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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)