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HomeMy WebLinkAboutCC AG PKT 2011-07-11 #FAGENDA STAFF REPORT DATE: July 11, 2011 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Robbeyn Bird, CPA - Director of Administrative Services/ City Treasurer SUBJECT: ANNUAL SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2005 -01 "PACIFIC GATEWAY" SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6159 approving the fiscal year 2011- 2012 special tax levies for Community Facilities District No. 2005 -01 "Pacific Gateway Business Center ". BACKGROUND AND ANALYSIS: In January 2006, the City Council approved the establishment of Community Facilities District 2005 -01 known as the Pacific Gateway Business Center ( "the District "). On February 13, 2006 the City Council approved Ordinance No. 1542 levying the Special Taxes within the District. Subsequently, in May 2006 the City issued $8,800,000 of CFD Bonds to fund the costs of various improvements within the District. The City contracted with Willdan Financial Services to calculate special taxes for the District for fiscal year 2011 -2012. The special taxes collected are considered special revenue. Special revenue sources are legally restricted to specific purposes. As a result, this special tax is not included in general fund revenues. Special taxes were segregated into two groups: A and B. Special Tax A will satisfy debt service on the Bonds ( "Debt Service ") and Special Tax B will satisfy costs related to the maintenance of parks, parkways and open space within the District ( "Landscape Maintenance "). Exhibit "A" of the resolution shows the fiscal year 2011 -2012 special tax levy for each parcel being taxed. The method of assessment for Special Taxes A & B is described in the Rate and Method of Apportionment section of the Official Statement. The method of assessment defines two primary categories of property: Developed Property and Agenda Item F Page 2 Undeveloped Property. Special Tax A allows for a maximum assessment rate of $16,557.97 per Acre on Developed Property within the District. This rate is to be increased by an amount equal to two percent (2 %) for the following fiscal year (2012- 2013). The fiscal year 2011 -2012 maximum and actual Special Tax A per Acre is listed as follows: Community Facilities District No. 2005 -01 Fiscal Year 2011 -2012 Special Tax A for Developed and Undeveloped Property Total Debt Service expenditures for 2011 -2012 are estimated at $545,552. This estimate includes debt service payments of $520,290 and administrative expenses of $25,262. Total revenues from Special Tax A are estimated at $545,552 for fiscal year 2011 -2012. No credit will be applied to the levy this year. The maximum Landscape Maintenance assessment for fiscal year 2011 -2012 was $2,616.08 per Acre within the District. This rate is to be increased by an amount equal to two percent (2 %) for the following fiscal year (2012- 2013). The fiscal year 2011 -2012 maximum and actual Special Tax B per Acre is listed as follows: Community Facilities District No. 2005 -01 Fiscal Year 2011 -2012 Special Tax B for Developed and Undeveloped Property Description Assigned /Maximum FY 2011 -2012 Description Special Tax A per Acre Actual Special Tax A Developed Property $2,616.08 p er Acre Developed Property $16,557.97 $12,142.27 Undeveloped Property $16,770.81 $0.00 Total Debt Service expenditures for 2011 -2012 are estimated at $545,552. This estimate includes debt service payments of $520,290 and administrative expenses of $25,262. Total revenues from Special Tax A are estimated at $545,552 for fiscal year 2011 -2012. No credit will be applied to the levy this year. The maximum Landscape Maintenance assessment for fiscal year 2011 -2012 was $2,616.08 per Acre within the District. This rate is to be increased by an amount equal to two percent (2 %) for the following fiscal year (2012- 2013). The fiscal year 2011 -2012 maximum and actual Special Tax B per Acre is listed as follows: Community Facilities District No. 2005 -01 Fiscal Year 2011 -2012 Special Tax B for Developed and Undeveloped Property Description Assigned /Maximum Special Tax B per Acre FY 2011 -2012 Actual Special Tax B per Acre Developed Property $2,616.08 $1,135.10 Undeveloped Property $2,616.08 $0.00 Total expenditures for Landscape Maintenance for fiscal year 2011 -2012 are estimated at $51,000. Total estimated revenues from Special Tax B for fiscal year 2011 -2012 are $51,000. Page 3 FISCAL IMPACT: There is no fiscal impact to the General Fund. RECOMMENDATION: Staff recommends that the City Council adopt Resolution No. 6159 authorizing the 2011 -2012 annual special taxes for the Communities Facilities District No. 2005 -01. SUBMITTED BY: Robbeyn BMbl, CPA Director of Administrative Services/ City Treasurer NOTED AND APPROVED: Attachment: A. Resolution No. 6159 RESOLUTION NUMBER 6159 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING COMMUNITY FACILITIES DISTRICT NO. 2005 -01 (PACIFIC GATEWAY BUSINESS CENTER) ESTABLISHING ANNUAL SPECIAL TAX FOR FISCAL YEAR 2011 -2012 WHEREAS, the City Council of the CITY OF SEAL BEACH (the "City "), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in the City's Community Facilities District No. 2005 -01 (Pacific Gateway Business Center) (the "District"), all as authorized pursuant to the terms and provisions of the "Mello -Roos Community Facilities Act of 1982 ", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. WHEREAS, the City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said District. WHEREAS, the City Council desires to establish the specific rate of the special tax to be collected for the next fiscal year. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2011 -2012) for the District, is hereby determined and established as set forth in the attached, referenced and incorporated Exhibit "A ". SECTION 3. That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of the City Council, and is not in excess of that as previously approved by the qualified electors of the District. SECTION 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. SECTION 5. All monies above collected shall be paid into the District funds. SECTION 6. The Auditor of the County is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked "public improvements, special tax" or by any other suitable designation, the installment of the special tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit "A ". SECTION 7. The County Auditor shall then, at the close of the tax collection period, promptly render to the City a detailed report showing the amount and /or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. SECTION 8. Special Taxes are to be levied on all non - exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2011 -2012 Tax Roll subsequent to the submittal deadline of August 10, 2011 the City Council directs the City of Seal Beach staff or their agents to bill such parcels directly via U.S. mail using the rates as approved in Exhibit "A ". Resolution Number 6159 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council, at a regular meeting held on the 11th day of July 2011 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members ATTEST: City Clerk Mayor STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6159 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 11th day of July , 2011. City Clerk Exhibit "A" City of Seal Beach CFD No. 2005 -01 FY 2011 -2012 Tax Levy Tract Assessor's Parcel FY 2011 -2012 FY 2011 -2012 Number Special Tax A Special Tax B 16375 095 - 791 -01 $39,340.94 $3,677.72 16375 095 - 791 -02 40,312.32 3,768.52 16375 095 - 791 -03 54,397.36 5,085.22 16375 095 - 791 -04 66,782.48 6,243.04 16375 095 - 791 -05 51,968.90 4,858.22 16375 095 - 791 -06 38,490.98 3,598.26 16375 095 - 791 -07 39,098.10 3,655.00 16375 095 - 791 -11 112,194.58 10,488.32 16375 095 - 791 -12 65,811.10 6,152.22 16375 095 - 791 -13 37,155.32 3,473.40 ' Total Fiscal Year 2011 -2012 Special Taxes: $545,552.08 $50,999.92 Total Number of Parcels Taxed: 10