HomeMy WebLinkAboutCC 13 SETTING TAX RATE 08-20-90DATE:
TO:
FROM:
AUGUST 91 1990
WILLIAM HUSTON, CITY MANAGER
RONALD A. NAULT, DIRECTOR OF FINANCE
CONSENT CALENDAR NO. 13
8-z0-90
Inter - Com
SUBJECT: ADOPT RESOLUTION 90-105 SETTING THE TAX RATE FOR THE 1973
CIVIC CENTER BONDS
RECOMMENDATION:
Adopt Resolution No. 90-105 setting forth the 1990-91 Tax Rate for
the 1973 Civic Center Bonds at $ .00401.
DISCUSSION:
The Revenue and Taxation Code requires the annual adoption of the
tax rate for all authorized general obligation bonds if the
required rate will exceed the one percent basic levy.
The City of Tustin 1973 Civic Center Bonds, $950,000 in total, were
authorized at an election held September 19, 1972. The bonds were
dated April 1, 1973 with the first maturity occurring April 1, 1975
and every April thereafter with the final maturity being April 1,
1998. The interest rates varied from a high of 7 percent from
1973-79, to a low of 5.25 percent from 1980-87. The present
interest rate is 5.4 percent through 1992. The final five years of
the bond issue will bear interest from 5.5 percent to 5.6 percent.
The proposed tax rate of .00401 percent will generate sufficient
revenues to service the 1990-91 debt service requirement of
$74,000. This rate is consistent with the rate assessed for the
past four years and is equal to about 0.04 per $1,000 of assessed
value. The principal balance as of June 30, 1991 will be $400,000.
Projected fund balance in the Civic Center Fund at June 30, 1991 is
$355,000.
The next available call period for these bonds will be April 1,
1991. There is a call premium of 0.5 percent per year not to
exceed 5 percent that will add to the cost of redemption.
The cost of redeeming the bonds on April 1, 1991 will be $470,000.
Unless we increase the tax rate to approximately .008 percent, we
will not have sufficient resources available in the Civic Center
Bond Fund to redeem bonds this soon. By april, 1992, the cost of
redemption will be $420,000. The interest expense during the
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Civic Center Bonds
August 91 1990
final six years of this issue is approximately $69,000. Even when
we net the call premium cost of $20,000 from this amount, the
savings to the tax payer is $49,000.
Ron&ld A. Nault
Director of Finance
RAN: 1s
Attachment
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RESOLUTION 90-105
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, FIXING AND DETERMINING THE AMOUNT OF
REVENUE REQUIRED FROM PROPERTY TAXES OF THE CITY OF
TUSTIN AND FIXING THE RATE OF TAXES ON THE TAXABLE
PROPERTY WITHIN THE CITY OF TUSTIN TO SERVICE THE DEBT
OF THE GENERAL OBLIGATION BONDS OF THE CITY FOR THE
FISCAL YEAR 1990-1991.
The City Council of the City of Tustin does hereby resolve
as follows:
Section 1:
That the City of Tustin has, pursuant to law, heretofore
elected to have its duties of assessment and tax collection
performed by the County of Orange, through the County Assessor,
Tax Collector, Auditor, and other officials of the County of
Orange.
Section 2:
That the tax rate herein is levied pursuant to Section 93
of the Revenue and Taxation Code for the purpose of paying voter -
approved indebtedness of the City of Tustin.
Section 3:
That the amount of money necessary to be raised by
taxation upon the taxable property within the City of Tustin as
revenue to pay the voter -approved indebtedness for the 1973 Civic
Center Bonds for the 1990-91 fiscal year is the sum of $74,000.
Said Bonds are a general obligation of the City of Tustin.
Section 4:
That the tax rate to be levied shall be .00401 percent
(.0000401) of full value of the secured valuation of property
within the City of Tustin.
Section 5:
That the City Clerk of the City of Tustin shall certify to
the County Auditor of the County of Orange, State of California,
a statement of the rate of taxes fixed herein, to be extended to
him on the 1990-91 Assessment Roll for the collection thereof in
the same manner as County taxes.
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Resolution 90-105
Section 6:
That the City Clerk shall certify to the adoption of this
Resolution and shall cause the same to be published once within
fifteen days after its adoption, in the Tustin News, a weekly
newspaper of general circulation, printed, published, and
circulated in the City of Tustin.
PASSED AND ADOPTED at a regular meeting of the City
Council of the City of Tustin, California, held on the
day of , 1990.
ATTEST:
Mary Wynn
City Clerk
City of Tustin
a:civccntr.bnd
Richard B. Edgar
Mayor