Item 8-E

Council Meeting: September 14, 1999 Santa Monica, CA

STAFF REPORT

TO: Mayor and City Council

FROM: City Staff

SUBJECT: ORDINANCE SETTING THE FY 1999-00 TAX RATE FOR THE 1990 MAIN LIBRARY GENERAL OBLIGATION BONDS

This report recommends that the City Council adopt the attached ordinance setting the FY 1999-00 tax rate for the 1990 Main Library General Obligation Bonds at $.004170 per $100 of assessed valuation.

On April 10, 1990, the City issued $4.5 million in General Obligation Bonds to acquire property adjacent to the Main Library to meet immediate parking needs and for future library expansion. The annual debt service on the 1990 General Obligation Bonds (including the refunded portion) is payable from an annual override on the Property Tax levy. On June 25, 1998, the City refunded a portion of the 1990 bonds at a lower interest rate resulting in a lower tax override rate assessed to local property owners.

The City Treasurer has calculated the necessary property tax override to be $.004170 per $100 of assessed valuation, which is 2.4% lower than the FY 1998-99 rate. This lower tax rate reflects an increase in City assessed valuation. Attachment 1 provides details of the tax rate calculation.

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

Adoption of the attached ordinance has no impact on the FY 1999-00 budget. The Property Tax impact of this override levy is $4.17 per $100,000 of assessed valuation as compared to $4.27 per $100,000 assessed valuation in FY 1998-99.

It is recommended that the City Council introduce and adopt the attached ordinance setting the FY 1999-00 tax rate for the 1990 Main Library General Obligation Bonds (including the refunded portion) at $.004170 per $100 of assessed value.

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

Attachments:
Calculation of Tax Rate
Ordinance

ATTACHMENT 1

CALCULATION OF TAX RATE

Calculation of the FY 1999-00 property tax rate is as follows:

$398,760 Net Requirements for FY 1999-00 (Debt Service less prior year adjustments)

(21,367) Projected Unsecured Property Tax revenues for FY 1999-00*

$377,393 Projected Net Debt Service Requirements to be Financed by a Levy on Secured Property for FY 1999-00

$377,393

                                    = Tax Rate of $.004170

($9,051,214,731**/$100)

* Unsecured revenues are calculated applying the prior year secured tax rate to current year assessed valuation of unsecured property. (.004273 x $500,037,502)

** Reflects total City secured assessed valuation for FY 1999-00 adjusted to reflect projected delinquent parcels.

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