What Does TMMD do with the Taxes It Collects?
The TrailMark Metro District levies mills (taxes) to generate revenue to pay for the following:
· Outstanding general bond obligations which were used to finance the infrastructure construction costs of the neighborhood (Debt Fund)
· General Operating Expenses of the Metro District (General Fund)
DEBT FUND
The Debt Fund collects taxes earmarked for the repayment of bonds. The current bonds TMMD is repaying were taken out when TrailMark was first established; the developer used the revenue from these bonds for purposes of building TrailMark’s infrastructure.
TMMD’s current Debt Fund mill levy is set below what is necessary to meet the bond obligations. Thus, TMMD is currently under-collecting revenue necessary for bond repayment. For 2015, the TMMD assessed a Debt Fund tax of 20 mills which would generate an estimated $482,074 in revenue. The 2015 Debt Obligation is $730,646. The TMMD is drawing from cash reserves (General Fund) to supplement the approximate $248,572 shortfall in Debt Fund revenue. To have fully funded the Debt Fund through taxes, and avoid use of reserves in the General Fund, approximately 10 additional mills would have been assessed on each home in the neighborhood. (See Bonds/Debt Fund Mills illustration below).
GENERAL FUND:
The General Fund collects taxes used for all other general TMMD operations including expenses such as management, legal compliance, and maintenance of ponds and fences. The 2015 operations budget for TMMD is $218,565.
· Outstanding general bond obligations which were used to finance the infrastructure construction costs of the neighborhood (Debt Fund)
· General Operating Expenses of the Metro District (General Fund)
DEBT FUND
The Debt Fund collects taxes earmarked for the repayment of bonds. The current bonds TMMD is repaying were taken out when TrailMark was first established; the developer used the revenue from these bonds for purposes of building TrailMark’s infrastructure.
TMMD’s current Debt Fund mill levy is set below what is necessary to meet the bond obligations. Thus, TMMD is currently under-collecting revenue necessary for bond repayment. For 2015, the TMMD assessed a Debt Fund tax of 20 mills which would generate an estimated $482,074 in revenue. The 2015 Debt Obligation is $730,646. The TMMD is drawing from cash reserves (General Fund) to supplement the approximate $248,572 shortfall in Debt Fund revenue. To have fully funded the Debt Fund through taxes, and avoid use of reserves in the General Fund, approximately 10 additional mills would have been assessed on each home in the neighborhood. (See Bonds/Debt Fund Mills illustration below).
GENERAL FUND:
The General Fund collects taxes used for all other general TMMD operations including expenses such as management, legal compliance, and maintenance of ponds and fences. The 2015 operations budget for TMMD is $218,565.
