The Lake Altoona Rehabilitation District will hold a special meeting on Thursday, January 21, 2016, at Seymour Town Hall in Eau Claire, WI, to present financing options for the River and 5 Mile Creek Delta dredging.
“At this special meeting we will be considering and voting on borrowing money and new tax levy to pay the indebtedness, ” said Paul Johnson, the Lake District Board Chairperson.
Before the board and individuals who own property in the tax district are three options to consider. Each property owner can vote for one option only. Options 2 and 3 will require new borrowing and tax levies until the year 2026.
Option 1: No dredging project undertaken during drawdown. This option continues the current debt repayment mil rate of 2.1 and will pay off all current debt in 2019.
Option 2: Total dredge projects undertaken during drawdown not to exceed $1 million dollars. Borrowing to support this option will be through state trust fund loan at 3.25% for a period of 10 years.
With this option, the current principal and interest obligation to support this will remain at the current debt levy amount which is approximately $175,000 per year which equates to a debt repayment mil rate of approximately 2.1
This basically means that the current amount that the district collects and uses for debt repayment will not change, but will be extended until 2026, rather than being paid off in 2019.
Option 3: Total dredge projects undertaken during drawdown not to exceed $1.3 million dollars. Borrowing to support this option will be through state trust fund loan at 3.25% for a period of 10 years.
With this option, the current principal and interest obligation to support this will increase the current levy amount to approximately $210,000 per year which equates to a debt repayment mil rate of approximately 2.5.
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