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
|
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.
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