HomeMy WebLinkAboutItem 8b - FY2026-27 Tax Levies for General Obligation Bonds
ADMINISTRATIVE SERVICES DEPARTMENT
STAFF REPORT
DATE: August 18, 2026
TO: Honorable Mayor and City Council
FROM: Henry Chen, Administrative Services Director
SUBJECT: RESOLUTION NO. 7708 DETERMINING THE AMOUNT OF REVENUE TO
BE RAISED FROM PROPERTY TAXES FOR FISCAL YEAR 2026-27 TO PAY
FOR THE DEBT SERVICE ON THE 2021 GENERAL OBLIGATION
REFUNDING BONDS (SERIES BOND MEASURE A AND SERIES POLICE
STATION PROJECT)
CEQA: Not a Project
Recommendation: Adopt
SUMMARY
The City’s two General Obligation Bonds are supported by voter-approved levies. In
2021, these bonds were refinanced as the 2021 General Obligation Refunding Bonds
(Series Bond Measure A and Series Police Station Project). Annually, a Resolution is
required to be adopted by the City Council to establish the supplemental tax rates
needed to make debt service payments on the outstanding General Obligation
Bonds.
For Fiscal Year 2026-27, the established rates are estimated to generate tax revenues
of $464,800 and $364,900 for the 2021 General Obligation Refunding Bonds (Series
Bond Measure A and Series Police Station Project), respectively. These taxes will be
paid directly by property owners as part of their annual property tax bills.This will be
a slight decrease to rate payers from the prior year.
It is recommended that the City Council adopt Resolution No. 7708 determining the
amount of revenue to be raised from property taxes for Fiscal Year 2026-27 to pay
for the debt service on the 2021 General Obligation Refunding Bonds (Series Bond
Measure A and Series Police Station Project).
Resolution No. 7708 Fiscal Year 2026-27 Tax Levies
for General Obligation Bonds
August 18, 2026
Page 2 of 4
BACKGROUND
Two General Obligation Bonds were issued by the City, which were 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 Gold Line right-of-way
alignment; the Series 2001 General Obligation Bonds were used to finance the
construction of the City’s police station.
The issuance of Series 2001 General Obligation Bonds were 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 levies
upon taxable property within the City. Both Bonds are payable entirely by ad valorem
property taxes levied on behalf of the City and collected by Los Angeles County.
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, solely for the refunding of the Series 2001, providing savings of
approximately $1 million for taxpayers over the life of the bonds.
In 2021, with the interest rates near historical lows due to the COVID-19 pandemic,
conditions provided another opportunity to refinance both Series 2011 and 2012 of
the General Obligation Bonds. A private placement with Sterling Bank (subsequently
acquired by Webster Financial) was done to refinance both the 2011 and 2012 Series
General Obligations Bonds. The transaction closed on November 23, 2021, and the
private placement will yield roughly $840,000 in savings over the life of the bonds.
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 boundaries.
Resolution No. 7708 Fiscal Year 2026-27 Tax Levies
for General Obligation Bonds
August 18, 2026
Page 3 of 4
DISCUSSION
A separate schedule (Exhibit “A”) illustrating the calculation of the tax rates is
attached. The schedule provides detailed information regarding debt service
payments, assessed valuations, beginning balances, estimated expenditures, and the
proposed tax rates for Fiscal Year 2026-27.
For the 2021 General Obligation Refunding Bonds (Series Bond Measure A), a levy
rate of 0.001993% is proposed for Fiscal Year 2026-27, compared to 0.002191% in
the prior fiscal year. For the 2021 General Obligation Refunding Bonds (Series Police
Station Project), a tax rate of 0.001565% is proposed, compared to 0.001586% in the
prior fiscal year. The decrease in both rates is primarily attributable to an increase in
assessed valuation for Fiscal Year 2026-27.
At the proposed rates, a property with an assessed value of $1,000,000 would be
assessed $19.93 in taxes for the Series Bond Measure A and $15.65 for the Series
Police Station Project as part of the property owner’s annual property tax obligation.
In the prior fiscal year, the corresponding amounts were $21.91 and $15.86,
respectively. Accordingly, the overall impact of the proposed rate adjustments is
expected to be modest for most property owners.
For Fiscal Year 2026-27, total debt service payments of $520,100 are required for the
Series Bond Measure A, consisting of $491,000 in principal and $29,100 in interest.
For the Series Police Station Project, total debt service payments of $411,100 are
required, consisting of $388,000 in principal and $23,100 in interest.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California
Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have
no impact on the environment.
Resolution No. 7708 Fiscal Year 2026-27 Tax Levies
for General Obligation Bonds
August 18, 2026
Page 4 of 4
FISCAL IMPACT
No General Fund costs will be incurred as a result of this action. The rates established
for Fiscal Year 2026-27 are estimated to generate tax revenues of $464,800 and
$364,900 for the 2021 General Obligation Refunding Bonds (Series Bond Measure A
and Series Police Station Project), respectively. These taxes will be paid directly by
property owners as part of their annual property tax bills. The resulting tax revenues
will be deposited into the respective bond funds and added to the existing fund
balances to support debt service payments due in Fiscal Year 2026-27.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7708 determining the
amount of revenue to be raised from property taxes for Fiscal Year 2026-27 to pay
for the debt service on the 2021 General Obligation Refunding Bonds (Series Bond
Measure A and Series Police Station Project).
Attachments: Exhibit “A” – Calculation of Tax Rate
Resolution No. 7708
Exhibit “A”
Calculation of Tax Rate
General
Obligation
Bonds
Balance
Available
(1)
7-01-26
2026-27
Assessed
Valuations
Estimated
Tax
Revenue
Debt
Service
(2)
% Tax Rates
2026-27 (3)
2021 Series
Measure A $568,300 $23,321,118,949 $464,800 $520,100 0.001993%
2021 Series
Police Station $445,900 $23,321,118,949 $364,900 $411,100 0.001565%
(1) Excess fund balance is included to ensure that positive cash balance is available
for the debt service payments on August 1, 2027.
(2) Per debt service schedule below.
(3) For comparison, the levy rate from last year was 0.002191% and 0.001586% for
Series 2021 General Obligation Refunding Bonds (Series Bond Measure A and
Series Police Station Project), and their first-year levy rates were 0.006621% and
0.009657% in 2011 and 2001, respectively.
DEBT SERVICE PAYMENT SCHEDULE:
2021 G.O. Bond
Series Measure A
2021 G.O. Bond
Series Police
Station
Principal $491,000 $388,000
Interest $29,100 $23,100
Total $520,100 $411,100