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St. Anthony Public Facilities Funding The other major difference between the bonds is that debt service for voter approved General Obligation bonds is distributed on the basis of market value of taxable property. Lease Revenue bonds debt service is distributed on the basis of tax capacity. Because of the current tax structure, this means that commercial properties would pay slightly more than residential property for Lease Revenue Bonds. Independent of these technical issues, the most significant difference between the lease revenue and voter approved general obligation is the public expectation of the need to vote on expenditures of this nature. Elected officials must carefully assess the evaluation of"political risk" of financing facilities with lease revenue when there is community expectation for voter approval. Impacts Estimated impacts for property owners are shown in the tables below. The values used to generate the tax impacts are the actual pay 2003 tax capacities. Table I The example below shows the impact on a$200,000 residence. Lease Lease G.O. Revenue G. O. Revenue $5 million $5 million $1 million $1 million Market Value $200,000 $200,000 $200,000 $200,000 Tax capacity 2,000 2,000 2,000 2,000 City tax rate-actual 2003 .461039 .461039 .461039 .461039 Property taxes $922.00 $922.00 $922.00 $922.00 Debt levy-proposed issue only $171.00 $180.00 $35.00 $37.00 Total taxes-before decertification $1,093.00 $1,102.00 $957.00 $959.00 Impact of decerti Kenzie TIF District 69.00 71.00 88.00 62.00 Total taxes-after decertification $1,024.00 $1,031.00 $869.00 897.00 Net change in taxes due to bond issue if district is decertified 102.00 109.00 (53.00) The table above is the estimated taxes on a residential property for the city portion only and does not include other taxing jurisdictions or any applicable credits. Page 2 of 5