HomeMy WebLinkAboutItem 1a: Resolution 6783 - Property Tax Revenue Used for 2011 General Obligation Bonds X44� FO R'c(dr
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junlcy�f� fi°` STAFF REPORT
Administrative Services Department
DATE: August 16, 2011
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Shannon Huang, Financial Services Manager/City easureriln--
SUBJECT: Resolution No. 6783 determining the amount of revenue to be raised from
property taxes for fiscal year 2011-2012 to pay for the debt services on the
2001 General Obligation Bonds
Recommendation: Adopt
SUMMARY
In June of 2001, the City issued General Obligation Bonds for the construction of a
Police facility and the debt service on the bonds is payable from a voter approved levy.
It is required that the City Council adopt a resolution to establish a supplemental tax rate
for the debt services every year.
DISCUSSION
A special election was held on November 2, 1999, to consider a proposition to incur
bonded indebtedness in the principal amount of $8 million for the construction of a
Police facility. More than two-thirds of the votes cast were in favor of the agreed
indebtedness with the principal and interest payable from taxes levied upon taxable
property within the City.
Each year a resolution is adopted to determine the amount of revenue required to be
raised from property taxes to pay for the debt services on the General Obligation Bonds.
This information is the basis for establishing tax rates, which are forwarded to Los
Angeles County and will be applied to properties within the City's boundary. A separate
schedule (Exhibit "A") illustrating the calculation of the tax rate is attached to provide
expanded detail of assessed valuations, beginning balances, estimated expenditures,
and the proposed tax rate for fiscal year 2011-2012.
This annual levy will provide for interest payments in the amount of $168,914 and
$164,844 due on August 1, 2011 and February 1, 2012 and a principal payment of
$185,000 due on August 1, 2011.
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FISCAL IMPACT
The rates established for fiscal year 2011-2012 will generate tax revenue of $518,758 to
pay for the debt service payments on the 2001 General Obligation Bonds.
RECOMMENDATION
Adopt Resolution No. 6783, a Resolution of the City Council of the City of
Arcadia, California, determining the amount of revenue to be raised from
property taxes for fiscal year 2011-12 to pay for the debt services on the 2001
General Obligation Bonds.
Approved: -erg
Donald Penman, City Manager
Attachments
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Exhibit "A"
CITY OF ARCADIA
GENERAL OBLIGATION BONDS 2001
Balance 2011-12 Estimated Tax Debt Service % Tax Rates
Available (1) Assessed Revenue (2) 2011-12 (3)
7-01-11 valuations
526,000 10,406,778,429 518,758 518.758 0.004985
(1) An allowance equal to approximately one year of debt services is included to
ensure that positive cash balance is available for the debt service payments on
August 1, 2011.
(2) Per debt service schedule.
(3) For comparison, last year's rate was 0.005000 % and the initial rate for the first
year was 0.009657 %.
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RESOLUTION NO. 6783
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, DETERMINING THE AMOUNT
OF REVENUE TO BE RAISED FROM PROPERTY TAXES
FOR FISCAL YEAR 2011-2012 TO PAY FOR THE DEBT
SERVICE ON THE 2001 GENERAL OBLIGATION BONDS
WHEREAS, City of Arcadia voters approved the issuance of General Obligation
Bonds in the principal amount of$8 million for the construction of a police facility in a
special election held on November 2, 1999, and property taxes are to be raised to pay
for the debt service on the indebtedness through tax levy.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. That the following is the amount of revenue necessary during fiscal
year 2011-2012 to pay for the authorized debt service on the Series A, 2001 General
Obligation Bonds: $518,758.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 16th day of August, 2011.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
G*IteA4 4—ar441
Stephen P. Deitsch
City Attorney