Go Bond for Road Improvement Projects in Palm Bay

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GO Roads - Frequently Asked Questions

What is GO Roads?

GO Roads is a proposed General Obligation Bond series intended to fund projects that will improve local roadways and ancillary facilities within the City of Palm Bay.  The GO Roads program passed on Referendum No. 2: Bonds for Road Improvement Projects in Palm Bay in November 2018.  Since passed, Referendum No. 2 would authorize the City to issue GO Bonds in an amount not to exceed $150,000,000 payable from annual ad valorem taxes.

What is a General Obligation Bond (GO Bond)?

A General Obligation Bond, also known as a GO Bond, is City-issued debt that is financially backed by ad valorem (property) taxes. A GO Bond must be approved by the voters before proceeding. The City’s proposed issuance of the GO Bonds to fund GO Roads was presented on the November 2018 General Election ballot and was passed by the voters. 

Why issue GO Bonds?

GO Bonds will make funding available for needed road improvements and are considered to be the most cost-effective bonds to issue, typically offering the lowest interest rate when compared to other bond types.

How much will the GO Bond cost me as a homeowner?

The GO Bond cost for homeowners will vary based on the Taxable Value Non-School amount reflected on your annual tax bill.

How do I find my home’s Taxable Value Non-School?

Your home’s Taxable Value Non-School is the assessed value of the property less exemptions.  Property owners can determine their “Taxable Value Non-School” by going to the Brevard County Property Appraiser’s website or reviewing their latest tax bill. See image below for example of where to find the Taxable Value Non-School for your home on the property appraiser website.

Taxable Value Non School Example
Click to enlarge image

What are the estimated annual and monthly costs based on Taxable Value Non-School of my home?

The table below shows examples of the potential annual cost to homeowners if the entire $150 million was borrowed at one time assuming a borrowing rate of 4%.

$150 Million GO Bond Issue - 2o Year Maturity - Level Annual Debt Repayment (1) (2)



Estimated Millage Rate: 2.9167

Scenarios of Impact on homes

(Exemptions deducted) (3)

Estimated
Annual Cost

Monthly
Breakdown

(%) Total
# of Properties
in this Range

Annual Tax Levy on $10k Taxable Value Non-School

$29.17

$2.43

46.35%(4)

Annual Tax Levy on $50k Taxable Value Non-School

$145.83

$12.15

26.27%

Annual Tax Levy on $75k Taxable Value Non-School

$218.75

$18.23

8.42%

Annual Tax Levy on $100k Taxable Value Non-School

$291.67

$24.31

6.01%

Annual Tax Levy on $200k Taxable Value Non-School

$583.33

$48.61

12.96%

 

(1) Analysis is preliminary and subject to change assuming a borrowing rate of 4.00% and level annual debt repayment for 20-years.

(2) Actual borrowing cost will be based upon timing of issuance and market conditions at the time the bonds are sold.

(3) Millage levy based upon 2018 assumed total taxable assessed value of $3,984,358,260.

(4) Palm Bay properties based on Brevard County Net Taxable Valuation.

Since the GO Bond referendum is approved, when is the earliest the charge will appear on the tax bill?

November 2019

When will the GO Roads program begin?

The City of Palm Bay is estimating the first wave of identified projects will begin by Summer 2019.

Will the GO Bond eliminate the stormwater assessment?

No.

Are there any exemptions available?

The amount charged to a parcel is based on the Taxable Value Non-School for that parcel. If an institution is wholly tax exempt, they would not pay. Similarly, if a person receives a deduction or exemption in property taxes for any reason, that would reduce their fee.

How will the bonds be paid off?

Issued bonds will be paid for by all current and future taxpayers living in Palm Bay over the life of the bonds.

What can bond funds be used for?

The money received from the bond can only be used for approved items and projects that have been specified in the bond referendum question.

How will GO Roads projects be implemented?

Roads projects will be recommended by City staff and the Infrastructure Advisory and Oversight Board (formerly Local Road Advisory Board) and chosen by the City Council.

Who will manage and have oversight over the funds generated from GO Bond?

The City’s Finance and Procurement departments will manage the day to day oversight of the bond funds and expenditures. The City’s current Infrastructure Advisory and Oversight Board will monitor the project activity. The oversight committee will also provide updates to citizens on spending, status, and outcome of projects.

What does certain language on the ballot mean?

Local roadways – streets and roads owned and maintained by the City of Palm Bay.

Ancillary facilities – things associated with the roadways but not necessarily pavement: for instance, sidewalks/trails, streetlights, and underground pipes related to the roadway.

Eliminating potholes – road improvements may include resurfacing to eliminate potholes and provide safer streets.

Maximum legal rate – the highest rate of interest the City is authorized to borrow money at. The maximum legal rate is determined pursuant to Section 215.84, Florida Statutes.