SR-09-10-1996-8B
88
FINANCE.RB:DC:g.\flnance\treas\share\lltr97
Council Meetlng September 10, 1996
SEP 1 0 1996
Santa Monlca, CA
STAFF REPORT
TO:
Mayor and City Councll
FROM:
City Staff
SUBJECT
ORDINANCE SETTING THE FY 1996-97 TAX RATE FOR THE MAIN
LIBRARY IMPROVEMENTS PROJECT GENERAL OBLIGATION BONDS
INTRODUCTION
This report recommends that the City Council adopt the attached
ordlnance settlng the FY 1996-97 tax rate for the 1990 Maln Library
Improvements ProJect General Ob~lgation Bonds at $.004683 per $100
of assessed valuatlon.
BACKGROUND
The Clty lssued $4 5 ffillllon In General Obligatlon Bonds on Aprll
10, 1990 for the purpose of meeting the lmmediate parklng and
future expanslon needs of the Maln Library.
As speclfied by
Sectlon 606 of the Santa Monlca Clty Charter and Sectlon 43632 of
the State of Callfornla Government Code, the annual debt service on
these General Obligatlon Bonds is to be payable from an overrlde on
the Property Tax that lS levled annually durlng the perlod that the
bonds are outstandlng.
DISCC'SSION
The Clty Treasurer has calculated the necessary property tax
overrlde to be $.004683 per $lOO of assessed valuatloD, wh~ch lS
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88
SEP 1 0 1996
sllghtly less than the FY 1995-96 rate.
This decrease reflects
slightly hlgher than antlclpated collections ln FY 1995-96, WhlCh
wlll be applied to FY 1996-97 debt serVlce payments thereby
lowerlng the FY 1996-97 overr~de rate.
Calculatlon of the FY 1996-97 property tax rate lS as follows
$400,836
Net Requlrements for FY 1996-97 (Debt
less pY10r year adjustments)
(25,465)
ProJected Unsecured Property
revenues for FY 1996-97*
Tax
$375,371
PyoJ ected Net Debt Service Requlrements to
be Flnanced by a Levy on Secured Property
foy ?Y 1996-97
$375,371
$8,015,812,756**/$100
Tax Rate of $.004683
* Unsecured revenues are calculated applYlng the prlor year
secured tax rate to current year assessed valuation of
unsecured property. (,004788/100 x $531,857,990)
** Reflects total City secured assessed valuation for FY
1996 - 97 adJusted to reflect proj ected dellnquent parcels.
In accordance with Sectlon 1501 of the City Charter, the Clty uses
the County system of assessment and collectlon of property taxes.
BUDGET!FINh~CIAL IMPACT
Adoptlon of the attached ordlnance has no lmpact on the FY 1996-97
budget
Tree Property Tax lmpact of thlS overrlde levy on an
average res~dence which has a secured value of $208,600 is $9 77
per year
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RECOMMENDATION
It 18 recommended that the C1~y Council 1ntroduce and adopt the
attached ord~nance sett1ng the FY 1996-97 tax rate for the Ma1n
Library Improvements ProJect General obligat1on Bonds at $ 004683
per $lOO of assessed value.
Prepared by
Mike Denn1s, Dlrector of F1nance
Ralph Bursey, Revenue ManagerjC1ty Treasurer
David Carr, Asslstant City Treasurer
Attachment
Ord1nance
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atty\mllni \ laws \ltli:r \ 1 ibra.'V _ 1
City Council Meeting 9-~u ~ti
Santa Monica, Californ~a
ORDINANCE NUMBER 1861 (ecs)
(City council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA SETTING THE 1996-97
TAX RATE FOR THE MAIN LIBRARY IMPROVEMENTS
PROJECT GENERAL OBLIGATION BONDS
WHEREAS, at the November 8, 1988 general election, by a
favorable vote of more than two thirds of all the voters voting on
the propositlon, the issuance of General Obligation Bonds (the
"Bonds") ~n the principal amount of $4.5 million was authorized for
the purposes of f inanc~ng acquisition and improvement of real
property for meeting parking and future expanslon needs of the Ma~n
Library; and
WHEREAS, on February 13, 1990, the City Council adopted
Resolution Number 7976 (CCS) (liThe Bond Resolution"), authorizing
the lssuance of such Bonds and such issuance and sale of the Bonds
occurred on April 10, 1990; and
WHEREAS, the city Council of the Cl ty of Santa Monica is
empowered and Obligated to levy ad valorem taxes for the payment of
sald Bonds and the interest thereon, upon all property within the
Clty subject to taxation by the city; and
WHEREAS, in accordance with the Bond Resolution, the City
Councll ~s required to fix, levy and collect annually until all of
the Bonds are paid or until there is a sum in the City treasury set
apart for that purpose sufficient to meet all sums coming due for
principal and interest on said Bonds, a tax sufficient to pay the
annual interest on the Bonds and such part of principal as the same
shall become due; and
WHEREAS, the taxes required to be levied and collected by the
Bond Resolutlon shall be in addition to all other taxes levied for
city purposes, shall be collected at the time and in the manner as
other Clty ad valorem taxes are collected, and shall be used for no
purpose other than payment of the Bonds and accrued interest
thereon,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONrCA
DOES ORDAIN AS FOLLOWS:
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