on the average assessed value per single family home in Pleasanton ($532,179) as calculated based on the 2006/07FY assessed valuations. 6 Total annual tax is based on the median assessed value per single family home in Pleasanton ($430,264) as calculated based on the 2006/07FY assessed valuations. It should also be noted that at the highest tax rate of $19 per $100,000 per assessed valuation and based on the assessed valuations of residential properties in Pleasanton in 2006/07FY, 90% of the residential properties in the City will pay less than $190 per year in additional taxes for the funding of the Program. Also, with the phasing of the issuance of bonds, the tax will be less than $190 per year for a majority of the period that the bonds are outstanding. Appendix B, Table 5 presents the Financing Plan with the City's existing revenue stream, funds from donations, an increase in development fees, an increase in the transient occupancy tax by the voters from 8% to 12% and the passage of general obligation bonds in the amount of $53M. By doing this, 100% of the Program is completed during the seventeen year period. In order to do this the voters (67%) must agree to tax themselves. The maximum tax rate per $100,000 of assessed valuation would be $19. The average home owner in Pleasanton would pay an annual tax of $69 based on an assessed valuation of $532,179. Finally, Appendix C, Table 6 presents the tax rates for the general obligation bond issue over the thirty years that the bonds would be outstanding. Certificates of Participation Certificates of participation are a subset of the general financing technique known as lease/purchase financing. Within the tax-exempt realm alease/purchase or installment sale obligation is an arrangement whereupon a municipality in consideration for the use of equipment and/or real property contracts to make lease payments over a specified period of time. At the conclusion of this contract, the lessee (municipality) has the right to purchase the leased capital items at a nominal amount (usually $1) or ownership may have already transferred by reason of an installment sale contract. If the financing is structured correctly to meet the requirements established by the federal government, the lease payments to the lessor are exempt from federal and state income taxation. The lessor, therefore, requires a lower rate of return form the financial contract (lease); lowering the interest costs to the lessee. The City has now, through this financial instrument, accessed the tax-exempt debt market. The major advantage of a certificate of participation financing mechanism is that it does not require voter approval. In California in a city (such as Pleasanton), the legislative body (i.e., City Council) is empowered to enter into lease/purchase financings. 9