Question 2 - Education Capital Improvements Sales And Use Tax

Shall The Consolidated School District of Aiken County, South Carolina (the "School District"), reimpose a special one percent education capital improvement sales and use tax (the "Tax") in Aiken County (the "County") for ten years with the revenue of the Tax to be used by the School District as follows: 1. 10% of the revenue from the Tax must be used to reduce property taxes by providing a credit against existing debt service millage within Aiken County on general obligation bonds of the School District; 2. 90% of the available revenue from the Tax after deducting 10% of the revenue identified in (1) above, must be used to provide a credit against millage imposed in the County for debt service as follows: (a) by the School District (in the event a companion question on a dependent bond referendum should be unsuccessful) for retiring or defeasing existing or future eight percent bonded indebtedness during the imposition of the Tax; or (b) by the School District for debt service on one or more general obligation bond issue(s) not to exceed in the aggregate $285,000,000, which shall be issued by the School District to facilitate construction and funding flexibility in an effort to lower construction costs, the proceeds of such bonds to be used to pay some or all of the costs of renovations and additions at South Aiken High School, Midland Valley High School, Silver Bluff High School and North Augusta Middle School; and construction of a new elementary school in Area 3 including, if necessary, the cost of purchasing land (the "Projects); provided that the total debt service on such general obligation bonds shall not exceed 90% of the available revenue received from the Tax; and (c) If all of the Projects have been completed or if all funding necessary for completion of the Projects has been provided, and if additional Tax revenue is available, any one or more of the following projects may be undertaken: repair or replacement of roofing at various facilities in the School District; construction of security vestibule and door lock upgrades at various facilities in the School District; classroom additions at Byrd Elementary School; replacement of Greendale Elementary School; and classroom additions at Gloverville Elementary School? 3. The balance of the revenue from the Tax must be used to provide additional property tax reductions or to pay directly or indirectly a portion of the capital costs of the projects identified above. All revenue received by the School District from the Tax will be used to reduce property taxes needed to pay debt service on School District bonds or to directly pay costs of education capital improvements projects of the School District identified herein.