Title
Adoption of Resolution Requesting and Authorizing the County of Alameda to Levy a Tax on All Real and Personal Property in the City of Alameda as a Voter Approved Levy for the General Obligation Bonds Issued Pursuant to a General Election Held November 7, 2000 for the Alameda Library. (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On November 7, 2000, the voters of the City of Alameda (City) passed Measure “O,” authorizing the issuance of bonds in an amount not-to-exceed $10,600,000 (Bonds) to finance the acquisition, construction, and completion of a new Main Library facility and make improvements to two branch library facilities (Project) in the City. On September 17, 2013, the City issued $9,010,000 of 2013 General Obligation Bonds (the Refunding Bonds) to refund the outstanding 2003 bonds, creating savings via a reduced interest rate.
Staff recommends City Council approve the attached resolution authorizing the County to levy all real and personal property in the City to provide for sufficient funds to pay principal and interest on the Bonds in Fiscal Year (FY) 2024-25. The required tax rate for FY 2024-25 is $3.00/$100,000 of assessed valuation and is based on the amount required to make the annual debt service payments. This is substantially lower than the maximum rate of $15.98/$100,000 of assessed valuation over 30 years and the same rate as FY 2023-24. Staff estimates the tax rate will generate approximately $517,000 for collection in FY 2024-25. As of June 30, 2024, the outstanding bond balance is $5,185,000.
BACKGROUND
On November 7, 2000, the voters of the City passed Measure “O,” authorizing the issuance of Bonds in an amount not-to-exceed $10,600,000 to finance the Project. The issuance of the Bonds was predicated upon receiving a grant for library construction from the State of California. The City received the final grant award in December 2002 in the amount of $15,487,952. In March 2003, the City sold the full amount of the Bonds.
The Project included construction of the Main Library and renovation of the Bay Farm library branch with a reconfigured layout and improvements of the West End library branch with new heating and air conditioning system, wiring, lighting, and flooring. Public art was installed at both branches.
On September 17, 2013, the City issued $9,010,000 of 2013 Refunding Bonds to refund the outstanding 2003 Bonds, creating savings via a reduced interest rate.
DISCUSSION
Measure “O” set the maximum tax rate at $15.98/$100,000 of assessed valuation over 30 years. The required tax rate for FY 2024-25 is $3.00/$100,000 of assessed valuation. This is substantially lower than the maximum rate and the same rate as the prior FY 2023-24. The rate and the accumulated cash balance in the Library Bond Fund will produce sufficient revenues to pay the required debt service during the fiscal year.
ALTERNATIVES
Due to this being an outcome of General Obligation Bonds Issued, there are no alternatives available.
FINANCIAL IMPACT
There is no impact to the General Fund. Debt service for the Refunding Bonds will be paid from this tax levy on all real and personal property in Alameda, which is accounted for in Fund 410 (2013 General Obligation Library Bond Fund). Staff estimates the tax rate will generate approximately $505,000 for collection in FY 2024-25. As of June 30, 2024, the outstanding bond balance is $5,185,000.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code.
Receiving this report is in alignment with the City’s FY 2023-26 Strategic Plan under the priority to Practice Fiscally Responsible, Equitable and Inclusive Governance.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
RECOMMENDATION
Adopt a resolution requesting and authorizing the County of Alameda to levy a tax on all real and personal property in the City as a voter-approved levy for the General Obligation Bonds issued to refund the original bonds issued pursuant to the authorization given at a general election held November 7, 2000 for the Alameda Library.
Respectfully submitted,
Margaret O’Brien, Finance Director