From the City's reply to my questions
4. "Without knowing precisely what you mean by "overruns", the capital cost of the building is $32,435,708. The Library is committed, by contractual agreement, to financing $9 million of that cost , and the City , the remaining $23.4 million. totalling $32.4 million. Therefore, the City portion of $23.4 million is well within the $30 million borrowing limit."
My Response: (Quit blowing smoke )
The City's figures of a $917,631 Net Debt Servicing Financing is the first schedule on left. It is based on a financing of $20,756,000. ($30,000,000-$9,244,000 for Library). This is the figure that their $55.86 as the Estimated Maximum Annual Tax for a $400,000 property is based upon.
The second schedule is for a financing of $23.4 million at the same interest rate and for the same term and the Net Debt Servicing Financing is $1,110,675. The difference of $193,044 (21.037%) would raise the Estimated Maximum Annual Tax for a $400,000 property to $67.61.
This is accepting the rental income as being realistic and attainable which I do not accept. I post this reply to point 4 of the City's reply to me as one of "those handful of folks who love to crunch numbers "and 'do so for their own amusement.'
The City has screwed up its own basic numbers that they have used in their ads. There numbers are based on a $20.756 million financing not a $23.4 million dollar financing. Or their reply to me on question 4 is wrong and the difference has to be made up from asset sales, reserves, taxes or possible future casino revenues ?
If nothing else this reply does indicate that it is possible that this project could be financed by the $30 million borrowing power of this authorization for the city and the Library financing their $9 million. That seems to correspond to a possible $39 million dollar project that a maverick councilor and a prominent local accountant referred to.
I based my original cheat sheet on their original number based on a $30 million cost less the library coming in with their $9.244 million. I questioned where the extra $2.436 million was coming from but until this answer assumed it was coming from reserves, land sales etc. I will have to adjust my cheat sheet and increase all my numbers by 21.037%
I will post a new revised cheatsheet after tomorrow's Radio Broadcast on 107.5 KISSFM at 11 AM. Hopefully I will hear realistic and a full range of numbers presented by the City Reps. that will make any more nagging and badgering from me unnecessary.
1 comment:
The shortfall may be the cost of furnishing the new Civic offices with office furniture and appurtenances adequate to the station of the bureaucrats that will inhabit this expensive space. It remains to be seen if they will furnish this space as lavishly as Mr. Christenson did with his recent upgrades in Victoria. It is still very disappointing that these fat cats are hiding behind the motherhood issues of the Library, the art gallery and the RCMP to house themselves in new digs.
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