HomeMy WebLinkAbout1992-08-11; City Council; 11835; Surplus Construction Funds for College Blvd 85-02ClV OF CARLSBAD - AGEWA BILL
- ~ypRoJEcTNo, 3188) DISPOSITION OF SURPLUS CONSTRUCTION FUNDS
FOR COLLEGE BOULEVARD ASSESSMENT DISTRICT 85-
RECOMMENDED ACTION:
Adopt Resolution No. 92 -251 determinin g the amount of surplus construction funds for
College Boulevard Assessment District 85-2 and authorizing application of surplus funds for
bond call and property owner assessments.
ITEM EXPLANATION:
On March 25, 1986, the College Boulevard Assessment District was confirmed at a public
hearing and in May, 1986, $9.6 million in improvement bonds were issued. Funds totaling
$8.6 million were available for bond issuing costs and construction and improvement of
College Boulevard from El Camino Real to Palomar Airport Road. City contributions were
made from the Public Facilities Fund and Sewer Enterprise Fund, with total assessment
district funding of $8.9 million.
The Notice of Completion was certified by the Municipal Projects Manager on June 29,
1988 and approved by Council on July 12,1988. The Notice of Completion directed that
surplus funds were to remain in the project account to pay for necessary maintenance and
any corrective work for two years. Extensive median repair work remains uncompleted and
$300,000 will be retained for removal and rebuilding of portions of the raised median
islands and some sidewalk reconstruction.
Staff has determined that a surplus of approximately $1 milhon remains in the bond
improvement fund. The surplus funds are due to lower than anticipated issuing and
construction expenses and higher interest earnings on bond construction funds. Because
the bonds were issued prior to the 1986 Tax Reform Act, arbitrage earnings do not have to
be rebated to the federal government. In addition, none of the surplus needs to be refunded
as there were no prepaid assessments.
In accordance with Council Policy 33, staff recommends that $478,500 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 the remaining surplus be used to call bonds.
FISCAL IMPACX
The project accounting shown in Exhibit 1 reflects a surplus of approximately $1 million.
Surplus funds credited to assessments will reduce property owners’ 1992-93 obligation for
the College Boulevard Assessment District debt service by $478,500. The remaining surplus
will be used to call bonds which will further reduce property owner assessment obligation
in future years.
FXH1Bll-S:
1. Schedule of College Boulevard Assessment District project costs and surplus funds.
2. Resolution No. Xl- d5 / determining College Boulevard Assessment District surplus
funds and authorizing use of surplus for bond call and assessments.
EXHIBIT 1
COLLEGE BLVD ASSESSMENT DISTRICT SURPLUS FUNDS
SOURCES OF FUNDS
BOND SALE 8,556,836
CITY CONTRIBUTIONS 312,440
8,869,276
USES OF FUNDS
CONSTRUCTION 7,964,002
ASSESSMENT DISTRICT FORMATION/DESIGN 550,000
ISSUING COSTS 119,929
EXPENDITURES FROM ASSESSMENT DISTRICT 8,633,931
CONSTRUCTION FUNDS AVAILABLE AT 6/30/92 235,345
INTEREST EARNINGS 1,081 ,169
ASSESSMENT DISTRICT FUNDS AT 6/30/92 1,316,514
LESS EST. COST OF REPAIRS TO MEDIANS (300,000)
PROPOSED USE OF SURPLUS FUNDS
CREDIT TO PROPERTY OWNERS ASSESSMENTS 478,500
CALL BONDS 538,014
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RESOLUTION NO. 92-251
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA DETERMINING THE AMOUNT
OF SURPLUS CONSTRUCTION FUNDS FOR THE COLLEGE
BOULEVARD ASSESSMENT DISTRICT NO. 85-2 AND
AUTHORIZING APPLICATtON OF SURPLUS FUNDS
WHEREAS, the construction of the College Boulevard Assessment
District No. 85-2 has been completed; and,
WHEREAS, project costs for College Boulevard Assessment District
No. 85-2 have been established; and,
WHEREAS, construction funds are required for future repairs and
modifications to street medians; and, 6
WHEREAS, surplus construction funds of approximately $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 College
Boulevard Assessment District bond funds of $300,000 for median and
sidewalk modifications and repairs.
3. That the Finance Director is authorized to apply surplus
funds of $478,500 to the 1992-93 College Boulevard assessments.
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4. That the Finance Director is directed to call bonds with any
remaining surplus funds.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council on the 11th day of AUGUST , 1992, by the following vote,
to wit:
AYES: Council Members Lewis, Kulchin, Larson, Stanton, Nygaard
NOES: None
ABSENT: None
A’ITEST:
ALETHA L. RAUTEN (SJQW