Golden Gate Point
Association, Inc.
136 Golden Gate Point #702
Sarasota, Florida 34236
ggp@goldengatepoint.net
Golden Gate Point:
StreetScape Project:
Park Discussion:
History of GGP:
(updated 8/28/08)
Summary:
This years Trim notice has a line item of 1.995 mills for streetscape improvements. That line item is now being revised down by the city. Your tax bill, due out November 2008 will now reflect 0.7506 mills. (or about 37% of what was published)
That is only for this year.
Next year (with the project completed, and full payment required) we're estimating the tax rate for the project to be about 1.3. But that's "our" best estimate, not the cities estimate. Costs are still a moving target, and values are certaintly moving. A more detailed "discussion" follows:
Taxes:
When we started this streetscape project (about 5 years ago) we guessed that the project would cost $2-3 million and would cost us in taxes a millage rate of about 1.1. Trying to estimate costs, total property values that are moving, and then calculate a millage, is difficult.
As the project became an official city project, the budget grew to $5.8 million, which we as a neighborhood voted on and approved, in December 2005. Back then property values were trending upward, which we thought, that might absorb much of the revised budget.
Things of course have changed.
The great news, the bids for the project came in about $2 million under budget. However property values are now down, not up.
The lower costs obviously results in a lower amount we have to pay back. Values being down, actually increases the millage rate, as there is a fixed cost to repay.
Originally the financing plan was to have the city issue a bond, of 25 years. As it transpired in the unusual economic times were in, it was better for us to take down a loan, from a large bank. The loan is only 20 year, making for a slightly higher principal payment, but the rate is only 3.9%. Tax free bonding was going to run close to 5%! The better rate, but shorter term nearly offset each other.
Last spring the city secured our loan, and received the money, and has the $5.8m in our account. For the last year they have fronting us the design costs of the engineering, of about $550,000. Last spring, upon receipt of the loan, they paid themselves back, so we’ve spend some of “our” money.
This October the work starts, and we’ll start spending our money monthly. At some point when the exact totals are known, the city will “return” about $2m that we don’t need, and the loan will get recalculated as to it’s annual payments.
The city, when they prepared the Trim notice for this year (November 2008) did not have our bids or budget, and had to send it out at the maximum, based upon the 5.8 “bond” resulting in a millage of 1.9956mills. Next year, they need to repay the initial interest, and 1/20 of principal. We’re earning interest on the bulk of the funds this year, offsetting much of the interest. There is also a cash contribution from the city for deferred work, that is going to be used to offset some of the principal for this initial year.
The city is recasting our millage for the November 2008 tax bill at a millage of 0.7506, as opposed to what’s was in our current Trim notice of 1.9956. (or about 37% of what was initially published).
Next year with the work completed, the excess monies returned, the loan recalculated, and the annual maintenance factored in, the millage "should" be about 1.3mills. Again, that's our best estimate.
Much of our cost are now known. We know the design cost, and the construction cost. However, there are two cost variables affecting next years millage, that we don’t yet know. First there is a contingency for “unknowns” in our budget. Second the annual maintenance cost are not know yet.
Finally, the “moving” property values affect the millage calculation. This year the total property values moved down, actually raising the millage. However, as new projects develop on GGP and add real value to the point they will then pay their share of tax reducing the annual millage rate.