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Home My WebLink About1996-06-18; City Council; 13695; ESTABLISH 1996-97 ANNUAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 1? 1 w 6 2 M 4ZL z 0 F= 0 a 8 z 3 0 0 UY OF CARLSBAD - AGWA BILL AB # 46s E ESTABLISH 1996-97 ANNUAL TAX FOR DEF MTG. 06/18/96 COMMUNITY FACILITIES DISTRICT NO. 1 CIT DEPT. FIN CIT‘ RECOMMENDED ACTION: Adopt Resolution No. %---?// establishing the 1996-97 annual tax for the Comm Facilities District No. 1. ITEM EXPLANATION In 1982, the State Legislature responded to the need for a high quality methc financing public improvements by approving the Mello-Roos Community Facilities P 1982. This act allows voters to approve a special tax to be levied upon their prope fund the construction or acquisition of facilities or services. A Community Facilities District (CFD) is not intended to relieve any property owner c responsibility to provide funding for infrastrudure improvements related to developrr No homeowners in Carlsbad are affected by a City CFD because under the ( guidelines, any and all tax obligations on residential units must be paid in full whe building permit is issued. When a building permit is issued for non-reside development, property owners must choose whether to pay the CFD tax in full 01 pass-through taxes for twenty-five years. The City of Carlsbad and property owners of specific vacant land in Carlsbad w( together to form a CFD to provide funding for a variety of infra- structure projects ne to meet growth management requirements. Vacant land and a small percenta! developed non-residential land located in sixteen Local Facilities Management Zone currently in the CFD, with other zones annexing as development plans progress. Following Mello-Roos legislation, Council held a public hearing and an election formed Community Facilities District (CFD) No. 1 on May 7, 1991. Through financing or available cash balances, CFD No. 1 will fund the following capital projc Civic Facilities 1-5 Interchanges Road Segments Warehouse Facility La Costa Avenue Olivenhain Road City Hall Poinsettia Lane Cannon Road Veteran’s Memorial Park Faraday Avenue Leucadia Boulevard In June 1991, Council adopted an ordinance putting in place the tax formula fc district establishing the maximum tax rates that may be levied on CFD No. 1. maximum tax rate for property within the CFD is adjusted each year by one-half c annual change in the Los Angeles inflationary factor in the “Engineering News Re (ENR) Cost Indexes in 22 Cities. The maximum tax rate for property not yet inc within CFD No. 1 is adjusted by the full ENR percentage change until the fiscal yc annexation. Although the ordinance established a ceiling for future tax rates, it di create the individual tax levy that will be placed on each parcel. Each year thc establishes the levy as the funding needs for the next fiscal year are known. Library Palomar Airport Road La Costa Avenue 4 0 1) PAGE TWO OF AGENDA BILL NO. /3 d6 Staff recommendations for the 1996-97 tax levy are presented in Exhibit A of the attact Resolution and show the tax rate schedule for property included within CFD No. 1 at formation well as for property annexed thereafter. The proposed tax levy reflects an increase of one-hall the ENR inflator (0.1%) as described above. Vacant property planned for future residen development will continue to be taxed at 74% of the maximum tax on each developable acre The tax on vacant property zoned for future commercial or industrial development is proposec be increased from 38.37% of the maximum tax to 40Y0 of the maximum tax. Based on curr estimates, the tax rate for future commercial or industrial development will need to be raisec approximately 50% of the maximum tax in 1997-98. These rates were set low initially at request of the property owners and were projected to increase over time. Certain non-residential property owners elected not ts pay off their CFD obligation at the ti building permits were issued. Instead, they chose to assume an annual special tax developed property for twenty-five years. According to the CFD documents, the annual spei tax on developed property shall not exceed 13.81% of the authorized one time payoff tax commercial and industrial property. This percentage rate was determined based on the averi cost of bond financing (1 I %) plus administrative costs. The proposed 1996-97 tax rate for developed property is 9.48% of each property's one til payoff tax. This rate is the same rate as last year. FISCAL IMPACT The levying of taxes on parcels within CFD No. 1 will create the necessary cash flow to finar the construction of the new library, 1-5 interchanges, and other major civic and road projec Setting the CFD tax at the recommended rates will result in a tax levy of about $2.3 million for ' 1996-97 fiscal year. The prior delinquency rate was significantly lowered when the ( purchased property for the Carlsbad Municipal Golf Course. The current delinquency rate approximately 10%. This should not have any significant fiscal impact because delinquenc are factored into future revenue projections. The CFD will eventually receive these delinqu taxes: it is just a matter of when the collection occurs. EXHIBIT 1. Resolution No. ?d--~?d establishing the 1996-97 annual tax for Community Facilit, District No. I. I !* 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 0 0 RESOLUTION NO. 96-211 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING ANNUAL TAX FOR A COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CARLSBi CALIFORNIA, (hereinafter referred to as the "legislative body"), has initia proceedings, held a public hearing, conducted an election and received a favora vote from the qualified electors relating to the levy of a special tax ir community facilities district, all as authorized pursuant to the terms and provisic of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part Division 2, Title 5 of the Government Code of the State of California. 1 Community Facilities District shall hereinafter be referred to as COMMUN FACILITIES DISTRICT NO. 1 (hereinafter referred to as the "District"); and, WHEREAS, this legislative body, by Ordinance as authorized by Sect 53340 of the Government Code of the State of California, has authorized the 11 of a special tax to pay for costs and expenses related to said Community Facili. District, and this legislative body is desirous to establish the specific rate of special tax to be collected for the next fiscal year. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the specific rate and amount of the special tax tc collected to pay for the costs and expenses for the next fiscal year (1996-97) the referenced District is hereby determined and established as set forth in attached, referenced and incorporated Exhibit A. SECTION 3. That the rate as set forth above does not exceed amount as previously authorized by Ordinance of this legislative body, and is in excess of that as previously approved by the qualified electors of the Distric Ill ,. 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 0 0 SECTION 4. That the proceeds of the special tax shall be used to p in whole or in part, the costs of the following, in the following order of priority: A. Payment of principal of and interest on any outstand authorized bonded indebtedness; B. Necessary replenishment of bond reserve funds or ot reserve funds; C. Payment of costs and expenses of authorized public facilit and public services; D. Repayment of advances and loans, if appropriate. 1 proceeds of the special taxes shall be used as set forth above, and shall not used for any other purpose. SECTION 5. The special tax shall be collected in the same manner ordinary ad valorem property taxes are collected, and shall be subject to the sa penalties and same procedure and sale in cases of any delinquency for ad valor taxes, and the Tax Collector is hereby authorized to deduct reasona administrative costs incurred in collecting any said special tax. SECTION 6. All monies above collected shall be paid into Community Facilities District funds, including any bond fund and reserve fund. SECTION 7. The finance Director is hereby directed to calculate installment of the special tax for each parcel within the District and provide a of those special taxes to the Auditor of the County. The Auditor of the Count3 hereby directed to enter in the next County assessment roll on which taxes become due, opposite each lot or parcel of land affected in a space marl "public improvements, special tax" or by any other suitable designation, installment of the special tax. SECTION 8. The County Auditor shall then, at the close of the collection period, promptly render to this Agency a detailed report showing 2. 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 0 a amount and/or amounts of such special tax installments, interest, penalties ar percentages so collected and from what property collected, and also provide statement of any percentages retained for the expense of making any su( collection. PASSED, APPROVED AND ADOPTED by the City Council of the City I Carlsbad at its regular meeting held on the 18th day of JUNE , 199 by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Ha NOES: None ABSENT: None ATTEST: ALETHA L. RAUTENKRANZ, City Clerh (SEAL) 3. PROPERTY TYPE FISCAL YEAR 1995-96 FISCAL YEAR 1996-97 MAXI MUM TAX MAKlMUM TAK TAX RATES TAX RATE5 TAXRA TE IMPROVEMENTAREA L RL $ 295 $ 218 RLM 809 599 RM 1,356 1,004 RMH 2,079 1,539 RH 2,927 2,166 NON-RESIDENTIAL (38 37% OF MAXIMUM) COMMERCIAL $ 2,515 $ 965 INDUSTRIAL 1,258 483 TMRA TEIMPROVEMENTAREA IL RL $290 $ 215 RM 1,276 944 RMH I ,958 1,449 RH 2,871 2,124 NON-RESIDENTIAL (38 37% OF MAXIMUM) COMMERCIAL $1,677 $ 643 INDUSTRIAL 1,006 386 RESIDENTIAL (74% OF MAXIMUM) RESIDENTIAL (74% OF MAXIMUM) RLM 797 589 (74% $ 295 $ 81 0 1,358 2,082 2,930 (40% $ 2,518 $ 1,259 (74% $ 291 $ 797 1,277 1,960 2,874 (40% $ 1,679 $ 1,007 TAXONDEVELOPEDPROPERTY MAXIMUM PERCENTAGE 1994-95 ESTABLISHED ACTUAL TAX 1995-96 ESTABLISHED ACTUAL TAX 1996-97 ESTABLISHED ACTUAL TAX % OF ONE-TIME TAX 13.81% 9.48% 9 48% 9.48% PROP E RTY TYPE FISCAL YEAR 1995.96 FlSCAL YEAR 1996-97 MAXIMUM TAX MAXI MUM TAX TAX RATES TAX RATES 7;QXm TEIMFROVEMENTAREA L RESIDENTIAL (74% OF MAXIMUM) RLM a38 620 RL $ 305 $ 226 RM 1,405 1,040 RMH 2,154 1,594 RH 3,032 2,244 NON-RESIDENTIAL (38 37% OF MAXIMUM) COMMERCIAL $ 2,605 $ 1,000 INDUSTRIAL 1,303 500 TRYRA TE IMPROVEMENTAREA /k RL $ 301 $ 223 RM 1,321 978 RMH 2,028 1,501 RH 2,973 2,200 NON-RESIDENTIAL (38 37% OF MAXIMUM) COMMERCIAL $ 1,737 $ 666 INDUSTRIAL 1,042 400 RESIDENTIAL (74% OF MAXIMUM) RLM 825 61 1 (74% 0 $ 305 $ a39 1,406 2,156 3,035 (40% C $ 2,608 $ 1,304 (74% 0 $ 301 $ 826 1,322 2,030 2,976 (40% 0 $ 1,739 $ 1,043 TAXONDEVELOPEDPROPERTY MAXIMUM PERCENTAGE 1995-96 ESTABLISHED ACTUAL TAX 1994-95 ESTABLISHED ACTUAL TAX 1996-97 ESTABLISHED ACTUAL TAX % OF ONE-TIME TAX 13 81% 9.48% 9.48% 9.48% PROPERTY TYPE FISCAL YEAR 1995-96 FISCAL YEAR 1996-97 MAXIMUM TAX MAXI MUM TAX TAX RATES TAX RATES TMRA TE IMPROVEMENTAREA I.- RL $ 308 $ 228 RLM 847 627 RM 1,420 1,051 RESIDENTIAL (74% OF MAXIMUM) RMH 2,177 1,611 RH 3,065 2,268 NON-RESIDENTIAL (38 37% OF MAXIMUM) COMMERCIAL $ 2,634 $ 1,011 INDUSTRIAL 1,317 505 TAXRATE IMPROVEMENTAREA IL RL $ 304 $ 225 RLM 834 61 7 RM 1,336 988 RMH 2,050 1,517 RH 3,006 2,224 COMMERCIAL $ 1,756 $ 674 INDUSTRIAL 1,054 404 RESIDENTIAL (74% OF MAXIMUM) NON-RESIDENTIAL (38 37% OF MAXIMUM) (74% ( $ 309 $ 848 1,421 2,179 3,068 (40% ( $ 2,636 $ 1,318 (74% c $ 304 $ 835 1,337 2,052 3,009 (40% ( $ 1,758 $ 1,055 TAXONDEVELOPEDPROPERTY MAXIMUM PERCENTAGE 1994-95 ESTABLISHED ACTUAL TAX 1995-96 ESTABLISHED ACTUAL TAX 1996-97 ESTABLISHED ACTUAL TAX % OF ONE-TIME TAX 13.81 % 9.48% 9.48% 9.48% PROPERTY TYPE FISCAL YEAR 1995-96 FISCAL YEAR 1996-97 MAXIMUM TAX MAXI MUM TAX TAX RATES TAX RATES JURA JE IMPROVEMENTAREA L- RESIDENTIAL RL $ 308 NIA RM 1,420 NIA RMH 2,177 NIA RH 3,065 NIA COMMERCIAL $ 2,634 NIA INDUSTRIAL 1,317 NIA TMRA TE IMPROVEMENTAREA IL RESIDENTIAL RL $ 304 NIA RLM 834 NIA RM 1,336 NIA RLM 847 NIA NON-RESIDENTIAL RMH 2,050 NIA RH 3,006 NIA COMMERCIAL $ 1,756 NIA INDUSTRIAL 1,054 NIA NON-RESIDENTIAL 174% C $ 309 $ a48 1,421 2,179 3,068 (40% c $ 2,636 $ 1,318 (74% 0 $ 304 $ 835 1,337 2,052 3,009 (40% 0 $ 1,758 !$ 1,055 - TAX ON DEVELOPED PROPERTY % OF ONE-TIME TAX MAXIMUM PERCENTAGE 13.81% 1994-95 ESTABLISHED ACTUAL TAX 9.48% 1995-96 ESTABLISHED ACTUAL TAX 9.48% 1996-97 ESTABLISHED ACTUAL TAX 9.48%