Editor’s Note: Estimates for commercial properties are included below estimates for residential properties.
A parcel tax is a form of property tax assessed at a rate based on a unit of property (parcel) rather than a rate based on the assessed value of the property, which is the standard method of levying property taxes. The funds collected from a Parcel Tax can be used for bricks and mortar, hospital equipment and furnishings and other items needed to conduct the business of the hospital.
The tax (repayment) remains constant throughout the 40 year repayment period.
General Obligation Bond
A general obligation bond (GO bond) is a bond backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued based on the assessed value of property located within the Kern Valley Healthcare District Boundaries (a special district) with the belief that a special district will be able to repay its debt obligation through taxation. Funds collected from a General Obligation Bond can only be used for bricks and mortar and permanent equipment. No furnishings or portable equipment such as blood pressure cuffs, hospital beds, portable x-ray machines cannot be purchased with GO Bond funding.
The yearly tax assessment can fluctuate as property values rise and/or fall.
*Sales taxes and General Revenue bonds are not feasible alternatives to this project. The percentage of sales tax increase needed to cover project costs would jeopardize the ability of businesses within the KVHD boundaries to stay competitive, and the revenue from existing KVHD services will not pay for the cost of construction or equipment.