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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 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 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. /// ‘/// /// 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 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