CITY MANAGER' S REPORT ITEM 4. 12
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE THE RESOLUTION DECLARING THE
REMAINING REDEMPTION FUND BALANCE TO BE
SURPLUS, ORDERING THE DISPOSITION OF SUCH
SURPLUS, AND APPROVING THE CLOSEOUT
ANALYSIS REPORT PREPARED BY NBS FOR THE
NORTH HARLAN WATER IMPROVEMENT DISTRICT
99- 01
RECOMMENDATION: Adopt a Resolution Declaring the Remaining Redemption Fund Balance to be Surplus, Ordering
the Disposition of such Surplus, and Approving the
Closeout Analysis Report Prepared by NBS for the
North Harlan Water Improvement District 99- 01
SUMMARY:
The City retained NBS to review and prepare a District Closeout Analysis Report ( the Closeout Report") for the North Harlan Water Improvement District 99- 01 (" the Assessment District"). This Closeout Report identifies $ 47, 816 of Surplus funds and recommends the disposition of the remaining funds in accordance with applicable laws and bond documents.
Following a complete analysis of all funds associated with the Assessment District, the City has elected to transfer the Assessment District's Redemption Fund surplus to the City' s General Fund, pursuant to Section 8784 of the Streets and Highway Code.
The Resolution presented declares the remaining Redemption Fund balance to be surplus, orders the disposition of such surplus, and approves the Closeout Analysis Report prepared by NBS for the District.
BACKGROUND:
The City of Lathrop formed the Assessment District in 2000 pursuant to the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code and bonds were issued pursuant to the Improvement Bond Act of 1915, Division 10 of the California Streets and Highways Code.
Limited Obligation Improvement Bonds, North Harlan Water Improvement District 99- 01 Series 2000 ( the Bonds") totaling $ 990, 885 were issued by the City to finance the construction of water main improvements and water service connections to the City' s water system ( the Project").
The City has confirmed that the Project for the Assessment District has been completed, and all remaining debt associated with the Bonds were retired on September 2, 2020.
CITY MANAGER' S REPORT PAGE 2
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
CLOSEOUT ANALYSIS REPORT FOR THE NORTH HARLAN WATER
IMPROVEMENT DISTRICT 99- 01
REASON FOR RECOMMENDATION:
The Project for the Assessment District has been completed and all remaining Bonds were retired. Upon adoption of the attached Resolution, the funds associated with the Assessment District will be closed and the Assessment District will be closed out.
FISCAL IMPACT:
None. The cost of the Closeout Report and any associated administrative fees are paid from the Assessment District funds.
ATTACH M ENTS:
A. A Resolution Declaring the Remaining Redemption Fund Balance to be Surplus, Ordering the Disposition of such Surplus, and Approving the Closeout Analysis Report prepared by NBS for the District Note - Closeout Report is available for review in the City Clerk' s Office.
CITY MANAGER' S REPORT PAGE 3
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
CLOSEOUT ANALYSIS REPORT FOR THE NORTH HARLAN WATER
IMPROVEMENT DISTRICT 99- 01
APPROVALS:
1 1.
Cari Jame Date
Director Finance
z- Z Zo z.3
Salvador Navarrete Date
City Attorney
T'• • Z3
Ste en J Salvatore Date
City Manager
RESOLUTION NO. 23 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP DECLARING
THE REMAINING REDEMPTION FUND BALANCE TO BE SURPLUS, ORDERING
THE DISPOSITION OF SUCH SURPLUS, AND APPROVING THE CLOSEOUT
ANALYSIS REPORT PREPARED BY NBS FOR THE NORTH HARLAN WATER IMPROVEMENT DISTRICT 99- 01
WHEREAS, the District Council ( the Council") of the City of Lathrop ( the City") has, by previous resolution and related actions, undertaken proceedings to form the North Harlan Water Improvement District 99- 01 ( the Assessment District"); and, WHEREAS, the Council authorized the issuance of the limited obligation improvement bonds for the Assessment District pursuant to the Refunding Act of 1984 for the Improvement Bond Act of 1915 to finance certain water system improvements the " Improvements"); and,
WHEREAS, the Assessment District has undertaken such Improvements as authorized in the formation Resolution for the Assessment District; and, WHEREAS, the Council is satisfied that the Improvements for the Assessment District have been fully completed; and,
WHEREAS, there exists an unencumbered balance in the Redemption Fund for the Assessment District; and,
WHEREAS, the Council now wishes to make provision for the determination of surplus funds for their appropriate disposition pursuant to the Streets and Highways Code of California.
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. The Council hereby declares the remaining balance of the Redemption Fund of the Assessment District to be surplus.
Section 3. The Council hereby orders the disposition of said surplus funds according to Section 8784 of the Streets and Highways Code of California as specified in the Closeout Analysis Report prepared by NBS for the Assessment District.
Section 4. The Council hereby approves the Closeout Analysis Report prepared by NBS for the Assessment District.
The foregoing resolution was passed and adopted this 8th day of May 2023, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney CITIf QF LATH QR
District Closeout Analysis Report For:
Limited Obligation Improvement Bonds
North Harlan Water Improvement District 99- 01
Series 2000
February 2023
Prepared by:
Corporate Headquarters
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TABLE OF CONTENTS
1. Executive Summary........................................................................................................ 1
2. Funds Analysis................................................................................................................ 2
3. Disposition of Funds ....................................................................................................... 3
3. 1 Redemption Fund...................................................................................................... 3
4. Notice of Completion...................................................................................................... 4
5. Resolution...................................................................................................................... 5
6. Final Debt Service Schedule ............................................................................................ 6
1. EXECUTIVE SUMMARY
The City of Lathrop( the" City') formed the North Harlan Water Improvement District 99- 01 (" the Assessment District") in 2000 pursuant to the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code( the" Act") and bonds were issued pursuant to the Improvement Bond Act of 1915, Division 10 of the California Streets and Highways Code( the" Code").
Limited Obligation Improvement Bonds, North Harlan Water Improvement District 99- 015eries 2000( the Bonds") totaling$ 990, 885 were issued by the City to finance the construction of water main improvements and water service connections to the City' s water system ( the" Project").
The City has confirmed that the Project has been completed, and all remaining debt associated with the Bonds were retired on September 2, 2020.
The City retained NBS to review and prepare a District Closeout Analysis Report( the " Closeout Report") for the Assessment District. This Closeout Report summarizes the recommendations for the disposition of the remaining funds in accordance with applicable laws and bond documents.
Following a complete analysis of all funds associated with the Assessment District, the City has elected to transfer the Assessment District' s Redemption Fund surplus to the City' s General Fund, pursuant to Section 8784 of the Streets and Highway Code.
xt
North Harlan Water Improvement District 99- 01 Series 2000 District Closeout Analysis Report 1
2. FUNDS ANALYSIS
The following table provides the fund analysis prepared for the Assessment District. The analysis reflects the December 16, 2022, fund balances associated with the Assessment District:
Improvement Fund Balance as of 12/ 16/ 2022 0. 00
Ending Balance 0. 00
Cost of Issuance Fund Balance as of 12/ 16/ 2022 0. 00
Ending Balance 0. 00
Reserve Fund Balance as of 12/ 16/ 2022 0. 00
Ending Balance 0.00
Redemption Fund Balance as of 12/ 16/ 2022 60, 315. 77
Ending Balance 60, 315. 77
Total Funds Available 60, 315. 77
Less: NBS Fee for District Closeout Analysis Report 12, 500. 00) Less: City Fee for Assessment District Closeout 0. 00
Less: Amount Transferred to the City' s General Fund 47, 815. 77) a
North Harlan Water Improvement District 99- 01
District Closeout Analysis Report 2
3. DISPOSITION OF FUNDS
3. 1 Redemption Fund
Pursuant to Section 8784 of the Code, a surplus in the Redemption Fund that remains after the retirement of all outstanding bonds " shallfirst be applied to repayment to the city of any special taxes levied by itfor the purpose of advancingfunds under Part 13( commencing with Section SSOOJ less its recovery on the sale or redemption of the properties assessed, and also of any costs incurred by it under this division. The remainder shall be repaid in accordance with the provisions ofSection 8783 to persons paying supp/emental assessments, if any, and the balance may be proportionately credited upon the final installments due upon the assessments securing the bonds and repaid to those persons whose assessments have been previously paid or may be transferred to the general fund ofthe city." The City is opting to transfer the remaining balance in the Redemption Fund to the City' s General Fund.
Upon the transfer to the City' s General Fund, the Redemption Fund should be closed.
North Harlan Water Improvement District 99- 01
District 3 Closeout Analysis Report
4. NOTICE OF COMPLETION
The following page contains the Notice of Completion of Public Improvements signed by the Director of Public Works.
yY`
North Harlan Water Improvement District 99- 01
District Closeout Analysis Report 4
NOTICE OF COMPLETION OF WATER MAIN IMPROVEMENTS
City of Lathrop
North Harlan Water Improvement District 99- 01
Notice is hereby given that the water main improvements financed by the North Harlan Water Improvement District 99- 01( the" Assessment District") as fully described in the Official Statement for said Assessment District have been completed.
The City of Lathrop established the Assessment District to finance the construction and installation of a water main and related facilities on Harlan Road and Roth Road.
Reference is made to the Official Statement for said Assessment District for a complete description of the improvements constructed.
The Director of Public Works certifies that the above recitals are true and correct.
M 1 G 1AE L 1< t N 3 l e Z023
Director of Public Works D t
City of Lathrop
5. RESOLUTION
The following pages contain the Resolution Declaring Surplus prepared for the Assessment District reflected in this Closeout Report to be passed by the District Council.
North Harlan Water Improvement District 99- 01
District Closeout Analysis Report 5
THE CITY OF LATHROP DISTRICT COUNCIL
RESOLUTION NO.
RESOLUTION DECLARING THE REMAINING REDEMPTION FUND BALANCE TO
BE SURPLUS, ORDERING THE DISPOSITION OF SUCH SURPLUS, AND
APPROVING THE CLOSEOUT ANALYSIS REPORT PREPARED BY NBS
FOR THE DISTRICT
WHEREAS, the District Council ( the " Council") of the City of Lathrop ( the " City") has, by previous resolution and related actions, undertaken proceedings to form the North Harlan Water Improvement District 99- 01 ( the " Assessment DistricY'); and, WHEREAS, the Council authorized the issuance of the limited obligation improvement bonds for the Assessment District pursuant to the Refunding Act of 1984 for the Improvement Bond Act of 1915 to finance certain water system improvements ( the Improvements"); and,
WHEREAS, the Assessment District has undertaken such Improvements as authorized in the formation Resolution for the Assessment District; and, WHEREAS, the Council is satisfied that the Improvements for the Assessment District have been fully completed; and,
WHEREAS, there exists an unencumbered balance in the Redemption Fund for the Assessment District; and,
WHEREAS, the Council now wishes to make provision for the determination of surplus funds for their appropriate disposition pursuant to the Streets and Highways Code of California.
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. The Council hereby declares the remaining balance of the Redemption Fund of the Assessment District to be surplus.
Section 3. The Council hereby orders the disposition of said surplus funds according to Section 8784 of the Streets and Highways Code of California as specified in the Closeout Analysis Report prepared by NBS for the Assessment District.
Section 4. The Council hereby approves the Closeout Analysis Report prepared by NBS for the Assessment District.
PASSED AND ADOPTED THIS day of 2023, by the following vote of the Council of the City of Lathrop.
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk
City of Lathrop
6. FINAL DEBT SERVICE SCHEDULE
The following page contains the Final Debt Service Schedule.
North Harlan Water Improvement District 99- 01
District Closeout Analysis Report 6
City of Lathrop
North Harlan Water Improvement District 99- 01
Current Debt Service Schedule
Bonds Dated: 07/ 12/ 2000
Bonds Issued: $ 990, 885. 00
Payment Interest Payment Annual Call
Date CUSIP Rate Balance Principal Interest Total Total Premium Status 03/ 02/ 2001 6. 2500% $ 990, 885. 00 0. 00 $ 43, 200. 27 $ 43, 200. 27 0. 00 3. 0OOO o Paid 09/ 02/ 2001 6. 2500 990, 885. 00 15, 885. 00 33, 808. 91 49, 693. 91 92, 894. 18 3. 0000 Paid 03/ 02/ 2002 6. 2500 975, 000. 00 00 33, 312. 50 33, 312. 50 00 3. 0000 Paid 09/ 02/ 2002 6. 2500 975, 000. 00 30, 000. 00 33, 312. 50 63, 312. 50 96, 625. 00 3. 0000 Paid 03/ 02/ 2003 6. 2500 945, 000. 00 00 32, 375. 00 32, 375. 00 00 3. 0000 Paid 09/ 02/ 2003 6. 2500 945, 000. 00 30, 000. 00 32, 375. 00 62, 375. 00 94, 750. 00 3. 0000 Paid 03/ 02/ 2004 6. 2500 915, 000. 00 00 31, 437. 50 31, 437. 50 00 3. 0000 Paid 09/ 02/ 2004 6. 2500 915, 000. 00 30, 000. 00 31, 437. 50 61, 437. 50 92, 875. 00 3. 0000 Paid 03/ 02/ 2005 6. 2500 885, 000. 00 00 30, 500. 00 30, 500. 00 00 3. 0000 Paid 09/ 02/ 2005 6. 2500 885, 000. 00 35, 000. 00 30, 500. 00 65, 500. 00 96, 000. 00 3. 0000 Paid 03/ 02/ 2006 6. 2500 850, 000. 00 00 29, 406. 25 29, 406. 25 00 3. 0000 Paid 09/ 02/ 2006 6. 2500 850, 000. 00 35, 000. 00 29, 406. 25 64, 406. 25 93, 812. 50 3. 0000 Paid 03/ 02/ 2007 6. 2500 815, 000. 00 00 28, 312. 50 28, 312. 50 00 3. 0000 Paid 09/ 02/ 2007 6. 2500 815, 000. 00 40, 000. 00 28, 312. 50 68, 312. 50 96, 625. 00 3. 0000 Paid 03/ 02/ 2008 6. 2500 775, 000. 00 00 27, 062. 50 27, 062. 50 00 3. 0000 Paid 09/ 02/ 2008 6. 2500 775, 000. 00 40, 000. 00 27, 062. 50 67, 062. 50 94, 125. 00 3. 0000 Paid 03/ 02/ 2009 6. 2500 735, 000. 00 00 25, 812. 50 25, 812. 50 00 3. 0000 Paid 09/ 02/ 2009 6. 2500 735, 000. 00 40, 000. 00 25, 812. 50 65, 812. 50 91, 625. 00 3. 0000 Paid 03/ 02/ 2010 6. 2500 695, 000. 00 00 24, 562. 50 24, 562. 50 00 3. 0000 Paid 09/ 02/ 2010 5182528G5 6. 2500 695, 000. 00 45, 000. 00 24, 562. 50 69, 562. 50 94, 125. 00 2. 0000 Paid 03/ 02/ 2011 7. 1250 650, 000. 00 00 23, 156. 25 23, 156. 25 00 2. 0000 Paid 09/ 02/ 2011 7. 1250 650, 000. 00 50, 000. 00 23, 156. 25 73, 156. 25 96, 312. 50 1. 0000 Paid 03/ 02/ 2012 7. 1250 600, 000. 00 00 21, 375. 00 21, 375. 00 00 1. 0000 Paid 09/ 02/ 2012 7. 1250 600, 000. 00 50, 000. 00 21, 375. 00 71, 375. 00 92, 750. 00 0. 0000 Paid 03/ 02/ 2013 7. 1250 550, 000. 00 00 19, 593. 75 19, 593. 75 00 0. 0000 Paid 09/ 02/ 2013 7. 1250 550, 000. 00 55, 000. 00 19, 593. 75 74, 593. 75 94, 187. 50 0. 0000 Paid 03/ 02/ 2014 7. 1250 495, 000. 00 00 17, 634. 38 17, 634. 38 00 0. 0000 Paid 09/ 02/ 2014 7. 1250 495, 000. 00 60, 000. 00 17,634. 38 77,634. 38 95, 268. 76 0. 0000 Paid 03/ 02/ 2015 7. 1250 435, 000. 00 00 15, 496. 88 15, 496. 88 00 0. 0000 Paid 09/ 02/ 2015 7. 1250 435, 000. 00 60, 000. 00 15, 496. 88 75, 496. 88 90, 993. 76 0. 0000 Paid 03/ 02/ 2016 7. 1250 375, 000. 00 00 13, 359. 38 13, 359. 38 00 0. 0000 Paid 09/ 02/ 2016 7. 1250 375, 000. 00 65, 000. 00 13, 359. 38 78, 359. 38 91, 718. 76 0. 0000 Paid 03/ 02/ 2017 7. 1250 310, 000. 00 00 11, 043. 75 11, 043. 75 00 0. 0000 Paid 09/ 02/ 2017 7. 1250 310, 000. 00 70, 000. 00 11, 043. 75 81, 043. 75 92, 087. 50 0. 0000 Paid 03/ 02/ 2018 7. 1250 240,000. 00 00 8, 550. 00 8, 550. 00 00 0. 0000 Paid 09/ 02/ 2018 7. 1250 240, 000. 00 75, 000. 00 8, 550. 00 83, 550. 00 92, 100. 00 0. 0000 Paid 03/ 02/ 2019 7. 1250 165, 000. 00 00 5, 878. 13 5, 878. 13 00 0. 0000 Paid 09/ 02/ 2019 7. 1250 165, 000. 00 80, 000. 00 5, 878. 13 85, 878. 13 91, 756. 26 0. 0000 Paid 03/ 02/ 2020 7. 1250 85, 000. 00 00 3, 028. 13 3, 028. 13 00 0. 0000 Paid 09/ 02/ 2020 518252B59 7. 1250 85, 000. 00 85, 000. 00 3, 028. 13 88, 028. 13 91, 056. 26 0. 0000 Paid Grand Total: 990, 885. 00 $ 880, 802. 98 $ 1, 871, 687. 98 $ 1, 871, 687. 98 Copyright O 2012 by NBS Page 1 of 1 12/ 29/ 2022 04: 53: 18PM