[golf2140]

Originally Posted by TVMayor

On 6/27/1996 Village Center Community Development District purchased From Villages of Lake Sumter inc AKA �the developer� Tierra Del Sol golf course For $5,000,000.

Information from Sumter County.

Amen

Your info is 18 years old. Why post, Get a new torch to burn.

[Bogie Shooter]

Originally Posted by Steve9930

So which bond is on the tax bill, the ones for the infrastructure? Then which bond is the IRS questioning?

This is on your tax bill.
What is the Bond Debt Assessment for?

The bond debt assessment reflects each lot’s proportionate share of the cost of building the infrastructure within its District or for which its District has responsibility. It is the most equitable method of distributing costs between the properties that benefit from the infrastructure. Infrastructure includes storm water systems, underground pump stations, water retention areas, curbs, gutters, streetlights, transportation trails, underground piping, etc.

Go here to read all about the IRS Bond Issue.

http://www.districtgov.org/IRSupdate.aspx

[TVMayor]

Originally Posted by golf2140

Your info is 18 years old. Why post, Get a new torch to burn.

Because what somebody said did not happen happened 18 years ago. Does that clear things up for you?

[ilovetv]

From our DistrictGov.org website:

Village Center Community Development District (VCCDD) was created by Ordinance No.92-06 of the Lady Lake Town Commissioners under authority of Chapter 190, Florida Statutes, and is comprised of 166.82 acres of land within Lady Lake in Lake County, Florida. The District is comprised of commercial properties owned by The Villages of Lake-Sumter, Incorporated, and various other commercial entities.

Maintenance of the infrastructure is provided through an annual assessment to property owners based upon square footage of properties benefited. The assessment programs are managed through the Village Center District Accounting Department, and may be collected on the Lake County tax bill, by agreement with the Lake County Tax Collector, utilizing the uniform method of assessment adopted by the Board of Supervisors.

Governance of the Village Center Community Development District is accomplished by a five member Board of Supervisors, elected biannually, as described in Chapter 190.006, Florida Statutes. Inasmuch as there are no residential properties contained within the boundaries of the Village Center Community Development District, members of the Board of Supervisors will continue to be elected by the landowners of property within the boundaries of the District.

Among the services provided by Village Center Community Development District to residential properties within The Villages are security, fire and emergency medical first response (non-transport) services, recreational facilities and services, stormwater collection and distribution and treated effluent distribution, and executive golf. These services are paid for through the receipt of monthly contractual amenity fees paid by each residential property within the service area of the District, as described by the Declaration of Covenants and Restrictions applying to each residential property. Certain services provided are paid for through user fees.

If you have more questions, the District conducts informational sessions each week that are open to anyone wishing to attend.

Village Community Development Districts

[Mr.Kris]

Originally Posted by Steve9930

So which bond is on the tax bill, the ones for the infrastructure? Then which bond is the IRS questioning?

The bonds on the tax bill are for infrastructure - roads, sewers, etc.

The bonds for the rec facilities are financed (serviced) through the amenity fees.

[Mr.Kris]

Originally Posted by Steve9930

So which bond is on the tax bill, the ones for the infrastructure? Then which bond is the IRS questioning?

The bonds on the tax bill are for infrastructure - roads, sewers, etc.

The bonds for the rec facilities are financed (serviced) through the amenity fees.

The IRS is questioning the bonds for the rec facilities stating that they are "arbitrage" bonds.

[Steve9930]

Originally Posted by Bogie Shooter

This is on your tax bill.
What is the Bond Debt Assessment for?

The bond debt assessment reflects each lot�s proportionate share of the cost of building the infrastructure within its District or for which its District has responsibility. It is the most equitable method of distributing costs between the properties that benefit from the infrastructure. Infrastructure includes storm water systems, underground pump stations, water retention areas, curbs, gutters, streetlights, transportation trails, underground piping, etc.

Go here to read all about the IRS Bond Issue.

Village Community Development Districts

Thanks for the link.

[Steve9930]

Originally Posted by Mr.Kris

The bonds on the tax bill are for infrastructure - roads, sewers, etc.

The bonds for the rec facilities are financed (serviced) through the amenity fees.

The IRS is questioning the bonds for the rec facilities stating that they are "arbitrage" bonds.

Definition of 'Arbitrage Bond'


A debt security with a lower interest rate issued by a municipality prior to the call date of the municipality's existing higher-rate security. Proceeds from the issuance of the lower-rate bonds are invested in treasuries until the call date of the higher-interest bonds.

Arbitrage bonds are used by municipalities when they wish to arbitrage the difference between current lower interest rates and bonds that they may have issued at higher coupon rates in the past. This strategy, which enables them to reduce the net effective cost of their borrowings, is particularly effective when interest rates and bond yields are declining.


Investopedia Says
Investopedia explains 'Arbitrage Bond'


The chief attraction of municipal bonds is their tax exemption feature. Arbitrage bonds may qualify for a temporary tax exemption as long as the proceeds from net sales and investments are to be used in future projects. If, however, the project experiences a significant delay or cancellation, the municipality may be taxed.


I have way too much time on my hands......

[8notes]

Originally Posted by Steve9930

Definition of 'Arbitrage Bond'


A debt security with a lower interest rate issued by a municipality prior to the call date of the municipality's existing higher-rate security. Proceeds from the issuance of the lower-rate bonds are invested in treasuries until the call date of the higher-interest bonds.

Arbitrage bonds are used by municipalities when they wish to arbitrage the difference between current lower interest rates and bonds that they may have issued at higher coupon rates in the past. This strategy, which enables them to reduce the net effective cost of their borrowings, is particularly effective when interest rates and bond yields are declining.


Investopedia Says
Investopedia explains 'Arbitrage Bond'


The chief attraction of municipal bonds is their tax exemption feature. Arbitrage bonds may qualify for a temporary tax exemption as long as the proceeds from net sales and investments are to be used in future projects. If, however, the project experiences a significant delay or cancellation, the municipality may be taxed.


I have way too much time on my hands......

Thank you. I had no idea what this bond was.

[Steve9930]

So based on the link provided and after several cups of coffee to read through the Lawyerieezee. Here's the bottom line:

Between 1993 and 2004 Morse via the district issued $426 Million in what were supposed to be Tax Free Bonds. Lots of owners of the bonds.

The IRS says that Mr. Morse, clan, and friends were in total control and manipulated the district so as to stay in total control of the development. Something the IRS says is not how it should work. Because of this the IRS says NO NO on the tax free part and taxes should have been paid and they want their money.

The district says no we do not owe you taxes and we want relief under some lawyereezze section of the IRS code.

The IRS says that's not correct make your argument and we will pass it up the food chain for a decision.

I want to be one of the lawyers as they are getting super rich spending tax dollars and a billionaires dollars in fees.

So bottom line the district will be given relief or some one is going to pay the taxes on the interest paid from 1993 to 2004 for $426 Million in bonds.

I'm going back to my Jack and Coke my head hurts......

[Steve9930]

Gary should have never had George over for diner! That's were it went wrong.

[janmcn]

Originally Posted by Steve9930

So based on the link provided and after several cups of coffee to read through the Lawyerieezee. Here's the bottom line:

Between 1993 and 2004 Morse via the district issued $426 Million in what were supposed to be Tax Free Bonds. Lots of owners of the bonds.

The IRS says that Mr. Morse, clan, and friends were in total control and manipulated the district so as to stay in total control of the development. Something the IRS says is not how it should work. Because of this the IRS says NO NO on the tax free part and taxes should have been paid and they want their money.

The district says no we do not owe you taxes and we want relief under some lawyereezze section of the IRS code.

The IRS says that's not correct make your argument and we will pass it up the food chain for a decision.

I want to be one of the lawyers as they are getting super rich spending tax dollars and a billionaires dollars in fees.

So bottom line the district will be given relief or some one is going to pay the taxes on the interest paid from 1993 to 2004 for $426 Million in bonds.

I'm going back to my Jack and Coke my head hurts......

You have everything correct except one thing. It's not the "billionaires dollars in fees", it's the district that has paid the attorney close to one million dollars in fees.

[Steve9930]

Originally Posted by janmcn

You have everything correct except one thing. It's not the "billionaires dollars in fees", it's the district that has paid the attorney close to one million dollars in fees.

That's a very nice chunk of change. I'll bet they all have new cars......!