TITLE
Recommendation to adopt resolution establishing an annual special tax of $0.14 per square-foot for Community Facilities District No. 2007-2 for commercial properties in Belmont Shore for Fiscal Year 2021, and authorizing the Los Angeles County Auditor-Controller to be included on the 2020-21 Secured Tax Roll. (District 3)
DISCUSSION
On August 5, 2008, the City Council approved and adopted the formation of Community Facilities District 2007-2 (CFD 2007-2) in the area of Belmont Shore to allow for bond issuance, property acquisition, and to confirm district boundaries. In December 2009, the City issued bonds under CFD 2007-2, which repaid parking bonds and pledged parking meter revenues to the CFD 2007-2 bond.
It is recommended that the CFD 2007-2 assessment rate be set at $0.14 per square-foot of commercial property in the Fiscal Year 2021 (FY 21), unchanged from FY 20. From FY 06 to FY 18, the levy had been set at $0.12 per square-foot of commercial property. In FY 19, the levy was increased to $0.15, an increase of $0.03 per commercial property square-foot to cover projected operating costs, and consultant and trustee fees. In FY 20, updated projections showed an assessment rate of $0.14, a decrease of $0.01 per commercial square-foot, would suffice to cover operating costs, and consultant and trustee fees. The attached Resolution authorizes the City to establish the special tax levy.
This matter was reviewed by Deputy City Attorney Amy R. Webber on June 16, 2020 and by Budget Analysis Officer Julissa José-Murray on June 26, 2020.
TIMING CONSIDERATIONS
City Council action is requested on July 14, 2020, as the Los Angeles County Auditor-Controller requires receipt of the assessment roll by July 31, 2020.
FISCAL IMPACT
The CFD 2007-2 levy is estimated to generate $68,865 in FY 21. Assessment revenue and a transfer of $200,000 in parking revenue generated in CFD 2007-2 are pledged for the payment of CFD 2007-2 debt service and administrative costs. The assessment revenue will be deposited in the Agency Special Assessment Fund Group in the Community Facility District Department. There is no impact to the General Fund Group and no local job impact is associated with this recommendation. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER