Practice Problems

You are tasked with calculating the property tax needed to fund construction and operation of a $$22\mathrm{.}5$ million complex. The facility's annual operating budget is forecast at $$3\mathrm{.}6$ million, to be covered by revenues from programs offered at the facility. A $30-$year general obligation bond with a rate of $5\mathrm{.}5\%$ will be issued to pay for the facility's construction costs. The net assessed value of property in the municipality is $$725$ million.

Calculate the amount that must be set aside each year to meet the bond's principal and interest obligations over $30$ years.

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

For an owner of property with a total assessed value of $$15,000,$ by how much will his$/$her property tax increase?