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The LID has landed
Just received my “proposed assessment” in the mailbox. (Counter-proposal: “Why don’t you take this LID, and . . . . reduce it?”)
And just received this email, from a baffled reader:
“I guess I’m confused. How did the city wide LID come into being in the first place? Was it voted on? If so, by whom? I’m asking because what keeps other cities from forming a city wide LID? They all have bad streets and are short of money. Can you imagine the cost if Seattle were to pass one?”
O.K., folks, please form a single-file, in answering his questions.
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on Tuesday, August 31st, 2010 at 3:18 pm and is filed under North Coast News.
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Robert, The road maintenance is supposed to come from the General Fund. We do get gas tax money for the roads. However, we are spending it elsewhere. Also, I would suspect that either a utility or levy will be around the corner for the roads. Lets see, we have 1.08 left until we hit the cap of 3.375. I guess we could ask for 50 cents per thousand for the roads. That is 691K per year. That should cover a few bottles of round-up.
Don, Take your number and subtract 25%. That will give you an idea of what it was supposed to be. The only question here is how do we benefit property owners by doing the right thing regarding city property. If the city has to pay for it’s property, all of it, then we pay for that in property taxes. Those are deductable. If it is in an LID we have no deduction. Even a few crums are worth it. Yes, we need to do what our former financial manager said we are failing to do: Live within our means. The city is here for the benefit of the property owners and residents. That is what we should be developing.
As a side note, it was nice to see Ken Mercer state that people wanted trails and places to walk. We should be developing our greenbelts and right of ways with simple paths made of dirt. That way people are not on the roads and in the path of cars. Simple and easy to do. No need for asphalt, concrete or anything but what we got, sand. Maybe this could be a Boy Scouts project. Who knows. Maybe a senior’s project from the high school. However, whatever we do, we do not need the engineers, consultants, and whole host of parasites we keep hiring. Even a boardwalk at the end of the concrete walkway would be nice. How many contractors would that take? Maybe get that skate park done. Hoquiam could maybe teach us a few things there too. They got grants to improve their parks.
I have no argument about the roads needing to be fixed. What I do have problems with (and continue to have) the way our city government does/doesn’t do things. How can you “forget” an eight million dollar interest fee? Why are our new roads falling apart already? Is anything in place for the MAINTENANCE of the roads – or do we just let them fall apart again and go through the whole stinking mess all over again? Where exactly were the city employees responsible for over site of the project? Why does Mr. Landfear still have a job? For that fact, why does anyone in our city government still have a job? Between a city council that does what it damn well pleases and a social club that extorts money from us, “living” in Ocean Shores is becoming taxing…
I’m a new property owner (in escrow) in Ocean Shores, but have been coming to Ocean Shores since the 60’s. I love the improvement in the street condition. According to the recommended assessment my share is 2,789 which appears to be on the lower end, but I think it is well worth it. I don’t know what the original assessment was since I was not an owner at that time.
Don
Yes, we received our lovely ‘proposed assessment’ today as well. I like your counter-proposal….where can I sign up? My husband is spitting nails, however I am simply copying more papers to send with my written protest. I’m still totally confused by the increase of 62% over our original ‘estimate’ loose term I am sure, but never-the-less….a 25% followed by a 10% for the bonds, which is, I am assuming, what they will offer us as a discount to pay it up front, would not equal the assessment they offer now for my consumption. So, hmmmmm….we say one thing and do it, without your approval, but when it comes right down to it, we will bill you whatever we d#*mn well please!!!??
This has got to stop Ocean Shores! No one has the money to pay for it, and robbing Peter to pay Paul is not the way to handle finances! STOP SPENDING OUR MONEY!
The city council approved it. They announced it, had hearings, told us it would cost $32 million and would be tightly supervised by staff. They did not hear from enough people protesting it to stop it per the LID laws in WA. Then they passed funding resolutions that all stated there was capitalized interest. Here is one example:
ORDINANCE NO. 828
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
OCEAN SHORES, WASHINGTON, AUTHORIZING THE
ISSUANCE AND SALE OF BOND ANTICIPATION NOTES IN
THE AGGREGATE PRINCIPAL AMOUNT OF $7,615,000 TO
PROVIDE INTERIM FINANCING FOR IMPROVEMENTS
WITHIN LOCAL IMPROVEMENT DISTRICT NO. 2007-01;
AUTHORIZING THE FORM, TERMS AND MATURITY OF THE
NOTES; CREATING A SPECIAL FUND AND A CAPITALIZED
INTEREST ACCOUNT THEREIN FOR THE PAYMENT OF THE
NOTES; AUTHORIZING AN OFFICIAL STATEMENT; AND
APPROVING THE SALE OF THE NOTES.
If you look at the document it clearly states:
(b) Capitalized Interest Account. There is hereby authorized to be established a special account within the Notes Repayment Fund to be known as the LID No. 2007-01 Capitalized Interest Account (the “Capitalized Interest Account”), which account is to be held by The Bank of New York Trust Company, N.A., as Depositary (the “Depositary”) and drawn upon for the sole purpose of paying the interest due and payable on the Notes from their date through
and including August 1, 2010. Proceeds of sale of the Notes (approximately $1,008,850) shall be deposited in the Capitalized Interest Account in an amount sufficient, together with proceeds of the investment thereof, to pay such capitalized interest when due. Money held in the Capitalized Interest Account shall be invested in legal investments for the City’s funds, and the investments shall be scheduled to mature in the amounts and at the times necessary to pay interest on the Notes from their date through and including August 1, 2010. On or before each interest payment date from February 1, 2008, through and including August 1, 2010, the Depositary shall transfer to the Registrar funds from the Capitalized Interest Account to make the payment of interest on the Notes due on such date. To provide for the proper investment and application of funds credited to the Capitalized Interest Account, the Finance Director or his designee is authorized to enter into a depositary agreement with the Depositary in form satisfactory to the Depositary and
approved by counsel to the City.
Even if they were confused, there was a definitions portion:
Capitalized Interest Account means the LID No. 2007-01 Capitalized Interest Account- within the Notes Repayment Fund authorized to be established and held by the Depositary by
Section 8 of this ordinance.