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With respect to the estimated property tax impact, it is worth noting that the City has been very aggressive in recent years in defeasing its e�sting debt obligations. As a result, the City is likely to reduce its tax levy dedicated for debt service by appro�mately $200,000 in 2003, followed by an additional tax levy reduction of $300,000 in 2004. This anticipated reduction, along with continued moderate growth in the City's tax base, willlikely offset the additional impact on residential property owners that result from the issuance of a$5 million bond, holding all other factors constant. Bond issue amounts in excess of $5 million willlikely translate into a net increase in taxes. The "net" impact on taxes is shown in Table 2, which factors in the current bond defeasance schedule. As stated above, even if it certain factors exist that will negate the increase in taxes resulting from issuing new debt, any ballot question approving the issuance of general obligation bonds, must still state that voters are approving a tax increase. Through the education process leading up to the election, the City can provide information that gives the voters the true "net" effect. Table 3 shows the estimated revenues that would be generated from a one-half percent local sales tax. It is based on the actual amount of taxable sales generated in Roseville for the fiscal year 1998 the most recent year statistics are available. Taxable sales information on the fiscal year 2000 is expected in April of this year. Although I believe it is prudent to take caution in projecting sales tax collections in future years based on prior year's experience, I believe that we can conservatively estimate that current sales tax revenues are at the same or greater level than is shown in the table. Without excluding any industries, a one-half percent local sales tax will generate approximately $5,595,000 annually. If the City imposed the sales tax for a five-year period, the annual taxes would support debt service on a bond issue of appro�mately $24 million dollars, given current market conditions. As an alternative, if the City imposes a one-fourth percent local sales tax for a ten-year period, the annual taxes would support debt service on a bond issue of approximately $2 1 million. Based on information provided by the Minnesota Department of Revenue and Department of Planning, the average annual amount per capita paid in sales tax within the Metro Area is appro�nately $72 1. If the City implemented a half-cent local sales tax, it is estimated that Roseville residents will pay an additional $10 dollars annually for each person within a given household.