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SUBJECT: EXPLORATION OF POTENTIAL NEW REVENUE SOURCES - CAPITAL <br />DATE: <br />MAY 15, 2025 <br />Table 5: Potential Funding Scenarios <br />Disclaimer: This high-level analysis is for illustrative purposes only. <br />Debt Issuance <br />Amount <br />10,000,000 <br />20,000,000 <br />30,000,000 <br />40,000,000 <br />50,000,000 <br />60,000,000 <br />70,000,000 <br />Approx. Annual <br />Debt Service <br />$836,793 <br />$1, 673,587 <br />$2,510, 380 <br />$3,347,173 <br />$4,183,967 <br />$5,020,760 <br />$5,857,553 <br />Estimated Mill Levy <br />Increase to Support <br />Annual Debt <br />Service <br />0.8402 <br />1.6804 <br />2.5205 <br />3.3607 <br />4.2009 <br />5.0411 <br />5.8813 <br />Estimated Increase to <br />Annual Property Tax <br />on $840,000 <br />Residence <br />$88 <br />$133 <br />$177 <br />$221 <br />$265 <br />$309 <br />Estimated Sale Tax <br />Rate Increase to <br />Support Annual Debt <br />Service <br />0.135% <br />0.270% <br />0.405% <br />0.540% <br />0.675% <br />0.809% <br />0.944% <br />Assumptions used: 5.5% interest rate, 20-year term, $630M taxable gross sales. <br />Other Considerations — Credit Rating and Debt Limitations <br />City's Bond Rating <br />Estimated <br />Sales Tax <br />on $100 <br />$0.13 <br />$0.27 <br />$0.40 <br />$0.54 <br />$0.67 <br />$0.81 <br />$0.94 <br />On March 31, 2017, Standard & Poor's assigned a rating of AA+ with a stable outlook on <br />the 2017 Recreation Center Limited Tax General Obligation Bonds. This rating is <br />unchanged as of December 31, 2024. <br />Limitations on Debt <br />The State of Colorado limits the amount of general obligation debt the City can issue up <br />to 3 percent of the actual value of all taxable property within the City's corporate limits. <br />The 2024 debt limit was $268.8 million. In contrast, the City currently has approximately <br />$23.5 million in outstanding debt applicable to the debt limit. <br />Other Considerations — Recent and Future Ballot Measures of Local Municipalities <br />The City of Lafayette <br />The City of Lafayette is currently exploring potentially issuing $74M in Bonds for Capital <br />Projects such as Bob L. Burger Recreation Renovation and Expansion ($34M), Civic <br />Center ($34M), and Service Center Renovation and Expansion ($6M) <br />Should they issue debt via a bond measure and property tax increase, they estimate the <br />median homeowner's property tax increase would be -r$296 annually. (Average home <br />value used, $685,500) <br />FINANCE COMMITTEE COMMUNICATION <br />13/107 <br />