SSA Questions & Answers
SSA Fact Summary 03/19/08
Neumann Homes
The Fall 2007 bankruptcy of Neumann Homes only involved 104 of
the total 296 lots in the Meadows of West Bay. All SSA revenue
calculations for the proposed SSA are based upon the current
(2007) land use / Equalized Assessed Value (EAV), and not the “built–out” or
projected Equalized Assessed Value (EAV).
The EAV that is assigned to the Neumann Homes lots represents only
1.3 % of the total EAV for all properties included in the proposed
SSA.
Even in bankruptcy, and under an SSA, these 104 Neumann parcels
will continue to be taxed and if unpaid, the County will place
the properties into a delinquent tax sale. The taxes will continue
to be paid, either by Neumann Homes, or whoever purchases and pays
the taxes through the sale administered by McHenry County.
Referendum
Each Wonder Lake subdivision has a delegate representing every
one hundred lots in their subdivision. This is a higher level of
voter representation than any unit of government.
Through their delegates and directors, each of the individual subdivisions
within the SSA voted whether to authorize the MPOA to pursue the
SSA to fund dredging. This vote passed by a 60% majority.
The McHenry County States Attorney has confirmed that no legal
mechanism exists for conducting a referendum.
The SSA process has a mechanism that provides both voters and non-resident
landowners an opportunity to stop the SSA.
Sunrise Ridge Estates
Since its creation, Sunrise Ridge Estates has access to Wonder
Lake on an SRE owned waterfront parcel established by the developer
of SRE. The residents of SRE have chosen not to develop a boat
ramp, despite numerous opportunities over the past 15 years.
The MPOA has offered to work with SRE to help overcome any U.S.
Army Corps of Engineers wetland issues required to build a boat
ramp. SRE has not taken advantage of this offer.
The MPOA has offered to consider the potential withdrawal of SRE
from the SSA, provided it was done in a manner consistent with
the individual property rights of SRE landowners; SRE subdivision
by-laws and covenants; and MPOA by-laws and covenants. Since the
last meeting between SRE and MPOA, SRE has not responded with a
specific proposal.
Sediment Quality
As documented in the March 16th issue of the Northwest Herald,
on-going attempts to characterize the sediment in Wonder Lake
as “polluted” have been disproven. LINK http://www.nwherald.com/articles/2008/03/16/news/local/doc47dce841144e3452630028.txt
In addition to the sediment samples taken over the past 12 years
by the MPOA consultant, which confirmed no sediment quality problems
exist, additional sediment samples will be taken at the direction
of the Illinois Environmental Protection Agency in order to secure
the required permits.
The need to dredge Wonder Lake has been recognized since 1964,
unfortunately, the tendency was to keep putting things off “for
a few more years”.
Due to watershed planning efforts over the past 13 years, the volume
of sediment coming into Wonder Lake has reduced the average annual
flow of sediment into Wonder Lake from approximately 33,000 cubic
yards per year to approximately 12,000 cubic yards per year. Dredging
at this time makes sense as a significant reduction in sediment
loading has occurred.
Water Depths
The total amount of sediment to be removed from Wonder Lake is
close to three million cubic yards. Under the proposed one-time SSA, only one million cubic yards will be removed. The MPOA consultant
identified the West Bay and South end of Wonder Lake as the areas
most impacted by accumulated sediment and/or shallow water depths.
Removal of sediment from these areas will increase water depths,
reducing the potential for sediment resuspension from boat and
wave action. This accumulated / resuspended sediment negatively
impacts on water quality throughout lake. The removal of one million
cubic yards of sediment and associated nutrients will also benefit
the entire lake, not just the dredged areas.
Project Administration
All contractual / financial requirements of the project will be
handled by the Village of Wonder Lake. This includes any financial
reporting or audits required by law, or by the funding entity.
Cost to SSA Participants
There are approximately 6,500 lots with deeded or geographic access
to the lake, and these are the properties proposed for inclusion
in the SSA. It was determined that using the Equalized Assessed
Value was the most equitable means of allocating the project
cost.
The average home in Wonder Lake has a market value of just under
$200,000. Should the SSA pass all of the statutory requirements,
the cost to the owner of the average $ 200,000 home would be a
one-time expense of $1,887.00 or $149.00/year
for 20 years. Additional
market value / SSA cost information is presented on the following
page.
Over the 20 year period, this $ 149 / year payment would equate
to $ 2.86 / week, or $ 0.41 / day. This seems to be an affordable
amount to fund an activity that will preserve and enhance the
property value of SSA participants.
Seniors / Low Income
The MPOA is also working with local financial institutions to create
a low interest loan program for landowners who wish to make the
one-time upfront payment, but would find difficulty making the
upfront payment at one time.
Using the guidelines established by the Department of Housing and
Urban Development HUD, qualifying low income and very low income
property owners will receive either a 40% or 60% rebate reduction
in their SSA assessment.
For the Wonder Lake area, a two person family earning $ 47,700
would be considered “low income’, and a two person
family earning $ 30,150 would be considered “very low income”.
This reduction would apply whether the landowner chose to make
an up-front, one-time payment, or made payments over the 20 year
bond period.
Using the “typical” $ 200,000 home at the 40% rebate
level, the net cost to a low income landowner: Upfront payment
= $ 1,132. 20 Year SSA payments = $ 89.40 / year; $ 7.45 / month;
$ 1.72 / week; or $ 0.24 / day.
Using the “typical” $ 200,000 home at the 60% rebate
level, the net cost to a very low income landowner: Upfront payment
= $ 755. 20 Year SSA payments = $ 59.60 / year; $ 4.97 / month;
$ 1.15 / week; or $ 0.16 / day.
$5,932,730 at 5% interest for 20 years, Tax rate = $0.224/$100
EAV
Market
Value
|
Equalized Assessed
Value
|
|
Up-front Payment
No SSA
|
$ 20,000 |
$ 6,667 |
$ 14.93 |
189.00 |
$ 40,000 |
$ 13,333 |
$ 30.00 |
377.00 |
$ 75,000 |
$ 25,000 |
$ 56.00 |
708.00 |
$100,000 |
$ 33,333 |
$ 75.00 |
943.00 |
$125,000 |
$ 41,667 |
$ 93.00 |
1,179.00 |
$150,000 |
$ 50,000 |
$112.00 |
1,415.00 |
$175,000 |
$ 58,333 |
$131.00 |
1,651.00 |
$200,000 |
$ 66,667 |
$149.00 |
1,887.00 |
$225,000 |
$ 75,000 |
$168.00 |
2,123.00 |
$250,000 |
$ 83,333 |
$187.00 |
2,358.00 |
$275,000 |
$ 91,667 |
$205.00 |
2,594.00 |
$300,000 |
$100,000 |
$224.00 |
2,830.00 |
$350,000 |
$116,667 |
$261.00 |
3,302.00 |
$400,000 |
$133,333 |
$299.00 |
3,773.00 |
$500,000 |
$166,667 |
$373.00 |
4,717.00 |
Watershed Benefits
As documented through the efforts of the Nippersink Creek Watershed
Planning Committee (NCWPC), the Nippersink Creek watershed, both
upstream and downstream of Wonder Lake is a natural resource
rich area. Its watershed includes more than 25% of the 610 square
miles within McHenry County’s borders. The
proposed restoration of Wonder Lake would:
Preserve the capability of Wonder Lake to be a proactive stormwater detention
facility, as mentioned in the McHenry County Comprehensive Stormwater Management
Plan;
Protect and preserve the sediment trapping efficiency of Wonder Lake
in a more confined area of the lake, facilitating future maintenance dredging,
while also minimizing the sediment pollution impact to downstream properties;
Protect and enhance the water quality of Wonder Lake, the Nippersink Creek,
and the Fox River, a source of drinking water supply for downstream communities;
Serve as a catalyst in funding and implementing the twenty three million
dollars in water quality protection enhancement projects recommended in the
2007 Nippersink Creek Watershed Plan (www.nippersink.org),
and provide funding leverage for up to eight million dollars in federal
funding coming into the watershed;
Protect and enhance the integrity of a significant
portion of the Nippersink Creek Watershed.
