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AGENDA STAFF REPORT
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DATE: July 25, 2016
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Victoria L. Beatley, Director of Finance /City Treasurer
SUBJECT: APPROVAL OF THE ANNUAL SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2005 -01
"PACIFIC GATEWAY BUSINESS CENTER"
SUMMARY OF REQUEST:
That the City Council adopt Resolution No. 6674 approving the Fiscal Year 2016-
2017 special tax levy for Community Facilities District No. 2005 -01 "Pacific
Gateway Business Center ".
BACKGROUND AND ANALYSIS:
In January 2006, the City approved the establishment of Community Facilities
District No. 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. Per the Official Statement dated January 6, 2016, the City
issued $8,450,000 Special Tax Refunding Bonds, Series 2016 and scheduled the
outstanding amount of the CFD Bonds issued in 2006 to be redeemed in full.
The City contracted with Willdan Financial Services to calculate the special taxes
for the District for Fiscal Year 2016 -2017. 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 the 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 2016 -2017 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
Agenda Item Q
assessment defines two primary categories of property: Developed Property and
Undeveloped Property. Special Tax A allows for a maximum assessment rate of
$18,281.33 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
(2017- 2018). The Fiscal Year 2016 -2017 maximum and actual Special Tax A per
Acre is listed as follows:
Community Facilities District No. 2005 -01
Fiscal Year 2016 -2017 Special Tax A for
Developed and Undeveloped Property
Total expenditures for 2016 -2017 are estimated at $498,163. This estimate
includes debt service payments of $478,600 and administrative expenses of
$19,563. Total revenues from Special Tax A are estimated at $498,163 for Fiscal
Year 2016 -2017. No credit will be applied to the levy this year.
The maximum Landscape Maintenance special tax for Fiscal Year 2016 -2017 is
$2,888.36 per Acre within the District. This rate is to be increased by an amount
equal to two percent (2 %) for the following Fiscal Year (2017- 2018). The Fiscal
Year 2016 -2017 maximum and actual Special Tax B per Acre are listed as
follows:
Community Facilities District No. 2005 -01
Fiscal Year 2016 -2017 Special Tax B for
Developed and Undeveloped Property
Assigned /Maximum
FY 2016 -2017
Special Tax A
Actual Special Tax A
Description
per Acre
per Acre
Developed Property
$18,281.33
$11,087.53
Undeveloped Property
$18,516.33
$0.00
Total expenditures for 2016 -2017 are estimated at $498,163. This estimate
includes debt service payments of $478,600 and administrative expenses of
$19,563. Total revenues from Special Tax A are estimated at $498,163 for Fiscal
Year 2016 -2017. No credit will be applied to the levy this year.
The maximum Landscape Maintenance special tax for Fiscal Year 2016 -2017 is
$2,888.36 per Acre within the District. This rate is to be increased by an amount
equal to two percent (2 %) for the following Fiscal Year (2017- 2018). The Fiscal
Year 2016 -2017 maximum and actual Special Tax B per Acre are listed as
follows:
Community Facilities District No. 2005 -01
Fiscal Year 2016 -2017 Special Tax B for
Developed and Undeveloped Property
Total expenditures for 2016 -2017 are estimated at $58,000. Total revenues from
Special Tax B are estimated at $58,000 for Fiscal Year 2016 -2017.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
No legal analysis is required for this item.
Page 2
Assigned /Maximum
FY 2016 -2017
Special Tax B
Actual Special Tax B
Description
per Acre
per Acre
Developed Property
$2,888.36
$1,290.90
Undeveloped Property
$2,888.36
$0.00
Total expenditures for 2016 -2017 are estimated at $58,000. Total revenues from
Special Tax B are estimated at $58,000 for Fiscal Year 2016 -2017.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
No legal analysis is required for this item.
Page 2
FINANCIAL IMPACT:
There is no financial impact.
RECOMMENDATION:
That the City Council adopt Resolution No. 6674 authorizing the 2016 -2017
annual special taxes for the Communities Facilities District No. 2005 -01.
SUBMLT BY: NOTED AND APPROVED:
Victoria L. Beatley,
Director of Finance /City T
Attachments:
A. Resolution No. 6674
rer
Page 3
Attachment "A"
RESOLUTION NUMBER 6674
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 2016 -2017
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; and
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; and
WHEREAS, the City Council desires to establish the specific rate of the special
tax to be collected for the next fiscal year.
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
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 (2016 -2017) 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 County Auditor is hereby directed to enter in the next County
assessment roll on which taxes will become due, opposite each lot or parcel of
Resolution Number 6674
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 2016 -2017 Tax Roll subsequent to the
submittal deadline of August 10, 2016 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 6674
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 25th day of July , 2016 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Sana Massa - Lavitt, Mayor
ATTEST:
Robin L. Roberts, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Robin Roberts, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6674 on file in the
office of the City Clerk, passed, approved, and adopted by the City Council at a
regular meeting held on the 25th day of July 2016.
Robin L. Roberts, City Clerk
Resolution Number 6674
"Exhibit A"
City of Seal Beach CFD No. 2005 -01
FY 2016 -2017 Special Tax Levy
Tract Assessor's Parcel Number FY16 -17 Special Tax
16375
095- 791 -01
$40,106.08
16375
095 - 791 -02
41,096.34
16375
095 - 791 -03
55,455.34
16375
095 - 791 -04
68,081.32
16375
095 - 791 -05
52,979.64
16375
095 - 791 -06
39,239.60
16375
095 - 791 -07
39,858.52
16375
095- 791 -11
114,376.68
16375
095 - 791 -12
67,091.04
16375
095 - 791 -13
37,877.98
Total Fiscal Year 16/17 Special Tax:
$556,162.54
Total Number of Parcels Taxed: 10