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HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 5, 2014 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing reduction of the property tax rate for bonded indebtedness for Fiscal Year 2015 from 1.19 cents per $100 of assessed valuation to 0.96 cents. PREPARED BY: Ed Prendell, Budget Analyst DEPARTMENT: Ur -Ian PHONE: 619-336-4332 APPROVED BY: EXPLANATION: In the special municipal election held on March 5, 2002, more than two-thirds of National City's eligible voters approved the issuance of General Obligation Bonds to fund the construction of the new National City Library. In April 2003, the City issued the General Obligation Bonds in the aggregate principal amount of $6 million. The bonds mature on August 1 in each of the years 2004 through 2028. In 2012, the City refinanced the bonds to lower the interest rate on the bonds and to decrease the tax burden required for repayment. The amount of principal and interest to be paid each year is generated through the proceeds of property taxes received from the County of San Diego. Each year the City must establish the property tax rate that is needed to raise the revenue required to service its annual bonded indebtedness. For the Fiscal year 2015, the calculated property tax rate is 0.96 cents per $100 of assessed value. This is a 19.41 % reduction from prior year rate of 1.19 cents. FINANCIAL STATEMENT: ACCOUNT NO. NA APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: MIS STAFF RECOMMENDATION: Approve and File BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Resolution 2. General Obligation Bond Tax Rate Computation for Fiscal Year 2015.