Financial Options to Fund Capital Needs

 

The Fulton County Board of Education reviewed all of its options for handling overcrowding, preparing for state mandated class-size reduction, and financing other capital needs.  The options allowed by law are listed below. The School Board chose to call for a one-cent sales tax vote on March 20, 2007.

Proceeds	Explanation
Bonds	Similar to a home mortgage, repayment of bonds requires large amounts of interest. Millage rate would increase to pay bond debt.
Sales Tax	This is a pay-as-you-go plan with no interest. Consumers pay one cent per dollar for five years on items purchased in Fulton County. This option allows the School Board to continue to provide millage reductions in debt service from previous bonds.
Millage Rate Increase	Requires taxing at the maximum millage allowed by law per year for five years without providing for other unanticipated needs.

 

Why the School Board chose to continue the

sales tax option:

Property owners get relief from being the primary source of funds for school construction.

Everyone who lives, works, visits, or shops in Fulton County helps pay for school construction.

Unlike bonds, sales tax revenue does not incur interest charges.

It is a pay-as-you-go approach. Long-term debt is reduced and property taxes can be lowered.

It is already in place and has proven to be a successful funding option.

 

 

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