Ouch.

“We are projecting that even if we receive the same amount we received for the second quarter of 2020, which was historically low due to the pandemic, each quarter into the future, we would have enough room tax collected to pay the debt service obligations through 2022,” Saucerman said. “By that point, we are anticipating room tax collections being back to normal.”

If the reserves were to become depleted, Appleton is obligated to provide advances to its redevelopment authority to make the debt payments. The advances would be paid back to the city with future excess room tax collections.