Public meeting on West Street assessment district highlights costs, ballot timeline and bond options

Laguna Beach held a public meeting on July 22 to inform property owners about the West Street Underground Utility Assessment District, updated construction and financing figures and next steps for ballots and municipal bonds.

Capital program manager Pierre Sawaya told the Council that Southern California Edison (SCE) revised its construction estimate down by roughly $800,000 after a competitive contracting process; combined with revised bond financing assumptions, staff reported roughly $1.0 million in project savings since May 20. That change reduced estimated individual assessments on some parcels by about 15–20% from earlier projections.

Staff also summarized three bond-purchase options for the district’s estimated $4–5 million borrowing need: a public offering (typical, 25-year term), a private placement (bank sale, typically limited to 20-year term), or a city purchase (the city carries the bonds for a 25-year term). The staff presentation compared interest rates, issuance costs, marketability and administrative burdens for each option. Staff noted public offerings incur higher underwriting and disclosure fees but are conventional and spread risk; private placements can lower issuance costs but typically carry shorter terms; city-held bonds could reduce fixed costs but would expose the city to longer-term liquidity and investment-policy implications.

City Treasurer Laura Parisi later briefed the council on the city’s long-term investment outsourcing and the constraints of city investment policy. During public comment, speakers urged council to approve the district to improve fire safety and reliability; others raised concerns about the petition process and transparency and asked whether the city could prioritize funding of certain evacuation-route segments without imposing assessments. Several speakers also requested the city’s deferment program for low-income or fixed-income homeowners be prominently explained. Pierre Sawaya said ballots will be mailed to property owners this week or early next week and will be opened and tallied at an open public hearing on September 23. If ballots are successful, staff anticipates issuing bonds in December 2025 and construction in spring 2026.

Councilmembers asked staff to bring a follow-up analysis before any city-held bonds are considered: specifically, the council requested input from the city treasurer and the investment committee about the 5% internal‑investment limit and the fiscal implications of the city carrying long-term, 25‑year, nonmarketable bonds. That request was made because the policy history around the city’s 5% limitation is unclear in recent policy updates. Staff said it would return with further analysis and that property owners will receive ballots this week ahead of the September tally.

No final financing decision or construction contract was approved at the meeting; the council’s direction was procedural and intended to increase transparency and allow time for additional review of city purchase options before any bond sale.