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<br />6: .f3LJ-1 <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />June 20, 2005 <br /> <br />Subject <br />Annual Tax Levy for the Shores Traffic Improvement District <br /> <br />R ecomme ndatlon <br />It is recommended that the City Council acting as the legislative body of the Community <br />Facilities District No. 99-1 adopt a resolution authorizing the levy of special taxes for FY <br />2005/06 in the amount of $1,006,239.91 on the parcels within Redwood City Community <br />Facilities District 99-1 (Shores Traffic Improvement 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 issuance <br />of up to $13,535,000 in bonds to finance transportation improvement projects in the <br />Redwood Shores area. No general fund resources or commitments support these bonds. <br />These bonds are secured only by the real property within the district. The parcels that <br />comprise the district are exclusively commercial properties in the Redwood Shores area; <br />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. . <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 all <br />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 2005/06. <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. <br />e(?;{tp ~e paid by the property owners within the istrict <br /> <br /> <br /> <br />Brian Panty Edward Everett <br />Director of Finance and Financial Planning City Manager <br /> <br />All of the district's <br /> <br />