According to the information posted - and confirmed by independent research of City records and the Manager's employment contract - the City went into a partnership with Keene to buy a house for him. The City paid 75% and gave Keene a below market loan for his 25%.
The issue of a subsidy arises because the City charges Keene no interest or rent on the City share, and the City pays the property tax on the City share. Records show the house was purchased for $1.875 million, so the City (we taxpayers, that is)share is $1,410,000. That is the capital cost of the housing subsidy Keene receives.
The annual value of this subsidy can be determined by calculating the amount that a real estate loan for the City share would cost and the amount that the property taxes on the City Share would be.
Today's rates for jumbo loans (> $729,000) are in the 4.5% range, contrary to the Free Press postings use of 5.5%. At the 4.5% rate the cost is $5.05 per $1000 of loan, or 1410 x $5.07 = $86,000 per year.
Property taxes run about 1.2% per year on the purchase price, or .012 x $1,410,000 = $17,000 per year.
Thus, the total annual value of the housing subsidy Keene receives can be reasonably estimated to be $86k + $17k = $103,000 per year!
I have noticed that this forum has restricted comments on my prior posts to Registered users only. I did not do that, and do not know why they felt the need to so do. I equally do not understand why the local media other than the Free Press has not covered these issues of Keene's undisclosed compensation above his base salary.
Perhaps they were protecting him during his negotiations with the Fire Fighters Union?
It will be interesting to see if comments on this thread are likewise restricted.
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