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HomeMy WebLinkAboutCC AG PKT 2006-07-24 #J • i s I))., AGENDA REPORT DATE: July 24, 2006 TO: Honorable Mayor and Members of the City Council FROM: Keith A. Evanoff, LIMA, CRP, CRRA Director of Administrative Services /Treasurer SUBJECT: Approval of the Annual Special Tax for Community Facilities District No. 2002 -01 "Heron Pointe" SUMMARY OF REQUEST: That Council adopts the attached resolution approving the fiscal year 2006 -2007 special tax levy for Community Facilities District No. 2002 -01 "Heron Pointe ". BACKGROUND: On September 23, 2002, the City approved the establishment of Community Facilities District 2002 -01 known as Heron Pointe ( "the District ") and approved Ordinance No. 1490 authorizing the levy of Special Taxes within the District. However, the development was faced with various delays related to the discovery of a Native American burial site within the District's boundaries. As a result, final Coastal Commission approval was not received until July 2005. Immediately upon receipt of final approval the City issued $3,985,000 of CFD Bonds to fund the cost of various improvements within the District. The City contracted with David Taussig & Associates, Inc. ( "Taussig ") to calculate special taxes for the District for fiscal year 2006 -2007. 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. The Special Taxes will satisfy debt service on the Bonds. The method of assessment for the Special Taxes is described in the Amended Rate and Method of Apportionment section of the CFD Report prepared by Taussig and submitted to Council on January 12, 2004. The method of assessment defines two primary categories of property: Developed Property and Undeveloped Property. The category of Developed Property is further divided into five separate special tax classifications that vary with land use (e.g. residential and non - residential) and floor area (in square feet). The maximum Special Tax per Unit /Acre is listed as follows: Agenda Item Community Facilities District No. 2002 -01 Fiscal Year 2006 -2007 Special Taxes for Developed and Undeveloped Property Tax Description Residential Assigned/Maximum FY 2006/2007 Class Floor Area Special Tax per Actual Special Tax Unit/Acre per Unit/Acre 1 Residential > 4,000 SF $5,791.01 $5,791.01 2 Residential 3,750 — 3,999 SF $5,496.59 $5,496.59 3 Residential 3,500 — 3,749 SF $5,303.92 $5,303.92 4 Residential < 3,500 SF $4,946.71 $0.00 5 Non NA $45,437.25 $0.00 Residential NA Undeveloped NA $50,920.86 $2,545.01 Exhibit A of the resolution shows the fiscal year 2006 -2007 special tax levy for each parcel being taxed. A discussion of the development status, financial obligations and the special tax requirements for fiscal year 2006 -2007 for the District is included in the Administration Report prepared by Taussig in July 2006. A copy of the Report is attached to this summary and is also on file in the City Clerk's office. Total expenditures for 2006 -2007 are estimated at $278,482. This estimate includes debt service payments of $236,861 and administrative expenses of $41,621. Total revenues from the special tax are estimated at $278,482 for fiscal year 2006 -2007. FISCAL IMPACT: There is no fiscal impact to the General Fund. RECOMMENDATION: Staff recommends that Council approve the attached resolution authorizing the 2006/07 annual special taxes for the Communities Facilities District No. 2002 -01. / Keith A. Evanoff, LIMA , CRRA Director of Administrative Services /Treasurer NO d u • D APPRO D: ,, ..ti 4 // John : . a 'r i City Inager Agenda Item 4 . CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-01 (HERON POINTE) July 10, 2006 ADMINISTRATION REPORT FISCAL YEAR 2006 -2007 CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-01 (HERON POINTE) Prepared for Prepared by CITY OF SEAL BEACH DAVID TAUSSIG & ASSOCIATES, INC. 211 Eighth Street 1301 Dove Street, Suite 600 Seal Beach, California 90740 Newport Beach, California 92660 (949) 955 -1500 Table of Contents Section Page Introduction 1 I. Special Tax Classifications and Development Update 2 Special Tax Classifications 2 Development Update 2 II. Fiscal Year 2006 -2007 Special Tax Requirement 4 III. Method of Apportionment 6 Maximum Special Taxes 6 Apportionment of Special Taxes 6 EXHIBITS Exhibit A: Fiscal Year 2006 -2007 Special Tax Roll Introduction This report provides an analysis of the financial and administrative obligations of Community Facilities District No. 2002 -01 ( "CFD No. 2002 -01 ") of the City of Seal Beach (the "City ") resulting from the sale of the $3,985,000 Series 2005 Special Tax Bonds (the "2005 Bonds ") in July 2005. CFD No. 2002 -01 is a legally constituted governmental entity established under the Mello -Roos Community Facilities Act of 1982, (the "Act ") as amended. The Act provides an alternative method for the financing of certain public capital facilities and services. Specifically, CFD No. 2002 -01 is authorized to issue up to $5,000,000 in bonds. The proceeds ofthe Series 2005 Bonds are to be used for the acquisition, purchase, construction, expansion, improvement, or rehabilitation of certain public street improvements, water and sanitary sewer improvements, dry utility improvements, and park and landscaping improvements, as well as sewer, water, park, storm drain, and transportation improvements to be funded through development fees, which will serve the new construction in CFD No. 2002 -01. The bonded indebtedness of CFD No. 2002 -01 is both secured and repaid through the annual levy and collection of special taxes from all property subject to the tax within the community facilities district. In calculating the special tax liability for fiscal year 2006 -2007, this report examines the financial obligations of the current fiscal year and analyzes the level of development within CFD No. 2002 -01. This report is organized into the following sections: Section I Section I provides an update of the development status of property within CFD No. 2002 -01. Section II Section II determines the financial obligations of CFD No. 2002 -01 for fiscal year 2006 -2007. Section III Section I1I reviews the methodology used to apportion the special tax requirement between Developed Property and Undeveloped Property. A table of the 2006 -2007 special taxes for each classification of property is included. City of Seal Beach Page 1 Community Facilities District No. 2002 -01 July 6, 2006 I. Special Tax Classifications and Development Update Special Tax Classifications The methodology employed to calculate and apportion the special tax is contained in a document entitled the Amended and Restated Rate and Method of Apportionment. The Amended and Restated Rate and Method of Apportionment defines two primary categories of property, namely "Developed Property" and "Undeveloped Property." The category of Developed Property is in turn divided into five separate special tax classifications which vary with land use (e.g., residential and non- residential) and size for residential development. A table of the Developed Property special tax classifications is shown below. Community Facilities District No. 2002 -01 Developed Property Classifications rand Use " Designatidn" • `.: ":Re "sid'ential Floor Area 1 Residential Property > 4,000 SF 2 Residential Property 3,750 — 3,999 SF 3 Residential Property 3,500 — 3,749 SF 4 Residential Property < 3,500 SF 5 Non- Residential Property NA Developed Property is distinguished from Undeveloped Property by the issuance of a building permit. Specifically, property for which a building permit was issued after January 1, 2001 and prior to January 1 of the prior Fiscal Year will be classified as Developed Property in the following fiscal year. For example, all property in CFD No. 2002 -01 for which building permits were issued after January 1, 2001 and prior to January 1, 2006 will be classified as Developed Property in fiscal year 2006 -2007. Development Update Background research was conducted to determine the amount and type of development activity that occurred during the previous fiscal year. Review ofthe City of Seal Beach's building permit records indicate that after January 1, 2001 and prior to January 1, 2006, building permits for 49 single family residential units had been issued within CFD No. 2002 -01. A total of 2.80 gross acres in the district are considered Undeveloped Property. The table below lists the aggregate amount of taxable property by special tax classification. City of Seal Beach Page 2 Community Facilities District No. 2002 -01 July 6, 2006 r Tax Class Description Residential Floor Area No. of Units / Acres 1 Residential Property > 4,000 SF 16 units 2 Residential Property 3,750 — 3,999 SF 19 units 3 Residential Property 3,500 — 3,749 SF 14 units 4 Residential Property < 3,500 SF 0 units 5 Non - Residential Property NA 0 acres NA Undeveloped Property NA 2.80 acres City of Seal Beach Page 3 Community Facilities District No. 2002 -01 July 6, 2006 II. Fiscal Year 2006 -2007 Special Tax Requirement For fiscal year 2006 -2007, the special tax requirement is equal to $278,481.71 and is calculated as follows: Community Facilities District No. 2002 -01 Fiscal Year 2006 -2007 Special Tax Requirement FISCAL YEAR 2006 -2007 OBLIGATIONS: CFD ADMINISTRATIVE EXPENSES AND COLLECTION CHARGE $41,620.45 INTEREST DUE MARCH 1, 2007 $95,930.63 INTEREST DUE SEPTEMBER 1, 2007 $95,930.63 PRINCIPAL DUE SEPTEMBER 1, 2007 $45,000.00 FISCAL YEAR 2006 -2007 SPECIAL TAX REQUIREMENT: $278,481.71 The components of the fiscal year 2006 -2007 special tax requirement are shown graphically on the following page. City of Seal Beach Page 4 Community Facilities District No. 2002 -01 July 6, 2006 / h O cu O CI N 4 0 M C N Id t en O O) GO M E ,EA. S N A w cNi cri ;t ^�t�.v s' • f " ••4 t • o+F: Y ma II 4 us Q 14 0 3 G) E CD ® •pal * : � it' = P Cr) 4 '.i a j 'R.7 Yg a;' r cr N �RY r ® t L e i 1 ij ® # .:..* gi is -z : : ri -.'.:; .: el 0 cd • 1� 4 yti4 x;.• s 1-4 rin rq �'Y., qs VV R W. • )1.95 0 cz 4 • � o `''�' "4 c N CiS) CU E� TT C � _ ta ON } cz ev •PA cp MI GL col 4 rr ll 5 T e W C.) U III. Method of Apportionment Maximum Special Taxes The amount of special taxes that CFD No. 2002 -01 may levy is strictly limited by the maximum special taxes set forth in the Amended and Restated Rate and Method of Apportionment. The maximum special tax for Undeveloped Property and the assigned special tax for each classification of Developed Property are specified in Section C of the Amended and Restated Rate and Method of Apportionment. Apportionment of Special Taxes The special tax that is apportioned to each parcel is determined through the application of Section D of the Amended and Restated Rate and Method of Apportionment. Section D apportions the special tax requirement in five steps which prioritize the order in which Developed Property and Undeveloped Property are taxed. The first step states that the special tax shall be levied against each parcel of Developed Property at up to 100 percent of the assigned special tax. If the special taxes raised pursuant to the first step are less than the special tax requirement, then the second step is applied. The second step states that the special tax shall be levied against each parcel of Undeveloped Property at up to 100 percent of the maximum special tax. The third, fourth, and fifth steps are designed to accommodate changes in land use and are intended to be used only as a last resort. Since actual land uses have not substantially deviated from the original projections, these steps are not necessary. Application of the maximum special taxes under the first step generates special tax revenues of $271,346 from Developed Property, leaving $7,135 to be levied against Undeveloped Property. Dividing the remaining $7,135 by the 2.80 acres of Undeveloped Property results in a special tax of $2,545.01 per acre of Undeveloped Property. The fiscal year 2006 -2007 maximum and actual special taxes are shown for each classification of Developed Property and Undeveloped Property in the following table and graphically on the following page. The Special Tax Roll which lists the total special tax levy for each parcel is shown in Exhibit A. Technically, Section C states that the maximum special tax for a parcel of Developed Property is equal to the greater of (i) the "Backup Special Tax" or (ii) the Assigned Special Tax. The Backup Special Tax was established for the contingency of a shortfall in revenues resulting from significant changes in development densities. The contingency for which the Backup Special Tax was established does not exist and hence, all discussion of maximum tax rates for Developed Property focuses on the Assigned Special Tax. City of Seal Beach Page 6 Community Facilities District No. 2002 -01 July 6, 2006 Community Facilities District No. 2002 -01 Fiscal Year 2006 -2007 Special Taxes for Developed Property and Undeveloped Property Tax Residential Assigned/Maximum FY 2006 -2007 Class Description Special Tax per Actual Special Tax per Floor Area Unit/Acre Unit/Acre 1 Residential Property > 4,000 SF $5,791.01 $5,791.01 2 Residential Property 3,750 — 3,999 SF $5,496.59 $5,496.59 3 Residential Property 3,500 — 3,749 SF $5,303.92 $5,303.92 4 Residential Property <3,500 SF $4,946.71 $0.00 5 Non - Residential Property NA $45,437.25 $0.00 NA Undeveloped Property NA $50,920.86 $2,545.01 A list of the actual special tax levied against each parcel in CFD No. 2002 -01 is included in Exhibit A. 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(21 4•4 r: 4 . ... . • 0 rit cle o •• • 4 ' • • " t .g .... ......4 Z es4 inia c.t. • Pall 4 1 --.: 74 CZ PEI •lemil ej .', - 4c0. 02 ci CJ cod ` 1:4 t, .-4-"t,4:4; At • , t 4 0 1,..f.ity, 1.•,. C c., . •Fill 04 -It = CA ...:" .t . 34.. 141 .... 0 \ \ \ \ \ \ tt 11) 1:2 e 4 8 © cs G:. = = c:, = c:, 0 ccl ki e ta c, efi in CI 0 ei un ro = 1-i kr) 0 et) z co) m 0 .1.4 in 0 En 0 0 b E Cas) co) .... az RESOLUTION NO. RESOLUTION OF THE CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002 -01 (HERON POINTE) ESTABLISHING ANNUAL SPECIAL TAX FOR FISCAL YEAR 2006/2007 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. 2002 -01 (Heron Pointe) (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 (2006/2007) 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 2006/2007 Tax Roll subsequent to the submittal deadline of August 10, 2006, 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 ". PASSED, APPROVED AND ADOPTED BY THE City Council of Seal Beach, at a meeting hereof held on the 24 day of July , 2006 by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS Mayor ATTEST: Linda Devine, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF SEAL BEACH ) I, Linda Devine, City Clerk for the City of Seal Beach, California, do hereby certify that the foregoing resolutions is the original copy of Resolution Number on file in that office of the City Clerk, passed, approved an adopted by the City Council of the City of Seal Beach at regular meeting hereof held on the 24`'' day of July , 2006. Linda Devine, City Clerk • Exhibit A City of Seal Beach CFD No. 2002 -01 FY 2006 -2007 Special Tax Levy FY 2006 -2007 APN Special Tax 199- 201 -01 $394.20 199 - 201 -02 $414.88 199- 201 -03 $469.98 199- 201 -04 $379.42 199- 201 -05 $434.98 199 - 201 -06 $628.72 199- 201 -07 $524.26 199- 201 -08 $524.26 199- 201 -09 $470.04 199- 201 -12 $5,791.01 199- 201 -13 $5,303.92 199- 201 -14 $5,496.59 199- 201 -15 $5,303.92 199- 201 -16 $5,791.01 199- 201 -17 $5,303.92 199- 201 -18 $5,791.01 199- 201 -19 $5,303.92 199- 201 -20 $5,791.01 199- 201 -21 $5,496.59 199- 201 -22 $5,791.01 199- 201 -23 $5,496.59 199- 201 -24 $5,496.59 199- 201 -25 $5,496.59 199- 201 -26 $5,303.92 199- 201 -27 $5,791.01 199- 201 -28 $5,303.92 199- 201 -29 $5,496.59 199- 201 -30 $5,791.01 199- 201 -31 $5,496.59 199 - 201 -36 $5,496.59 199 - 201 -37 $5,303.92 199- 201 -38 $5,791.01 199- 201 -39 $5,303.92 199- 201 -40 $5,496.59 199 -201 -41 $5,303.92 199- 201 -42 $5,496.59 199 - 201 -43 $5,303.92 199- 201 -44 $5,791.01 199- 201 -45 $5,496.59 Exhibit A City of Seal Beach CFD No. 2002 -01 FY 2006 -2007 Special Tax Levy FY 2006 -2007 APN Special Tax 199- 201 -46 $5,791.01 199 - 201 -47 $5,496.59 199- 201 -48 $5,303.92 199- 201 -49 $5,496.59 199- 201 -50 $5,303.92 199- 201 -51 $5,791.01 199- 201 -52 $5,496.59 199- 201 -53 $5,791.01 199- 201 -54 $5,496.59 199 - 201 -55 $5,791.01 199- 201 -56 $5,496.59 199- 201 -57 $5,791.01 199- 201 -58 $5,496.59 199- 201 -59 $5,303.92 199- 201 -60 $5,496.59 199 - 201 -61 $5,791.01 199- 201 -62 $5,791.01 199- 201 -63 $5,303.92 199- 201 -64 $5,496.59 199 - 201 -65 $3,62.88 199 - 201 -66 $3,97.47 199 - 201 -67 $346.06 199 - 201 -68 $521.69 199 - 201 -69 $611.96 199- 201 -70 $654.66 Total Number of Parcels Taxed 64 Total FY 2006 -2007 Special Tax $278,481.71