HomeMy WebLinkAbout2011-65 - ITCC Fund, Subaccount of Assessment District No. 74 - Island AvenueRESOLUTION NO. 2011 -65
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
DIRECTING DISPOSITION OF BALANCE IN THE ITCC FUND, A SUBACCOUNT OF THE
IMPROVEMENT FUND OF ASSESSMENT DISTRICT NO. 74 — ISLAND AVENUE
WHEREAS, the City Council of the City of Newport Beach (the "City') has conducted
proceedings and completed construction for certain works of improvement in a special
assessment district pursuant to the terms and provisions of the Municipal Improvement Act of
1913 (being Division 12 of the Streets and Highways Code of the State of California), said
special assessment district known and designated as Assessment District No. 74 (Island
Avenue), hereinafter referred to as the "Assessment District ;" and
WHEREAS, each of the individual assessments levied in the Assessment District
included a component on account of a potential payment obligation commonly known as the
"Income Tax Component of Contribution" or "ITCC," and any property owner who chose to
prepay the assessment on any parcel owned by such owner was given the option to prepay the
ITCC but was not obligated to do so in order to avoid having annual installments billed on
account of the assessment; and
WHEREAS, the proceeds of such optional ITCC prepayments were deposited into a
subaccount of the Improvement Fund for the Assessment District identified as the "ITCC Fund;"
and
WHEREAS, since the unpaid ITCC component of unpaid assessments was not included
in determining the principal amount of the limited obligation improvement bonds (the "Bonds ")
issued on account of the unpaid assessments of the Assessment District, the moneys on
deposit in the ITCC Fund consist solely of such optional cash prepayments and the accrued
interest allocated thereto; and
WHEREAS, it is the policy of the City that, following the expiration of seven years after
the issuance of the Bonds without receipt by the City of a demand for the ITCC payment, the
moneys on deposit in the ITCC Fund should be disbursed and the ITCC Fund closed; and
WHEREAS, more than seven years have elapsed since the Bonds of the Assessment
District were issued and no demand for the ITCC payments has been received, and it is
therefore appropriate to provide for disbursement of the balance in the ITCC Fund and to close
the ITCC Fund;
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
SECTION 1. That the above recitals are all true and correct.
SECTION 2. That an amount equal to the estimated administrative expense of
providing for the disbursements directed by this resolution shall be
transferred from the ITTC Fund to the City's general fund.
SECTION 3. That, as to each parcel for which the ITCC component of the assessment
on said parcel was prepaid in cash, the proportionate share of the
balance remaining in the ITCC Fund after the transfer directed by the
foregoing Section 2 of this resolution shall be disbursed in cash to the
person or persons currently owning said parcel, with the proportionate
shares to be determined in the same proportions as the original cash
prepayments bear to one another.
SECTION 4. That, following the disbursements directed by the foregoing Sections 2
and 3 of this resolution, the ITCC Fund shall be closed.
ADOPTED this 28th day of June, 2011.
ATTEST:
City Clerk
Mayor
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby
certify that the whole number of members of the City Council is seven; that the foregoing resolution,
being Resolution No. 2011 -65 was duly and regularly introduced before and adopted by the City
Council of said City at a regular meeting of said Council, duly and regularly held on the 28th day of
June, 2011, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Hill, Gardner, Selich, Curry, Daigle, Mayor Henn
Noes: None
Absent: None
Recuse: Rosansky
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 29th day of June, 2011,
yPa L D Nwr-�-
City Clerk
Newport Beach, California
(Seal)