SID#1 INTEREST RATE & Payment Address Response

Post date: Jul 27, 2009 10:24:58 PM

The Notice that all lot holders received is not your bill; but rather a Notice of the proposed assessment. Once these proposed assessments are levied by the SID Board on August 12th, the County Treasurers will send the "official bill" towards the end of August. You then will make your payments directly to your county treasurer.

If one wants to carry the assessment, it is setup automatically for everyone in the District over 15 years; they need to pay the 1st 1/15 before October 1st to avoid any interest on that amount (or a greater amount if desired)... Then each year, 1/15 of the principal amount (total assessment) will be due to the County Treasurer before August 12th; plus interest on the unpaid balance; after August 12th it becomes delinquent and the rate is 2% more per state statutes. Monthly payments are NOT accepted by the counties; just annual payments; or it can be paid in full at any time, to include the interest due. Or, the annual payment can be increased if desired at any annual payment time to pay ahead and reduce the principal; however, the interest is fixed as discussed below for the 15 year term and the payment plan is always based on 15 years. The assessment is NOT part of the counties annual tax billing or statement; but rather an entirely separate billing by the county treasurer, billed in July and due by August 12th each year.

Unfortunately, the interest rate won't be finalized until our Aug 12th Levy meeting by state statute. Current state statutes dictates that it is to be the current warrant rate or average during the project rounded up 1/2 per-cent; which would make it 71/2 per-cent. However, we are trying to obtain approval to blend the rate so it might be in the 5 to 51/2% range; since we are getting the majority of our funds for the primary loan (80+%) via the low interest CW-SRF loan program, however, this program is not covered in the SID statutes. But, we have also paid 7% for all warrants issued to-date as interim financing since we have started, so that still is part of the picture. Our attorney is seeking the blessing of our Fiscal Agent and Bond Counsel; who ultimately approves all SID financial transactions, because the last $2 Million plus will be funded by the Fiscal Agent selling bonds. If we find out and get any firm idea before our meeting [as of Tue, 7/28, all except one party have okayed the 5 to 5 1/2 per-cent rate--it is looking good!], I'll try and post something to let everyone know under SID News on the lake website at: www.jlake.org otherwise and most likely, it will be posted after the meeting and also listed in the "Official Billing" done by the County around the 25th to 27th of this August. All initial payments go to the respective County Treasurers and are due within 50 days of the Levy date (August 12th) or more simply stated, BEFORE October 1st.