SR-203-001-03 (5)
FINANCE:DC:f:\finance\treas\share\litr03
Council Meeting: September 10, 2002 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Ordinance Setting the FY 2002-03 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
2002-03 tax rate for the 1990 and 2002 Library General Obligation Bonds at $.023414 per
$100 of assessed valuation.
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 override rate assessed to local property owners.
On August 27, 2002, the City issued $25 million of voter approved General Obligation
bonds for construction, improvement, and remodeling of the Main Library and branch
libraries. The annual debt service on all Library-related General Obligation bonds is
payable from an annual override on the Property Tax levy.
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DISCUSSION
The City Treasurer has calculated the total necessary property tax override to be $.023414
per $100 of assessed valuation. Attachment 1 provides details of the tax rate calculation.
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
Any budget changes resulting from adoption of the attached ordinance will be included in
the FY 2001-02 Year-End Budget Review. The Property Tax impact of this override levy is
approximately $23.41 per $100,000 of assessed valuation. The increase of $19.47 from
last year is due to the issuance of the additional bonds in August 2002.
RECOMMENDATION
It is recommended that the City Council introduce and adopt the attached ordinance
setting the FY 2002-03 tax rate for all Library-related General Obligation bonds at
$.023414 per $100 of assessed value.
Prepared by: Mike Dennis, Director of Finance
Ralph Bursey, Revenue Manager/City Treasurer
David Carr, Assistant City Treasurer
Attachments: Calculation of Tax Rate
Ordinance
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ATTACHMENT 1
CALCULATION OF TAX RATE
Calculation of the FY 2002-03 property tax rate is as follows:
$2,511,247 Net Requirements for FY 2002-03 (Debt Service
less prior year adjustments)
(18,306) Projected Unsecured Property Tax
revenues for FY 2002-03*
$2,492,941 Projected Net Debt Service Requirements to
be Financed by a Levy on Secured Property
for FY 2002-03
$2,492,941
= Tax Rate of $.023414
($10,647,116,456**/$100)
* Unsecured revenues are calculated applying the prior year secured tax
rate to current year assessed valuation of unsecured property.
(.003666 x $499,340,705)
** Reflects total City secured assessed valuation for FY 2002-03 adjusted to
reflect projected delinquent parcels.
In accordance with Section 1501 of the City Charter, the City uses the County system
of assessment and collection of property taxes.
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