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Davis School District, Special Bond Election
FOR THE DAVIS SCHOOL DISTRICT, UTAH SPECIAL BOND ELECTION
Shall the Board of Education (the "Board") of Davis School District, Utah (the "District"), be authorized to issue General Obligation Bonds in an amount not to exceed Two Hundred Ninety Eight Million Dollars ($298,000,000) (the "Bonds") for the purpose of paying all or a portion of the costs of acquiring land; acquiring, constructing, furnishing and equipping new school facilities, and improving existing facilities; and related improvements; and authorization and issuance of the Bonds; said Bonds to be due and payable in not to exceed twenty-one (21) years from the date of issuance of the Bonds?
Property Tax Cost of Bonds: The District has other outstanding bonds for which a tax decrease would occur upon the retirement of such bonds which may not occur if the Bonds are issued. However, these outstanding bonds reduce over time such that the incremental property tax increase due to the issuance of the Bonds on residences and businesses within the District is expected to have a cumulative increase from current annual levels (after the full $298,000,000 of Bonds is issued) of approximately $7.49 on a $240,000 residence and in the estimated amount of $13.61 on a business property having the same value.
If the Bonds are issued as planned, (and without regard to the existing taxes currently paid for existing bonds that will reduce over time) a property tax to pay debt service on the Bonds will be required over a period of twenty-six (26) years in the estimated amount of $168.84 per year on a $240,000 residence and in the estimated amount of $306.99 per year on a business property having the same value.
The foregoing information is only an estimate and is not a limit on the amount of taxes that the District may be required to levy in order to pay debt service on the Bonds. The District is obligated to levy taxes to the extent provided by law in order to pay the Bonds. The amounts are based on various assumptions and estimates, including estimated debt service on the Bonds and taxable values of property in the District.