Quote:
Originally Posted by Novacek
But to do so, it would have to slash current service levels to pay for the bond. Again, their revenue is fixed.
(And their budget was ~400M pre pandemic, with a big chunk of that specific grants, not general revenue. Sales tax “income” was ~250)
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Yes. Yes. Yes.
So, according to you, when the cost overuns arise 10 years from now, ATP will start cutting lines and services because they have ran out of money. Do you really believe that? No, they are going to be begging for more cash from somebody. Hopefully you guys and gals did not give them an open checkbook with the ability to raise your property taxes as they feel fit - because that will be the first place they will look for more cash. Next in line will be their partners in providing the service, the City of Austin and CapMetro.
Lets remind everyone the tale of cost overruns in Honolulu.
The original cost to build it was $4 Billion in 2006 before the referendum that passed with 52% of the vote. The cost was $5.2 Billion in January 2010 prior to processing the first bids. By December 2010 the cost was projected to be $6.9 Billion after processing the first bids. Worse yet, the State review of the tax passed to fund the rail project would collect 30% less than estimated. In April 2017 the costs rose to $9 Billion. In March 2021 the cost has risen to $12.4 Billion.
Taxes had to be raised to pay the new higher costs. The Feds initial grant of $1.7 Billion has remained the same throughout. The local city GET tax that was increased .5% until 2020 was extended 10 years to 2030. The rest of the State's GET tax was increase .5% as well in 2017 to help fund the cost overruns.
But the taxes raise so far is Billions short of completing the project. There are serious discussions of not finishing the rail line through downtown Honolulu. More funding and taxes will be needed to build that last section....
Meanwhile, there is a problem with the new rail cars that derail running over points that will cost more money to fix. When it rain, it pours - even in Hawaii.
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