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'CIT~ OF SAN .BRrQRDINO ,.RBGUl:ST ~ COUNCIL ,ACTION
,
From:
CRAIG A. GRAVES, City Tr~MUib""Advancement of funds for July
~ond payment for Assessment
OFFICE OF THE CITY TREAS.allN -9 AM II: 3bistrict #5861
~
June 9, 1988
Dept:
Date:
Synopsis of Previous Council ection:
March 1987 - Mayor and Common Council authorizes the hiring of Sabo &
Deitsch to initiate foreclosure proceedings on deliquent
property owners on Assessment District #5861 Bond payments
December 1987 - Mayor and Common Council authorize adv~ncement of funds
from Assessment District Fund for January, 19.8 ~ayment
of interest on bonds for Assessment District #5861
March 1988 - Mayor and Common Council authorize acquisition of seventy-
eight lots in Assessment District #5861 through sale of
County Treasurer/Tax Collector through the City's
Community Development Department
Recommended motion:
That the Director of Finance be authorized to advance $80,000 to the
Debt Service Account of Assessment District #5861, to be refunded to the
City at the completion of the property transactions.
cc: Andrew Green, Finance
Ken Henderson, Communit
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Contact person: Crai A. Graves
Phone: 5221
FUNDING REQUIREMENTS:
Amount: $80.000
Advance
Ward: Sixth
Source: To Be Determined
Supporting data atteched: Yes
Finance:
Council Notes:
75-0262
Agenda Item No. ~5
CIT~ OF SAN BERaRDINO - REQUEST )lOR COUNCIL ACTION
STAFF REPORT
Assessment District .5861 is an assessment district formed to provide
offsite improvements where 1913/15 Act Bondl;l were sold to,finance the
construction. Bond payments are made .in.]anuary and July of each year.
This district was formed in 1980 to assist with the development of
200 single family homes off of California Street and 16th Street.
The development was plagued with many problems and the holders of
the construction loans finally foreclosed on the homes and lots.
There are presently 123 homes and 77 vacant lots in the project. On
all of the vacant lots and a few of the ~ome~ we have deliquent bond
payments dating back to the beginning of the project.
The City had been able to keep the bondholders current by using the
ReserveF\lnd and excess Construction Funds to make timely Bond payments.
rhese funds were exhausted last fall and ~he Mayor and Common Council
authorized the advancement of funds from the Assessment District Fund
in December of 1987 to make the January 1988 payment.
In authorizing those funds, the Mayor and Common Co~ncil made it an
advance to be repaid at time the property is bought during foreclosure
or during a transaction with a developer chosen through an RFP.
In March of 1987, the Mayor and Common Council authorized Sabo & Dietsch
to begin foreclosure proceedings. However, in March of 1988, the City
was notified that the parcels would be put up for sale by the County
of San Bernardino for delinquent property taxes. The Mayor and Common
Council authorized the purchase of the lots at the sale under
California Revenue and raxation Code Sections 3695 and 3791.3 through
the Community Development Department. The City is now waiting for
the County to complete all of their respective procedures before we
obtain title to the property. Once the City gains title it can proceed
with the publication of its RFP and then accept the best proposal
from the development community.
In the interim, the July 1988 interest payment to the bondholders will
be due. Therefore, this Office is seeking an authorized advance in
order to make timely payment with this advance to repay t'he': 'appro-:,'. '
priate fund at the completion of the transaction.
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