HID

Hiddenbrooke Improvement District Advisory Committee (HIDAC)

The Hiddenbrooke Improvement District (HID) was created by the City in 1998 to fund municipal capital infrastructure improvements in the valley (streets, streetlights, water, sewer, etc.). These improvements were financed by bonds issued by the City, and the bonds are being paid off over time through a property tax levied on Hiddenbrooke residents. The total outstanding balance owed on the bonds is about $18 million. If your parcel is subject to the tax, you will see it on your real estate tax bill as “HID 2004 Series A bonds.” For some developments, the obligation was paid down entirely by the developer; for others, it was paid down partially. Most homes are billed $1200 to $1800 annually if there was no pay down. The Orchards development was exempted from the HID tax, in part because it was outside the original District boundaries and secondly because the developer agreed to build a bridge and dedicate it to the City as a contribution to the infrastructure.

The original HID bonds were issued in 1998, and then refinanced in 2004 to take advantage of better interest rates. However, the levy on each property was kept on the old 1998 amortization schedule, and as a result a surplus has been built up in the HID funds. The bond documents allow surplus to be spent on capital projects within the District.

In FY 2009-2010, HID was holding $4.093 million in surplus over and above a $1 million reserve against delinquent payments required by the bond issuance documents, and money earmarked for bond payments that year. That surplus could be used for a number of things, including paying off the bonds early (which will eventually lower our costs), paying for new capital projects needed within Hiddenbrooke (“capital” projects are projects with a 20 year life span), or reducing the amount of our annual tax levy. In FY 2010-11, the City agreed to reduce the levy by $500,000 (about the same amount that was being collected above the amount needed for debt service) and also approved using $1 million of the bond reserves to pay down the bonds. The same tax reduction ($500,000) was granted again to Hiddenbrooke residents in FY 2011-2012.

The Board lobbied to make these annual reductions permanent, but in FY 2012-2013, the City decided to reinstitute the old (higher) bond levy in order to build up the surplus again for future needs. In FY 2013-2014, 2014-2015 and 2015-2016, the city granted reductions of $250,000 each year, with a $300,000 reduction recommended for FY 2016-2017; and with early redemptions bond pay downs of $250,000 in FY2015-2016 and $300,000 in FY 2016-2017.

Here are some of the capital projects the HID bonds have been used for or are planned:

  • Ongoing street maintenance and repairs over the life of the bond; street re-surfacing and sidewal construction
  • Erosion repairs to the St John Mines Rd utility/emergency exit corridor caused by heavy storms in December 2005 (this involves unknown wetland mitigation costs, due to the fact that runoff waters generated new wetlands that now require protection according to environmental regulations)
  • New LED street lights to replace the less-energy-efficient high pressure sodium (yellow) lights that are currently in operation - subject to input from residents as to the acceptability of this type of night lighting
  • Four new solar powered radar speed signs installed at strategic locations around Hiddenbrooke to help reduce speeding.
  • Improvements to the Hiddenbrooke Parkway and street median landscaping

The goal of the Hiddenbrooke Improvement District (HID) Advisory Committee under the HPOA Board is to work with the City to develop a consensus on a long-term plan for use of the surplus bond funds to maximize their benefit for Hiddenbrooke residents and to reduce the tax burden on homeowners as much as possible. 

Documents of Interest

Improvement Levy Reports

  • FY2014 Improvement Levy Administration Report
  • FY2013 Improvement Levy Administration Report
  • FY2012 Improvement Levy Administration Report
  • FY2011 Improvement Levy Administration Report
  • FY2010 Improvement Levy Administration Report
  • City of Vallejo Staff Report re: HID Fund Surplus, July 13, 2010
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    HPOA Letters to the City

  • March 18, 2016 HID Letter to R Millard
  • February 24, 2015 HID Letter to J Oiler
  • June 14, 2013 HID Letter to D Lauchner
  • January 8, 2012 HID Bond letter to city
  • July 1, 2011 HID Bond letter to city
  • April 28, 2011 HPOA Letter to city re: request for reduction in tax levy
  • June 24, 2012 HPOA Letter to city re: options for the surplus
  • August 20, 2012 HPOA Letter to city re: current issues & request for next meeting
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