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