Highlands residents rally for lower fee assessment

Moorpark Highlands homeowners, disappointed they won't soon have a new neighborhood school, want the $15.8-million in special assessments they're supposed to pay for the school site put "back into the pot" to reduce their future fees.

The school was slated for construction on a 22-acre site north of downtown, but declines in enrollment and budget shortfalls forced Moorpark school officials to delay plans for the kindergarten through eighth-grade campus.

The homeowners are opposed to building a playground and ball fields at the site because of the financial impact on the bond fees that they pay.

"Moorpark Highlands homeowners are not going to fund non-essential facilities for the (Moorpark Unified School District.). That's not what the CFD (Community Facilities District) bond was intended for," said Veronica Bush, who moved from another local neighborhood to the Shenandoah community in 2006.

She had hoped her two children could go to the new school, which had been advertised by the developer.

"I believe we have a triangle of trouble," said Highlands resident Ron Howard. "Homeowners are stuck in the middle of unresolved issues between the city, the Moorpark Unified School District and the developer."

Much money is at stake with little accountability, Howard said. Questions remain unanswered and promises have been broken.

Each home in the Highlands pays a share of Community Facilities District bonds based on property size. The average assessment is $5,300 a year for 32 years.

Almost half of the CFD bonds paid by Highlands homeowners were to be used for the future school site. Since plans for the school have been put on hold, residents want the city to seize the $15.8 million allocated to the school and be used to pay down a portion of the remaining bonds to reduce their overall assessment, Bush said.

The balance of the CFD bonds are used for grading, streets, utilities, fees, landscaping, flood control, and park improvements.

The city and Pardee already agreed to build a 7acre community park with a soccer field and playground in the coming year, and Highlands residents object to the school district's plans to build similar amenities on the site that was slated for the school

Building ball fields and a playground on the site could also threaten the tax-exempt status of the city bond that is supposed to be used to purchase the parcel from Pardee Homes, developer of the Highlands.

The agreement was made before the decline in enrollment, but, according to Brown, MUSD will need the property in the future because large, flat sites that can accommodate a school campus aren't easy to come by.

"This represents one of the few, if not the only, acceptable site in Moorpark for the school district," he said.

Brown said he empathizes with the residents who are paying a large assessment for a school that might not be build for another 15 years.

The land transaction has been in escrow for about six months and the school district is waiting for the city to disperse funds for the purchase.

But MUSD doesn't plan to do anything that would jeopardize the tax-exempt status of the bonds, Brown said.

According to state law, the city has limited authority over school site construction and improvements, but it could be liable for back taxes on interest earnings, penalties and possible punitive damages if the bonds lose their tax-exempt status.

The city's ability to obtain bonds in the future could also be threatened, said Hugh Riley, assistant city manager for Moorpark.

The CFD bonds expressly limit use of the school site to a public school.

"Any other use could jeopardize the tax-exempt status of the bonds and subject the city to lawsuits, with potential damages in the millions of dollars," said Mayor Patrick Hunter in a letter to the Highlands residents.

City officials will meet with Pardee representatives at the end of the month to discuss the matter.

Pardee Homes could seek judicial relief if funds for the school site aren't released. The developer, who still owns the property, can't do anything else with the site as long as the current agreement between the city and Pardee stands, Riley said.

"The proposed school site is an issue between the city and the school district," said Jim Bizzelle, vice president of community development for Pardee Homes.

"We understand our residents have questions, and it is up to the city and the school district to keep our residents informed about this specific issue," Bizzelle said.

How and when the bond revenues are used for improvements in a residential community have farreaching implications.

Whether it's the Moorpark Highlands or any other development in California that uses what is known as the MelloRoos public bond financing, the types of projects that are planned to be built can change, Bizzelle said.

It's premature to speculate on the outcome of the dispute or how the land might otherwise be used, he said.