Proposed New Mi-Connection Agreement Prelim Analysis

Here is some quick and dirty analysis on what the proposed new inter local agreement could mean for Davidson's budget.

Assumptions behind this include:

1.  New ownership percentage goes into place this year.  Davidson has 30% responsibility rather than 35%.  This means Davidson's budgeted subsidy could drop from  $2.087M this year to $1.79M.  The town would still only pay $1M this year under the new agreement.
2.  Charts show subsidy dropping 20% and 10% annually from current subsidy amount.  (These could certainly be optimistic.)
3.  No interest on money owed to Mooresville.  This is likely not going to be the case, but since interest rates are so low now this probably won't materially change the numbers.

When the number turns green on the row titled "Mooresville Debt Total"  that would mean the loaned funds from Mooresville had been repaid and the Davidson subsidy could drop below $1 million per year.

The red zero means the Davidson subsidy has gone to zero dollars per year.

(Close the blog archive list at right to clearly see second chart.)

20% Annual Subsidy Reduction








10% Annual Subsidy Reduction