SR-8-C (95)
grU). * rQ22..
f j:~O -r~-f;o.--
8~
FINANCE DC g \finance\treas\share\lItr99
Council Meetmg September 8, 1998
SEP - 8 IJ98
Santa MOnica, CA
STAFF REPORT
TO Mayor and City Council
FROM City Staff
SUBJECT ORDINANCE SETTING THE FY 1998.99 TAX RATE FOR THE 1990 MAIN
LIBRARY GENERAL OBLIGATION BONDS
INTRODUCTION
ThIS report recommends that the CIty Council adopt the attached ordInance settIng the FY
1998-99 tax rate for the 1990 Main Library General Obligation Bonds at $ 004273 per $100
of assessed valuation
BACKGROUND
On Apnl 10, 1990, the City Issued $4 5 million In General Obligation Bonds to acquire
property adjacent to the MaIO Library to meet Immediate parking needs and for future
library expansion The annual debt service on the 1990 General Obligation Bonds
(Including the refunded portion) IS payable from an annual overnde on the Property Tax
levy On June 25, 1998, the City refunded a portion of the 1990 bonds at a lower Interest
rate resultmg In a lower tax override rate assessed to local property owners
DISCUSSION
The City Treasurer has calculated the necessary property tax overnde to be $ 004273 per
$100 of assessed valuation, which IS 92% lower than the FY 1997-98 rate ThiS lower tax
1
gc,
SEP - 8 ..
rate reflects the recent refunding of a portion of the 1990 bonds and an Increase In City
assessed valuation
Calculation of the FY 1998-99 property tax rate IS as follows
$396,194
Net Requirements for FY 1998-99 (Debt Service
less pnor year adjustments)
(23,264 )
Projected Unsecured Property Tax
revenues for FY 1998-99*
$372,930
Projected Net Debt Service Requirements to
be Financed by a Levy on Secured Property
for FY 1998-99
$372,930
;;;; Tax Rate of $ 004273
($8,727.241,749**/$100)
*
Unsecured revenues are calculated applYing the prior year secured tax rate
to current year assessed valuation of unsecured property ( 004705 x
$494,450,916)
**
Reflects total City secured assessed valuation for FY 1998-99 adjusted to
reflect projected dehnquent parcels
In accordance with Section 1501 of the City Charter, the City uses the County system of
assessment and collection of property taxes
BUDGET/FINANCIAL IMPACT
Adoption of the attached ordinance has no Impact on the FY 1998-99 budget The
Property Tax Impact of thiS override levy IS $4 27 per $100,000 of assessed valuation as
compared to $4 70 per $100,000 assessed valuation In FY 1997-98
2
RECOMMENDA TION
It IS recommended that the City Council Introduce and adopt the attached ordmance setting
the FY 1998-99 tax rate for the 1990 Main Library General Obligation Bonds (Including the
refunded portion) at $ 004273 per $1 00 of assessed value
Prepared by
Mike Dennis, DIrector of Finance
Ralph Bursey, Revenue Manager/City Treasurer
David Carr, Assistant City Treasurer
Attachment Ordmance
3
atty\muni\laws\mtt\lIbrary 5
City Council Meeting 9-8-98
Santa MOnica. California
ORDINANCE NUMBER 1922
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA SETTING THE 1998-99
TAX RATE FOR THE MAIN LIBRARY IMPROVEMENTS
PROJECT GENERAL OBLIGATION BONDS
P(
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 "Bonds") m the principal amount of $45 million was authorized for
the purposes of financmg 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) ("The Bond Resolution"), authonzlng the Issuance of such Bonds and such
Issuance and sale of the Bonds occurred on Apnl1 0, 1990; and
WHEREAS, on May 26,1998, the City Council adopted Resolution Number 9273
authorizmg the refundmg of a portion of the 1990 General Obligation Bonds for the Main
LIbrary Improvements Project and such refunding occurred on June 25, 1998; 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 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,
1