[Advogado]

Has anybody figured out the implications for Villagers of this Official Statement regarding the issuance of tax free bonds by the North Sumter Utility Dependent District?
http://emma.msrb.org/EA446587-EA346613-EA742508.pdf

Frankly, I have not figured it out, but it looks as though the Developer's Utility Company is going to sell its water system to a special governmental district that is also controlled by the Developer and then have the district issue tax-exempt bonds to pay for the purchase. This is the same type of transaction now under investigation by the IRS, with the IRS alleging that the assets were grossly overpriced in the transactions under investigation. The alleged overpricing with respect to the Developer's sale of recreational assets to the Center Districts is also the same issue that led to the class-action lawsuit against the developer (which the Developer finally settled for $43 million).

Hopefully, the water-system assets here are going to be priced on an arm's-length basis. Otherwise (apart from a whole new potential IRS issue), our water bills will sky rocket. The numbers in the Official Statement are disturbing, indicating debt-service costs to each home of about $600/year. I.e., $12,000,000 principal + interest / 20,000 homes. This comes out to $50 a month per home, and that $50 will not cover the actual cost of the water and of operating expenses.

Does anybody have a full understanding of what is going on?

[swrinfla]

Understanding? Frankly, no!

But, then again, is it going to really, really impact upon me and my lifetsyle?

So far, I have absolutely NO IDEA. And, at the same time, I am honestly not terribly concerned!

Should I be?

SWR

[elevatorman]

I thought the sale was to the CDD. The CDD will be controlled by the elected people from District 5, 6, & 7.

[Hancle704]

Hope this is not like what happened with the sale of the trash collection business and the addition of recycling pick ups.

I thought the goal of recycling was to reduce tipping fee charges and prevent recyclable items from winding up in landfills. I expected recycling to either return a profit or at least reduce overall costs. Boy, were we wrong.

In TV, we started recycling but it came with an added cost to homeowners for once a week pick up and the special bags we must purchase and use. A significant amount of what was formerly waste now winds up being recycled yet there has been with no reduction in price of trash pick up costs and we were hit with the cost of recycling. Go figure!!!

[chuckster]

My monthly trash pickup was 14.95 in 2005 and is now 16.92. I don't consider that excessive (1.97 increase in 5 years) to protect our environment. Oh and even adding in the cost of clear recycling bags is just my part to extend life of landfills by eliminating the recyclables.

[swrinfla]

chuckster:





SWR