Annexation Could Be Costly, Official Warns

The 3,221 homes Messenger Investment Co. hopes to build just outside Moorpark’s northeastern border could become a financial drain on the city, bringing in less property tax money than the city would need to service them, a new report warns.

The report, which analyzes the project’s financial impact, found that if Moorpark city leaders annex the land from the county, as proposed by Messenger, they could receive as little as 3.9% of the property tax the project generates, said Deputy City Manager Richard Hare.

The city currently gets 7.9% of the tax revenues from property within city limits, Hare said. As part of the annexation process, however, Moorpark officials would have to negotiate with the county to determine how much of the tax from the proposed Hidden Creek Ranch would go to city coffers. And recent negotiations between the county and Simi Valley left Simi officials with just 3.9% of the tax revenue from annexed land.

Even if the city managed to negotiate a higher rate, its current 7.9% portion of local property taxes does not cover the costs of maintaining local roads and parks or providing police services, Hare said.

Messenger Vice President Gary Austin said the report pays too little attention to the amount of sales tax the city would receive from Hidden Creek’s 17.5 acres of retail development--stores that would serve the new homes as well as Moorpark College. He said that by adding to Moorpark’s population, the project could also help bring new businesses to the city.

City planning commissioners are scheduled to discuss the financial impact report at their July 22 meeting.