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Page 3 <br /> 5 . What if a portion of the project is cancelled? <br /> If the project providing sewer to your property is <br /> ordered by the City Council , the special assessment set forth <br /> in the assessment roll will then be certified to the county to <br /> be collected over the next fifteen (15) years along with your <br /> general property tax , commencing with the taxes due and payable <br /> in 1981. <br /> If the portion of the project providing sewer to <br /> your property is not ordered by the City Council , then the <br /> special assessment against your property will be cancelled and <br /> not certified to the county . The City will then stringently <br /> enforce the on-site Septic System ordinance. <br /> 6. What will the interest rate be? <br /> It is the bond consultant ' s recommendation to sell <br /> the bonds with a fifteen (15) year payback . The consultant <br /> anticipates that the bonds will be purchased to yield an <br /> interest of 8 - 8-1/2% annually to the bond buyer . Minnesota <br /> statutes provide that a City may sell bonds up to an interest <br /> rate yielding 12% and then add 1% in addition thereto , for a <br /> total of 13% interest on the special assessment . <br /> Because the City expects the bonds to be sold at <br /> 8-1/2% interest , the City will charge only 9-1/2% interest on <br /> the special assessment . The 1% difference is necessary to pay <br /> for the cost of processing the special assessments ar�d roll <br /> throughout the fifteen (15) years and to protect the City <br /> against tax forfeitures . <br /> 7 . What will the interest and principal cost be to me <br /> each year? <br /> Based upon all of the above assumptions , the <br /> approximate principal and interest for each of the 5 special <br /> . assessment amounts is set forth in Exhibit A attached hereto . <br /> As you know, the interest is deductible for tax purposes . <br /> The total annual cost of the special assessment to <br /> you , is still far less expensive than having to pay for holdin� <br /> tanks , the monthly cost of pumping the tanks , and/or repair <br /> costs for on site septic systems . Moreover , the benefit <br /> conferred upon your property because of the municipal sewer can <br /> be realized upon the eventual sale of the property . <br /> Thank you for your cooperation . <br /> Very truly yours , <br /> Mayor and Ci ty Counci 1 <br /> of the City of Orono <br />