Why is a 1/2 cent sales tax increase considered good for the city of Madison?
The Qualified School Construction Bond loan is interest free. Normally when the city borrows money there is an interest payment associated with the loan. An actual example are the four school bonds that the city refinanced in July. The city consolidated four bonds into one and refinanced them at the current low rate of 5.13% for 30 years. So, if the city were to try and borrow the $36 million at 5.13% for 30 years, we would need to pay back about $34 million extra in interest for a total payment of $70 million.

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1. Why is a 1/2 cent sales tax increase considered good for the city of Madison?
2. Why is the City Council looking to increase the sales tax by 1/2 cent?
3. Would a property tax be considered instead of a sales tax?
4. How much will the 1/2 cent sales tax increase bring in for the city?
5. Will the 1/2 cent increase cover the reimbursement of the entire loan?
6. If the residents voted in a property tax increase in 2010 why would the sales tax not go away until 2012?
7. Will this sales tax increase be enough to build the 2nd high school?
8. What is the timeline for building the second high school?
9. What is the Qualified School Construction Bond Program?
10. What is 1 mill worth in the City of Madison?
11. How are you going to account for operating cost of the new school?
12. Would you consider a sunset clause for a property tax?
13. Is infrastrucutre costs factored into the school cost projections?
14. Is the construction management company paid a flat fee or a percentage of construction?
15. Is the construction managemer and architect the same firm?
16. How was the 175 square foot per child calculated?
17. Are there community members involved in the definition of the new school?
18. Would a property tax vote be local or state wide?
19. Are there funds set aside for operating reserves within the school system?
20. Does the $36M QSCB go away if we do not capitalize on it?
21. Has the City considered a hybrid sales tax/property tax solution?