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<br />R,EPORT <br /> <br />6.2A <br />Page 1 <br /> <br /> <br />June 16,2008 <br /> <br />SUBJECT <br />Annual Tax Levy for the Redwood Shores Traffic Improvement District <br /> <br />RECOMMENDATION <br />Adopt a resolution authorizing the levy of special taxes for FY 2008-09 in the amount of <br />$853,720.34 on the parcels within Redwood City Community Facilities District 99-1 <br />(Shores Traffic Improvement District) to be used to pay the principal and interest <br />payments on bonds issued to finance certain transportation system improvements <br />within the district. <br /> <br />BACKGROUND <br />In 1999, the City Council established the Shores Traffic Improvement District (STID) <br />pursuant to the Mello-Roos Community Facilities Act of 1982 and authorized the <br />issuance of up to $13,535,000 in bonds to finance transportation improvement projects <br />in the Redwood Shores area. No general fund resources or commitments support <br />these bonds. These bonds are secured only by the real property within the district. The <br />parcels that comprise the district are exclusively commercial properties in the Redwood <br />Shores area; no residential properties are part of the district. <br /> <br />The first of two planned series of bonds were issued in January 2001 in the amount of <br />$5,045,000. This bond issue financed traffic improvements at several intersections in <br />Redwood Shores. The second and final bond issue in the amount of $7,505,000 was <br />issued in the fall of 2003 to finance the reconfiguration of the Ralston Avenue/Marine <br />Parkway/U.S. 101 interchange. Accordingly, the total amount of bonds issued was <br />$12.550,000. <br /> <br />During the district formation proceedings, the City Council committed to levying annual <br />special property taxes on the district property owners in an amount sufficient to pay for <br />all principal, interest, and administration costs. The resolution presented to Council this <br />evening will provide the county auditor authority to levy these taxes in FY 2007/08. <br /> <br />As of May 31. 2008, $11,630,000 of principal remained outstanding. These bonds will <br />be completely paid off on September 1. 2033. <br /> <br />ALTERNATIVES <br />The Council could elect not to levy these taxes. Doing so would jeopardize the district's <br />ability to make principal and interest payments to bondholders and would likely cause a . <br />default on the outstanding bonds. <br /> <br />FISCAL IMPACT <br />No general fund resources are involved in supporting the district. All of the district's <br />expenditures will be paid by the property owners within the district. <br />