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HomeMy WebLinkAboutItem 2c: Resolution No. 6842 determining the amount of revenue to be raised from property taxes 2012-13r"#Inm DATE: August 7, 2012 STAFF REPORT Administrative Services Department TO: Mayor and City Council FROM: Hue C. Quach, Administrative Services Director Shannon Huang, Financial Services Manager /City T asurer SUBJECT: RESOLUTION NO. 6842 DETERMINING THE AMOUNT OF REVENUE TO BE RAISED FROM PROPERTY TAXES FOR FISCAL YEAR 2012 -13 TO PAY FOR THE DEBT SERVICE ON THE 2001 AND 2011 GENERAL OBLIGATION BONDS Recommendation: Adopt SUMMARY The City has two General Obligation Bonds that are supported by voter approved levies. General Obligation Bonds Series 2001 was issued for the construction of a Police facility in June 2001. The Series 2011 issuance is to fund the building of a grade separation at the intersection of Santa Anita Avenue and the proposed Gold Line station. Annually for debt service payments, it is required that the City Council adopt a resolution to establish the supplemental taxes collected for those debt services. DISCUSSION The issuance of Series 2001 General Obligation Bonds were approved in a special election held on November 2, 1999, and the Series 2011 issuance was approved by the voters in the April 11, 2006 election. 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. FY 12 -13 Tax Levies on General Obligation Bonds August 7, 2012 Page 2 of 2 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 detail of the debt service payments, the assessed valuations, beginning balances, estimated expenditures, and the proposed tax rate for Fiscal Year 2012 -13. FISCAL IMPACT The rates established for Fiscal Year 2012 -13 will generate tax revenue of $324,257 and $722,905 to pay for the debt service payments on the 2001 and 2011 General Obligation Bonds, respectively. RECOMMENDATION It is recommended that the City Council adopt resolution No. 6842 determining the amount of revenue to be raised from property taxes for Fiscal Year 2012 -13 to pay for the debt service on the 2001 and 2011 General Obligation Bonds. Approved: minic Lazz ttb City Manager Attachments Exhibit "A" General Obligation Balance Available 2012 -13 Estimated Debt % Tax Rates Bonds (1)12 Assessed Tax Service 2012-13(3 ) valuations Revenue (2) 7. Series 2001 $546,000 $10,917,793,745 $324,257 $515,413 0.002970% Series 2011 $193,300 $10,917,793,745 $722,905 $538,420 0.006621% (1) Excess fund balance is included to ensure that positive cash balance is available for the debt service payments on August 1, 2012. (2) Per debt service schedule below. (3) For comparison, last year's rate for the General Obligation Bonds 2001 was 0.004985 % and the initial rate for the first year was 0.009657 %. No comparison is provided for the Series 2011 General Obligation Bonds as this is the first year of tax levy. DEBT SERVICE PAYMENT SCHEDULE: 2001 G.O. Bond 2011 G.O. Bond Principal $190,000 $215,000 Interest $325,413 $323,420 Total $515,413 $538,420 RESOLUTION NO. 6842 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 2012 -13 TO PAY FOR THE DEBT SERVICE ON THE 2001 AND 2011 GENERAL OBLIGATION BONDS WHEREAS, City of Arcadia voters approved the issuance of General Obligation Bonds Series A 2001 in the principal 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 of the indebtedness through tax levy; and WHEREAS, City of Arcadia voters approved the issuance of General Obligation Bonds Series 2011 in the principal of $8 million for the construction of a grade separation at the intersection of Santa Anita Avenue and the proposed Foothill Extension of the Metropolitan Transit Authority Gold Line, in the general municipal election held on April 11, 2006, and property taxes are to be raised to pay for the debt service of 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.. The following is the amount of revenue necessary during Fiscal Year 2012 -13 to pay for the authorized debt services on the above described Bonds: Series A, 2001 General Obligation Bonds: $324,257 Series 2011 General Obligation Bonds: $722,905 SECTION 2. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2012. ATTEST: City Clerk APPROVED AS TO FORM: 1�t� P, Stephen P. Deitsch City Attorney 2 Mayor of the City of Arcadia