TITLE
Recommendation to adopt resolution establishing an annual special tax of $0.12 per square foot for Community Facilities District No. 1 for commercial properties in Belmont Shore for Fiscal Year 2010, and authorizing the Los Angeles County Auditor-Controller to include this levy on the 2009-10 Secured Tax Roll. (District 3)
DISCUSSION
In 1988, the City Council approved the formation of Community Facilities District No. 1 (District) under the guidelines of the Mello-Roos Community Facilities Act. The District provided for a levy against commercial properties along Second Street in Belmont Shore for the purpose of funding additional public parking. The Belmont Shore Parking and Business Improvement Area Commission (BSPBIA) recommends to the City Council the annual levy for the District. The City Council annually adopts a resolution establishing the special tax levy.
A levy was adopted for the three-year period beginning in Fiscal Year 1990 (FY 90) thru FY 92 at $0.12. The levy was suspended for one year in FY 93 and it was reestablished in FY 94. From FY 94 through FY 02, the rate was set at $0.06 per square foot. The City Council authorized the expenditure of funds collected from the levy to acquire and make improvements to a parking lot within the district in FY 95 and FY 96. From FY 03 through FY 05, the levy was set at $0.00.
During FY 05, the District's Map of Facilities and Description of Facilities were modified. These changes allowed the District to include all parking lots, alleys within the district, and expanded the district boundaries to allow district funds to be used with the Belmont Shore Parking Meter Revenue Area for parking improvements. For FY 06 through FY 09, the levy was set at $0.12.
In August 2008, City Council approved and adopted the formation of Community Facilities District 2007-2 (Belmont Shore). Due to market conditions, the City has not issued bonds under CFD 2007-2, which would have repaid 1993 Belmont Shore Parking Revenue Meter Revenue bonds. For this reason, the City is opting to levy under the CFD No. 1 authority until market conditions change to allow for the issuance of the new CFD 2007-2 (Belmont Shore) bonds.
At its meeting of June 18, 2009, the BSPBIA recommended that the levy again be set at $0.12 per square foot of commercial properties.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on June 22, 2009 and Budget and Performance Management Bureau Manager David Wodynski June 18, 2009.
TIMING CONSIDERATIONS
City Council action is requested on July 14, 2009, as the Los Angeles County AuditorController requires the assessment roll by July 31, 2009 or shortly thereafter.
FISCAL IMPACT
The District levy is estimated to generate $59,027 in FY 10. This amount will be budgeted as part of the FY 10 Budget in the Parking and Business Area Improvement Fund (SR 132) in the Department of Community Development (CD). There is no impact to the City's General Fund.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH ESTABLISHING ANNUAL SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO.1 (BELMONT SHORE) FOR FISCAL YEAR 2009-2010
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |