Malibu Sewer Bond Sale Is Allowed

A Superior Court judge refused Thursday to bar the county from selling $39 million in bonds to finance a sewer system in Malibu, contending the sale would not hurt homeowners trying to block the construction of a sewer system.

The county plans to sell the 12% interest bonds in a high-risk offering now, rather than risking higher interest rates by waiting until a court rules on the homeowners’ lawsuit to stop the project.

John Murdock, a lawyer for the Malibu Township Council, a community group that sought to block the bond sale, said that the 12% rate hurts homeowners, who will have to pay higher sewer assessments to pay off the bonds.

“It also creates an impression on the part of other agencies, such as the state Coastal Commission, that the issuance of bonds is somehow an indication that the project is going to succeed,” Murdock said.

But Judge Kurt Lewin said homeowners will not be hurt by the sale of bonds because they already have received assessment notices. Lewin said he doubted that other agencies would feel sympathy for the county if it is obligated to honor bonds for a sewer system that is rejected by the court.