Recommendation to adopt resolution establishing an annual special tax of $0.15 per square-foot for Community Facilities District No. 2007-2 for commercial properties in Belmont Shore for Fiscal Year 2019 and authorizing the Los Angeles County Auditor-Controller to be included on the 2018-19 Secured Tax Roll.  (District 3)
Next item is the one that you're announcing. Next item 19. Item 19 is a report from Economic Development and Financial Management. Recommendation to adopt a resolution establishing an annual special tax for Community Facility. District Number 2007-24 commercial properties in Belmont Shore for fiscal year 2019 and authorizing the L.A. County Auditor Comptroller to be included on the 2018 19 Secure Tax Rule District three. Here we have a motion on a second. Any public comment? CNN Councilwoman Pryce. I. First item I know there was this issue was brought to the parking commission and there was some concern. So could you maybe talk through why this increase is being proposed? Councilmember Price Yes, good evening. And I'm going to ask Eric Romero, our business development. Coordinator who works with the Parking Commission, to talk a little bit about the need for this. Assessment. And we. Also have our treasurer, David Nakamoto, who's here with us tonight as well with regard to the establishment and administration. At the CFTC. Good evening, Mayor, and. Members of the city council. My name is Eric Romero. And so, yes, we've the rate for the CFD has been set at about $0.12 per commercial square. Foot since. 2006. And. Mainly due to the increase of the the cost. Associated with. Administrating the different payments associated with paying down the bond and also the increase in the debt. Annual payments. We're recommending an increase to that to the rate, which is the. First increase in. About 12 years. And if there's anything else that you would. Like to add, Treasurer. That. Okay. Are there any have there been any concerns on your end in terms of people not paying? And is this is this what we've referred to as the salaries? Yes, it is. So are there some concerns with people not paying the lowest tax? So we. Pose that question to the consultant that we work with to pay down the. Debt service. And as of. Today, there are only delinquent installments related to the 20 1718 billing and. Only represent about 8.63%. Of the 20 1718 billing. So there are no delinquencies for any prior fiscal year. Delinquencies in this district are considered to be low historically, and they generally do not last longer than one year. Okay. How are we going to ensure moving forward that we're capturing all the payments and that the the property owners who are paying their assessments in a timely fashion are not shouldering the burden of those who aren't fulfilling their own self-assessment obligations. The county treasurer and tax collector. Sent out delinquency notices just before the end of the fiscal year to notify the delinquent property owners that their delinquencies will become. Defaulted on July one. The CFT 27 does to the Miller, who does have a foreclosure covenant that. Calls for the city to take action against delinquent parcels if an individual parcel is delinquent for. 20 $500 or more, or if overall. Delinquency percentage. Exceeds 5%, the city can take action prior to these conditions being met. The typical procedure for dealing with delinquencies includes sending a reminder letter, then a demand letter, then removing installments from the textual then or foreclosure letter, then turning over delinquencies to a foreclosure attorney. We typically wait for delinquencies to be substantial before moving towards foreclosure, and that. Process. Involves fees for our consultant. Members. The county and a foreclosure attorney. Have we done any sort of analysis of the standard property size on these assessments to determine what the monetary impact of. A The increase would be the .03 cents. Do we know how much more it would be to a standard property there? Their annual assessment. The range may be. Councilmember Price I'd like to field that question. When the community facilities district was formed. It was by the vote of the property owners. And at that time, they they voted to self-assess themselves. An engineering report was prepared at that time that allowed for a maximum of $0.66 per square foot. We are far from that level at this point. Okay, great. Thank you. I appreciate that. It was my goal to get you to talk at a council meeting. So there we go. Congratulations. It only took four years. Thank you very much. I appreciate it. Thank you. And man, Eric is you're like the new like CFD, like master. That was some good, like, information there. So. Did you ever think you'd be an expert on CFD? Just a few years ago before he joined us? I did not, but I'm very excited to learn. I never thought you'd be either. So awesome and. Well, no, we just met another capacity's vice. It's Mayor Andres. Capacity. No. Okay. That was very thorough. So no public comment, cause we did it already. So please cast your votes. Motion carries.