After several months of negotiations and working with the Kingston National Bank, the Green Township Board of Trustees have finally reached an agreement to settle the Kinnikinnick Sewer District debt. 

In 2008, the Courts ruled that the debt between the KSD and the Bank was valid and that the District was liable for the repayment of the loan.  Since the District had never really gotten off the ground and subsequently had no income, the Courts were prepared to assign an outside agency to assess the property taxes of the residents in order to settle the lawsuit.  In addition to the settlement of the lawsuit, the amount would have also included the costs of performing the assessment which was estimated to be around 50% to 60% of the original loan amount.  Although the numbers were never officially figured, it was estimated that this could have been as high as $700 per parcel located within the defined boundaries of the District.  As many of us know, the added burden of paying an additional $700 in property taxes could be devastating during a time of uncertainty with the economy. 

In order to avoid a Court ordered assessment, the Board consulted with Prosecuting Attorney Mike Ater regarding the legal aspects of the Township absorbing these costs.  After his review, it was determined that the Board could assume the responsibility of the repayment of the loan if they so desired.  With that, the Board acted accordingly and started negotiations with the Kingston National Bank. 

After well over a year from the original Court judgment, in November 2009, the Board entered into an agreement with the Bank to repay the original loan amount less any interest that had previously accumulated.  The repayment will be made through the combination of a $200,000 loan at 2% interest over the period of 20 years coupled with an up front payment of just over $32,000. 

Although it may not be the outcome that we had all hoped for, we're glad that it has finally been settled without any assessments or additional taxes being levied on the residents of Green Township.