REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution of the City Council of the City of Santa Clara Regarding Unclaimed Special Assessment District Funds and Related Budget Amendment [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
The City has historically formed special assessment districts to finance the construction of public improvements and public utility infrastructure in primarily commercial and industrial developments through the issuance of bonds. These improvements include streets, sidewalks, lighting, and utilities. Capital improvements in a special assessment district provide a special benefit to parcels in the district and, thus, are paid for by benefitting property owners.
DISCUSSION
Finance staff reviewed various funds associated with all of the City's special assessment districts and identified 39 expired funds and special assessment districts with positive cash balances, including one fund related to a former redevelopment project. These districts were originally formed as long ago as 1958 and as recently as 1996. The effort involved an extensive review of the funds, a review of past Council actions and other legal guides relevant to these districts, and the development of a plan for closing out the funds. The Finance Department also entered into an engagement with Jones Hall, A Professional Law Corporation, to assist with the analysis, provide legal guidance, and draft the accompanying resolution.
All improvements to be financed by these districts have been completed, the City no longer levies assessments within any of these districts, and any debt secured by the assessments levied within these districts has been retired. In some cases, the Council has taken prior actions declaring residual fund balances with regard to certain of these districts to be surplus.
Due to the passage of time since these districts became inactive and the purposes of these districts were accomplishe...
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