ITEM 8-A

Council Meeting: September 8, 1992      Santa Monica, California

                          STAFF REPORT

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  ORDINANCE SETTING THE FY 1992-93 TAX RATE FOR THE MAIN
          LIBRARY IMPROVEMENTS PROJECT GENERAL OBLIGATION BONDS

INTRODUCTION

This is to recommend that the City Council adopt the attached
ordinance setting the FY 1992-93 tax rate for the 1990 Main
Library Improvements Project General Obligation Bonds at $.003954
per $100 of assessed value.

BACKGROUND

The City issued $4.5 million in General Obligation Bonds on April
10, 1990 for the purpose of meeting the immediate parking and
future expansion needs of the Main Library.  As specified by
Section 606 of the Santa Monica City Charter and Section 43632 of
the State of California Government Code, the annual debt service
on these General Obligation Bonds is to be payable from an
override on the property tax which is levied annually for the
period that the bonds are outstanding.

DISCUSSION

The City Treasurer has calculated the necessary property tax
override to be $.003954 per $100 assessed valuation of secured
property for FY 1992-93 based upon information provided by the
Los Angeles County Auditor-Controller.

Calculation of the FY 1992-93 property tax rate is as follows:

       $388,095              Debt Service for FY1992/93*

        (50,801)             Excess Property Tax Proceeds
        _______              Received in FY 1991/92

       $337,294              Net Requirements for FY 1992-93

        (18,687)             Projected Unsecured Property Tax
        _______              Revenues for FY 1992-93**

       $318,607              Projected Net Debt Service Require-
                             ments to be Financed by a Levy on
                             Secured Property for FY 1992-93

       $318,607
 $8,057,946,519***/$100 =    Tax Rate of $.003954

_______________________

  *  Reflects debt service payments to bond holders due 1/1/93
     and 7/1/93 but paid by the City to Bond Trustee during FY
     1992/93.

 **  Unsecured revenues are calculated applying the prior year
     secured tax rate to current year assessed valuation of
     unsecured property.  (.004492/100 x $416,011,588)

***  Reflects total City secured assessed valuation for FY
     1992/93.

________________________

In accordance with Section 1501 of the City Charter, the City
will use the County system of assessment and collection of
property taxes.

BUDGET/FINANCIAL IMPACT

Adoption of the attached ordinance has no impact on the FY
1992-93 budget.

The Property Tax impact of this tax override levy on a residence
with a secured assessed value of $500,000 is $19.77/year.

RECOMMENDATION

It is recommended that the City Council introduce and adopt the
attached ordinance setting the FY 1992-93 tax rate for the 1990
Main Library Improvements Project General Obligation Bonds at
$.003954 per $100 of assessed value.

Prepared by:  Mike Dennis, Director of Finance
              Ralph Bursey, Revenue Manager/City Treasurer
              David Carr, Assistant City Treasurer