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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: November 26, 2014
SUBJECT:
An Ordinance Authorizing and Providing for the Abatement of General Obligation Bond Tax Levies, 2014 Tax Levy Extension
PURPOSE:
To obtain the City Council's approval of a proposed ordinance that would serve to abate a portion of the city's 2014 property tax levies for general obligation (GO) bond debt service.
BACKGROUND:
The city currently has GO bonds outstanding from 10 separate issues (not including library issues). The enabling ordinances related to these bonds provide for the automatic levy of property taxes to satisfy annual debt service requirements. These automatic tax levies are in place notwithstanding our regular annual city property tax levies.
For several years, the city has abated all or a portion of its property tax levies for GO debt service because we have had other revenue sources available to cover required debt service.
DISCUSSION:
For the 2014 tax levy year (taxes payable in 2015), we are again in a position to abate a large portion of the debt service associated with the city's GO bond issues. The total amount of this abatement would be $10,327,100.37. The debt service for the library's portion of the Series 2011 GO Bonds will not be abated but will be included in the property tax levy. The Series 2011 bonds refunded the Series 2001A and Series 2003A GO Bonds, which were originally issued to finance the expansion of the Eola Branch Library. Also, the debt service for the Series 2012A GO Bonds, issued to finance the main library construction project, will not be abated. The debt service for the 2011 (partial) and 2012A GO Bonds will be part of the library's component of the levy.
The sources of funds that permit this abatement are listed below. Also shown are the sources of funds that supported our debt service abatements in the prior two years.
(See attached table).
IMP...
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