Could everyone write one simple essay about something that once happened in Saltaire…that they saw or were a part of…and put it on one big website? Somebody should collect a lot of stories before we all forget. Otherwise it is like a line in “On The Beach” : The history of the war that now would never be written.” -(JO'H)

Friday, December 19, 2008

Village to finance replenishment project with $2,750,000 bond-anticipation note, bonds to be issued later. Mayor: "modest" tax increase possible

The Village of Saltaire 2008/2009 beach re-nourishment project is ready to proceed, according to a December 2008 issue of the “Saltaire News,” currently posted on the official Village website.

Saltaire is participating in what Mayor Scott S. Rosenblum describes as an “eleven community cooperative venture that is certainly the largest of its kind ever on Fire Island…”

"The Village has been preparing for and working towards this project since 2006, when the beach survey showed that only 50% of the sand from the 2003/04 project was left in the system of the western end project communities," according to the Village website posting "From the Mayor."

As for the cost of the project to the Village of Saltaire, “The initial upfront cost of $2,750,000 for the project will be financed by a 6 month bond-anticipation note while we wait for the final response regarding FEMA reimbursement,” according to the “Saltaire News” posting. After the FEMA response, the Village plans to issue long term bonds with a maturity of up to eight years.

Although the Village estimates that the overall cost of the Saltaire project to be approximately $2,750,000,” the posting indicates that “the net project cost to the Village after reimbursement should be reduced to approximately $1,750,000.” The source of reimbursement cited by the Village in the Saltaire News posting is FEMA, which has issued a preliminary approval for $900,000. The posting article does not mention the source of the extra hundred thousand dollars needed to bring the total reimbursement to a million dollars.

The posting states that the cost of the debt service for the project will be “anywhere between $275,000 and $500,000,” per year, with a “best estimate” that the annual debt service will run $300,000 per year, which “may require a modest tax increase to fund the additional debt service of the project.”

Presently, the Village is paying about $175,000 of annual debt service on bonds from a 1994 beach project and $290,000 per year for a 2003 beach project, according to the Village News, which noted that the 1994 bonds will retire in 2009 and the 2003 bonds will be paid off in 2011.

For full PDF copy of the Village post, please follow this link:

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