Interest Only Is A Fudge

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Editor:

I read Bill Haney’s letter to the editor with a great deal of interest.

One of the myths surrounding the purchase of the Pine Water Co. and Strawberry Water Co. (water companies) is that the purchase would be “free.” The Pine Strawberry Water Improvement District (PSWID) in the past added credibility to this myth by remaining silent on whether or not the purchase would be “free.” It is refreshing to finally hear definitively from Bill Haney that the purchase will come at a price.

However, Mr. Haney still fudges as to the ultimate question as to how much the purchase of the water companies will cost. He says that PSWID has a money commitment from Compass Bank. Yet he will not tell the taxpayers for how much nor any of the terms. However, he has said that the money received from Compass Bank would be “interest only” for the first two years. The “interest only” statement should send up a red flag. An interest only arrangement, while relatively cheap in the first two years, ultimately costs much more in the end as many foreclosed home purchasers now realize.

I request that the PSWID board finally tell the taxpayers exactly how much the planned financial arrangements are going to cost the Pine/Strawberry water users in increased fees and increased taxes after the initial “cheap” two-year period. It is only with this information that the Pine/Strawberry residents can make an informed decision about whether or not they can afford to pick up the tab for the purchase of the water companies.

Bill Haney, you have told us that the purchase won’t be “free,” now tell us how much the purchase will cost.

Please stop fudging.

Bernice E. Winandy

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