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Memorandum
<br />governing body must levy annually a tax upon taxable property in the jurisdiction sufficient to pay
<br />the debt service and interest on the bonds.3
<br />Issuing Bonds for Land Conservaiton
<br />The tables below illustrate the debt service and millage required for bond amounts that could
<br />potentially be issued for land conservation in Indian River County with a 15 -year and 20 -year
<br />maturity. For instance, a countywide bond issue for $50 million payable over 15 years would add
<br />roughly $4 million to the county's annual debt service and cost the typical homeowner an average
<br />of $46 per year in additional property taxes.
<br />Bond Financing Costs for Indian River County
<br />15 -year Bond Issues at 2.5% Interest Rate
<br />2021 Total Taxable Value = $20.5 billion
<br />Annual Mill Levy
<br />Costl Year/
<br />Bond Issue Size Debt Svice Increase
<br />Avg. Residential
<br />$40,000,000 $3,230,658 0.157
<br />$36
<br />$50,000,000 $4,038,323 0.196
<br />$46
<br />$55,000,000 $4,442,155 0.216
<br />$50
<br />$60,000,000 $4,845,987 0.235
<br />$55
<br />$65,000,000 $5,249,820 0.255
<br />$59
<br />$70,000,000 $5,653,652 0.275
<br />$64
<br />Source: Florida Dept. of Revenue Ad Valorem & Tax
<br />Data Book
<br />Average residential property taxable value $232,400.
<br />Bond Financing Costs for Indian River County
<br />20 -year Bond Issues at 2.5% Interest Rate
<br />2021 Total Taxable Value = $20.5 billion
<br />Annual Mill Levy
<br />Cost/ Year/
<br />Bond Issue Size Debt Svice Increase
<br />Avg. Residential
<br />$40,000,000 $2,565,885 0.125
<br />$29
<br />$50,000,000 $3,207,356 0.156
<br />$36
<br />$55,000,000 $3,528,092 0.171
<br />$40
<br />$60,000,000 $3,848,828 0.187
<br />$43
<br />$65,000,000 $4,169,563 0.203
<br />$47
<br />$70,000,000 $4,490,299 0.218
<br />$51
<br />Source: Florida Dept. of Revenue Ad Valorem & Tax
<br />Data Book
<br />Average residential property taxable value $232,400.
<br />TPL's bond cost calculations provide a basic estimate of debt service, tax increase, and cost to
<br />the average homeowner in the community of potential bond issuances for parks and land
<br />conservation. Assumptions include the following: the entire debt amount is issued in the first year
<br />and payments are equal until maturity; 15/20 -year maturity; and 2.5 percent interest rate. The
<br />property tax estimates assume that the jurisdiction would raise property taxes to pay the debt
<br />service on bonds, however other revenue streams may be used. The cost for the average
<br />residential property represents the estimated annual impact of increased property taxes levied to
<br />pay the debt service. The estimates do not take into account growth in the tax base due to new
<br />construction and annexation over the life of the bonds. The jurisdiction's officials, financial
<br />advisors, bond counsel and underwriters would establish the actual terms of any bond.
<br />Enactment procedures
<br />The County Commission must call a referendum election prior to the issuance of bonds.4 There
<br />must be at least 30 days' notice published in the local newspaper of general circulation .5 Bond
<br />elections may be held concurrently with any general or primary election or concurrently on the
<br />day of any election of a county, district, or municipality for any purpose other than the purpose of
<br />voting on such bonds.6 General elections are held on the first Tuesday after the first Monday in
<br />3 3 Chapters 100 and 130, and Section 200.181, Florida Statutes.
<br />4 Section 100.211, F.S.
<br />5 Section 100.342, F.S.
<br />8 Section 100.261, F.S.
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