SR-203-001-03-01
FINANCE:DC:f:\finance\treas\share\litr02
Council Meeting: September 11, 2001 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Ordinance Setting the FY 2001-02 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
2001-02 tax rate for the 1990 Main Library General Obligation Bonds at $.003666 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.
The annual debt service on the 1990 General Obligation Bonds, including the refunded
portion, is payable from an annual override on the Property Tax levy.
DISCUSSION
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The City Treasurer has calculated the necessary property tax override to be $.003666 per
$100 of assessed valuation, which is 7% lower than the FY 2000-01 rate. This lower tax
rate reflects an increase in City 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
Adoption of the attached ordinance has no impact on the FY 2001-02 budget. The
Property Tax impact of this override levy is approximately $3.67 per $100,000 of assessed
valuation as compared to $3.94 per $100,000 assessed valuation in FY 2000-01.
RECOMMENDATION
It is recommended that the City Council introduce and adopt the attached ordinance
setting the FY 2001-02 tax rate for the 1990 Main Library General Obligation Bonds,
including the refunded portion, at $.003666 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 2001-02 property tax rate is as follows:
$391,589 Net Requirements for FY 2001-02 (Debt Service
less prior year adjustments)
(22,475) Projected Unsecured Property Tax
revenues for FY 2001-02*
$369,114 Projected Net Debt Service Requirements to
be Financed by a Levy on Secured Property
for FY 2001-02
$369,114
= Tax Rate of $.003666
($10,067,762,573**/$100)
* Unsecured revenues are calculated applying the prior year secured tax
rate to current year assessed valuation of unsecured property.
(.003940 x $570,428,768)
** Reflects total City secured assessed valuation for FY 2001-02 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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