1992 CC MIN Aug 18 - Laserfiche WebLink

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expanded --more bonds can be issued so that more money can be raised. There may be instances where ten million dollars are authorized and only five million may be issued. Mr. Lewis stated it was his intent to follow through with plan to review each community facilities district and meet with the residents and obtain feedbag. Mr. Sigaty returned to the podium to ask questions on the percentage of the assessment. City Manager Legis informed that there are two components to the assessment. One component is for the debt service and the other is a service component allowing the City to recover for services delivered, i. e., police and fire services. The 2% increment is meant to compensate the cities a small portion for increased casts. Services go up more than 2% a year. Mr. Sigaty stated that "We pay other taxes." When subdivison is approved, the revenue receivable within the structure is not sufficient therefore a CFD is created to pay development costs and pay services. Mr. Sigaty repeated, "We're still paying additional tax." Mayor Gonzales asked City Manager Lewis and staff what the impact would be to the budget if the 2�'�`� assessment was dropped this year. Financial Services Manager Young advised that it can be dropped. The impact would be $4,000. Mayor Gonzales stated he would 'move to remove the 2% assessment increase from all of the CFDs for this year. Councilrnember Cisneros reminded that this was her idea and her suggestion from the beginning. Mayor Gonzales invited her to second the motion. Motion by Mayor Gonzales, seconded by Councilmember Cisneros, to remove the 2% assessment from all of budgets for the community facilities districts. Unanimous vote. Mayor Gonzales addressed the issue of performance bond. Public Works Director Mutton reported that regarding Tract 14404 (planning) that the City does hold a performance bond to guarantee the work. We need legal counsel or Pacific First National Bank to complete the process. There is notice dated ,dune 20, 1992 advising the bank of the foreclosure on the bonds. There are two letters: One to the bank and one to the lienholders. Mr. Hutton read the letter dated 6/20/92 identifying remaining obligations due for completion and foreclosure action. He read letter dated 7/20/92 to the bond company advising that public improvements have not yet been completed. Mayor Gonzales stated he would move to authorize staff to foreclose on the performance bond to allow the new developer to come in. The 'motion is seconded by Councilmember Cisneros. Unanimous vote. City Manager Lewis reminded Council on the need for allowance of applicable time in addition to notice of foreclosure. Public Works Director button assured that appropriate time of thirty (30) days has been provided. 5