HomeMy WebLinkAboutNB1- Finance CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From: BARBARA PACHON, Subject: ESTABLISHING ANNUAL SPECIAL TAX FOR
DIRECTOR OF FINANCE COMMUNITY FACILITIES DISTRICT NO. 995
Dept: FINANCE FOR FISCAL YEAR 1996-97
Date: JULY 18, 1996
Synopsis of Previous Council action:
7/27/95 Resolution No. 95-258 adopted establishing annual special tax for FY 1995-96
8/4/94 Resolution No. 94-226 adopted establishing annual special tax for FY 1994-95
Entered into Record at f
CouncillCmyDevCms Mtg:
Recommended motion: by
re Agenda Item < ;
Adopt Resolution
City ClerklCDC Secy
City of San Bernardino
s
Y
Signature
-ontactperson: BARBARA PACHON, DIRECTOR OF FINANCE Phone: ext. 5242
Supporting data attached: Ward:
=UNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
Acct. Description)
R
Finance: -
;ouncil Notes:
Oe5z S C C-
'5-0262 Agenda Item No. 1V,6I
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
Community Facilities District (CFD) No. 995 was originally formed
in 1990 to finance the payment of all or a portion of the
infrastructure development fees pertaining to the Verdemont Area.
In August 1994, the CFD 995 was refinanced to help mitigate a large
delinquency rate being experienced in the District .
As part of the refinancing of CFD 995, the City entered into
Settlement Agreements with delinquent Developers . In the
Settlement Agreements, the Developers agreed to make payments of
the delinquent taxes, interest thereon, and miscellaneous costs in
equal payments over a term of five years beginning June 1, 1995 .
As of July 6, 1995, the City has not received any payments from the
Settlement Agreements . Bond Council has begun to take appropriate
action against the Developers for non-payment of the -settlement
agreement .
Attached is the proposed FY 1996-97 annual assessment levy and
resolution authorizing the levy be placed on the tax rolls .
The annual assessment per residential unit has only increased by
the annual inflation factor of 1 o as set in the bond documents .
The annual assessment per undeveloped property has increased to
approximately 390 of the maximum Special Tax as required in the
bond documents when insufficient payments are received from the
Settlement Agreements .
If insufficient payments of the FY 96-97 CFD 995 levy assessments
are made, the Bond Reserve Fund will have to be used to cover debt
service payments . It is estimated at most $194 , 000 of the Reserve
Fund would have to be used. If the reserve fund is used, it will
be replenished by either Settlement Agreement payments, funds
received from sale of foreclosed property or increased Special
Taxes on the undeveloped properties for FY 97-98 .
Staff recommends that the resolution establishing the annual
special tax for FY 1995-96 for CFD 995 be approved.
I RESOLUTION NO.
2 A RESOLUTION OF THE CITY OF SAN BERNARDINO COMMUNITY
FACILITIES DISTRICT NO. 995 ESTABLISHING ANNUAL SPECIAL TAX FOR
3 FISCAL YEAR 1996/97.
4
5 WHEREAS, the Mayor and Common Council of the City of San
6 Bernardino (hereinafter referred to as the "legislative body" ) ,
7 has initiated proceedings, held a public hearing, conducted an
8 election and received a favorable vote from the qualified electors
9 relating to the levy of a special tax in a community facilities
10 district, all as authorized pursuant to the terms and provisions
11 of the "Mello-Roos Community Facilities Act 'of 198211 , being
12 Chapter 2 . 5, Part 1, Division 2, Title 5 of the Government Code of
13 the State of California. This Community Facilities District shall
14 hereinafter be referred to as "District" and,
15 WHEREAS, this legislative body, by Ordinance as authorized by
16 Section 53340 of the Government Code of the State of California,
17 has authorized the levy of a special tax to pay for costs and
18 expenses related to said Community Facilities Districts, and this
19 legislative body is desirous to establish the specific rate of the
20 special tax to be collected for the next fiscal year.
21 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
22 COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS :
23 Section 1 . That the above recitals are all true and correct .
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1 Section 2 . That the specific rate and amount of the special
2 tax to be collected to pay for the costs and expenses for the next
3 fiscal year (1996-1997) for the referenced District is hereby
4 determined and established to set forth in the attached,
5 referenced and incorporated Exhibit "A" .
6 Section 3 . That the rate as set forth above does not exceed
7 the amount as previously authorized by Ordinance of this
8 legislative body, and is not in excess of that as previously
9 approved by the qualified electors of the District .
10 Section 4 . That the proceeds of the special tax shall be
11 used to pay, in whole or in part, the costs of the following:
12 A. Payment of principal of and interest on any outstanding
13 authorized bonded indebtedness;
14 B. Necessary replenishment of bond reserve funds or other
15 reserve funds;
16 C. Payment of costs and expenses of authorized public
17 facilities;
18 D. Repayment of advances and loans, if appropriate .
19 E. Payment of District administrative costs .
20 The proceeds of the special taxes shall be used as set forth
21 above, and shall not be used for any other purpose .
22 SECTION 5 . The special tax shall be collected in the same
23 manner as ordinary ad valorem property taxes are collected, and
24 shall be subject to the same penalties and same procedure and sale
25 in cases of any delinquency for ad valorem taxes, and the Tax
26 Collector is hereby authorized to deduct reasonable administrative
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1 costs incurred in collecting any said special tax.
2 Section 6 . All monies above collected shall be paid into
3 Community Facilities District funds, including any bond fund and
4 reserve fund.
5 Section 7. The Auditor of the County is hereby directed to
6 enter in the next County assessment roll on which taxes will
7 become due, opposite each lot or parcel of land effected in a
8 space marked "public improvements, special tax, " or by any other
9 suitable designation, the installment of the special tax, and for
10 the exact rate and amount of said tax, reference is made to the
11 attached Exhibit "A" .
12 Section 8 . The County Auditor shall then, at the close of
13 the tax collection period, promptly render to this Agency a
14 detailed report showing the amount and/or amounts of such special
15 tax installments, penalties, interest and percentages so collected
16 and from what property collected, and also provide a statement of
17 any percentages retained for the expense of making any such
18 collection.
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j A RESOLUTION OF THE CITY OF SAN BERNARDINO COMMUNITY
FACILITIES DISTRICT NO. 995 ESTABLISHING ANNUAL SPECIAL TAX FOR
2 FISCAL YEAR 1996/97 .
3
4 I HEREBY CERTIFY that the foregoing resolution was duly adopted by
5 the Mayor and Common Council of the City of San Bernardino at a
6 meeting thereof, held on the day of ,
7 1996, by the following vote, to wit :
8 COUNCIL MEMBERS AYES NAYS ABSTAIN ABSENT
9 NEGRETE
10 CURLIN
11 ARIAS
12 OBERHELMAN
13 DEVLIN
14 ANDERSON
15 MILLER
16
17 CITY CLERK
18
The foregoing resolution is hereby approved this day of
19 1996 .
20
21 Tom Minor, Mayor
City of San Bernardino
22
Approved as to form
23 and legal content :
24 JAMES F. PENMAN
City Attorney
25
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By:
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EXHIBIT "A)' _
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