Title
Recommendation to Accept the Special Tax and Local Bond Measure Annual Report. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Recommendation to Accept the Special Tax and Local Bond Measure Annual Report
BACKGROUND
The California Government Code requires the reporting of special tax and local bond measure accountability for those special taxes or local bonds approved after January 1, 2001. The specific purpose, the amount of funds collected and expended, and the status of the project being funded by the proceeds of the special tax or local bond measure must be reported to the governing body. The City of Alameda has two issues that require compliance: the Bayport Special Assessment District and the Measure O Library Bonds.
DISCUSSION
The Bayport Community Facilities District (District) (CFD 03-1, Fund 278) was formed by Resolution No. 13644, dated November 5, 2003, for the purpose of funding the ongoing operation and maintenance of public facilities and public safety services within the Bayport neighborhood. Proceeds from the special assessment are accounted for in Fund 278. Fiscal Year (FY) 2014-15 annual levies produced revenues of $582,735 and interest income of $19,281. The expenditures during the fiscal year totaled $298,042. As of June 30, 2015, ending fund balance was $2.7 million. The fund balance has grown in order to build reserves to fund future maintenance and capital replacements/improvements, thereby limiting the need to raise assessments in the future.
The Measure O Library Bonds are general obligation bonds approved by the voters and issued in March 2003 to finance the acquisition and construction of the new main library and improvements to two branch libraries. In FY 2013-14, the City issued the 2013 General Obligation Refunding Bonds to refund the 2003 General Obligation Bonds. These monies are accounted for in Funds 421 and 421.1. FY 2014-15 annual levies produced tax revenues of $820,944. The expenditures during the fiscal year related to the use of these funds totaled $579,808, which represent debt service on the cost of the improvements made at the three libraries. As of June 30, 2015, ending fund balance was $698,945, which was sufficient to cover August bond principal and interest payment of $485,909. The tax rate for FY 2015-16 has been adjusted to reflect increases in next year principal and interest payment.
FINANCIAL IMPACT
There is no budget or financial impact to the General Fund as a result of receiving this report.
ENVIRONMENTAL REVIEW
This action is not a project for the purposes of California Environmental Quality Act (CEQA), pursuant to Guidelines Section 15378(b)(4), which states that a project does not include government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Accept the Special Tax and Local Bond Measure Annual Report as presented.
Respectfully submitted,
Elena Adair, Finance Director
Financial Impact section reviewed,
Elena Adair, Finance Director