|CITY COUNCIL AGENDA ITEM NO. 9
Meeting Date: August 26, 2008
Subject/Title: Adopt a resolution approving the General Obligation Bond Tax
Rate for the 2008/09 tax roll and directing submittal to Contra Costa County
Prepared by: Kerry Breen, Business Services Manager
Submitted by: Pamela Ehler, City Treasurer/Director of Finance and
Adopt a Resolution approving the General Obligation Bond Tax Rate for the
2008/09 tax roll and directing submittal to Contra Costa County.
On February 12, 2002, the City Council passed Resolution No. 2468,
authorizing issuance and sale of not to exceed $6,000,000 principal amount
of bonds, approving the form of the paying agent agreement, authorizing the
execution and delivery of a bond purchase agreement by and among the City of
Brentwood, the Brentwood Infrastructure Financing Authority and RBC Dain
Rauscher and approving the form and distribution of any official statement
and authorizing certain actions in connection with the issuance, sale and
delivery of such bonds.
On August 28, 2007, the City Council passed Resolution No. 2007-192
approving the submittal of the General Obligation Bond Tax Rate of .0032% to
Contra Costa County for the 2007/08 tax roll.
On November 6, 2001, voters passed Measure J authorizing the City of
Brentwood to issue General Obligation Bonds in the amount of six million
dollars principal amount to finance the construction, acquisition, and
improvement of a new police station, and all costs incident thereto.
The Bond Official Statement states that the City Council of the City has the
power and is obligated to annually levy ad valorem taxes for payment of
principal and accreted value of and interest of the Bonds upon all property
within the City subject to taxation by the City (except certain personal
property which is taxable at limited rates), without limitation of rate of
amounts. It further states that the annual tax rate will be based on the
assessed value of taxable property in the City. Fluctuations in the annual
debt service on the Bonds and the assessed value of taxable property in the
City may cause the annual tax rate to fluctuate.
Based on the estimated debt service requirements for fiscal year 2008/09 and
the assessed value certification provided by Contra Costa County, a tax rate
of .0039% will need to be assessed against all taxable property in the City
of Brentwood. The tax rate percentage has increased this year for the first
time. The increase is required being that the tax rate percentage is
multiplied by assessed valuation to arrive at the total tax. With assessed
valuations declining over the past year, the higher tax rate will simply be
applied to lower property values to arrive at a total tax dollar amount
which is consistent with previous years. Contra Costa County requires the
City Council to pass a resolution annually setting the tax rate for the
General Obligation Bond.
The estimated amount required to pay the debt service for fiscal year
2008/09 is $314,024 which this levy is expected to generate.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING THE
GENERAL OBLIGATION BOND TAX RATE FOR THE 2008/09 TAX ROLL AND DIRECTING
SUBMITTAL TO CONTRA COSTA COUNTY
WHEREAS, the voters of the City of Brentwood approved the issuance of
General Obligation Bonds for a new police station on November 6, 2001; and
WHEREAS, the City Council passed Resolution No. 2468, authorizing issuance
and sale of not to exceed $6,000,000 principal amount of bonds on February
12, 2002; and
WHEREAS, for fiscal year 2007/08 a tax rate of .0032% was assessed; and
WHEREAS, based on the estimated debt service requirements for fiscal year
2008/09 and the assessed value certification provided by Contra Costa County
a tax rate of .0039% will need to be assessed against all taxable property
in the City of Brentwood.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of
Brentwood, hereby approves the tax rate of .0039% to be levied against all
taxable property within the City for the 2008/09 General Obligation Bond
debt service, and authorizes submittal of this resolution to Contra Costa
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at
a regular meeting held on the 26th day of August 2008 by the following vote: