HomeMy WebLinkAboutStaff Report 08/01/2011 3.B DATE: August 1, 2011
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City Manager
SUBJECT: Resolution Setting 2011 -2012 Annual Assessment District Administrative Rates
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution setting 2011 -2012 annual
assessment district
administrative rates.
BACKGROUND
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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 Lakevi11e Highway Road Improvements, street
improvements; storm drain improvements; traffic signalization; landscaping; and, right
of -way acquisition.
e 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
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g administration
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related'to the accountn and.; of the assessment district bonds. These include the
following irect costs: Sonoma Count collection fees, paying agent fees, disclosure fees and
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allocation of audit fees. These also include staff time for preparation and payment of debt
service, 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 Finance Director City Manager
FINANCIAL IMPACTS
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The administrative fees that will be collected b y the County, from the di strict
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 and therefore, have increased very slightly (less than 1/10 : o f ` .'
. , 1%) from the previous year. 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 $18,297.
ATTACHMENTS
1. Resolution and Schedule of Administrative Rates by Assessment District
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ATTACHMENT 1
RESOLUTION SETTING 2011 - 2012 ANNUAL ASESSMENT DISTRICT
ADMINISTRATIVE RATES
WHEREAS, the City Council has heretofore confirmed as assessment for iimrovements
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
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`.•, derived therefrom and the •bonds secured thereby; and
WHEREAS, the annual assessment for administrative costs is hereby set for each
assessment in Exhibit A, and shall be collected on the County tax roll for the
fiscal year 2011-2012, ntill 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 forr 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 PETALUIVIA, CA
ANNUAL ASSESSMENT FOR .ADMINISTRATIVE,RATES FOR
TAX "ROLL YEAR 2011-2012
*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 $5,469
Lakeville Highway Improvements;
Assessment District # 25 92801 NA $4,028
McNear Landing
Total $18,297
* 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
therefore have increased very slightly ba � less than1 /1'0 of 1 %) of
from he previous year. The fee for AD 23
tr ry. P 3
• remains the sarne;` ri year to;year:
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