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<br />8A <br />Page 1 <br /> <br />REPORT <br /> <br />. <br /> <br />. <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />July 10,2006 <br /> <br />Subject <br />Bond Service Tax Rates - 2006-2007 General Improvement District 1-64 <br /> <br />Recommendation <br />It is recommended that the attached ordinance setting the tax rates for General <br />Improvement District No. 1-64 be introduced. <br /> <br />Background <br />The Finance Department has computed the tax rates required for bond interest and <br />redemption in General Improvement District 1-64, using the Assessment Roll for the <br />District as equalized by the City Council sitting as the Board of Equalization. <br /> <br />Assessed values compared to prior fiscal years <br /> <br />2006-07 <br /> <br />Incr/(Decr) <br /> <br />2003-04 <br /> <br />2004-05 <br /> <br />2005-06 <br /> <br />Land $517,048,912 $523,470,912 $ 595,413,162 $ 684,189,412 <br />Improvements 548,847,750 571,039,000 585.147.750 611,662,750 <br />Total $1,065.896,662 $1,094,509,912 $1,180,560,912 $1,295,852,162 <br /> <br />14.91 % <br />4.53% <br />9.77% <br /> <br />Appraised values have increased due to a general increase in residential and commercial <br />property values. <br /> <br />The recommended tax rates for bond service costs per $100 assessed valuation compared <br />to prior years are: <br /> 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 <br />Reclamation <br />Bonds 0.1139 0.1362 0.1272 0.1241 0.1077 0.0000 <br />Facility <br />Bonds 0.1230 0.1359 0.1278 0.1245 0.1139 0.1085 <br /> <br />The recommended 2006-2007 tax rate for Reclamation Bonds is 100% lower than in the <br />previous year due to a proposed tax holiday. Staff recommends a tax holiday for the <br />Reclamation Bonds as there are sufficient funds available in the Reclamation Bonds Debt <br />Service Fund to cover the estimated debt service expenditures from 2006-07 to the final <br />debt service maturity scheduled for July 1, 2008. Staff also recommends that the 2006-07 <br />assessment for the Facility Bonds be the last assessment as there are sufficient funds <br />available in the Facility Bonds Debt Service Fund to cover future debt service expenditures <br />through the final maturity date of July 1 2008. The GID 1-64 Facilities Fee Management <br />Committee has been informed of the planned tax holiday. The recommended rate for the <br />Facility Bonds is 4.74% lower. The lower rates for the current year Facility Bonds are due <br />