Financial Impact of Proposed LNG Terminal
Handout from Hearing on 10/16

 
TOWN OF HARPSWELL  
 

Financial Impact of Proposed LNG Terminal

 

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