"The

PFA leasing option follows the matching principle

of finance. The payments for the asset will be

spread over the period of time when benefits are

being received from the project. Any residents

moving into the county over the next 30 years

will be responsible for paying their fair share

of the project's costs.

"As

the county is required to use the maintenance and

operation tax base to make the annual lease

payments to the PFA, the county's taxpayers will

receive the property tax reduction benefits of

the state of Georgia's recent property tax relief

initiative. This benefit is not available with

the SPLOST or general obligation bond.

"The

M&O taxes being paid towards the project can

be used as part of the taxpayer's itemized Form

1040 deductions to offset or supplant a portion

of their federal and state tax burden. This

benefit is not available with the special purpose

local option sales tax.

"The

PFA financing option provides immediate

guaranteed funding for the project. The sunset

provisions of the SPLOST limit the amount of

collections to a five-year period. A general

downturn in the economy or other unforeseen event

(such as the impact of Internet sales on sales

tax revenue) could reduce tax revenue,

necessitating the need to obtain more costly

funding and/or jeopardizing the completion of the

jail/courthouse project.

"Additionally,

Fayette County voters must approve the first two

funding options, the SPLOST and General

Obligation Bond. If, for any reason, the voters

do not approve a SPLOST (as they did with the

recent school board requested SPLOST), the county

will be unable by law to move forward on the

project until the next voting cycle in two years.

"If

the project is postponed for an additional two

years, it is probable that the federal government

would mandate the building of a temporary

facility to relieve overcrowding, require the

early release of prisoners, or require prisoners

to be housed in other counties at a prohibitive

cost," says the resolution.

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