1993 CC ADJ MIN JUL 28 - Laserfiche WebLink

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ADJOURNED CITY COUNCIL MEETING A'BL'Y 28, 1993 In accordance with notice duly and legally given, an Adjourned Regular Meeting of the City Council of the City of Colton was held on the above given date at 4.*00 p.m., in the Council Chambers of City Ball, Mayor Gonzales presiding. ROLL CALL Councilmembers present were Bennett, Bennett, Rios, Cisneros, Coos, Beltran and Mayor Gonzales. Also present were City Manager Young, and City Clerk Ramos. BUDGET SESSION: Debt Service Finance Director Acevedo reviewed each of the debt service areas the City must pay and the budgets for the Community Facilities Districts. Director Acevedo stated. the CFD Commission reviewed the budgets for each district and it is in concurrence with what is being recommended. Councilmember Bennett stated she had heard that the escalated clauses had not been accepted. Finance Director Acevedo responded that only CFD 88.1 and 59.1 would not be enacting escalators. Councilmember Beltran asked[ Director Acevedo to tell him about CFDs. Finance Director Acevedo said the CFDs came about with the enactment of the Mello -Roos Act. The Act is a financing vehicle by which the developers can provide infrastructure for raw land. A District is formed on approval of the City Council and by election of the property owners. The property owners are assessed the costs of the debt incurred for the infrastructure on a pro rata basis. The actual assessments are determined by classes of parcels, i.e., .residential, commercial, vacant. Each parcel, by class, is then assigned its pro rata share of debt. Councilmember Beltran inquired about delinquencies, where does that leave the City. Director Acevedo replied the City has no legal obligation to pay the liens. The City, in the absolute ultimate could, by taking a delinquency to court and foreclosure, sell the property. The City's Attorneys are working on this process now. There are some delinquencies on the west side and in CFD 90-1. Moved by Councilmember Sandoval, seconded by Councilmember Bennett to, tentatively approve the Debt Service Budget.