We’ve had a team of financial experts look at the City Budget (public document), and we believe there will be a $125M to $200M surplus in the Preserve Fund by the end of the tax lifetime in 2034.
Here is the projected REVENUE from the Preserve Tax paid as part of our City sales taxes.
2020 Revenue $40.9 Million
2021 Revenue $42.1 Million
2022 Revenue $43.4 Million
And here are the PAYMENTS on the debt. Its like your mortgage payment. See it decreasing relative to income, year-after-year after 2020. Annual Debt Service Expense for Preserve Bonds (principal and interest combined) is less than $33 Million by 2020, but Preserve Tax Receipts are $43 Million.
Here is the total Preserve Debt year-to-year assuming MINIMUM payments of about $33 M each year. Its like what you owe on your house, dropping $20 Million a year without the $10 Million surplus.
2018: $328 Million
2019: $307 Million
2020: $286 Million
2021: $264 Million
The current schedule will leave us $125-$200 M in surplus at the end of the bond life. Alternatively, we could pay off the debt early, perhaps by 2027, and stop taxing ourselves. We are taxing ourselves through 2034 with 8+ YEARS of Tax Receipts left to collect under the 2nd tranche of the Preserve Tax funds.
We are 90% complete with the intended land purchases in the Preserve. For three years, Virginia Korte has been arguing that we should cease land purchases. Kathy Littlefield has challenged this position since 2014. But, what do we do with all this surplus money?
In 2017-18 the City has budgeted Capital Improvement Projects of $47,858,000 for the Preserve. It looks like Korte, Milhaven, David Smith know exactly what they plan to do with it.