The cost of construction for the proposed bond issue will be financed by several means: property tax, income surtax, city funds and private contributions.
The cost of the bond will be paid back over a 20-year period.
* Impact on property taxes
The district's levy rate for 2001-2002 is $11.87 per $1,000 of taxable valuation. The bond issue would increase the levy rate by approximately $1.49 per $1,000 of taxable valuation.
Based upon this information, the typical property owner would experience the following tax increases for a residential or farm property:
- The owner of a home with an assessed valuation of $50,000 would see a property tax increase of approximately $42 per year.
- The owner of a home with an assessed value of $75,000 would see a property tax increase of approximately $63 per year.
- An individual owning 80 acres of land assessed at $950 per acre would see see an increase in property taxes of about $112 per year.
Also, property taxes will gradually be reduced in the next few years because of the presence of the wind towers in the district.
The towers began to impact property taxes in fiscal year 2002, and by 2003 taxes will be about $.40 per $1,000 less than they would be if the towers were not here.
The estimated reduction from the wind towers is approximately $1.56 per $1,000 by fiscal year 2008.
* Income surtax
The income surtax will be increased from the current level of two percent to eight percent. The board of education has committed to doing this to reduce the property tax increases due to the bond issue.
This is a tax based on one's Iowa income tax and not on that person's income. For example, for each $1,000 of Iowa income tax, the surcharge would increase taxes from $20 to $80.
* City funds
The City of Alta has pledged up to $125,000 in public funds to match funds raised privately.
The funds will be devoted to the cost of the community use areas, which would be the media center/library, computer lab and gym/wellness center.
To date, $40,000 in private contributions has been pledged to the Alta Community Education Foundation to support the construction of these areas.