SR-8-B (101)
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SEP 1 0 1991
Santa Monica, California
FIN:TREASURY:RB:DC:srostrli/word~pobas
September 10, 1991
STAFF REPORT
TO: Mayor and city Council
FROM: city staff
SUBJECT: ORDINANCE SETTING THE FY 1991-92 TAX RATE FOR THE MAIN
LIBRARY IMPROVEMENTS PROJECT GENERAL OBLIGATION BONDS
INTRODUCTION
This is to recommend that the City Council adopt the attached
ordinance setting the FY 1991/92 tax rate for the 1990 Main
Library Improvements Project General Obligation Bonds at $~004492
per $100 of assessed value~
BACKGROUND
The city issued $4.5 million in General Obligation Bonds on April
10, 1990 for the purpose of meeting the immediate parking and
future expansion needs of the Main Library_ As specified by
Section 606 of the Santa Monica City Charter and Section 43632 of
the State of California Government Code, the annual debt service
on these General obligation Bonds is to be payable from an
override on the property tax which is levied annually for the
period that the bonds are outstanding.
DISCUSSION
The city Treasurer has calculated the necessary property tax
override to be $.004492 per $100 assessed valuation of secured
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R-Ji
SEP 1 V 1991
property for FY 1991-92 based upon information provided by the
Los Angeles County Auditor-Controller.
Calculation of the FY 1991-92 property tax rate is as follows:
$383,295
Debt service for FY1991/92*
(23,371)
Excess Property Tax Proceeds
Received in FY 1990/91
$359,924
Net Requirements for FY 1991/92
(25,391)
Projected Unsecured property Tax
Revenues for FY 1991/92**
$334,533
Projected Net Debt service Require-
ment to be Financed by a Levy on
Secured Property for FY 1991/92
$334,533
$7,446,753,470***/$100 = Tax Rate of $.004492
* Reflects debt service payments to bond holders due 1/1/92
and 7/1/92 but paid by the City to Bond Trustee during FY
1991/92.
** Unsecured revenues are calculated applying the prior year
secured tax rate to current year assessed valuation of
unsecured property. (.006428/100 x $394,999,884)
*** Reflects total city secured assessed valuation for FY
1991/92.
In accordance with section 1501 of the city Charter, the City
will use the County system of assessment and collection of
property taxes.
BUDGET/FINANCIAL IMPACT
Adoption of the attached ordinance has no impact on the FY
1991-92 budget.
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The Property Tax impact of this tax override levy on a residence
with a secured assessed value of $500,000 is $22.46/year.
The FY 1991-92 tax rate of $.004492/$100 of assessed value is
reduced from the FY 1990-91 tax rate of $.006428/$100 of assessed
value because last year's tax rate had to generate sufficient
revenues to pay debt service for the start-up period of 4/10/90 -
6/30/91. FY 1991-92 and future years debt service requirements
will reflect only a one-year period.
RECOMMENDATION
It is recommended that the city Council introduce and adopt the
attached ordinance setting the FY 1991-92 tax rate for the 1990
Main Library Improvement Project General Obligation Bonds at
$.004492 per $100 of assessed value.
Prepared by: Mike Dennis, Director of Finance
Ralph Bursey, Revenue Manager/City Treasurer
David Carr, Assistant City Treasurer
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CA:RMM:mox144/hpw
City Council Meeting 9-10-91
Santa Monica, California
ORDINANCE NUMBER 1600(CC5)
(City council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA SETTING THE 1991-1992
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 proposition, the issuance of General Obligation Bonds (the
II Bonds " ) in the principal amount of $4.5 million was authorized
for the purposes of financing acquisition and improvement of real
property for meeting parking and future expansion needs of the
Main Library: and
WHEREAS, on February 13, 1990, the city Council adopted
Resolution Number 7976 (CCS) (liThe Bond Resolutionll), authorizing
the issuance of such Bonds and such issuance and sale of the
Bonds occurred on April 10, 1990; and
WHEREAS, the City council of the City of Santa Monica is
empowered and obligated to levy ad valorem taxes for the payment
of said Bonds and the interest thereon, upon all property within
the City subject to taxation by the City: and
WHEREAS, in accordance with the Bond Resolution, the City
Council is 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
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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 Resolution shall be in addition to all other taxes
levied for City purposes, shall be collected at the time and in
the manner as other city 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
MONICA DOES ORDAIN AS FOLLOWS:
SECTION 1. The city Council hereby sets the Fiscal Year
1991-1992 ad valorem Tax Rate for the Main Library Improvements
proj ect General Obligation Bonds Series 1990 at $.004492 per
$100.00 of assessed value for property located within the City of
Santa Monica.
SECTION 2. This Ordinance shall take effect upon adoption
pursuant to Santa Monica Charter Section 619(C).
SECTION 3. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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Adopted and approved this loth day of September, 1991.
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I hereby certify that the foregoing Ordinance No. l600(CCS)
was duly and regularly introduced at a meeting of the city
Council on the lOth day of September 1991; that the said
Ordinance was thereafter duly adopted at a meeting of the city
Council on the lOth day of September 1991 by the following
council vote:
Ayes: Councilmembers: Genser, Holbrook, Katz, Olsen,
Vazquez I Zane, Mayor Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
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