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HomeMy WebLinkAbout1989-08-22; City Council; 10229; Tax Rates Library & Sewer General Obligation BondsCIT',�-7F CARLSBAD — AGEND ;BILL 4 TITLE: ESTABLISHING THE TAX RATES FOR MTG. 8/22/� FISCAL YEAR 1989-90 FOR LIBRARY FIN AND SEWER GENERAL OBLIGATION BONDS DEPT. z O v a J v z v RECOMMENDED ACTION: 1fl8 DEPT. HD. CITY ATT CITY MGR. ik-- Adopt Resolution No. 89-312, fixing the amount of revenue to be received from taxes, and No. 89-313, setting the general obligation tax rate for 1989-90. ITEM EXPLANATION: The City, is required to set annually the amount of the revenue and tax rates necessary to meet the general obligation bond debt service requirements for the Sewer and Library Bonds. These tax rates must be submitted to the County Assessor by no later than September 1, 1989, to be effective for the 1989-90 fiscal year. The following general obligation bond issues are currently outstanding: Issue Final Payment Original Principal Current Outstanding Effective Interest 1989-90 Debt Service Date Term Due Purpose Amount Principal Rate (appr) Required 1965 27 yrs. 1991 Sewer (Ser. B) $1,000,000 $ 280,000 3.6% $ 98,460 1966 26 yrs. 1991 Sewer (Sers C) 447,000 75,000 3.7Z 27,344 $1,447,000 $ 355,000 $125,804 1968 25 yrs. 1992 Library $ 295,000 $ 65,000 4.5% $ 22,924 Debt service requirements for Sewer Bonds ($125,804) and Library Bonds ($22,924) can be met by establishing tax rails of 0.00293% for Sewer Bonds and 0.00046% for Library Bonds. The compl+tation of these rates are shown on Exhibits A and B. Tax rates for City Debt Service payments have declined by 41% during the past five years from 0.00570% to 0.00339%. TAX RATES LIBRARY BOND SEWER BOND TOTAL TAX RATE TAX RATE TAX RATE % CHANGE 1985-86 .00069% .00501% .00570% ( 0.2)% 1986-87 .00069% .00393% .00462% (18.9)% 1987-88 .00047% .00318% .00365% (21.0)% 1988-89 .00041% .00316% .00357% ( 2.2)% 1989-90 .00046% .00293% .00339% ( 5.0)% The tax rate of 0.00339% is equal to a tax of $3.39 on each $100,000 of assessed value. Page 2 of AB # 10,229 FISCAL IMPACT: The City is required to set tax rates for the repayment of General Obl-igation Bonds. The revenue raised by those tax rates is restricted to the repayment of this debt. No other use is allowed. The proposed tax rates will provide a total of $148,728 for the payment of 1989-90 debt service costs. EXHIBITS: 1.j/ Resolution No. 89-312, fixing the amount of revenue required from property taxes. 2. y. Resolution No. 89-313, setting the 1989-90 tax rates for the Library and Sewer Bonds. 3., Exhibit A - Sewer Bond tax rate computations. 4. Exhibit B - Library Bond tax rate computations. 9 F ti 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 89-312 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, FIXING THE AMOUNT OF REVENUE FROM PROPERTY TAXES NECESSARY TO PAY THE BONDED INDEBTEDNESS OF THE "1962 SEWER BONDS, SERIES B AND C," AND "1966 LIBRARY BONDS" FOR FISCAL YEt�R 1989-90 WHEREAS, the City Council of the City of Carlsbad annually fixes the amount of revenue required from property taxes to fund the City debt service funds; and WHEREAS, the annual revenue requirements within each bond fund are dependent upon the beginning balance of each fund and the Debt Service payment schedule for each bond issue; and WHEREAS, revenue of approximately $98,969 will be necessary to fund the Sewer Bond requirements for the 1989-90 fiscal year; and WHEREAS, revenue of approximately $22,289 will be necessary to fund the Library Bond requirements for the 1989-90 fiscal year; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows: Section 1: The City Council of the City of Carlsbad, pursuant to Section 51508 of the Government Code of the State of California, does hereby fix the amount of revenue from property taxes necessary to pay the bonded indebtedness of the "City of Carlsbad, 1962 Sewer Bonds, Series B and C" for the fiscal year commencing July 1, 1989, and ending June 30, 1990, to be in the amount of $98,969. Section 2:. The City Council of the City of Carlsbad, pursuant to Section 51508 of the Government code of the State of California, does hereby fix the amount of revenue from property taxes necessary to pay the bonded indebtedness of the "City of Carlsbad, 1966 Library Bonds" for the fiscal year commencing July 1, 1989, and ending June 30, 1990, to be in 1 2 3 4 5 6 7 8 9 10 11 12' 13 14 15 16 17 18 19 20_ 21 22 23 24 25 26 27 28 the amount of $22,289. Section 3: That the total amount of revenue from property taxes necessary for all purposes pursuant to Section 51508 of the Government Code of the State of California, and of Sections 1 and 2 above is $121,258. Section 4: The City Clerk shall certify to the passage of this resolution and cause the same to be published, as required by Section 36936.1 of the Government Code, once within fifteen (15) days of its passage in a newspaper of general circulation. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 22nd day of AMI st 1989, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Larson, Mamaux & Pettine NOES: None ABSENT: None ATTEST: ALETNA L. RA TENKRANZ, City C erk I 1 2 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19j 20 21 22 23 24 25 2611 27 28 RESOLUTION NO. 89-313 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, SETTING THE TAX RATE FOR THE 1989-90 FISCAL YEAR WHEREAS, the City Council of the City of Carlsbad annually fixes the property tax rates for the City debt service funds, and WHEREAS, the 1966 Library Bond fund shall require a tax rate of 0.00046% for fiscal year 1989-90 for debt payments, and WHEREAS, the 1962 Sewer Bond fund shall require a tax rate of 0.00293% for fiscal year 1989-90 for debt payments, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, as follows: Section 1: For the fiscal year 1989-90, commencing July 1, 1989, there is hereby assessed, levied, and ordered collected upon the full assessed value of taxable property within general tax District No. 1, (County Fund Number 6010-50) which consists of all taxable property within the City of Carlsbad except the taxable property in general District No. 2 as described below, taxes in the following listed amounts and for the following listed purposes: FUND RATE Library Bond Interest and Redemption 0.00046% Sewer Bond Interest and Redemption 0.00293% Total Tax Rate, General Tax District No. 1 0,00339% The total tax rate for Ceneral tax District No. 1 shall be the amount of 0.00339% levied against full assessed valuation on all taxable property in said district. -Section 2: For the fiscal year 1989-90, commencing July 1, 1989, there is hereby assessed, levied, and ordered collected upon the full assessed value of taxable property within general tax District No. 2 t 3 s 4 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (County Fund Number 6010-511), being the La Costa annexation as described in Ordinance. No. 1173 of the City of Carlsbad, taxes in the following listed amounts and for the following listed purposes: FUND RATE Library Bond Interest and Redemption 0.00046% Total Tax Rate, General Tax District No. 2 0.00046% The total tax rate for general tax District No. 2 shall be in the amount O-00046y levied against full assessed valuation on all taxable property in said district. Section 3: This resolution is a resolution fixing the rates of taxes to be levied in the City of Carlsbad for the fiscal year 1989-90 pursuant to the provisions of Section 51511 of the Government Code of the State of California and for providing the County Auditor, as required by said section annually before September 1, 1989, the rates of taxes to be adopted. s� I 1 2 3 4 5 6I 7 8 9'' 101 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 t— A Section 4: The City Clerk shall certify to the passage of this resolution and cause the same to be published, as required by Section 36936.1 of the Government Code, once within fifteen (15) days of its passage in a newspaper of general circulation, and shall furnish two certified copies of this resolution to the County Auditor of the County of San Diego pursuant to Government Code Section 51511. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 22nd day of August , 1989, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Larson, Mamaux & P ne NOES: None ABSENT: None ATTEST: AA ALETHA L. RAUTENKR NZ, City Clerk WHAMCHMEME City of Carlsbad DEBT SERVICE REQUIREMENTS 1989-90 SEWER GENERAL OBLIGATION BONDS TAXABLE PROPERTY VALUE Secured Property (County Assessed14 Secured Property (State Assessed) Total Secured Property Unsecured Property Total Taxable Property DEBT SERVICE REQUIREMENTS Sewer Bonds Principal Interest Total Payments Due EXHIBIT A ;Values in million dollars) 1989-90 1988-89 % Chanqe $ 3,370 $ 2,753 22% 10 398 -97% $ 3,380 $ 3,151 7% 153 107 43% L==3=533 5==3,258 8% (Value in dollars) 1989-90 1988-89 % Chanqe $115,000 $115,000 -0- 10,804 14.956 -28% UMAH 51292956 - 3% Funds Available for Debt Service: Tax Revenge from Unsecured Property Interest Earnings $ 4,835 2,000 $ 3,403 42% 2,000 Amount Provided from Reserves 20,000 -0- 25,000 20% Net Tax Revenue Required 1=98 969 S 99 553 - 1% TAX RATE CALCULATION Tax Rate = Net Tax_Revenue Required Total Secured Assessed Valuation = 198,969 $3.380 billion = .00293%3 FISCAL IMPACT 1989-90 Beginning Fund Balance $ 95,090 Add: Revenue from Taxes: Secured 98,969 Unsecured 4,835 Interest 2,00 0 Less: Debt Service Payments 125 80 Ending Fund Balance 752090 1 Utilities have been deleted from state -assessed property per legislation. 2 Unsecured property for 1989-90 is taxed at the 1988-89 tax rate. 3 A tax rate of 0.00293% is equal to $2.93 per year assessed value. on each $100,000 of 4 Adjusted for the impact of Redevelopment. lo 0 City of Carlsbad DEBT SERVICE REQUIREMENTS 1989-90 LIBRARY GENERAL OBLIGATION BONDS TAXABLE_ PROPERTY VALUE Secured Property (County Assessed�4 Secured Property (State Assessed) Total Secured Property Unsecured Property Total Taxable Property DEBT.SERVICE REOUIREMENTS Sewer Bonds Principal Interest Total Payments Due Funds Available for Debt Service: Tax Revenue from Unsecured Property Net Tax Revenue Required EXHIBIT B (Values in million dollars) 1989-90 1988-89 % Change $ 4,812 $ 4,083 18% 10 398 -97% $ 4,822 $ 4,481 8% 155 110 41% 5__4I797 1__41591 8% (Value in dollars) 1989-90 1988-89 % Change $ 20,000 $ 15,000 33% 2,924 3,600 -19% 5_222924 5_1LM 23% 635 517 23% $_22=289 1_18:083 23% TAX RATE CALCULATION ax Rate = Net Tax Revenue Required Total Secured Assessed Valuation = $22,289 $4.822 billion = .000467.3 FISCAL IMPACT 1989-90 Beginning Fund Balance $ 11,050 Add: Revenue from Taxes: Secured 22,289 Unsecured 635 Less: Debt Service Payments (22,924) Ending Fund Balance 5_112050 1 Utilities have been deleted from state -assessed property per legislation. 2 Unsecured property for 1989-90 is taxed at the 1988-89 tax rate. 3 A tax rate of 0.00046% is equal to $.46 per year on each $100,000 of assessed value. 4 Adjusted for the impact of Redevelopment.