Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Arena negotiation discussion. UPD: Flames release their proposal

bob-loblaw · 09-13-2017, 01:47 PM

If I never attend a Flames game, what would it cost me as a taxpayer?

The city has an operating budget of $3.5 billion/year right now. From what I can tell, 20% of the budget is received in the form of residential property taxes ($700 million). So, if assuming that the only money used to repay the city's involvement comes from property taxes, what's my added expense to float a new arena.

These are really simplified calculations, but hypothetically if the total investment and carrying costs is $400 million over 25 years, that means $16 million per year needs to be raised from property taxes. $16m/$700m (with no inflation) is about a 2.3% increase over that time frame. For me, that's about $40/year and I'm paying $1,000 over 25 years.

Is having a new arena worth that amount to individual taxpayers? It seems reasonable. $40 per year is definitely a lot cheaper than having to travel some place to watch NHL hockey or attend a concert that won't come here.

09-13-2017, 01:47 PM	#92
bob-loblaw First Line Centre Join Date: Jul 2013 Location: Calgary Exp:	If I never attend a Flames game, what would it cost me as a taxpayer? The city has an operating budget of $3.5 billion/year right now. From what I can tell, 20% of the budget is received in the form of residential property taxes ($700 million). So, if assuming that the only money used to repay the city's involvement comes from property taxes, what's my added expense to float a new arena. These are really simplified calculations, but hypothetically if the total investment and carrying costs is $400 million over 25 years, that means $16 million per year needs to be raised from property taxes. $16m/$700m (with no inflation) is about a 2.3% increase over that time frame. For me, that's about $40/year and I'm paying $1,000 over 25 years. Is having a new arena worth that amount to individual taxpayers? It seems reasonable. $40 per year is definitely a lot cheaper than having to travel some place to watch NHL hockey or attend a concert that won't come here.