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HomeMy WebLinkAbout2006-12-12; City Council; 18834; Financial Report on capital fundsCITY OF CARLSBAD - AGENDA BILL AB# 18,834 MTG. 12/12/06 DEPT. FIN ANNUAL FINANCIAL REPORT ON CAPITAL FUNDS AND SPECIAL TAXES ni moi i A KIT T/"\ /"*/"\w CDKiftflCKiT r*f\r\cPURSUANT TO GOVERNMENT CODE SECTIONS 50075, 66001, AND 66006 DEPT. HEAD ^ . CITY ATTY. <^- CITY MGR. £ul^ RECOMMENDED ACTION: Adopt Resolution No.2006-359 making certain findings pursuant to California Government Code Sections 50075 and 66001. ITEM EXPLANATION: California Government Code requires the City to annually report on the status of certain fees and special taxes. More specifically, the City must annually make findings regarding any local special tax measure and any fee established, increased, or imposed after January 1, 1989. Government Code Sections 50075.1 & 50075.3: California Government Code Sections 50075 - 50077.5, inclusive, were enacted to earn the voter's confidence and support of special taxes by demonstrating to the voters that local agencies spend these funds on the intended facilities and services. To accomplish this goal, California Government Code Section 50075.1 requires that any local special tax/local bond measure subject to voter approval: 1. contain a statement indicating the specific purposes of the special tax, 2. have a requirement that the proceeds of the special tax be applied to those purposes, 3. have a separate account into which the proceeds shall be deposited, and 4. have an annual report containing information regarding the use of proceeds. The first three requirements of Government Code Section 50075.1 are met through the formation of the Special Tax District. Requirement four is satisfied annually via Government Code Section 50075.3. Government Code Section 50075.3 requires "the chief fiscal officer of the local agency to file a report with its governing body no later than January 1, 2002, and at least once a year thereafter", which contains the following information: 1. the amount of funds collected and expended, and 2. the status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1. DEPARTMENT CONTACT: Aaron Beanan 760-602-2414 abean@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED ft U D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES D D D D Page 2 The City's Community Facilities District No. 1 and Community Facilities District No. 3 are included under this code section because they are local special tax measures subject to voter approval. The information to make the findings can be found in the 2006-07 Capital Improvement Program (CIP) on file with the City Clerk. When findings are required by this subdivision, they need to be made in connection with the public information required by Code Sections 50075 - 50077.5, inclusive. The attached resolution makes these findings in accordance with Code Section 50075.1. Since these findings have been made, and the City is in compliance with the Code, no action is required. Government Code Sections 66001 & 66006: California Government Code Section 66006 requires local agencies to annually report certain financial information related to capital funds established to track fees charged in connection with the approval of a development project. The information required by the Government Code includes: 1. a description of the fee, 2. the amount of the fee, 3. the beginning and ending balance of the fund, 4. the amount of the fees collected and the interest earned, 5. an identification and amount of each public improvement on which fees were expended, 6. the total percentage of the project funded by that fee, 7. the approximate date by which the construction of the public improvement will commence, 8. a description of each interfund transfer or loan, including the project to be funded with the loan, the approximate date of repayment, and rate of interest, and 9. any refunds made to developers pursuant to the Code. This information must be made available within 180 days of the end of the fiscal year and must be reviewed at the next regularly scheduled meeting not less than 15 days after the information is available. The attached report provides the information required by the Government Code for the development fees that fall under this disclosure requirement. In some instances, the ending fund balance amount is less than the remaining appropriation because outstanding advances and loans are not included in the fund balance. Cash balances are sufficient for the remaining appropriations. No refunds have been made nor are any required. More information on these funds, and all other capital funds, is available in the annual Capital Improvement Program that was adopted by Council in June and in the Comprehensive Annual Financial Report that will be available in December 2006. In addition to the required annual reporting under Code Section 66006, California Government Code Section 66001 requires local agencies to make the following findings every five years with respect to that portion of the fund remaining unexpended, whether committed or uncommitted, for the development fee funds: 1. Identification of the purpose to which the fee is to be put. 2. Demonstration of a reasonable relationship between the fee and the purpose for which it is charged. PageS 3. Identification of all sources and amounts of funding anticipated to complete financing on incomplete improvements. 4. The approximate dates on which the funding referred to above is expected to be deposited into the appropriate account or fund. The information to make the findings for the four (4) requirements can be found in the 2006- 07 Capital Improvement Program (CIP) on file with the City Clerk. When findings are required by this subdivision, they need to be made in connection with the public information required by Code Section 66006. The attached resolution makes these findings in accordance with Code Section 66001. Since these findings have been made, and the City is in compliance with the Code, no refunds are required. This report, including all the above code sections, was compiled with the audited City financial records. These audited figures are also available in the City's Comprehensive Annual Financial Report (CAFR). FISCAL IMPACT: There is no fiscal impact ENVIRONMENTAL IMPACT: There is no environmental impact. EXHIBITS: 1. Resolution No. 2006-359 making certain findings pursuant to California Government Code Sections 50075 and 66001. 2. Financial Information Report, Capital Funds and Special Taxes subject to Government Code Sections 50075 and 66006. 3. The 2006-07 Capital Improvement Program on file with the City Clerk. 3 Exhibit 1 1 RESOLUTION NO. 2006-359 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO MAKE 4 CERTAIN FINDINGS PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 50075 AND 5 66001 6 7 WHEREAS, the City of Carlsbad is required to make certain findings every 8 five years with respect to the unexpended fund balance of certain development fee funds pursuant to California Government Code Section 66001; and ^ WHEREAS, the City of Carlsbad is required to make certain findings 12 annually with respect to special taxes collected and expended pursuant to 13 California Government Code Section 50075; and 14 WHEREAS, the information to make the required findings can be found in the 2006-07 Capital Improvement Program on file with the City Clerk; and 16 WHEREAS, these findings need to be made in conjunction with the public information required by Code Sections 50075 and 66006.18 19 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 20 Carlsbad, California, as follows: 21 1. That the above recitations are true and correct. 22 2. That the following findings are made as required under Government 24 Code Sections 50075 and 66006: 25 a. That the purpose to which the developer fee and special taxes are to 26 be put has been identified. 27 b. That a reasonable relationship has been demonstrated between the 28 1 2 Exhibit 1 developer fee and the purpose for which it is charged. c. That all sources and amounts of funding anticipated to complete 3 financing on incomplete improvements have been identified. 4 d. That the approximate dates on which the funding referred to above is 5 expected to be deposited into the appropriate fund have been designated. 6 3. That these findings are based on information provided in the City of 7 Carlsbad's Operating Budget and Capital Improvement Program 2006-07, which is8 incorporated herein by reference. //10 11 // 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of December, 2006, by the following vote: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose. NOES: None. ABSENT: None. ATTEST: lORRAINE M. WOOD, City Clerk" (SEAL) Exhibit 2 FINANCIAL INFORMATION REPORT CAPITAL FUNDS SUBJECT TO GOV. CODE SEC. 50075 YEAR ENDED JUNE 30, 2006 COMMUNITY FACILITIES DISTRICT #3 (1) Date of Issuance 05/11/2006 Initial Amount Deposited To Improvement Fund $ 9,989,741 Balance at 06/30/2006(2) $12,591,995 Expenditures To Date $ 245,989 Project Status In Progress (1) Pursuant to Government code section 50075 the following items are required to be disclosed: (a) The amount of funds collected and expended. (b) The status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1 or Section 53410. (2) Federal grant money and interest earnings account for the balance increase. 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