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Home My WebLink About2003-11-04 - AGENDA REPORTS - FINANCING OPPORTUNITIES (2)CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM TO: ayor,M tubers of the City Council FROM: Irab ul amp, ity n er DATE: November 4, 2003 SUBJECT: PARK, RECREATION, AND OPEN SPACE FINANCING OPPORTUNITIES RECOMMENDED ACTION City Council receive presentation on park, recreation, and open space financing opportunities and provide staff with direction. BACKGROUND The Parks, Recreation, and Community Services Commission has long been interested in the concept of funding for additional park facilities, amenities, and open space to meet the need of reducing the City's parkland deficit by means other than the City's General Fund. Several discussions about alternative funding and a study session took place at Commission meetings last year. In addition, Councilmember Ferry expressed interest in funding park facilities using non -General Fund dollars. As a response to this inquiry, staff researched park financing opportunities and a memo was provided to the Council on April 21, 2003. Furthermore, in May 2003, the Commission received an overview of the alternative funding options and after discussion, the Commission moved unanimously to pursue alternative financing such as a bond, conduct a new poll of the community, and to ensure public participation is aggressively pursued. Today, we would like to present the City Council with information on alternative funding options available to the City, allow the Council the opportunity to directly ask questions of the City's bond counsel, and recommend that the Council provide staff with direction. ALTERNATIVE ACTION Other action as determined by the City Council. Agend ►#em := FISCAL IMPACT No fiscal impact with this action. ATTACHEMENT Attachment 1— Park Financing Opportunities Memo to City Council dated April 21, 2003 Attachment 2 — Commission Action Memo dated May 29, 2003 KP:EG:ada s\pang\Council Agendas 5 study sessions\park bond study session I 1-4-03 doc CITY OF S._NTA CLARITA INTEROFFICE ]1IEMOR:NNDUM TO Smith and Councilmembers �/�� FROM: en Puishamp, C°(tv M ager DATE: April 21, 2003 SUBJECT: PARK FINANCING OPPORTUNITIES At the request of Councilmember Ferry, staff has researched and prepared information regarding park financing opportunities for the City Council's review and consideration. Specifically, staff was asked to provide an overview of the financing option that provides the City with the greatest flexibility to acquire real property, construct park facilities, fund the procurement of park amenities, such as playground equipment, and fund future/ongoing maintenance needs. In reviewing potential park financing options with the City's Bond Counsel, staff believes that the most Mable financing mechanism would be a Mello -Roos (Communoty Special District) Special Tax Bond. A Special Tax Bond represents a land -secured financing option that levies a special tax on properties located within a pre -determined district. The process to consider a Special Tax Bond would take approximately ten months to one year. This process would require the City to hold a public hearing and conduct a special election of all registered voters residing within the district boundaries. The special election could be conducted by mailed ballot. The information below provides the City Council with an overview of this funding option. ° City may determine boundaries of district; need not be contiguous. ° Broad discretion on design of tax and exemptions; may not be based on value of property. Public hearing required; if majority protest, may not raise issue for one year. ° Requires 2/3 affirmative vote of registered voters voting in the election. Election process takes time. Collection usually on tax rolls. ° Can be levied for improvement with useful life of five years or more or for services. To summarize, a Special Tax Bond provides a funding mechanism that allows the City to assess residents in the district for costs associated with parkland acquisition, capital improvement of parks, and the annual service or maintenance of parks. This financing option could allow the City and County of Los Angeles to execute a Joint Attachment 1 PARK FINANCING OPPORTUNITIES April 21, 2003 Page 2 Powers Agreement JPA) for the purpose of creating a benefit district that could encompass areas within both the incorporated City limits, as well as portions of the unincorporated County. At this time, staff estimates that the cost of forming a district and circulating mailed ballots to consider a Special Tax Bond to finance parks could range from X60,000 to $100,000. Costs associated with this financing option include the creation of the Special District, the development of a special tax formula and a community, facilities report, public relations and polling services, and tabulation of the mailed ballot election process. Costs associated with a Special Tax Bond are recoverable if voters residing in the district approve the measure. Finally, the Special Tax Bond provides the City with some flexibility in determining the geographic make-up of the district and who participates in the election process. As the requirements of the Special Tax Bond process allows for non-contiguous boundaries, the City has the ability to not include certain areas. Areas that the Council could wish to exclude may range from low-income portions of the City to areas where residents are already paying some type of parks -related special tax or fees. Finally, while a 2/3 vote is needed for passage of the measure, the Special Tax Bond allows the City to conduct a mailed ballot election process that requires participation among only registered voters residing within the district boundaries. While the City could choose to conduct a more encompassing election, this financing mechanism does not require a vote of all landowners within the district. In conclusion, passage of the measure would require a supporting vote of at least 2/3 of the register voters residing in the distnct who vote. If a 2/3 approval were achieved, the Special Tax would be levied on all properties encompassed within the District. If you have any questions regarding the information provided by staff, I can be reached at (661) 255-4905. KRP:KNMhds KMT/s,,.al ProJec�Parks Bwd lofo cc: Steve Stark, Director of Administrative Services Rick Gould, Director of Parks, Recreation & Community Services TO: FROM: DATE: SUBJECT: CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM Ken Pulskamp, City Manager Rick Gould, Director of Parks, Recreation, and Community May 29, 2003 Servic s il I PARKS AND RECREATION COMMISSION ACTION ON ALTERNATIVE FUNDING OPTIONS The Parks and Recreation Commission has long been interested in the concept of funding by means other than the City's General Fund for additional park facilities and amenities, especially to meet the need of reducing the City's parkland deficit. In October 2003, the Parks and Recreation Commission held a study session where they received information on alternative funding options to address park and open space community needs. At the May 8, 2003 Parks and Recreation Commission meeting, the Commission received an overview of the alternative funding options that included General Obligation Bonds, Special Taxes, and Special Assessment Financing. After discussion, the Commission moved unanimously as follows: 1. Recommend to the City Council to approve staff recommendation for a Special Tax Bond specific to parks and open space. (this recommendation was outlined in the attached memorandum dated April 21, 2003 from Ken Pulskamp to City Council) 2. Provide funding to conduct a new poll of the community. 3. Ensure public participation is aggressively pursued by staff. We have been coordinating with Steve Stark, Administrative Services Director, on the alternative funding options. At this time we are forwarding this recommendation to the City Manager's Office for direction from the City Council on next steps. Please let me know what direction you would like staff to proceed with; I am available if you have any questions. RG:EG: "I`cy'Cou1dW 1 m cn,.aoc Attachment: Memorandum on Park Financing Opportunities dated April 21, 2003 cc: Steve Stark, Administrative ScrN ices Director Attachment 2