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HomeMy WebLinkAbout07 - Disposition of Assessment District Surplus�EWPOR� CITY OF NEWPORT'- REACH c9�,FOa�'P City Council Staff Report Agenda Item No. 7 June 28, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Tracy McCraner, Administrative Services Director/Treasurer 949 - 644 -3123, tmccraner @newportbeachca.gov PREPARED BY: Dan Matusiewicz, Deputy Administrative Services Director APPROVED: TITLE: Disposition of Surplus Assessment District Fund Balances ABSTRACT: After the completion of Assessment District improvement projects, City Council is required to take formal action to determine the disposition of surplus fund balances prior to the distribution of said balances. Upon approval of the attached resolutions, staff will take the necessary actions to disburse surplus balances to current parcel owners by either direct refunds, if debt has been extinguished, or a credit against their outstanding obligation. RECOMMENDATION: 1) Adopt Resolution Nos. 2011- 62 and 2011- 63 , which authorize the City to charge the Assessment Districts interest for funds advanced to it, declare the remaining improvement fund balance as surplus and provide staff specific direction as to the distribution of improvement fund balances in Assessment Districts 68 (Newport Shores) and 69 (West Newport). 2) Adopt Resolution Nos. 2011- 64 , 2011- 65 , 2011- 66 , 2011- 67 and 2011- 68 , which declare the remaining ITCC fund balance surplus and authorize staff to disburse excess ITCC funds to the current property owners of those parcels whose ITCC obligation was paid in cash in Assessment Districts 70 (Bay Shores), 74 (Island Avenue), 75 (Balboa Village Business), 82 (Goldenrod Avenue) and 86 (Balboa Peninsula). 3) Adopt Resolution Nos. 2011- 69 , 2011- 70 , 2011 - 71 , 2011- 72 , 2011- 73 and 2011 -_7, which declare the remaining redemption fund balance as surplus and provide staff specific direction as to the disbursement of excess redemption funds to current property owners in Assessment Districts 58 Disposition of Surplus Assessment District Fund Balances June 28, 2011 Page 2 (Cannery Village), 59 (McFadden Square), 63 (Newport Island), 66 (East Newport), 71 (Balboa Boulevard) and 72 (Balboa Coves). FUNDING REQUIREMENTS: The bond call, levy credits and /or refunds are solely funded by excess assessment proceeds plus accrued interest. DISCUSSION: Background The City has participated in the formation of many special assessment districts to finance certain public improvements that provide special benefit to area specific property owners. The vast majority of the City's special assessment districts were utilized to finance the undergrounding of overhead public utilities, and were formed under the provisions of the California Streets and Highway Code and Municipal Improvement Act of 1913 (the "1913 Act ") with bonds issued pursuant to the Improvement Bond Act of 1915 (the "1915 Bond Act "). For each district, the City establishes an Improvement Fund and a Redemption Fund to manage the District's respective cash flows. The Improvement Fund is used to account for project construction expenses. The monies in such a fund are primarily comprised of bond proceeds and the amount collected as prepaid assessments. On occasion, the City has been required to establish a sub - account in the Improvement Fund called the Income Tax Component of Contribution (ITCC) Fund. This fund was created to account for an additional amount assessed for any federal income tax obligation that may have arisen associated with the perceived benefit of a capital contribution to a private utility company. As differentiated from the Improvement Fund, the Redemption Fund is created to account for the activities associated with bond redemption and administration for those parcel owners that financed their assessment versus paying in cash. Disposition of Funds Improvement Funds Upon completion of the improvements and a sufficient period of time has passed where no further construction related expenditures have occurred (three or more years after the utility poles have been removed), staff analyze the projects to determine the amount of project improvement funds remaining. For those Districts required to establish an ITCC sub - account, staff determines the amount of funds that have accumulated in the ITCC improvement fund sub - account seven or more years after the bond issuance date and if no demand for ITCC payment has been received. At this time, staff has determined that the following surplus improvement funds exist including accrued interest: Disposition of Surplus Assessment District Fund Balances June 28, 2011 Page 3 The 1913 Act provides that any of the following can be done with surplus construction 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 current 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. The surplus ITCC improvement funds can be applied as a payment, on a pro rata share of the original confirmed ITCC assessment, to the current property owners of those parcels whose ITCC obligation was paid in cash. It is our recommendation that City Council direct staff to distribute the remaining improvement fund balances (net of accrued interest) consistent with the 1913 Act as follows: 1. Prior to declaring the amount of improvement fund balance as surplus, reimburse the City for foregone interest on funds advanced to the district during the design and formation phase in the same manner the City apportioned interest on Assessment District balances after the district was authorized and funded. Improvement Fund Surplus Assessment Construction ITCC District Surplus Refund 68 $623,807 $67,033 69 $1,084,718 $217,929 70 $0 $54,713 74 $0 $18,386 75 $0 $2,942 82 $0 $2,697 86 $0 $31,970 The 1913 Act provides that any of the following can be done with surplus construction 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 current 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. The surplus ITCC improvement funds can be applied as a payment, on a pro rata share of the original confirmed ITCC assessment, to the current property owners of those parcels whose ITCC obligation was paid in cash. It is our recommendation that City Council direct staff to distribute the remaining improvement fund balances (net of accrued interest) consistent with the 1913 Act as follows: 1. Prior to declaring the amount of improvement fund balance as surplus, reimburse the City for foregone interest on funds advanced to the district during the design and formation phase in the same manner the City apportioned interest on Assessment District balances after the district was authorized and funded. Disposition of Surplus Assessment District Fund Balances June 28, 2011 Page 4 2. After apportioning interest earned and charging the district interest expense, the remaining balance in the improvement fund shall be declared as surplus and be distributed as follows: a. To the current property owners whose assessed property parcel(s) was paid in cash, the proportionate share of the construction balance shall be paid in cash. b. To the current property owners whose assessed property parcel(s) paid the ITCC assessment in cash, the proportionate share of the ITCC balance shall be paid in cash. C. For the current property owners whose parcel(s) was assessed and financed with bonds, the proportionate share of the construction balance shall be used to redeem outstanding bonds to the fullest extent possible with the remnant balance remaining applied as a levy credit to the next assessment installment. Redemption Fund Funds collected and deposited into this account to service the financing obligations are ideally exhausted upon defeasance of all the outstanding bonds by making annual adjustments to the assessment roll. However, on occasion surplus balances remain upon bond defeasance. At this time, accounting staff has determined that the following redemption fund surplus exists after deducting administrative expenses: Assessment Redemption Fund District Surplus 58 $6,291 59 $34,008 63 $59,178 66 $5,918 71 $21,952 72 $28,832 According to the 1915 Bond Act, if a redemption fund surplus exists after retiring all the outstanding bonds and paying all financing related administrative costs, the City can distribute the surplus using one or more of the following: 1. All or a portion of the surplus funds can be utilized for the continued maintenance of the improvements. Disposition of Surplus Assessment District Fund Balances June 28, 2011 Page 5 2. All or a portion of the surplus funds can be utilized to issue a refund to the current property owner(s) of the parcels that financed the project. 3. All or a portion of the surplus funds can be transferred to the City's General Fund. It is our recommendation that City Council direct staff to distribute the remaining redemption fund balances consistent with the 1915 Bond Act as follows: 1. To the current property owners whose parcel had an outstanding assessment at the time of retirement of the bonds, the proportionate share of the balance shall be paid in cash. Upon approval of the attached resolutions, staff will take the necessary actions to prepare refund checks, notify bond holders, call bonds and prepare a levy credit prior to the August levy deadline and the September 1 installment date. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Disposition of Surplus Assessment District Fund Balances June 28, 2011 Page 6 Submitted by: an Matusiewicz Deputy Administrative ervice Director/Treasurer Attachments: A. Resolution 2011- B. Resolution 2011 - C. Resolution 2011 - D. Resolution 2011 - E. Resolution 2011 - F. Resolution 2011 - G. Resolution 2011- th. Resolution 2011- 1. Resolution 2011 - J. Resolution 2011 - K. Resolution 2011 - L. Resolution 2011 - M. Resolution 2011- RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 68 — NEWPORT SHORES 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. 68 Newport Shores hereinafter referred to as (the "Assessment District "); and WHEREAS, interest income was allocated to cash balances associated with the Assessment District, interest expense also accrued to the Improvement Fund while the City of Newport Beach advanced funds to the Assessment District during the design phase of the project improvements; 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 which includes apportioned interest income net of interest expenses, 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 have either been made or set aside for all existing or potential claims, costs and expenses. SECTION 3. That prior to determining that portion of the amount remaining in the improvement fund, which represents surplus, the City shall reimburse itself for the interest expense accrued on the funds advanced to the Assessment District. SECTION 4. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred to the City's general fund. SECTION 5. That all surplus monies, at this time remaining in the Improvement Fund, shall be applied as a credit or payment to the 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 currently owning the property for which the assessment or installment has been paid; B. As to those parcels for which the Federal Income Tax Component of Contribution (ITCC) was paid in cash, the proportionate share of the ITCC shall be returned in cash to the person or persons currently owning the property for which the ITCC obligation has been paid; C. As to the balance remaining after disbursement of the cash payment pursuant to Section 5(A), said balance shall be transferred to the redemption fund and applied as follows: 1. To the fullest extent possible, call bonds in a manner consistent with Section 9 of the bond indenture. 2. The remnant remaining in the redemption fund shall then be applied as a credit to the next succeeding assessment installment for each such parcel. ADOPTED this day of 2011. Mayor ATTEST: City Clerk RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 69 —WEST NEWPORT 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. 69 West Newport hereinafter referred to as (the "Assessment District "); and WHEREAS, interest income was allocated to cash balances associated with the Assessment District, interest expense also accrued to the Improvement Fund while the City of Newport Beach advanced funds to the Assessment District during the design phase of the project improvements; 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 which includes apportioned interest income net of interest expenses, 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 have either been made or set aside for all existing or potential claims, costs and expenses. SECTION 3. That prior to determining that portion of the amount remaining in the improvement fund, which represents surplus, the City shall reimburse itself for the interest expense accrued on the funds advanced to the Assessment District. SECTION 4. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred to the City's general fund. SECTION 5. That all surplus monies, at this time remaining in the Improvement Fund, shall be applied as a credit or payment to the 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 currently owning the property for which the assessment or installment has been paid; B. As to those parcels for which the Federal Income Tax Component of Contribution (ITCC) was paid in cash, the proportionate share of the ITCC shall be returned in cash to the person or persons currently owning the property for which the ITCC obligation has been paid; C. As to the balance remaining after disbursement of the cash payment pursuant to Section 5(A), said balance shall be transferred to the redemption fund and applied as follows: 1. To the fullest extent possible, call bonds in a manner consistent with Section 9 of the bond indenture. 2. The remnant remaining in the redemption fund shall then be applied as a credit to the next succeeding assessment installment for each such parcel. ADOPTED this day of 2011. Mayor ATTEST: City Clerk RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE ITCC FUND, A SUBACCOUNT OF THE IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 70 — BAY SHORES WHEREAS, the City Council of the City of Newport Beach (the "City ") 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, each of the individual assessments levied in the Assessment District included a component on account of a potential payment obligation commonly known as the "Income Tax Component of Contribution" or "ITCC," and any property owner who chose to prepay the assessment on any parcel owned by such owner was given the option to prepay the ITCC but was not obligated to do so in order to avoid having annual installments billed on account of the assessment; and WHEREAS, the proceeds of such optional ITCC prepayments were deposited into a subaccount of the Improvement Fund for the Assessment District identified as the "ITCC Fund;" and WHEREAS, since the unpaid ITCC component of unpaid assessments was not included in determining the principal amount of the limited obligation improvement bonds (the "Bonds ") issued on account of the unpaid assessments of the Assessment District, the moneys on deposit in the ITCC Fund consist solely of such optional cash prepayments and the accrued interest allocated thereto; and WHEREAS, it is the policy of the City that, following the expiration of seven years after the issuance of the Bonds without receipt by the City of a demand for the ITCC payment, the moneys on deposit in the ITCC Fund should be disbursed and the ITCC Fund closed; and WHEREAS, more than seven years have elapsed since the Bonds of the Assessment District were issued and no demand for the ITCC payments has been received, and it is therefore appropriate to provide for disbursement of the balance in the ITCC Fund and to close the ITCC Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the ITTC Fund to the City's general fund. SECTION 3. That, as to each parcel for which the ITCC component of the assessment on said parcel was prepaid in cash, the proportionate share of the balance remaining in the ITCC Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the original cash prepayments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the ITCC Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE ITCC FUND, A SUBACCOUNT OF THE IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 74 — ISLAND AVENUE WHEREAS, the City Council of the City of Newport Beach (the "City') 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. 74 (Island Avenue), hereinafter referred to as the "Assessment District;" and WHEREAS, each of the individual assessments levied in the Assessment District included a component on account of a potential payment obligation commonly known as the "Income Tax Component of Contribution" or "ITCC," and any property owner who chose to prepay the assessment on any parcel owned by such owner was given the option to prepay the ITCC but was not obligated to do so in order to avoid having annual installments billed on account of the assessment; and WHEREAS, the proceeds of such optional ITCC prepayments were deposited into a subaccount of the Improvement Fund for the Assessment District identified as the "ITCC Fund;" and WHEREAS, since the unpaid ITCC component of unpaid assessments was not included in determining the principal amount of the limited obligation improvement bonds (the "Bonds ") issued on account of the unpaid assessments of the Assessment District, the moneys on deposit in the ITCC Fund consist solely of such optional cash prepayments and the accrued interest allocated thereto; and WHEREAS, it is the policy of the City that, following the expiration of seven years after the issuance of the Bonds without receipt by the City of a demand for the ITCC payment, the moneys on deposit in the ITCC Fund should be disbursed and the ITCC Fund closed; and WHEREAS, more than seven years have elapsed since the Bonds of the Assessment District were issued and no demand for the ITCC payments has been received, and it is therefore appropriate to provide for disbursement of the balance in the ITCC Fund and to close the ITCC Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the ITTC Fund to the City's general fund. SECTION 3. That, as to each parcel for which the ITCC component of the assessment on said parcel was prepaid in cash, the proportionate share of the balance remaining in the ITCC Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the original cash prepayments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the ITCC Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE ITCC FUND, A SUBACCOUNT OF THE IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 75 — BALBOA VILLAGE BUSINESS WHEREAS, the City Council of the City of Newport Beach (the "City ") 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. 75 (Balboa Village Business), hereinafter referred to as the "Assessment District;" and WHEREAS, each of the individual assessments levied in the Assessment District included a component on account of a potential payment obligation commonly known as the "Income Tax Component of Contribution" or "ITCC," and any property owner who chose to prepay the assessment on any parcel owned by such owner was given the option to prepay the ITCC but was not obligated to do so in order to avoid having annual installments billed on account of the assessment; and WHEREAS, the proceeds of such optional ITCC prepayments were deposited into a subaccount of the Improvement Fund for the Assessment District identified as the "ITCC Fund;" and WHEREAS, since the unpaid ITCC component of unpaid assessments was not included in determining the principal amount of the limited obligation improvement bonds (the "Bonds ") issued on account of the unpaid assessments of the Assessment District, the moneys on deposit in the ITCC Fund consist solely of such optional cash prepayments and the accrued interest allocated thereto; and WHEREAS, it is the policy of the City that, following the expiration of seven years after the issuance of the Bonds without receipt by the City of a demand for the ITCC payment, the moneys on deposit in the ITCC Fund should be disbursed and the ITCC Fund closed; and WHEREAS, more than seven years have elapsed since the Bonds of the Assessment District were issued and no demand for the ITCC payments has been received, and it is therefore appropriate to provide for disbursement of the balance in the ITCC Fund and to close the ITCC Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the ITTC Fund to the City's general fund. SECTION 3. That, as to each parcel for which the ITCC component of the assessment on said parcel was prepaid in cash, the proportionate share of the balance remaining in the ITCC Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the original cash prepayments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the ITCC Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE ITCC FUND, A SUBACCOUNT OF THE IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 82 — GOLDENROD AVENUE WHEREAS, the City Council of the City of Newport Beach (the "City') 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. 82 (Goldenrod Avenue), hereinafter referred to as the "Assessment District;" and WHEREAS, each of the individual assessments levied in the Assessment District included a component on account of a potential payment obligation commonly known as the "Income Tax Component of Contribution" or "ITCC," and any property owner who chose to prepay the assessment on any parcel owned by such owner was given the option to prepay the ITCC but was not obligated to do so in order to avoid having annual installments billed on account of the assessment; and WHEREAS, the proceeds of such optional ITCC prepayments were deposited into a subaccount of the Improvement Fund for the Assessment District identified as the "ITCC Fund;" and WHEREAS, since the unpaid ITCC component of unpaid assessments was not included in determining the principal amount of the limited obligation improvement bonds (the "Bonds ") issued on account of the unpaid assessments of the Assessment District, the moneys on deposit in the ITCC Fund consist solely of such optional cash prepayments and the accrued interest allocated thereto; and WHEREAS, it is the policy of the City that, following the expiration of seven years after the issuance of the Bonds without receipt by the City of a demand for the ITCC payment, the moneys on deposit in the ITCC Fund should be disbursed and the ITCC Fund closed; and WHEREAS, more than seven years have elapsed since the Bonds of the Assessment District were issued and no demand for the ITCC payments has been received, and it is therefore appropriate to provide for disbursement of the balance in the ITCC Fund and to close the ITCC Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the ITTC Fund to the City's general fund. SECTION 3. That, as to each parcel for which the ITCC component of the assessment on said parcel was prepaid in cash, the proportionate share of the balance remaining in the ITCC Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the original cash prepayments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the ITCC Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE ITCC FUND, A SUBACCOUNT OF THE IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 86 — BALBOA PENINSULA WHEREAS, the City Council of the City of Newport Beach (the "City ") 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 (Balboa Peninsula), hereinafter referred to as the "Assessment District;" and WHEREAS, each of the individual assessments levied in the Assessment District included a component on account of a potential payment obligation commonly known as the "Income Tax Component of Contribution" or "ITCC," and any property owner who chose to prepay the assessment on any parcel owned by such owner was given the option to prepay the ITCC but was not obligated to do so in order to avoid having annual installments billed on account of the assessment; and WHEREAS, the proceeds of such optional ITCC prepayments were deposited into a subaccount of the Improvement Fund for the Assessment District identified as the "ITCC Fund;" and WHEREAS, since the unpaid ITCC component of unpaid assessments was not included in determining the principal amount of the limited obligation improvement bonds (the "Bonds ") issued on account of the unpaid assessments of the Assessment District, the moneys on deposit in the ITCC Fund consist solely of such optional cash prepayments and the accrued interest allocated thereto; and WHEREAS, it is the policy of the City that, following the expiration of seven years after the issuance of the Bonds without receipt by the City of a demand for the ITCC payment, the moneys on deposit in the ITCC Fund should be disbursed and the ITCC Fund closed; and WHEREAS, more than seven years have elapsed since the Bonds of the Assessment District were issued and no demand for the ITCC payments has been received, and it is therefore appropriate to provide for disbursement of the balance in the ITCC Fund and to close the ITCC Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the ITTC Fund to the City's general fund. SECTION 3. That, as to each parcel for which the ITCC component of the assessment on said parcel was prepaid in cash, the proportionate share of the balance remaining in the ITCC Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the original cash prepayments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the ITCC Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE REDEMPTION FUND OF ASSESSMENT DISTRICT NO. 58 — CANNERY VILLAGE WHEREAS, the City Council of the City of Newport Beach (the "City') 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. 58 (Cannery Village), hereinafter referred to as the "Assessment District;" and WHEREAS, limited obligation improvement bonds (the "Bonds ") were issued pursuant to the Improvement Bonds Act of 1915 upon the security of the unpaid assessments levied in the Assessment District, and annual installments were billed on the secured property tax bill for each parcel having an unpaid assessment; and WHEREAS, proceeds of the annual installments were deposited into a redemption fund for the Bonds (the "Redemption Fund "), from which moneys were disbursed to pay the principal of and the interest on the Bonds; and WHEREAS, the principal of and the interest on the Bonds has been paid in full, and there remains a balance in the Redemption Fund which is not needed for the payment of any obligation on the Bonds, and by this resolution this City Council wishes to direct the disbursement of said balance and the closure of the Redemption Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the Redemption Fund to the City's general fund. SECTION 3. That, as to each parcel for which an installment was billed on the secured property tax roll for the last fiscal year in which such installments were so billed, the proportionate share of the balance remaining in the Redemption Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the last billed installments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the Redemption Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk 1663916.1 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE REDEMPTION FUND OF ASSESSMENT DISTRICT NO. 59 — MCFADDEN SQUARE WHEREAS, the City Council of the City of Newport Beach (the "City ") 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. 59 (McFadden Square), hereinafter referred to as the "Assessment District;" and WHEREAS, limited obligation improvement bonds (the "Bonds ") were issued pursuant to the Improvement Bonds Act of 1915 upon the security of the unpaid assessments levied in the Assessment District, and annual installments were billed on the secured property tax bill for each parcel having an unpaid assessment; and WHEREAS, proceeds of the annual installments were deposited into a redemption fund for the Bonds (the "Redemption Fund "), from which moneys were disbursed to pay the principal of and the interest on the Bonds; and WHEREAS, the principal of and the interest on the Bonds has been paid in full, and there remains a balance in the Redemption Fund which is not needed for the payment of any obligation on the Bonds, and by this resolution this City Council wishes to direct the disbursement of said balance and the closure of the Redemption Fund, NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the Redemption Fund to the City's general fund. SECTION 3. That, as to each parcel for which an installment was billed on the secured property tax roll for the last fiscal year in which such installments were so billed, the proportionate share of the balance remaining in the Redemption Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the last billed installments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the Redemption Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk 1663916.1 RESOLUTION NO. 2011 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE REDEMPTION FUND OF ASSESSMENT DISTRICT NO. 63 — NEWPORT ISLAND WHEREAS, the City Council of the City of Newport Beach (the "City ") 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. 63 (Newport Island), hereinafter referred to as the "Assessment District" and WHEREAS, limited obligation improvement bonds (the "Bonds ") were issued pursuant to the Improvement Bonds Act of 1915 upon the security of the unpaid assessments levied in the Assessment District, and annual installments were billed on the secured property tax bill for each parcel having an unpaid assessment; and WHEREAS, proceeds of the annual installments were deposited into a redemption fund for the Bonds (the "Redemption Fund "), from which moneys were disbursed to pay the principal of and the interest on the Bonds; and WHEREAS, the principal of and the interest on the Bonds has been paid in full, and there remains a balance in the Redemption Fund which is not needed for the payment of any obligation on the Bonds, and by this resolution this City Council wishes to direct the disbursement of said balance and the closure of the Redemption Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the ,estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the Redemption Fund to the City's general fund. SECTION 3. That, as to each parcel for which an installment was billed on the secured property tax roll for the last fiscal year in which such installments were so billed, the proportionate share of the balance remaining in the Redemption Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the last billed installments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the Redemption Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk 1663916.1 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE REDEMPTION FUND OF ASSESSMENT DISTRICT NO. 66 — EAST NEWPORT WHEREAS, the City Council of the City of Newport Beach (the "City') 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. 66 (East Newport), hereinafter referred to as the "Assessment District;" and WHEREAS, limited obligation improvement bonds (the "Bonds ") were issued pursuant to the Improvement Bonds Act of 1915 upon the security of the unpaid assessments levied in the Assessment District, and annual installments were billed on the secured property tax bill for each parcel having an unpaid assessment; and WHEREAS, proceeds of the annual installments were deposited into a redemption fund for the Bonds (the "Redemption Fund "), from which moneys were disbursed to pay the principal of and the interest on the Bonds; and WHEREAS, the principal of and the interest on the Bonds has been paid in full, and there remains a balance in the Redemption Fund which is not needed for the payment of any obligation on the Bonds, and by this resolution this City Council wishes to direct the disbursement of said balance and the closure of the Redemption Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the Redemption Fund to the City's general fund. SECTION 3. That, as to each parcel for which an installment was billed on the secured property tax roll for the last fiscal year in which such installments were so billed, the proportionate share of the balance remaining in the Redemption Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the last billed installments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the Redemption Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk 1663916.1 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE REDEMPTION FUND OF ASSESSMENT DISTRICT NO. 71 — BALBOA BOULEVARD WHEREAS, the City Council of the City of Newport Beach (the "City ") 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. 71 (Balboa Boulevard), hereinafter referred to as the "Assessment District;" and WHEREAS, limited obligation improvement bonds (the 'Bonds ") were issued pursuant to the Improvement Bonds Act of 1915 upon the security of the unpaid assessments levied in the Assessment District, and annual installments were billed on the secured property tax bill for each parcel having an unpaid assessment; and WHEREAS, proceeds of the annual installments were deposited into a redemption fund for the Bonds (the `Redemption Fund "), from which moneys were disbursed to pay the principal of and the interest on the Bonds; and WHEREAS, the principal of and the interest on the Bonds has been paid in full, and there remains a balance in the Redemption Fund which is not needed for the payment of any obligation on the Bonds, and by this resolution this City Council wishes to direct the disbursement of said balance and the closure of the Redemption Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the Redemption Fund to the City's general fund. SECTION 3. That, as to each parcel for which an installment was billed on the secured property tax roll for the last fiscal year in which such installments were so billed, the proportionate share of the balance remaining in the Redemption Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the last billed installments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the Redemption Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk 1663916.1 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DIRECTING DISPOSITION OF BALANCE IN THE REDEMPTION FUND OF ASSESSMENT DISTRICT NO. 72 — BALBOA COVES WHEREAS, the City Council of the City of Newport Beach (the "City ") 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. 72 (Balboa Coves), hereinafter referred to as the "Assessment District;" and WHEREAS, limited obligation improvement bonds (the "Bonds') were issued pursuant to the Improvement Bonds Act of 1915 upon the security of the unpaid assessments levied in the Assessment District, and annual installments were billed on the secured property tax bill for each parcel having an unpaid assessment; and WHEREAS, proceeds of the annual installments were deposited into a redemption fund for the Bonds (the "Redemption Fund "), from which moneys were disbursed to pay the principal of and the interest on the Bonds; and WHEREAS, the principal of and the interest on the Bonds has been paid in full, and there remains a balance in the Redemption Fund which is not needed for the payment of any obligation on the Bonds, and by this resolution this City Council wishes to direct the disbursement of said balance and the closure of the Redemption Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That an amount equal to the estimated administrative expense of providing for the disbursements directed by this resolution shall be transferred from the Redemption Fund to the City's general fund. SECTION 3. That, as to each parcel for which an installment was billed on the secured property tax roll for the last fiscal year in which such installments were so billed, the proportionate share of the balance remaining in the Redemption Fund after the transfer directed by the foregoing Section 2 of this resolution shall be disbursed in cash to the person or persons currently owning said parcel, with the proportionate shares to be determined in the same proportions as the last billed installments bear to one another. SECTION 4. That, following the disbursements directed by the foregoing Sections 2 and 3 of this resolution, the Redemption Fund shall be closed. ADOPTED this day of 2011. Mayor ATTEST: City Clerk 1663916.1