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<br />'OA"~ <br /> <br />City Financial Responsibility <br /> <br />The bonds are limited obligations of the City. The City's only financial responsibility will be <br />to remit the special taxes received from the County of San Mateo to the fiscal agent and, <br />under certain conditions, authorize the advancement of funds from the debt service reserve <br />fund to the bondholders. Under no circumstances is the City committing to the <br />expenditure, loan, or advancement of any City-controlled funds other than those special <br />taxes collected from the property owners within this district. <br /> <br />Future Actions <br />Included on tonight's agenda is the first reading of an ordinance of the City levying a <br />special tax within the District in order to repay bonds sold by the District. Pursuant to the <br />ordinance, the Finance Director is directed to prepare annually, without further action of <br />the City Council, a special tax roll for the District and to transmit the special tax roll annually <br />to the County Auditor for placement on the secured property tax roll of the County. <br /> <br />The Council will be asked to adopt this ordinance at its next meeting after the second <br />reading of the ordinance. <br /> <br />Fiscal Impact <br />If bonds are not sold, a deposit previously paid by the developer will pay for all costs <br />associated with creating the District. <br /> <br />If bonds are sold, the City will reimburse the developer's deposit from the proceeds of the <br />bonds. In addition, the City will incur annual bond trustee fees, annual rebate calculation <br />fees, audit expenses and administrative costs associated with classifying properties within <br />the District, calculating the annual special tax levies for taxable parcels within the District <br />and preparing and transmitting to the County a list of special tax levies to be placed on the <br />secured tax roll. These costs will be recovered from the property owner or owners from <br />the proceeds of special taxes collected by the County. The finance department might incur <br />indirect costs to manage these activities that may not be recovered with charges to the <br />administrative budget of the district. This amount would likely be immaterial to the finance <br />department's overall budget. <br /> <br />fI! !?~ <br /> <br />Brian Ponty <br />Director of Finance and Financial Planning <br /> <br />¡} leuli <br /> <br />Edward Everett <br />City Manager <br /> <br />Attachment <br />Attachment A: Description of Principal Documents <br /> <br />All final bond documents are in the City Clerk's office for review. <br />