Bond funding would give the District the upfront money to begin work on these flood safety projects sooner. Without bond funding, the District would have to wait until it has saved enough cash from tax revenue to pay for the projects one by one.
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The District utilizes most of its current maximum two-cent tax rate to incrementally raise capital funds. Less than a third of the two-cent tax rate is required for ongoing Maintenance & Operations (M&O). The existing two-cent tax is currently projected to support debt payments for over $100 million of bond debt. It is also currently projected that the bond debt payments coupled with the M&O costs would not require the full two cents.
If the issuance of bonds are not approved by voters, revenue from the two-cent property tax can still be used to build flood safety projects. However, the lack of bond funds will affect the order and rate at which the projects can be completed.
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There are some costs associated with selling bonds such as interest payments. However, with quicker construction periods, the projects are less likely to be subject to additional costs from deferred rehabilitation and inflation in construction and right-of-way costs.