We originally incorrectly reported a deficit of $3.5 million. Accordingto new information provided by the town the correct number is $3.0 million. The below has been updated.
Based on numbers just confirmed from Town of Davidson Finance Director Pieter Swart, Davidson's total obligation to MI-Connection in the upcoming fiscal year starting July 1st will be $914, 902.
Under the current inter-local agreement with Mooresville, Davidson is responsible for 30% of the deficit. That brings the total amount of subsidy required to $3.05 million.
Davidson's annual cash payment is capped at $1 million with Mooresville covering the rest. Any amount not covered by Davidson accrues and the current amount owed Mooresville is $1.77 million. Davidson currently has $1 million set asside towards this debt.
Improvement is always good, but there is still a long way to go. At this rate of improvement, Davidson will owe the $1m per year for at least the next couple years (including FY2017) to cover current year debt each cycle and cover the unfunded $700k owed to Mooresville. After that, the annual amount could drop significantly below $1m per year.
As reported earlier, Davidson will be discussing its upcoming budget on Tuesday. Will be interesting to see how this plays into the discussion.
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