HomeMy WebLinkAbout1998-09-01; City Council; 14825; Surplus Funds Carlsbad Ranch Assessment Districtc’lTY OF CARLSBAD - AGENDA BILL a6 @
AB# 14,825 IlILt:
DISPOSITION OF SURPLUS DEPT HD. !,@‘--
MTG. 09/01/98 CONSTRUCTION FUNDS - CITY ATTY. b%
DEPT. FIN CARLSBAD RANCH ASSESSMENT DISTRICT
NO. 95-01 CITY MGR. +--
RECOMMENDED ACTION:
Adopt Resolution No. W-288 approving the disposition of surplus funds for Carlsbad Ranch
Assessment District No. 95-01.
ITEM EXPLANATION:
On June 3, 1997, the City Council held the final public hearing and approved the formation
and sale of bonds of the Carlsbad Ranch Assessment District. The City sold 1915 Act bonds
in the amount of $10,175,438 and one owner paid $179,778.72 in cash to finance the
construction of certain improvements serving the Carlsbad Ranch area. On July 15, 1997, a
Certification and Indemnification was received certifying that all of the work eligible for
financing was completed and installed.
Currently, a balance of approximately $118,000 remains in the Assessment District
Construction Fund due to lower than projected construction costs and interest earnings on
these funds. The Streets and Highways Code of the State of California states that after
completion of the improvement and the payment of all claims from the improvement fund, the
legislative body shall determine the amount of the surplus, if any, remaining in the
improvement fund by reason of the assessment and any supplemental assessment levied for
the improvement. The surplus shall be used, in amounts determined by the legislative body,
for one or more of the following purposes:
a. For transfer to the General fund of the city, provided that the amount
transferred shall not exceed the lesser of $1,000 or 5 percent of the
total amount expended from the improvement fund.
b. As a credit upon the assessment and any supplemental assessment,
in the manner provided in Section 10427.1 of the Code.
c. For the maintenance of the improvement.
d. To call bonds, thereby reducing outstanding assessments and
subsequent assessment installments. In the event that the
legislative body determines to use all or some portion of the surplus
to call bonds prior to maturity, the treasurer shall do each of the following:
1. Cause the special reserve fund to be reduced as
necessary to assure that the bonds will not become subject
to federal income taxation.
2. Cause any assessment previously paid in cash to receive a
credit in cash for the proportionate share of the surplus.
3. Cause the preparation of new auditor’s records to reflect the
adjusted principal amount of the remaining assessments.
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Page 2 of Agenda Bill # 14.825
Staff is recommending that Council direct staff to utilize the surplus to call bonds as specified in (d)
above in the following manner:
1. Return the credit in cash to any property owners that previously paid their assessment
in cash.
2. Call bonds, thereby reducing outstanding assessments and subsequent assessment
installments.
FISCAL IMPACT:
There are minor costs associated with preparing the bond call. These costs are covered under an
existing contract with NBS Government Finance Group for the provision of administrative services for
the City’s 1915 Act Assessment Districts and will be paid for by the Assessment District.
EXHIBIT:
1. Resolution No. 98-288 approving the disposition of surplus funds for Carlsbad Ranch
Assessment District No. 95-01.
c 1 RESOLUTION NO. 98-288
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 CARLSBAD, CALIFORNIA, MAKING DECLARATION REGARDING DISPOSITION OF SURPLUS CONSTRUCTION
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7 WHEREAS, the City Council of the City of Carlsbad, California, has conducted
8 proceedings and received certification of completion of construction for certain works of
9 improvement in a special assessment district pursuant to the terms and provisions of the
“Municipal Improvement Act of 1913,” being Division 12 of the Streets and Highways Code of the
10 State of California; said special assessment district known and designated as ASSESSMENT
11 DISTRICT NO. 95-l (CARLSBAD RANCH) (hereinafter referred to as the “Assessment District”);
12 /I and,
13 WHEREAS, after completion of the improvements and payment of all the claims from the
14 Improvement Fund for said Assessment District, there remains a surplus in the Improvement
15 Fund, and this legislative body is desirous at this time to make the disposition of said surplus as
16 so provided by Section 10427 of the Streets and Highways Code of the State of California.
17 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cartsbad,
,8 California, as follows:
SECTION 1. That the above recitals are all true and correct.
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SECTION 2. That the works of improvement, as set forth and described in the
Resolution of Intention for these proceedings, have been completed to the satisfaction of this
21 legislative body, and all payment has either been made or set aside for all existing or potential
22 claims, costs and expenses.
23 SECTION 3. That all surplus monies, at this time remaining in the Improvement Fund,
24 shall be used in the following manner:
25 A. To those who paid cash, the proportionate share of the surplus shall be
26 returned in cash to the person or persons owning the property for which the
27 payment has been paid upon their furnishing satisfactory evidence of payment;
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B. To call bonds, thereby reducing outstanding assessments and subsequent
xsessment installments.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
held on the lSt day of SeDtetier , 1998 by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Nygaard, Finnila and Hall
NOES: None
ABSENT: None
4TTEST:
(SEAL)