City to Raise $11 Million for Plaza : Thousand Oaks: Money to pay construction costs will come chiefly from the issuance of bonds or through loan funds.

Incurring new debt to pay construction bills at the Civic Arts Plaza, the Thousand Oaks City Council has agreed to raise $11 million by issuing bonds or taking out loans, and to cover additional costs by juggling money among municipal accounts.

But council members unanimously rejected a proposal to shift $1.1 million from an affordable housing fund to the Civic Arts Plaza construction budget. Determined to preserve that money for development of low-cost housing and aid to first-time home buyers, they asked staff members to come up with an alternative source of money.

Even as they scrambled to plug gaping holes in the financing package, council members late Tuesday authorized a $165,000 electronic marquee to advertise events when the Civic Arts Plaza opens in the fall.

The billboard-size monument sign, which covers 240 square feet, will stand on Thousand Oaks Boulevard and will flash new messages as frequently as every half hour.

Money for the marquee will come primarily from the construction budget’s contingency fund, which contains nearly $1 million set aside for unexpected cost overruns. The council has previously tapped that fund to pay for cosmetic add-ons, including the copper curtain that will cascade over the eastern wall of the auditorium’s 10-story tower.

Despite the substantial shortfalls in the budget and the high cost of the marquee, several council members said they considered the Civic Arts Plaza on track.

“We are very fortunate that sound financial planning over the years has left us with the kind of flexibility where we can fund a project of this type,” Councilwoman Judy Lazar said.

Flexibility notwithstanding, Lazar and several of her colleagues expressed strong concern about draining the affordable housing fund to pay for employee cubicles in the City Hall portion of the Civic Arts Plaza.

Finance Director Robert Biery had estimated $1.1 million as a fair price covering the cost of office space, secretarial services and restroom use for the two full-time employees who administer the affordable housing program.

Yet after several council members questioned that price tag, City Manager Grant Brimhall conceded that the figure may have been off. He promised to take a fresh look at the calculations used to derive the price.

Although they rejected the use of affordable housing funds, all five council members approved Biery’s other recommendations for funding the last eight months of construction at the long-awaited Civic Arts Plaza.

By far the largest chunk of money--$11 million--will come from either issuing short-term bonds or loans. The council gave Biery the freedom to choose the cheapest financing mechanism.

Either bonds or loans would be paid back in five to seven years, Biery said, or as soon as the city sells the former civic center at 401 W. Hillcrest Drive.

In addition to the $11 million in debt financing, the council agreed to four transfers of city funds to the Civic Arts Plaza construction budget.

Three of the transfers--from the utility fund, capital improvement fund and park fund--were long-planned as a means of financing the City Hall portion of the $64-million facility. The fourth was unexpected, a $2-million loan from the city’s self-insurance fund.

By dipping into the insurance fund, which covers minor workers’ compensation and liability claims, the city will be able to fund construction of 10,000 square feet of space initially intended to be used--and paid for--by the Conejo Recreation and Park District.

Biery said he expects to repay the insurance fund, with interest, once the city finds a tenant for that space.

Although she ended up voting for the money shuffling, Councilwoman Jaime Zukowski argued that the continuing transfer of municipal funds to the construction budget would force the city to cut services ranging from street sweeping to library services.

“We are, in effect, living beyond our means,” Zukowski said. “It’s very important that we have a vision for the future, and the Civic Arts Plaza will be a benefit to the community, but at the same time, we cannot blind ourselves to the present.”

*

Resident Alec Macko agreed, urging the council to halt construction of the Civic Arts Plaza until the city can come up with a debt-free financing plan. “You toss figures around like you could dig a hole and pull money out of it,” Macko said. “You can’t. You’re going to be taking it from the taxpayers.”

But Councilwoman Lazar said funds earmarked for capital improvements, such as the performing arts center, cannot be used to pay for ongoing services. And she defended the city’s decision to pour money into a regional performing arts center.

“We are still an envied community and we have provided exceptional services to our residents,” Lazar said. “As a council, we expect and intend to continue to do that.”