AgdaPkt 2007-06-18 - Laserfiche WebLink

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6.2A ` ; ; age '�►�� : , ► � '` '�' , . , �'o#��r��ra�e-�Ul��r��nd ��u�nc�l, ��'�r-�� l�r�� er June 18, 2007 SUBJECT Annual Tax Levy for the Redwo�d Shares Traffic Improvement Dis#rict RECOMMENQATION Adapt a resolution authorizing the ievy of special taxes for FY 2007/08 in the amaunt of $845.694.04 on the parcefs within Redwood City Community Facilities District 99-1 {Shores Traffic Jmprovement District) to �e used to pay the principal and interest payments on bonds issued to finance certain transportation sys#em improvements within the district. BACKGROUND In 1999, the Gity Council established the Shores Traffic Improvement District {STID) pursuant to the Melio-Raos Community �aciEities Act of 1982 and au#horized the issuanEe of up to $93,535,000 in bonds to finance trans�ortation impravement prajects in the Redwood Shores area. No general fund resources or commitments support these bonds. Thes� bo�ds are secured anly by tlze real property within the distri�t. The parcels that comprise the district a�e exclusively commerciaf properties in the Redwood Shores area; no residential properties are part of the district. The first of two pEanned se�ies of bonds were issued in January 2001 in the amount of $5,045,000. This bond issue #inanced tra�c improvemen#s at several intersections in Redwood Shores. The secand and final bond issue in the amount af $7,505,000 was iss�ed in the #all of 2003 to #+r�ar�ce the reconfigura#ion of the Ralston Aver��/Mar�ne Parkway/U.S. 101 interchange. During the district formation proceedings, the City Counci( committed to levying annual special property taxes on #he districfi property owners in an amount sufficient to pay far all principal, interest, �nd administration costs. The resolution presented to Council this evening wili provide the county auditor authority to levy these taxes in FY 2007/08. As of May 31, 2007, $91,845,000 af principal remained outstanding. These bonds will be compietely paid off on September 9, �033. ALTERNATIVES The Council could elect not to levy these taxes. Doing so would jeopardize the dis#ricYs abili#y to make principal and interest payments to bondholders and would likely cause a defauit on the outstanding bonds. FISCAL IIVIPACT No general fund resources are involved in supporting the district. All of the district's expenditures will be paid by the property owners within the district.