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HOSP GROVE FINANCING
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I RECOMMENDED ACTION:
Accept the staff report and consider funding acquisition of Hosp Grove through
a cash purchase from the General Capital Construction
Fund augmented by a loan of $2.9 million from the Sewer Construction fund.
Fund and Revenue Sharing
The staff has reviewed the possible funding methods associated with the purchase
of Hosp Grove.
Manager discuss the most viable alternatives.
The attached memorandums from the Finance Director and City
Staff's recommendation is based on the following:
1. The best way to finance a purchase of this type is through General
Obligation Bonds. This effort failed in the November election
and is therefore not available to the City.
2. The next alternative is to use debt financing through the use of
Certificates of Participation and the creation of an income stream
to provide revenue sufficient to meet debt service needs. Since
Council is reluctant to advocate tax increases, reductions in the
General Fund operating budget would be necessary to provide sufficient
funds for interest and principal payments. This alternative is not
recommended due to the present condition of the 1987-88 budget.
3. The final alternative available to the Council is a cash purchase
of Hosp Grove using General Capital Construction Fund and Revenue
Sharing Unobligated Fund balances, and a loan of approximately
$2.9 million from the Sewer Construction Fund. This alternative
will only work if the City can a) repay the loan soon enough to
avoid any conflict with sewer system improvements or sewer plant
improvements requiring major sewer fund cash outlays; and, b) defer
repayment to the end of each fiscal year and use any surplus General
Funds to support the loan repayment.
If the Council wishes to repay the debt from General Fund revenues
as a regularly budgeted item, reductions in General Fund operations
will be necessary.
The staff has reviewed ten different methods of funding the Grove purchase and
finds that the cash purchase is the most viable alternative. These are
summarized in the attached report from the Finance Director dated November 16,
1986.
FISCAL IMPACT:
Funding of Hosp Grove through a cash purchase will require the commitment of
$3.9 million in Unobligated Funds in the General Capital Construction Fund
and Revenue Sharing Fund. This will reduce the funds available for funding
future capital projects, such as Senior Citizens' Center , Library, Las Palmas
acquisition or City participation in street assessment districts.
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AGENDA BILL NO. r8dv
FISCAL IMPACT:
The loan of $2.9 million from the Sewer Construction Fund will not seriously
affect the Sewer Improvement Program if the loan is repaid in five years or
less. Repayment schedules longer than 5 years could affect the sewer system
or Encina Plant improvement schedules.
Interest will be charged on any loan of funds at a rate equal to the City
portfolio's average rate of return. This should be between 6.5% and 7.5%
annually based on current rates. On a five-year repayment schedule at 7%
the City will repay $3.5 million in principal and interest for a $2.9 million
loan.
If no surplus funds are available at year end, reductions in City operations
will be necessary to accomplish repayment of this loan.
EXHIBITS :
1. Memo from Finance Director - dated 12-4-86, Hosp Grove Financing
2. Memo from City Manager - dated 12-4-86, Hosp Grove Fiscal Impact
3. Memo from Finance Director - dated 11-18-86, Hosp Grove Financing
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.' . .. . DECEMBER 4, 1986 .
TO : CITY MANAGER
FROM : Finanbe Director
HOSP GROVE FINANCING
BACKGROUND
The City Council will be placing a measure on the March ballot asking the
of Carlsbad to approve the purchase of Hosp Grove from the City's General
The proposed purchase price of the grove is as follows:
Land Purchase - $5,775,000
Compensation to Developer for past investment
in the Grove project I 702,000
Required improvements to Monroe - 300,000
Subtotal $6,777,000
voters
fund .
Debt issue costs and reserves (if debt is
used as part of financing package) - $1,000,000
Total acquisition cost $7,777,000
FINANCING CONSIDERATIONS
The following points
options available to the Council:
should be considered when evaluating the various financing
1.
2.
3.
4.
When debt or interfund loans are used to finance any project, the method
of providing revenue to guarantee the ultimate repayment of the debt
must be considered. If no income stream is provided, debt should not be
used.
If no new revenue source is provided and the General fund is expected to
support the repayment.
reduce funds available to support other city operations and future
capital projects.
This commitment of general fund revenue will
All financing options that do not create a new revenue source require
reductions in operations, deferral of projects or changes in funding
priorities.
If interfund loans are used, the fund must
a. avoid interference with the operation of the fund providing
the loan
b. be repaid in a reasonable time with interest.
(Current interest rate would be - 7.5%.)
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5. The commitment of cash to the purchase of Hosp Grove eliminates the
Council's ability to fund other needs that may arise and will affect
the City's Capital Improvement Program.
FINANCING ALTERNATIVES
The City has several financing alternatives available offering a variety of
positive and negative results. These alternatives are summarized in the
following form:
1. Certificates of Participation - The City may issue Certificates of
Participation (COP'S) for the purchase of Hosp Grove. The COP issue
would be approximately $7,700,000 requiring debt service payments of
about $730,000 per year (assuming a total interest rate of 6.9%).
Repayment of this debt issue would have to be guaranteed by a pledge
of general City revenue.
2. Combined Cash Payment and Certificate of Participation - The City may
commit cash from the General Capital Construction fund and Revenue
Sharing fund to finance a large portion of this purchase. The commit-
ment of this cash removes the Council's ability to fund other projects
during the year as needs may arise and affects the City's future
Capital Improvement Porgrams by obligating funds that would have
otherwise been available.
The proposed financing package under this alternative is as follows:
Project Costs -
Land purchase & street improvement and
investment buy out - $6,777,000
Debt issue costs and reserves - 650,000
Total Cost $7,427,000
Funds Available -
General Capital Construction Fund - $2,700,000
Revenue Sharing Fund - 480,000
Subtotal Cash Available $3,180,000
COP's Required $4,247,000
Annual debt service payments would be approximately $398,000 (assuming
a 20 year issue at 6.9%).
3. Combined Cash and COP Issue with the Defferal of Some Current Capital
Projects - The amount of cash available to finance this acquisition can
be further increased by deferring one capital project - the improvement
of Elm Avenue east of El Camino Real. This project would then compete
with other projects in the City's CIP for funding in future years. This
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this action would free about $800,000 in additional funds. Total cash
available would increase to $3.9 million.
Project Costs
Debt issue and reserves
Total Cost
Funds Available
Total COP Issue Required
- $6,777,000 - 500,000
$7,277,000
- $3,900,000
$3,377,000
Annual debt service payments would be approximately $320,000 on an issue
of this size (assuming a 20 year issue at 6.9%).
A review of the current capital project list shows that there are few
projects of any size upon which the Council has not already placed a
high priority making deferral of projects difficult
4. Cash Purchase Using General Capital Construction Fund Resources and Loans
From Other Funds - City funds may loan cash not required for current
operations or projects to other funds.
ability to finance future capital projects.
These loans will reduce the City's
Interfund loans are generally discouraged from a financial management
viewpoint due to the restrictive nature of many of the City funds and
the effects on the City's CIP.
The Sewer Construction fund has a current uncommitted balance of about
$1.7 million. Also, funds now appropriated for construction of the
expansion and improvement of the Encina Water Pollution Control Facility
will not be required for several years. This project is budgeted at
$1,380,000.
made available for loan to the General Capital Construction fund.
By deferring this project a total of $3,080,000 could be
Hosp Grove funding could be accomplished as follows:
Total Project Costs (no debt service) - $6,777,000
Total General Capital Construction Funds
Available (with deferral of one
capital project) - $3,900,000
Total loan needed from Sewer ConstructionFund - $2,877,000
The repayment terms for such a loan mustbe left flexible to allow the
Council to pay back amounts due as often and in as large an amount as
possible each year.
If Council selects this alternative, repayment terms based on the
General Fund paying back as much as possible each year from the year
end surplus (if any) rather than a fixed payment schedule that must
be established rather than appropriating funds from operations at the
beginning of each year.
The Council should plan to repay the interfund loan within the next
five years to avoid any conflict with the proposed schedule for
improvement of the Encina Plant.
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Another source of funds available to the Council is the Redevelopment
Agency. The agency presently owes the City $3.5 million. This loan
could be repaid in a lump sum by authorizing the agency to issue tax
increment bonds. Another option would be to have the agency repay a
portion of the debt ($200,000 to $300,000 per year) from tax increment
funds rather than issuing bonds. Both of these alternatives reduce the
agency's ability to finance projects within the redevelopment area.
RE COMMEND AT I ON S
It is staff's position that any use of debt or interfund loans to finance this
project should be accompanied by the creation of a source of revenue to pay
debt service costs.
Staff has assumed that 1) the City will not use a General Obligation Bond
issue to finance this project, and 2) no new taxes or tax increases will be
used to repay any loans or debt.
Therefore, the staff recommends that the Council adopt alternative number 4 -
Funding the acquisition of Hosp Grove from a combination of General Capital
Construction and Revenue Sharing fund cash with loans from the Sewer Construction
fund .
The loan repayment schedule must be set to allow the General Fund to commit any
year end surplus to the repayment of the loan rather than committing current
operating revneue.
If no surplus is generated in 1986-87, Council should direct staff to reduce
general operations to a level that will create a year end surplus in the
following years. Repayment must be accomplished in a period of approximately
five years- to avoid any conflict with any projects requiring funding from
the Sewer Constuction fund.
Council should consider the issue of COP'S only if it is willing to consider
specific reductions in the City general operations or the creation of a
revenue source to pay debt service costs.
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HOSP GROVE FINANCING
ADDITIONAL INFORMATION
OPTION 81
Total cost to City -- Approximately $14.6 over 20 years
OPTION #2
Total Cash
Total Debt Cost $ 3,180,000
7,960,000
$11,140,000
Total Cost $11.1 million over 20 years
OPTION 63
Total Cash
Total Debt Cost
$ 3,900,000
6,400,000
$10,300,000
Total Cost $10.3 million over 20 years
OPTION 84
Cash $6,777,000
Total cost Cash to City $6,777,000
Total Cost to General fund over 5 years @ 7.5% = $7,455,000
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December 4, 1986
TO: CITY COUNCIL
FROM : City Manager
HOSP GROVE FISCAL IMPACT
There are a variety of financing options which may be considered by Council at a later date. These options include:
0 allocating unappropriated fund balances
0 deferring capital projects
0 borrowing from outside sources
0 loan from sewer fund or other city funds
0 raising city taxes on developer fees
0 seeking state grants or donations
It is clear that there is no way to finance this major purchase without affecting some other city program - unless we increase taxes/revenues.
At the December 2 Council meeting, the decision was to put the HOSP GROVE issue on the ballot March 3. No decision was made on the exact method of financing the purchase. The proposed ballot proposition reads as follows:
Do the voters of the City of Carlsbad approve spending approximately $7 million for the acquisition of 52.68 acres of undeveloped land known as Hosp Grove, the purchase to be financed with debt requiring payments from
the general fund of approximately $650,000 per year.
I would prefer that the proposition be silent about how the purchase be financed and that Council keep its options open. The City Attorney has indicated that the wording of the ballot is advisory only and Council need not issue debt in the future if the measure passes. The Council needs to be clear on that issue.
Attached is a memo from the Director of Finance giving details
of various financing options.
At this time I would recommend we fund the purchase out of existing City funds supplemented by internal loans. This would avoid bond financing costs of $300,000 and bond reserve needs of $700,000. However, the Council needs time to consider all options before making a final decision.
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City Council '
December 4, 1986
HOSP GROVE FISCAL IMPACT
Page 2
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If the voters okay the purchase March 3, the Council can decide how to pay for the purchase at that time.
The purchase price negotiated by Council Committee is $6.4 million
($700,000 more than the price on the November 4 ballot).
If Hosp Grove becomes city property, the city will have to widen Monroe Street and fix the drainage. No detailed engineering has been done on that but estimates range from $300,000 to $540,000.
If Hosp Grove is - not developed, the sewer fund will reclaim 540 sewer permits valued at $1,000 each.
If Hosp Grove becomes a city park we will need added funds for development and maintenance. Maintenance cost of trees in existing condition is estimated at $65,000 yearly.
If the entire project is financed by certificates of participation it requires a bond issue of $7.5 to $8 million and an annual debt retirement cost of $750,000 for 19 years or a total cost of about $14 million.
For comparison: cost Million
Police/Fire Building $6.6 Stagecoach Park Construction 4.0
Macario Canyon 288 acres 2.07
Safety Center land 26 acres 2.0
The 1987-88 operating budget will be tight because:
Revenues will go up $600,000 Expenses will go up $900,000
This does not include Hosp Grove. If any debt repayment is charged to general fund, it will mean the Council will have to make cuts in current programs or increase general fund revenues.
At t achmen t s
1 - Director of Finance Report 12/4/86 2 - Fund Balance 6/30/86
3 - Rauscher Pierce Refsnes, Inc. Report 11/25/86
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NOVEMBER 18, 1986
TO : ASSISTANT CITY MANAGER - PATCHETT
ASSISTANT CITY MANAGER - MA"EN
FROM : Finance Director
HOSP GROVE FINANCING
The attached list summarizes in very brief form the various alternatives
available to the City to fund Hosp Grove. Generally, they fall into categories
by difficulty and time required to accomplish the financing. Below are a few
of the most reasonable ideas:
SHORT-TERM SOLUTIONS
To qualify as a short-term solution the alternative must not require a
vote of the electorate and must be relatively simple. If bonds are
included, they must be easy to issue in a very short period of time.
The only type of debt that falls into this category is certificates of
participation. Some key candidates for short term solutions are:
1. Cash-Out-of'Pocket acquisiton of Hosp Grove--This requires Council
action and the deferral of other capital projects to accomplish.
Also, any conflict with Proposition H would have to be resolved
prior to such acquisition. Loans between restricted funds would be
required with some determination of how such loans would be repaid.
No revenue source is readily available for the repayment of these
loans. &a/ 72 Street Lighting and Parks Maintenance Act--The 72 Act allows for
the improvement and maintenance of lighting systems and parks.
There is a possibility that the provisions for this Act could be
expanded to include land acquisition. Bond Council has indicated
that this alternative is based on finding appropriate solutions to
the following:
A. Benefit Area - who is to be inlcuded
B. How the benefit is to be spread
C. Overcoming any public protest or challenge from the public
D. Find some interpretation of the 72 Act that would imply
that land acquisition is an includable cost.
MID-TERM SOLUTIONS
Mid-term solutions include. those that do not require voter approval, but
may be considerably more complex to administer or accomplish.
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The only funding alternative in this category is the salellease back of
the Safety Center (if there is no attempt to raise any additional revenue
to fund debt service payments). The alternative is based on the concept
of selling the Safety Center to a third party, who then issues certificates
of participation.
purchase the facility from the City. The City then leases the Safety Center
over a 20-year period and ultimately regains ownership. The income stream
used to repay the debt would be the General Fund revenues.
The proceeds of the certificate issue are used to
This option could require the reduction or elimination of some municipal
services to meet debt service payments if no alternative source of revenue
is created. However, the creation of alternative sources based on tax
increases would require a majority vote of the electorate, thereby making
this option much more lengthy.
LONG-TERM SOLUTIONS
The issue of voter approved debt is the most time consuming option. It
also provides some of the best answers to financing projects of this type due to its ability to match debt payments to new income sources. Most of
these processes would take six months to get to the point of bond sale.
1. General Obligation Bonds--This method was tried and failed to win
support of the necessary 213 of the voters.
the City to issue bonds and set tax rates to create revenue to repay
the debt.
This type of bond allows
2. Mello-Roos District Bonds--The Mello-Roos District requires a 213
vote just like the General Obligation Bond. The Mello-Roos District
is authorized to set fees based on benefit to create enough revenue
to repay the debt.
when they reach the size of the one necessary to purchase Hosp Grove.
These districts are very complex to administer
3. 1915 Act Assessments--This option is similar to the Mello-Roos in
that a benefit assessment is used to create revenue to offset debt
service payments. Large 1915 Act bond issues are very complex and
costly to administer.
a hearing process allowing for appeals and protests can be lengthy.
The creation of an equitable benefit spread is at the heart of both
the 1915 Act and Mello-Roos District issues.
No vote of the electorate is required, however
4. General Tax Increases--Increases in the transient occupancy tax (TOT)
and business license tax could be used to create sufficient revenue to
support a bond issue of the size needed to purchase Hosp Grove.
increase in the TOT from 6% to 9% would provide about $600,000 per
year in additional revenue.
difficult to evaluate, but $50,000 to $100,000 could be raised through
a 25% increase in fees and about $225,000 would result from a 50%
increase in license taxes. Both of these actions would require voter
approval (50% under the rules set by Prop 62).
An
A business license tax-increase is more
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There are many solutions, not all of which are easy to implement. Should the
Council wish to look at the short-term solutions first, they can eliminate the
concept of cash loans to the General Fund unless they are willing to defer
capital projects and possibly restrict operations until a new revenue source
can be identified.
If the 72 Act district alternative proves to be favorable, it would be the
most attractive option.
with the capability to issue certificates of participation. No vote is
required.
All options requiring a vote of the electorate are six months to one year
This process merges the Council's ability to get fees
unacceptable delay considering the present
attachments
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.. CITY OF CARLSBAD
FINANCING ALTERNATIVES
HOSP GROVE
PROBLEM:
issuance of debt for the purchase of 52 acres in north west Carlsbad known as
Hosp Grove.
To provide approximately $6 million from existing funds or the
ALTERNATIVES
1.
2.
6.
7.
8.
9.
IO.
1.
Purchase from existing cash balances
Me1 lo-Roos District
General Obligation bonds
Street Lighting and Parks Maintenance District (COP'S)
Community Rehabilitation District
Sale/lease back - Safety Center (COP'S)
General tax increase (under Prop. 62) (COP'S)
Lease revenue pledge to debt service (COP'S)
Combination debt and existing cash
1915 Act Assessment District
PURCHASE FROM EXISTING CASH BALANCES
Requirements
- Identify funds with cash balances that are not currently obligated or
legally restricted. Identify any capital projects that can be deferred to later years or
eliminated from the CIP. Authorize loan of unobligated funds to one central fund for the purchase
of Hosp Grove, and establish interest rates and pay-back period for such
loans.
-
-
Advantages
- Does not require sale of bonds, underwriting costs, legal costs, long
term debt administration costs. - Provides a quick source of funds. - City controls pay back period. - City controls interest rate. - Does not require vote (if Council finds that this project is not subject
to Proposition H).
Disadvantages
- Possible conflict with restrictions on special funds. - Deferral of some capital projects. - No secure revenue source available for pay back of debt. - Possible reduction or elimination of some general fund services. - Possible conflict with Proposition H.
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2. FORM A CITY WIDE MELLO-ROOS DISTRICT AND ISSUE BONDS
Requirements (general process described in Attachment #I)
- Council or 10% of registered voters may start process. - Boundaries must be set. - Nature of benefits must be set. - Notice and public hearings. - 213 vote of those casting ballots required for passage. - Annual assessment spread based on benefit.
Advantages
- Provides guaranteed income stream for bond repayment. - Allows flat rate assessments (fixed cost per unit). - Benefit assessments can be made easy for voter to understand. - Low interest rates on all types of debt financing.
Disadvantages
- 213 vote for district formation. - Carries usual debt issue costs. - Administration of assessments after first year is complex on large
- Level of benefit is difficult to set for Hosp Grove.
districts. .
3. GENERAL OBLIGATION BONDS
Requirements
- Identify project. - Voter approval, 213 majority.
Advantages
- ' Simple most direct type of debt financing. - Easy to administer. - Well received by bond market. - Few restrictions on use of funds. - Guaranteed income stream for tax assessments.
D i sad vant age s
- 213 vote for approval. - Defeated in November election. - Some debt issue costs. - Long lead time required to get issue before voters.
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!. . 4. STREET LIGHTING AND PARK MAINTENANCE DISTRICT
(Expand existing lighting district to allow land ,acquisition of park
property, then issue certificates of participation.)
Requirements
- Public notice of intent. - Public hearing to modify existing street lighting district including
- Creation of benefit spread model. - Annual hearings on assessments. - Issue certificates of participation supported by district assessments.
notice to all affected parcels or formation of new district.
Advantages
-
- Does not require voter approval.
Creates guaranteed income stream to support certificates of
participation.
Disadvantages
- Not ice requirement. - Possible confrontation over changes in existing district. -
- Possible conflict with Proposition H.
Street lighting act not designed for acquisition of property (legal
problem).
5. COMMUNITY REHABILITATION DISTRICT BONDS - SENIOR OBLIGATION BNDS
Requirements
- Project must be related to the reconstruction, improvement and/or
rehabilitation of existing City-owned property. (Purchase of new
property to expand existing facilities 9 qualify.)
Payments for debt service must come from existing revenue sources
(general fund).
act ion.
Simple majority vote for approval of bond issue.
-
No new taxes or fees are approved as part of this
-
Advantages
- - Requires only 50% + 1 vote for approval.
Bonds should be easy to sell because of City general fund guarantee of
payment.
Disadvantages
- - Creates no new funding streams for debt service payments. -
- Possible conflict with Proposition H.
New legislation - few examples of how funding works.
May require reduction or elimination of some general fund services to
meet debt service payments.
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6. SALElLEASE BACK OF SAFETY CENTER AND ISSUE OF CERTIFICATES OF
PARTICIPATION
(See attachment #2 for more detailed discussion.)
Requirements
- Form a non-profit corp (or find qualified third party) for purposes of
- Issue COPS backed by lease/purchase of Safety Center.
purchasing the Safety Center from the City.
Advantages
-
- Certificates of participation are easily marketed. - - No vote required. -
Provides unrestricted cash in amounts up to $10,000,000 for purchase of
property or improvements.
Safety Center backing certificates will produce a high quality issue.
Also provides funding for Senior Citizen Center.
Disadvantages
- - Ballot measure for construction of Safety Center indicated no debt
- May require reduction or elimination of some general fund services to
Does not create any new revenue source for repayment of debt.
financing would be used in the construction of the building.
support debt payments.
7. REVENUE SOURCE FOR SUPPORT OF DEBT ISSUES - GENERAL TAX INCREASES UNDER
PROPOSITION 62
Requirements
- Must be a general tax, not a special tax (not specifically dedicated to
- a purpose).
Simple majority vote required under Proposition 62.
A. Transient occupancy tax increase from 6% to 9% would raise about
$600,000 per year.
Adv a n t ages
- Places tax burden on non-residents. -
-
Provides relatively stable revenue source for support of debt
service payments.
Requires only 50% + 1 vote for approval.
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.. Disadvantages
- Places Carlsbad's TOT rate at second highest in County.
Present distribution - 6% - 8 cities
7% - 2 cities
8% - 8 cities and counties
10% - 1 city - Revenue source subject to variations due to economy. - Revenue cannot be specifically reserved for debt service. - Any debt service paid from general fund may have possible
conflicts with Proposition H.
6. Business license taxes - increase rates by 10% to 25%.
Advantages
-
-
-
City business license fees are presently at or below similar
cities.
Fees could be increased by various rates on various types of
businesses to spread the burden.
Requires only 50% + 1 vote for approval.
Disadvantages
- Imposes a tax on local business. - Open to challenge by specific business classes who-feel unfairly
treated. - Produces only $50,000 to $125,000 annually for a 10%to 25% rate
increase. Any debt service paid from the general fund may have possible
conflict with Proposition H.
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8. LEASE REVENUE - PLEDGE TO DEBT SERVICE
(Based on lease of City property at Palomar Airport Road and Carlsbad
Boulevard and any other possible sites that provide opportunities for
development.)
Requirements
- Identify parcels available for possible lease. - Identify possible lessees. -
-
Establish terms and conditions of lease, lease rates and receive Council
approval.
Issue certificates of participation based on increased revenue to the
general fund.
Advantages
- If lessee builds substantial improvements on leased land, the City will
have a secure revenue stream for the life of the lease. - Lease revenues from 2 to 3 major parcels could produce funds to support
$6 million bond sale under the Community Rehabilitation District Act or
certificates of participation secured by general revenues.
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Disadvantages
- - Length of time required to put together sufficient leases.
Possible conflict with Proposition 14.
9. COMBINATION CASH AND DE61
(Use $3,000,000 in existing park-in-lieu funds to pay for 1/2 and
$3,000,000 debt for other 1/2.)
Requirements
- Redraw park-in-lieu district boundaries to reduce City to two districts,
north and south, divided by Palomar Airport Road.
Increase transient occupancy tax from 6% to 9% by vote of electorate
(50% required for approval).
Issue $3,000,000 certificates of participation supported by general fund
revenues. Use $3,000,000 park-in-lieu funds dedicated to purchase park land in CIP
for 1/2 cost.
-
-
-
Advantages
- Provides assured funding for park through joint use of cash and debt. - Provides high quality cop's due to City general fund guarantee of
payments. - Allows $3,000,000 remaining debt, not pledged to park, to be used to
fund Senior Citizen's Center. - Increased tax burden placed on non-City residents.
0 i sadvan t ages
- - -
Requires approval of voters for tax increase.
Difficulty in redrawing park boundaries.,
Possible conflict with Proposition H.
IO. 1915 ACT ASSESSMENT DISTRICTS
Requirements
- Identify project. - - Provide notice to benefit area. - Hold public hearings. -
Identify area of benefit and method for benefit assessment.
Annual assessment placed on tax bills.
Advantages
- No voter approval required. - Provides revenue stream to support debt service payments.
Disadvantages
- Administration of large district is costly and complex. - Benefit is difficult to fairly distribute to parcels.
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HOSP GROVE OPEN SPACE
DEVELOPING AREA OF HOSP GROVE MASTER PLAN ~---
PROP PURCHASE COMMERCIAL ALTERNATIVE
10 Acres 10 Acres
50 Acres 9 Acres
ALREADY DEDICATED PARKLAND
TO BE PURCHASED
TO BE DEDICATED AS PARKLAND
OPEN SPACE EASEMENT
TO BE DEVELOPED
0 Acres
0 Acres
0 Acres
3.67 Acres
20.33 Acres
17 Acres
TOTAL UNDEVELOPED AREA 60 Acres 43 Acres
DEVELOPED AREA OF HOSP GROVE MASTER PLAN ---
DEDICATED PARKLAND
OPEN SPACE EASEMENT
14 Acres
4.69 Acres
TOTAL UNDEVELOPED AREA
TOTAL BOTH AREAS 60 Acres
18.69 Acres
78.69 Acres
18.69 Acres
43 Acres
18.69 Acres
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61.69 Acres