HomeMy WebLinkAboutItem 2a - Resolution 6689 Lighting Districts1l\
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STAFF REPORT
Administrative Services Department
DATE: August 18, 2009
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Prepared by Shannon Huang, Financial Services M nager /City Treasurer
SUBJECT: Resolution No 6689 determining the amount of revenue to be raised from
property taxes for fiscal year 2009 -2010 to pay for the debt services on the
City's General Obligation Bonds and for the authorized maintenance and
operation costs of the Lighting Districts
Recommendation: Adopt
SUMMARY
The City of Arcadia has utilized the Street Lighting Act of 1919 [Division 14 of the
California Streets and Highways Code Section 18,000 et seq.] to establish lighting
maintenance districts within the City. The current Lighting Districts consist of five (5)
Districts (Exhibit "A "). These districts were formed to provide a source of revenue for
the cost of power, maintenance, and other capital improvements within the respective
districts. The City contributes up to 50% of the power and maintenance costs, with the
remaining costs collected from a tax applied to land values.
Additionally, in June of 2001, the City issued General Obligation Bonds for the
construction of a Police facility. The debt service on the bonds is payable from a voter
approved levy.
DISCUSSION
Each year a Resolution is adopted fixing the amount of revenue required to be raised
from property taxes to pay for the debt services on the General Obligation Bonds and
for the authorized maintenance and operating costs of the City's Lighting Districts. This
information is the basis for establishing tax rates, which are forwarded to Los Angeles
County and applied to properties in specific districts. A separate schedule (Exhibit "B ")
is attached to provide expanded detail of assessed valuations, beginning balances,
estimated expenditures, and the proposed tax rate for fiscal year 2009 -2010.
The current street lighting assessment will expire on June 30, 2010. In November 2008,
the formation of a citywide lighting district was balloted, but it failed to be approved by
majority of the property owners. Staff is re- evaluating the project, and will propose the
formation of a new Citywide Lighting District again. Without a new Lighting District, the
City will be obligated to fund for all of the street lighting costs or reduce service in this
area.
A special election was held on November 2, 1999, to consider a proposition to incur
bonded indebtedness in the principal amount of $8,000,000 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. This annual levy will provide for interest payments in the
amount of $179,433 and $172,633 due on August 1, 2009 and February 1, 2010 and a
principal payment of $170,000 due on August 1, 2009.
FISCAL IMPACT
The rates established for fiscal year 2009 -2010 will generate tax revenue of $514,066 to
pay for the debt service payments on the General Obligation Bonds and $408,000 to
reimburse the eligible costs within the established districts.
RECOMMENDATION
Adopt Resolution No. 6689, 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 2009 -10 to pay for the debt services on the City's
General Obligation Bonds and for the authorized maintenance and operating
costs of the Lighting Districts
Approved: JDrnnc_� -rte
Donald Penman, City Manager
Attachments
FEED POINT
CITY OWNED STREETLIGHT
4 EOOWNEDSTREETLIGHT EXHIBIT " A ll
ydµ NON N - - LIGHTED STREETS
Exhibit "B"
LIGHTING DISTRICTS
(1) An allowance for delinquent taxes is included, where appropriate, to help ensure
Districts maintain a positive balance.
(2) Where major capital costs are planned or have been completed, the proposed
tax capitalizes such costs over a fixed period of years.
(3) For comparison, last year's rate were as follows:
Zone A - 0.014324% B-0.004451% C - 0.028657% D - 0.016993%
E - 0.017849%
GENERAL OBLIGATION BONDS
Balance
Adjusted
2009 -10
Estimated Tax
Estimated
%
Assessed
Balance
Assessed
Revenues
Operating /Capital
Tax Rates 2009 -
Available
Valuations
8,000
Expenditures (2)
10(3)
522,066
(1)
7 -1 -09
Zone A
(2,000)
296,193,974
51,000
49,000
0.017218%
Zone B
28,000
1,801,324,578
85,000
113,000
0.004719%
Zone C
(63,000)
392,828,903
168,000
105,000
0.042767%
Zone D
35,000
404,175,716
27,000
62,000
0.006680%
Zone E
(4,000)
439,238,967
77,000
73,000
0.017530%
(1) An allowance for delinquent taxes is included, where appropriate, to help ensure
Districts maintain a positive balance.
(2) Where major capital costs are planned or have been completed, the proposed
tax capitalizes such costs over a fixed period of years.
(3) For comparison, last year's rate were as follows:
Zone A - 0.014324% B-0.004451% C - 0.028657% D - 0.016993%
E - 0.017849%
GENERAL OBLIGATION BONDS
Balance
2009 -10
Estimated Tax
Debt Service
% Tax Rates
Available (4)
Assessed
Revenue
(5)
2009-10(6)
7 -01 -09
valuations
8,000
9
514,066
522,066
0.005304
(4) An allowance is included to ensure that positive cash balance is available for the
debt service payments on August 1, 2009.
(5) Per debt service schedule.
(6) For comparison, last year's rate was 0.005490 %
RESOLUTION NO. 6689
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARCADIA, CALIFORNIA, DETERMINING
THE AMOUNT OF REVENUE REQUIRED TO BE
RAISED FROM PROPERTY TAXES NECESSARY
FOR FISCAL YEAR 2009 -2010 TO PAY FOR THE
DEBT SERVICES ON THE CITY'S GENERAL
OBLIGATION BONDS AND THE FOR
AUTHORIZED MAINTENANCE AND OPERATING
COSTS OF THE LIGHTING DISTRICTS
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 the fiscal year 2009 -2010 to pay the authorized maintenance, operating, and
capital improvement costs of the specified Arcadia Consolidated Lighting
Districts:
District A $51,000
District B $85,000
District C $168,000
District D $27,000
District E $77,000
SECTION 2. That the above Lighting Districts illuminate rights of way
and therefore benefit streets.
SECTION 3. That the following is the amount of revenue necessary
during fiscal year 2009 -2010 to pay for the authorized debt service on the Series A,
2001 General Obligation Bonds: $514,066.
SECTION 4. The City Cleric shall certify to the adoption of this
Resolution.
Passed, approved and adopted this day of
, 2009.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
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