Bonds for Edgelea project to be issued

Wednesday, February 27, 2013

The repaving of the Edgelea Subdivision cleared its final financial hurdle recently with an ordinance giving final approval for the sale of bonds for the project.

The Putnam County Council had previously passed a resolution giving preliminary approval, but the ordinance made the plan official.

The issue has been before the council and commissioners a number of times previously. Each time, councilmen have expressed misgivings about pledging the money to the project.

On the other hand, they have always given the county's approval because homeowners in the area are footing the lion's share of the bill.

The project will repave the entire neighborhood with the homeowners paying 75 percent of the cost.

Under terms of the ordinance, the cost of the project is not to exceed $1.7 million, time period not to exceed 20 years and interest not to exceed 6 percent.

The project cost has been estimated at $1.4 million, and the interest rate is expected to be lower.

Although the county is on the hook for only 25 percent of the cost, these are county-issued bonds, meaning it is Putnam County's responsibility to collect the homeowners' money and repay the bond company.

The 75 percent will come from a yearly assessment on each Edgelea property, estimated to be in the neighborhood of $625 annually.

The remaining 25 percent, an estimated $25,000-$30,000 annually, is likely to come from the County Economic Development Income Tax.

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