[mjdollard]

The county is not paying for the roads in the new areas, the county is rebuilding/expanding their own roads. The tax increase is because the county had poor planning for future needs.
The developer builds the roads in the areas they are developing and then turns them over to the county - per the last independent audit of the county the developer turned over $39 million worth of roads to the county.
The bonds only cover specific assets - roads, water and sewer, sidewalks, street lights etc. It does not cover landscaping or recreation facilities, they remain property of the developer. The developer has periodically sold the amenities to the homeowners.
The higher bond costs is most likely due to higher construction costs.
And other posters are correct - not every county uses bonds, and you some states don't allow it. You may be familiar with TIF funding - Taxable Incremental Financing - that some states use, it is similar to these bonds.

[Dilligas]

Bonds are also there to provide amenity maintanence for the future.

[eweissenbach]

Originally Posted by Challenger

I have wondered about this since moving here in 2010. I believe that it is an intentional omission by the sales force to hide the total cost of the property. I have talked to several Villages sales people who do not even clearly understand the financial implications of the Bond for the buyers. It is in fact part of the total purchase consideration for the property. Any other explanation is clearly and provably wrong. I believe that sales people could be in jeopardy for not clearly stating this in their sale pitch and written materials

About six years ago I was viewing a resale open house and asked the Villages agent what the remaining bond was. She said $20,000, so I replied that the REAL asking price of the home was Price + $20,000. She shot me a look (there were other potential buyers around) and said "Oh you can't count the bond in the price, it is paid with the taxes and you will hardly notice it." I replied that, "You must think I'm an idiot if you think I won't notice and extra $1,800 added to my tax bill". I thought at that moment I would never use that agent for any of my transactions. Add to that the bond is non ad-Valorem, meaning not tax deductible, and on most property they are at a higher interest than a mortgage. I am not implying they are necessarily a bad thing, but they are something that should be fully disclosed and fully understood by buyers.

[kansasr]

I for one am tired of hearing the excuse, "but the increase only $1 a day for most residents".

The bottom line is the county commissioners are increasing the tax revenues by 39% in one year, despite a 2.8% annual population increase, according to the most recently available US Census numbers.

25% is coming from an increase in the millage rate being paid directly by residents, the additional revenue coming from increases in property values and new development.

It's not the impact of the increase on residents. It's the almost criminal mismanagement of country finances by the current commission that has resulted in a totally unwarranted increase in tax revenues.

[Chatbrat]

What is the current interest on the bond? reason for asking , would like to know how much we saved in interest by paying off the bond when we bought 9 years ago.

[Velvet]

I had to laugh when you said, the agent claimed that the bond was not part of the cost of the house. My agent also claimed it wasn’t. Although technically it isn’t. I just thought they were nuts and didn’t argue about it.

Just looked, at my area on a designer home the interest is 4.25% plus $82 administration fee, on the bond currently.

[Chatbrat]

BS, try and buy a house here without paying for a bond in isn't going to happen

[eweissenbach]

Originally Posted by Velvet

I had to laugh when you said, the agent claimed that the bond was not part of the cost of the house. My agent also claimed it wasn’t. Although technically it isn’t. I just thought they were nuts and didn’t argue about it.

Just looked, at my area on a designer home the interest is 4.25% plus $82 administration fee, on the bond currently.

A few years ago the bond interest was 6%

[Chatbrat]

I'm not an actuary so after how many years is the bod paid off and how much interest will you have paid, and if I'm correct the interest on the bond is not deductible

[Velvet]

The thing is they are fair and upfront about it. This is the bond on my home.

[NavyVet]

Originally Posted by eweissenbach

Add to that the bond is non ad-Valorem, meaning not tax deductible, and on most property they are at a higher interest than a mortgage.

So true. And that really sucks for 100% Disabled Veterans who are exempt from the Ad Valorem side of the tax bill.
Back in 2003, when the bond was 'only' $5000, we were told just think of it as part of your annual "property" taxes. Now with bonds of $30,000 plus, it's a huge chunk of the non-ad valorem bill every year. Though the interest we have to pay on those bonds is ridiculous, and I have paid off 2 bonds to get my tax bill down, I'm not paying off the 3rd one early. Selling 2 Bond Paid homes did not net that much difference in the price we got to make up for them.
Whether adding the cost to the price of a home or mentally considering it as a "property tax," new buyers definitely should consider the total cost which is over-inflated for what you get.

[Bogie Shooter]

Originally Posted by NavyVet

So true. And that really sucks for 100% Disabled Veterans who are exempt from the Ad Valorem side of the tax bill.
Back in 2003, when the bond was 'only' $5000, we were told just think of it as part of your annual "property" taxes. Now with bonds of $30,000 plus, it's a huge chunk of the non-ad valorem bill every year. Though the interest we have to pay on those bonds is ridiculous, and I have paid off 2 bonds to get my tax bill down, I'm not paying off the 3rd one early. Selling 2 Bond Paid homes did not net that much difference in the price we got to make up for them.
Whether adding the cost to the price of a home or mentally considering it as a "property tax," new buyers definitely should consider the total cost which is over-inflated for what you get.

So many other options.

[dewilson58]

Originally Posted by Velvet

I had to laugh when you said, the agent claimed that the bond was not part of the cost of the house. My agent also claimed it wasn’t. Although technically it isn’t. I just thought they were nuts and didn’t argue about it.

Just looked, at my area on a designer home the interest is 4.25% plus $82 administration fee, on the bond currently.

With the admin fee, the effective interest rate is 6%-7%. Good incentive to pay off early.

[Velvet]

Yes, and thank you for the calculation.

[Dond1959]

Originally Posted by Advogado

Did the sales agent disclose the Admin Fee that you pay every year? If so, could you explain it? (I honestly don't know the basis for it.)

As to your second point, the construction of NEW roads are necessitated by the Developer's massive expansion of The Villages. They should be paid for via the Developer's impact fee, not by the taxpayers.

On your first point, I don’t recall directly if the admin fee on the bond was disclosed or not, but the fee does not surprise me. Any bond issuance needs an agent to collect and distribute payments, keep accounting records and do other administrative tasks. This is not a unique fee for our bonds. It can either be buried in the interest rate and disclosed in the paperwork or a separate fee. You may think it is excessive but it is a normal part of a bond issuance.

On your second point about the roads, there is a regional road plan that has been agreed to by surrounding counties. My understanding is that is where the new roads will be built. Will it benefit the developer, absolutely. But it will also benefit those of us in the southern part of the county. My point is really to contrast areas where I lived before that built all the homes first and worried about traffic and roads second. Even if it is going to cause me some pain through increased taxes I am happy they are doing the roads before building homes.