Committee backs calling bonds early to lower assessments for Highway 101/Oxnard Boulevard improvement district

The Finance Governance Committee voted unanimously on Dec. 10 to recommend that the City Council call limited-obligation improvement bonds ahead of schedule for the Highway 101/Oxnard Boulevard interchange improvement district and apply the remaining improvement fund balance to reduce principal, producing annual levy credits for property owners.

Committee members were also asked to authorize a $16,500 budget appropriation in Fund 500, subfund 505-0301 to cover the administrative costs of closing the improvement fund, performing a final rebate calculation and approving a declaration of surplus by resolution.

The recommendation forwards staffs option 2 to the City Council. Anthony, a city staff member presenting the item, described the improvement fund as "specifically the money that was used to actually construct the improvements in question," referring to work at the Highway 101/Oxnard Boulevard interchange just outside River Park. He said staff favored calling the bonds ahead of schedule to reduce outstanding principal and then providing levy credits for the remaining life of the bonds, which lowers annual assessments for current and future property owners in the district.

Staff presented three options: 1) apply the entire remaining fund balance to the 2025926 assessment levy, which staff said would lower that years levy by about 93%; 2) call bonds ahead of schedule and apply the remaining funds to principal, then provide annual levy credits (staff recommendation); or 3) call bonds and continue levying at the current rate while applying excess levy receipts each year to the principal, shortening the life of the bond and producing the largest cumulative dollar savings but delivering little immediate relief to current property owners. Staff estimated the remaining life of the bonds at roughly seven years if the district follows the current levy schedule.

Member Turan moved to accept staffs recommendation (option 2) and Member Basuah seconded. In a roll-call vote the three committee members present Member Basuah, Member Turan and Chair Zaragoza voted aye and the motion carried 3-0. The committees action is a recommendation to the City Council; the council must adopt a resolution specifying the chosen option before any bond calls or levy credits are implemented.

Clarifying details discussed in the meeting included the $16,500 appropriation amount, the fund identifier (Fund 500, subfund 505-0301), the district location (Highway 101/Oxnard Boulevard interchange near River Park) and the three discrete disposition options presented. The staff presentation noted the trade-off between immediate assessment relief (option 1 and option 2) and maximum lifetime savings (option 3). The committee and staff confirmed that counsel and a formal resolution to the City Council are required to finalize the disposition.

The committee had no public speakers on the item. The matter will return to the City Council for final action and resolution language specifying the selected option.