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10-year vs 20-year $10M scenarios show trade-offs for Brookings-Harbor taxpayers
Summary
Piper Sandler modeled $10 million bond scenarios: a 10-year term would carry an estimated levy around $0.44 per $1,000 of assessed value (higher annual cost, lower total interest), while a 20-year term would lower annual levy (~$0.27) but raise total interest costs.
Piper Sandler staff presented two $10 million example scenarios to illustrate trade-offs between term length and taxpayer impacts. The 10-year example had an estimated average levy of about $0.44 per $1,000 of assessed value (higher annual payment but lower overall interest), while the 20-year example reduced the estimated levy to about $0.27 per $1,000 but increased total interest over the life of the bonds.
David Williams noted the firm models include a 2% interest-rate cushion that may be reduced closer to an election date, which could either increase project capacity for the same levy or slightly lower the levy while maintaining project scope. He also reviewed BHSD's tax base: real market value just over $4 billion and assessed value approximately $2.5 billion (about 60% of RMV), which informs levy-rate estimates.
