Wednesday, February 20, 2013

Nanaimo Asset Management Plan Funding


Asset Management Assessment Explained

The other night when city council adopted the $851,000,000.00 financial plan the question was raised as to how a 1% assessment for asset management which totals $871,594.00 in year one can multiply to the point it produces nearly $14,000,000.00 in the fifth year.

Some members of council questioned it, thinking that 5 X $871,594 does not equal $13,967,255. Finance Director Mr. Brian Clemens was good enough to explain it by providing the following table which shows the accumulated effect of the 1% assessment. 

He further explained "The current asset management plan does not require any tax increases after 2017, so thereafter we will collect $4,819,220  each year for asset management.  We will be regularly re-evaluating the asset management plan and the funding requirements on a regular basis, so I expect that there will be changes in the future."


2013
2014
2015
2016
2017
Total
1%  2013
871,594
871,594
871,594
871,594
871,594
4,357,970
1% 2014

906,399
906,399
906,399
906,399
3,625,596
1% 2015


965,433
965,433
965,433
2,896,299
1% 2016



1,011,596
1,011,596
2,023,192
1% 2017




1,064,198
1,064,198

871,594
1,777,993
2,743,426
3,755,022
4,819,220
13,967,255

allvoices

1 comment:

  1. unbelieveable, they are using the compound interest formula to calculate their requirements and our taxes. Is there a council member that is conscious, or a boundry that the city staff members will not find a way to cross.

    ReplyDelete

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