On July 6, the Village of Bear Lake placed a display ad in the Manistee News Advocate which stated the intent to seek $1.8m in Revenue Bonds to cover the prospective loan portion of a proposed $4.4m water system project. The repayment term of the prospective loan (increased from the original $1.4m) was set at 40 years at 1.85% interest spread over a guarantee of 158 accounts and necessitating a further guarantee of the General Fund.
Almost 20% of registered voters, in excess of a minimum 10%, have elected to exercise their legal right to file, within 45 days of publication, a petition to seek a referendum vote on this matter. Today August 5, receipt of the petition was acknowledged by the Village Clerk Cindi McPherson and a copy was also filed with Bear Lake Township Clerk.
If no request had been filed within 45 days of publication the electorate would have no further opportunity to seek alternative options for project financing.
March 11, 2016
Jeff Bair, President
Village of Bear Lake
PO Box 175
Bear Lake, MI 49614
SUBJECT: Water Project
Loan $ 1,463,000 (Section 6025); 1.875% Poverty Interest Rate; 40 Years
Grant$ 2,000,000 (Section 6025); $547,000 (Regular Funds)
Dear Mr. Bair:
This letter establishes conditions which must be understood and agreed to by you before further consideration may be given to your application. The loan and/or grant will be administered on behalf of the Rural Utilities Service (RUS) by the State and Area staff of USDA, Rural Development. Any changes in project cost, source of funds, scope of services or any other significant changes in the project or applicant, must be reported to an approved by USDA, Rural Development, by written amendment to this letter. If significant changes are made without obtaining such approval, Rural Development may discontinue processing of the application.
This letter does not constitute loan and/or grant approval, nor does it ensure that funds are or will be available for the project.”