Item 7 - Tax Rate for South Poway Community Facilities Dist #1
- AGENDA REPORT SUMMARY --
- TO: Honorable Mayor and Members of the City Council
FROM: James L. Bo~ersox, City Man~
INITIATED BY: John D, Fitch, Assistant City HanagerCf,lt
Peggy A. Stewart, Director of Administ~ative servic~
DATE: August 8, 1995
SUBJECf: Tax Rate for the South Poway Community Facilities District No.1 for
FY 1995-1996
ABSTRACf
Under the covenants of the bonds for Community Facilities District No, 1, it is
necessary to hold a public hearing in order to establish the amount of the special tax
to be assessed on property within the District for fiscal year 1995-1996,
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA guidelines,
- FISCAL IMPACf
This action does not have a direct or indirect fiscal impact upon the City of Poway,
Property owners within Community Facilities District No.1 are delinquent in the
payment of the District's special taxes, In order to prevent a default on the bonds,
payment of the January 25, 1995 and August 2, 1995 debt service payments were funded in
part by a draw upon the District reserve funds totaling $1,307,999,65,
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Published in the Poway News Chieftain on July 27 and August 3, 1995,
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution establishing
$12,500 per net usable acre as the amount of the special assessment for property within
the South Poway Community Facilities District No, 1 for fiscal year 1995-1996,
ACfION
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- AGENDA REPOR1'
CITY OF POW A Y
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Man~ _:
INITIATED BY: John D. Fitch, Assistant City ManagerJI1
Peggy A, Stewart, Director of Administ ative Services
DATE: August 8, 1995
SUBJECT: Tax Rate for the South Poway Community Facilities District No, 1
for FY 1995-1996
BACKGROUND
In December 1985, the City Council approved the formation of the South Poway
Community Facilities District to provide for the issuance of special tax bonds to
finance the construction and acquisition of public improvements within the South
Poway Planned Community Area,
Initially, $30,000,000 in bonds were issued under the provisions of the Mello-Roos
Community Facilities Act of 1982 which authorized the levy of a special tax on the
property within the district boundary to service the debt on the bonds. Due to a
downturn in interest rates, it was determined that the developers of the Pomerado
Business Park (South Poway Community Facilities District No. I) could realize a
substantial savings if refunding bonds were issued to defease the original issue,
Therefore, on March 3, 1987 the City Council approved the issuance of $32,800,000 in
special tax refunding bonds.
On December 27, 1994, Cadillac-Fairview, parent company of C.F, Poway, Ltd., the
major developer for Community Facilities District No, 1, filed for Canadian
bankruptcy court protection to reorganize its outstanding debts, C.F, Poway failed
to pay the District special taxes for FY 1994-9S, which are necessary to secure the
debt service payment on the bonds. In order to prevent a default on the bonds,
payment of the January 25, 1995 and August 2, 1995 debt service payments were funded
in part by a draw upon the District reserve funds totaling $I,307,999,6S,
In the event of a delinquency on the tax payment, the City is required by bond
covenant to initiate judiCial foreclosure proceedings within 120 days of the
delinquency. The City Attorney's office has initiated and is proceeding with
foreclosure proceedings.
ACTION:
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AUG II 1995 ITEM 7 . .
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- Agenda Report
August 8, 1995
Page 2
FINDINGS
The amount of debt service to be paid during fiscal year 1995-1996 is $2,915,190,00,
plus a trustee administration fee to Bank of America in the amount of $20,000.00,
minus available interest earnings of $78,770,00, which normally would produce a net
amount of $2,856,420.00 to be collected on the tax roll for FY 1995-1996,
With the approval of Phase I and II of the Pomerado Business Park, 105 separate
parcels have been created, The total net usable acres within the district for these
105 taxable lots is 252.915, This would calculate to an assessment per net usable
acre of $11,294.00. Since reserve funds have been drawn upon, the maximum tax rate
per net usable acre increases to $12,500,00, which is a special tax to be collected
on each of the 105 parcels for FY 1995-96 as shown on the attached resolution.
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA
guidelines,
FISCAL IMPACT
This action does not have a direct or indirect fiscal impact upon the City of Poway,
Property owners within Community Facilities District No, 1 are delinquent in the
payment of the District's special taxes. In order to prevent a default on the
bonds, payment of the January 25, 1995 and August 2, 1995 debt service payments were
funded in part by a draw upon the District reserve funds totaling $1,307,999,65.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Published in the Poway News Chieftain on July 27 and August 3, 1995.
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution establishing
$12,500 per net usable acre as the amount of the speCial assessment for property
within the South Poway C~nity Facilities District No, 1 for fiscal year
1995-1996.
JLB:JDF:PAS:eg
Attachment:
Proposed Resolution Setting the Special Tax Rate for FY 1995-1996
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RESOLUTION NO. 95-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA,
SETTING THE SPECIAL TAX RATE AND
THE AMOUNT TO BE LEVIED ON PROPERTY WITHIN
THE SOUTH POWAY COMMUNITY FACILITIES DISTRICT NO. 1
FOR FISCAL YEAR 1995-1996
WHEREAS, the City Council of the City of Poway, California has approved the
formation of the South Poway Community Facilities District No, 1 pursuant to the
terms and provisions of the Mello-Roos Community Facilities District Act of 1982,
and
WHEREAS, the City Council by following the provisions set forth and said act
authorized the issuance of $32,800,000 in 1987 Special Tax Refunding Bonds, and
WHEREAS, Ordinance No. 182 provides for the annual setting of a special tax
rate amount to be levied on property within the District to service the principal
and interest due on the bonds.
NOW, THEREFORE, BE IT RESOLVED THAT the special tax necessary to be collected
on property within the District for fiscal year 1995-1996 is set as $12,500,00 per
net usable acre on property within the District and that the special tax shall be
spread on the 105 parcels totaling 2S2,91S net usable acres as follows:
Net Amount of
Lot Number APN Numbers Usable Acres Assessment
1 317-222-11 3,505 $ 43,812,50
2 317-222-12 3,210 40,125,00
3-1 317-225-01 2,040 25,500,00
3-2 317-225-16 1. 720 21,500,00
3-3 317-225-16 1.560 19,500.00
3-4 317-225-04 5.680 71 ,000, 00
3-4 317-225-05 2,180 27,250,00
3-6.1 317-225-10 0.366 4,575,00
3-6,2 317-225-11 0.344 4,300.00
3-7 317-225-06 0.510 6,375,00
3-8 317-225-07 0.490 6,125,00
4 317-225-12 6,339 79,237,50
5 317-225-13 2,133 26,662,50
3-9,1 317-225-17 0,710 8,875,00
3-9.2 317-225-18 0,610 7,625,00
3-10,1 317-225-14 0,700 8,750,00
3-10.2 317-225-15 0,690 8,625,00
B 317-224-01 2,435 30,437,50
9-1 317-224-15 0,313 3,912,50
9-2 317-224-16 1. 307 16,337.50
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Resolution No, 95-
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Net Amount of
Lot Number APN Numbers Usable Acres Assessment
10 317-224-06 0,697 $ 8,712,50
11 317-224-07 0,644 8,050.00
12 317-224-18 0.510 6,375.00
13 317-224-19 0.510 6,375,00
14 317-224-20 0.770 9,625.00
15-16 317-224-21 1.310 16,375.00
17 317-224-22 0.830 10,375,00
18 317-224-23 0,740 9,2S0,OO
19 317-224-02 0,558 6,975,00
20 317-224-03 0,623 7,787,50
21 317-224-04 0,667 8,337.50
22 317-223-19 7,241 90,SI2.50
23 317-223-33 3,954 49,425,00
24,26 317-223-32 4.140 51,750.00
25 317-223-20 2.461 30,762.50
27 317-223-21 3,670 45,875,00
28 317-223-18 1. 379 17,237,50
29 317-223-28 0.796 g,9SO,OO
30 317-223-27 1. 056 13,200.00
31 317-223-15 1. 064 13,300,00
32 317-223-14 1. 558 19,475.00
33 317-223-13 1.753 21,912,SO
34 317-223-12 3,300 41,250,00
35 317-223-11 3,222 40,275.00
36 317-223-01 3.140 39,2S0.00
37 317 -223-02 2.914 36,425.00
38 317-223-03 3.126 39,075.00
39 317-223-04 3,602 45,025.00
40 317 -223-05 5.532 69,IS0.00
41 317-223-06 6.359 79,487,SO
42 317-223-07 4.175 52,187,50
43.44 317-223-31 5,865 73,312,50
45.1 317-223-37 1,280 16,000,00
45.2 317-223-38 1. 000 12,500,00
52 317-270-07 2,610 32,625,00
53 317-270-08 1,992 24,900,00
54 317-270-09 1. 816 22,700,00
55 317-270-10 1.906 23,825.00
56 317-270-11 1.944 24,300.00
57 317-270-12 3.352 41,900.00
58 317-270-13 2,389 29,862,SO
59 317-270-14 1,882 23,525,00
60 317-270-15 1.316 16,450.00
- 61 317-270-16 0.991 12,387,50
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Resolution No, 95-
Page 3
Net Amount of
Lot Number APN Numbers Usable Acres Assessment
62 317-223-30 0,313 $ 3,912,50
63 317-270-18 2,240 28,000.00
64 317-270-19 1. 831 22,887,50
65 317-270-20 O,996 12,450.00
66 317-270-21 0,653 8,162.50
67 317-270-22 1. 477 18,462.50
68 317-270-23 0.753 9,412.50
69 317-270-24 0.807 10,087,50
70 317-270-25 0,640 8,000,00
71 317-270-26 4,998 62,475,00
72 317-270-27 4,674 58,425,00
73 317-270-28 3,894 48,675,00
74 317-270-29 4.102 51,275.00
75 317-270-30 1.118 13,975,00
76 317-270-31 1,026 12,825,00
77 317-270-32 1,200 15,000,00
78 317-270-33 3,469 43,362,50
79 317-270-34 4,977 62,212,50
80 317-270-35 6.297 78,712.50
81 317-270-36 6,315 78,937,50
82 317-270-37 2,626 32,825,00
83 317-270-38 2,765 34,562,50
84 317-270-39 2,998 37,475,00
85 317-270-40 3,024 37,800,00
86 317-270-41 2,678 33,475,00
87 317-270-42 2,344 29,300,00
88 317-270-43 2.150 26,875,00
89 317-270-44 2.988 37,350,00
90 317-281-07 3,116 38,950.00
91 317-281-08 3,276 40,950,00
92 317-281-09 3,023 37,787,50
93 317-281-10 2,796 34,950,00
94 317-281-11 3,440 43,000,00
95 317-281-12 4.411 55,137,50
96 317-281-13 4.280 53,500,00
97 317-281-14 3.154 39,425,00
98 317-281-15 5, 971 74,637.50
99 317-281-16 7,246 90,575,00
102 317-270-45 0,442 5,525,00
103 317-270-46 0,608 7,600,00
104 317-270-47 0,313 3,912,50
TOTAL 252,915 $3,161,437.50
AUG 8 1995 ITEM 7 ,~
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Resolution No, 95-
Page 4
PASSED, ADOPTED AND APPROVED, by the City Council of the City of Poway,
California, at a regular meeting thereof this 8th day of August, 1995.
Don Higginson, Mayor
ATTEST:
Marjorie K. Wahlsten, City Clerk
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Marjorie K, Wahlsten, City Clerk of the City of Poway, do hereby certify
that the foregoing Resolution No. 95- was duly adopted by the City Council at a
meeting of said City Council held on the 8th day of August, 1995, and that it was so
- adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
MarJorie K. Wahlsten, City Clerk
City of Poway
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TECHUI....' DERS FAX NO. B13 -1 286~ fI, 02
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C'fP..u,0 ~ 1-
POMERADO PROPERTIES etMu -.
~?;JCrYlct~
(619) 223-2865 Mailing Address:
fax 1\0.' 3575 Kenyon Straet P 0 nox 80036
'l"<.itfJhon.: (619) 223-1663 San Diego, CA 92110 San Oke", CA 92138
August 7, 1995
Mr. James Bowersox
City Manager
c/o City of poway
P.O. Box 7a9
Poway, CA 92074-0789
RE: CFD No. 1
Dear Mr. Bou.rersox,
With respect to the Staff Report and Recommendation to city
Council on Item #7 for August 8, 1995, it is requested that
provision be made to set aside in an escrow account an amount
required to reimburse nondelinquent property tax owners rur c.heir
payment of the portion of the tax assessment which was required
to cover the reimbursement of the rese~ve Iund. A si!nil?~r
provision was made in CFD No. 88-1 !'or Fiscal Years 94-,:./:) ~nd is
recommended in Item #8 on the Agenda for 95-96 also.
Yours very truly,
POMER~DO PROPERTIES
BY~ll Incernational Ltd.
~ ...
Ne lie F. Bothwell
NB:mb\bowe~so~.ltr
,AUG 8 1995 ITEM 7 ~,I