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HomeMy WebLinkAboutAGENDA REPORT 2011 0316 CC REG ITEM 10I ITEM 10.1. r;ity Council hPiae ing MOORPARK CITY COUNCIL �'.-"�� -�-,- AGENDA REPORT ar�`c�" - ���T�/ TO: Honorable City Council - FROM: Ron Ahlers, Finance Director DATE: March 9, 2011 (City Council meeting of March 16, 2011) SUBJECT: Consider Mr. Damian Lindo's Refund Request from the Moorpark Highlands Community Facilities District (CFD) 2004-1 BACKGROUND Mr. Damian Lindo paid-off the Special Tax for the Moorpark Highlands CFD 2004-1 in 2007 on APN 513-0-100-605 which is located at 13891 Eaton Hollow in Moorpark Highlands. Mr. Lindo believes that he is owed a refund due to the September 2010 decrease in Bond Principal (bond call). Willdan Financial Services has performed a refund calculation that amounts to $14,138.84. Staff is prepared to issue this refund to Mr. Damian Lindo from the Moorpark Highlands CFD 2004-1. DISCUSSION Mr. Lindo has requested a refund from the City due to reduction in bond principal that came about from bond improvement proceeds that were not utilized since the school project was terminated. The bond call occurred on September 1, 2010 in the amount of $8,395,000. At Mr. Lindo's request, Willdan Financial Services prepared a new prepayment calculation based on the current conditions of the district after the $8,395,000 bond call. If any credit is due it would be based on the variance between the original amount paid (2007) and the current pay-off amount. The new prepayment calculation is $59,444.54. The 2007 prepayment calculation which Mr. Lindo paid in 2007 was $73,583.38. Therefore, the variance is $14,138.84. See Attachment 1. Keep in mind that this is a special circumstance since the school project was cancelled. Generally refunds are not given to property owners that payoff their special taxes in advance. Property Owners forfeit their rights to any future credits if a special tax is paid off before maturity. Staff recommends that the City Council authorize the refund request per the reason cited in this report. 302 Honorable City Council March 16, 2011 Page 2 FISCAL IMPACT The City will issue an order to the Fiscal Agent of the Moorpark Highlands CFD 2004-1 to issue a check in the amount of $14,138.84 to Mr. Damian Lindo. STAFF RECOMMENDATION (Roll Call Vote) Authorize staff to process the refund request. Attachment: 1. Willdan Calculation of the refund 303 City of Moorpark Community Facilities District No.2004-1 Prepayment of Special Tax for Facilities Valid through December 31,2010 APN 513-0-100-605 Tract 5045-4 Bldg/Unit Zone 3 Bldg SF 3,165 Plan Type LU Class 5 Address 13891 Eaton Hollow Step 1 Assigned Special Tax $4.97700 Backup Special Tax S5.24506 Step 2 Total Assigned Special Tax $2.917.555 Total Backup Special Tax $3.436,500 Parcel's Share of Total Assigned Special Tax 0 17061/. Parcel's Share of Total Backup Special Tax 0 1526% Step 3 Parcel's Share of Special Tax Greater of Step 2 0 1706% Outstanding Bonds"' $25.045.000 Bond Redemption Amount $42,723.78 Step 4 Redemption Premium 3%of bond redemption $1,281.71 Step 5 8 6 Future Facilities Amount $0.00 Step 7 Interest on Bonds to Be Called $000 Step 8 Reinvestment Expectation Bond Redemption Amount+Redemption Premium $44.00549 Three Month T-bill rate i'I 0 127% Daily Interest $0 153 Days until bond call date 12131/10-3/1/11 60 Total $9 19 Step 9 Defeasance Amount Step 7 Amount $000 Step 8 Amount $9 19 ($9.19) Step 10 Administrative Fees and Expenses $75000 Less.Prepaid amount $500.00 Step 11 Reserve Fund Credit Reserve Fund requirement prior to bond call $1.761.003 76 Reserve Fund requirement after bond call $1,757.885 00 Difference $3.118 76 Current Reserve Fund Balance(9010) $1.761.122 57 Reserve Fund requirement after bond call $1,757.885 00 Difference $3.237 57 Lesser of the above ($3,118.76) Step 12 Special Tax prepayment $41,377 54 Revised Special Tax Prepayment' Add Special Tax Prepayment since prior payoff dateixl Fiscal Year 2007r2008 $4,97700 Fiscal Year 200821109 $4,977.00 Fiscal Year 20092010 $4,977.00 Fiscal Year 20102011 $3,136.00 Total $18,067.00 Total Special Tax Prepayment Including Missed Levies $59,444.54 Less Prior Prepayment made Property Owner -$73,583.38 Balance Due From(To)Property Owner -$14,138.84 rms cakualon,et*cU p,epaymenr,eom,ed had Pope,ty O.rrc.,ewe,nea m me D-1 Impugn 9/v 10 it dal pl Me bond can from urpius Improveme,l Fulls "'0UV,a ,19 pi—pal as of Sepiembe,2 7010 less pincipal nciuded n I"f Y 10/11 spec'al tax levy 'Three month ileasury all Rate as publsned by 11+e Wall Slreei Jou,al o­as of 10rr21lC `Amourxs necessary to egualue p,We,ty ownef with diners n the Drst-p-r 10 9iwo Do call from suipus Improvement FurWs Prepared by Wllldan Financial Services 1 304