[CAFR1]

Here is a hypothetical reality example for everyone:


You take 20,000 acres and incorporated a city.

The new city government is established with taxation, set up “Exactly” the way it is now but with one change. That being; 25% of the revenue collected was put aside into a TRF fund.


The learning question for you now is: At normal annual rates of return, as are currently being accomplished on most state government pension funds (14%), how long would it be with compounded interest, before the TRF was generating a return in excess of what the new cities ongoing operating budget was whereby all vested residents at that point could have their city taxation eliminated entirely?



ANS: Seven to Eight years.


NOTE: Now, you would think with this in place, EVERYONE will move into your city, which puts a strain on government services. However, this is not the case. Those moving in will “vest” just as the founders did.

The above example is the start-off example for a “New” city. Those already in existence, having the well-entrenched greed factor already in play, will require a “Hostile take-over” of unified action from the residents. “Too many hands already in the cookie jar and an intricate web built already to keep it as such contrary to the best interests of the residents.”


The good point here even though it would take great fighting, and serious head to head confrontation to get it done, is that with a little trimming of the fat (downsizing), consolidation of the slush-funds, sale for privatization of entities government should not own (ie; golf courses), the TRF balance upon implementation can hit that “Self-Sufficiency” mark whereby the standing residents are “vested” in some case upon restructure and in general for most cases within two to four years.