SR-8D (7)
FIN:TREASURY:RB:DC:br\a:adminwp\srostrll
September 13, 1994
80
Santa Monica, CA
SEP f 3 199't
STAFF REPORT
TO: Mayor and Council Members
FROM: City Staff
SUBJECT: ORDINANCE SETTING THE FY 1994-95 TAX RATE FOR THE MAIN
LIBRARY IMPROVEMENTS PROJECT GENERAL OBLIGATION BONDS
....
INTRODUCTION
This is to recommend that the City Councll adopt the attached
ordinance setting the FY 1994-95 tax rate for the 1990 Main L~brary
Improvements Project General Obligation Bonds at $.004338 per $100 of
assessed value.
BACKGROUND
The City issued $4.5 million in General Obligat~on Bonds on April 10,
1990 for the purpose of meeting the immediate parking and future
expansion needs of the Main Library. As speclfied 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.
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SEP I 3 1991t
80
DISCUSSION
The City Treasurer has calculated the necessary property tax override
to be $.004338 per $100 assessed valuation of secured property for FY
1994-95 based upon information provided by the Los Angeles County
Auditor-Controller. The FY 1994-95 override of $.004338 per $100 of
assessed valuation, while h1gher than the FY 1993-94 and FY 1992-93
rates, is lower than the rates assessed 1n FY 1990-91 and FY 1991-92.
Revenues resulting from the tax rates applied in FY 1991-92 and FY
1992-93 were greater than ant1cipated, therefore excess revenues were
available in FY 1992-93 and FY 1993-94. However, FY 1993-94 revenues
were essentially on budget, leav~ng only a minor amount of excess
funds available for use 1n setting the FY 1994-95 tax rate.
Calculation of the FY 1994-95 property tax rate is as follows:
$380,064
Net Requirements for FY 1994-95 (Debt
Service less prior year adjustments)
<16,042>
Projected Unsecured Property Tax
Revenues for FY 1994-95*
$364,022
Projected Net Debt SerVlce
Requlrements to be Financed by a Levy
on Secured Property for FY 1994-95
$364,022
$8,390,584,582**/$100 = Tax Rate of $.004338
* Unsecured revenues are calculated applying the prior year
secured tax rate to current year assessed valuation of
unsecured property. ($.003481/100 x $460,839,285)
** Reflects total City secured assessed valuation for FY
1994-95.
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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
1994-95 budget.
The Property Tax impact of this tax override levy on an
average res~dence which has a secured assessed value of
$220,000 is $9.S4/year.
RECOMMENDATION
It is recommended that the City Council introduce and adopt
the attached ordinance setting the FY 1994-95 tax rate for the
1990 Ma~n Library Improvements Project General Obligation
Bonds at $.004338 per $100 of assessed value.
Prepared by:
Mike Dennis, Director of Finance
Ralph Bursey, Revenue Manager/City Treasurer
Dav~d Carr, Ass~stant C~ty Treasurer
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atty\muni\laws\mtt\library
City council Meeting 9-13-94
Santa Monica, California
ORDINANCE NUMBER
1769
(City council series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA
SETTING THE 1994-95 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 th~rds of all the voters voting
on the proposition, the issuance of General Obligation Bonds (the
"Bondsll) in the principal amount of $4.5 m111ion was authorized
for the purposes of financing acqu1sition and improvement of real
property for meeting parking and future expansion needs of the
Main Library; and
WHEREAS, on February 13, 19901 the City Council adopted
Resolution Number 7976 (CCS) (liThe Bond ResolutionU), authorizing
the issuance of such Bonds and such issuance and sale of the
Bonds occurred on April 10, 1990i and
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,
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WHEREAS, the city Counc11 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
corning due for princlpal 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 additlon to all other taxes
leVled 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 Councll hereby sets the Fiscal Year
1994-95 ad valorem Tax Rate for the Main Library Improvements
Project General Obligation Bonds Series 1990 at $.004338 per
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$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:
~&
MARSHA JONES .. OUTRI E
City AttorneY'
3
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Adopted and approved tlus 13th of September, 1994
(). M~
Mayor
I hereby certify that the foregoIng Ordmance No 1769 (CCS) was duly adopted at a
meetIng of the CIty CouncIl held on the 13th of September, 1994 by the follOWIng vote.
Ayes Councllmembers'
Abdo, Genser. Greenberg, Holbrook. Olsen. Rosenstem,
Vazquez
Noes. CouncIlmembers'
None
Abstam Councllmembers
None
Absent' CouncIlmembers:
None
ATTEST
~ )l-~
~ City Clerk