HomeMy WebLinkAboutStaff Report Item 3.C 10/7/2013 r, A�-e'Y WWV l teivw#8 C
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DATE: October 7,2013
TO: Honorable Mayor and Members of the.City Council through City Manager
FROM: William Mushallo, Finance Director
SUBJECT: ResolutionSetting 2013-2014 Annual Assessment:District Administrative Rates
RECOMMENDATION
Itis recommended that Council adopt the attached resolution setting 2013-2014 annual
assessment district administrative rates.
BACKGROUND
Since 1987 the City has charged assessment districts administrative fees, as allowed by State
law. The assessment districts_include:
• AD 23, formed in 1995 for Redwood Business Park 3, construction and improvements
to North McDowell Blvd:; bridge over Willow Brook Creek; road improvements on Old
Redwood Highway, utility improvements; and widening Willow Brook Creek.
• AD 24, formed in 1996 for Lakeville Highway Road Improvements, street
improvements; storm drain improvements; traffic signalization; landscaping; and, right-
of-way acquisition.
• AD 25, formed in 1997 for McNear Landing various grading; pavement; curb and
gutter; street lights; traffic: striping and signs; walkways; landscaping, irrigation and
lighting; and, water and sanitary sewer mains.
DISCUSSION:
Administrative fees are charged to assessment districts to recover costs incurred by the City
related to the accounting and administration of the assessment district bonds. These include the
following direct costs: Sonoma County collection fees, paying agent fees, disclosure fees and
allocation of audit fees. These also include staff time for preparation and payment of debt
service, work related to pay-offs and bond calls, allocation of investment income, bank
reconciliation for AD accounts and audit work related to the districts and the related bonds.
Agenda Review:
City Attorney " A,,,, Finance I. • City Manager
FINANCIAL;IMPACTS
The administrative fees that will be collected by the County, from the assessment district
property owners, will be utilized by the City to offset costs incurred in connection with the
administration of the districts. The fees for AD 24 and AD 25 are based on a percentage of the
debt service payment for the year The AD 24 rate will decrease slightly (by 1.5%) and the AD
25 rate will decrease slightly (by 1.3%). The fee for AD 23 remains the same from year to year.
Total Administrative Fees to.be collected from all the Assessment Districts will be $18,226.
ATTACHMENTS
I. Resolution Setting FY2013-2014 Annual Assessment.Administrative Rates
2. Exhibit A— Schedule of Administrative Rates by Assessment District
ATTACHMENT 1
RESOLUTION'SETTING 2013=2014 ANNUAL ASSESSMENT DISTRICT
ADMINISTRATIVE;RATES
WHEREAS, the City Council has,heretofore'confirmed as assessment for improvements in the
assessment districts the assessments !listed in the attached Exhibit A, including a maximum
annual assessment to reimburse the City for costs in administering the assessments, the funds
derived there from and the bonds secured thereby,
WHEREAS, the annual assessment for administrative costs' is hereby set for each assessment
districted listed in Exhibit A, and shall be collected on,the County tax roll for the fiscal year
2013-2014, until changed by resolution of this City Council,
WHEREAS, the annual assessment shall be spread and applied to the assessed parcels in the
same manner as the original assessment,
NOW, THEREFORE BE IT RESOLVED, that the City Council finds that the total annual
assessment for each Assessment District listed in Exhibit.A, including the Assessment District
administrative fees adopted by this resolution does not exceed the maximum annual assessment
adopted in the engineer's report'., for each such Assessment District, and that the annual
administrative assessment is a reasonable estimate of the administrative costs to be incurred.
EXHIBIT A
CITY OF PETALUMA, CA
ANNUAL ASSESSMENT FOR ADMINISTREATIVE RATES FOR
TAX ROLL YEAR 2013-2014
*maximum 2013-14
tax code threshold assessment
Assessment District # 23 80010 $ 8,800 $8,800
Redwood Business Park III
Assessment District # 24 76501 $ 12,800 $5,489
Lakeville Highway Improvements
Assessment District # 25 92801 NA $3,937
McNear Landing
Total $18,226
* The administrative feeds calculated at 3% of the annual debt service payments.
The maximum threshhold is the amount that the fee may not exceed