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Tax Rate Statement Measure H

Edith Driscoll, County Auditor-Controller Treasurer-Tax Collector

An election will be held in the County of Santa Cruz, State of California (the "County") on November 6, 2018, to authorize the sale of not to exceed $140,000,000 in general obligation bonds of the County to mitigate the housing crisis by providing affordable local housing for working families and vulnerable populations including veterans, seniors, low- and moderate- income households, persons with disabilities, homeless individuals and families; and supportive housing for individuals suffering from mental health illnesses or substance use disorders. If the bonds are approved, the County expects to sell the bonds in two series over time. Principal and interest on the bonds will be payable from the proceeds of taxes levied upon taxable property in the County. The following information is provided in compliance with Section 9400-9404 of the Elections Code of the State of California.

  1. The best estimate from official sources of the average annual tax rate that would be required to be levied to fund that bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors, is $0.01221 per $100 ($12.21 per $100,000) of assessed valuation. The best estimate of the final fiscal year in which the tax is anticipated to be collected is fiscal year 2055-56.
  2. The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bonds issued, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors, is $0.01677 per $100 ($16.77 per $100,000) of assessed valuation.  The best estimate of the year in which the highest tax rate will apply is 2026-27.
  3. The best estimate from official sources of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold, is approximately $273,768,000.

Voters should note the estimated tax rate is based on the assessed value (not market value) of taxable property on the County’s official tax rolls.  In addition, taxpayers eligible for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower effective tax rate than described above.  Property owners should consult their own property tax bills and tax advisors to determine their property’s assessed value and any applicable tax exemptions.

The attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which amounts are not maximum amounts and are not binding upon the County.  The actual debt service, tax rates and the years in which they will apply may vary from those used to provide the estimates set forth above, due to factors such as variations in the timing of bond sales, the par amount of bonds sold and market interest rates available at the time of each sale, actual assessed valuations over the term of the bonds, and other factors.  The date and amount of bonds sold at any given time will be determined by the County based on the need for project funds and other considerations.  The actual interest rates at which the bonds will be sold will depend on conditions in the bond market at the time of sale.  Actual future assessed valuations will depend upon the amount and value of taxable property within the County as determined by the County Assessor in the annual assessment and the equalization process.