HomeMy WebLinkAboutStaff Report 3.B 9/8/2014DATE: September 8, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: William Musliallo, Finance Director (;32,—. --
SUBJECT: Resolution Setting 2014-2015 Annual Assessment District Administrative Rates
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution setting 2014-2015 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 Creel:; 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
ight-
ofway 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:
Cite Attorney Finance Direc Q Cjll ManageC f--� y r
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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%) and the AD 25
rate will decrease slightly (by 1.6%). 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 $18,109.
ATTACFIMLNTS
1. Resolution Setting FY 2014-2015 Aminal Assessment Administrative Rates
2. Exhibit A — Schedule of Administrative Rates by Assessment District
ATTACHMENTI
RESOLUTION SETTING 2014-2015 ANNUAL ASSESSMENT DISTRICT
ADMINISTRATIVE RATES
WHEREAS, the City Council has heretofore confirmed an assessment for improvements in the
assessment districts as listed in the attached Exhibit A, including a maximum annual assessment
to reimburse the City for costs in administering the assessments, the funds derived therefrom and
the bonds secured thereby; and
WHEREAS, the annual assessment for administrative costs is hereby set for each assessment
district listed in Exhibit A, and shall be collected on the County tax roll for the fiscal year 2014-
2015, until changed by resolution of this City Council; and
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 ADMINISTRATIVE RATES FOR
TAX ROLL YEAR 2014-3015
Total $18,109
The administrative fee is calculated at 3% of the annual debt service payments.
The maximum threshhold is the amount that the fee may not exceed
'maximum
2014-15
tax code
threshold
assessment
Assessment District # 23
80010
$ 8,800
$8,800
Redwood Business Park III
Assessment District # 24
76501
$ 13,800
5,434
Lakeville Highway Improvements
Assessment District # 25
92801
NA
3,875
McNear Landing
Total $18,109
The administrative fee is calculated at 3% of the annual debt service payments.
The maximum threshhold is the amount that the fee may not exceed