AgdaPkt 2006-06-19 - Laserfiche WebLink

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6.2C REPORT Page 1 To the Honorable Mayor and GitYGtlUflpil From the City Mal'lClger June 19, 2006 Subject Annual Tax Levy for the Shores Traffic Improvement District Recommendation It is recommended that the City Council acting as the legislative body of the Community Facilities District No. 99-1 adopt a resolution authorizing the levy of special taxes for FY 2006/07 in the amount of $778,365.24 on the parcels within Redwood City Community Facilities District 99-1 (Shores Traffic Improvement District). Background In 1999, the City Council established the Shores Traffic Improvement District (STID) pursuant to the Mello-Roos Community Facilities Act of 1982 and authorized the issuance of up to $13,535,000 in bonds to finance transportation improvement projects in the Redwood Shores area. No general fund resources or commitments support these bonds. These bonds are secured only by the real property within the district. The parcels that comprise the district are exclusively commercial properties in the Redwood Shores area; no residential properties are part of the district. The first of two planned series of bonds were issued in January 2001 in the amount of $5,045,000. This bond issue financed traffic improvements at several intersections in Redwood Shores. The second and final bond issue in the amount of $7,505,000 was issued in the fall of 2003 to finance the reconfiguration of the Ralston Avenue/Marine Parkway/U.S. 101 interchange. During the district formation proceedings, the City Council committed to levying annual special property taxes on the district property owners in an amount sufficient to pay for all principal, interest, and administration costs. The resolution presented to Council this evening will provide the county auditor authority to levy these taxes in FY 2006/07. Alternatives The Council could elect not to levy these taxes. Doing so would jeopardize the district's ability to make principal and interest payments to bondholders and would likely cause a default on the outstanding bonds. Fiscal Impact No general fund resources are involved in supporting the district. All of the district's expendrture~ ,~I be paid by the property owners Withi~istr1' .---, I I ") ~ Ii f ~--,~~ /i ( // L--.- ... IJ ,i ,,/ i J \ ~ L ./r 0' f ' i r '/ ,II" Brian Ponty Edwa d Everett Director of Finance and Financial Planning City Manager ....__..._.Om....'