HomeMy WebLinkAbout1992-07-28; City Council; 11818; Alga Rd AD 88-01 Disposition Of Surplus FundsCITY OF CARLSBAD - AGENM BILL
-ISPOSITION OF SURPLUS CONSTRUCTION FUNDS
m (PROJECT NO. 3305)
FOR ALGA ROAD ASSESSMENT DISTRICT 88-1
Adopt Resolution No. W-a?/ determinin g the amount of surplus construction funds for Alga Road Assessment District 88-1 and author-king application of surplus funds for bond
call and property owner assessments.
I ITEM EXFXANATION:
On July 10,1990, the Alga Road Assessment District was confirmed at a public hearing and
in September, 1990, limited obligation improvement bonds totaling $19.6 million were
issued. Funds totaling $15.9 million were placed in the improvement fund for construction
of road improvements on Alga Road and Poinsettia Lane. The majority of construction
funds were expended to reimburse Aviara for design, engineering, grading and other street
improvements made prior to the sale of the bonds.
Phase 2, the City’s portion of the project, consisted of final construction, paving and
preparation for vehicular traffic. The Notice of Completion for Phase 2 was certified by the
City Engineer on June 14, 1991 and approved by Council on July 9, 1991. A total of
$690,000 is segregated in a separate project account for future installation of traffic signals.
The signals will be not be constructed until home construction and traffic warrants. In
addition, $125,000 will be retained to modify street intersection landscaped medians to
improve traffic visibility.
Staff has determined that a surplus of approximately $1.1 million remains in the bond
improvement fund. The surplus funds are due to lower than anticipated construction and
cost of issuance costs, interest earnings on bond funds prior to the Notice of Completion,
and elimination of one traffic signal.
Consistent with state assessment law, assessments paid in cash will receive a proportionate
refund of the surplus construction funds. In accordance with Council Policy 33, staff
recommends that $978,000 of the surplus be applied to the 1992-93 property owner
assessments. Council Policy 33 allows surplus bond funds to be credited to assessments in
an amount equal to 5% of the bond issue, with a cap at $1 million. Staff further
recommends that any remaining surplus be used to call bonds.
I FISCAL IMPACX
The project accounting shown in Exhibit 1 reflects a surplus of approximately $1.1 million,
with $815,000 retained from the Alga Road Assessment District bond funds for future traffic
signals and median modifications. Surplus funds credited to assessments will reduce
property owners’ 1992-93 obligation for the Alga Road Assessment District debt service by
$978,000. Any remaining surplus will be used to call bonds which will further reduce
property owner assessment obligation in future years.
I EXHIBlTS:
I 1. Schedule of Alga Road Assessment District project costs and surplus funds.
2. Resolution No. Qk--ILY I determinin g Alga Road Assessment District surplus funds and
authorizing use of surplus for bond call and assessments.
.
EXHIBIT 1
ALGA ROAD ASSESSMENT DISTRICT SURPLUS FUNDS
IMPROVEMENT FUND FROM BOND SALE 15,885,846
CASH PAYOFFS 183,675
ASSESSMENT DISTRICT FUNDS 16,069,521
ACQUISITION OF AVIARA IMPROVEMENTS 11,814,725
CITY CONSTRUCTION 2,224,952
LAND ACQUISITION 81 LEGAL COSTS 447,179
MISCELLANEOUS 53,473
EXPENDITURES FROM ASSESSMENT DISTRICT 14340,329
CONSTRUCTION FUNDS AVAILABLE AT 6/30/92 1,729,192
LESS: FUTURE TRAFFIC SIGNALS (PROJECT 3369) 690,000
MODIFICATIONS TO MEDIAN LANDSCAPING 125,000
ASSESSMENT DISTRICT FUNDS RETAINED 815,000
SURPLUS CONSTRUCTION FUNDS 914,192
SURPLUS COST OF ISSUANCE FUNDS 66,900
CONSTRUCTION INTEREST EARNINGS TO 6/14/91 125,662
ISSUANCE INTEREST EARNINGS TO 6/14/91 4,234
TOTAL SURPLUS FUNDS 1,110,988
AssEss\ASURF2
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RESOLUTION NO. 9 7 - 7 4 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA DETERMINING THE AMOUNT OF
SURPLUS CONSTRUCTION FUNDS FOR THE ALGA ROAD
ASSESSMENT DISTRICT NO. 88-l AND AUTHORIZING
APPLICATION OF SURPLUS FUNDS
WHEREAS, the construction of the Alga Road Assessment District
No. 88-l has been substantially completed; and,
WHEREAS, project costs for Alga Road Assessment District No.
88-l have been established; and,
WHEREAS, construction funds are required for future traffic
signals and median modifications; and,
WHEREAS, surplus construction funds of approximately $1.1
million remain in the bond improvement fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Finance Director is directed to retain Alga Road
Assessment District bond funds of $690,000 for future traffic signals and
$125,000 for median modikations.
3. That the Finance Director is authorized to apply surplus
funds of $978,000 to the 199293 Alga Road assessments.
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4. That the Finance Director is directed to refund a
proportionate share for prepaid assessments and call bonds with any
remaining surplus funds.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council on the 28 t h day of JULY , 1992, by the following vote,
to wit:
AYES: Council Members Lewis, Kulchin, Larson, Stanton
NOES: None
ABSENT: Council Member Nygaar
ATTEST:
LLLbukl
ALETHA L. RAUTENKMNZ, City Cl (SEJw