Refinancing of special tax bond passes council

IMPERIAL — The issuance of a special tax refunding bond that saves significant money for residents was approved by the City Council here on Wednesday.

The council voted unanimously 5 to 0 for resolution 2016-41 to refinance an $8 million bond for the Monterey Park project. This was the fourth Community Facilities District created since 2006.

A CFD was created by the 1982 Mello-Roos Act that allows any county, city, special district or joint powers authority to create a finance mechanism to fund infrastructure projects and for parks, libraries, museums, fire and ambulance services, noted Marshall Linn, chief executive officer of Isom Advisors, a consultancy.

“This reduced average annual special taxes significantly,” said Linn. “It’s an incredible win for the property owners. With rates at an all-time low we passed the savings on to homeowners.”

Property owners should save $1.25 million with this refinancing and over $5 million from all four CFDs combined.

The council also approved 5 to 0 the Savannah Ranch final map and related documents. This is the actual legal document that creates the lots in the subdivision. There are 61 lots of single-family homes. Now that a legal subdivision has been created the developer, Martin Coyne will submit plans for houses, noted Jorge Galvan, interim city manager. Construction is expected to begin in approximately six months.

A change order for the Neckel Road sewer and water improvement project passed 5 to 0 also. The sum of $120,723.41 was approved to install 180 feet of underground drinking water pipe.

Funds were tapped from the capacity fund specifically used for infrastructure, noted Galvan. The project is already underway and has a quick turnaround.

And by a 5 to 0 vote the council approved submittal of a waiver petition/letter of support for continuance of Mokulele Airlines as the essential air service for Imperial County Airport, to the Department of Transportation.