Through careful management, Madera Irrigation District (MID or District) will pay off the bonds related to the Proposition 218, 9(d) assessments an astounding 14 years early.
The Proposition 218, 9(d) assessment applied to agricultural and commercial properties located within MID. This huge savings will be reflected on the upcoming 2027 property tax bills MID landowners receive from Madera County.
The Proposition 218 assessments were approved by resolution on March 15, 2011, following a Proposition 218 assessment ballot proceeding where the District landowners voted to approve the proposition to finance acquisition of the 9(d) contract from the United States Bureau of Reclamation (USBR).
The Proposition 218 assessments were restricted in use for the USBR contract payments, and were not available for general District purposes.
On Sept. 17, 2015, MID closed a bond refunding for $29,275,000 in Water Revenue Refunding Bonds Series 2015. The total cash flow savings, as a result of refunding the 2011 bonds, was more than $20 million. The original bonds were to be paid by landowner assessments through 2040, however through diligent fiscal management, MID will pay off the bonds in 2026, 14 years earlier than originally planned.
The majority of landowners in the District paid a Proposition 218, 9(d) assessment that ranged from approximately $25 to $39 per acre per year, depending on the land type. The elimination of these assessment payments over a 14-year period will result in considerable, direct savings to MID landowners.
“Madera Irrigation District may be one of the only places where your tax bill goes down. The District’s Board of Directors and Staff are beyond pleased to have achieved this savings for our landowners” stated David Loquaci, MID Board President.