Can you please help with calculations?

9. Explain the process of calculating the millage needed to fund a new recreation center

or high school facility.

To fund a new facility, they need to create a estimate on average costs, along with ideas for

how to fund it to show to those investing and donating.

10. The debt service schedules for Fenton, Missouri, are found in Exhibits 13.6 and 13.7.

In Exhibit 13.7, why does the rate of interest that the city pays increase over time? Why

does the city make two interest payments and one principal payment, in most years?

The rate of interest that the city pays increases over time because they refinanced the debt to

have a lower interest rate. They make 2 interest payments and 1 principal payment because it

allows the number of payment years to decrease.

11. How does state tax law affect the financing of parks and recreation facilities and

programs?

State law forces cities and counties to reduce expenses, which leads to major cuts in parks and

recreation and leads to them having to develop alternative sources of revenue.

12. For the funding of projects, why are municipalities moving from the use of general

obligation bonds to revenue bonds, PFA bonds, and certificates of participation?

Because no public referendum is needed to issue these bonds, along with no taxing authority.

13. How can an individual's experiences working in professional sport finance benefit a

park and recreation agency?

Because they have more experience with financial management, especially considering sport

finance is a large and difficult task.

14. What problems might arise in the negotiation of a joint use agreement?

Some have issued with confusing terminology, or it might not be applicable to single

organizations, and more.

Practice Problems:

You are tasked with calculating the property tax needed to fund construction and

operation of a $22.5 million complex. The facility's annual operating budget is forecast at

$3.6 million, to be covered by revenues from programs offered at the facility. A 30-year

general obligation bond with a rate of 5.5% will be issued to pay for the facility's

construction costs. The net assessed value of property in the municipality is $725

million.

1. Calculate the amount that must be set aside each year to meet the bond's principal and

interest obligations over 30 years.

2. Calculate the additional millage required to cover the project's debt service.

3. For an owner of property with a total assessed value of $15,000, by how much will

his/her property tax increase?