No projections for you - follow up

In a previous post, I described how the Mayor’s Office has provided a one-page financial projection showing year-by-year tax revenues that would be captured for the new $2.1 billion stadium. While they provide revenue projections, the Mayor’s Office refuses to provide any year-by-year projections about how that tax money will be spent.

On the sources/revenue side, the one-page projection shows about $2.9 billion in tax dollars collected over 30 years.

On the uses/expenses side, because the administration won’t provide any information, I have taken a stab at illustrating how these tax funds might flow based on what we see in the Term Sheet.

For the bond payments, my spreadsheet allows you to pick an interest rate. I used 3.75%. That rate would use less than half of the available tax revenue projected by the Mayor’s Office - around $1.3 billion - to pay the bonds. The remaining $1.6 billion in tax revenue over 30 years would accumulate to be used for future improvements to the new stadium and other limited uses in the immediate area surrounding the new stadium. These uses of “Excess Financing Revenues” are described on page 12 and 13 of the Term Sheet.

Again, my spreadsheet is an illustration of what I see in the Term Sheet. I don’t have enough information for it to be fully accurate. I find it helpful because it shows how the buckets of tax money described in the Term Sheet will accumulate money over the next three decades.

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For more information about the stadium proposal, I have collected links to the East Bank Stadium Committee web page and all of my posts about the stadium here.