SR-203-001-03 (10)
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C:\Documents and Settings\Claudia.Thompson\Local Settings\Temporary Internet
Files\OLK42\Library Bonds Tax Rate 0506.doc
Council Meeting: September 13, 2005 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Ordinance Setting the FY 2005/06 Tax Rate for the 1990 and 2002 Library
General Obligation Bonds
INTRODUCTION
This report recommends that the City Council adopt the attached ordinance setting the
FY 2005/06 tax rates for the 1990 and 2002 Library General Obligation Bonds.
BACKGROUND
On April 10, 1990, the City issued $4.5 million in General Obligation Bonds to acquire
property adjacent to the Main Library to meet immediate parking needs and for future
library expansion. On June 25, 1998, the City refunded a portion of the 1990 bonds at a
lower interest rate resulting in a lower tax rate assessed to local property owners. On
August 27, 2002, the City issued $25 million in additional voter approved General
Obligation bonds for construction, improvement, and remodeling of the Main Library and
branch libraries. The City annually sets the tax rate required to pay the annual debt
service on all Library-related General Obligation bonds.
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SE? 1 3 2005
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DISCUSSION
From FY 1990/91 through FY2001/02 the tax rate was set on the annual debt payment
for the 1990 Library Bonds (refinanced in 1998). FY 2002/03 was the first year that tax
rate included the 2002 Library Bonds.
The Finance Department has calculated the total property tax rates for FY2005/06 to be
$.004066 per $100 of assessed valuation for the 1990 Bonds (refinanced in 1998) and
$.011285 per $100 of assessed valuation for the 2002 bonds,
BUDGET/FINANCIAL IMPACT
The tax revenue generated from the Library bonds tax rates is already included in the
FY2005/06 budget.
RECOMMENDATION
It is recommended that the City Council introduce and adopt the attached ordinance
setting the FY 2005/06 tax rates for all Library-related General Obligation bonds as
follows:
1) $.004066 per $100 of assessed valuation for the 1990 Bonds (refinanced in
1998).
2) $.011285 per $100 of assessed valuation for the 2002 Bonds.
Prepared by:
Steve Stark, Director of Finance
Janet Shelton, Budget Manager
David Carr, Principal Budget Analyst-Investments
Attachments:
Calculation of Tax Rate
Ordinance
See Adopted Ordinance No. 2167 (CCS).
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ATTACHMENT 1
CALCULATION OF TAX RATES
Calculation of the FY 2005-06 property tax rates are as follows:
1998 Bonds
$529,834
Net Requirements for FY 2005-06 (Debt Service
less prior year adjustments)
(17,075)
Projected Unsecured Property Tax
revenues for FY 2005-06"
$512,759
Projected net debt service requirements to be
financed by a levy on secured property for FY 2005-06
512,759
12,611,755,647 .... 1$100
=-
FY 2002 Bonds
$1,968,645
Net Requirements for FY 2005-06 (Debt Service
less prior year adjustments)
(60,909)
Projected Unsecured Property Tax
revenues for FY 2005-06"
$1,907,736
Projected net debt service requirements to be
financed by a levy on secured property for FY 2005-06
$1,907,736
$16,904,933,016 .... 1$100)
-
= ~",.~ .:.,' - - '-' :" - ,: - , ': ,,' ,~ "
.. Unsecured revenues are calculated applying the prior year secured tax rate to current year assessed valuation
of unsecured property,
.... Reflects total City secured assessed value for FY 2005-06 adjusted to reflect projected delinquent parcels,
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