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Home My WebLink About1987-06-16; City Council; 9034-1; GENERAL OBLIGATION BOND TASK FORCE REPORTCARLSBAD - AGENCQBILL 0) l-l Wcfla) CoPQ co td60•H 01(3tl)O Otocfl O l~-(3 00 0) C ••H (-1 0 <U M ,g01 3 4-1 Ol 01 > •H 41 O CO O COI n)4-1 01 MOM-l CO Ol 4-1 C <u 0) CO AR* 7o*y-^/ MTfi 6/16/87 DEPT FIN TITLE: GENERAL OBLIGATION BOND TASK FORCE REPORT <^DFPT. HDSfcx CITYAmr'/^' CITY MGR§S^ Og oZ=3 Oo RECOMMENDED ACTION: Council should discuss the question of placing a General Obligation Bond issue before the voters in November 1987 and, if necessary, direct staff to return with documents calling the election. ITEM EXPLANATION: At the meeting of June 2, 1987, the City Council discussed the question of placing a General Obligation Bond issue before the voters at the November 3, 1987 statewide election. This bond issue would fund a variety of capital projects including the acquisition of Hosp Grove and the construction of several major capital improvements. At this meeting the Council indicated a divergence of opinion on the question of moving forward with a bond issue at this time. The Mayor agreed to take the Council's feelings back to the informal advisory group working on this issue for discussion. The Mayor met with the task force on June 5, 1987. The general feeling of the task force is that, although several alternatives exist, the placement of a ballot measure funding Hosp Grove only would be ill advised and not supported by the group in general. There was interest in moving forward with the other quality-of-life projects in the future, but not necessarily at the November election. The Mayor will report further on this matter at the June 16 Council meeting. FISCAL IMPACT; Calling an election for November 3, 1987 will cost the City about $40,000. This amount has been included in the 87-88 operating budget. The City Council will be asked to call for the election regardless of the G.O. Bond issue question due to the need to confirm the increase in the License Tax on New Construction, implemented by the City during 1986-87. It is necessary to settle the question of the G.O. Bond issue as soon as possible in order to meet various legal deadlines for calling the election. The decision on the financing process for the Grove will also affect the issuance of short-term debt scheduled for July 15, 1987, and the timing of the issuance of long-term debt at a later date. EXHIBITS; 1. AB No. 9034, dated 6/2/87 - Mayor's General Obligation Bond Committee Proposed Projects. .X* a) oo CO t-l 4-1 01 cu "a0 CU 3 >O O •H 3 4J 4-1 OCU HV-i T—Icd rtn) <uft CU 4-1 (-1a aft o CU t-l CU CO O CO . 4-1 -i-l CU >4-1 13 O11 | p* ii nj o O co ft• coTJ O o 4-1 Oa mcu nj oM•H cu cu T3 CJ COnj nj co ft o AB# MTG. DEPT. 9^2 Cr ^OF CARLSBAD — AGENC ^ILL \i, , „ j V 6/9/87 FIN TITLE:MAYOR'S GENERAL OBLIGATION BOND COMMITTEE - PROPOSED PROJECTS DEPT. HoS CITY ATT\Q_ L2->s ffff- — CITY MGR^y O 3 4-1 ft COCcu CO CU CUC 6 -CO -H 4J U 4J >i 0) O CO•> -H Ci-l H O•H ft -i-lO O 4-1a n o3 ft CU O ft r-Ho nj cu COI zoI_J oz3 Oo RECOMMENDED ACTION: Council should discuss the concept of placing a General Obligation Bond issue before the voters in November 1987, and provide direction to staff. ITEM EXPLANATION; During the past six weeks the Mayor has held several meetings with an advisory committee of Carlsbad residents representing a cross section of the local population to discuss the possibility of placing a General Obligation Bond issue before the voters at the November 5, 1987 election. This bond issue would include a variety of projects aimed at improving the quality of life for current residents of all of Carlsbad. Although many projects were discussed during these meetings, only those representing improvements serving current residents were included on the final list of projects. The list of proposed projects is shown below: -Acquisition of Hosp Grove -Sidewalk along Carlsbad Blvd above Seawall Project -Pedestrian Overcrossings over Rancho Santa Fe to Stage Coach Park -Macario Canyon Sports Complex and Community Center -Municipal Golf Course Construction -Swim Complex -Beach Parking -Outdoor Amphitheatre Total Tentative Projects $6.7 million 0.5 0.4 5.0 5.0 2.9 2.0 $23.4 million If Council wishes to proceed with a General Obligation Bond issue, Council should direct staff to prepare necessary documents. The last day to file election documents with the County for the November election is September 1, 1987. The attached exhibits describe the proposed projects in more detail. Staff will be available at the Council meeting to provide additional information. Constructing some of the proposed improvements using the 1972 Street Lighting Assessment District may be possible, but according to the City Attorney and outside legal counsel projects would have to be evaluated on a case-by- case basis. Even though the statutes may be stretched to allow inclusion of projects like these, Council may find that the problems associated with attempting to fund this program from this source make the 72 Act unfeasible. PAGE 2 of AB # FISCAL IMPACT; The assessed value of the City of Carlsbad is approximately $4.3 billion. If the City issues a $20 million General Obligation Bond the annual debt service would be about $2.1 million on a 20 year bond or $1.8 million on a 30 year bond in today's market. The table below shows the estimated tax rate and the effect on various properties based on their assessed value (AV) : 20 Year Bond 30 Year Bond TAX RATE 0.052% 0.046% Approximate Cost Per Year Property Value 20 Year Bond 30 Year Bond $ 25,000 AV $ 13 $ 11 50,000 AV 26 23 100,000 AV 52 46 $1,000,000 AV $522 $455 The tax rate indicated above would be levied against all property within the City including commerical, industrial, public utilities, homes and vacant property. The operating cost associated with these projects may be as much as $1.7 million annually. Operating revenue from the golf course operation, if successful, may offset $1.3 to $1.6 million. However, this revenue estimate should be considered as optimistic. EXHIBITS: 1. Project Descriptions - projects discussed by G.O. Bond Committee 2. List of participants in G.O. Bond Committee. 3. Outline of the 1972 Street Lighting and Landscape Maintenance District Act.