Pensacola City Council member Maren DeWeese is questioning the CMP financing analysis done by city finance director Dick Barker. She has four bullet points:
* The change in growth rate of CRA TIF revenues. Under Mr. Barker’s current model, CRA TIF revenues will not return to their 2007 levels until 2016 (8 years from now).
* The difference is too big. As presented last week Mr. Barker’s projections reflect annual TIF revenues in the CRA will be $554 million less over the next 36 years than he predicted in 2007. (As I’ve written earlier, if Mr. Barker’s numbers are correct, the City is in huge financial trouble in all areas –not just in the CRA)
* The CMP Proposed Debt. In 2007 Mr. Barker proposed a debt amortization that reflected adjusting principal and interest payments that paid substantially more principle in the near term allowing for smaller payments in the outer years. In the current model due to the substantially less TIF revenues, Mr. Barker assumes a more straight line amortization. Why?
* Wastewater Plant Financing – We have waited so long to begin this project that the funds committed to the sewage treatment plant relocation have actually come due before the CMP debts will begin. In the 2007 plan, the CMP debt repayment preceded the WWTP obligation by two years. I remember the opponents of the Park stating the stink of the plant would keep people away. It appears that due to our lethargic progress on the CMP the plant will be closed and removed prior to the Park opening. Mr. Barker stated he would be investigating adjustment to the WWTP finance plan to better accomodate TIF revenues.
Good work, Maren. Read her blog.
