Q:  What’s happening with the dam loans?

A: The initial estimate from Garden State Engineering to rehabilitate the dam was $393,177.  In 2004, the LWPOA successfully applied for a low interest loan from the state.  Just recently, Sepember of 2007, the township agreed to cosign the loan with us.  Additionally, last October, when the new board was elected, we were informed from several sources that the initial estimate would not cover the cost of rehabilitation.  Therefore, the LWPOA sought a new engineering firm to provide us with a more accurate assessment.  Civil Dynamics estimated the cost to run around $900,000.  This cost is more in line with the size and scope of similar projects around the state.  The LWPOA also sought an additional loan from the state to cover the difference.  We are awaiting to hear from the DEP if we are awarded any funds from this second application.

Q:  Why was the cost so far off?

A: The cost is much larger because the entire length of the dam must be concrete, not like many of the earthen dams around the area.  State regulations require the dam be higher than the 100 year flood event.  If the dam were that high then Maple Avenue would flood.  Since the dam cannot be higher than the 100yr flood, it must be concrete to prevent the dam from failing if it is overtopped.  The entire top and much of the back slope of the dam will be reinforced with concrete and rock adding to the cost.  Additionally, over the course of 3 years, construction costs have increased considerably owing to the increase in the estimate.

Q: How does the loan get paid back?

A: The loan will be paid back by the Wanda community.  The Vernon Tax assessor will determine the properties that benefit from the lake, and assessments will be added to annual tax bills over 20 years.  For a loan of $900,000 at 2% interest, the yearly payments will be approximately $54,636.  If there are approximately 250 property owners in the community, this would add approximately $220 to an annual tax bill, if the assessments are spread evenly. From what we understand, the Township has done this one of two ways, evenly as described or based on proximity to the lake where lake front properties will pay more. Ultimately, however, the tax assessor will determine how this is done and input from the community will be gathered when the assesment notices are sent by the Township.

Q:  Is the assessment different than dues?

A: Yes, the assessment is for just rehabilitating the dam and is separate from being a member of the lake.  Everyone in the community will benefit from the lake by having a cohesive, non-mandatory lake community to join in addition to the benefits of increases in property values.  However, the lake is owned and maintained by the LWPOA that has separate expenses (e.g. taxes and maintenance).  The major reason we can only allow members and their guests is for insurance purposes.  Our policy covers and is paid for by members and their guests.  Therefore, use of the lake is restricted to dues paying members.  Currently our dues is $300 per year.

Q:  Even while the lake is low, can we still use it.