BLUE Section - payment information

A flyer was recently distributed to Blue section residents, purporting to show how the special assessment for the Blue section roads will be paid over time. The information in the flyer includes a mathematical error that significantly overstates the total interest that would be paid if a resident chooses to pay the assessment over 15 years. The purpose of this post is to provide a clearer picture, based on the current interest rate environment, of how the special assessment will be paid over the 15 years.

See below for an estimated payment schedule for the Blue section assessment.

A few notes on the calculation:

1. The special assessment will be paid in equal installments of principal over 15 years, plus interest at the bond rate plus 1%. We will not know the bond rate until the project starts (if approved) in spring/summer of 2024.

2. The rate used in the calculation is based on recent Township bond offerings, plus 1%.

3. Residents will have the option to pay the full assessment up front to avoid any interest cost. Residents can also prepay the remaining principal balance on the assessment during the 15-year period.

4. The calculation is based on the Road Commission's estimate of the Blue section cost per parcel. The actual assessment will be based on the winning bid after the Road Commission competitively bids the project.

We hope this clarifies how the estimated Blue section assessment would be paid over time, if approved. As always, residents with questions can contact the Village offices at 248-594-8376.