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7 comments:
Anonymous
said...
How much money is in Shrewsbury's cash reserves?
In Crestwood we were sold a new aquatic center and a new police station (never built) that was supposed to be covered by sales tax revenues. Turns out our cash reserves were depleted (mismanaged) so we got a 25 cent property tax increase to bail the city out.
Was there a design for Crestwood's police station? I'm wondering if it was over-designed like most municipal buildings seem to be nowdays, e.g. giant energy-wasting atrium, etc.
Actually there were at least 2 designs. The first design was many times larger than the existing. The second design was at least double the size of the existing.
100s of thousands of dollars spent on designs. And the building was never built!
What is the purpose of building a new poolhouse in Shrewsbury? I know Crestwood's aquatic center was built to attract families to the area. Last time I checked the census figures, children made up a very small percentage of Crestwood. And now Crestwood is issuing more and more nonresident pool passes to generate revenue to cover operating costs.
It's fair to say that a residents of Shrewsbury in 2006 paid about $8.25 for every $100 assessed valuation (this is the appraised value times 19%).
So a $200,000 house paid about $3135.
Tax rates have increased about 10%, compounded annually.
A quick rule of thumb called the "Rule of 72" says to divide 72 by your interest rate percent, and that gives you approximately the number of years it will take your taxes to double.
So 72/10 is about 7 years. In about seven years at the current rate, your property tax will double.
Doing the calculations, at 10% annual growth, your taxes would be about $8131.
That is only ten years. The bonds that Shrewsbury wants to pass are 20-year bonds. In 20 years at current growth rates, your taxes would be about $21,000 every year.
Wow! That sounds like something everyone at City Hall needs to hear. You need a nice graph showing people how much their taxes will continue to climb. Maybe then voters will get it?
I was talking to a guy at work who is going through the same issues in his city. He wonders why it's time to spend more money if sales tax revenue is so critically low?
The Shrewsbury ballot issues will cost $2 million in today's money -- that's 300 of today's dollars for every man, woman, and child in the city, just for these frivolous additions.
Of course by the time interest is paid off, just on these items, it will be closer to $1000 tax burden for each and every person.
7 comments:
How much money is in Shrewsbury's cash reserves?
In Crestwood we were sold a new aquatic center and a new police station (never built) that was supposed to be covered by sales tax revenues. Turns out our cash reserves were depleted (mismanaged) so we got a 25 cent property tax increase to bail the city out.
That is very interesting.
I think the reserves are about $1M.
Was there a design for Crestwood's police station? I'm wondering if it was over-designed like most municipal buildings seem to be nowdays, e.g. giant energy-wasting atrium, etc.
Actually there were at least 2 designs. The first design was many times larger than the existing. The second design was at least double the size of the existing.
100s of thousands of dollars spent on designs. And the building was never built!
What is the purpose of building a new poolhouse in Shrewsbury? I know Crestwood's aquatic center was built to attract families to the area. Last time I checked the census figures, children made up a very small percentage of Crestwood. And now Crestwood is issuing more and more nonresident pool passes to generate revenue to cover operating costs.
What will my real estate taxes be in 10yrs in Shrewsbury if there are no tax increases and only county assessment increases? On a $200,000 house.
It's fair to say that a residents of Shrewsbury in 2006 paid about $8.25 for every $100 assessed valuation (this is the appraised value times 19%).
So a $200,000 house paid about $3135.
Tax rates have increased about 10%, compounded annually.
A quick rule of thumb called the "Rule of 72" says to divide 72 by your interest rate percent, and that gives you approximately the number of years it will take your taxes to double.
So 72/10 is about 7 years. In about seven years at the current rate, your property tax will double.
Doing the calculations, at 10% annual growth, your taxes would be about $8131.
That is only ten years. The bonds that Shrewsbury wants to pass are 20-year bonds. In 20 years at current growth rates, your taxes would be about $21,000 every year.
How does that sound?
Wow! That sounds like something everyone at City Hall needs to hear. You need a nice graph showing people how much their taxes will continue to climb. Maybe then voters will get it?
I was talking to a guy at work who is going through the same issues in his city. He wonders why it's time to spend more money if sales tax revenue is so critically low?
The Shrewsbury ballot issues will cost $2 million in today's money -- that's 300 of today's dollars for every man, woman, and child in the city, just for these frivolous additions.
Of course by the time interest is paid off, just on these items, it will be closer to $1000 tax burden for each and every person.
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