News

Heights bond call provides savings

By Jay Seidel
La Habra Journal

La Habra Heights residents will see a lowered property tax bill in the upcoming year after the city was able to payoff of an assessment district bonds early.Seal_La Habra Heights
According to an official statement, the city of La Habra Heights, through its fiscal agent, the Bank of New York Mellon Trust Company, will perform a bond call for its Citywide Street Reassessment District No. 1.  This  will save property owners an estimated $10,800 in interest.
“The property owners of La Habra Heights will be pleased to know that they will no longer see the assessment on their property tax bills,” said Mayor Michael Higgins in a press release.
The district accumulated sufficient funds that, when combined with its $192,000 of reserve funds, are enough to pay off the bondholders one full year early.
The original Assessment District was created in 1996 to fund major street construction and improvements that were beyond the City’s budget. Bonds in the amount of $4,000,000 were issued to pay for the improvements.
Those improvements and construction were completed in August 2002, and the city continued to pay the bonds.
The city reassessed and refinanced $2,750,000 bonds in July 2003, taking advantage of a lower interest rate.
This debt was secured by assessments against approximately 1400 parcels  in the city.
At the time, the projected payoff date was September 2016.
However, revenue from the Assessment District was made available to provide a credit to residents, which was reflected on their Fiscal Year 2014-15 tax bill.
This credit decreased assessments, on average, from $213.18 to $112.12.
Further, according to city estimates, residents within the district will no longer be subject to this assessment and the charge will not appear on any future tax bills.

Started in 1995, the La Habra Journal is an independent community news source serving the cities of La Habra and La Habra Heights.