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

Your comment will appear after moderation before publishing,

Thank you for your comments.Any comment that could be considered slanderous or includes unacceptable language will be removed.

Thank you for participating and making your opinions known.