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Mello Roos Concerns Prompt Meeting In Lake Elsinore

Some residents in CFD 88-3 are worried they are being overtaxed.

Lake Elsinore residents who have questions about Mello Roos they are paying are invited to an informational meeting for answers.

Residents in Community Facilities District 88-3, which encompasses housing tracts around McVicker Canyon Park, are invited to the Jan. 31, 7 p.m. meeting scheduled at the Lake Elsinore Senior Activity Center, 420 East Lakeshore Drive.

Lake Elsinore City Attorney Barbara Leibold, as well as city staff and consultants, will be on hand to take questions and address concerns.

Some residents in CFD 88-3 are worried they are being overtaxed.

CFDs seek public financing through the sale of bonds to pay for public improvements and services in the community, such a schools, parks, etc. Those living in a CFD pay off the bonds through special taxes commonly known as Mello Roos.

Concerned resident Dianne Chavarria spearheaded the Jan. 31 meeting. She contends there is a discrepancy on when the CFD 88-3 bonds mature.

“The city claims the bonds were always for 30 years, and all the builders told everyone the taxes would only be for 20 years,” she said.

The city contends there are no improprieties.

According to the city’s 2011-12 annual report on its CFDs, there were 2,005 developed properties in CFD 88-3. The special tax rate levied against homeowners was between $1,504.96 and $2,631.68 that year, depending on home size, the report shows.

According to Chavarria, approximately 50 residents are planning to attend the Jan. 31 meeting.

The city is incurring costs for staff time, consultant time, city attorney time and room-rental fees for the meeting.

Chavarria is asking residents to call her if they plan to attend the event: (951) 245-0049.

Sandra Allison January 23, 2013 at 05:00 PM
I believe it was Steve Manos, L.E. City Councilman, who stated when he was campaigning that it was his intention to seek refinancing of the Mello Roos assessments, since interest rates are much lower at this point than they were at that time. Any action taken at this point?
Alek J Hidell January 23, 2013 at 06:29 PM
I specifically avoided purchasing a property that had Mello-Roos. This wasn't so easy to avoid, either Couldn't believe the perpetual rip-off. What a scam.
Steve Manos January 23, 2013 at 06:58 PM
Hello Sandra - The City Council took up refunding (refinancing) one set of CFDs (Mello Roos) in November, just after the election, but before I was sworn in. We refunded the bonds for an area in Canyon Hills. As the newly appointed Chair for the Public Finance Authority, it was my pleasure to sign the official documentation to complete the refunding effort; though the credit should go to staff and the prior council, which voted unanimously to approve the move. As it was a key part of my election platform, I have been focused on the issue of CFD restructuring throughout the city. This summer a refunding window opens for another set of bonds affecting several areas of Lake Elsinore. Rest assured we'll continue to work hard to lower the cost of home ownership for Lake Elsinore's working families wherever we possibly can.
Jeff Heller January 23, 2013 at 08:31 PM
Including another district after many years is NOT a legal way to proceed with adding to a mellow roos already in process. The city must have a seperate mellow roos drawn up for each new development for that specific district. If the City of Lake Elsinore Needs Education on MELLO ROOS - they should contact the California Depatment of Real Estate. The City cannot take upon itself to add to an existing mellow roos. And they can not just add 10 extra years to a 20 year mellow roos that is winding down at the drop of a hat. Each home owner has rights. This could be a nasty law suit.
Antonio January 23, 2013 at 08:38 PM
LE Resident, you are on the right track regarding TUMF funds. Discounts to developers and having the taxpayers pick up the tab for the work (Street improvements for new development) is the favorite game of real estate developers and their their elected buddies.
Martha L. Bridges January 23, 2013 at 10:28 PM
This is why some of us in Wildomar took a hard look at the 2011 proposal to fund our parks with a Mello Roos (CFD). The payback costs on a bond for up to $5 million at as much as 12% interest over 35 years was staggering. Citzens need to participate in their governments' decisions from the get go -- especially with these financial matters. While we defeated the original Mello Roos Measure D, last year Measure Z was past as a simple parcel tax (no Mello Roos administrative costs). While advocates of the new tax ran around and told voters the cost would be ONLY pennies a day or just $28 per year, that adds up to $350,000 each and every year for FOREVER...to replace an old illegal tax which would have produced something in the range of $200,000 annually. Such a deal!!! Read the fine print...
Truthful January 24, 2013 at 05:13 PM
Lawsuit in the making!
Truthful January 24, 2013 at 06:31 PM
Google "Lake Elsinore bond district 88-3" for some info on it.
Roberto January 24, 2013 at 07:08 PM
I've never lived in a Mello Roos area and don't understand ho they can possibly be legal. You are paying on a bond for sidewalks, streets, fire station,water etc and the developer should be responsible instead of the homeowners. If the project doesn't pencil, It should have NEVER been built in the 1st place.
dianne chavarria January 25, 2013 at 02:33 AM
This is Dianne Chavarria, and i want to thank all of you for your comments. and i agree with all of them. trying to get hold of Natasha JOhnson, she lives in our CFD 88-3 so this affects her too. would love to hear from Steve Manos on this issue too. they are welcome to come to our meeting and so are all of you. Either the city or the builders, OR BOTH, lied to the original homeowners to make money. i hope to see many of you on Jan. 31st. we need to stand up to this totally unfair taxation. and it's not just happening to us.....every CFD should be interested in what is going on here. call me at (951) 245-0049 if you are going to attend. thank you
dianne chavarria January 25, 2013 at 02:35 AM
please come to the meeting. dianne chavarria
dianne chavarria January 25, 2013 at 02:36 AM
if you give me your email i can send you info from 2008 regarding this. call me at (951) 245-0049. dianne Chavarria
dianne chavarria January 25, 2013 at 02:37 AM
agreed! i hope you come to the meeting. dianne chavarria
dianne chavarria January 25, 2013 at 02:40 AM
would love to have you at this meeting! dianne Chavarria your picture posted here sums up the way i feel about this....very frustrated
dianne chavarria January 25, 2013 at 02:41 AM
Mello-Roos is a travesty. the builders get away with murder, and we the homeowners get the royal shaft.

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