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6.3.A. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> May 6, 2013 <br /> SUBJECT <br /> Ordinance to allow Redwood Shores Community Facilities District to approve annual tax <br /> levy administratively without Council action <br /> RECOMMENDATION <br /> Waive First Reading and Introduce an Ordinance Amending Ordinance No. 2180 To <br /> Allow Redwood Shores Community Facilities District To Approve Annual Tax Levy <br /> Adm inistratively. <br /> BACKGROUND <br /> When the Redwood Shores Community Facilities District ("CFD") was established in <br /> 1999, staff proposed a conservative approach by including language in Ordinance 2180 <br /> that required the Council to approve the annual levy by means of a resolution. Since <br /> that time, staff has determined that staff may set these rates administratively and <br /> recently issued CFD bonds (Pacific Shores and One Marina) anticipating that the <br /> annual levy will be handled this way in the future. <br /> The proposed change will not affect the amount of the annual levy as staff will continue <br /> the follow the formula approved by the property owners when the CFD was established. <br /> ANALYSIS <br /> When these CFDs are formed the property owners approve a maximum annual levy. <br /> Provided that the annual levy falls under this maximum amount, these levies can legally <br /> be approved administratively without Council action provided the relevant ordinance is <br /> amended to reflect this authority. Therefore, in the interest of efficiency, staff <br /> recommends an amendment to Ordinance No. 2180 to allow the Redwood Shores CFD <br /> annual tax to be levied administratively without the need for Council action. <br /> Council Finance Committee <br /> The proposal to change the way in which the annual tax is levied was presented to the <br /> Council's Finance Committee at its February 25, 2013 meeting, at which time it directed <br /> staff to bring the report back to the full Council for consideration at a subsequent date. <br /> ALTERNATIVES <br /> The Council could decide not to amend Ordinance No. 2180 and instead require that <br /> City staff return to the Council annually to adopt the CFD tax levy, requiring additional <br /> expenditures of Council and staff time. <br /> FISCAL IMPACT <br />