Loading...
HomeMy WebLinkAbout05 - Assessment Districts 70, 79 & 86 Surplus DeclarationsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 5 July 25, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Dan Matusiewicz, Finance Officer 949.644.3126 dmatu sie @ city. newport- beach.ca. us SUBJECT: Assessment Districts 70, 79 and 86 Surplus Declarations ISSUE: 1913 Act Assessment Districts, often used by the City to finance the "under- grounding" of public utilities, require formal Council approval to declare a surplus of excess improvement fund balances prior to distribution of surplus balances. RECOMMENDATIONS: 1) Adopt Resolution No. 2006-_, 2006 - and 2006-_ declaring surplus amounts in Assessment Districts 70 Bay Shores, 79 Beacon Bay and 86 Peninsula Point. 2) Authorize the Administrative Services Director to choose an appropriate distribution method consistent with the 1913 Act on a parcel by parcel basis. DISCUSSION: Background: Over the years, the City has participated in the formation of many special assessment districts to finance certain public improvements when specific property owners are thought to receive an extraordinary benefit from the improvement. Public improvements of this nature have included the acquisition and development of public property, frontage improvements and the process of "under- grounding" public utilities. Upon the completion of the improvement, surplus improvement funds can be refunded to the assessed property owners or be utilized to reduce the outstanding assessments as specified by the district's bond indenture, related financing code or improvement act. Most of the City's special assessment districts were formed under the legal provisions of the California Streets and Highway Code, Municipal Improvement Act of 1913 (1913 Assessment Districts 70, 79 and 86 Surplus Declarations July 25, 2006 Page 2 Act) and were utilized to finance the under - grounding of public utilities. The 1913 Act provides that any of the following can be done with surplus improvement funds: 1. All or a portion of the surplus funds can be utilized for the continued maintenance of the improvements. 2. All or a portion of the surplus can be applied as a credit or payment to property owners within the district on a pro rata share of the original confirmed assessment. 3. A portion of the surplus monies can be applied towards a bond call within the assessment district debt. 4. The lesser amount of $1,000 or 5% of the amounts expended from the improvement fund can be transferred to the General Fund of the City. Upon notification by Public Works Department staff that the improvements have been finalized and completed for a period time, accounting staff analyzes the projects to determine the amount and extent of remaining improvement funds. At this time, staff has determined that the following surplus improvement funds exist: Assessment District Surplus 70 Bay Shores $51,902 79 Beacon Bay $63,338 86 Peninsula Point $83,461 Upon approval of the above referenced resolutions, the City will return the remaining surplus improvement funds (with interest) to the current property owners in the form of a direct refund or credit against their remaining assessment. Public Notice: This agenda item may be noticed according to the Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Funding Availability: The assessment district surplus bond call, levy credits and / or refunds are solely funded by excess assessment proceeds plus accrued interest. Prepared by: Submitted by: Dan Matusiewicz 6�2- Dennis Danner Finance Officer Administrative Services Director Attachments: Resolution 2006 - Resolution 2006 - Resolution 2006- RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARATION REGARDING SURPLUS IN IMPROVEMENT FUND WHEREAS, the City Council of the City of Newport Beach, has conducted proceedings and completed construction for certain works of improvement in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California; said special assessment district known and designated as Assessment District No. 70 Bay Shores hereinafter referred to as (the "Assessment District'); and, WHEREAS, after completion of the improvements and payment of all the claims from the Improvement Fund for said Assessment District, there remains a surplus in the Improvement Fund, and this legislative body is desirous at this time to make the disposition of said surplus as so provided by Section 10427 of the Streets and Highways Code of the State of California. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the work of improvement, as set forth and described in the Resolution of Intention for these proceedings, has been completed to the satisfaction of this legislative body, and all payments has either been made or set aside for all existing or potential claims, costs and expenses. SECTION 3. That all surplus monies, at this time remaining in the Improvement Fund, shall be applied as a credit or payment to property owners within the boundaries of the Assessment District on a pro -rata basis generally determined as follows: A. To those who paid in cash, the proportionate share of the surplus shall be returned in cash to the person or persons owning the property for which the assessment or installment has been paid; B. Where any part of an individual assessment remains unpaid and is payable in installments, the amount apportioned to each parcel shall be refunded in cash and /or used to reduce the original assessment filed at the County of Orange. SECTION 4. That a portion of the surplus monies, at this time remaining in the Improvement Fund, shall be applied towards a bond call in the Assessment District. 3 SECTION 5. That a portion of the surplus monies, at this time remaining in the Improvement Fund, shall be transferred to a special Department of Public Works Maintenance Account to be used for maintenance projects within the Assessment District. SECTION 6. Prior to any distribution as set forth above, the lesser amount of $1,000 or five percent (5 %) of the amounts expended from the Improvement Fund shall be transferred to the General Fund of the City. ADOPTED this 25th Day of July, 2006. Mayor ATTEST: City Clerk RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARATION REGARDING SURPLUS IN IMPROVEMENT FUND WHEREAS, the City Council of the City of Newport Beach, has conducted proceedings and completed construction for certain works of improvement in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California; said special assessment district known and designated as Assessment District No. 79 Beacon Bay hereinafter referred to as (the "Assessment District'); and, WHEREAS, after completion of the improvements and payment of all the claims from the Improvement Fund for said Assessment District, there remains a surplus in the Improvement Fund, and this legislative body is desirous at this time to make the disposition of said surplus as so provided by Section 10427 of the Streets and Highways Code of the State of California. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the work of improvement, as set forth and described in the Resolution of Intention for these proceedings, has been completed to the satisfaction of this legislative body, and all payments has either been made or set aside for all existing or potential claims, costs and expenses. SECTION 3. That all surplus monies, at this time remaining in the Improvement Fund, shall be applied as a credit or payment to property owners within the boundaries of the Assessment District on a pro -rata basis generally determined as follows: A. To those who paid in cash, the proportionate share of the surplus shall be returned in cash to the person or persons owning the property for which the assessment or installment has been paid; B. Where any part of an individual assessment remains unpaid and is payable in installments, the amount apportioned to each parcel shall be refunded in cash and /or used to reduce the original assessment filed at the County of Orange. SECTION 4. That a portion of the surplus monies, at this time remaining in the Improvement Fund, shall be applied towards a bond call in the Assessment District. 5 SECTION 5. That a portion of the surplus monies, at this time remaining in the Improvement Fund, shall be transferred to a special Department of Public Works Maintenance Account to be used for maintenance projects within the Assessment District. SECTION 6. Prior to any distribution as set forth above, the lesser amount of $1,000 or five percent (5 %) of the amounts expended from the Improvement Fund shall be transferred to the General Fund of the City. ADOPTED this 25th Day of July, 2006. Mayor ATTEST: City Clerk RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARATION REGARDING SURPLUS IN IMPROVEMENT FUND WHEREAS, the City Council of the City of Newport Beach, has conducted proceedings and completed construction for certain works of improvement in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California; said special assessment district known and designated as Assessment District No. 86 Peninsula Point hereinafter referred to as (the "Assessment District'); and, WHEREAS, after completion of the improvements and payment of all the claims from the Improvement Fund for said Assessment District, there remains a surplus in the Improvement Fund, and this legislative body is desirous at this time to make the disposition of said surplus as so provided by Section 10427 of the Streets and Highways Code of the State of California. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the work of improvement, as set forth and described in the Resolution of Intention for these proceedings, have been completed to the satisfaction of this legislative body, and all payment has either been made or set aside for all existing or potential claims, costs and expenses. SECTION 3. That all surplus monies, at this time remaining in the Improvement Fund, shall be applied as a credit or payment to property owners within the boundaries of the Assessment District on a pro -rata basis generally determined as follows: A. To those who paid in cash, the proportionate share of the surplus shall be returned in cash to the person or persons owning the property for which the assessment or installment has been paid; B. Where any part of an individual assessment remains unpaid and is payable in installments, the amount apportioned to each parcel shall be refunded in cash and /or used to reduce the original assessment filed at the County of Orange. SECTION 4. That a portion of the surplus monies, at this time remaining in the Improvement Fund, shall be applied towards a bond call in the Assessment District. `7 SECTION 5. That a portion of the surplus monies, at this time remaining in the Improvement Fund, shall be transferred to a special Department of Public Works Maintenance Account to be used for maintenance projects within the Assessment District. SECTION 6. Prior to any distribution as set forth above, the lesser amount of $1,000 or five percent (5 %) of the amounts expended from the Improvement Fund shall be transferred to the General Fund of the City. ADOPTED this 25th Day of July, 2006. Mayor ATTEST: City Clerk N