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R-349 ---- ~ ,~ -- ~ -" RESOLUTION NO. ~ (Redevelop~ent Agency) RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA AWARDING $3,700,000 PROMISSORY NOTE OF ITS SANTA MONICA DOWNTOWN REDEVELOPMENT PROJECT TO THE BEST BIDDER AND REJECTING ALL OTHER BIDS WHEREAS, the Redevelopment Agency of the City of Santa Monica (the "Agency"), by Resolution No. 348 adopted April 11, 1978, authorized the sale of a $3,700,000 Pro~issory Note for the Agency's Downtown Redevelopment Project (the "Note") and directed that a Notice of Bids for the Note be published in the manner specified In said resolution; and WHEREAS, pursuant to said resolution and to the Notice InViting Bids, sealed bids for the purchase of the Note were received, publ icly opened, examined and read, and the contents thereof have been duly communicated to the Agency and a tabulation thereof has been entered into the minutes NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Each of said bids has been fully considered by the Agency in conformance With the terms of the Notice Inviting Bids, and on the basis of the lowest net interest cost determined In the manner specified In said Notice, It appears to this Agency that the bid of Union Bank attached hereto, marked Exhibit A and ma~e a part hereof, shows the lowest net interest cost. SECTION 2. Said bid of Un Ion Bank be and the same is hereby accepted, and the Note is hereby awarded in accordance With the terms of said bid. SECTIO~ 3. All bids other than the one accepted in Section 2 hereof are rejected. SECTION 4. The Secretary of the Agency is hereby authorized and directed to make immediate delivery of the check accompanying each rejected bid to each unsuccessful bidder. SECTION 5 The interest rates on the Note are hereby fixed at the rates stated in the bid incorporated herein in Section 2 hereof. SECTION 6. The Secretary of the Agency is hereby authorized and directed to deliver the Note to the successful bidder upon payment therefor. . . ......... It . -.::T l.\T ::J: <> N" ~.A.. N" ::a:: April 17, 1978 Redevelopment Agency of The City of Santa Monica Interest Cost In Accordance With the Above Bid: Total Interest Cost (Assuming Delivery ~4Y 1, 1978): $3,652,250.00 5.8912% Average Interest Rate: Respectfully submitted, UNION BAN ~<<~ ~ '$.J opk' son sident JOF:RH:ss PAGE NO 2 -J i 1 Pnof of August 30. t 984 2 3 GALLEY 1- SA~T\ \IONICA-80.!9-9 Bowne of SF. Ine, (415) 86-1-2300 . ~7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . Redevelopment Agency of the City of Santa Monica (Los Angeles County, California) 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 OFFICIAL STATEMENT Relating to $5,700,000 Ocean Park Redevelopment Project Tax Allocation Bonds, Series 1984 . 57 58 59 60 61 62 63 64 65 66 67 THE DATE OF THIS OFFICIAL STATEMENT IS SEPTEMBER 11, 1984 . . . ProD! of September 4, 1984 SA:'>JTA 1\lONICA-8049-9 Bowne of 5.F , Ine. (415) 864-2300 GALLEY 2- CITY OF SANTA MONICA City Council Ken Edward5, Mayor Dolores M Press, A-fayor Pro Tempore James P Conn DaVId G Epstem Wilham H Jennmgs ChnstlOe E Reed Denms Zane Redevelopment Agency Ken Edwards, Chw.rman Dolores M Press, Vice ChaJrman James P Conn David G Epstem Wilham H J enmngs Chnstme E. Reed DennIs Zane John Jahh, Actmg City Manager and Actmg Agency Executive Director C M DennIs, Director of Fmance Mark Tlgan, Dlfector oj Commumty arui Economic Development Emesto R Flores, EconomIC Development ~lyfanager Robert M Myers, Cay Attorney Lmda A Moxon, Deputy City Attorney Ann M Shore, ClI)' Clerk and Agency Secretary Special ServIces Mornson & Foerster, Los Angeles BOND COUNSEL Weiser, Kane, Ballmer & Berkman. Los Angeles SPECIAL COUNSEL Katz:. HolliS, Coren & AsSOCiates, Inc , Los Angeles FISCAL CONSULTANT Bank of Amenca ~ T & SA. Los Angeles FISCAL AGENT Pame Webber Incorporated, San FranclS(;O FINANCING CONSULTANT 1 2 3 . 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 tt 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 57 58 59 60 61 62 63 64 65 66 67 GALLEY 3- Proot of August 30. 1984 SA~TA }'IOKICA-8049-9 Bowne of SF. Inc. (415) 864-2300 (LETTERHEAD TO COME) September 11. 1984 TO WHOM IT MA Y COKCER~ The purpose of thiS OfficIal Statement ]5 to furrush mfonnatlOn regardmg S5.700.000 par value of tax allocation bonds to be Issued by the Redevelopment Agency of the Cay of Santa MOllica (the "'Agency") to provIde add]tlOnal funds to aid In financmg redevelop- ment projects known as Ocean Park Project :-';os 1(a) and l(b) The matenal contaIned lfl th]S OffiCial Statement was prepared by Pame Webber Incorporated as financmg consultant to and under direction of the Agency (WhICh firm Will receive compensation from the Agency contingent upon sale and delIvery of the bonds and w/uch firm has been given penmss]on by the Agency to bid on the bonds) for the mformatlon of all who mIght become holders of the bonds descnbed herem All of the followmg summanes of the Resolutton, the Commumty Redevelopment Law. other applicable legislation. the Redevelopment Plans and other documents are made subJect to the proV]SIOnS of such documents and legislatIOn, and do not purport to be complete statements of any or all such proVlSlon~ Reference]s hereby made to such documents on file With the Agency for further mformatlon m connection thereWith The covenants of the Agency are fully set forth In ResolutiOn No , and thIS OffiCIal Statement does not constitute a contract ",-nh purchasers of bonds Any statements herem mvolvmg matters of opmiOn or estunates. whether or not so designated. are to be construed as provlSlonal rather than factual The opmlon of Morrison & Foerster, Los Angeles, California. approvmg the valIdity of the bonds will be made available to the purchasers at the hme of ongtnal dehvery of the bonds (See "The Senes 1984 Bonds-Legal Oplfllon") The executIon and dehvery of thiS OffiCial Statement have been authorIZed by the Agency REDEVELOPMENT AGE "iCY OF THE CITY OF SANTA MO....IC>\ KEN Enw ARDS Chairman t 2 3 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 7 8 9 10 11 12 13 14 i5 16 17 18 19 20 21 22 23 24 25 26 27 57 58 59 60 61 62 63 64 65 66 67 Prool 01 AUlust 30, 1984 GALLEY 4- SA:';TA "\10NICA-8049-9 TABLE OF CONTENTS Page TABLES A:-';D SCHEDULES Bowne of SF. Ine, (415) 864-2300 Page 1 2 3 . 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . Praaf 01 August 30. 1984 SANTA ~!ONICA-8049-9 Bowne of SF, Ine. (415) 864-2300 GALLEY .5- REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA OCEAN PARK REDEVELOPMENT PROJECT TAX ALLOCATION BONDS, SIRI ES 1984 Introduction The ConsntutIOn and statutes of the State of Cabfonua proVIde for financmg of redevelopment projects through the ISsuance of tax allocatlon bonds Such bonds are payable from property taxes collected from WIthin a project area upon the Increase In assessed valuation of land. Improvements. personal and utIlIty property as explaIned In greater detaIl herem PartiCIpatIon by the Federal Government III the cost of redevelopment proJecr financmg IS also permuted and $7,945,000 In grants have been receIved for the Ocean Park ProJect under the now dlscontmued Title I Urban Renewal Program The Redevelopment Agency of the City of Santa MOnIca (the "Agency") was actIvated on August 13. 1957 by actIOn of the CIty CounCIl pursuant to the Commumty Redevelopment Law WIth the approval of the CounCIl. the Mayor appointed the origInal five members of the Agency Simultaneously WIth Its creatIOn Appointive members contmued to serve untIl May 1972 when the CounCIl declared Itself to be the Agency and assumed all the rIghts, powers, dutIes. pnvileges and InmlUmneS vested In a redevelopment agency The Ocean Park Project is the lll1tial prOject undertaken by the Agency The Ocean Park area was first deSIgnated for study as a potential redevelopment project In Apnl 1958 when apphcatlOn was made to the Federal government for survey and planmng funds With these moneys. the Agency staff commenced preparatIOn of formal plans for an area encompassing some tlurty acres In the southwest corner of the City In October of 1959. as a result of the budgetary reductIon In the amount of Federal funds aVailable for redevelopment, the Ocean Park Project was dIvided mto two separate projects so that at least one could go forward WIth the moneys allocated to the Agency The resIdentlal portIon of the Ocean Park Project became ProJect No 1 (a) and was gIVen pnonty, while the commercIal area mvolvmg about ten acres was deSignated Project No. 1 (b) Ocean Park Project No 1 (a) was estabhshed WIth the adoptlon of the Redevelopment Plan for ProJect ~o l(a) (the "1(a) Plan") by the CIty CouncIl on June 30.1960 and Ocean Park ProJect No I (b) was established With adoptIon of the Redevelopment Plan for Project No I(b) (the "I(b) Plan") by the Ctty CounCIl on January 24, 1961, In each case followmg requisite studies and heanngs by the PlaTlT11Tlg COmmISSIOn, Agency and CIty CounCil Amendments subsequently have been made to both the I ( a) Plan and the 1 (b) Plan, pnncipally to change permitted land uses Ocean Park ProJect Nos I (a) and 1(b) (heremafter referred to collectIvely as the '.Ocean Park Redevelopment Project" or the "Project") are bounded on the northwest by Ocean Park Boulevard. on the northeast by ~eIlson Way, on the southeast by Barnard Way and on the southwest by State beaches and parkmg lots of the Slate and aty In March 1965 the Agency sold $1,415,000 of Ocean Park Project No I(a) Tax AllocatIon Bonds. the proceeds of which were used for SIte improvements and payment to the City for ItS acqulS1tlOn and clearance of property for street realIgnment These bonds were retrred III 1975. ten years III advance of thetr scheduled malUnty No other bonds have been Issued for eIther of the two projects 57 68 59 60 61 62 63 64 65 66 67 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 2 SA:VTA ~ZOl'\ICA-8049-9 Bowne of 5 F , Ine. (41-5) 864-2300 Praot at Augusl 3D, 1984 GALLEY 6- The Project area encompasses approximately 30 acres and presently contalOs two 17 -story hIgh me apartment bUlldmgs of 250 UDlts each, two semor cItizens complexes. Phases I and 2 of Sea Colony. a condommlUm development with 230 umts and open space used as an mtenm park Proposed development. whtch the CalIfornia Coastal CommiSSIOn has conditionally approved. mcludes replacement of the llltenm park and open space wnh 153 condomlnmm umts, a tn-level subterranean and surface garage for 328 vehIcles. one sWlmmmg pool and SIX spas. SIX tenllls courts. two paddle ball courts. one basketball court, walkways. landscaplOg and a six-acre public park On August 17. 1983. the developer. Domllllon Property Company. the CIty and the Agency executed an Amended Sale~ Agreement for Sale of Land for Pnvate Development which IIlcorporates the condItIons of the Coastal CommIssIon's pern11l (See "The Ocean Park Redevelopment Project-Proposed Development ") Proceeds of the $5,700.000 Ocean Park Redevelopment Project Ta>; AllocatIOn Bonds. Senes 1984 (the "Senes 1984 Bonds"), will be used to fund mterest to October 1, 1985. to establiSh a Reserve Account In the amount of maximum annual debt service. to pay costs of Issuance, Includmg the debt servIce msurance premIum, If such msurance IS aV8.Ilable, and. together WIth other moneys, to pay the costs of public Improve- ments and other costs necessary to the redevelopment of the Project area or reqUired by the Coastal Com~ mission permit. mcluding the acquiSItion and constructIOn of a pubhc park and the acquisition of land for low and moderate mcome housmg Under a constitutionally authoTlzed statutory process. all property taxes collected on any Increase ill the assessed valuahon of land. Improvements, personal property and public UtUllY property In the ProJ- ect area over that shown on the assessment roll for the base year (the 1959/60 assessment roll for Project 1(a) and the 1960/61 assessment roll for Project l(b)) may be pledged to repayment of mdebtedness incurred In Project redevelopment Resolullan No , adopted September 11, 1984, which authorizes the Issuance of the Series 1984 Bonds. pledges from such taxes ("Tax Revenues") the portion thereof which constitutes, on a nonculnulatlve twelve-month baSIS endmg each October 1, an amount equal to 125% of twelve-month debt sen'lce on the Senes 1984 Bonds and any additIOnal panty bonds (collectively, the "Bonds") less any amounts then on deposll In the Interest Account and In the Pnnclpal Account plus an amount. 1f any, necessary to mamtain the reqUIred Reserve Account balance ("Pledged Tax Revenues") so long as any Bonds remam outstanding or unprOVIded for All Pledged Tax Revenues whIch are tn excess of the amounts needed for annual debt service on the Bonds and amounts. If any. necessary to m8.Intam the mimmum balance (maximum annual debt servIce) m the Reserve Account may. under certam conditions. be used by the Agency for any redevelopment purpose The 1984/85 tax roll for the Project reflects an Increase III assessed valuation of 582,344,921 over the combmed base rolls of 513,145,576 and Tax Revenues of $861.000 are to be received Because of the reSIdential nature of the Project, only S 150 of business Inventory replacement revenue was allocated by the State ill 1983/84 Tax Revenues for subsequent years as prOjected by the Fiscal Consultant are shown In Schedule 2 herem Pledged Tax Revenues will be apphed to payment of debt service on the Senes 1984 Bonds as shown on Schedule 3 Remammg Tax Revenues, and any Pledged Tax Revenues m excess of debt servIce. may be patd to the Agency and used for allY lawful purpose Tax Revenues due tn 1984/85 would have covered tnaxnnum annual debt service on the Senes 1984 Bonds at an estimated 10 25 % tnterest rate by 1 26 times (For diSCUSSion of certam factors whIch mIght substanllally reduce Tax Revenues see "The Senes 1984 Bonds-Property Tax and Appropnatlon LlmltatJons" ) Santa MOllica is located on the PacIfic Ocean, 16 miles west of downtown Los Angeles The SIXth largest CIty m Los Angeles County, ItS populatIOn on January 1. 1984 was estimated at 93,100 compared WIth 88,314 at the tune of the 1980 census. The CIty IS known for Its excellent resldentJal neighborhoods and equable climate and IS a center for electromcs. engmeenng, research and development, and allied mdustnes 57 58 59 60 61 62 63 64 65 66 67 Proof of September 4. 1984 SAXTA ~IONICA-8049-9 Bowne of SF, Ine, (415) 864-2300 GALLEY 7- . THE SERIES 1984 BONDS Authority for Issuance The Senes 1984 Bonds were authorlZed pursuant to Resolution No of the Agency adopted September 11, 1984 (the "Resolution") m full conformity with the ConstitutIOn and laws of the State of CalJforrua, includmg the Community Redevelopment Law. bemg Part 1 of DIVISion 24 of the Health and Safety Code of the State of CalifornIa (the "Law") and acts amendmg or supplementmg that Law Description of the Bonds The Senes 1984 Bonds consist of an aggregate prmclpal amount of $5,700,000 of the deno1Tllnation of $5,000 or any mtegral multiple thereof, are dated October 1, 1984, are numbered consecunvely from 1 upward and mature on October 1 as shown below Interest IS payable semiannually on Apnl 1 and 0cto- ber I each year Pnnclpal IS payable at the Secuntles SerVIces DIVISIOn of the Fiscal Agent of the Agency m Los Angeles, California Interest wtll be paid by check or draft maIled to the owners of the Senes 1984 Bonds whose names appear on the regtstry books of the Fiscal Agent 15 days pflor to each Interest pay- ment date The serial Senes 1984 Bonds mature annually October 1, 1987 to October 1, 1999, inclUSive, and term Senes 1984 Bonds mature October I, 2006, as set fonh m the followmg table Principal PrrnClpal Year AmoLlnt Year AmoLlnt . 1987 S 95,000 1994 $ 190,000 1988 105,000 1995 210,000 1989 115,000 1996 235,000 1990 130,000 1997 255,000 1991 145,000 1998 285,000 1992 155,000 1999 310,000 1993 175,000 2006 3,295,000 Redemption Features The Senes 1984 Bonds maturmg on or before October 1, 1994 are not subject to call and redemption pnor to matunty. The Senes 1984 Bonds due on and after October 1, 1995 are subject to redemption, at the optlOn of the Agency, from any source of funds, as a whole, or lD part in IDverse order of matunty and by lot wltlun a matunty, on any mterest payment date on and after October 1, 1994, at the follow- mg redemption pnces (computed upon the pnnclpal amount of the Senes 1984 Bonds called for redemp- oon) together With accrued mterest to the date of redemption RedemptIOn Dale RedemptIon Pnce October I, 1994 and ApnJ 1, 1995 October I, 1995 and Apnl I, 1996 October 1, 1996 and Apnl1, 1997 October I, 1997 and April L 1998 October L 1998 or thereafter 102 % 10 Ph 101 Iom-'2 100 . Notice of redemptIon wIll be mailed to registered owners of affected Senes 1984 Bonds. . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 . 1 2 Proof of August 30, 1984 SA:'\ITA \IONICA-8049-9 Bowne of SF, Inc. (415) 864-2300 GALLEY 8- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 The term Bonds matunng on October 1, 2006 (except 5620.000 thereof scheduled to be paId at matu- rity) are subject to mandatory redemptIOn m pan by lot pnor to their maturity date at the pnnclpal amount thereof, plus accrued mterest thereon, m the followmg milllmum amounts on October 1 of each of the foUo\Ving years PrincIpal PrincIpal Year AmotJnt Year Amount 2000 $345,00{} 2003 $460.000 200t 380.000 2004 5tO,000 2002 420,000 2005 560,000 Registration The Senes 1984 Bonds wIll be Issued as fully registered bonds without coupons Ownership may be changed upon the registration books mamtamed by the Fiscal Agent Tax Status The opmlOn of Bond Counsel referred to below will state that Interest on the Sefles 1984 Bonds IS exempt from Federal mcome taxes and from State of Cahfomia personal illcome taxes under eXlstmg statutes. reg:t1lauons, rulings and coun deCISions Legal Opinion The legal Opl1110n of Mormon & Foerster, Los Angeles, Cahfornla, Bond CounseL approvIng the valIdity of the Series 1984 Bonds WIll be made avaIlable to purchasers at the time of ongmal delivery of the Senes 1984 Bonds, and a copy thereof wIll be pnnted on each bond The legal OpIQlOn IS only as to legalIty and IS not mtended nor IS It to be mterpreted or rehed upon as a disclosure document or an express or Implied recommendatIon as to the mvestmem quality of the Senes 1984 Bonds Legality of Bonds for Investment and to Secure Public Deposits in California SectIon 33663 of the Law proVides generally that the State and all publIc officers, mumcIpal corporatJons, politIcal subdiVIsions and publIc bodIes, as weU as banks, bankers, trust compames, savmgs banks. mSUfance compames and vanous other financial mstltutIons and fiduclanes may legally mvest funds WlthlO their control In bonds or other obltgatlOns issued by a redevelopment agency Such bonds and other obltgatIons are also made authonzed securIty for all public depoSIts The Supeflntendent of Banks of the State of CalifornIa has ruled that bonds of a redevelopment agency are by SaId statute, ebgIble for Investment by savmgs banks In CalIforma Disposition of Bond Proceeds and Other Available Funds The Resolution prOVIdes that proceeds from the sale of the Senes 1984 Bonds Will be allocated as follows (a) To the Interest Account wIthm the Ocean Park Redevelopment Project Ta\: Allocation Bonds Debt Service Fund (the "Debt ServIce Fund"), an amount which together With any accrued mterest and premIUm received upon the sale of the Senes 1984 Bonds Will equal the amount of Interest payable to and mcludmg October L 1985. 57 58 59 60 61 62 63 64 65 66 67 . . 31 32 33 34 as 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 . 56 57 58 59 60 61 62 63 64 65 66 67 1 2 PlOof of August 30. 1984 SAl\lA :\1ONICA-S049-9 Bowne of 5 F . Inc. (41.5) 864-2300 GALLEY 9- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (b) To the Reserve Account wlthm the Debt Sef\'lce Fund, zn amount equal to maximum annual debt service on the Senes 1984 Bonds (c) To the Ocean Park Redevelopment Project Tax AllocatIon Bonds Recevelopment Fund (the "Redevelopment Fund") the balance of proceeds The Agency expects to apply proceeds of the Senes 1984 Bonds m the amounts as follows Reserve Account ReqUirement (Senes 1984 Bonds) Funded Interest (1 year @ 1025%) Allowance for D\scount BId (2 50% ) Bond Insurance PremIUm Costs of Issuance Redevelopment Fund Total S 681.000 584.250 142500 142500 100.000 4,049,750 55,700,000 The Reserve Account Moneys m the Reserve Account WIll be WIthdrawn and used by tbe Fiscal Agent solely for the purpose of replemshmg the Interest Account or the PnnCIpal Account m the event of any defiCiency m either account, or of paymg the mterest on or pnnclpal of or redemptIon premIUms, If any, on the Senes 1984 Bonds and any panty bonds (heremafter collectIvely referred to as "Bonds") If no other Agency moneys are lawfully available therefor, or for the purpose of retIrIng all of the Bonds then outstandmg A mlllllDum balance equal to maXImum annual debt serVIce on the Bends Will be maIntamed In the Reserve Account Should the amount m the Reserve Account be less than the reqUIred mlmmum balance, the Fiscal Agent wlll restore the balance by transfer of moneys from the Debt Service Fund Any moneys In the Reserve Account III excess of the mImmum balance sball be transferred to the Debt Sen1ce Fund The Redevelopment Fund Moneys In the Redevelopment Fund may be used for the purpose of paymg any portion of the costs of the Project. Includmg the cost of Improvements and other costs which may not benefit the Project exclUSively but WhICh are necessary to the redevelopment of the Project and the dlSFosllIon of land therem. the repayment of any advances made by the CIty and the necessary expenses m connectIon With the l~suance of the Senes 1984 Bonds Pledge and Allocation of Taxes Under proViSions of the Cahforma ConstItutiOn and the Law, taxes on all taxable property III the Project area leVIed by any taxmg agency when collected Will be dIVided as follows (I) An amount each year equal to that amount whlch would have been produced by the. then current tax rates apphed to the assessed valuatIOn of such property wlthm the Project area last equalIzed pnor to the effective date of the ordmance approving the respectIve Redevelopment Plans (the 1959/60 assessment roll of the County for Project 1 (a) and the 1960/61 assessment roll for Project I (b)) wIll be paId mto the funds of the respectIve taxing agenCies. (2) Taxes (mcludmg all payments. reimbursements and subventIons, If any. specIfically attnbutable to ad valorem taxes lost by reason of tax exemptIons and tJ'I. rate hmltanons) receIved over and above that amount ("Tax Revenues") wIll be depOSited III a speCial fund of the Agency Under the ResolutIon, the Bonds are payable from and secured by a portIon of the proceeds thereof and by a pledge of that portion of the first Tax Revenues received by the Agency equal to 125% of the annual debt servIce on the Bonds for each 12-month penod endmg October 1 (less any amounts then on depOSit m the Interest Account and PrmcIpal Account), plus an amount, If any, necessary to mamtaIn the reqUired Reserve Account balance ("Pledged Tax Revenues") so long as any of the Bonds are outstandmg or unproVided for . . tI 1 2 P,uf of August 30, 1984 SAKTA :-'IONICA-8049-9 Bowne of SF. Inc. (415) 864-2300 GALLEY 10-- 6 7 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 The Agency has no power to levy and collect taxes. and any leg'slanve property tax de-emphasIs or provIsion of addltJonal sources of Income to taxmf! agenCies havmg the effect of reducmg the property tax rate must necessanly reduce the amount of Tax Revenues and might therefore reduce the amount of Pledged Tax Revenues that would otherwise be aVailable to pay the prmcIPal of and Illterest on the Senes 1984 Bonds (See "The Senes 1984 Bonds-Property Tax and AppropnatIon LlffiltatIons" ) Likewise, broadened property tax exemptions or any hmltatlOn on. or voluntary reductIOn 10, the rate of taxatIOn by taXing agenCIes could have a simIlar effect The Debt Service Fund The Resolution provides that the Debt Service Fund Will be held by ,he Fiscal Agent Pledged Tax Revenues will be deposIted 10 the Debt Service Fund and will be set aSide 10 the foIlowmg speCial accounts wlthm the Debt Service Fund m the folIowmg order of pnonty (1) Interest Account-On or before March 31 and SeJ'ltember 30 of each year. begmmng on March 31, 1986, an amount which. together wIth any money already contamed m the Interest Account. IS equal to the aggregate amount of mterest becommg due and payable on all outstandmg Bonds on the next mterest payment date (2) PrmcIpal Account-On or before September 30 of each year, begmmng on September 30, 1987, an amount which. together With any money already contamed ill the Pnnclpal Account. 15 equal to the pnnclpal amount of Bonds matunng or reqUIred to be redeemed through mandatory call on the next succeedmg pnnclpal payment date. October 1 (3) Reserve Account-On or before September 30 of each year. ~n amollnt that wllI mamtam the Reserve Account at an amount equal to maximum annual debt setvlce (4) Holdmg Account-On or before September 30 of each year, begtnmng on Seplember 30, 1985. all money then remammg ill the Debt SelV'lCe Fund after the above-described transfers have taken place. to be used (I) to repleOlsh the Interest Account, the Prmclpal Account arid the Reserve Account. m such order. or (n) to pay pnnclpal of or mterest or redempnon premiums. If any. on the Bonds III the event no other money of the Agency IS lawfully aVaIlable therefor Any excess money In the Holling Account shall, at the Agency's directIOn, be (I) used for redemptIOn of any Bonds subject to call and redemptJon; (2) used for the purchase of Bonds at public or pflvate sale at such pnces as the Agency in its discretIon may determme, or (3) If Tax Revenues equal to 125% of annual debt serVIce have been deposited m the Debt Service Fund m such year (or If debt service for such year was fully funded from Bond proceeds), the Reserve Account balance equals maximum annual debt service and the Agency IS not then In default, transferred to the Agency and used for any lawful purpose When suffiCIent funds have been placed With the Fiscal Agent to redcem all outstandmg Bonds, no further Pledged Tax Revenues Will be allocated to the Fiscal Agent by !he Agency 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Property Tax and AppropriatIOn Limitations Article XIlI A of the California Constitution SectIon 1 of Article XIII A h1Tllts the max:lffium ad valorem tax on real property to 1 % of full cash value (as defined ill SectIon 2), to be collected by the counties and apponlOned accordmg to law SectIon 2 of Article XIII A defines "full cash value" to mean "the County Assessor's valuation of real property as shown on the 1975/76 tax: bill under 'full cash value' or, thereafter, the appraised value of real property when purchased, newly constructed, or a change 10 ownership has occurred after the 1975 assessment" The full cash value may be adjusted annually to reflect 1OflatlOn at a rate not to exceed 2% per year, or reductIOn III the consumer pnce mdex or comparable local data. or reduced 10 the event of dechnmg property value caused by damage, destructIon or other factors The California State Board of Equalization has adopted regulatlOns, bmdmg on county assessors. mterpreung the meanmg of "change m ownershIp" and '"new constructIon" for purposes of determmmg full cash value of property under Amcle XIII A 56 57 58 59 60 61 62 63 64 65 66 67 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 -. 1 2 Pro~f Qf August 30, 1984 SAXTA ~[OKICA-8049-9 Bo\yne of SF. Ine , (415) 864-2300 GALLEY 11- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 A proposed lilinatIve measure which will appear on the ~ovember 1984 ballot would. If approved by the voters. amend Article XIII A and Impose funher hmIlanons on taxmg agenCies (See "The SerIes 1984 Bonds-Property Tax and AppropnalJon Lumtauons-November ImtlatIve'" ) Implemenrrng Leg/slatlOn LegIslauon enacted by the CalIfornIa Legislature to Implement Article XIII A (Statutes of 1978. Chapter 292. as amended) provides that notwIlhstandlllg any other law, local agencIes may not levy any property tax except to pay debt Sef\1Ce on mdebtedness approved by the voters prIor to July L 1978, and that each county WIll levy the maxImum tax perm1lted by ArtICle XIII .-\ of $4 00 per S I 00 of assessed valuatIon (based on the traditIonal practJce of usmg 25% of full cash value as the assessed value for tax purposes) The leglslatlOll further prOVided that. for the 1978/79 fiscal year only, the tax levy by each county was to be apportJoned among all taxmg agencies withIn the county III proportion to theu average share of taxes le"'1ed m certaIn prevIOus years The apportIOnment of property taxes In fiscal years after 1978179 has been reVised pursuant to Statutes of 1979, Chapter 282 which prOVides relIef funds from State moneys begmmng in fiscal year 1979/80 and IS deSIgned to pro.lde a permanent system for shanng State taxes and budget surplus funds With local agencies Under Chapter 282. cItIes and countIes receive about one-third more property tax revenues collected under ProposItion 13 mstead of direct State aId School dIstrIcts receive a correspondmgly reduced amount of property taxes. but receive compensatIon directly by the State and are given addIlJonal relIef Chapter 282 does not affect the denvatJon of the baSIC tax levy (54 per 5100 assessed valuation) and the bonded debt tax rate EffectIve for the 1981/82 fiscal year. assessors In California no longer record propeny values on the tax rolls at the assessed value of 25 % of market values All taxable property IS shov,,1 at full market value Consequently the ta'{ of 54 per 5100 of assessed value IS expressed as SI per $100 of taxable value In confoIDllty With thiS change of procedure, all taxable propeny value mcluded m thIS OffiCIal Statement (except as noted) IS shown at 100% of market value and all tax rates reflect the $1 per 5100 of taxable value Future assessed valuatIOn growth allowed undel Article XIII A (new construction. change of ownership. 2% value growth) wIll be allocated on the baSIS of'snus" among the ]UnsdICttOns that serve the ta.x rate area wlthm which the growth occurs Local agencies and schools will share the growth of "base"' revenues from the tax rate area Each year's growth allocatIon becomes part of each agency's allocatIOn In the followmg year The Agency IS unable to predict the nature or magmtude of future revenue sources which may be prOVIded by the State to replace lost property tax revenues SectlOn 4 of Article XIII A prohibits the Jevymg of any other ad valorem property tax above the hmIts set III Section 1, even With the approval of the affected voters The legIslatIvely prescnbed method of county assessors Illcreasmg real propeny valuatIon to reflect the mflatlonary rate (but not to exceed 2% per year), commenclllg With the 1976/77 tax year. has been upheld by the CahforDla Court of Appeal. but would be changed as a result of passage of the proposed amendment to ArtIcle XIII A (See "November InItIatlve", below) 57 58 59 60 61 62 63 64 65 66 67 1 2 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 46 49 50 51 52 53 . 'ruut 0' Augusl 30, '984 SA;\'TA MONICA-8049-9 Bowne of S.F , Inc, (415) 864-2300 GALLEY 12- 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Busmess lnvenrory Exemption LegLSlatlon enacted m 1979 and m 1980 abolished the assessment and taxation of busmess mventory property and provided for replacement revenue, III part, for local agencies, mcludmg redevelopment agenCies The Legislature has now enacted SB 794 (Statutes of 1984. Chapter 447). effectIve for the 1984/85 fiscal year, repealIng the prOVisions for State replacement revenue described above. but holdmg redevelopment agencies harmless from the loss of such replacement revenue thrOUgh other State payments ("specIal sub- ventIons") The speCIal subventions would be m amounts equal to the difference between the prevlOusly receIved busmess Inventory replacement revenue and revenue denved by virtue of supplemental assessments (discussed below) If m any year, however, the prevIous year's revenue from the supplemental tax roll exceeds the former amount of busmess mventory subventIOn revenue. that prIor year's excess w1l1 be credited agaInst the speCial subventIOn due . Because of the reSidential nature of the Ocean Park Redevelopment Project. the amount of the replace- ment revenue recelVed by the Agency has been mlmmal In each fiscal year (approXimately S 150) Supplemental hen Dates Leglslafton enacted last year (Statutes of 1983, Chapter 498) proVides for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completlOn of new construction PrIor law authoTlzed assessment only as of the March I tax hen date next follOWIng the change and thus delayed the reallZanon of mcreased propeny taxes from the new assessments for up to 14 months Chapter 498 thus would have proVIded Increased revenue to redevelopment agencies to the extent that new constructIon Or changes of ownership occur wlthm the boundaries of redevelopment projects pnor to the March 1 hen date SubsequentleglslatlOn (Statutes of 1983, Chapter 1120). however, requued that the revenue generated by these supplemental assessments be allocated solely to school distrIcts for the next two fiscal years. with the eXceptIon of a small amount willch would be proVided to counties as reimbursement for IDcreased admrn- lstratlve costs The recently enacted Chapter 447 (see "Busmess Inventory ExemptIon", above). limits the allocatIon to school dlstncts to the 1983/84 fiscal year only Thus. effectIve for the 1984/85 fiscal year, redevelopment agencies wIll be eligible to receive potential increases m revenues as prOVided m Chapter 498 (Additional mformahon concerning the Impact of thiS legIslatIOn IS contained In AppendiX B) Article XIII B of the Callforma ConslltutlOn Anlcle XIII B lImits the annual appropriations of the State and any City, county, school distnct, authonty or other polItIcal subdlVlslon of the State to the level of appropnatIons for the pnor fiscal year, as adjusted for changes m the cost of living, population and services rendered by the governmental entIty The "base year" for establIshmg such appropnatIon lImIt IS the 1978/79 fiscal year and the limIt IS to be adjusted annually to reflect changes in populatIon. consumer prices and certaIn mcreases In the cost of services proVided by these public agenCIes 57 58 59 60 61 62 63 64 65 66 67 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 - 1 2 Proof of August 3D, 1984 SA~TA ~1ONICA-8049-9 Bowne of SF, IDc, (415) 864-2300 GALLEY 13- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 AppropnatIons sub}e<;t to Article XIII B mclude generally the proceeds of taxes leVied by the State or other entity of local government. exclusIve of cenam State subventions. refunds of taxes, benefit pay- ments from retirement, unemployment mSUTanCe and disabIlity insurance funds "Proceeds of taxes" mclude, but are not lImited to, all tax revenues and the proceeds to an entity of government from (1) regulatory licenses. user charges. and user fees (but only to the extent such proceeds exceed the cost of proVldmg the service Or regulanon), and (2) the mvestment of tax revenues Article XIII B Includes a requirement that If an entity's revenues In any year exceed the amounts permitted to be spent. the excess would have to be returned by revISIng tax rates or fee schedules over the subsequent two years To the extent such tax revenues are reVised. Tax Revenues may be affected, SInce taxes allocated to the Agency are generated by taxes leVied by certam taxmg agencies havmg junsmctIon Wlthm the Project area Section 33678 of the Law prOVides that the allocation of taxes to a redevelopment agency for the purpose of paymg pnnclpal of, or mterest on, loans. advances, or mdebtedness shall not be deemed the receipt by the agency of proceeds of taxes leVied by Or on behalf of the agency WIthin the mearung or for the purposes of Article XIII B, nor shall such ponlOn of taxes be deemed receipt of proceeds of taxes by, or an appropnatlon subject to the limItation of, any other publIc body Wlthm the meanmg or for the purpose of ArtJcle XIII B or any statutory proVIsIOn enacted m implementation thereof While the Agency would thus appear to be excluded from the lImitatIOns of ArtIcle XIII B, the questIon of the constItutIonalIty of SectIOn 33678 IS currently before the Callfonua appellate courts In two pendmg cases UntIl the Issue lS deCided by the appellate courts, the Agency can gIve no assurance a, to the constitutIOnalIty or scope of SectIOn 33678 However, based upon an analYSIS of the ConstitutIOn and laws of the State of CalifornIa, Bond Counsel IS of the opmlOn that the Call1ornia Supreme Court should hold that the Tax Revenues are not proceeds of taxes wtthm the meaning of Article XIII B November 1984 Imtiatlve Arncle XIII A and Article XIII B were adopted pursuant to measures quahfied for the ballot pursuant to California's constitutional initlattve process From tIme to tIme, other lmtiative measures could be adopted by CalIfornIa voters The adopllon of any such mmalIves 1Tllght cause the Agency to receive reduced revenues. or to Increase e'l:pendltures, or both One of the authors of the initIative that led to the adoptJon of Article XIII A has qualIfied an IDIllatIve (Proposition 36) for the November 1984 general electIOn If enacted, among the proVISIons of the resultmg constltutJonal amendment affectmg the Agency would be the requrrement that values on the 1978/79 tax rolls be reconCiled to any annual mfiatlOnary adjustments (lirruted to a maximum of 2,0% aIlllually) to real propeny values used m creatmg that year's roll (I e, 1975/76 values and subsequent years' values for property wluch changed ownership or was newly constructed) ThiS would result In a reductIOn of 1978/79 values and would affect the values of each parcel In the Project area for each subsequent year. unless or untIl such parcel was reassessed under the proVISIOns of Amcle XIII A The IIDtiatlve also would reqUire the refundmg of all property taxes paId, plus mterest, m excess of the amount which would have been reqUired With the lower values The InitiatIve does not melude any prOVISions for the method of refundmg moneys should such an action become necessary. State legislatIOn would be reqUIred to estabhsh such a method The Agency IS unable to predict whether tlus proposed mlt1atIve Will be adopted or to determme With absolute cenamty tbe measure's finanCial Impact on the Agency, However. the Agency's Fiscal Consultant has estImated that the adverse unpact of the proposed ImtlatIve w1l1 result In a one-tIme refund amount, mcluding mterest, of 579,512, and an annual reduction In tax mCrement revenues of approxImately S8,315 m fiscal year 1984/1985 and thereafter (See AppendIX B ) Tax Revenues projected by tbe Fiscal Consultant shown In Schedule 2 do not reflect the estImated adverse Impact of the proposed InItiatIve 57 56 59 60 61 62 63 64 65 66 67 . 6 7 B 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 1 2 Proof of August 30, 1984 SAl\TA ~IONICA-S049-9 Bowne of SF. rne . (41.:;) 864-2300 GALLEY 14- Issuance of Additional Bonds Addll10nal ta'l: allocation bonds on a panty with the Senes 1984 Bonds ("Panty Bonds") may be Issued provided (a) The Agency shall be In compliance with all covenants set forth III the Resolution, Cb) Tax Revenues (exclusive of State of Caltforma business Inventory subvention pa}mems) received or to be received from the most recent assessed valuatIon of taxable property III the Project area (as reported by the AudItor-Controller of Los Angeles County) and upon the most recently established tax rates, are at least equal to 125 % of maximum annual debt service on all Bonds to be outstandmg followmg Issuance of the Panty Bonds, (c) Proceeds are depoSited to raiSe the mlOlmum balance in the Reserve Account to Lts requIred level of maximum annual debt service and the balance (except for premIUm. accrued Interest and funded Interest. If any, and except for any portion of such proceeds to be used to refund a portion of the outstandmg Bonds) IS deposited III the Redevelopment Fund, Cd) The Panty Bonds mature on October 1 and mterest IS payable April I and October I each year Investment of Funds AU moneys held by the Agency or the Fiscal Agent pursuant to the ResolutIOn must be secured at all times by oblIgatIOns elIgIble to secure depOSits of public moneys and must be of a market value at least equal to the amount reqUired by law Moneys In the Redevelopment Fund and the Debt Service Fund (mcludlOg the Accounts therem) may. and upon wntten request of the Agency WilL be Invested In Federal Secuntles (as defined In the ResolutIOn) or negotIable certificates of depOSit Issued by a natIonally or state chartered bank Investment of moneys III the Debt Service Fund, Interest Account and PnnClpal Account must mature pnor to the date on which the money represented by such mvestment IS estImated to be. required to be paId out under the ResolutIon Moneys In the Reserve Account may, and upon wntten request of the Agency. shall be !Dvested !D Federal Secuntles (as defined In the Resolution) which shall mature not later than ten years from the date of purchase nor later than the final matunty of the Bonds All lllvestment !Dcome received pnor to completIon of the financmg of the PrOject shall be deposited 10 the Redevelopment Fund and all Investment lllcome received thereafter shall be deposited In the Debt Sen;lce Fund Other Covenants Other covenants of the Agency under the ResolutIOn are sumrnanzed below (a) The Project will be completed \Vlth all practJcable dispatch In a sound and economical man- ner and In accordance With the I (a) and 1 (b) Plans and the Law ;-':0 amendment to the Plans w1l1 be made which would substantIally 1D1palr the secunty of the Senes 1984 Bonds or the nghts of Bondholders 57 58 59 60 61 62 63 64 65 66 67 . . . 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Proal 01 August 3D, 1984 SA~TA ~rO!\ICA-8049-9 Bowne of SF, Inc , (415) 864.2300 GALLEY 15- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (b) The Agency Wll! punctually pay, or cause to be paid, the pnnclpal and mterest to become due on the Senes 1984 Bonds, and wIll comply with the reqUirements of the Law for the annual filmg of a statement of mdebtedness With the Auditor-Controller of LDS Angeles County (c) ~o other obhgatlons payable from Ta.x Revenues WIll be Issued havmg a hen upon the Tax Revenues supenor to tbe lien of the Senes 1984 Bonds. and Panry Bonds may only be Jssued as pro- Vided m the ResolutIOn (d) The Agenc)' wIll at all tImes keep. or cause to be kept. proper and current books and accounts (separate from other records and accounls} m which complete and accurate entnes wIll be made of all transactIons relatmg to the Project and the Tax Revenues and the Pledged Tax Reve- nues. and wIll prepare Wlthm 180 days after the close of each fiscal year a complete finanCIal state- ment coverIng the Project and Tax Revenues and Pledged Tax Revenues certIfied by a certified pubhc accountant selected by the Agency, copies of which WIll be furnished to any Bondholder upon request (e) The Agency wIll punctually pay. or cause to be paid, any lawful governmental charges Imposed and all vahd claims for labor, matenals and supplies whIch If unpaid mIght become a lien or charge which might Impair the security of the Senes 1984 Bonds (n The net proceeds realIzed by the Agency from any eminent domam proceedmgs agamst the Agency Will be treated as Tax Revenues (g) The Agency Will not dIspose of more than 10% of the land area III the Prolect to pubhc bodies or other entltJeS whose property IS tax exempt (other than property shown by the ] (a) and l(b) Plans In effect at the date of adoptIOn of the Resolution as planned for pubhc use) If as a result of such actIOn the secunty of the Senes 1984 Bonds or the nghts of the Bondholders would be sub- stantially lmpmred (h) The Agency will not use Bond proceeds In such a ma:lOer as to cause the Scnes 1984 Bonds to be classIfied as arbItrage bonds wlthm the meanmg of SectIon 103 ( c) of the Internal Reve- nue Code of 1954, as amended, and the Income Tax RegulatIOns Issued thereunder The ResolutIon also proVides that whenever any property m the Prolect area has been redeveloped and thereafter IS leased by the Agency to any person or persons, the property shall be assessed and taxed ID the same manner as pnvately-owned property, as reqUIred by SectIOn 33673 of the Law 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Remedies Any Bondholder has the nght by mandamus or other appropnate remedy to compel the performance by the Agency and Its members of the duties Imposed by the ResolutIon and by the Law Refunding Bonds The Senes 1984 Bonds may be redeemed and pald pnor to matunty, or paid at matumy. from pro- ceeds of refundmg bonds Issued pursuant to law. Amendment of the Resolution The ResolutIon may be modified or amended WIth the ,,,ntten consent of holders of 60% of all Senes 1984 Bonds then outstandmg (exclUSive of Senes 1984 Bonds owned by the Agency or the City of Santa MOnIca) No modIficatIon or amendment shall extend the matunty or mterest payment date. reduce the mterest rate. redemption premIUm or prmclpal amount payable. advance the redemptIOn date or change the monetary medIUm of payment Without the express consent of the holder of the Senes 1984 Bond affected, and no modificatIon or amendment shall reduce Ihe percentage of consent reqUIred for amend- ment or modificatIon The Resolutlon may be modified or amended Without Bondholders consent to con- fer addItional nghts or powers upon the Fiscal Agent or to cure amblguJtIes or defects 1 2 3 . -- 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 56 57 58 59 60 61 62 63 64 65 66 67 Proof of Sepfemller S, 1984 SANTA :\lONICA-8049-9 Bowne of SF., Inc, (415) 864-2300 GALLEY 16-- 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Bonds Not a Debt of the City of Santa Monica The Senes 1984 Bonds are not a debt of the City of Santa MOnica, the State of California, or any of its political subdivISIons.. and neither said City, State nor any of Its pol1l1cal SUbdIVIsions IS ltable therefor The Senes 1984 Bonds do not constItute an indebtedness Wlthm the meanmg of any constItutIonal or statutory debt ltmlt or restnction REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA Authority and Personnel The Redevelopment Agency of the CIty of Santa Monica was actIvated on August 13. 1957, by action of the City Council pursuant to the Commuruty Redevelopment Law With the approval of the CouncIl. the Mayor appomted the ongmal five members of the Agency simultaneously WIth Its creatIon AppomtJve members contmued to serve untIl May 1972 when the Council, pursuant to Section 33200 of the Commumty Redevelopment Law as amended by California Statutes 1970. Chapter 1392, declared itself to be the Agency and assumed all the nghts, powers, dunes. pnVlleges and ImmumtIes vested In a redevelopment agency The current chaIrman of the Agency IS Mayor Ken Edwards who was elected to the City Council for a four-year term m 1981 and was voted to hIS current posltlon m 1983 to serve for two years Mayor Edwards IS a probation officer With the County of Los Angeles Mayor Pro Tempore Dolores Press IS VIce Chairman of the Agency An offiCial with the Ret3.1l Clerks Umon. Ms Press was elected to the City Councllm April 1981 Other members of the Agency are the Rev James P. Conn who was elected to the City Counctl ID Apnl 1981 and serves as mmlster at the Ocean Park Methodist Church; Denms Zane, a school teacher, who was elected to hIS first term to the City CounCil In Apn11981, DaVid G Epstem. an attorney and commumty orgaruzer, who was elected to the Clty CounCil III Apnl 1983, Wilham H. Jenmngs, an attorney. who IS servmg hiS second term on the City COlmcil havmg been re-elected m April 1983; and Chnsnne E. Reed, a homemaker and CitIzen actiVIst. servIllg her thIrd term on the CIty Council havmg been re-elected In Apfl11983 The Agency has no permanent employees and mstead relies upon City staff and outSIde consultants for planmng, engmeenng. fiscaL legal, housmg development, mamtenance and property management senices . . 31 32 33 34 35 36 37 38 39 40 41 42 <IS 44 45 46 47 48 49 50 51 52 53 . 1 2 Proof of AugUSl 30, 1984 SA.'JT\ ~[O\'"ICA-8049-9 Bowne of SF, Inc, (4151 864.2300 GALLEY 17- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Powers Redevelopment III the Stare of California is earned out pursuant to the Commumtv Redevelopment Law (SectIon 33000 et seq of ,he Health and Safet) Cede) Secnon 33020 of the Law defines redevelopment as the plannmg, development, replannmg. redesign, clearance, reCO'lstructIon or rehabIlltatlon. or any eomblOatIon of these, of all or part of a survey area and the provIsion of such resldenlIaL commerciaL mdustnal. publIc or other structures or spaces as may be appropnate or nece~sary III the mterests of Ihe general welfare. lllc1udmg recreanonal and other facIlltJes IOcldental or appurte:Jant to them The Agency IS charged \Vllh the responsibIlIty for elImmatlOn of blight through the process of redevelop- ment Generally, thiS process 15 culmmated when the Agency disposes of land for development by the prIvate sectOr, but before thIS can be aCComplIshed, the Agency must complete the process of acqumng and assemblmg the necessary sites. relocatmg reSidents and busmesses, demolIshmg ti,;: detenorated ImprOVements, gradmg and prepanng the sites for purchase by developers and proVIdIng for anclIlary off-slte Improvements All powers of the Agency are vested m ItS seven members The Agency exercises governmental functIOns In carrymg out projects and has suffiCiently broad authonty to acqUIre, develop. admmlster and sell or lease propeny, mcIudlOg the fight of emment domam and the nght to Issue bOilds and expend then proceeds The Agency can clear bUlldlOgs and other Improvements. can develop as a bUlldlllg site any real propeny owned or acqUired, and m connection With such development ~an cause stre;:ts, highways and sidewalks to be constructed or reconstrucled and pubhc utilitIes to be lllstalled The Agency may, out of the funds avaIlable to It for such purposes, pay for all or part or the value of land and the cost of bUildings, facll1l1es. structures or other Improvements to be pubhcly owned and operated. to the extent that such Improvements are of benefit to the project area and no other reasonable means of financmg IS avallable The Agency must sell or lease remmlllng property wlthm a prOject for redevelopment by others In stnct conformity with the redevelopment plpn, and may speCify a perIOd wlthm whIch such redevelopment must begm and be completed Tax Allocation financing The Law proVides a SUitable means for financmg redevelopment projects based upon an allocation of taxes collected wlthm a project area The assessed valuation of a project area ~as{ equalized pnor to adoptIon of the redevelopment plan, or base roll, IS establIshed and, C'l:cept for :lny penod dutIng which the assessed valuatIOn drops below the base year level. the taxlOg bodIes thereafter receive the taxes produced by the levy of the current tax rate upon the base roll Taxes collected upon any mClease m assessed vdluatton over the base roll may be pledged by a redevelopment agency to Ihe repayment of any mdebtedness Incurred In financmg or refinancmg the project Redevelopment agenCIes themselves have no authonty to levy taxes and must look speCifically to the allocation of taxes produced as above mdlcated Any propeny tax de-emphaSIS or prOVISion of addItIonal soarces of revenue to taxmg agencle<; havmg the effect of redUCIng the property tax must necessanly reduce the amount of taxes that would othern'lse be avallable to redevelopment agencies Llkevv"1se. broadened property tax exemptIOns could have a ~Imllar effect (See "The Senes 1984 Bonds-Property Tax and Appropnatlon LUnItalJonsU) 57 58 59 60 61 62 63 64 65 66 67 Other Projects The Agency has one other active redevelopment project. the Downtown Redevelopment Project, wblch was created With tbe adoption of OrdInance)/o 1021 of the City Counell on January 13, 1976 The Down- town Project contams 10 acres and IS bounded by Second and Founh Streets. Broadway and Colorado A.venue It contams a regional shoppmg center. Santa MOllica Place, of 510,000 square feet with two major tenants and more than 100 speCialty shops The Agency sold 514.470,000 of Downtown Redevelopment Project Parkmg Lease Revenue Bonds III 1978 to finance constructIOn of two garages provldmg 2,030 parkmg spaces for the project . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 1 2 Proof of AUIUSI 311, 1984 SAKTA \IONICA-8049-9 Bowne of SF. Inc, (41j) 864-2300 GALLEY 18- THE OCEAN PARK REDEVELOPMENT PROJECT Background The Ocean Park Redevelopment Project IS the IDlnal project undenaken by the Redevelopment Agency of the CIty of Santa MODIca The Ocean Park area was first designated for study as a potential redevelopment project ill Apnl 1958 when applicatIOn was made 10 the Federal government for survey and plannmg funds WIth these moneys, the Agency staff commenced preparatIOn of formal plans for an area encompassmg some thrrty acres m the southwest comer of the City In October of 1959. as a result of the budgetary reducnon In the amount of Federal funds aVaIlable for redevelopment. the Project was dIVided mto two separate projects so that at least one could go fonvard wIth the moneys allocated to the Agency The resIdential portJOn of the Ocean Park Project became Project No 1 (a) and was giVen pnonty. whIle the commercial area Involvmg about ten acres was deSignated PrOject No 1 (b) The Redevelopment Plan for Project No l(a) was approved by the City CouncIl on June 30, 1960 and the Redevelopment Plan for Project No 1 (b) was approved by the CIty Council on January 24, 196 L m each case followmg reqUIsite studIes and heanngs by the Planmng COIDOllsslOn, Agency and City CounCil Amendments SUbsequently have been made to both Plans, pnnclpally to change permitted land uses 57 58 59 60 61 62 63 64 65 66 67 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 1 2 P,oof of August 30. 1984 SA:"<TA ~mNICA-8049-9 Bowne of SF, Inc, (41.5) 864-2300 GALLEY 19- Location and Surrounding Area The Project compnses approxImately thrrty acres and IS located near Santa MODica's boundary with the City of Los Angeles (VeIDce) and adjacent to the publ1c beach, The Project IS bounded on the northwest by Ocean Park Boulevard. on the northeast by Neilson Way. on the southeast by Barnard Way. and on the southwest by State beaches and parkmg lots of the State and City Situated Wlthlh a mile and a half of the pnnclpal shoppmg and commercial areas of Santa MODIca, the Project IS only sixteen miles from downtown Los Angeles and one mIle from the westerly termmus of the Santa Momca Freeway, which affords easy access to the extenSive freeway ne!\\ork lmkmg major cmes of the County with adjacent population centers The surroundmg neighborhood IS composed of one- two- and three-story structures, mostly residential One block east of the ProJect. along Mam Street. a sIgnificant resurgence of commerCial activities has occurred with many restaurants, boutiques, and specialty stores now located there Current Development The Agency and DommlOn Property Company (formerly Lmcoln Property Company) had agreed to an anginal sales agreement in 1977 for pomons of the Project on which market rate housmg, an on-site park, off-Site beach Improvements and affordable housmg were to be developed Phase I of the market rate housmg was completed ill 1980 (Sea Colony I and Sea Colony II) when disputes arose between the panles resultIng in litigation Two plans were developed to resolve the litigatIon, both of whIch received conditional approval from the Coastal CommISSIOn. and the City, Agency and DommlOn Property Company ("Dominion") entered into an Amended Sales Agreement for Sale of Land for Pnvate Development m August 1983 The alternate plan selected by the City! Agency prOVides for 153 market rate condommwms (Sea Colony III), a 5 89-acre on-site publIc park, off-Site beach Improvements and development of affordable housmg off-Site The purchase pnce for the Sea Colony III site remaInS at the ongmally agreed upon 52.139.320 Other terms and conditions are DomlDlon Will develop Sea Colony III as 153 market rate condomimums 2 DommlOD wIll be responSible for Implementation of the Housing Assistance and RehabilItatIon Program ("HARP") to proVide 80 umts of affordable housmg wlthm the Ocean Park coastal zone Dommion Wlll contnbute the HARP structures to a chaTItable orgamzatIon deSignated by the City, IT the contnbunon IS tax deductIble. WIthin two years from completion of Sea Colony III DommlOn IS oblIged to expend $3,000,000 cash equity on the acqwsltlOn and rehabilItation of the HARP structures 3 The City will execute a public works contract and commence construction of the on-Site park occupymg 589 acres Wltlun 120 days of conveyance of the Sea Colony III SIte to DommIon ThIS park IS planned to contam SIX tenrus courts, two paddle tenms courts, one basketball conn, a play area and pedestnan paths DommlOn IS to pay to the City $1,000,000 wlthm 30 days of the later of the execution of the contract, commencement of constructIon or conveyance of the Sea Colony III site to DomwlOn The park IS to be substantially completed wlthm 12 months from executIon of the public works contract 4, The City wIll execute a public works contract and commence constructlOn of the beach Improvements wlthm 120 days of conveyance of the Sea Colony III site to DommlOn and will complete such construction wlthm 12 months DommlOn is to pay to the City $ 1.000,000 under the same terms as (3) above Major components of the off-sIte park and beach Improvements expected to cost $4,000,000 mc1ude 57 58 59 60 61 62 63 64 65 66 67 Proof of September 4. J 964 . GALLEY 20- a A redesigned and separaled bIkepath and pedestnan promenade extendmg from Bay Street to the south city llIDlt SA:\TA ~fONICA-8049-9 Bowne of SF, Inc. (415) 864-2300 . b A 3 5-acre lmeaT park extendmg from Crescent Bay Park to the south City bmIt c ExpansIOn of the eXIsting park at the foot of Ocean Park Boulevard to 4 0 acres. additIon of 1 5 acres of parkmg and redeSign of concession and restroom facllltles, shade pavIllions, new plCOlC areas and children"s play area d RedesIgn of the entrance to the beach parkmg lot at Ocean Avenue and Ocean Park Boulevard to expedIte movement of waItmg vehIcles e RedeSign and repavmg of the entire parkmg area from Crescent Bay Park to the south city hmlt and IDlProvement In pedestpan access to the beach f. Improvements ro vanous streets m the area to llI1prove traffic clrculatJon 5 The Agency IS reqUIred to construct at least 55 unIts of housmg affordable to low and moderate mCOIDe persons withm the area bounded by Plco and Lmcoln Boulevards. the city boundanes and the PacIfic Ocean Such housmg IS to mclude a substantial number of famIly umts and IS to be commenced WIthin one year of the start of frammg for Sea Colony III (expected to be January 1985). Affordable housmg for low and moderate mcome persons IS defined by State law to be for those ha\lng mcomes of less than 120% of the area median adjusted for famuy SIZe Site acqUIsItIon costs are esnmated at $2,200,000 at three or more scattered sites ConstructIon costs are estlmated at approxunately 560,000 per urnt, or $3,300,000 Estimates assume one, two and three bedroom umts with an average umt size of 850 square feet and a total bundmg area of 45,000 square feet Based upon a mIX of rent levels at 25% of household IDcome, pnvate sector financmg of 52,000,000 could be supponed leavlOg approXI- mately $3,500.000 to be proVided by the Agency The Agency expects development to be undertaken by a not-far-profit sponsor The Coastal CommISSIon III Its Notice of Intent dated May 26, 1983, reqUires that the Agency put up letters of credIt In the amount of $1.000.000 for parkmg lot Improvements and $500,000 for the on-SIte park before a per1Tllt WIll be Issued and requIres DomlDlon to lffiplement and complete the HARP before a certJficate of occupancy for Sea Colony III WIll be Issued Height h1Tllts and vehicular access reStnctlOns are also imposed If Domlmon commences construction In January 1985 as expected, all unitS of Sea Colony III should be completed by November 1986 and approximately $44,4{)O.OOO of addltJonal assessed valua- tIon \vIII be added to the Project's tax rolls over the next several years (see Table 2 of AppendiX B) The City and Agency expect to fimsh theu respectIve developments by November 1986 Proceeds of the Senes 1984 Bonds depoSited ill the Redevelopment Fund (estimated to be $4,049,750) Will be used by the Agency to pay portions of the above me-nl1oned public Improvements . . . . 56 57 58 59 60 61 62 63 64 65 66 67 1 2 - Ploof of Augusl 3D, 1984 SA~TA ~IO:-J"ICA-8049-9 BO,^Tle of S F _ Ine, (41.5) 864-2300 GALLEY 21- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 ESTIMA TED TAX REVENUES AND BOND RETIREMENT Estimated Tax Revenues Monevs denved each vear from Ihe levy and collectIOn of taxes on any Increase In the assessed valuatlon of land, l~provements, p;rsonal property -and pubhc utlhty property I~ Ihe Project over and above the 1959/60 base roll for Project l(a) and the 1960/61 base roll for Prolect 1 (b) for such property are to be allocated to the Agency. and a portion of those taxes ("Pledged Tax Revenues") are to be applIed to the payment of mterest and pnnclpal of the Senes 1984 Bonds and for mamtenance of a minimum Reserve Account balance equal to maximum annual debt service on all outstandmg Bonds Excess money III the Debt Sen1.ce Fund may be used to purchase or call Senes 1984 Bonds pnor to matunty (See "The Senes 1984 Bonds--The Debt Service Fund~HoldIng Account ") Under cenam specified conditions the Agency may Issue Panty Bonds (See "The Sefles 1984 Bonds-Issuance of AdditIonal Bonds ") The Assessor of Los Angeles County win assess all real property In the Project (except pubhc utility property) at 100% of fun cash value as defined m ArtIcle XIII A of the CahfornIa ConstJtutJon (see "The Senes 1984 Bonds~Propeny Tax and AppropnatIon LimitatIons") Pubhc utIhty property IS assessed by the State Board of EqualtzatlOn Shown below IS the combmed base roll assessed value of the Project area as compared to the 1983! 84 assessed value As a result of the reSIdential constructIOn already completed m the area, the Project enloys an mcremental assessed value of $82.344,921 for the 1984/85 fiscal year SCHEDULE 1 REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA OCEAN PARK REDEVELOPMENT PROJECT 1984/85 INCREMENTAL TAXABLE VALUE 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1984/85 1984/85 Taxable Sase Year Incremental Value ValLle Value Secured Land $34,395,101 $ 2,294.640 $32,100.461 Improvements 60,271,531 7,812,200 52,459,331 Personal Property 748,940 631,640 117,300 Total Secured 95.415,572 10.738,480 84,677,092 Less Exemptions 120,080 (120,080 ) ~et Secured S95,415572 510,618.400 $84.797,172 Unsecured Land $ $ $ Improvements 8,880@ 1,006,876 (997,996) Personal Property 66,O45@ 1.521,272 (1,4S5,227} Total Unsecured 74,925 2,528,148 (2,453,223 ) Less EXempllons 972 (972) "'et Unsecured S 74,925 S 2,527,176 S (2,452,251 ) Total Secured and Unsecured 595,490,497 $13,145576 $82,344,921 Tax Revenue at SI 045375 per $100@ $ 860,813 CD Values shown for Fiscal Year 1984i85 are based on unequahzed taxable values reported by Ihe Los Angeles County Auditor-Controller Reported values have been reduced by $3S 1.572 to exclude Identlfied unsecured assessmenls mcorrecth Included m the lotal ProJecr area value @ The tax rate shown for 1984i 85 IS an estimated rale based on the hlslofIcal declme m the tax overTlde rate smce 1978179 Source Katz' HollIS, Coren & AssOCiates, Inc. AUgLl5t 21. 1984 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 e: 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Proof of August 3D, 1984 SAXTA ~10NICA-8049-9 Bow-ne of S F < Ine, (415} 864-2300 GALLEY 22- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Any property tax levied by the County on real propeny becomes a hen on that property. A tax levIed on personal propeny does not become a lien agamst the personal property, but may become a hen on cenaIn real property owned by the owner of the personal property and located \vnhm Los Angeles County Every tax whlch becomes a hen on real property has pnonty over all other liens on the real property, arlsing pursuant to State law, regardless of the tIme of the creatIOn of other hens In CalIfornia, property which IS subject to ad valorem taxes ]s clasSified as "secured" or "unsecured" Secured and unsecured properues are entered on separate pans of the assessment roll mamtamed by the county assessor, The "secured roll" is that part of the assessment roll contammg State assessed propeny and property the taxes on which are a hen on real property suffiCient, m the OpInIOn of the assessor, to secure payment of the taxes. Other property IS placed on the "unsecured roll" The method of collectmg delinquent taxes IS substantially different for the two classIficatIOns of property The taxlflg authonty has four ways of collectmg unsecured personal propeny taxes (1) filmg a CIVIl actIOn agamst the taxpayer; (2) fihng a cendicate m the office of the county clerk spectfymg certam facts In order to obtain a judgment lien on certam property of the taxpayer, (3) filing a certificate of delinquency for record in the county recorder's office, m order to obtam a hen on cenam property of the taxpayer. and (4) seIZUre and sale of personal property, Improvements or possessory mterests belongmg or assessed to the assessee The exclUSive means of enforcmg the payment of delInquent taxes m respect of propeny on the secured roll IS the sale of the property securIng the taxes to the State for the amount of taxes which are delmquent. A 10% penalty is added to delmquent taxes which have been leVied In respect of propeny on the secured roll In additIon, property on the secured roll With respect to which taxes are delmquent IS sold to the State on or about June 30 of the applicable fiscal year Such property may thereafter be redeemed by payment of the delInquent taxes and a delInquency penalty, plus a redemptIOn penalty of 1 5 % per month to the tIme of redemption If taxes are unpaid for a penod of five years or more. the property IS deeded to the Stale and then IS subject to sale by the county tax collector A 100/,; penalty also :!ttaches to delInquent ta,xes m respect of property on the unsecured roll and, further, an addlt1ona] penalty of 1.5% per moath begInS to accrue m respect of such taxes begmnmg the first day of the third month fol1owmg the delinquency date The valuation of property lS determmed as of Marcil 1 each year and mstallments of taxes le\1ed upon secured property become delInquent on the followmg December 10 and Apnl 10 Taxes on unsecured propeny are due March 1 and become delinquent August 31, and such taxes are levIed at the prIor year's secured tax rate. It has been the Agency's experIence that the Tax Revenues (exclUSive of busmess mventory replacement revenues) are receIved apprOXlmately 45% by January 15 and 45% through May 30. and the remamder through August of the iollowmg fiscal year Among the larger taxpayers located m the Project are the followmg whose properties comprISe apprOXimately 49% of the total assessed value Assessee 1984/850 Taxable Value Use General Telephone , Santa Momca Shores Lmcoln Property Company (DornlDlon Property Company) Nielson VIlla Choa Property Lundsberg Propeny Gaehe PropertIes , Cahforma First Bank Pomt Fermm Productlons Fmdlay Ltd Total $16,656,340 13.116.332 10,686,782 1.723,126 1,014,937 858,883 821,941 816,000 759.084 746.895 547,200,320 1: lIhty Resldenllal Apartments Resldenllal Condommlums Semor Cltlzen ReSidentIal Resldenlial Condominiums Resldenlial Condommmms ReSIdentIal Condommmffis ReSidential CondomlDmffi Res]denllal CondomlDlum Resldenllal CondomInIUm @ ValuatIons shown are based on the State Board of EquallzatlOn's and the Los Angeles County Assessor's unequalIzed 1984/85 tax rolls Source, Katz, HoDls, Coren & AssOCiates, lne 1 2 . _6 7 8 II 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . Proor or August 30, t 984 SA:;.tTA ~WNICA-8()49-9 Bowne of SF, Inc, (415) 864-2300 GALLEY 23- Over the past SIX years. the Agency has receIved Tax Revenues m the foUowmg amounts Tax Revenues Fiscal Prolect PrOject Year No 1 (a) No 1(b) Total 1978/79 S 92,347 S S 92,347 1979/80 139,657 2.730 142,387 1980/81 281,180 81.158 362,338 1981/82 488,458 174,432 662.890 1982/83 545.530 223,811 769,341 1983/84~ 547.756 233,486 781.242 'CD Actual tax receipts, per Los Angeles County Auditor-Controller reports, Includmg busmess InVentory replacement revenue (apprOXImately $150 annually) and pnor year redemptiOn payments @Recelpts through August 17, 1984 Source Katz, HollIS, Coren & ASSOCIates, Inc 3t 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 SCHEDULE 2- REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA OCEAN PARK REDEVELOPMfENT PROJECT PROJECTED TAX REVENUES (aDOs Omitted) TOlal Value Over Fiscal Real New Devel- Total Other Total Base of Tax Year Properly.::!) opment@ Real Property Value 813,146 Revenue@ 1984/85@ $ N/A $ N/A S 78,430 S17,061 ') 95.491 S 82 345 S 861 1985/86 78,430 2,139 80,569 17,061 97,630 84,484 872 1986/87 80,569 11,315 91,885 17,061 108.946 95,800 975 1987/88 91,885 9,969 101.854 17,061 118,915 105.769 1.062 1988/89 103,891 13,167 117.058 17,061 134,119 120.973 1,210 1989/90 119,399 7.878 127.277 17,061 144,338 13 1.l92 1.312 1990/91 129,822 0 129,822 17,061 146.883 133.737 1,337 1991192 132,419 0 132,419 17,061 149.480 136.334 1,363 1992193 135.067 0 135,067 17.061 152.128 138,982 1390 1993/94 137,768 0 137.768 17.061 154,829 141.683 1.417 1994/95 140,524 0 140,524 17.061 157.585 144439 1.444 <!: No trended growth has been assumed In F,scal Years 1985/86. 1986187 or 1987/88 In 1988/89 and thereafler. an annual mflauonary mcrease equal to the maxImum mflahonary rale allowable under Artlcle XIIIA of the CalIfornia ConstItutIon (two percent) has been assumed @See Schedule of Taxable Value Added (Table 2) @ Excludes Busmess Inventory Replacement revenue @ Based on 1984/85 taxable values as reported by Los Angeles County Audnor-Conlroller, adJusled 10 reflect the elImmatlon of unsecured assessments Incorrectly mcluded In IOtal Project value Source Katz, HolliS, Coren & ASSOCIates, Inc 56 57 58 59 60 61 62 63 64 65 66 67 Section 33675 of the Health and Safety Code Section 33675 of the Law requITes each redevelopment agency to file With the county audItor, not later than the first day of October of each year, a statement of mdebtedness certIfied by the chief fiscal officer of the agency for each redevelopment plan which provides for the allocation of taxes The statement of indebted- ness IS required to contain the date On which the bonds were delIvered, the pnnclpal amount, term. purpose and mterest rate of the bonds and the oUlstandmg balance and amount due on the bonds Similar infor- matIon must be given for each loan, advance or mdebtedness that the agency has mcurred or entered into to be payable from tax increment The Agency has covenanted to comply With the annual filIng requirements of thiS Section. (See "The Senes 1984 Bonds-Other Covenants".) . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . i 2 Proof of AUIIISl 3D. 1984 SA]'\TA ~IONICA-8049-9 BO\vne of S F Inc. (415) 864-2300 GALLEY 24- Section 33675 also provides that payments of tax allocations from the county audItor to tbe agency may not e'(ceed tpe amounts shown on the agency's statement of mdebtedness The Secnon funher pro- VIdes that the statement of Indebtedness IS prima facle eVidence of the mdebtedness of the agency, but that the county auditor may dIspute the amount of mdebtedness shown on the statement 111 certam cases and the disputed amount may be Withheld from allocation and payment to the agency ProvISIon IS made for tIme lImits under whIch a dIspute can be made by the county auditor as well as proVISIOns for a deter- nunatlon of the proper dispOSItIon of the matter by the Supenor Court m a declaratory rehef action The Issue m any such actIon shall mvolve only the amount of the mdebtedness and not the validity of any contract or debt mstrument, or any expendlture pursuant thereto Payments to a trustee under a bond resolution or mdenture or payments to a pubhc agency 1U cormectlOn With payments by such public agency pursuant to a bond Issue shall not be disputed In any actIOn under the Section Debt Service Schedule 3 below shows the projected debt service coverage of the Senes 1984 Bonds, which uses an estimated borrowmg rate of 1025% and assumes that Ta>;: Revenues are receIved as shown m Schedule :2 ~o purchase m the open market or early redemptIOn of Senes 1984 Bonds IS assumed 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 SCHEDULE 3 REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA OCEAN PARK REDEVELOPMENT PROJECT $5,700,000 TAX ALLOCATION BONDS, SERIES 1984 ESTIMATED ANNUAL DEBT SERVICE Period Projected Total EndIng Tax Par Value Debt Cover. October 1 Revenues'::!> Outstandtng@ 1 nlereslG:; Prlnclpal1! ServIce age 1985 $ 861.000 $5,700,000 S 584,300 $ S 584,300 147'( 1986 872,000 5,700,000 584.300 584,300 149 1987 975,000 5,700,000 584.300 95,000 679.300 144 1988 1,062,000 5,605.000 574,500 105,000 679,500 156 ]989 1,2]0,000 5,500.000 563,800 115.000 678,800 178 1990 1,312,000 5,385,000 552,000 130,000 682,000 192 1991 1,337,000 5,255,000 538,600 145,000 683,600 196 1992 1.363,000 5,110,000 523,800 155,000 678,800 201 ]993 1,390,000 4,955,000 507,900 175.000 682,900 204 1994 ],417,000 4,780,000 490,000 190,000 680.000 208 1995 1,444,000<]) 4590,000 470,500 210,000 680500 212 1996 1,444,000 4,380,000 449,000 235,000 684,000 :.> 11 1997 1,444.000 4,145,000 424,900 255,000 679.900 212 1998 1,444,000 3,890,000 398,700 285,000 683.700 211 1999 1,444.000 3,605,000 369,500 310,000 679500 213 2000 1,444,000 3,295,000 337.700 345,000 682.700 212 2001 1,444,000 2,950,000 302,400 380,000 682,400 212 2002 1,444,000 2.570,000 263,400 420.000 683,400 211 2003 1,444,000 2.150,000 220,400 460,000 680,400 212 2004 ],444,000 1.690,000 173,200 510.000 683.200 21J 2005 1,444,000 1,180,000 121.000 560,000 681.000 212 2006 1,444,000 620,000 63,600 620,000 683,600 211 59,097,800 $5,700000 $14,797,800 56 57 58 59 60 61 62 63 64 65 66 67 CD From Schedule 2- o BegInmng of penod @ At an assumed rate of 10 25% @ Senal matLJnl1es and mandatory PnnClpal Account redemptIons @ Assumed to remam constant 199.5 and thereafter . 7 B 9 10 11 12 13 14 1S 16 17 18 19 20 21 22 23 24 2S 28 27 28 . 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 . 1 2 3 Proof 01 August 30, 1984 SA:'>JTA ~lONICA-8049-9 Bowne of SF, Inc. (415) 864-2300 GALLEY 2.5- THE CITY General The City of Santa Momca IS situated on the western sIde of Los Angeles County bordered by the City of Los Angeles on three sides and by the Pacific Ocean to the west Santa Monica encompasses an area slIghtly greater than eight square miles and has an eSTImated current populatIOn of 93.100 persons which makes It the SIXth largest city In Los Angeles County The Santa Momca Freeway passes through the approximate center of the City on an east-west course and provides duect connectIOn With downtown Los Angeles, approximately 16 miles to the east About SIX mtles southeast of the City IS the Los Angeles InternatIOnal Airport, which IS eaSily acceSSible VIa the San Diego Freeway, about one mile beyond the eastern border of Santa MOnIca on a north-south course The clImate IS generally mild With an average mean temperature of about 62= (F) Extremes range from an average 1Tllmmum temperature of 560(F) to an average high of 680(F) Ramfall has averaged about 14". ElevatIon ranges from sea level to 400 feet above sea level Santa MODIca IS a center of electromc, engmeenng. research and allIed mdustrles Among Its largest maDufactunng employers are G & H Technology (electromc assembly), Paper Mate (pens), and Lear- Siegler (aerospace) General Telephone, St John's Hospital, Santa MOllica Hospital, and the Rand Cor- poratIOn (research) are the largest non-manufactunng employers III Santa Momca City Finances Table L taken from the City's audited annual finanCial reports, proVides a companson of general city income and expenses dunng the last five years TABLE 1 CITY OF SANTA MONICA GENEhAL FUND SUMMARY OF REVENUES AND EXPENDITURES YEARS ENDED JUNE 30 58 59 60 61 52 53 64 65 66 67 1979 1980 1981 1982 1983 Revenues and Transfers Propeny Taxes $ 2,431.381 S 3,499 000 S 4.290.000 $ 5,383,939 S 6.518.796 Other Local Taxes 9519,468 12,934.000 15,066.000 17.130.467 17,070.847 Licenses and Permits 803.181 1,141,000 1.462.000 1,473.807 3,498710 Fmes, Forfeitures and PenaflIes 1.057.364 1.466.000 1 601,000 2,203,766 3,051,209 Interest and Rents 2.148,342 2,154,000 1.521.000 2.521.751 3,515,399 Revenue from Other AgenCies 2.206552 9,606.000 3.665,000 1.644,610 95.630 Charges for Current Services 3,287,222 2,040.000 2 208.000 1.809.634 763.361 Olher Revenue 451.848 684.000 383,000 1.851l.508 431,722 Transfers from Other Funds 3,299,928 900,000 7.041.338 640.160 Sulnotal 525,205,286 533524.000 531,096,000 541.067,820 $35.585,834 Expenditures and Transfers. Pu bhc Safety $ 7,860,455 S 8,416,000 $10.818.000 512,179508 $12.739.678 Health, Welfare and Retirement 3,370,781 3.105,000 3.657,000 5.472,327 3.806,750 Parks. RecreatIOn and Culture 3,012.861 2.856.000 4,103.000 5,129 109 4.459.036 General Services 3,690.808 3,212.000 5,273.000 5,035.493 5.096,858 Engmeermg and Development 562,413 415,000 425,000 584,497 593,966 MIscellaneous 5,793,980 12.137.000 7.483.000 9.321.729 7,679,105 Transfer to Other Funds 487,000 65,028 Subtotal $24,291,298 $30,628.000 $31,759.000 537,722,663 534.440,421 Excess (DefiCiency) Revenues Over Expenditures $ 913,988 S 2,896,000 S (663,000) 5 3.345.157 S 1,145,413 - Fund Balances and Reserves . S 12.5 86, 844 $15.482.844 $14,819,844 518,165,001 519,310.414 - Source CIty of Sama MOllIca Fmance Department . . tj 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Proaf of August 30, 1984 SAXTA !l.fONICA-8049-9 Bowne of S,F , Inc, (415) 864-2300 GALLEY 26---. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Assessed valuatlon lD the City has shown a consistent growth pattern dunng the past eight years mcreasmg from 51.698,084,000 In 1975/76 (convened to current assessment practIce w~ere total assessed valuation equals 100% of market value and not 25% of market value as was the case m 1975/76) to $3,950,329,000 m 1982/83 Table 2 provides a record of assessed valuatIons. tax rates. leVies, collec- tIons and delmquenCle~ TABLE 2 CITY OF SANTA MONICA ASSESSED VALUATIONS, TAX RATES. SECURED LEVIES. COLLECTIONS AND DELINQUENCIES Fisca! Year Tax Rates (Per $100 Total Assessed Valuation) City Uncollected Percent Assessed Secured Current Delin. ValLlallon City Total Tax levy Levy quen! S 350,220,000 51 19 $1052 53.787.502 $ 55.405 15% 424,521.000 1 19 1088 4,323.980 5 1.3 94 12 425,196,000 1 15 1081 4.461.742 37,565 8 504.438,000 105 1012 4.865,467 78,185 16 499,191,000 4 Sl 1.610,262 58,291 36 653,717,000 436 2,998,286 103,082 34 735,093,000 430 3,689.342 146.587 40 3,495.380,000CD 107 4,475,494 222,218 SO 3,950,329,00O::D 106 5182,774 251.227 48 4,38I504,QOOQ) 109 5.70S,064 292,511 51 1974175 1975176 1976177 1977/78 1978179 1979/80 1980/81 1981/ 82 1982/83 1983/84 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 (!) Market Value (4 times pre.198Jl82 basIS of assessment) Government and Administration The City of Santa MOllica was Incorporated m 1886 and subsequently adopted Its CIty Charter m 1945 In 1947 a counCll-manager form of government was set up followmg a vote of the City's reSidents and approval by the California legislature The City Council consists of seven members WIth overlappmg terms of four years ElectIons are held every two years, at which time three Councll members or four CounCil members are elected After each electIon, CounCIl members select one of their group to act as Mayor, who then preSides over CounCil meetmgs The City CouncIl. appomts, to serve at its pleasure, a City Manager who serves as Chief Executive Officer and IS responSible for supervISIng day-to-day operations of the City and for carrymg out poliCies set by the Council Members of the CIty CounCIl are also members of the Agency as descnbed 10 an earlIer sectIOn of thIs OffiCial Statement Labor Relations The City has adopted a procedure by which Its employees meet and confer With the City on all nego- tiable matters under the Meyer-Mlhas-Brown Act. Of the 1,2515 permanent City employees, most are represented by one of nme Unions, mcludmg 300 by the Teamsters Umon, 290 by the MUDlclpal Employees ASSOCiatIOn, 164 by the TransportatIon Urnon, 144 by the Santa M01JJca Pohce Officers AssocIation and 92 by the Santa MomC3 Firefighters ASSOCiation There are currently multI-year contracts ID effect thrQugh JUDe 1985 and 1986. The CIty has not expenenced IDtenuption ID CIty services due to labor dlsputes_ . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . 1 2 Proof of AqgUSI 30. 1984 SA::\T >\. ~10NICA-8049-9 Bowne of SF, Ine, ! 415) 864-2300 GALLEY 27- Building Activicy Durmg 19i9/80, Santa MOnIca Issued oUlldmg perlTIlts wIth a record total valuanon of SI59.158.755 In contrast wIth Santa MODica's hlstoncal de'ie1opment actiVity, recenl years have brought an mcreased level of commerCial and mdustnal bUllding actIVIty Santa MODIca's Ideal climate has attracted a sub- stantial amount of new office development as older small commerCial bUIldmgs are replaced WIth modem office bUlldmgs Table 3 below IS a summary of total bm]dmg penmts lssued by the CIty as well as the revenue co]- lected by the City for processmg applIcations The slowdown m Santa MOnIca's bUl]dmg actI~'Ity m 1982 and 1983 reflects the economic recessIOn which affected the constructIon mdustry nauonwlde Recovery began ill 1983 and contmues In ]984 Valuanon of bUlldmg permits Issued In the first SIX months of 1984 totalled $42.114,000 Decreases In actlV1ty may also have resulted from uncertamty regardmg develop- ment standards as a review and reVISIOn of the City's long range land use plan was undenaken AdoptIon of the proposed Land Lse Plan by the Cay Council IS anticIpated In Fall ]984 TABU: 3 SANTA MONICA BUilDING ACTIVITY 1979/80 1981/82 1983184 1982183 1980/81 Total Permits Licenses. Approvals Issued Valuation of Bmldmg Permits Issued Commercial Resldentlal 8532 6,.1.44 7.250 9,869 7,786 5112.970 022 565.008.536 5 98,816,508 515810,628 $45,280.161 46.188.733 34,0]2,753 17,080.376 9,575.323 14,801.900 5159.158.755 599.021.289 $115,896.884 525.385.951 560.082,061 S 948.461 S 788,733 S 583,331 S 323.545 S 431.775 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Total Construction PermIt Fee and Receipts (Excludes Taxes) Retirement System Employees of the City are partiCIpants In the State's PublIc Employees' Retirement System (PERS) under prOVISions of a contract between that system and the CIty The City has particIpated m PERS Since July 1. 1944 Contnbunons to PERS are made by both employees and the City The City's cost vanes based on whether the employee IS claSSified In the "Safety" (police, fire, etc) or "Mlscellaneous" (all other) category As of July 1, 1983. Santa MODIca had 244 active, 53 maclIve and 236 retIred m the Safety category and \vlll contribute an amount equal to 32 11 % of the 1983! 84 annual payroll for Safety category employees, or 52.585.900 There are 999 active, 308 InactIve and 432 retired employees m the Miscellaneous group for which the CIty will contnbute 1250% of the estimated 1983/84 payrolL or S2.531,300 These contnbutIons by the CIty mclude amounts necessary to fund PERS's costs for both current benefits and to fully amortize vaoous unfunded liabilItIes totalhng $36.943,300 not later than the year 2001 Safety membershIps account for $17,540.100 of the total unfunded hablhty 56 57 58 59 60 61 62 83 64 65 66 67 . . - 56 57 56 59 60 61 62 63 64 65 66 67 1 2 Proof of August 30, 1984 SA:\"TA ~1ONICA-8049-9 Bowne of SF. Inc, (415) 864-2300 GALLEY 28 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Self-Supporting Operations Santa MOnica operates an aIrport bus lme, cemetery. and pier and provides water and sewer service A portion of the net mcome from these enterpnses IS transferred annually to the general fund A five-year history of operanons 1S shown m Table 4 followmg The Santa Monica Airport IS a 215-acre gener"l aViation airport, located at the southeastern edge of the City It IS the base for approxunately 550 aircraft The City rents an average of 150 to 200 of Its own aIrcraft tIe-down spaces. and also recelVes commJsslons on fuel sold at the Alrpon, operatIons which help make the arrport a profit-makmg venture In 1984. the City'S 136 buses carrIed almost 13 8 m11hon revenue passengers. while travelIng 3 9 mdhon m11es Ridership Jncreases every year due to excellent coverage (a bus route operates wIthm a quarter-mile of almost every resident) and low cost (regular fares are 50~ V'mh discount fares aVaIlable for the elderly, handicapped and students through the purchase of tokens) The City's Transportation Department has also sponsored charter and excursion programs The Woodlawn Cemetery Mausoleum was purchased by the City m 1976 and IS operated as a self- supportmg enterpflse competitIve With comparable pnvate facIlities It IS located m the southeastern portion of the CIty The Water Department of Santa Momca IS operated as a self-supportlDg enterprise About 45 % of the City's water IS supplIed by its 0'k"Il wells. stored III over 16 acres of well field~ .md reservOir grounds on City-owned property mSlde and outside the City lImits The remammg 55% of the water 1S purchased from The Metropolitan Water Dlstnct of Southern CalIfornia The City's modern. automated system debvers over 15 million gallons per day to 15,500 water accounts, at a cost of less than 22e per ton The CIty's own water chemIst 5uperv1ses oyer 1,700 separate water qual1ty and safety tests per month in State-hcensed labora- tones, to ensure that the highest standards are met before delIvenng the water to the customer's tap. The Santa Momca Pier IS a Los Angeles County hlstoncal landmark buI!t at the turn of the century, It currently contams vanous restaurants, amusement and other retaIl establIshments Its restoration and reconstructIOn IS the object of a multI-mIllIon dollar reJuvenallon project, the first phase of whlch lS underway. The PIer's famous 1900-vlDtage carousel has been completely restored Also meluded 1D Phase I of the project IS the construction of a new entry-way to the PIer 10 contam a chlldren's park. deck space extensIOn and add1ll0nal retatl space Constructlon IS scheduled to commence 10 Wmter 1985 FeaSibility analyses are under review as to the actual reconstructlon of the Pier Further testmg wtll be done over the next several months Once the prOject IS completed. It IS anticipated that addmonallmprovements wlll be made to the Pier Sewage treatment IS prOVIded for the City by the Los Angeles County Samtatlon DJStnct's Hypeflon Plant, located In El Segundo One sewer lIft plant eXists wlthm the City boundarIes Sewage treatment lS self-supportmg from sewer trearment fees based on the amount of water consumed by the customer 31 32 33 34 3S 38 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . 2 SAKTA :\1O:\'ICA-8049-9 Bowne of SF. Inc. (41.5) 864-2300 Proot 01 AagllSl 30, 1984 GALLEY 29 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 TABLE 4 CITY OF SANTA MONICA MAJOR UTILITY OPERATIONS REVENUES AND EXPENDITURES FISCAL YEARS ENDING JUNE 30 1978/79 1979/80 1980181 -981/82 1982/83 A,rport Gross Revenue 579 491 S 814.000 $ 9(;7000 $1.019.101 1.044377 Operatmg and Mamtenance Expen~e 352.103 557.000 473.000 448,755 543,882 Depreclallon 45,000 46.231 45.735 Transfers lIn} Out 181.602 571.000 (337.0001 382,114 269.840 -- "et Income (Loss) S 786 $ 1314.0001 $ 831.000 " 142001 182 920 CapItal Oullar S 57.389 $ S 62.000 S MUnICIpal Bus Line Gross Revenue 5,992,089 7,092,000 8,498.000 9,141.612 :0.036.832 OperalIn!! and Maintenance Expense 5,992,089 7,092.000 8,498.000 9,141.612 10.036.832 Depreclalion 41i7,305 827.000 838.000 982.255 1.225.689 "iel Income (Loss) ( 467.305) (821.000) (838.000 ) (982.455 ) ( 1.225,6891 CapItal Outlay S 1,030, IT:! $5,673.000 S 2,732 .000 S 469,284 $ 8,352.902 MUniCIpal Cemetery Gross Revenue 313,448 274.000 312.000 330.162 385.569 Operanng and \.famtenance Expense 250.283 264.000 323.000 368.497 428.041 DepreCiatIOn 7.266 5,223 Transfers nn) Out (]5.Q00) (81.2141 "et Income (Loss) 63,165 25.000 (11,0001 35,613 147.6951 Capital Oullay $ 11.000 5.000 S 5.210 S Water Gross Revenue 3,749.646 2,936.000 3.481.000 8,135.556 7.813.727 Operacrng and Mallltenance Expense 3.303.327 2,648.000 3.388.000 4.327.538 4.566.319 DeprecIatIon 741.063 1.183.000 I 388,000 415,266 412,149 Transfers (In) Out (1,659,000 ) (550001 :--;el Income (Loss) $ 1294,744) S 764.000 $(1.295,000) 53.392.752 2.890.259 Capllal Ouday $ 864,151 S 689,502 $ 1.445.656 51.033 559 $ 892.051 Santa :\lollIca PIer Gross Revenue 567,856 754.000 809.000 766,057 "'75.321 Opera[l1lg and lfam[enance Expense 470,5(}] 589,000 890,000 458.892 654.109 DepreCiation 59.239 44.762 Transfers rIn) Out (1.000 ) (25000) l'o;et InCOme (Loss) $ 97.355 $ 166.000 S /81.0001 S 247 926 S 201.450 CapIlal Outlay S S 251.803 188.205 S 332.819 S 498.255 Sewers Gross Revenue l.309.0oo 2,245.000 2.656,425 2.222.011 Operatmg and Mallltellance Expense 746.000 876.000 1.073.530 7493il DepreCIatIon 102,279 114..19 Transfers (In) Oul 50.000 55,000 Ne[ Income 5 $ S 513,000 S U69.000 51,480,616 $ 1.303.22] CaPItal Outlay S $ 30.106 S 348.958 $ 850,637 S 448.134 {D Water and Sewer Fund are combIned for 1978/79 56 57 58 59 60 61 62 63 64 65 66 67 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . 'I 2 P,oof Qf AugUst 30, 1984 SA~TA ....W:-lICA-0049-9 Bo\'me of SF, Ine. (415) 864-2300 GALLEY 30 Direct and Overlapoing Debt The CIty of Sama MOllica has no general obhgatIon bonds outstandmg. none are authonzed and the City IS precluded by Article XIII A of the California Constitution from authonzmg such Indebtedness Dlfect and overlappmg bonded mdebtedness IS shown III the followmg labulatlOn compiled by Callforma Mumclpal Statistics, Inc , of San FranCISco. Cahforma TABLE 5 DIRECT AND OVERLAPPING BONDED DEBT CITY OF SANTA MONICA Issuer Percent Applicable Debt as of October 9. 1984 Los Angeles County Los Angeles County BUilding AuthOrIties Los Angeles County Flood Control Dlstnct ).,fetropolItan Water DistrIct Los Angeles CommuDlty College Dlstnct Los Angeles eDIfied School DlstnCL Santa MOOlca l:OIfied School DIstncI City of Santa MODIca Parking Authonty and Redevelopment Agency Total Direct and Overlappmg Bonded Debt 2 022 % 2022 2085 1 164 0010 0003 72 597 100 S 50S50 14,720665 6,133,201 5,331.248 326 3.203 2.123.462 17,595.0008 S45.957.655 RatIos to Assessed ValuatIOn @ Direct Debt Total Debt Per Capita RatIOS (population 93,100) Direct Debt Total Debt Assessed Valuation S 189 $ 494 545.327 042% 109% 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Share of Authonz;ed and L'nsold Bonds MetropolItan Water DIstrict Los Angeles Counry Flood Control Dmnct State School Budding Aid Repayable as of 10/9/84 $4.248.600 S 384,683 S Q) Excludes Sene. 1984 Bonds to be .old 0$4.219,975,970 after deductIOn of 5161,527,785 tax mcrement allocatIOn 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Proof of Augusl 30, 1984 . GALLEY 31 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 27 . . SA'\TA ~fONICA-8049.9 Bo,vne of SF, Inc. (415) S64-2.300 Economic Characteristics of Populatlon FIgures concernmg !Dcome groupmg per household are shown m Table 6 The Oly of Santa yloTIlca has a hIgher percentage of Its populatIOn m the hIgh Income group tl1an the 3ther areas It.s lower than the other areas III the hIgher Imddle Illcome levels and meets or exceeds the other areas III low and moderate mcome levels TABLE 6 INCOME GROUPING FOR 1983 Income Per Santa Los Angeles Stale of United Household Momca Cou nty California Slates $ 0- 9,999 165% 172% 159% 188% $10.000-19.999 233 220 21 3 235 520,000-34,999 295 285 29 I 307 535,000-49.999 157 179 190 169 $50,000 and over 150 144 142 10 I Effective bUY-lOg IDcome III Santa MOUlca Increased by 34% between 1979 and 1983 compared to 38% for Los Angeles County as a whole and 51 % for the State Santa MODIca's per household mcome was less than Los Angeles County and the State of California but greater than the nanon as a whole (see Table 7 below) It should be noted that per capita Income ID 1983 for Sanla MOnIca ($15,048) was higher than m Los Angeles County (SlO,979), the State ($11.222), and the natIon ($9,890) 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 SO S1 52 TABLE 7 EFFECTIVE BUYING INCOME (OOOomllled) SaMa Monica Los Angeles County State of California Umted Stales Year 1979 1980 1981 1982 1983 MedIan Household EffectIve Buymg Income 1983 (000 mcluded) $ 921,440 988,098 1,094,342 1,239.248 L351.3 94 $188.288064 216.4.59.459 240,060.169 261.868,372 284.288.701 $1.618.642.884 1,814,166.815 2.012.116,899 2.169,679.437 2.329.209.922 $61,425,789 68,250.824 74.740,865 79.155,]46 84,749,032 $25,280 526.040 $23.420 $24.518 5a 57 58 59 60 61 62 63 64 65 66 67 1 2 Proof of Augusl 30, 1984 . GALLEY 32 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26 26 . . SA.\TA ~fONICA-S049-9 Bownl:' of SF. Ine, (415) 864-2300 In terms of retaIl sales between 1979 and 1983. Santa .\1omca IOcreased by 57o/c, well above the 23 % to 30% IDcreases shown In Table 8 below for La> Angeles County and the State of CalIfornia Santa Momca accounts for 1 2% of Los Angeles County's total population while Its retail saks volume represents over 2 3 % of the County total One logical conclusIOn Is thai Santa MODIca serves as a retail center wnhm Los -\ngeles County TABLE 8 CITY OF SANTA MONICA RETAIL SALES (000 omitted) Calendar Year Los Angeles CountyQ: Stale of CallfornlaQ; Santa Monlca(i; 1979 1980 1981 1982 1983 S 87,270.460 94,210,919 101.665,786 102.008.817 113349875 $498,513 567.450 679.348 709,682 782.128 S27,264.393 29.706.332 31 724.831 31.081.240 33.570.253 Q; Source State Board of EqualizatIOn, Taxable Sale. III Callforma 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 61 52 Taxable transactIOns between 1979 and 1983 lUcreased by nearly 53%. whIch IS shghtly lov,er than the lDcrease III volume of retaIl sales The larger lllcreases were noted m the General Merchamhse and the Apparel categones, as shown m Table 9 followmg TABLE 9 CITY OF SANTA MONICA TAXABLE TRANSACTIONS 1979-1983 (000 omitted) Type of BUSiness 1979 1980 198' 1982 1983 Apparel 5 28.210 5 34.613 S 51.653 S 53.473 S 54991 General merchandise 48.561 54,824 78.555 89,991 100.704 Eatmg and dnnkmg 85.836 104.383 115.347 125.200 130.675 Auto dealers and supplIes 131,382 137,283 159.455 172.918 213.121 All others 328.980 381,673 427,035 436.726 451.717 ~ Totals 5622.969 5712.776 5832,045 5878.308 $95] .208 Source Cahforma State Board of Equahzalion 56 51 58 59 60 61 62 63 64 66 86 67 1 2 Proof of Augusl 30. 1 S84 . GALLEY 33 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2Q 21 22 23 24 25 26 27 - . SAXTA ~1O~ICA-8049-9 Bowne of SF. Inc, (41,5) 864-2300 Employment Santa Momca's location In Los Angeles County, the second largest metropolitan area III the Umted States, proVIdes access to vaned employment OpportullItIeS for Its CItizens. many of whom work outsIde the City The foUowmg Table 10 summanzes hlstoncal employment of nonagncultural wage and salary workers In the Los Angeles-Long Beach metropolttan area over a five-year l'enod The figures presented are annual averages whIch are estimated by the CalifornIa Employment Development Department The changmg employ- ment figures reflect the growmg Importance of the serVIces sector TABLE 10 LOS ANGELES-LONG BEACH METROPOUTAN AREA ESTIMATED AVERAGE ANNUAL EMPLOYMENT BY INDUSTRY NONAGRICULTURAL WAGE AND SALARY WORKERS 1979 1981 '983 1980 '982 ~anufacturmg RetaIl and Wholesale Trade SerVIces Government Fmance, Insurance and Real Estate Transportatlon. CommullIcatlons and Ctlhl1es Construction Mmeral Extraction 912.100 816900 829.300 482,900 234.600 200.800 122.400 13.000 3.612.000 916.100 820.700 857.100 475.300 239.300 201.400 122.400 14.400 3,646,700 924.900 814.100 808.700 482.800 224.200 198.300 119.800 12 000 -~ 3584,800 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Total Source State of Cahfom,a Employment Development Department TABLE 11 LOS ANGELES COUNTY ESTIMATED AVERAGE ANNUAL EMPLOYMENT AND UNEMPLOYMENT OF RESIDENT LABOR FORCE 861.900 813.300 869.1 00 461.600 237.000 196.700 105.200 14,700 3.559 500 849.700 80B.200 882,700 462.000 235.900 194.200 94.600 12700 3.540.000 1979 1980 1981 1982 1983 Employed 3.447,000 3.544.000 3.481.000 3.432.000 3.377.000 Unemployed 202,000 250.000 258000 352.000 363.000 Total Work Force 3.649,000 3.794.000 3.739000 3.784000 3.740.000 Unemployment rate 55% 68% 69% 93<:;; 97% Source Stale of Callforma Emplo\'ment Development Department 56 57 58 59 60 61 62 63 64 85 66 67 1 2 Proof of August 30, 1984 . GALLEY 34 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . SA~TA ~IO:\ICA-8049-9 Bowne of SF, Inc. (415) 864-2300 Utilities and Community Facilities Southern CahforflIa Gas Company IS the supplIer of natural gas to the Clt} and electncny IS offered through the facllltles of Southern CahfoIDla Edison Company General Telephone Company proVIdes tele- phone service Santa MODIca has two major hospitals-Santa MOllica HospItal MedIcal Center and St Johns Hospital Medical Center-plus numemus medIcal cllllICS and convalesc'='nt hosp'tals The City has one mam hbrary and three branches, over 50 churches, two newspapers two radlO sta- tIOns. a TV cable system. 22 savmgs and loan offices. 17 bank branches. ten parks, two playgrounds and a mUnICipal pier EducatIOnal facilIties In the City melude nine elementary schools. Iwo JUnior high schools. one high school. a community college and a contmualIon school There are many other higher education Institu- tIons located WIthin easy commutmg distance, such as the UnIversay of CalIforma at Los Angeles (UCLA). the CnIversIty of Southern California (USC), CalIforma State UmversIty at Long Beach. CalIfornia State UnrvcTSlty at Dommguez Hills and Loyola-Marymount Unl\'ersuy T ransportatlon Santa MOnIca is located adjacent to two pnncipal Cahfomm coastal highway routes and is bisected by the Santa MOnIca Freeway, thus lInked to the Los Angeles Metropolitan Area and the Los Angeles InternatIOnal AIrport 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 The Southern Cahfornla RapId Transit DIstnct's extensIVe network of bus routes meludes several which serve the. Santa MOnica area and proVides mterface wIth other passenger carners. mcludmg Santa ~1onIca's bus system The Los Angeles InternatIOnal Airport. only SIX mues from the City, IS the west's largest and bUSIest commerCial airport It IS served by most major airlines as well as by numerous feeder hnes, charter ser- vices and scheduled and non-scheduled aIr-freight carners Air traffic volume for calendar year 1983 lTIc!uded 33,095.648 passengers and 730,058 tons of aIr freight and mall Deep water shIppmg facilities al Los Angeles and Long Beach Harbors are wlthm a short distance from Santa MOnica Los Angeles County IS studymg countYWide posslbllitIes for routes for a Metrorall system The CIty has been actively Involved In diSCUSSions WIth the County. and Santa ;vIonIca IS bemg conSIdered for future extenSIOns of the MetroraIl 56 57 58 59 60 61 62 63 64 65 66 67 . . . APPENDIX A - f ..' ~( '_ . '._ .. ,/-. ,," > " . T " ''r'',1- ,~~._.:~ A. r:;'1 PEAT I ~ MARWICK THE REDEVELOPMENT AGENCY OF r.-iE CITY OF SANTA MONICA, CALIFORNIA Combined Financial Statements June 30, 1983 (With Accountants' Report Thereon) . . . r=1 PEAT I ~ fv1AR\VICK Peal. \lai""lck, \lllchell &. Co Cel1ltied Pubhc ,>,ccDunlaOlS 555 SO'J~h F\""l\l.,~T S'l\..et Los -\ngdcs. C~lltoml3 90lFl The Members of the Redevelopment Agency of the City of Santa Monica, California: We have examined the combined balance sheet of the various funds and account group of the Redevelopment Agency of the City of Santa Monica as of June 30, 1983 and the related combined statement of revenues, expenditures and changes in fund balances (deficits) for the year then ended. Our examination was ~ade in accordance with generally accepted auditing standards and, accord~ngly, included such tests of the accounting records and such other auditing procedures as we considered necessary 1n the circumstances. In our op1nion, the aforementioned comb1ned flnancial statements present fairly the flnancial position of the various funds and account group or the Redevelopment Agency of the City of Santa ~onica at June 30, 1983 and the results or operations of such funds for the year then ended, in confor~lty with generally accepted accounting prlnc~ples applled on a basls conSiStent with that of the preceding year. -P~i: 7'1~ r10.i:{htf f &, I I . October 14, 1983 ~ . . . -< "'- =Z "'':1 ...0:: e- ..J "'... '-'U Z '" "'... <~ '-Z ze "'''' '" ..... e.... -'z "'.. >'" '" "'... :.Je '" '" "'.... =- ....u .... " " .c '" " c ~ .. '" ." " ~ .c e '0 <.J '"' '" '" e "" = ~ 1 -g-:~';j ::a...... -I ~ ~ i 51 " '" ~ ~ ~ ~l " , " ..: ::!'''''O ~ 0 ... .. ~ ... <i w e wI t-;:5"~~ "... - o c: -II 0 Q i-' = > W ... Qj -:I g,. a.. y.~ '; o,i/ <; " - ";1- ~ :;1 QJ~u"'C~ > w ~ c....... "I" U 0- "C "":I C ~""I U:J!- I C1Cr:&.- ~ ... ~, ... .. .. ... c: .. .. " o c: o .. ~ -gl .. 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"''"' .,..... -'" '"' - ~J ~ ~I ~I ;;1 ~. ~l iJ ~1i; di ~l 4' <I> .. .. .... ... .,.., " " ... .... . -: I'D - ~ :::: ~ loo ~ ....c- .... " ., t.I ::: Ql ""'" V "C :..w C .:: ~ ~ = ~... , " U'....-: 1i 1.1 <.; -t::' :> -:: ::;; 100 ~ > ~ .. ? -:c ~ l: ..::: ..II ... ::J = 'E:C:= t&: .... .I> .. ;: ~ Q .... ~ .. .... " - .... " '"C .. " ... ~ .. .c 1 .. ... .:: 511 OJ 51l -I ....1 _I ~I -1 ,"" I ~J ~J -/ .. ... c: " E '" ... " ... .. - .. u " .. c: c ., ~ " " ;; " '" " c ... .0"; .. " _.r; - ., " ... -;; g ~ -.. 2 ~ " ::: ;;- " " " .. " " '" ~- - . . WRITTEN CONSENT PURSUANT TO GOVERNMENT CODE S53691(c)(2) The Redevelopment Agency of the C1ty of Santa Monlca hereby consents, as requ1red by Section 53691{c){2) of the Government Code, to the acquisltion, as princ1pal, elther alone or as a particlpant in a syndicate or other similar account formed for the purpose of purchasing, directly or indirectly, from the Agency all or any portlon of the Agency's "Ocean Park Redevelopment Project Tax Allocation Bonds, Ser1es 1984" by Paine Webber Incorporated, or to the arrangement by said firm for such acqu1sitlon or particlpatlon by a person controlling, controlled by, or under common control wlth said flrm. REDEVELOPMENT AGENCY OF CITY OF SANTA MONICA By 12. /11 ~ Secretary Dated: September 11, 1984 2 . Project revenues [ncremental p~opertJ [a~e5 Interest. Rent Ocher income Total project revenues T"E REDE~ELOP~ENT AGENCY OF THE CITY OF S~~TA MONICA, CALIFURNIA Combined State~nt of Reven~es, Expendieures and Changes in Fund Balances (Deficits) Year ended June 3D, 1983 Oo~ntown Redevelooment Project S 843,080 450,41!> I,L89,705 110,591 2,593,792 O~ean Tax Allocation Fund 757,800 100,4&0 858,2&0 Park Redevelopmene Prolect Federal Total Allocation Ocean Park Fund Redevelopwent (R-37/44) froject 757,800 100,4&0 29,24\ 29,241 .. H,,41 887,501 Total (Memorandum. only) 1,&UO,880 550,87& 1,189.705 139,832 3,481,293 Les. project expenditures Program salarIes and administra- tive r.09tS. including technical and professional personnel 77 ,680 190,567 2,814 193,381 271,0&1 . Real estace acqui~ition 5,665 5,665 5,665 Interest 2,588,453 (100) 346,169 346,069 2,934,522 Site clearance and imp rov-ements 3,300 3,300 3,300 Relocation and co...n1ty orga.niz;atlolJ 1,734 1,734 Reimbursed to Cicy for bond payments 538,893 538,893 Bond principal paYment 190,000 190,000 Total project expenditures 3,396,760 199,432 348,983 548,415 3,945,17 5. Excess (defiCiency) of reven~e5 over {under) expendicut'es (802,968) 658,828 (319,742) 339,086 (463,882) F~nd balances (deficits) at beginning of year (2,087,7110) 700,950 (3,873,6)0) (3,172,680) (5,260,380) Fund balances (deficits) at end of year $(2,890,&68) 1,359,718 (4,193,372) (2,833,594) (5,724,262) . See accompanying notes to combined financial statements.