The Below FAQ answers some of the questions addressed in the meeting on Tuesday the 29th.
- What is the cost difference between initial Estimate of Cost and Final Estimate of Cost after bidding is complete?
- In 2018, the two alleys constructed came in approximately 20% less than the initial Estimate of Cost. Again, this is not a guarantee that costs will reduce, it is the most recent experience in last year’s special assessments.
- Why is the interest rate set at 6%?
- Typically, the Village cannot collect payments on the special assessment until after the project is completed and receives approval to collect from the circuit court. Due to the timing and nature of constructing these special assessments, there is a need to finance the construction. The State limits the interest that property owners can pay on these types of installments, currently the maximum is set at 9% annually. Historically, the Village has applied a rate of 6% to these special assessments.
- Can I pay-off the installment at any time?
- Yes. However, interest will begin to accrue 60-days after the issuance of the first voucher of the Special Assessment. To pay zero interest, the total payment must be made in that 60-day window.