HomeMy WebLinkAboutNB 8 PARK/CC BONDS 08-17-81OATE:
TO:
FROM:
SUBJECT:
NEW BUSINESS
! nter O/m
August 17, 1981
Eonorable Mayor and City\~ncil Members via C.R. Thayer, Acting City
Manager ~/~ I /
Ron Nault, Finance Direct~
Resolution adopting 1981-82' ~ax Rates for the 1971 Park Bonds and the
1973 Civic Center Bonds.
RECOMMENDATION
Review and adopt the attached resolution, setting the 1981-82 tax rate for the 1971
Park Bonds at .00858% and the 1973 Civic Center Bonds at .00616%.
Per the Revenue and Taxation Code, the County must provide taxing agencies with a
per-agency breakdown of property valuations by August 15 of each year. Prior to
September I of each year a resolution adopting any appropriate tax rate must be
submitted to the County to apply to current valuations for property tax purposes.
DISCUSSION
During the budget workshops Council expressed concern of the reserve balances in both
the Park Bond and Civic Center Bond Fund. It was Council's desire to reduce these
reserves which will subsequently reduce the effective annual tax rate required to
support the bond debt service. What I recommend is to reduce the current balances
equally, over the remaining life of the bonds. The Park Bonds have 10 years remaining
life so that 1/10 of the balance will be used each remaining year of the bond. The
Civic Center Bonds have 16 years remaining life so that 1/16 of the balance will be
used, etc. Item 3 on the attached work sheet shows the precise calculation of this
reducton.
It is intended that the remaining balance will be reviewed annually and the average
ann~al reduction be djusted as necessary. By the final year of maturity there should
be a zero reserve balance in'both funds.
The new tax requested for the coming year reflects the net revenue required. (See
item 4 on the attached work sheet.)
.attachment
1971 PARK BONDS AND 1973 CIVIC CENTER BONDS
(1981-82 Tax Rate Worksheet)
1. 1981-82 Property valuations certified by County of Orange
Secured Unsecured
Land
Improvements
Personal Property
Business Inventory
B/I & H/O
Exemptions
Net value
364,814,785
600,647,968
26,946,550
<403618,467>
951,790,836
1,521,404
36,175,564
56,204,720
3,079,720
<1~597t240>
95,384,168
2. Previous years' tax rate applied to current years' unsecured.
Park Bonds
Civic Center Bonds
Net unsecured
80/81 tax rate
953,842 953,842
x .0102 x .00408
9,729 3,892
3. Bond fund reserve reductions·
Park Bond reserve balance at 6-30-81
10 years remaining in issue.
$266,314
6-30-81 balance
Remaining life
266,314 = $26,631 average annual
10 yrs. reduction
Civic Center bond reserve balance at 6-30-81 $135,300
10 years remaining in issue.
6-30-81 balance
135~300 = $8,456 average annual
16 yrs. reduction
4. 1981-82 revenue required.
Park Bonds
Civic Center Bonds
Required Rev.
Less: prior yr. rate
Revenue reduct.
1981-82 revenue
required
$118,000 $ 71,000
<9,729> <3,892>
<26t631> <8~45~>
$ 81,640 $ 58,652
5. 1981-82 Tax Rate:
Park Bonds
Civic Center Bonds
Req, Revenue
Net secured
Applicable tax rate
81,640 =
951,790,836
.00858%
· 0000858
58t652 = .0000616
951,790,836
.00616%
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
2O
21
22
23
24
25
26
27
RESOLUTION NO. 81-98
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
FIXING AND DETERMINING THE AMOUNT OF REVENUE REQUIRED FROM
PROPERTY TAXES OF THE CITY OF ~JSTIN AND FIXING THE RATE OF
TAXES ON THE TAXABLE PROPERTY WITHIN THE CITY OF TJSTIN TO
SERVICE THE DEBT OF THE GENERAL OBLIGATION BONDS OF THE CITY
FOR THE FISCAL YEAR 1981-82.
The City Council of the City of Tustin does 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 Cou/%ty 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
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 1971 park bonds for the
1981 fiscal yuear is the sume of $81,640. Said bonds are a
general obligation of the City of Tustin.
Section 4:
That the tax rate to be levied shall be .00858 ~ercent (.0000858)
of full value of the secured valuation of property within the City
of Tustin.
Section
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 1981-82 fiscal yet is the su~ of $58,652. Said bonds are
a general obligation of the City of Tustin.
Section 6:
That the tax rate to be levied shall be .00616 percent (.0000616)
of full value of the secured valuation of property within the City
of Tustin.
Section 7:
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 1981-82 Assessment Roll for the collection thereof in the
same manner as County taxes.
28
1 RESOLUTION No. 81-98
page 2.
2
3
Section 8: That the City Clerk shall certify to the adoption of this
4 Resolution and shall cause the same to be published once within
fifteen days after its adoption, in the Tustin News, a weekly
5 newspapre of general circulation, printed, published, and
circulated in the City of T~stin.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
7 Tustin, held on the day of , 1981.
8
10
11
AT~EST:
13
14 Mary E. Wynn
City Clerk
15
16
18
20
21
22
23
24
25
2'I
James B. Sharp
Mayor
28
NEW BUSINESS
NO. 8
8-17-81
AGENDA ITEM:
RESOLUTION ADOPTING TAX RATES FOR CIVIC CENTER AND PARK BOND FUNDS
BACKGROUND:
As of August 12, 1981, the information needed has not been received from
the County Assessor's office. If the information is received in time for
the August 17th meeting, the Resolution and report will be supplied in a
supplemental packet, otherwise, it will be necessary to continue this item
to a Regular Adjourned Meeting.