City official blames devalued property
June 11, 2013 7:25 PM
Jim E. Winburn, Staff Writer
VICTORVILLE • The Southern California Logistics Airport Authority defaulted on a nearly $1.2 million interest payment for a capital improvement bond, according to a recent notice from the authority.
In a statement to its bondholders, the authority warned that the interest payment of $1,155,961 would be due on its SCLAA Subordinate Tax Allocation Revenue Bonds, Series 2007, on June 1.
“SCLAA will use the remaining reserves of $491,331 for interest payment and default on interest of $664,630,” Adele Mosher, the airport authority’s chief financial officer, stated in the notice.
“It’s obvious that it’s more serious now,” said Jose Palafox, a registered investment advisor at StarFox Financial Services in Apple Valley. “They’re not paying the interest at all — they are defaulting on the $664,630.”
Mosher did not return calls for comment Tuesday.
Keith Metzler, the executive director for SCLA, said the bond defaulted because there isn’t enough tax increment to pay the bonds, largely because property values have fallen over the years.
“The properties have been assessed downward because of the economy, and this has generated less property tax, so less (revenue) has been generated,” Metzler said.
To put the defaulted bond back on track, the airport authority must receive larger tax increments because the bonds are “totally secured by property tax,” Metzler said.
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