Nishi 2.0 is a fiscal loser. It imposes major costs on Davis's taxpayers. The City is underestimating the cost of City services. A Finance and Budget commissioner's fiscal analysis shows that Nishi will cost the city approximately $350,000 annually, resulting in a $5.6 million deficit after 15 years. City taxpayers will be subsidizing Nishi.
Furthermore, there is still no tax-sharing agreement between Davis and Yolo County. Thus, the fiscal analysis is not yet completed, as the City has admitted. Our fiscal losses may even be worse. And Nishi still has no legally binding agreements with UCD for access to the campus, nor from the railroad to allow an underpass. The project has a lot of loose ends. Why is it even on the ballot?
The financial analysis of Nishi is explained in an op-ed from Finance and Budget (FBC) Commissioner Matt Williams. Among its conclusions:
I believe that FBC Report to Council is neither balanced nor transparent because it does not provide either the Council or the citizens with the tools to address both immediate cash impact on the City Budget, as well as the end-of-useful-life capital costs (maintenance and/or replacement) that come due when the pre-spending has been exhausted. It does not identify the $900,000 per year the City needed to "save" in order to have the necessary money set aside to do the capital infrastructure repairs/replacement when they came due at the end of useful life. When you add that $900,000 per year capital infrastructure savings amount to the $143,863 surplus, the bottom-line of a "full life-cycle accounting" is a $750,000 annual deficit which will have to come out of the pockets of Davis taxpayers.
Davis Citizens for Democracy - No on Measure J - No on Nishi 2.0