Palm Beach Daily News: “Palm Beach: Property owners can pay early, avoid utility assessments”

Property owners have the option to prepay the assessments for town-wideutility undergrounding beyond Sept. 1, Palm Beach officials said last week.

Prepaying the cost of annual assessments can save a lot of money over 30 years, according to the town. The early payments enable owners to avoid interest on debt and collection fees (2 percent the first year and 1 percent in following years) over the three decades.

For example, President Donald Trump’s Mar-a-Lago Club’s prepayment option is $449,564. Annual assessments for the club would be $28,869, amounting to $866,070 over 30 years, according to the property search tool on the town’s web site, undergroundinginfo.

More on the Palm Beach utilities undergrounding project

For Palm Beach Public School, for example, the prepayment is $143,860. Annual assessments over 30 years are $9,238, amounting to $277,140. The Episcopal Church of Bethesda-by-the-Sea can prepay for $179,825 to avoid annual assessments of $11,547, amounting to $346,410.

Those who opt not to prepay will see their first annual assessment on their November property tax bill.

The town informed owners in a July 31 letter that those who wish to pay in full have until Sept. 1 to do so. That would give the town enough time to work with the Palm Beach County Tax Collector’s office to ensure that the annual assessment does not appear on November tax bills and cause confusion.

But Town Manager Tom Bradford told the Town Council last week that’s it is still possible to prepay after Sept. 1. Property owners can do it anytime up until the project is funded by the issuance of bonds to pay for the undergrounding project. That could be as long as three years from now, Bradford said.

The town is using short-term financing through banks to pay for up to the first three years of the project. The Town Council opted for interim financing to keep the project on track until three lawsuits, from residents challenging the March 2016 bond referendum and assessment methodology, can be resolved.

“So long as the town has not segued from short-term financing to bonds, property owners can submit prepayment at any time,” he said.

As of Friday afternoon, the town had received $2,145,057 in prepayments for about 200 parcels, according to Underground Utilities Coordinator Steven Stern.

Assessment prepayments are being held in escrow until the lawsuits are resolved, according to the town.

Councilwoman Julie Araskog said an email is circulating telling people that, if they prepay, the town can come back and demand more money from them later on.

Bradford said that isn’t true. Even if the project were to exceed its $90 million budget, that will not affect those who have prepaid, he said.

“If you prepay [by Sept. 1] you sidestep all interest and all fees,” he said. “You have no further obligation to the town. It is over for you if you prepay.”

Despite the town’s effort to notify all property owners, Mayor Gail Coniglio said some seasonal residents will return in November and say they weren’t aware they had the option to pay in advance.

Bradford said the town sends out email updates about the project, including the prepayment option, and will soon send out postcard about the prepayment option in hopes of reaching those who don’t use the internet.