MISSION VIEJO : 35 Buy Mini-Bonds for New City Hall

Thirty-five people have bought a piece of the new city hall now under construction, spending $140,500 for a special bond issue.

Called “mini-certificates of participation,” the bonds were sold only to people who live, work or own property in the city. Available in blocks of $500, several of the certificates were bought by individuals, said Josephine Julian, a senior manager in the city Finance Department.

“Many of them bought them just to say, ‘I did it, I was part of the effort to establish the city’s first city hall,’ ” she said.

Mission Viejo is only the fourth city in California to use the mini-bonds, since a state law passed about three years ago allowed them, Julian said. Sales of the bonds were held over a 10-day period.

Several people bought blocks of $5,000 and $10,000, and one person spent $30,000 for the mini-bonds. The state law does not allow companies to participate.

Tax-exempt and free of brokers’ fees, the certificates were also a good investment, she said.

The city had hoped to raise $500,000 to help pay for the cost of renovating a two-story office building at 24800 Chrisanta Drive to become the city hall, expected to open in April. The difference will be made up from the city’s general fund.

Also, about $4.5 million in general participation bonds to pay for the acquisition of the land and related costs were sold by the city, she said.

“We didn’t know what to expect,” Julian said, “but, we’re glad to have been at the forefront of this kind of funding program.”