Item 8 - Tax Rate for Parkway Business Centre
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AGENDA REPORT SUMMARY
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TO: Honorable Mayor and Members of the City Council
FROM: James L, Bowersox, City Ma~
INITIATED BY: John D, Fitch, Assistant City Manage,L/(1'
Peggy A. Stewart, Director of Administ~tive servic~
DATE: August 8, 1995
SUBJECT: Tax Rate for the Parkway Business Centre (Community Facilities District
No, 88-1) for Fiscal Year 1995-96
ABSTRACT
Under the covenants of the bonds for Community Facilities District No, 88-1, 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. 88-1 are delinquent in the
payment of the District's special taxes. In order to prevent default on the bonds,
payment of the August 8, 1994, February 8, 1995, and August 8, 1995 debt service
payments were funded in part by draws upon the reserve funds totaling $2,877,107,46,
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
$17,229,84 per net usable acre for developed land and undeveloped land as the amount of
the special assessment for property within the Community Facilities District No, 88-1
(Parkway Business Centre) for fiscal year 1995-1996.
ACflON
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1 of 8 AUG 8 1995 ITEM 8
- AGENDA REPOR1.
CITY OF POW A Y
TO: Honorable Mayor and Members of the City Council
FROM: James L, Bowersox, City Man~ "
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INITIATED BY: John D, Fitch, Assistant City Manager~l I
Peggy A, Stewart, Director of Administ ative Services
DATE: August 8, 1995
SUBJECT: Tax Rate for the Parkway Business Centre (Community Facilities
District No. 88-1) for Fiscal Year 1995-1996
BACKGROUND
In October 1988, the City Council approved the formation of the Community Facilities
District No. 88-1 (Parkway Business Centre) to provide for the issuance of special
tax bonds to finance the construction and acquisition of certain public improvements
within the District. In November 1988, the qualified electors of the District
authorized the District to incur bond indebtedness not to exceed $45,000,000,
These bonds were issued in the total principal amount of $30,000,000 to finance
portions of the construction, acquisition, modification and expansion of certain
public improvements including, but not limited to, storm drains, a fire station and
equipment, sewer and water facilities, and other public improvements, In January
1991, an additional $8,000,000 of Special Tax Bonds, Series 1990, were issued to
finance part of the costs of the acquisition and construction of these same types of
public improvements,
On August 4, 1992, the City Council established the tax rolls for Parkway Business
Centre based on an assessed value of approximately $77 million, Parkway Business
Centre Partnership has not paid all of the special tax as required since fiscal year
1992-1993,
On February 9, 1993, the City Council authorized the commencement of judicial
foreclosure against the delinquent property owners in Community Facilities District
No. 88-1 and has advanced three loans totaling $4,159,659.09 to pay for the debt
service payments of February 8, 1993, August 8, 1993 and February 8, 1994, On or
about February 26, 1993, Parkway Business Centre Partners Ltd" the majority owners
of the District, filed a petition under Chapter 11 of the bankruptcy code,
ACTION:
2 of 8 " ~
AUG 8 1995
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.- Agenda Report
August 8, 1995
Page 2
The City Attorney's office has continued with the processing of judicial foreclosure
against the property, The debt service payment due August 8, 1995 for S1,74S,020,OO
is to be covered in part by a draw from reserve fund for S8S1,907.38 as referenced
by a separate report brought forward August I, 1995.
FINDINGS
Total funds required within Community Facilities District No. 88-1 in fiscal year
1995-96 are as follows:
Debt service payments in FY 1995-96 S3,206,810
Trustee fees to be paid FY 1995-96 21,000
Less interest earnings on bond reserve
funds, with S851,907,38
drawdown on 8/1/95 (87,550)
Replenish bond reserve funds 2,877,107
Cash reserve for administrative
costs, delinquencies 50.000
Total funding requirements ,S6.067.367
Total tax assessment of S17,229,84
for 260,2 net usable acres S4,483,204
Unfunded bond reserve 1. 584 . 163
,S6.067 .367
Community Facilities District 88-1 established a maximum tax rate, which escalates
by 2% annually, that can be levied by the City Council in any fiscal year, Since
reserve funds were drawn upon, the maximum tax rate must be levied until such time
as all bond reserve funds have been replenished. For fiscal year 1995-96, the
maximum tax rate allowed is S17,229,84,
With the approval of the final map for Unit #1 of the Parkway Business Centre, 52
taxable lots were created with a total of 120,7 net usable acres, Unit #2 of the
project has created an additional 39 taxable lots totaling 139.5 net usable acres,
Therefore, there is a total of 260,2 net usable acres to be used in calculating the
amount of tax per acre, With the draw on the reserve funds, the maximum tax rate of
S17,229,84 applies to all developed and undeveloped property within the District,
3 of 8 AUG 8 1995 ITEM 8 ,\
Agenda Report
August 8, 1995
Page 3
On August 23, 1994, the Council authorized the establishment of an escrow fund for
reimbursing those property owners who have kept their property taxes current when
the delinquent taxpayers have paid their back taxes, penalties and interest, Once
settlement payments have been received from the delinquent property tax owners,
those payments would be applied in the following order:
1. Any bond payments currently due are paid in full.
2, Replenish the bond reserve fund up to its required level,
3, Pay back City loans and outstanding interest on those loans,
4. Set aside in an escrow account an amount required to reimburse nondelinquent
property tax owners for their payment of the portion of the tax assessment which
was required to cover the reimbursement to the reserve fund.
To date, there have not been sufficient settlement payments from delinquent property
owners to repay the bond reserve funds, pay back City loans, and fund the escrow
account,
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA
guidelines,
FISCAL IMPACT
The City of Poway has loaned the Community Facilities District $4,lS9,6S9,09 to
cover the February 8, 1993, August 8, 1993, and February 8, 1994 debt service
payments, Payment of the August 8, 1994, February 8, 1995 and August 8, 1995 debt
service payments drew $2,877,107,46 from the reserve funds created for this purpose,
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
$17,229.84 per net usable acre for developed and undeveloped land as the amount of
the special assessment for property within the Community Facilities District No, 88-
1 (Parkway Business Centre) for fiscal year 1995-96.
JLB:JDF:PAS:eg
Attachment:
Proposed Resolution Setting the Special Tax Rate for FY 1995-96
4 of 8 AUG 8 1995 ITEM 8
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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
COMMUNITY FACILITIES DISTRICT NO, 88-1
(PARKWAY BUSINESS CENTRE) FOR FISCAL YEAR 1995-96
WHEREAS, the City Council of the City of Poway, California has approved
the formation of the Community Facilities District No, 88-1 (Parkway Business
Centre) 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 $30,000,000 in 1989 Special Tax Bonds and an
additional $8,000,000 in Series 1990 Special Tax Bonds, and
WHEREAS, Ordinance No, 289 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 1995-96 is set at
- $17,229.84 per net usable acre on developed property within Phase I of the
District and on undeveloped property within Phase II of the District and that
the special tax shall be spread on the 260,2 net usable acres as follows:
Amount of
Lot Number APN Numbers Net Usable Acres Assessment
UNIT 1:
1 317-280-56 16.5 $ 284,292,36
2 317-280-57 5.3 91,318,16
Parcel 105 (Park) N/A N/A N/A
Parcel 106 317-280-47 3,7 63,750,40
Parcel 107 317-280-48 7,0 120,608,88
Parcel 108 317-280-51 4,6 79,257.26
Parcel 109 317-280-52 1.6 27,567,74
Parcel 110 317-280-50 5,5 94,764,12
9 317-280-21 3,0 51,689,52
10 317-280-22 2,4 41,351.62
11 317-280-23 2.1 36,182.66
12 317-280-53 3,0 51,689.52
13 317-280-54 1.6 27,567.74
14A 317-280-60 3.0 51,689,52
14B 317-280-61 0.3 5,168,96
15 317-280-58 2,6 44,797,58
16 317-280-28 2,7 46,520.56
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5 of 8 AUG 8 1995 ITEM 8 . 'J
Resolution No, 95-
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Amount of
Lot Number APN Numbers Net Usable Acres Assessment
17 317-280-29 2.7 $ 46,520,58
22 317-280-34 2.9 49,966,54
23 317-280-35 3,0 51,689,52
24 317-810-28 0,9 15,506,86
25 317-810-29 0,7 12,060,88
26 317-810-30 0,8 13,783.88
27 317-810-04 1.2 20,675,80
28 317-810-05 0,7 12,060,90
29 317-810-33 0,7 12,060,88
30 317-810-33 0,8 13,783.88
31 317-810-33 0,6 10,337.90
32 317-810-09 0,8 13,783.86
33 317-810-31 1.1 18,9S2.82
34 317-810-32 1.2 20,675,82
35 317-810-12 0,8 13,783,86
36 317-810-13 0.7 12,060.90
37 317-810-14 0.7 12,060,88
38 317-810-15 0.8 13,783,88
39 317-810-16 0.8 13,783.86
40 317-810-17 0,8 13,783,88
41 317-810-18 0.8 13,783,86
42 317-810-19 0,7 12,060,90
43 317-280-36 2,6 44,797,58
44 317-280-37 3.0 SI,689,S2
45 317-280-38 3,1 53,412,50
46 317-280-39 2.9 49,966,S4
47 317-810-36 1.4 24,121.78
48 317-810-35 0.5 8,614,92
49 317-810-22 1.3 22,398,78
50 317-810-23 1.0 17,229,84
51 317-810-24 1.2 20,675,82
52 317-810-25 O,g 15,506,86
53 317-810-26 0,8 13,783,86
54 317-810-27 1.0 17,229,84
55 323-090-62 5,4 93,041.14
56 323-090-63 3,3 56,858,48
57 323-090-64 3.2 55,135,48
UNIT 2:
1 323-090-17 9.4 161,960.S0
2 323-090-17 6.8 117,162.92
3 323-091-02 2.3 39,628,62
4 323-091-02 2.4 41,351.62
5 323-091-05 3,1 53,412,50
6 323-090-66 5,9 101,656,06
7 323-090-66 3,2 55,135,50
6 of 8 AUG 8 1995 ITEUS .1
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-- Resolution No, 95-
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Amount of
Lot Number APN Numbers Net Usable Acres Assessment
8 323-090-66 4,8 $ 82,703,24
g 323-090-43 4,3 74,088,30
10 323-090-69 4,0 68,919,36
11 323-090-69 3,7 63,750,42
12 323-090-17 3,4 58,581. 46
13 323-090-17 3,7 63,750,40
14 323-090-17 4,3 74,088,32
15 323-090-69 3,0 51,689,52
16 323-090-69 2,5 43,074,60
17 323-090-69 2,9 49,966,54
18 323-090-69 2.8 48,243.54
19 323-090-69 2,3 39,628,64
20 323-091-05 3,0 51,689,52
21 323-091-05 3,6 62,027,42
22 323-090-69 4,1 70,642.34
23 323-090-69 4,1 70,642.34
24 323-090-69 4,3 74,088,30
25 323-090-69 4,0 68,919.36
26 323-091-05 3.4 58,581. 46
27 323-091-0S 3.9 67,196,38
28 323-091-05 3,6 62,027,42
29 323-091-05 2,7 46,520.58
30 323-09I-OS 2,5 43,074,60
31 323-091-05 2,2 37,905.64
32 323-091-05 3,4 58,581. 46
33 323-091-05 2.4 41,351.62
34 323-091-05 3,4 58,581. 46
35 323-091-05 2,3 39,628.64
36 323-091-05 2,2 37,905.64
37 323-091-05 2,2 37,905,64
38 323-091-05 2,4 41,351.62
39 323-091-05 5,0 86,149,20
Total 260,2 $4,483,204.38
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7 of 8 ~UG 8 1995 ITEM 8 ' l"
Resolution No, 95-
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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 under penalty of perjury 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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