City of Piedmont
COUNCIL AGENDA REPORT
DATE: August 15, 2022
TO: Mayor and Council
FROM: Sara Lillevand, City Administrator
SUBJECT: Consideration of a Resolution Requesting and Authorizing the County of Alameda to Levy a Tax on All Real and Personal Property in the City of Piedmont as a Voter Approved Levy for the General Obligation Bonds Issued Pursuant to a General Election Held November 3, 2020 for the Piedmont Community Pool
RECOMMENDATION
Adopt the attached resolution requesting and authorizing the County of Alameda to levy a tax on all real and personal property in the City of Piedmont as a voter-approved levy for the General Obligation Bonds issued pursuant to the authorization given at a general election held November 3, 2020 for the Piedmont Community Pool.
BACKGROUND
On November 3, 2020, the voters of the City of Piedmont passed Measure UU, authorizing the issuance of Bonds in an amount not to exceed $19,500,000 to finance the Community Pool Project, and to levy an ad valorem property tax sufficient to pay such bonds. In December 2021, the City sold the full amount of the Bonds.
Measure UU estimated the maximum tax rate to be $26.20/$100,000 of assessed valuation over 30 years. The required tax rate for FY 2022-23 is $23.17/$100,000 of assessed valuation. This is lower than the maximum rate. This rate will produce sufficient revenues to pay the required debt service during the fiscal year.
FISCAL CONSIDERATIONS
There is no impact to the General Fund. Debt service for the General Obligation Bonds will be paid from this tax levy on all real and personal property in the City of Piedmont, which is accounted for in Fund 140 (Aquatics Bond Debt Service). Staff estimates the tax rate will generate approximately $1,280,000 for collection in FY 2022-23. As of June 30, 2022, the outstanding bond balance is $19,500,000.
By: Michael Szczech, Finance Director
RESOLUTION NO. _____
REQUESTING AND AUTHORIZING THE COUNTY OF ALAMEDA TO LEVY A TAX ON
ALL REAL AND PERSONAL PROPERTY IN THE CITY OF PIEDMONT AS A VOTER
APPROVED LEVY FOR THE GENERAL OBLIGATION BONDS ISSUED PURSUANT TO A GENERAL ELECTION HELD NOVEMBER 3, 2020 FOR THE PIEDMONT
COMMUNITY POOL
WHEREAS, on November 3, 2020, voters of the City of Piedmont passed Measure UU, authorizing the issuance of bonds in the amount not to exceed $19,500,000 (the "Bonds") to finance the costs of municipal improvement projects of the City to prevent the permanent closure of, and replace, the Piedmont Community Pool, and to make improvements to adjacent areas (the “Improvements”), and
WHEREAS, Ordinance 762 N.S., approved by the City Council on September 7, 2021, authorized and directed the sale of not to exceed $19,500,000 aggregate principal amount of City of Piedmont, California. General Obligation Bonds; and the levying of an ad valorem tax; and WHEREAS, for the purpose of paying the principal of and interest on the Bonds, the City of Piedmont must authorize the County of Alameda to levy and collect annually each year an ad valorem tax in an amount sufficient to pay principal and interest of the bonds; and WHEREAS, Measure UU estimated the maximum tax rate to be $26.20/$100,000 of assessed valuation over 30 years; and
WHEREAS, the required tax rate for Fiscal Year 2022-23 is $23.17/$100,000 of assessed valuation;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Piedmont hereby authorizes the County of Alameda to levy a tax on all real and personal property in the City of Alameda as a voter-approved levy for the General Obligation Bonds Issued pursuant to the General Election held November 3, 2020; and
BE IT FURTHER RESOLVED by the City Council of the City of Piedmont that the debt service for the $19,500,000 General Obligation Bonds will be paid from a tax levy on all real and personal property in Alameda of $23.17/$100,000 of assessed value for Fiscal Year 2022-23. [END OF RESOLUTION]