Developer owned utility to be sold to TV for $98.5M

[manaboutown]

Any thoughts on this? Is it an arms length transaction? What did it cost to build this depreciable asset? What is its true current value?

For more info see the unmentionable online news.

[OrangeBlossomBaby]

Any thoughts on this? Was it an arms length transaction? What did it cost to build this depreciable asset? What is its true current value?

For more info see the unmentionable online news.

If I'm reading the same article (which has a different title), then it looks to me that the deal isn't complete. That 98M is the purchase price IF the deal goes through. It's not a done deal yet. They probably need a lot more approvals, including from the Florida Public Service Commission, which regulates the water company. The most recent docket opened by them was in 2014.

So it doesn't look like they're anywhere near an actual purchase yet.

[manaboutown]

If I'm reading the same article (which has a different title), then it looks to me that the deal isn't complete. That 98M is the purchase price IF the deal goes through. It's not a done deal yet. They probably need a lot more approvals, including from the Florida Public Service Commission, which regulates the water company. The most recent docket opened by them was in 2014.

So it doesn't look like they're anywhere near an actual purchase yet.

Thanks. I amended my post.

[OrangeBlossomBaby]

I don't know how I feel about the sale. I'm from a state where most of the utilities are owned by actual utility companies, not individuals or planned community developers. Other than Wallingford - in which the town itself owns the electric company and powerplant. The concept of a developer owning a utility is just way too foreign to me to wrap my mind about it. A planned community owning it - such as Wallingford CT, would make sense if there were younger folks who could grow up and replace the older folks who retire from the job of caring for it. But if most of the owners are already old, who will replace them? Who will train their replacements? I'm not asking for anyone to answer me. I'm just explaining why I can't grasp the concept.

[dewilson58]

Two independent appraised values.






Unless you believe the conspiracy the appraisal companies are in the Developer's pocket. :1rotfl:

[tophcfa]

I am confused by this and am wondering if someone can clarify exactly who, or what entity, would be buying the utility from the developer. Also, what would the potential purchasers motivation be for the acquisition and would they be qualified to operate a utility. I had these same questions when the developer wanted to sell Hacienda Hills and could not figure out why the buyer would be interested? Inquiring minds want to know.

Obviously, my questions make the assumption that it would be an arms length transaction.

[Bogie Shooter]

I am confused by this and am wondering if someone can clarify exactly who, or what entity, would be buying the utility from the developer. Also, what would the potential purchasers motivation be for the acquisition and would they be qualified to operate a utility. I had these same questions when the developer wanted to sell Hacienda Hills and could not figure out why the buyer would be interested? Inquiring minds want to know.

Obviously, my questions make the assumption that it would be an arms length transaction.
https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/sale-center-utility-company-llc-csu-seller-298488/

[twoplanekid]

Stantec and PFM valuations were presented to the NSCUDD board by staff at the meeting this past Thursday. Follow this link to the district web site to view them ->NSCUDD (https://www.districtgov.org/community/NSCUDD.aspx)
The process to purchase CSU by NSCUDD is ongoing.

I will suggest that you are always welcome to attend NSCUDD board meetings to ask questions from staff or board members. And, I can and will respond to your questions if emailed directly to me at rick.rademacher@districtgov.org using the District email system. I love The Villages and appreciate the opportunity to serve you to the best of my ability.

PS
NSCUDD will hold a Solid Waste Workshop on Wednesday, October 23, 2019 at Savannah Recreation Center from 9:00 a.m. - 12:00 p.m.

NSCUDD will also hold a Solid Waste Plan meeting on Monday, November 4, 2019 in the District Office Board Room at 9:00 a.m.

[Bowtorc]

Will there be more cost for the residents? Tax hike, garbage changes, utility purchase. Looks like the developer is making changes and other are jumping on the wagon for more money!! Only an observation and opinion>

[Madelaine Amee]

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/sale-center-utility-company-llc-csu-seller-298488/

Bogie: Thanks for the link. I had absolutely no idea what the subject of this thread was.

[billethkid]

With the few details available I would favor options that allow other than resident liable ownership.

Like an existing utility company.

[tophcfa]

OK, I just spent a lot of time reading through the links provided to try to understand what is being proposed. As far as I can tell, the information being provided focused almost exclusively on the valuation of the transaction, which doesen't answer my questions. Let's assume that both parties fully agree on the assets valuation. My questions are related to the purchasing party, which are not addressed in any of the attached material.

What are the buyers motivation for making the purchase?
Do the buyers feel the acquisition will provide better service to Villagers at the same cost?
Do the buyers feel the acquisition will provide the same service to Villagers at a lower cost?
Are the buyers qualified to run a utility?
Why should a Villages homeowner support the acquisition?

Perhaps I am missing something, but for the sake of transparency these seem like very logical questions that should be answered before the sale takes place.

[JoMar]

Could it simply be an investment where the buyers (investors) see a positive ROI? When the public utilities in NY divested the generating plants and sold to private investors those investors ultimately made a significant return. I know it's hard to believe, and many hate to hear it, those that make investments here are not that benevolent.....they aren't looking to lower costs, provide better service or expect homeowners to support the acquisition. They are looking to make a return while providing a palatable service. And, if they don't, what are our alternatives?

[Advogado]

Two independent appraised values.

Unless you believe the conspiracy the appraisal companies are in the Developer's pocket. :1rotfl:

Yeah, it is a big "Unless." You know the old joke: Ask your appraiser what 3+2 equals, and he will reply, "Any number you want."

Apparently the purchaser's supposedly independent appraiser has a history of working for the Developer. Once again, we have the Developer's using the county to set up a governmental unit, staffing it with the Developer's people, and then selling stuff to it at a big markup.

[twoplanekid]

OK, I just spent a lot of time reading through the links provided to try to understand what is being proposed. As far as I can tell, the information being provided focused almost exclusively on the valuation of the transaction, which doesen't answer my questions. Let's assume that both parties fully agree on the assets valuation. My questions are related to the purchasing party, which are not addressed in any of the attached material.

What are the buyers motivation for making the purchase?
Do the buyers feel the acquisition will provide better service to Villagers at the same cost?
Do the buyers feel the acquisition will provide the same service to Villagers at a lower cost?
Are the buyers qualified to run a utility?
Why should a Villages homeowner support the acquisition?

Perhaps I am missing something, but for the sake of transparency these seem like very logical questions that should be answered before the sale takes place.


please read CSU Purchase Public Interest Determination cover memo
found here ->Coversheet (https://district.novusagenda.com/AgendaPublic/CoverSheet.aspx?ItemID=33219&MeetingID=1431)

[twoplanekid]

Yeah, it is a big "Unless." You know the old joke: Ask your appraiser what 3+2 equals, and he will reply, "Any number you want."

Apparently the purchaser's supposedly independent appraiser has a history of working for the Developer. Once again, we have the Developer's using the county to set up a governmental unit, staffing it with the Developer's people, and then selling stuff to it at a big markup.

A basic question: Why should the County buy the utility from the Developer at all??? I have no answer for that, but the whole thing has a distinct odor.

I am on the Board of NSCUDD and I am the one who brought this to the attention of everyone. Please read my on the record statement presented to the board found in a link given by Bogie Shooter post #7 in this thread.

NSCUDD is not owned by the county.

[Two Bills]

I wonder who woke up one morning and thought, " today would be a good day to buy a sewage plant!"

[mulligan]

IMHO, the sale should probably be completed when the negotiations are complete. It's not in the best interest to allow the developer to sell the utility out from under us to, perhaps, a less than public-minded operator.

[tophcfa]

Could it simply be an investment where the buyers (investors) see a positive ROI? When the public utilities in NY divested the generating plants and sold to private investors those investors ultimately made a significant return. I know it's hard to believe, and many hate to hear it, those that make investments here are not that benevolent.....they aren't looking to lower costs, provide better service or expect homeowners to support the acquisition. They are looking to make a return while providing a palatable service. And, if they don't, what are our alternatives?

That would make perfect sense if the purchaser was a private, for profit entity. I could be wrong, but my understanding is that the prospective purchaser is not a for profit entity, but rather in some way it is an entity set up to serve the community. Someone please correct me if I am wrong, that would explain a lot.

[tophcfa]

OK, I just spent a lot of time reading through the links provided to try to understand what is being proposed. As far as I can tell, the information being provided focused almost exclusively on the valuation of the transaction, which doesen't answer my questions. Let's assume that both parties fully agree on the assets valuation. My questions are related to the purchasing party, which are not addressed in any of the attached material.

What are the buyers motivation for making the purchase?
Do the buyers feel the acquisition will provide better service to Villagers at the same cost?
Do the buyers feel the acquisition will provide the same service to Villagers at a lower cost?
Are the buyers qualified to run a utility?
Why should a Villages homeowner support the acquisition?

Perhaps I am missing something, but for the sake of transparency these seem like very logical questions that should be answered before the sale takes place.

please read CSU Purchase Public Interest Determination cover memo
found here ->Coversheet (https://district.novusagenda.com/AgendaPublic/CoverSheet.aspx?ItemID=33219&MeetingID=1431)

I read the cover memo, but it doesn't answer any of the above questions. Is there a source of information I can access that would answer the questions? Thanks

[Advogado]

I am on the Board of NSCUDD and I am the one who brought this to the attention of everyone. Please read my on the record statement presented to the board found in a link given by Bogie Shooter post #7 in this thread.

NSCUDD is not owned by the county.

I was using the term “county” loosely in my post. I guess technically we are talking about a Dependent District of the County. But I am always glad to be educated.

[Two Bills]

Has anyone considered that 'The Family' may have a cash flow (not assets) problem?
A lot of money involved with such a large fast expansion, maybe unloading a few assets to top up the pot.
Or maybe they need a larger, new family aircraft, they have a growing tribe on the payroll nowadays!!

[twoplanekid]

I read the cover memo, but it doesn't answer any of the above questions. Is there a source of information I can access that would answer the questions? Thanks


" I can and will suggest that you are always welcome to attend NSCUDD board meetings to ask questions from staff or board members."

NSCUDD will also hold a Solid Waste Plan meeting on Monday, November 4, 2019 in the District Office Board Room at 9:00 a.m.

NSCUDD next regular board meeting is on Thursday, November 21, 2019 in the District Office Board Room at 9:00 a.m.

[tophcfa]

" I can and will suggest that you are always welcome to attend NSCUDD board meetings to ask questions from staff or board members."

NSCUDD will also hold a Solid Waste Plan meeting on Monday, November 4, 2019 in the District Office Board Room at 9:00 a.m.

NSCUDD next regular board meeting is on Thursday, November 21, 2019 in the District Office Board Room at 9:00 a.m.

Since I am a part time resident (as is the case with many thousands of Villagers), it is often not a possibility to attend Board meetings. That should not prevent taxpaying Villages homeowners from being on the receiving end of upfront and transparent relevant information regarding important matters.

Since no source of information was cited regarding my list of questions, I am assuming these questions have not been addressed or answered? Hopefully I am wrong, as I would very much like to know how this proposed acquisition will benefit Villages residents.

[LuvtheVillages]

I read the cover memo, but it doesn't answer any of the above questions. Is there a source of information I can access that would answer the questions? Thanks

In addition to the cover memo, you also need to read the Public Interest Determination attachment (as suggested by TwoPlaneKid.)

It only lists positives. I did not see any negatives. It looks like there are some tax savings to be had. It was written by District Manager Baier.

[tophcfa]

In addition to the cover memo, you also need to read the Public Interest Determination attachment (as suggested by TwoPlaneKid.)

It only lists positives. I did not see any negatives. It looks like there are some tax savings to be had. It was written by District Manager Baier.

Thank you for pointing me toward that memo. It does answer some, but not all of my questions. Since the operations and administration of the utility are currently being sub-contracted out, and would continue to be contracted out to the same service provides after the sale, presumably the service quality and operating costs would not change. The memo states three categories of cost benefits resulting from the new owner being a private, versus public entity. I buy into two of the three arguments. First, a private entity does not have a profit motivation, which should help keep customer rates down. Second, a private entity can sell tax-exempt bonds which carry a lower interest rate. Third is that a private entity is exempt from paying many forms of taxes. Not having to pay taxes at the state and federal level certainly is a plus, but not having to pay local property and other local taxes is not a benefit. This exemption is simply a shell game. The county needs its revenue, if the utility becomes tax exempt, the county will simply have to raise taxes from other sources (such as Villages homeowners) to make up the revenue shortfall.

I can say that without a doubt, that after reading the memo, it is much clearer that there are potential benefits to the sub-set of Villagers that use the services of the Utility being considered for sale. On the other hand, I see this as a negative for all other residents of Sumter County who are not customers of the utility, including many Villagers. At least the level of transparency involving this potential transaction blows away what took place during the 25% tax increase fiasco.

[Bowtorc]

Feels like just another chance for the developer to make some money!

[tophcfa]

Feels like just another chance for the developer to make some money!

And dump some property where the tax just went up by 25%.

[kpd3062]

Developer owned utility may be sold to TV for $98.5M


What is the differentiated "The developer" and TV?

[dewilson58]

Will there be more cost for the residents? Tax hike, garbage changes, utility purchase. Looks like the developer is making changes and other are jumping on the wagon for more money!! Only an observation and opinion>




Historically, selling this unit is consistent with the Developer's master plan (all generations, not jus the current family members).



They start companies/services to support The Villages, get it up and going (and yes, make money) and then sell it off. This allows them to focus on their core business.......Development.


Good Business Model.

[graciegirl]

To Avocado......….

As DeWilson so nicely said.

Historically, selling this unit is consistent with the Developer's master plan (all generations, not just the current family members). They have done this with several restaurants, The Villages Transportation and The Villages Entertaiment and The wonderful Furniture Store.



They start companies/services to support The Villages, get it up and going (and yes, make money) and then sell it off. This allows them to focus on their core business.......Development.


Good Business Model.

P.S. Many of us don't trust or like the POA.

[manaboutown]

To Avocado......….

As DeWilson so nicely said.

Historically, selling this unit is consistent with the Developer's master plan (all generations, not just the current family members). They have done this with several restaurants, The Villages Transportation and The Villages Entertaiment and The wonderful Furniture Store.



They start companies/services to support The Villages, get it up and going (and yes, make money) and then sell it off. This allows them to focus on their core business.......Development.


Good Business Model.

P.S. Many of us don't trust or like the POA.

His handle is Advogado. English Translation of “advogado” | Collins Portuguese-English Dictionary (https://www.collinsdictionary.com/us/dictionary/portuguese-english/advogado)

Not Avocado. Avocado - Wikipedia (https://en.m.wikipedia.org/wiki/Avocado)

[LuvtheVillages]

I may regret asking this question, but this has been bugging me.

Does anyone know who paid to create the Central Sumter Utility Co? Did the Developer buy the land and equipment and set this up out of his own pocket? (Like the newspaper or like Villages Health)

Or was it funded as infrastructure in one of the bonds?

[twoplanekid]

The following Q & A was sent to all NSCUDD board members today by CDD District manager Richard Baier. I am posting what I received as a public record.


North Sumter County Dependent District (NSCUDD)
Questions and Answers in reference to the pending acquisition of Central Sumter Utility, LLC (CSU)

Q: How did the pending acquisition of CSU come to be?
A: The seller presented an offer to NSCUDD to purchase CSU in September of 2019.
Q: Did the NSCUDD Board approve the Purchase and Sale Agreement?
A: Yes, the NSCUDD Board approved the Purchase and Sale Agreement at their meeting on September 19 by a 6-1 vote.
Q: What were the parameters of the Purchase and Sale Agreement to determine a Purchase Price?
A: Each party was to engage a consultant to formulate a purchase price based on an income approach. Once the consultants concluded their purchase price, the two values would be compared to determine what the difference was. If the difference was less than 5% apart, the lesser of the two values would be the purchase price. If the values were between 5%- 10%, then an average of the two would be used. Over 10%, the Consultants would come together to reconcile their differences and come to a conclusion as to purchase price.
Q: Any other inspections?
A: Yes, the NSCUDD Board also engaged Jones Edmunds to perform a facilities condition assessment report. The seller has engaged a firm to conduct a Phase I environmental assessment.
Q: Have the valuations been completed, and if so, what are they?
A: Yes the valuations have been completed and presented to the NSCUDD Board at their meeting on October 17th.
Q: How far did the consultants forecast income in their income approach?
A: Both consultants forecasted out 30 years in their respective reports when establishing income and expenses.
Q: What were they?
A: The NSCUDD consultant valued CSU at $93,880,000 and the Seller’s consultant valued CSU at $103,056,159.
Q: How did these values fall within the parameters of the agreed upon and Board approved agreement?
A: The difference was 9.77% which was between the 5%-10% range which indicated a purchase price of the average of the two values.
Q: What is the agreed upon purchase price?
A: The average of the two valuations, which was $98,468,075.
Q: Did the valuation include a provision for Renewal and Replacements funds?
A: Yes, the income approach included an allocation for R&R funds annually. Initial R&R allocation is approximately $180,000, with the fund growing to approximately $1MM over the next 5 years.
Q: What happens now?
A: The District will start preparing for financing of the acquisition of CSU.
Q: How will the financing be done?
A: The District will work with the Financial Advisor, Underwriter, Bond, Tax and Issuer Counsel to start the process to issue debt to purchase.
Q: What type of debt will be issued?
A: Tax exempt financing will be issued for the purchase price plus cost of issuance and any other required funding.
Q: Who will determine the water and waste water rates?
A: The NSCUDD Board will determine the water and waste water rates in a public hearing. The request to advertise the Rate Rule adoption was approved by the NSCUDD Board on October 17th. This Rate Rule Adoption will have no impact on the current North Sumter Utility (NSU) rates.
Q: Why does NSCUDD want to purchase CSU?
A: As a local government, NSCUDD is a Utility Dependent District with a mission to manage, oversee utilities as a provider of public service. There is no focus on profit, only to serve the public as a transparent public utility.

[tophcfa]

The following Q & A was sent to all NSCUDD board members today by CDD District manager Richard Baier. I am posting what I received as a public record.


North Sumter County Dependent District (NSCUDD)
Questions and Answers in reference to the pending acquisition of Central Sumter Utility, LLC (CSU)

Q: How did the pending acquisition of CSU come to be?
A: The seller presented an offer to NSCUDD to purchase CSU in September of 2019.
Q: Did the NSCUDD Board approve the Purchase and Sale Agreement?
A: Yes, the NSCUDD Board approved the Purchase and Sale Agreement at their meeting on September 19 by a 6-1 vote.
Q: What were the parameters of the Purchase and Sale Agreement to determine a Purchase Price?
A: Each party was to engage a consultant to formulate a purchase price based on an income approach. Once the consultants concluded their purchase price, the two values would be compared to determine what the difference was. If the difference was less than 5% apart, the lesser of the two values would be the purchase price. If the values were between 5%- 10%, then an average of the two would be used. Over 10%, the Consultants would come together to reconcile their differences and come to a conclusion as to purchase price.
Q: Any other inspections?
A: Yes, the NSCUDD Board also engaged Jones Edmunds to perform a facilities condition assessment report. The seller has engaged a firm to conduct a Phase I environmental assessment.
Q: Have the valuations been completed, and if so, what are they?
A: Yes the valuations have been completed and presented to the NSCUDD Board at their meeting on October 17th.
Q: How far did the consultants forecast income in their income approach?
A: Both consultants forecasted out 30 years in their respective reports when establishing income and expenses.
Q: What were they?
A: The NSCUDD consultant valued CSU at $93,880,000 and the Seller’s consultant valued CSU at $103,056,159.
Q: How did these values fall within the parameters of the agreed upon and Board approved agreement?
A: The difference was 9.77% which was between the 5%-10% range which indicated a purchase price of the average of the two values.
Q: What is the agreed upon purchase price?
A: The average of the two valuations, which was $98,468,075.
Q: Did the valuation include a provision for Renewal and Replacements funds?
A: Yes, the income approach included an allocation for R&R funds annually. Initial R&R allocation is approximately $180,000, with the fund growing to approximately $1MM over the next 5 years.
Q: What happens now?
A: The District will start preparing for financing of the acquisition of CSU.
Q: How will the financing be done?
A: The District will work with the Financial Advisor, Underwriter, Bond, Tax and Issuer Counsel to start the process to issue debt to purchase.
Q: What type of debt will be issued?
A: Tax exempt financing will be issued for the purchase price plus cost of issuance and any other required funding.
Q: Who will determine the water and waste water rates?
A: The NSCUDD Board will determine the water and waste water rates in a public hearing. The request to advertise the Rate Rule adoption was approved by the NSCUDD Board on October 17th. This Rate Rule Adoption will have no impact on the current North Sumter Utility (NSU) rates.
Q: Why does NSCUDD want to purchase CSU?
A: As a local government, NSCUDD is a Utility Dependent District with a mission to manage, oversee utilities as a provider of public service. There is no focus on profit, only to serve the public as a transparent public utility.

Did anyone ask the question: How will transferring the ownership of CSU to NSCUDD, resulting in the utility no longer paying County property taxes, effect the tax rates of the homeowners in the county going forward? That is a question that I am sure many Villages homeowners would very much like to hear the answer to.

[twoplanekid]

Did anyone ask the question: How will transferring the ownership of CSU to NSCUDD, resulting in the utility no longer paying County property taxes, effect the tax rates of the homeowners in the county going forward? That is a question that I am sure many Villages homeowners would very much like to hear the answer to.

If you would look at Exhibit A found in the Offer to Sell ....
Coversheet (https://district.novusagenda.com/AgendaPublic/CoverSheet.aspx?ItemID=33219&MeetingID=1431)


A figure of $315 per month or $2,205 total through July, 2019 is listed for property taxes.

[tophcfa]

Hmmmm, if I multiply the $315 per month by 12 it equals $3,780 per year for property taxes. That figure is not much higher than the property taxes on my modest Sumter County home that is worth less than $300,000. The average of the two appraisals on the Utility is about $98.5 Million dollars. What's up with that?

[twoplanekid]

Hmmmm, if I multiply the $315 per month by 12 it equals $3,780 per year for property taxes. That figure is not much higher than the property taxes on my modest Sumter County home that is worth less than $300,000. The average of the two appraisals on the Utility is about $98.5 Million dollars. What's up with that?

From the Valuations found here -> NSCUDD (https://www.districtgov.org/community/NSCUDD.aspx)

"The Buyer retained PFM Financial Advisors LLC (“PFM”) as its valuation consultant. Using the income approach PFM has come to a Preliminary Valuation for CSU of $93,880,000 as of October 15, 2019.

and from Stantec

"Section 5 “Purchase Price; Payment” of the signed Agreement for Purchase and Sale (“agreement”) states: “Both Seller and Purchaser shall each select a separate valuation firm… Each valuation shall be based upon, and prepared in accordance with, the income approach of valuation.” The income approach calculates the net present value of income available for debt service net of debt service coverage and contributions to a Renewal & Replacement Fund (R&R fund). As such, the valuation discussed herein reflects a projection of annual revenues net of projected annual expenses such that projected annual income is calculated for 33 years (FY 2019 thru FY 2052)1.

[tophcfa]

Hmmmm, if I multiply the $315 per month by 12 it equals $3,780 per year for property taxes. That figure is not much higher than the property taxes on my modest Sumter County home that is worth less than $300,000. The average of the two appraisals on the Utility is about $98.5 Million dollars. What's up with that?

From the Valuations found here -> NSCUDD (https://www.districtgov.org/community/NSCUDD.aspx)

"The Buyer retained PFM Financial Advisors LLC (“PFM”) as its valuation consultant. Using the income approach PFM has come to a Preliminary Valuation for CSU of $93,880,000 as of October 15, 2019.

and from Stantec

"Section 5 “Purchase Price; Payment” of the signed Agreement for Purchase and Sale (“agreement”) states: “Both Seller and Purchaser shall each select a separate valuation firm… Each valuation shall be based upon, and prepared in accordance with, the income approach of valuation.” The income approach calculates the net present value of income available for debt service net of debt service coverage and contributions to a Renewal & Replacement Fund (R&R fund). As such, the valuation discussed herein reflects a projection of annual revenues net of projected annual expenses such that projected annual income is calculated for 33 years (FY 2019 thru FY 2052)1.

I understand the appraisals, that's not what I am trying to figure out. I am trying to reconcile how a taxable entity (under current ownership) valued at around $98.5 million pays only $3,780 in property taxes?

[twoplanekid]

I understand the appraisals, that's not what I am trying to figure out. I am trying to reconcile how a taxable entity (under current ownership) valued at around $98.5 million pays only $3,780 in property taxes?

The property tax value of my house is not based on "the valuation discussed herein reflects a projection of annual revenues net of projected annual expenses such that projected annual income is calculated for 33 years (FY 2019 thru FY 2052)."

[tophcfa]

The property tax value of my house is not based on "the valuation discussed herein reflects a projection of annual revenues net of projected annual expenses such that projected annual income is calculated for 33 years (FY 2019 thru FY 2052)."

Yes, I understand that. But I am still struggling to reconcile how a house with a value of roughly $300 thousand pays about $3 thousand a year in property taxes and an entity with a market value of roughly $98.5 million pays under $4 thousand a year in property taxes. That would seem to imply that the entity with a $98.5 million market value is only accessed for taxes at about $400 thousand. That's a very large disconnect between accessed value and market value. The value difference seems way to good to be real for the property owner, or maybe not considering the current owner?

[dewilson58]

Yes, I understand that. But I am still struggling to reconcile how a house with a value of roughly $300 thousand pays about $3 thousand a year in property taxes and an entity with a market value of roughly $98.5 million pays under $4 thousand a year in property taxes. That would seem to imply that the entity with a $98.5 million market value is only accessed for taxes at about $400 thousand. That's a very large disconnect between accessed value and market value. The value difference seems way to good to be real for the property owner, or maybe not considering the current owner?




Utility costs are pass-thru costs. Rates are based on costs. So, you should be cheering property tax expenditures are low


:boom:

[tophcfa]

Utility costs are pass-thru costs. Rates are based on costs. So, you should be cheering property tax expenditures are low


:boom:

Does that imply that utility providers are subject to a different mill rate and/or accessment process than other residential or commercial property owners? Just trying to understand how an entity with an appraised value of roughly 98.5 million is only accessed at about 400 thousand? I know we all wish our homes were accesses at 4/10 of 1% of their market values, how sweet would that be! And the property in question is not my utility provider in District 1.