TITLE
Recommendation to adopt resolution to declare the results of a special election within the City of Long Beach Community Facilities District No. 2007-2 (Belmont Shore) and to suspend further actions to levy a special tax in the District. (District 3)
DISCUSSION
In 1988, the City Council formed the City of Long Beach Community Facilities District No. 1 (Belmont Shore) (CFD 1) to provide a means to finance parking improvements in the Belmont Shore area of the City.
In 2008, the Parking Commission identified an additional parking lot located at 189 Park Avenue and alleyway improvements that would enhance parking in the area. CFD 1 does not have the clear authority to fund these new improvements. City Staff, working with various financial and legal consultants, determined that the most efficient and economical way to provide funds for the new improvements was for the City to form a new Community Facilities District (CFD) under the authority of the City's Special Tax Financing Improvement Law, with boundaries (that set forth the area to be taxed by the CFD) the same as those for CFD 1 and with maximum tax rates the same as for CFD 1, for the express purpose of financing the purchase of the parking lot, refinancing the 1993 bonds and allowing for possible future financing of additional parking improvements.
On November 13, 2007, the City Council adopted two resolutions of intention to establish the new CFD No. 2007-2 (Belmont Shore), approve the boundaries for the proposed CFD, determine the rate and method of apportionment of special taxes to be levied in the new CFD, and initiate proceedings to levy the special tax in the proposed CFD, including calling for a public hearing on December 11, 2007 regarding the formation of the CFD. RES-07-1309, declared the intention of the City Council for the CFD to have a maximum bonded indebtedness of $5.8 million, and also called for a public hearing on December 11, 2007 regarding the necessity to incur bond indebtedness for the CFD.
On December 11, 2007, the City Council held a public hearing regarding the formation of the CFD and the issuance of bonds for the CFD. Following the public hearing, the City Council adopted RES-07-0166 forming the CFD, RES-07-0167 determining the necessity to incur bonded indebtedness for the CFD, and RES-07 -0168 calling for a special election of the owners of property in the CFD for March 3, 2008, with respect to the establishment of the CFD and the levy of special taxes on property in the CFD, the issuance of bonds for the CFD and the establishment of the appropriations limit for the CFD. On February 11, 2008, the City Clerk mailed ballots to the owners of property in the CFD as identified in the County Assessor's records and, following that date, a few corrected ballots were mailed to persons providing evidence of ownership in the CFD.
The election was concluded on March 3, 2008, and on March 4, 2008, the City Clerk tabulated the ballots cast in the election. The City Clerk determined that less than two-thirds of the votes cast in the election (and not disqualified) were in favor of the ballot propositions. Section 3.52.5220B. of the City's Special Tax Financing Improvement Law provides that, after the canvass of returns in an election for a CFD, the City Council shall take no further action with respect to levying the special tax within the CFD for six months from the date of the election, if the question of levying that special tax fails to receive approval by two-thirds of the votes cast upon the question posed in the election.
The City Council is now requested to adopt a Resolution declaring the results of the election and, as required by the City's Special Tax Financing Improvement Law, directing that no further action be taken with respect to levying the special tax within the proposed CFD at this time.
This item was reviewed by Assistant City Attorney Heather A. Mahood on April 8, 2008 and Budget Management Officer Victoria Bell on April 3, 2008.
TIMING CONSIDERATIONS
City Council action on this item is requested on April 15, 2008, to officially inform the property owners in the CFD of the results of the election.
FISCAL IMPACT
There is no fiscal impact to the City associated with the requested action. All expenses related to the proposed formation of the CFD and the March 3rd election will be funded from the Belmont Shore Parking Revenue Fund.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH DECLARING RESULTS OF SPECIAL ELECTION, AND SUSPENDING ACTIONS WITH RESPECT TO SPECIAL TAX LEVIES THEREIN
Respectfully Submitted,
Lori Ann Farrell
Director of Financial Management/CFO
Heather A. Mahood
Assistant City Attorney
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PATRICK H. WEST |
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CITY MANAGER |