What will you sell your quality of life for?

The Mall – The Fiscal Impact

What will you sell your quality of life for?

$1 million?

$2 million?

The Mall developer says the town would get $2 million in additional “net” (after municipal expenses) taxes.

The Town Manager says $ 1.6 million net additional taxes (costs for additional sewer capacity have yet to be calculated and deducted from the $1.6 million “windfall”). These tax projections assume that the mall will be built as shown in the preliminary plans, that it will be able to attract “high end” stores and that the hotel and fitness center actually get built……both very speculative propositions given the economy, location and demand for this type of development.

Is this a big deal for the town’s finances?

Current Town Budget for FY 2007-2008 - $90.5 million

Mall taxes after deduction for municipal expenses (including sewer costs) will likely be around $1.3 to $1.4 million net and would represent about 1.5% of total town budget.

By comparison:

A. Town’s Budget Surplus from Fiscal Year- end June ‘05 $1.54 million

Fiscal Year- end June ’06 $2.14 million

Projected Surplus Fiscal Year- end June ’07 $2.0 million+??

Bottom line: this “Windfall from the Mall” doesn’t even equal the typical “leftover” revenue from town operations!!

B. The one year increase for the Board of Education budget this year was $1.97 million.

Bottom line: this $1.4+/- million tax “Windfall from the Mall” is not that significant in the overall town fiscal picture.

Is the tax money worth the many downsides to this project?

No.

Finally, the developer is presenting this project as if it was the “only” potential source of revenue from the north end of town. However, it is not a question of W/S Weiner’s $1.5 million or nothing. Other more environmentally and community friendly development could go here which would generate considerable tax revenue without the many down sides that a Mall will bring.

And remember: Town financial reserves (Fund Balance (our municipal “savings account”), pension programs, debt reserves, etc.) have never been in better shape.

We are not some backwater community desperate for tax revenue that must take whatever “deal” a developer puts before us.

Let’s not sell our community’s future for a few pieces of silver.

Cheshire ….and our quality of life…….. deserves better.