Financial Impact of Proposed LNG Terminal
Handout from Hearing on 10/16
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Financial Impact of Proposed LNG Terminal |
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30 year revenues (as if paid in lump sum in 2004) |
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$235,437,000 |
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50 year revenues (as if paid in lump sum in 2004) |
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$380,561,000 |
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Total $ received over 50 years (total of annual payments) |
$1,960,572,000 |
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Possible Uses of LNG Revenues |
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Revenue |
Property Tax Relief |
Permanent |
Other Uses |
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Received by |
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Reserve |
* |
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Harpswell |
$ |
% |
Fund |
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Years |
1-2 |
$250-$350,000 |
$250-$350,000 |
-4% |
$0 |
$0 |
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Years |
3-5 |
$6,500,000 |
$4,800,000 |
-51% to -47% |
$200,000 |
$1,500,000 |
** |
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Year |
6 |
$9,261,000 |
$4,723,000 |
-45% |
$3,519,000 |
$926,000 |
*** |
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Year |
10 |
$11,257,000 |
$5,207,000 |
-46% |
$4,278,000 |
$1,126,000 |
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Year |
20 |
$18,336,000 |
$9,351,000 |
-51% |
$6,968,000 |
$1,834,000 |
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Year |
30 |
$29,868,000 |
$15,233,000 |
-56% |
$11,350,000 |
$2,987,000 |
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Year |
50 |
$59,228,000 |
$35,661,000 |
-60% |
$43,568,000 |
$7,925,000 |
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If LNG program runs for 30 years: |
Property tax |
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Source: |
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Relief |
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Year |
31 |
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$15,401,000 |
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Income from Reserve |
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Gradually declines as % of tax |
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If LNG program runs for 50 years: |
Property tax |
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Source: |
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Relief |
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Year |
51 |
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Exceeds 50% |
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Income from Reserve |
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Permanent tax reduction |
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* for Lobster/shellfish mitigation fund and/or other purposes |
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** includes $1,000,000 Lobster/shellfish mitigation fund plus added
$500,000 Community Fund |
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*** revenues are allocated: 51% tax relief, 39% reserve fund, 10% other
uses |
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Inflation @ |
4% |
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Last 50 years annual average rate was 3.94% |
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Return @ |
5% |
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