Loading...
HomeMy WebLinkAboutItem 2b - Resolution No. 6986 - Amount necessary to pay for the GO BondsV~ � GPLIFO�Nf 9��f r 1--p— via Flu goat 5, 1— `O Z5 �� "'tty°f -° STAFF REPORT Administrative Services Department DATE: August 6, 2013 TO: Mayor and City Council FROM: Hue C. Quach, Administrative Services Director Shannon Huang, Financial Services Manager /City Treasurer SUBJECT: RESOLUTION NO. 6986 DETERMINING THE AMOUNT OF REVENUE TO BE RAISED FROM PROPERTY TAXES FOR FISCAL YEAR 2013 -14 TO PAY FOR THE DEBT SERVICE ON THE 2011 AND 2012 GENERAL OBLIGATION BONDS Recommendation: Adopt SUMMARY The City has two General Obligation Bonds supported by voter approved levies. The Series 2011 issuance was to fund the building of a grade separation at the intersection of Santa Anita Avenue and the proposed Gold Line station; the General Obligation Bonds Series 2012 were refunding bonds, replacing the Series 2001 General Obligation Bonds, which were used to finance the construction of the City's police station. Annually, the City Council is required to adopt a resolution to establish the supplemental taxes collected to make debt service payments for the outstanding General Obligations Bonds. DISCUSSION The issuance of Series 2001 General Obligation Bonds was approved in a special election held on November 2, 1999; 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. In 2012, the bond market provided an opportunity to refinance the Series 2001 General Obligation Bonds. General Obligation Bonds Series 2012 were issued on November 6, 2012, providing savings to overall debt service payments. Both of the 2011 and 2012 Bonds are payable entirely by ad valorem property taxes levied on behalf of the City and collected by Los Angeles County. FY 13 -14 Tax Levies on General Obligation Bonds August 6, 2013 Page 2 of 2 Each year, a resolution must be adopted by the City Council to determine the amount of revenue required to be raised from property taxes to pay for the debt service 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 2013 -14. The levy rate for Series 2011 General Obligation Bonds is .005011% in comparison to 0.006621% last year. No comparison is provided for the Series 2012 General Obligation Bonds as this is the first year of tax levy. The FY 2013 -14 debt service payments for the Series 2011 General Obligation Bond totals $600,300, of which, $318,500 represents Principal and $280,000 as Interest. The FY 2013 -14 debt service payment for the Series 2012 General Obligation Bond totals $366,900, of which, $179,300 represents Principal and $185,000 as Interest. FISCAL IMPACT The rates established for Fiscal Year 2013 -14 will generate tax revenue of $583,744 and $392,862, for the 2011 and 2012 General Obligation Bonds. These tax revenues will add to each bond fund's existing fund balances for debt service payments occurring in Fiscal Year 2013 -14. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 6986 determining the amount of revenue to be raised from property taxes for Fiscal Year 2013 -14 to pay for the debt service on the 2011 and 2012 General Obligation Bonds. Approved. Dominic Lazza CIty Manager Attachments: Exhibit "A" Resolution No. 6986 0 i11:7f ilu General Balance 2013 -14 Estimated Debt $179,300 Obligation Available Assessed Tax Service % Tax Rates Bonds (1) valuations Revenue (2) 2013 -14 (3) 7 -01-13 Series 2011 $382,500 $11,648,840,143 $583,744 $600,300 0.005011% Series 2012 $301,400 $11,648,840,143 $392,862 $366,900 0.003373% (1) Excess fund balance is included to ensure that positive cash balance is available for the debt service payments on August 1, 2014. (2) Per debt service schedule below. (3) For comparison, the levy rate from last year for Series 2011 General Obligation Bonds was 0.006621%; the defeased General Obligation Bonds of 2001 was 0.002970 % with its initial debt service year being 0.009657%. DEBT SERVICE PAYMENT SCHEDULE: 2011 G.O. Bond 2012 G.O. Bond Principal $318,500 $179,300 Interest $280,000 $185,000 Total $600,300 $366,900 RESOLUTION NO. 6986 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 2013 -14 TO PAY FOR THE DEBT SERVICE ON THE 2011 AND 2012 GENERAL OBLIGATION BONDS WHEREAS, City of Arcadia voters approved the issuance of General Obligation Bonds Series 2001 in the principal of $8 million for the construction of a police facility in a special election held on November 2, 1999, and the 2001 Bonds were defeased by the issuance of General Obligation Bonds Series 2012 on November 6, 2012. Property taxes are to be raised for the principal and interest payments 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, which will locate 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. Property taxes are to be raised for the principal and interest payments 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 2013 -14 to pay for the authorized debt services on the above described Bonds: Series 2011 General Obligation Bonds: $583,744 Series 2012 General Obligation Bonds: $392,862 SECTION 2. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of 2013. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney