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The Red Sox had a great year
The taxpayers had a bad year
For fiscal 2021, which ended June 30 and included the first two months of the WooSox season, the city needed the stadium taxing district to generate about $640,000 to cover the remainder of the $2.1-million stadium bond payment not already paid for by the capitalized interest.
The revenue from the ballpark district fell short, generating about $391,000.
Let us translate:
- this year we have a bond payment of $2,100,000
- we took $1,460,000 that we borrowed to pay this first bond payment (capitalized interest)
- leaving us $640,000 to pay
- we only raised $391,000
- short $249,000
To say we were only $249,000 short is a true reflection of how short we really were. We borrowed $1,460,000 that we are calling "capital interest". You need to add these two numbers together.
We were short $1,809,000 to cover the $2,100,000 bond payment. The DIF only generated $391,000!!!
Keep in mind:
- Bond payments increase each year
- Believe next year (year 2) is that last year we have capitalized interest
Comments
Back to the WBJ article, the rich get richer and we taxpayers get stuck with the bill. This comes as no surprise it's Worcester.