In the July 19 Times, several letters raised many valid safety and economic questions about the lagoon project and made some excellent points. A few letters were written by people with whom I differ politically, but they echoed many of the concerns in my July 12 letter.
The front-page article also provided information which I think helps to illustrate the apparent financial folly of the proposed lagoon.
In fiscal year 2017/2018, projected sales tax revenue to the town is $8.8 million (on sales of over $300 million). On the low end, the lagoon’s projected cost is $3 million. In order to generate an additional $3 million from sales tax, sales would have to increase by $115 million. That is over 30 percent.
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I am anchor
Concerns
Posted
Dr. Richard Rutkowski
In the July 19 Times, several letters raised many valid safety and economic questions about the lagoon project and made some excellent points. A few letters were written by people with whom I differ politically, but they echoed many of the concerns in my July 12 letter.
The front-page article also provided information which I think helps to illustrate the apparent financial folly of the proposed lagoon.
In fiscal year 2017/2018, projected sales tax revenue to the town is $8.8 million (on sales of over $300 million). On the low end, the lagoon’s projected cost is $3 million. In order to generate an additional $3 million from sales tax, sales would have to increase by $115 million. That is over 30 percent.
A $4 million dollar cost would require a sales increase of $153 million, or about 50 percent.
The operation of the lagoon is estimated to be $200,000 annually. This amount of sales tax revenue would require an extra $7.7 million in annual sales. That’s over $21,000 per day, every day, 365 days per year, including days when it’s too hot or too cold or too “whatever” for a swimming lagoon to attract visitors.
Do you really believe that the lagoon could consistently generate such revenue for construction and operation? I don’t.
If the lagoon is really economically feasible, why hasn’t any commercial enterprise come forward, risked its own money and offered a mutually beneficial partnership with the town for the development and use of Fountain Park for this purpose?
In her letter, Cindy Couture, quoting her father’s advice, wrote, “...we don’t spend money on ‘nice to haves’ until we cover our necessities.” It appears that some Town Councilmembers are ignoring their obligation to be responsible stewards of the taxpayers’ money and aren’t following that piece of good advice.
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