Hydro Prepayment Question and Answer

SALMON BEACH POWER DISTRIBUTION

PARCEL TAX PREPAYMENT OPTION

Questions and Answers

What is the prepayment for?

In November, 2008, the owners of Salmon Beach voted to establish a service to construct electric power distribution. The tax for the power distribution is based on a flat rate amount for each parcel of land in the service area.

I want to prepay my share. When can I do that?

You can prepay on or before July 15, 2011. The deadline is 4:30pm on Friday July 15, 2011.

Where do I make the prepayment?

Payments can be made in person or mailed to the Regional District office located at 3008 5^th Ave, Port Alberni, BC V9Y 2E3. Please include the remittance slip with your payment. Payments must be received in the office on or before the July 15^th deadline.

How much will the prepayment be?

The prepayment amount is $3,407.47.

How much money will I save by prepaying?

If you do not prepay the parcel tax the annual payment will be dependent on the borrowing rate but is estimated to be $300.00 per year. Over the 20 year term the payments will accumulate to approximately $6,000.00, therefore you will save approximately $2,500.00 by prepaying.

If I sell after I prepay, can I apply to get a refund of my prepayment?

No. Your prepayment stays with the land and is non-refundable.

What happens if I do not prepay – can I change my mind later?

No, you cannot change your mind. If you do not prepay your share by July 15, 2011, your property tax bills from 2012-2030 will include a bill for your share, including the interest on the debt. This is due to the fact that the financing will be locked in after the July 15^th deadline.

I didn’t vote for the power distribution and I do not plan on hooking up the hydro, do I still have to pay a parcel tax?

Yes.

I have a vacant piece of property – do I still have to pay a parcel tax on it?

Yes.