HomeMy WebLinkAboutAgenda Bill 3.D 08/02/2010/W~ p, r~ Lr~
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DATE: August 2, 2010
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TO: ~ Honorable Mayor and Councilmembers through City Manager
FROM: Sandra Sato, Interim Finance Director
SUB7ECT: Resolution Setting 2010-2011 Annual Assessment District Administrative Rates
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RECOMMENDATION:
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It is recommended that the .City Council adopt the attached resolution setting 2010-2011 annual
assessment district administrative rates.
BACKGROUND.:
Since 1987 the City has charged assessment districts adrriinistrative fees, as allowed by State
law. The assessment districts include:
®: AD 23, formed in 1'.995 for Redwood Business Park 3, construction and improvements
' to North McDowell .Blvd.; bridge over Willow Brook Creek; road improvements on Old
i Redwood Highway; utility improvements;, and, widening Willow Brook Creek.
o AD 24, formed in 1:996 for Lakeville Highway Road Improvements, street
improvements; storm drain irriprovements; traffic signalization; landscaping; and, right-
of-way acquisition.
• AD 25, formed in 1.997 for M'cNear 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, distri'ets~ 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
reconciliatian "for AD accounts and audit work related to the districts and the related bonds.
Agenda Review: Dept. Director City Attorney/ `Finance Director 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 payrrient.for the year andtherefore have decreased very slightly (less than 1/10 of
1 %) from the previous year. The fee for AD 23 remains the same from year to year.
Total Administrative Fees to be collected frorn-all Assessment Districts will be $18,203.
ATTACHMENTS
1. Resolution Setting FY 20'10-2011 Annual Assessment Adtn~inistrative Rates
2. ~ Exhibit A -Schedule of Adrni~nistrative Rates by Assessment District
ATTACHMENT 1
RESOLUTION SETThNG 20.10-2011 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
2010-2011, 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.
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ATTACHMENT 2
EXHIBIT A
CITY OF PETALUMA, CA
ANNUAL ASSESSMENT FOR ADMINISTREATIVE RATES FOR
TAX ROLL YEAR 2010-2011
*maximum 2010-11
tax code threshold assessment
Assessment District # 23 80010 $ 8,800 $8,800
Redwood Business Park III
Assessment District # 24 76501 $ 12,800 $5,504
Lakeville Highway Improvements
Assessment District # 25 92801 NA $3,899
McNear Landing
Total
$18,203
* the administrative fee is.calculated at 3% of the annual debt service payments.
the maximum threshhold i the amount that the fee may not exceed
The fees for AD 24 and AD 25 are-based on a percentage of the debtservice payment for the year and
therefore have decreased very slightly (less than 1/10 of 1%) from the previous year. The fee for AD 23
renia`iris the same from year to year.
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