I found something out today that is very interesting... In calculating the percentage MassPort pays of the operating deficit, it does not include debt service. Let me give you an example, if the aiport was losing $2,000,000 per year, I would have thought MassPort would have calculated their percentage under the current agreement based on the $2,000,000 figure.... This is wrong.
You need to back debt service out of the operating deficit, which is approximately $500,000, then MassPort would have pay their percentage on that amount $1,500,000... Bottom line is that debt service belongs 100% to the City of Worcester, while the balance of the deficit is covered via an operating agreeement..
This is a huge difference, when the debt service is $500,000 per year. Even in Year 1 of the current agreement with MassPort (last fiscal year), whereby they were paying 100% of the operating deficit, it still cost the City of Worcester approximately $500,000 (debt service).
Maybe everyone already knew this, but I did not know this to be the case.
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
5 comments:
Wait until you see what debt service is when they spend what they've budgeted for capital over the next five years.
tell me more???
http://closeorh.blogspot.com/2006/01/charley-farley-was-wrong.html#links
2006 Capital - $210,000
2007 Capital - $3,394,000
2008 Capital - $1,175,000
2009 Capital - $1,270,000
2010 Capital - $4,850,000
Also, note the last city council meeting they voted to transfer $11,000 to the airport capital budget for floor washing equipment. I never saw that in a budget.
Charley,
Did they give any breakdown of what they were using this money for?
Dave
Charley:
These numbers are incredible.. Where did you get them??
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