HomeMy WebLinkAbout1978-07-19 OCR COUNTY SANITATION DISTRICTS TELEPHONES:
AREA CODE 714
OF ORANGE COUNTY, CALIFORNIA 9 6 2-2 91-241 1
�`�� 9621
1
P. O. BOX B127, FOUNTAIN VALLEY, CALIFORNIA 9270E
lO844 ELLIS AVENUE (EUCLID OFF-RAMP, SAN DIEGO FREEWAY)
July 13, 1978
NOTICE OF ADJOURNED REGULAR MEETING
DISTRICTS NOS, 1, 2, 3, 5, 6, 7 & 11
WEDNESDAY, JULY 191 1978 - 6:00 P.M.
10844 ELLIS AVENUE
FOUNTAIN VALLEY, CALIFORNIA
Pursuant to adjournment of the regular meeting of July 12,
1978, the Boards of Directors of County Sanitation Districts
Nos. 1, 2, 3, 5, 6, 7 and 11 of Orange County, California,
will meet in an adjourned regular meeting at the above hour
: and date.
Se etary
JWS:rb
y BOARDS OF DIRECTORS
County Sanitation Districts Post Office Box 8127
of Orange County, California 10844 Ellis Avenue
Fountain Valley, Calif., 92708
Telephones:
Area
540-2910
14JOI y BOARDS 962-2411
'I FINAL AGENDA
ADIOURII�"ENTS POSTED-
ADJOURNED REGULAR MEETING C0'P >a :•i!LEac�E..Y••••..
JULY 19, 1978 — 6:00 P.M. FlUES SFT UP....... ........
;tESOL hT!.i!S CERTIFIED.:
(1) Pledge of Allegiance and Invocation 1�Ip;IT E5 %fRiTTEN......... :
(2) Roll Call MINUTES F:LED............ ..
(3) Appointment of Chairmen pro tem, if necessary
(4) Consideration of motion to receive and file minute excerpts, if any 0—ti rF .. .8
(5) Public Hearing on proposed flat rate special assessment for sewer ser ce and immediate availability for funding
1978-79 operating and capital budgetary requirements:
Open hearing
(b
y Report on proposed funding method(s)
(c) Consideration of ;notion directing Secretary to enter written comments received into record of hearing
(d) Public comment
Persons in attendance wishing to be heard should complete Request to Present Oral Comment at Public Hearing
form (blue form) and submit to the clerk at the table marked "SUBMIT ORAL CO,\flIENT REQUEST FORM HERE". Oral
comments will be heard in order of submittal of the form tc the clerk
OR
Persons in attendance wishing to submit a written statement in protest or support of the proposed assessment
may do so by completing the Written Statement Regarding Proposed Assessment form (salmon-colored form) and
submit to the clerk at the table marked "SUBMIT WRITTEN STATEMENT FORINI HERE". Your statement will become
a part of the official record of the hearing.
(e) Close public hearing 61=-51f
(6) Consideration of_moti-on_Lo introduce revised ordinance of each respective-Ris`trict establishing sewer service and
immediate avaii'ability cha ges, and to read said ordinance of each respective District by title only and waiving
reading of,each ordinance in i�eatirety: —
DISTRICT TITLE
1 Ordinance No. 104 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
2 Ordinance No. 205 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
3 Ordinance No. 306 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
5 Ordinance No. 510 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
6 Ordinance No. 604 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
7 Ordinance No. 717 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
11 Ordinance No. 1105 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
r7) Consideration of action on report re flat rate special assessment for sewer service and immediate availability
charges
..a
(8), Other-business and-communications, if any
(9) Consideration of motion to adjourn 1 p•. G-44
TLW:pj
A7/19/78
ORDINANCE NO. (REVISED)
AN ORDINANCE ESTABLISHING FLAT RATE SPECIAL ASSESS-
MENTS FOR SEWER SERVICE AND Ir1MEDIATE AVAILABILITY
The Board of Directors of County Sanitation District No.
of Orange County, California, does hereby ORDAIN as follows:
Section 1: Purpose. The purpose of this Ordinance is
to establish a system of sanitary sewer service assessments,
together with immediate availability assessments required to be
paid by property owners for the services and facilities furnished
by the District in connection with its sanitation treatment works
and sewage collection system. Pursuant to the provisions of
Public Law 92-500, and Public Law 95-217, commonly referred to
respectively as the Federal Water Pollution Control Act Amend
ments of 1972, and the Clean Water Act of 1977, the District is
mandated thereby to provide a system of user charges.
Revenues derived under the provisions of this Ordinance
shall be used for the acquisition, construction, reconstruction,
maintenance and operation of the sewage collection facilities
and wastewater treatment and disposal facilities of the District,
together with costs of administration, debt retirement and
provisions for necessary reserves.
Section 2: Annual Sewer Service Assessments. Each parcel
of real property located within the District which is improved
with structures designed for residential, commercial or industrial
use, shall pay a flat rate special assessment for sewer service
in the sum of $ provided, however, that upon the Orange
County Auditor allocating to this District, pursuant to `..�
Government Code Section 26912, a portion of the ad valorem
real property tax levied pursuant to California Revenue and
Taxation Code Section 2237, the flat rate special assessment
for sewer service shall be in the sum of $
Section 3 : Application of Ordinance. The provisions of
this Ordinance shall be in addition to Ordinance No. of
the District establishing regulations for use of District' s
sewage facilities, including provisions for payment of charges
or fees related thereto.
Section 4 : Exceptions. The provisions of this Ordinance
shall apply to all properties in the District, and no exception
shall be provided for properties otherwise deemed exempt by
provisions of the State Constitution or statute, such as
properties owned by other public agencies or charitable founda-
tions, except as expressly provided in Section 5 hereof.
Section 5 : Exemptions - Rebates. In recognition that
certain legal parcels of real property exist within the District
which are undeveloped, unsewered or unsewerable, it is the intent
of the District that said parcels be totally or partially exempt
from the payment of charges as prescribed herein, all in ac-
cordance with the following:
A. Unsewerable parcels shall be entitled to a 100% rebate
of the charges assessed and levied;
B. Unsewered parcels developed with a structure shall be
entitled to a 66-2/3% rebate of the charges assessed and levied;
-2-
i
C. Unsewered parcels undeveloped with a structure shall
be entitled to a 66-2/3% rebate of the charges assessed and
levied; and
D. Improved parcels owned by public agencies but which
are not developed with a structure thereon, such as parks,
and NOT containing any sewer connection shall be entitled to
a 100% rebate of the charges assessed and levied.
Any property owner may submit a claim for rebate to the
District on the forms prescribed and provided by the District
within one .hundred twenty (120) days after the annual property
tax bills are mailed by the Orange County Tax Collector.
All applications for rebate will be determined by the General
Manager of the District and his decision shall be final.
For purposes of this Section, "unsewerable" parcels shall
be defined to include, but not limited to, those that are used
exclusively for private roadways or walkways; a single structure
on two or more lots; a carport or garage lot separate from an
adjacent residential structure on a separate lot; remnant
parcels from public right-of-way which are less than the local
code re minimum building lot size.
Section 6: Credits Against Other Charges Due. The annual
flat rate special assessment for sewer service established by
the provisions of this Ordinance, shall be applied as a credit
against use charges imposed upon a parcel of property pursuant
to Ordinance No. Establishing Regulations for Use of
District Sewerage Facilities (Industrial Wastewater Ordinance) ,
as amended.
-3-
Section 7 : Assessment Based on Fiscal Year. The flat
rate special assessments for sewer service and immediate sewer L.J
Availability established by this Ordinance, shall be for the
fiscal year commencing July 1 and terminating June 30 , and there
shall be no proration of such assessments.
Section 8 : Pursuant to the authority granted by California
Health and Safety Code Section 5473, all assessments established
herein shall be collected on the County Tax Roll in the same
manner, by the same persons and at the same time as, together
with and not separately from, its general taxes. The County
Tax Collector is authorized and hereby ordered to make said
collections in accordance with the terms and conditions of
agreements between the County of Orange and this District.
Section 9 : Severability. If any provisions of this
Ordinance or the application to any person or circumstance is
held invalid by order of court, the remainder of the Ordinance
or the application of such provision to other persons or in
other circumstances shall not be affected.
Section 10: Effective Date. This Ordinance shall become
effective immediately upon its adoption by vote of two-thirds
of the members of the Board.
Section 11: The Secretary shall certify to the adoption
of this Ordinance and shall cause the same to be published in a
newspaper of general circulation in the District as required by
law.
-4-
COUNTY SANITATION DISTRICTS
of ORANGE COUNTY.CALIFORNIA
PO BOX 8127
10844 ELLIS AVENUE
July 19, 1978 FOUNTAIN VALLEY.CALIFORNIA 92708
(714)540-2910
(714)962-2411
PUBLIC HEARING JULY 19, 1978 - 6:00 P.M. RE PROPOSAL TO ESTABLISH
AND COLLECT FLAT RATE SPECIAL ASSESSMENTS FOR SEWER SERVICE AND
IMMEDIATE AVAILABILITY ON TAX ROLL
In the past, the Sanitation Districts have received the bulk
of their revenues from a special assessment for sewer service
against all real property and improvements in the Districts based
on the ad valorem property rolls of the County. The cost to the
homeowner whose property is assessed at $13,000 - $15,000, has been
$3 to $5 per month, depending on the District, for sewer service
exclusive of maintenance of local sewers. This has been collected
via the County tax bill.
With the passage of the Jarvis/Gann Initiative (proposition 13) ,
the question arises: Does this provision prohibit the Districts
from levying the special assessments that have been levied in all
prior years?
While the Jarvis/Gann Initiative did not bar this procedure,
the actions of the State Legislature in subsequent legislation
(Senate Bill 2212 enacted on June 30) barred the use of instituting
any charge based on property valuation other than the allowable 1%
ad valorem levy.
Under consideration are several proposals to institute a flat
rate special assessment. These are attached.
The Sanitation Districts operate the third largest wastewater
(sewage) treatment system on the West Cost. The capital costs of
present day facilities are $229 million; additional construction
required during the next 8 years will double this figure. The
Districts collect, treat, and dispose of wastewater from 408,000
residential, commercial and industrial connections serving 1.5
million citizens in the 23 cities in the Orange County metropolitan
area.
it
Ad valorem assess- In spite of the increased demands
ao ment rate for sewer service and additional
39 facilities required by higher
State and Federal environmental
3e standards, the combined average
„ 37 annual variable ad valorem special
36 assessment rate has steadily de-
clined from 421 /$100 assessed
35 valuation in 72-73 to 31fi/$100
assessed valuation in 77-78. The
34 Districts' Boards of Directors
33 have reduced the budget require-
32 ments to lighten the property-
owners' burden by $2.2 million
31 I ? 1 for this fiscal year (78-79) .
73 75 76 77
Y5F I S PA L '7Y E A7R
Annual revenues come from variable rate ad valorem special
assessments, connection fees, induatrial use fees, annexation
�./ charges and State and Federal construction grants. The annual
expenditures break down approximately 10% for operations and
maintenance, 87% for current and planned treatment plant and
trunk sewer construction, 3% for bonded debt retirement.
( COUNTY SANITATION DIj-'1ICT NO. (ALL) 7/18/78
PRELIMINARY STATEMENT' OF! AOJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
MILLIONS OF DOLLARS
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER CONSTRUCTION RESERVES $38 $77 $70 $61 $39
REVENUE
Assessments @ $42.85/parcel 17 17 17 17 17
Construction Grants 14 19 31 36 29
Loan in Aid of Construction 1
Industrial User Fees & Connection Fees 4 3 3 3 3
Interest E Other Income 5 3 3 3 2
TOTAL FUNDS AVAILABLE $129 $119 $124 $120 $90
EXPENDITURES
Trunk Sewer s Pump Station Construction $11 $ 6 $ 4 $ 6 $ 3
Treatment Plant Construction 30 30 43 51 38
Treatment Plant Mtce & Operation 8 11 13 21 26
Trunk Sewer Mtce S Operation & Other 3 2 3 3 4
TOTAL EXPENDITURES $52 $49 $63 $81 $71
Carry-Over Construction Reserves 1 $77 $70 $61 $39 $19
Funds Required 25 32 40 36 36
Fund Balance or (Deficit) S52 $38 $21 $ 3 ($17)
ALL DISTRICTS
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSNE11T FOR SEWER SERVICE
& IMMEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
& Reserves 41 ,662,824 25,933,200 (15,729,624)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves 61 ,058,000 85,075,000 24,017,000
Joint Operating (Treatment Plant) Expense 6,817,884 8, 153,000 1 ,335, 116
District Operating & Other Expenditures 7,009,700 8,548,800 1 ,539, 100
Distribute Upper Basin Joint Works
Equity to other CSD 's 1 , 141 ,000 1 , 141 ,0`"
TOTAL REQUIREMENTS 116,543,408 128,851 ,000 12,302,592
Estimated Revenue
Federal-State Grants 14, 152,000 13,759,000 ( 393,000)
Sale of Capacity Rights 660,000 1 ,213,000 553,000
Connection Fees & Industrial User Charges 3,858,000 4,236,000 378,000
Interest & Misc. Income 3,629,637 3,517,000 ( 112,637)
Other 3,003,000 1 ,500,000 (1 ,503,000)
Carry-over 71 ,836,318 87,461 ,000 15,624,682
TOTAL OTHER REVENUE 97, 138,955 111 ,636,000 14,547,A5
Amount to be raised by Assessment 19,409,453 17, 165,000 ( 2,244,453)
Estimated Number of Parcels in the
District 400,560 Y.,.
Estimated Annual Flat Rate Special
Assessment for Sewer Service &
immediate availability $42.85 per parcel
(Average)
Ch. 292 — 14—
fund reserves" shall not include:
(1) Noncash assets such as stores, inventory, property and
buildings, or other investments.
(2) Any aniounts for self-insurance, for contractual obligations,or
for reserves established by a governing board policy adopted prior
to July 1, 1978. THIS SECTION IS EXCERPTED
(3) Any amounts restricted by law or court order. FROM SB-15 WHICH WAS
(4) Any amounts committed to a capital outlay project approved
prior to June G, 1978, by the board of supervisors. ADOPTED BY THE STATE
(f) For the purpose'of this subdivision,the amount of property tax LEGISLATURE AND SIGNED INTO
collections pursuant to paragraphs (1) and (2) of Section 2270 of the LAW BY THE GOVERNOR ON
Revenue and Ta-xation Code for the purpose of making annual JUNE 24, 1978 , SUBSEQUENT
payments for the interest and piincipal on outstanding general TO PASSAGE OF PROPOSITION 13 .
obligation bonds or other indebtedness approved by the voters prior
to July 1, 1978.
(g) Funds distributed for this section shall be given first for police It is my opinion that this
and fire programs in order not to jeopardize the health and safety of Section when combined
the community. The legislative body shall ensure that the level of with Government Code
poiice and fire protection programs actually provided in the 1977-78 Section 26912 , will provide
fiscal year shall be continued in 1.178-79. for the Districts to
Nothing in this section shill prevent the legislative body from
reviewit:g and esiablishing its police and fire protection program in receive an apportionment
the 1S78-79 fisc al year in a manner which will make such program of the tax levy for 1978/79
more efficient and effective. only. In subsequent years ,
(h) The Cont.oller shall estimate the amounts required to be the Districts will not
`determined pursuant to subdivision (b) (3). receive any portion of the
The Controller shall determine the actual amounts and make a 1% ad valorem property tax
reconciliation with the April 10, 1979, disiribution. levy.
(x) The amount allocated in subdivision (a) shall be reduced by
an amount equal to the dollar.amount o;any cost-of-living increase
in aid payments under the Aid to families with Dependent Childreny/ �
program, as provided in Section 35 of this bill. ,
CHAPTEit 3. SPECIAL DISTRICTS Thomas L. Woodruff
General Counsel
Article 1. General Provisions and Definitions
16270. The Legislature finds and declares that many special
districts havr, tl,c ability to raise revenue through user charges and
fees and that their ability to raise revenue directly from the properly
tax for district operations has been eliminated by Article XllI A of the
California Constitution. It is the intent of the Legislature that such
districts rely on user fees and charges for raising revenue due to the
lack of the availability of property tax revenue: after the 197&--79
fiscal year. Such districts are encouraged to begin the transition to
user fees and charges during the 1978-79 fiscal year.
16271. As used in this chapter:
(a) "Governing body"me. ms the board of supervisors except that
96 4M
JUNE 14, 1978
AVAILABLE ALTERNATIVES FOR FUNDING AGENDA ITEM ,','5
1978-79 OPERATING CAPITAL FUNDING REQUIREMENTS
JARVIS-GANN WILL REDUCE THE DISTRICTS' CURRENT ( 1977-78) $19.4 MILLION TAX LEVY
BY A MINIMUM OF 58% IF THE DISTRICTS RECEIVE A PRO-RATA SHARE OF THE TAXES ALLOWED TO
BE COLLECTED BY THE TAX LIMITATION INITIATIVE, TO A MAXIMUM OF 100% IF THE DISTRICTS
RECEIVE NO TAXES UNDER THE ALLOCATION METHOD YET TO BE DECIDED BY THE STATE LEGISLATURE.
ALTERNATIVE METHODS OF FUNDING THE DISTRICTS SEWAGE COLLECTION, TREATMENT AND
DISPOSAL ACTIVITIES FOR 1978-79 ARE AS FOLLOWS:
I - FUND 1978-79 REQUIREMENTS FROM CONSTRUCTION RESERVE FUNDS (ASSUMES NO PRO-RATA
SHARE OF 1% TAX ALLOCATION)
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - FUNDS RESERVED FOR CONSTRUCTION TO COMPLY WITH
FEDERAL AND STATE LAWS WOULD BE DIVERTED FROM
CAPITAL TO OPERATING
- NEEDED AND/OR REQUIRED CONSTRUCTION PROJECTS
MAY BE DELAYED
- FUI4DS WOULD HAVE TO BE REPAID TO CONSTRUCTION
RESERVES IN FUTURE YEARS REQUIRING DISPROPOR-
TIONATELY HIGHER CHARGE IN THOSE YEARS
- LOSS OF INTEREST EARNINGS
II - FUND 1978-79 REQUIREMENTS BY ESTABLISHING A FLAT RATE USER/AVAILABILITY CHARGE
AGAINST EACH PARCEL OF PROPERTY TO BE COLLECTED BY THE TAX BILL_
- MAJOR ADVANTAGES - PROVIDES FINANCING FOR 1978-79 OPERATING AND
CAPITAL REQUIREMENTS WITHOUT SUBSTANTIAL USE
OF CONSTRUCTION RESERVES
- STABILIZES PROPERTY OWNER CHARGES AND DISTRICTS
CASH FLOW
- ACCOMMODATES PHASING OF USER CHARGE/REVENUE PROGRAM
REQUIRED TO BE IMPLEMENTED IN 1979-80 BY EPA AND SWRCB
MAJOR DISADVANTAGES - REQUIRES PUBLIC NOTICE A14D HEARINGS IN A RELATIVELY
SHORT TIME FRAME TO IMPLEMENT
- DISTRICTS 14ILL INCUR ADDED ADMINISTRATIVE OVERHEAD
COST TO IMPLEMENT (ESTIMATED AT BETWEEN $75,000 TO
$105,000) PLUS ADDED CHARGE TO COLLECT ON TAX BILL
- POSSIBLE PUBLIC BACKLASH IN VIEW OF JARVIS-GANN MANDATE
- FLAT USE CHARGE IS NOT EQUITABLE
III - CONT114UE 1.0 LEVY FULL TAX RATE NECESSARY TO FUND 1978-79 REQUIREMENTS ON THE BASIS
OF PREVIOUS COUNTY COUNSEL. OPINION THAT SANITATION DISTRICT LEVY IS A "SPECIAL
ASSESSMENT". SAID OPINION MAY THUS EXCLUDE THE DISTRICTS FROM APPLICATION OF
JARVIS-GANN.
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - COUNTY COUNSEL HAS NOT YET RULED ON THIS OPINION
RELATIVE TO JARViS-GANN
- MAY RESULT IN LITIGATION AND THE COURTS MAY FIND
AGAINST THIS INTERPRETATION
COUNTY SANITATION DISTRICTS
of ORANGE COUNTY.CALIFORNIA
PO BOX8127
July 19 , 1978 10844 ELLIS AVENUE
FOUN TAIN VALLE Y.CAI 11'ORNIA 02708
(714)540•210IV
(714)962.241 I
SUPPLEMENTAL ALTERNATIVES FOR FUNDING
1978-79 OPERATING/CAPITAL FUNDING REQUIREMENTS
ON JUNE 24 , THE GOVERNOR SIGNED SENATE BILL 154 , ALSO KNOWN AS CHAPTER
292 , IMPLEMENTING THE JARVIS/GANN INITIATIVE. ONE OF THE PROVISIONS
OF SENATE BILL 154 INDICATES THAT THE DISTRICT WILL RECEIVE A PRO RATA
SHARE (APPROXIMATELY $7 MILLION) OF THE 1% TAX ALLOCATION IN 1978-79
ONLY. IT ALSO INDICATES THAT ENTERPRISE SPECIAL DISTRICTS , SUCH AS
THE SANITATION DISTRICTS, ARE- EXPECTED TO RAISE THEIR REVENUES THROUGH
USER CHARGES AND FEES IN FUTURE YEARS AND WILL NOT RECEIVE ANY TAX
ALLOCATION AFTER THIS FISCAL YEAR.
The following two supplemental funding alternatives consider
receipt of tax funds for the 1978-79 fiscal year .
IA - This proposal assumes that the District will receive
its pro rata share of the 1% tax allocation provided
under the Jarvis/Gann Amendment for the 1978-79 fiscal
year and defers the implementation of a flat rate user
fee to the 1979-80 fiscal year. Approximately $10 . 2
million in District funds reserved for construction
would be diverted from capital accounts to operating
accounts as required during 1978-79 to fund operations .
Based on the requirements of the Districts , this pro-
posal would anticipate a flat rate user charge next
year as follows :
Alternative IA
Proposed 7 -79 Estimated 79-80
DISTRICT NO. Flat Rate Flat Rate*
J.J.J.
1 NONE $ 46.04
2 NONE 45. 18
3 NONE 49.62
5 NONE 67. 14
6 NONE 46. 11
7 NONE 41 .60
11 NONE 64.24
(continued)
BOARD ACTIONS REQUIRED:
(1) Adopt proposal IA which eliminates
the need for a flat rate user fee
for the 78-79 fiscal year
(2) Declare intent of the Boards of
Directors to institute a user
fee revenue program effective
July 1 , 1979
IIA - This proposal assumes the anticipated share of the 1%
property tax allocation for 78-79 as indicated in Proposal
IA, but implements a user charge per parcel this year as
listed below.
This proposal , which incorporates a flat fee and ad valorem
taxes , provides a substantial degree of equity.
Proposed User Charge
78-79 79-80
Fixed Estimated
Dist. #1 24. 98 39 . 79
Dist. #2 22 . 70 39 . 50 WIWO
Dist. #3 26 . 79 42 . 92
Dist. #5 29 . 75 59 . 70
Dist. #6 24 . 77 39 . 92
Dist. #7 13. 93 38 . 12
Dist .#ll 36. 82 55 . 03
We do not anticipate receiving any of the 1% property tax
allocation as provided by the Jarvis/Gann Amendment after this
current fiscal year. Under this proposal , the staff recommends
that rebates and/or exceptions be provided for properties that
are considered unsewerable and properties not receiving sewer
service.
REBATES AND EXCLUSIONS :
FULL REBATE OR EXCLUSION - Properties that are
improved but do not receive sewer service , such
as parcels that contain only carports , green-
belts , drainage channels and incidental or
adjoinint undevelopable parcels should be
exempt from a flat rate charge.
-2-
(continued)
TWO-THIRDS REBATE OR EXCLUSION - Improved and
unimproved properties t at are not currently
receiving sanitary sewer service should have
a 2/3 exemption from the District charges .
Capital improvements have been and are con-
tinuing to be made for their benefit at the
treatment plants .
tiThile it is desirable that the above-mentioned properties
be excluded from any adopted flat rate charge now, the
Sanitation Districts do not have sufficient information
to exclude all of these properties in the implementation
of a user charge flat fee. Therefore, since these properties
cannot be identified readily , it is recommended that the
implementing ordinance include a simple rebate (refund)
provision.
BOARD ACTION REQUIRED:
Adoption of an ordinance setting
forth fixed flat rate fees per
parcel for the 78-79 fiscal year
allowing for anticipated taxes
but providing for exceptions for
rebates and/or exclusions.
7/19/78
FLAT RATE CHARGE ESTIMATES
BASED ON VARIOUS ALTERNATIVES
Alternative IA Alternative II Alternative IIA
Proposed 7 -79 Estimated 79-80 Proposed 78-79 Estimated 79- 0 Proposed 7 -79 Estimated 79-80
DISTRICT NO. Flat Rate Flat Rate* Flat Rate** Flat Rate* Flat Rate Flat Rate*
NONE $ 46.o4 $ 39.79 $ 39.79 $ 24.98 $ 39.79
2 NONE 45.18 39.50 39.50 22.70 39.50
3 NONE 49.62 42.92 42.92 26.79 42.92
5 NONE 67.14 59.70 59.70 29.75 59.70
6 NONE 46.11 39.92 39.92 24.77 39.92
7 NONE 41 .6o 38.12 38.12 13.93 38.12
11 NONE 64.24 55.03 55.03 36•82 55.03
Average All Districts $ 49.19 $ 42.85 $ 42.85 $ 25.34 $ 42.85
Pursuant to SB-154 adopted by the State Legislature and signed by the Governor on June 24, 1978
which implements the Jarvis-Gann initiative, the Districts would not receive any pro-rata share
of the 1% property tax levy after 1978-79.
** This rate assumed that the Districts' would not receive any tax funds based on property value in
1978-79 or subsequent years. The public notice was based on this alternative,
** No proposed flat rate in 1978-79. Districts would receive pro-rata share of 1% property tax allocation only.
BOARDS OF DIRECTORS
County Sanitation Districts vest Office Box 8127
of Orange County,California 10844 Ellis Avenue
Fountain Valley, Calif., 92708
Telephones:
JOINT BOARDS AnaCode ;"
540-2910
DRAFT AGENDA
ADJOURNED REGULAR MEETING
JULY 19, 1978 - 6:00 P.M.
(1) Pledge of Allegiance and Invocation
(2) Roll Call
(3) Appointment of Chairmen pro tem, if necessary
(4) Public Hearing on proposed flat rate special assessment for sewer
service and immediate availability for funding 1978-79 operating
and capital budgetary requirements:
(a) Open hearing
(b) Report on proposed funding method(s)
(c) Consideration of motion directing Secretary to enter written
comments received into record of hearing
(d) Public comment (NOTE: Members of the public wishing to be heard
should complete Request to Present Comments at Public Hearing Form
(blue form) and submit to the clerk. Members of the public will
be called in order of submittal of the form.)
(e) Close public hearing
(5) Consideration of motion to introduce revised ordinance of each respective
District establishing sewer service and availability charges, and to
read said ordinance of each respective District by title only and waiving
reading of each ordinance in its entirety:
DISTRICT TITLE
1 Ordinance No. 104 (Revised), An Ordinance Establishing
Flat Rate Special Assessment for Sewer Service and
Immediate Availability
2 Ordinance No. 205 (Revised), An Ordinance Establishing
Flat Rate Special Assessment for Sewer Service and
Immediate Availability
3 Ordinance No. 306 (Revised), An Ordinance Establishing
Flat Rate Special Assessment for Sewer Service and
Immediate Availability
5 Ordinance No. 510 (Revised), An Ordinance Establishing
Flat Rate Special Assessment for Sewer Service and
Immediate Availability
6 Ordinance No. 604 (Revised), An Ordinance Establishing
Flat Rate Special Assessment for Sewer Service and
Immediate Availability
7 Ordinance No. 717 (Revised), An Ordinance Establishing
Flat Rate Special Assessment for Sewer Service and
Immediate Availabiltiy
11 Ordinance No. 1105 (Revised), An Ordinance Establishing
Flat Rate Special Assessment for Sewer Service and
Immediate Availability
(6) Consideration of action on report re flat rate special assessment for sewer
service and immediate availability charges
(7) Other business and communications, if any
(8) Consideration of motion to adjourn
BOARDS OF DIRECTORS
County Sanitation Districts Post office Box e127
of Orange County,California 10844 Ellis Avenue
Fountain Valley, Calif., 92708
Telephones:
JOINT BOARDS " 14
9b-2411
FINAL AGENDA
ADJOURNED REGULAR MEETING
JULY 19, 1978 - 6:00 P.M.
(1) Pledge of Allegiance and Invocation
(2) Roll Call
(3) Appointment of Chairmen pro tem, if necessary
(4) Consideration of motion to receive and file minute excerpts, if any
(5) Public Hearing on proposed flat rate special assessment for sewer service and immediate availability for funding
1978-79 operating and capital budgetary requirements:
(a) Open hearing
(b) Report on proposed funding method(s)
(c) Consideration of motion directing Secretary to enter written comments received into record of hearing
(d) Public comment
Persons in attendance wishing to be heard should complete Request to Present Oral Comment at Public Hearing
form (blue form) and submit to the clerk at the table marked "SUBMIT ORAL COMMENT REQUEST FORM HERE". Oral
comments will be heard in order of submittal of the form to the clerk.
OR
Persons in attendance wishing to submit a written statement in protest or support of the proposed assessment
may do so by completing the Written Statement Regarding Proposed Assessment form (salmon-colored form) and
submit to the clerk at the table marked "SUBMIT WRITTEN STATEMENT FORM HERE". Your statement will become
a part of the official record of the hearing..
(e) Close public hearing
(6) Consideration of motion to introduce revised ordinance of each respective District establishing sewer service and
immediate availability charges, and to read said ordinance of each respective District by title only and waiving
reading of each ordinance in its entirety:
DISTRICT TITLE
1 Ordinance No. 104 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
2 Ordinance No. 205 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
3 Ordinance No. 306 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
5 Ordinance No. 510 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
6 Ordinance No. 604 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
7 Ordinance No. 717 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
11 Ordinance No. 1105 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
(7) Consideration of action on report re flat rate special assessment for sewer service and immediate availability
charges
(8) Other business and communications, if any
(9) Consideration of motion to adjourn
TLV1 pJ
07/19/78
ORDINANCE NO. (REVISED)
AN ORDINANCE ESTABLISHING FLAT RATE SPECIAL ASSESS-
MENTS FOR SEWER SERVICE AND IMMEDIATE AVAILABILITY
• The Board of Directors of County Sanitation District No.
of Orange County, California, does hereby ORDAIN as follows:
Section 1: Purpose. The purpose of this Ordinance is
to establish a system of sanitary sewer service assessments,
together with immediate availability assessments required to be
paid by property owners for the services and facilities furnished
by the District in connection with its sanitation treatment works
and sewage collection system. Pursuant to the provisions of
Public Law 92-500, and Public Law 95-217, commonly referred to
respectively as the Federal Water Pollution Control Act Amend-'
ments of 1972 , and the Clean Water Act of 1977, the District is
mandated thereby to provide a . system of user charges.
Revenues derived under the provisions of this Ordinance
shall be used for the acquisition, construction, reconstruction,
maintenance and operation of the sewage collection facilities
and wastewater treatment and disposal facilities of the District,
together with costs of administration, debt retirement and
provisions for necessary reserves.
Section 2: Annual Sewer Service Assessments. Each parcel
of real property located within the District which is improved
with structures designed for residential, commercial or industrial
use, shall pay a flat rate special assessment for sewer service
f
in the sum of $ provided, however, that upon the Orange
County Auditor allocating to this District, pursuant to
Government Code Section 26912, a portion of the ad valorem
real property tax levied pursuant to California Revenue and
Taxation Code Section 2237 , the flat rate special assessment
for sewer service shall be in the sum of $
Section 3: Application of Ordinance. The provisions of
this Ordinance shall be in addition to Ordinance No. of
the District establishing regulations for use of District' s
sewage facilities, including provisions for payment of charges
or fees related thereto.
Section 4 : Exceptions. The provisions of this Ordinance
shall apply to all properties in the District, and no exception
shall be provided for properties otherwise deemed exempt by
provisions of the State Constitution or statute, such as
properties owned by other public agencies or charitable 'founda-
tions, except as expressly provided in Section 5 hereof.
Section 5 : Exemptions - Rebates. In recognition that
certain legal parcels of real property exist within the District
which are undeveloped, unsewered or unsewerable, it is the intent
of the District that said parcels be totally or partially exempt
from the payment of charges as prescribed herein, all in ac-
cordance with the following:
A. Unsewerable parcels shall be entitled to a 100% rebate
of the charges assessed and levied;
B. Unsewered parcels developed with a structure shall be
entitled to a 66-2/3% rebate of the charges assessed and levied;
-2-
C. Unsewered parcels undeveloped with a structure shall
be entitled to a 66-2/3% rebate of the charges assessed and
levied; and
D. Improved parcels owned by public agencies but which
are not developed with a structure thereon, such as parks,
and NOT containing any sewer connection shall be entitled to
a 100% rebate of the charges assessed and levied.
Any property owner may submit a claim for rebate to the
District on the forms prescribed and provided by the District
within one hundred twenty (120) days after the annual property
tax bills are mailed by the Orange County Tax Collector.
All applications for rebate will be determined by the General
Manager of the District and his decision shall be final.
For purposes of this Section, "unsewerable" parcels shall
be defined to include, but not limited to, those that are used
exclusively for private roadways or walkways; a single structure
on two or more lots; a carport or garage lot separate from an
adjacent residential structure on a separate lot; remnant
parcels from public right-of-way which are less than the local
code re minimum building lot size.
Section 6 : Credits Against Other Charges Due. The annual
flat rate special assessment for sewer service established by
the provisions of this Ordinance , shall be applied as a credit
against use charges imposed upon a parcel of property pursuant
to Ordinance No. Establishing Regulations for Use of
District Sewerage Facilities (Industrial Wastewater Ordinance) ,
as amended.
-3-
, w
Section 7 : Assessment Based on Fiscal Year. The flat
rate special assessments for sewer service and immediate sewer
availability established by this Ordinance, shall be for the
fiscal year commencing July 1 and terminating June 30, and there
shall be no proration of such assessments.
Section 8 : Pursuant to the authority granted by California
Health and Safety Code Section 5473, all assessments established
herein shall be collected on the County Tax Roll in the same
manner, by the same persons and at the same time as, together
with and not separately from, 'its general taxes. The County
Tax Collector is authorized and hereby ordered to make said
collections in accordance with the terms and conditions of
agreements between the County of Orange and this District.
Section 9 : Severability. If any provisions of this
Ordinance or the application to any person or circumstance is
held invalid by order of court, the remainder of the Ordinance
or the application of such provision to other persons or in
other circumstances shall not be affected.
Section 10 : Effective Date. This Ordinance shall become
effective immediately upon its adoption by vote of two-thirds
of the members of the Board.
Section 11: The Secretary shall certify to the adoption
of this Ordinance and shall cause the same to be published in a
newspaper of general circulation in the District as required by
law.
-4-
1
COUNTY SANITATION DISTRICTS
Of ORANGE COUNTY.CALIFORNIA
P O.BOX 8127
10844 ELLIS AVENUE
July 19, 1978 FOUNTAIN VALLEY.CALIFORNIA 92708
(714)540 2910
(714)9G2.2411
PUBLIC HEARING JULY 19, 1978 - 6:00 P.M. RE PROPOSAL TO ESTABLISH
AND COLLECT FLAT RATE SPECIAL ASSESSMENTS FOR SEWER SERVICE AND
IMMEDIATE AVAILABILITY ON TAX ROLL
In the past, the Sanitation Districts have received the bulk
of their revenues from a special assessment for sewer service
against all real property and improvements in the Districts based
on the ad valorem property rolls of the County. The cost to the
homeowner whose property is assessed at $13,000 - $15,000, has been
$3 to $5 per month, depending on the District, for sewer service
exclusive of maintenance of local sewers. This has been collected
via the County tax bill.
With the passage of the Jarvis/Gann Initiative (proposition 13) ,
the question arises : Does this provision prohibit the Districts
from levying the special assessments that have been levied in all
prior years?
While the Jarvis/Gann Initiative did not bar this procedure,
the actions of the State Legislature in subsequent legislation
(Senate Bill 2212 enacted on June 30) barred the use of instituting
any charge based on property valuation other than the allowable 1%
ad valorem levy.
Under consideration are several proposals to institute a flat
rate special assessment. These are attached.
The Sanitation Districts operate the third largest wastewater
`•rr� (sewage) treatment system on the West Cost. The capital costs of
present day facilities are $229 million; additional construction
required during the next 8 years will double this figure. The
Districts collect, treat, and dispose of wastewater from 408,000
residential, commercial and industrial connections serving 1.5
million citizens in the 23 cities in the Orange County metropolitan
area.
u
Ad valorem assess- In spite of the increased demands
40 ment rate for sewer service and additional
39 facilities required by higher
State and Federal environmental
39 standards, the combined average
N 37 annual variable ad valorem special
assessment rate has steadily de-
3 6 - clined from 421r/$100 assessed
35 valuation in 72-73 to 31�/$100
assessed valuation in 77-78. The
34 Districts' Boards of Directors
33 have reduced the budget require-
ments to lighten the property-
32 owners' burden by $2.2 million
31 I ! ) for this fiscal year (78-79) .
73 74 75 766q A 77
�F 1 S �'AL 7Y E7R
Annual revenues come from variable rate ad valorem special
assessments, connection fees, induatrial use fees, annexation
�../ charges and State and Federal construction grants. The annual
expenditures break down approximately 10% for operations and
maintenance, 87% for current and planned treatment plant and
trunk sewer construction, 3% for bonded debt retirement.
COUNTY SANITATION DIc-RICT N0. (ALL) 7/18/78
PRELIMINARY STATEMENT O d AOJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
MILLIONS OF DOLLARS
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER CONSTRUCTION RESERVES $88 $77 $70 $61 $39
REVENUE
Assessments @ $42.85/parcel 17 17 17 17 17
Construction Grants 14 19 31 36 29
Loan in Aid of Construction 1
Industrial User Fees & Connection Fees 4 3 3 3 3
Interest & Other Income 5 3 3 3 2
TOTAL FUNDS AVAILABLE $129 $119 $124 $120 $90
EXPENDITURES
Trunk Sewer & Pump Station Construction $11 $ 6 $ 4 $ 6 $ 3
Treatment Plant Construction 30 30 43 51 38
Treatment Plant Mtce & Operation 8 1 13 21 26
Trunk Sewer Mtce & Operation & Other 3 2 3 3 4
TOTAL EXPENDITURES $52 $49 $63 $81 $71
Carry-Over Construction Reserves $77 $70 $61 $39 $19
Funds Required 25 32 40 36 36
Fund Balance or (Deficit) $52 $38 $21 $ 3 ($17)
ALL DISTRICTS
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSMENT FOR SE'14ER SERVICE
& IMMEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
& Reserves 41 ,662,824 25,933,200 (15,729,624)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves 61 ,058,000 85,075,000 24,017,000
Joint Operating (Treatment Plant) Expense 6,817,884 8, 153,000 1 ,335, 116
District Operating & Other Expenditures 7,009,700 8,548,800 1 ,539, 100
Distribute Upper Basin Joint Works
Equity to other CSD' s 1 , 141 ,000 1 , 141 ,0`"
TOTAL REQUIREMENTS 116,548,408 128,851 ,000 12,302,592
-Estimated Revenue
Federal-State Grants 14, 152,000 13,759,000 ( 393,000)
Sale of Capacity Rights 660,000 1 ,213,000 553,000
Connection Fees & Industrial User Charges 3,858,000 4,236,000 378,000
Interest & Misc. Income 3,629,637 3,517,000 ( 112,637)
Other 3,003,000 1 ,500,000 (1 ,503,000)
Carry-over 71 ,836,318 87,461 ,000 15,624,682
TOTAL OTHER REVENUE 97, 138,955 111 ,636,000 14,547,045
Amount to be raised by Assessment 19,409,453 17, 165,000 ( 2,244,453)
Estimated Number of Parcels in the
District 400,560 1"MW
Estimated Annual Flat Rate Special
Assessment for Sewer Service &
immediate availability $42.85 per parcel
(Average)
Ch. 292 —14—
fund reserves" shall not include:
(1) Noncash assets such as stores, inventory, property and
buildings, or other investments.
(2) Any amounts for self-insurance, for contractual obligations,or
for reserves established by a governing board policy adopted prior
to July 1, 1978. THIS SECTION IS EXCERPTED
(3) Any ,mounts restricted by law or court order. FROM SB- 5 WHICH WAS
(4) Any amounts committed to a capital outlay project approved
prior to June 6, 1978, b), the board of supervisors. ADOPTED BY THE STATE
(f) For the purpose'of this subdivision,the amount of property tax LEGISLATURE AND SIGNED INTO
collections pursuant to paragraphs (1) and (2) of Section 2270 of the LAW BY THE GOVERNOR Ord
Revenue and Taxation Code for the purpose of making annual JUNE 241 1978 , SUBSEQUENT
payments for the inicrest and principal on outstanding general TO PASSAGE OF PROPOSITION 13 .
obligation bonds or other indebtedness approved by the voters prior
to July 1, 1978.
(g) Funds distributed for this section shall be given first for police It is my opinion that this
and fire programs in order not to jeopardize the healtli and safety of section when combined
the community. The legislative body shall ensure that the level of with Government Code
police and fire protection programs actually provided in the 1977-78 Section 26912 , will provide
fiscal year shall be continued in 1978-79. for the Districts to
Nothing in this section shall prevent the legislative body from
reviewing and esiablishing its police and fire protection program in receive an apportionment
the 1978--79 fiscal vear in a manner which will make such prograin of the tax levy for 1978/79
more efficic:-it and effective. only. In subsequent years ,
(h) The Controller shall estimate the amounts required to be the Districts will not
determined pursuant to subdivision (b) (3). receive any portion of the
The Controller shall determine the actual amounts and make a 1`/o ad valorem property tax
reconciliation with the April 10, 1979, distribution. levy.
(x) The amount allocated in subdivision (a) shall be reduced by
an amount equal to the doilar.amount of any cost-of-living increase
in aid payments under the Aid to Families with Dependent Children
program, as provided in Section 35 of this bill. 7
CHAPTER 3. SPECIAL DISTRICTS Thomas L. Woodruff
General Counsel
Article 1. General Provisions and Definitions
16270. The Legislature finds and declares that many special
districts have the ability to raise revenue through user charges and
fees and that their ability to raise revenue directly from the property
tax for district operations has been eliminated by Article XIII A of the
California Constitution. It is the intent of the Legislature that such
districts rely on user fees and charges for raising revenue due to the
lack of the availability of property tax revenues after the 1978-79
fiscal year. Such districts are encouraged to begin the transition to
user fees and charges during the 1978-79 fiscal year.
16271. As used in this chapicr:
(a) "Governing body"invans the board of supervisors except that
96 480
JUNE 14, 1978
AVAILABLE ALTERNATIVES FOR FUNDING AGENDA ITEM h'5
1978-79 OPERATING/CAPITAL FUNDING REQUIREMENTS
JARVIS-GANN WILL REDUCE THE DISTRICTS' CURRENT (1977-78) $19.4 MILLION TAX LEVY
BY A MINIMUM OF 58; IF THE DISTRICTS RECEIVE A PRO-RATA SHARE OF THE TAXES ALLOWED TO
�,. BE COLLECTED BY THE TAX LIMITATION INITIATIVE, TO A MAXIMUM OF 100% IF THE DISTRICTS
BY
NO TAXES UNDER THE ALLOCATION METHOD YET TO BE DECIDED BY THE STATE LEGISLATURE.
ALTERNATIVE METHODS OF FUNDING THE DISTRICTS SEWAGE COLLECTION, TREATMENT AND
DISPOSAL ACTIVITIES FOR 1978-79 ARE AS FOLLOWS:
I FUND 1978-79 REQUIREMENTS FROM CONSTRUCTION RESERVE FU14DS (ASSUMES NO PRO-RATA
SHARE OF 1 TAX ALLOCATION
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - FUNDS RESERVED FOR CONSTRUCTION TO COMPLY WITH
FEDERAL AND STATE LAWS WOULD BE DIVERTED FROM
CAPITAL TO OPERATING
- NEEDED AND/OR REQUIRED CONSTRUCTION PROJECTS
MAY BE DELAYED
- FUNDS WOULD HAVE TO BE REPAID TO CONSTRUCTION
RESERVES IN FUTURE YEARS REQUIRING DISPROPOR-
TIONATELY HIGHER CHARGE IN THOSE YEARS
- LOSS OF INTEREST EAR14INGS
II - FU14D 1978-79 REQUIREMENTS BY ESTABLISHING A FLAT RATE USER/AVAILABILITY CHARGE
AGAINST EACH PARCEL OF PROPERTY TO BE COLLECTED BY THE TAX BILL
MAJOR ADVANTAGES - PROVIDES FINANCING FOR 1978-79 OPERATIIG AND
CAPITAL REQUIREMENTS WITHOUT SUBSTANTIAL USE
OF CONSTRUCTION RESERVES
- STABILIZES PROPERTY OWNER CHARGES AND DISTRICTS
CASH FLOW
- ACCOMMODATES PHASING OF USER CHARGE/REVENUE PROGRAM
REQUIRED TO BE IMPLEMENTED IN 1979-80 BY EPA AND SWRCB
MAJOR DISADVANTAGES - REQUIRES PUBLIC NOTICE AND HEARINGS IN A RELATIVELY
SHORT TIME FRAME TO IMPLEMENT
- DISTRICTS WILL INCUR ADDED ADMINISTRATIVE OVERHEAD
COST TO IMPLEMENT (ESTIMATED AT BETWEEN $75,000 TO
$105,000) PLUS ADDED CHARGE TO COLLECT ON TAX BILL
- POSSIBLE PUBLIC BACKLASH IN VIEW OF JARVIS-GANN MANDAT
- FLAT USE CHARGE IS NOT EQUITABLE
III - CONTINUE TO LEVY FULL TAX RATE NECFSSARY TO FUND 1978-79 REQUIREMENTS ON THE BASI
OF PREVIOUS COUNTY COUNSEL OPINION THAT SANITATION DISTRICT LEVY IS A "SPECIAL
ASSESSMENT". SAID OPINION MAY THUS EXCLUDE THE DISTRICTS FROM APPLICATION OF
JARVIS-GANN.
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978- 79
- MAJOR DISADVANTAGES - COUNTY COUNSEL HAS NOT YET RULED ON THIS OPINION
RELATIVE TO JARViS-CANII
- MAY RESULT IN LITIGATION AND THE COURTS MAY FIND
AGAINST THIS INTERPRETATION
COUNTY SANITATION DISTRICTS
01 ORANGE COUNTY.CALIFORNIA
P0 BOX N127
July 19, 1978 10844 ELL 15AVENUE
FOUNTAIN VALL[Y.CAI 11 OHNIA92708
(7141540 2a00
(714)962.2411
SUPPLEMENTAL ALTERNATIVES FOR FUNDING
1978-79 OPERATING/CAPITAL FUNDING REQUIREMENTS
ON JUNE 24, THE GOVERNOR SIGNED SENATE BILL 154, ALSO KNOWN AS CHAPTER
292, IMPLEMENTING THE JARVIS/GANN INITIATIVE. ONE OF THE PROVISIONS
OF SENATE BILL 154 INDICATES THAT THE DISTRICT WILL RECEIVE A PRO RATA
SHARE (APPROXIMATELY $7 MILLION) OF THE 1% TAX ALLOCATION IN 1978-79
ONLY. IT ALSO INDICATES THAT ENTERPRISE SPECIAL DISTRICTS , SUCH AS
THE SANITATION DISTRICTS, ARE EXPECTED TO RAISE THEIR. REVENUES THROUGH
USER CHARGES AND FEES IN FUTURE YEARS AND WILL NOT RECEIVE ANY TAX
ALLOCATION AFTER THIS FISCAL YEAR.
The following two supplemental funding alternatives consider
receipt of tax funds for the 1978-79 fiscal year.
IA - This proposal assumes that the District will receive
its pro rata share of the 1% tax allocation provided
under the Jarvis/Gann Amendment for the 1978-79 fiscal
year and defers the implementation of a flat rate user
fee to the 1979-80 fiscal year. Approximately $10 . 2
�- million in District funds reserved for construction
would be diverted from capital accounts to operating
accounts as required during 1978-79 to fund operations .
Based on the requirements of the Districts , this pro-
posal would anticipate a flat rate user charge next
year as follows :
Alternative IA
Proposed 7 -79 Estimated 79-80
DISTRICT NO. Flat Rate Flat Rate,*
1 NONE $ 46.04
2 NONE 45. 18
3 NONE 49.62
5 NONE 67. 14
6 NONE 46. 11
7 NONE 41 .60
11 NONE 64.24
(continued)
BOARD ACTIONS REQUIRED:
(1) Adopt proposal IA which eliminates
the need for a flat rate user fee
for the 78-79 fiscal year
(2) Declare intent of the Boards of
Directors to institute a user
fee revenue program effective
July 1, 1979
IIA - This proposal assumes the anticipated share of the 1%
property tax allocation for 78-79 as indicated in Proposal
IA, but implements a user charge per parcel this year as
listed below.
This proposal , which incorporates a flat fee and ad valorem
taxes , provides a substantial degree of equity.
Proposed User Charge
78-79 79-80
Fi�xeU Estimated
Dist. #1 24. 98 39 . 79
Dist. #2 22. 70 39 . 50
Dist. #3 26 . 79 42 . 92
Dist. #5 29 . 75 59 . 70
Dist. #6 24. 77 39 . 92
Dist . #7 13. 93 38. 12
Dist .#ll 36 . 82 55 . 03
We do not anticipate receiving any of the 1% property tax
allocation as provided by the Jarvis/Gann Amendment after this
current fiscal year . Under this proposal , the staff recommends
that rebates and/or exceptions be provided for properties that
are considered unsewerable and properties not receiving sewer
service.
REBATES AND EXCLUSIONS :
FULL REBATE OR EXCLUSION - Properties that are
improved but do not receive sewer service, such
as parcels that contain only carports , green-
belts , drainage channels and incidental or
adjoinint undevelopable parcels should be
exempt from a flat rate charge.
-2-
(continued)
TWO-THIRDS REBATE OR EXCLUSION - Improved and
unimproved properties that are not currently
receiving sanitary sewer service should have
a 2/3 exemption from the District charges .
Capital improvements have been and are con-
tinuing to be made for their benefit at the
treatment plants .
While it is desirable that the above-mentioned properties
be excluded from any adopted flat rate charge now, the
Sanitation Districts do not have sufficient information
to exclude all of these properties in the implementation
of a user charge flat fee. Therefore, since these properties
cannot be identified readily, it is recommended that the
implementing ordinance include a simple rebate (refund)
provision.
BOARD ACTION REQUIRED:
Adoption of an ordinance setting
forth fixed flat rate fees per
parcel for the 78-79 fiscal year
allowing for anticipated taxes
but providing for exceptions for
rebates and/or exclusions .
7/19/78
FLAT RATE CHARGE ESTIMATES
BASED ON VARIOUS ALTERNATIVES
Alternative IA Alternative II Alternative IIA
Proposed 7 -79 Estimated 79- 0 Proposed 7 -79 Estimated 79-80 Proposed 7 -79 Estimated 79-80
DISTRICT NO. Flat Rate Flat Rate` Flat Rate** Flat Rate* Flat Rate Flat Rate*
1 NONE $ 46.o4 $ 39.79 $ 39.79 $ 24.98 $ 39:79
2 NONE 45.18 39.50 39.50 22.70 39.50
3 NONE 49.62 42.92 42.92 26.79 42.92
5 NONE 67.14 59.70 59.70 29.75 59.70
6 NONE 46.11 39.92 39.92 24.77 39.92
7 NONE 41 .6o 38. 12 38.12 13.93 38.12
11 NONE 64.24 55.03 55.03 36.82 55.03
Average All Districts $ 49.19 $ 42.85 $ 42.85 $ 25.34 $ 42.85
Pursuant to SB-154 adopted by the State Legislature and signed by the Governor on June 24, 1978
which implements the Jarvis-Gann initiative, the Districts would not receive any pro-rata share
of the 1% property tax levy after 1978-79.
** This rate assumed that the Districts' would not receive any tax funds based on property value in
1978-79 or subsequent years. The public notice was based on this alternative.
** No proposed flat rate in 1978-79. Districts would receive pro-rata share of 1% property tax allocation only.
BOARDS OF DIRECTORS
County Sanitation Districts Post otllce Box 8127
of Orange County,California 10844 Ellis Avenue
Fountain Valley, Calif., 9270811f
Telephones:
rea
JOINT BOARDS ^ 962-24e1114
IwAw
_ _
IIFINAL AGENDA
ADJOURNED REGULAR MEETING
JULY 19, 1978 - 6:00 P.M.
(1) Pledge of Allegiance and Invocation 4�0 �ob
(2) Roll Call
(3) Appointment of Chairmen pro tem, if necessary �1�e
(4) Cot(s�derat'i'ond o tion to receive and minute xcerp s, if any
(5) Public Hearing on propos la rate special assessment for sewer service and immediate availability for funding
1978-79 operating and capital budgetary requirements:
(b) Report on proposed funding methods)
(c) Considoration of motion directing Secretary to enter written comments received into record of hearing
(d) Public comment
Persons in attendance wishing to be heard should complete Request to Present Oral Comment at Public Hearing
form (blue form) and submit to the clerk at the table marked "SUBMIT MA L CONAIENT REQUEST FOR.N1 HERE". Oral
comments will be heard in order of submittal of the form to the clerk.
OR
Persons in attendance wishing to submit a written statement in protest or support of the proposed assessment
may do so by completing the Written Statement Regarding Proposed Assessment form (salmon-colored form) and
submit to the clerk at the table marked "SUBMIT WRITTEN STATEMENT FORM HERE". Your statement will become
a part of the official record of the' hcari.ng.
(e) Close public hearing
(6) Consideration of motion to introduce revised ordinance of each respective District establishing sewer service and
immediate availability charges, and to read said ordinance of each respective District by title only and waiving
reading of each ordinance in its entirety:
DISTRICT TITLE
1 Ordinance No. 104 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
2 Ordinance No. 205 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
3 Ordinance No. 306 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
5 Ordinance No. 510 (Revised), An Ordinance- Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
6 Ordinance No. 604 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
7 Ordinance No. 717 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
11 Ordinance No. 1105 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
(7) Consideration of action on report re flat rate special assessment for sewer service and immediate availability
charges
..r
(8) Other business and communications, if any
(9) Consideration of motion to adjourn
TL��T:pj
07/19'/78
ORDINANCE NO. (REVISED)
AN ORDINANCE ESTABLISHING FLAT RATE SPECIAL ASSESS-
MENTS FOR SEWER SERVICE AND IMMEDIATE AVAILABILITY
The Board of Directors of County Sanitation District No.
of Orange County, California, does hereby ORDAIN as follows:
Section 1: Purpose. The purpose of this Ordinance is
to establish a system of sanitary sewer service assessments,
together with immediate availability assessments required to be
paid by property owners for the services and facilities furnished
by the District in connection with its sanitation treatment works
and sewage collection system. Pursuant to the provisions of
Public Law 92-500, and Public Law 95-217, commonly referred to
respectively- as the Federal Water Pollution Control Act Amend
ments of 1972, and the Clean Water Act of 1977, the District is
mandated thereby to provide a system of user charges.
Revenues derived under the provisions of this Ordinance
shall be used for the acquisition, construction, reconstruction,
maintenance and operation of the sewage collection facilities
and wastewater treatment and disposal facilities of the District,
together with costs of administration, debt retirement and
provisions for necessary reserves.
-Section 2: Annual Sewer Service Assessments. Each parcel
of real property located within the District which is improved
with structures designed. for residential, commercial or industrial
use, shall -pay a flat rate special assessment for sewer service
in the sum of $ provided, however, that upon the Orange
County Auditor allocating to this District, pursuant to tr,�
Government Code Section 26912, a portion of the ad valorem
real property tax levied pursuant to California Revenue and
Taxation Code Section 2237, the flat rate special assessment
for sewer service shall be in the sum of $
Section 3: Application of Ordinance. The provisions of
this Ordinance shall be in addition to Ordinance No.. of
the District establishing regulations for use of District' s
sewage facilities, including provisions for payment of charges
or fees related thereto.
Section 4 : Exceptions. The provisions of this Ordinance
shall apply to all properties in the District, and no exception
shall be provided for properties otherwise deemed exempt by
provisions of the State Constitution or statute, such as
properties owned by other public agencies or charitable founda-
tions, except as expressly provided in Section 5 hereof.
Section 5 : Exemptions - Rebates. In recognition that
certain legal parcels of real property exist within the District
which are undeveloped, unsewered or unsewerable, it is the intent
of the District that said parcels be totally or partially exempt
from the payment of charges as prescribed herein, all in ac-
cordance with the following:
A. Unsewerable parcels shall be entitled to a 100% rebate
of the charges assessed and levied;
B. Unsewered parcels developed with a structure shall be
entitled to a 66-2/3% rebate of the charges assessed and levied; Llow
-2-
a
C. Unsewered parcels undeveloped with a structure shall
be entitled to a 66-2/3% rebate of the charges assessed and
levied; and
D. Improved parcels owned by public agencies but which
are not developed with a structure thereon, such as parks,
and NOT containing any sewer connection shall be entitled to
a 100% rebate of the charges assessed and levied.
Any property owner may submit a claim for rebate to the
District on the forms prescribed and provided by the District
within one hundred twenty (120) days after the annual property
tax bills are mailed by the Orange County Tax Collector.
All applications for rebate will be determined by the General
Manager of the District and his decision shall be final.
For purposes of this Section, . "unsewerable" parcels shall
be defined to include, but not limited to, those that are used
exclusively for private roadways or walkways; a single structure
on two or more lots; a carport or garage lot separate from an
adjacent residential structure on a separate lot; remnant
parcels from public right-of-way which are less than the local
code re minimum building lot size.
Section 6 : Credits Against Other Charges Due. The annual
flat rate special assessment for sewer service established by
the provisions of this Ordinance, shall be applied as a credit
against use charges imposed upon a parcel of property pursuant
to Ordinance No. Establishing Regulations for Use of
District Sewerage Facilities (Industrial Wastewater Ordinance) ,
as amended.
-3-
Section 7: Assessment Based on Fiscal Year. The flat
rate special assessments for sewer service and immediate sewer
availability established ,by this Ordinance, shall be for the
fiscal year commencing July l and terminating June 30, and there
shall be no proration of such assessments.
Section 8 : Pursuant to the authority granted by California
Health and Safety Code Section 5473, all assessments established
herein shall be collected on the County Tax Roll in the same
manner, by the same persons and at the same time as, together
with and not separately from, its general taxes. The County
Tax Collector is authorized and hereby ordered to make said
collections in accordance with the terms and conditions of
agreements between the County of Orange and this District.
Section 9 : Severability. If any provisions of this
Ordinance or the application to any person or circumstance is
held invalid by order of court, the remainder of the Ordinance
or the application of such provision to other persons or in
other circumstances shall not be affected.
Section 10 : Effective Date. This Ordinance shall become
effective immediately upon its adoption by vote of two-thirds
of the members of the Board.
Section 11: The Secretary shall certify to the adoption
of this Ordinance and shall cause the same to be published in a
newspaper of general circulation in the District as required by
law.
-4-
COUNTY SANITATION DISTRICTS
of ORANGE COUNTY,CALIFORNIA
P O.BOX 8127
c�
10844 ELLIS AVENUE
July 19, 1978 FOUNTAIN VALLEY.CALIFORNIA 9270E
— (714)540-2910
L✓ (714)962-2411
PUBLIC HEARING JULY 19, 1978 - 6:00 P.M. RE PROPOSAL TO ESTABLISH
AND COLLECT FLAT RATE SPECIAL ASSESSMENTS FOR SE14ER SERVICE AND
IMMEDIATE AVAILABILITY ON TAX ROLL
In the past, the Sanitation Districts have received the bulk
of their revenues from a special assessment for sewer service
against all real property and improvements in the Districts based
on the ad valorem property rolls of the County. The cost to the
homeowner whose property is assessed at $13,000 - $15,000, has been
$3 to $5 per month, depending on the District, for sewer service
exclusive of maintenance of local sewers. This has been collected
via the County tax bill.
With the passage of the Jarvis/Gann Initiative (proposition 13) ,
the question arises: Does this provision prohibit the Districts
from levying the special assessments that have been levied in all
prior years?
While the Jarvis/Gann Initiative did not bar this procedure,
the actions of the State Legislature in subsequent legislation
(Senate Bill 2212 enacted on June 30) barred the use of instituting
any charge based on property valuation other than the allowable 1%
ad valorem levy.
Under consideration are several proposals to institute a flat
rate special assessment. These are attached.
The Sanitation Districts operate the third largest wastewater
(sewage) treatment system on the West Cost. The capital costs of
present day facilities are $229 million; additional construction
required during the next 8 years will double this figure. The
Districts collect, treat, and dispose of wastewater from 408,000
residential, commercial and industrial connections serving 1.5
million citizens in the 23 cities in the Orange County metropolitan
area.
Ad valorem assess- In spite of the increased demands
b0 ment rate for sewer service and additional
39 facilities required by higher
State and Federal environmental
38 standards, the combined average
N 37 annual variable ad valorem special
36 assessment rate has steadily de-
clined from 42e/$100 assessed
35 valuation in 72-73 to 31�/$100
assessed valuation in 77-78. The
34 Districts' Boards of Directors
33 have reduced the budget require-
32 ments to lighten the property-
owners' burden by $2.2 million
31 I ! I for this fiscal year (78-79) .
73 74 75 76 77
YF I SCAL 7� EAR
Annual revenues come from variable rate ad valorem special
assessments, connection fees, induatrial use fees, annexation
`.►' charges and State and Federal construction grants . The annual
expenditures break down approximately 10% for operations and
maintenance, 87% for current and planned treatment plant and
trunk sewer construction, 3% for bonded debt retirement.
COUNTY SANITATION DIQTRICT NO. (ALL) 7/18/78
PRELIMINARY STATEMENT- 04 ;OJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
MILLIONS OF DOLLARS
DESCRIPTION 78-79 79-80 80-81 81 -82 82-83
CARRY-OVER CONSTRUCTION RESERVES $88 $77 $70 $61 $39
REVENUE
Assessments @ $42.85/parcel 17 17 17 17 17
Construction Grants 14 19 31 36 29
Loan in Aid of Construction 1
Industrial User Fees s Connection Fees 4 3 3 3 3
Interest E Other Income 5 3 3 3 2
TOTAL FUNDS AVAILABLE $129 $119 $124 $120 S90
EXPENDITURES
Trunk Sewer & Pump Station Construction $11 $ 6 $ 4 $ 6 $ 3
Treatment Plant Construction 30 30 43 51 38
Treatment Plant Mtce S Operation 8 11 13 21 26
Trunk Sewer Mtce & Operation & Other 3 2 3 3 4
NTOTAL EXPENDITURES �O o S52 $49 $63 $81 $71
��_ 'r\�)
P
Carry-Over Construction Reserves $77 $70 $61 $39 $19
Funds Required 25 32 40 36 36
Fund Balance or (Deficit) $52 $38 $21 $ 3 ($17)
ALL DISTRICTS
PRELIMINARY ESTIP,iATE OF ANNUAL FLAT RATE
SPECIAL ASSESSMENT FOR SEWER SERVICE
& IMMEDIATE AVAILABILITY -�
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating S Capital Requirements
District (Collection System) Construction
s Reserves 41 ,662,824 25,933,200 (15,729,624)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves 61 ,058,000 85,075,000 24,017,000
Joint Operating (Treatment Plant) Expense 6,817,884 8, 153,000 1 ,335, 116
District Operating & Other Expenditures 7,009,700 8,548,800 1 ,539, 100
Distribute Upper Basin Joint Works
Equity to other CSD's 1 , 141 ,000 1 , 141 ,(`- '
TOTAL REQUIREMENTS 116,543,408 128,851 ,000 12,302,592
-Estimated Revenue
Federal-State Grants 14, 152,000 13,759,000 ( 393,000)
Sale of Capacity Rights 660,000 1 ,213,000 553,000
Connection Fees & Industrial User Charges 3,858,000 4,236,000 378,000
Interest r; Misc. Income 3,629,637 3,517,000 ( 112,637)
Other 3,003,000 1 ,500,000 (1 ,503,000)
Carry-over 71 ,836,318 87,461 ,000 15,624,682
TOTAL OTHER REVENUE 97, 138,955 111 ,636,000 14,547,04.5
Amount to be raised by Assessment 19,409,453 17, 165,000 ( 2,244,453)
Estimated Number of Parcels in the
District 400,560
Estimated Annual Flat Rate Special
Assessment for Sewer Service &
immediate availability $42.85 per parcel
(Average)
Ch. 292 — 14—
fund reserves" shall not include:
(1) honcash assets such as stores, inventory, property and
buildings, or other investments.
(2) Any amounts for self-insurance, for contractual obligations,or
for reserves established by a governing board policy adopted prior
to July 1, 1978. THIS SECTION IS EXCERPTFD
(3) Any -niounts restricted by law or court order. FROM SB-15 WHICH WAS
Any amounts committed to a capital outlay project approved
prior to June G, 1978, by the board of supervisors. ADOPTED BY THE STATE
(f) For the purpose'of this subdivision, the amount of property tax LEGISLATURE AND SIGNED INTO
collections pursuant to paragraphs (1) and (2) of Section 2270 of the LAW BY THE GOVERNOR ON
Revenue and Taxation Code for the purpose of making annual JUNE _, 1978 , SUBSEQUENT
payments for the interest and principal on outstanding general TO PASSAGE OF PROPOSITION 13 .
obligation bonds or other indebtedness approved by the voters prior
to July 1, 1978.
(g) Funds distributed for this section shall be given first for police It is my opinion that this
and fire programs in order not to jeopardize the health and safety of section when combined
the community. The legislative body shall ensure that the level of with Government Code
police and fire protection programs actually provided in the 1977-78 Section 26912 will provide
fiscal year shall be continued in 1978-79. for the Districts to
Nothing in this section shall prevent the legislative body from
reviewing and establishing its police and fire protection program in receive an apportionment
the 1.r,78-79 fisc;1.1 vear in a manner which will make sur11 pro-rain of the tax levy for 1978/79
more efficient and effective. only. In subsequent years ,
(h) The Controller shall estimate the amounts required to be the Districts will not
--•►determined pursuant to suhdi0sion (b) (3). receive any portion of the
The Controller shall determine the actual amounts and ma}:e a 1% ad valorem property tax
reconciliation with the April 10, 1979, distribution. levy.
(x) The amount allocated in subdivision (a) shall be reduced by
an amount equal to the doflar.amount of any cost-of-living increase
in aid payments under the Aid to Families with Dependent Children
program, as provided in Section 35 of this bill.
CHAPTER 3. SPECIAL DISTRICTS Thomas L. Woodruff
General. Counsel
Article 1. General Provisions and Definitions .*'
IG270. The Legislature finds and declares that many special .4ja-
districts have the ability to raise revenue through user charges and
fees and that their ability to raise revenue directly from the property
t.x for district operations has been eliminated by Article X111 A of the
California Constitution. It is the intent of the Legislature that such U�
districts rely on user fees and charges for raising revenue due to the
lack of the availability of property tax revenuespafter the 1978-79
fiscal year. Such districts are encouraged to begin the transition to &0
user fees and ch r-es during the 1978-79 fiscal year.
.�
16271. As used in this ch.', Lcr:
(a) "Governing body"means the board of supervisors except that
96 480
C0
/
JUNE 14, 1978
AVAILABLE ALTERNATIVES FOR FUNDING AGENDA ITEM #5
1978-79 OPERATING CAPITAL FUNDING REQUIREMENTS
JARVIS-GANN WILL REDUCE THE DISTRICTS' CURRE14T (1977-78) $19.4 MILLION TAX LEVY
BY A MINIMUM OF 58% IF THE DISTRICTS RECEIVE A PRO-RATA SHARE OF THE TAXES ALLOWED TO
BE COLLECTED BY THE TAX LIMITATION INITIATIVE, TO A MAXIMUM OF 100% IF THE DISTRICTS
RECEIVE NO TAXES UNDER THE ALLOCATION METHOD YET TO BE DECIDED BY THE STATE LEGISLATURE.
ALTERNATIVE METHODS OF FUNDING THE DISTRICTS SEWAGE COLLECTION, TREATMENT AND
DISPOSAL ACTIVITIES FOR 1978-79 ARE AS FOLLOWS:
I - FUND 1978-79 REQUIREMENTS FROM CONSTRUCTION RESERVE_ FUNDS (ASSUMES NO PRO-RATA
SHARE OF l% TAX ALLOCATION
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - FUNDS RESERVED FOR CONSTRUCTION TO COMPLY WITH
FEDERAL AND STATE LAWS WOULD BE DIVERTED FROM
CAPITAL TO OPERATING
- NEEDED AND/OR REQUIRED CONSTRUCTION PROJECTS
MAY BE DELAYED
- FUNDS WOULD HAVE TO BE REPAID TO CONSTRUCTION
RESERVES IN FUTURE YEARS REQUIRING DISPROPOR-
TIONATELY HIGHER CHARGE IN THOSE YEARS
- LOSS OF INTEREST EARNINGS
II - FUND 1978-79 REQUIREMENTS BY ESTABLISH114G A FLAT RATE USER/AVAILABILITY CHARGE
AGAINST EACH PARCEL OF PROPERTY TO BE COLLECTED BY THE TAX BILL
- MAJOR ADVANTAGES - PROVIDES FINANCING FOR 1978-79 OPERATING AND
CAPITAL REQUIREMENTS WITHOUT SUBSTANTIAL USE
OF CONSTRUCTION RESERVES
- STABILIZES PROPERTY OWNER CHARGES AND DISTRICTS
CASH FLOW
- ACCOM140DATES PHASING OF USER CHARGE/REVENUE PROGRAM
REQUIRED TO BE IMPLEMENTED IN 1979-80 BY EPA AND SWRCB
- MAJOR DISADVANTAGES - REQUIRES PUBLIC NOTICE AND HEARINGS IN A RELATIVELY
SHORT TIME FRAME TO IMPLEMENT
- DISTRICTS WILL INCUR ADDED ADMINISTRATIVE OVERHEAD
COST TO IMPLEMENT (ESTIMATED AT BETWEEN $75,000 TO
$105,000) PLUS ADDED CHARGE TO COLLECT ON TAX BILL
- POSSIBLE PUBLIC BACKLASH IN VIEW OF JARVIS-GANN MANDATE
- FLAT USE CHARGE IS NOT EQUITABLE
III - CONTINUE TO LEVY FULL TAX RATE NECESSARY TO FUND 1978-79 REQUIREMENTS O;J THE BASIS
OF PREVIOUS COUNTY COUNSEL OPINION THAT SANITATION DISTRICT LEVY IS A "SPECIAL
ASSESSMENT". SAID OPINION MAY THUS EXCLUDE THE DISTRICTS FROM APPLICATION OF
JARVIS-GANN.
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - COUNTY COUNSEL HAS NOT YET RULED ON THIS OPINION
RELATIVE TO JARVIS-GANN
- MAY RESULT IN LITIGATION AND THE COURTS MAY FIND
AGAINST THIS INTERPRETATION
COUNTY SANITATION DISTRICTS
of ORANGE COUNTY,CALIFORNIA
PO BOX 8127
July 19 , 1978 10844ELLISAVENUE
FOUNTAIN VALLF Y.CAL IFORNIA 92708
(714)540-2910
(714)962-241 1
SUPPLEMENTAL ALTERNATIVES FOR FUNDING
1978-79 OPERATING/CAPITAL FUNDING REQUIREMENTS
ON JUNE 24, THE GOVERNOR SIGNED SENATE BILL 154 , ALSO KNOWN AS CHAPTER
292 , IMPLEMENTING THE JARVIS/GANN INITIATIVE. ONE OF THE PROVISIONS
OF SENATE BILL 154 INDICATES THAT THE DISTRICT WILL RECEIVE A PRO RATA
SHARE (APPROXIMATELY $7 MILLION) OF THE 1% TAX ALLOCATION IN 1978-79
ONLY. IT ALSO INDICATES THAT ENTERPRISE SPECIAL DISTRICTS , SUCH AS
THE SANITATION DISTRICTS , ARE EXPECTED TO RAISE THEIR REVENUES THROUGH
USER CHARGES AND FEES IN FUTURE YEARS AND WILL NOT RECEIVE ANY TAX
ALLOCATION AFTER THIS FISCAL YEAR.
The following two supplemental funding alternatives consider
receipt of tax funds for the 1978-79 fiscal year.
IA - This proposal assumes that the District will receive
its pro rata share of the 1% tax allocation provided
under the Jarvis/Gann Amendment for the 1978-79 fiscal
year and defers the implementation of a flat rate user
fee to the 1979-80 fiscal year. Approximately $10 . 2
million in District funds reserved for construction
would be diverted from capital accounts to operating
accounts as required during 1978-79 to fund operations .
Based on the requirements of the Districts , this pro-
posal would anticipate a flat rate user charge next
year as follows :
Alternative IA
Proposed 7 -79 Estimated 79-80
DISTRICT NO. Flat Rate Flat Rate'
1 NONE $ 46.04
2 NONE 45. 18
3 NONE 49.62
5 NONE 67. 14
6 NONE 46. 11
7 NONE 41 .60
11 NONE 64.24
(continued)
BOARD ACTIONS REQUIRED:
(1) Adopt proposal IA which eliminates
the need for a flat rate user fee
for the 78-79 fiscal year
(2) Declare intent of the Boards of
Directors to institute a user
fee revenue Program effective
July 1 , 1979
IIA - This proposal assumes the anticipated share of the 1%
property tax allocation for 78-79 as indicated in Proposal
IA, but implements a user charge per parcel this year as
listed below.
This proposal , which incorporates a flat fee and ad valorem
taxes , provides a substantial degree of equity.
Proposed User Charge
78-79 79-80
Fixed Estimated
Dist. #1 24. 98 39 . 79
Dist. #2 22. 70 39 . 50
Dist. #3 26 . 79 42. 92
Dist. #5 29 . 75 59 . 70
Dist. #6 24. 77 39 . 92
Dist . #7 13 . 93 38 . 12
Dist .#ll 36 . 82 55 . 03
We do not anticipate receiving any of the 1% property tax
allocation as provided by the Jarvis/Gann Amendment after this
current fiscal year. Under this proposal, the staff recommends
that rebates and/or exceptions be provided for properties that
are considered unsewerable and properties not receiving sewer
service.
REBATES AND EXCLUSIONS :
FULL REBATE OR EXCLUSION - Properties that are
improved but do not receive sewer service , such
as parcels that contain only carports , green-
belts , drainage channels and incidental or
adjoinint undevelopable parcels should be
exempt from a flat rate charge.
v..w
-2-
(continued)
TWO-THIRDS REBATE OR EXCLUSION - Improved and
unimproved properties that are not currently
receiving sanitary sewer service should have
a 2/3 exemption from the District charges .
Capital improvements have been and are con-
tinuing to be made for their benefit at the
treatment plants .
While it is desirable that the above-mentioned properties
be excluded from any adopted flat rate charge now, the
Sanitation Districts do not have sufficient information
to exclude all of these properties in the implementation
of a user charge flat fee. Therefore, since these properties
cannot be identified readily, it is recommended that the
implementing ordinance include a simple rebate (refund)
provision.
BOARD ACTION REQUIRED:
Adoption of an ordinance setting
forth fixed flat rate fees per
parcel for the 78-79 fiscal year
allowing for anticipated taxes
but providing for exceptions for
rebates and/or exclusions .
i
7/19/78
FLAT RATE CHARGE ESTIMATES
BASED ON VARIOUS ALTERNATIVES
Alternative IA Alternative II Alternative IIA
Proposed 7 -79 Estimated 79-80 Proposed 78-79 Estimated 79-80 Proposed 7 -79 Estimated 79- 0
DISTRICT NO. Flat Rate Flat Rate' Flat Rate** Flat Rate` Flat Rate Flat Rate*
1 NONE $ 46.04 $ 39.79 $ 39.79 $ 24.98 $ 39.79
2 NONE 45.18 39.50 39.50 22.70 39.50
3 NONE 49.62 42.92 42.92 26.79 42.92
5 NONE 67. 14 59.70 59.70 29.75 59.70
' 6 NONE 46.11 39.92 39.92 24.77 39.92
7 NONE 41 .60 38. 12 38.12 13.93 38.12
11 NONE 64.24 55.03 55.03 36.82 55.03
Average All Districts $ 49.19 $ 42.85 $ 42.85 $ 25.34 $ 42.85
y Pursuant to SB-154 adopted by the State Legislature and signed by the Governor on June 24, 1978
which implements the Jarvis-Gann initiative, the Districts would not receive any pro-rata share
of the 1% property tax levy after 1978-79.
** This rate assumed that the Districts' would not receive any tax funds based on property value in
1978-79 or subsequent years. The public notice was based on this alternative.
** No proposed flat rate in 1978-79. Districts would receive pro-rata share of 1% property tax allocation only.
BOARDS OF DIRECTORS
County Sanitation Districts Post office Box 8127
of Orange County,Cahfomia 10844 Ellis Avenue
Fountain Volley, Calif., 92708
Telephones:
A e14
JOINT BOARDS 962-911
FINAL AGENDA
ADJOURNED REGULAR MEETING
JULY 19, 1978 - 6:00 P.M.
(1) Pledge of Allegiance and Invocation
(2) Roll Call
(3) Appointment of Chairmen pro tem, if necessary L /llj
(4) Consideration of motion to receive and file minute excerpts, if any �r S G a--
(5) Public Hearing on proposed flat rate special assessment for sewer service and immediate availability for funding
1978-79 operating and capital budgetary requirements:
(a) Open hearing
(b) Report on proposed funding method(s)
(c) Consideration of motion directing Secretary to enter written comments received into record of hearing
(d) Public comment
Persons in attendance wishing to be heard should complete Request to Present Oral Comment at Public Hearing
form (blue form) and submit to the clerk at the table marked "SUBMIT ORAL COMMENT REQUEST FORM HERE". Oral
comments will be heard in order of submittal of the form to the clerk.
OR
Persons in attendance wishing to submit a written statement in protest or support of the proposed assessment
may do so by completing the Written Statement Regarding Proposed Assessment form (salmon-colored form) and
submit to the clerk at the table marked "SUBMIT WRITTEN STATEMENT FORM HERE". Your statement will become
a part of the official record of the hearing.
(e) Close public hearing T.40
(6) Consideration of motion to introduce revised ordinance of each respective District establishing sewer service and
immediate availability charges, and to read said ordinance of each respective District by title only and waiving
reading of each ordinance in its entirety:
DISTRICT TITLE
1 Ordinance No. 104 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
2 Ordinance No. 205 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
3 Ordinance No. 306 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
5 Ordinance No. 510 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
6 Ordinance No. 604 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
7 Ordinance No. 717 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
11 Ordinance No. 1105 (Revised), An Ordinance Establishing Flat Rate Special Assessment for Sewer Service
and Immediate Availability
(7) Consideration of action on report re flat rate special assessment for sewer service and immediate availability
charges
(8) Other business and communications, if any 1 0• 6 v
(9) Consideration of motion to adjourn
TLW:pj.
07/19/18
ORDINANCE NO. (REVISED)
AN ORDINANCE ESTABLISHING FLAT RATE SPECIAL ASSESS-
MENTS FOR SEWER SERVICE AND IMMEDIATE AVAILABILITY
The Board of Directors of County Sanitation District No.
of Orange County, California, does hereby ORDAIN as follows:
Section 1: Purpose. The purpose of this Ordinance is
to establish a system of sanitary sewer service assessments,
together with immediate availability assessments required to be
paid by property owners for the services and facilities furnished
by the District in connection with its sanitation treatment works
and sewage collection system. Pursuant to the provisions of
Public Law 92-500 , and Public Law 95-217, commonly referred to
respectively as the Federal Water Pollution Control Act Amend
ments of 1972 , and the Clean Water Act of 1977, the District is
mandated thereby to provide a system of user charges.
Revenues derived under the provisions of this Ordinance
shall be used for the acquisition, construction, reconstruction,
maintenance and operation of the sewage collection facilities
and wastewater treatment and disposal facilities of the District,
together with costs of administration, debt retirement and
provisions for necessary reserves.
Section 2 : Annual Sewer Service Assessments. Each parcel
of real property located within the District which is -improved
with structures designed for residential, commercial or industrial
use, shall pay a flat rate special assessment for sewer service
e
in the sum of $ provided, however, that upon the Orange
County Auditor allocating to this District, pursuant to Lr„�
Government Code Section 26912, a portion of the ad valorem
real property tax levied pursuant to California Revenue and
Taxation Code Section 2237, the flat rate special assessment
for sewer service shall be in the sum of $
Section 3: Application of Ordinance. The provisions of
this Ordinance shall be in addition to Ordinance No. of
the District establishing regulations for use of District' s
sewage facilities, including provisions for payment of charges
or fees related thereto.
Section 4 : Exceptions. The provisions of this Ordinance
shall apply to all properties in the District, and no exception
shall be provided for properties otherwise deemed exempt by
provisions of the State Constitution or statute, such as
properties owned by other public agencies or charitable founda-
tions, except as expressly provided in Section 5 hereof.
Section 5 : Exemptions - Rebates. In recognition that
certain legal parcels of real property exist within the District
which are undeveloped, unsewered or unsewerable, it is the intent
of the District that said parcels be totally or partially exempt
from the payment of charges as prescribed herein, all in ac-
cordance with the following:
A. Unsewerable parcels shall be entitled to a 100% rebate
of the charges assessed and levied;
B. Unsewered parcels developed with a structure shall be
entitled to a 66-2/3% rebate of the charges assessed and levied;
-2-
i
C. Unsewered parcels undeveloped with a structure shall
r.d be entitled to a 66-2/3% rebate of the charges assessed and
levied; and
D. Improved parcels owned by public agencies but which
are not developed with a structure thereon, such as parks,
and NOT containing any sewer connection shall be entitled to
a 100% rebate of the charges assessed and levied.
Any property owner may submit a claim for rebate to the .
District on the forms prescribed and provided by the District
within one hundred twenty (120) days after the annual property
tax bills are mailed by the Orange County Tax Collector.
All applications for rebate will be determined by the General
Manager of the District and his decision shall be final.
For purposes of this Section, "unsewerable" parcels shall
be defined to include, but not limited to, those that are used
exclusively for private roadways or walkways; a single structure
on two or more lots; a carport or garage lot separate from an
adjacent residential structure on a separate lot; remnant
parcels from public right-of-way which are less than the local
code re minimum building lot size.
Section 6 : Credits Against Other Charges Due. The annual
flat rate special assessment for sewer service established by
the provisions of this Ordinance, shall be applied as a credit
against use charges imposed upon a parcel of property pursuant
to Ordinance No. Establishing Regulations for Use of
District Sewerage Facilities (Industrial Wastewater Ordinance) ,
as amended.
-3-
e '
Section 7 : Assessment Based on Fiscal Year. The flat
rate special assessments for sewer service and immediate sewer
availability established by this Ordinance, shall be for the
fiscal year commencing July 1 and terminating June 30, and there
shall be no proration of such assessments.
Section 8 : Pursuant to. the authority granted by California
Health and Safety Code Section 5473, all assessments established
herein shall be collected on the County Tax Roll in the same
manner, by the same persons and at the same time as, together
with and not separately from, its general taxes. The County
Tax Collector is authorized and hereby ordered to make said
collections in accordance with the terms and conditions of
agreements between the County of Orange and this District.
Section 9 : Severability. If any provisions of this
Ordinance or the application to any person or circumstance is
held invalid by order of court, the remainder of the Ordinance
or the application of such provision to other persons or in
other circumstances shall not be affected.
Section 10: Effective Date. This Ordinance shall become
effective immediately upon its adoption by vote of two-thirds
of the members of the Board.
Section 11: The Secretary shall certify to the adoption
of this Ordinance and shall cause the same to be published in a
newspaper of general circulation in the District as required by
law.
-4-
COUNTY SANITATION DISTRICTS
01 ORANGE COUNTY,CALIFORNIA
P O.BOX 8127
10844 ELLISAVENUE
July 19, 1978 FOUNTAIN VALLEY,CALIFORNIA92708
(714)540-2910
�1 (714)962.2411
PUBLIC HEARING JULY 19, 1978 - 6:00 P.M. RE PROPOSAL TO ESTABLISH
AND COLLECT FLAT RATE SPECIAL ASSESSMENTS FOR SE14ER SERVICE AND
IMMEDIATE AVAILABILITY ON TAX ROLL
In the past, the Sanitation Districts have received the bulk
of their revenues from a special assessment for sewer service
against all real property and improvements in the Districts based
on the ad valorem property rolls of the County. The cost to the
homeowner whose property is assessed at $13,000 - $15,000, has been
$3 to $5 per month, depending on the District, for sewer service
exclusive of maintenance of local sewers. This has been collected
via the County tax bill.
With the passage of the Jarvis/Gann Initiative (proposition 13) ,
the question arises: Does this provision prohibit the Districts
from levying the special assessments that have been levied in all
prior years?
While the Jarvis/Gann Initiative did not bar this procedure,
the actions of the State Legislature in subsequent legislation
(Senate Bill 2212 enacted on June 30) barred the use of instituting
any charge based on property valuation other than the allowable 1%
ad valorem levy.
Under consideration are several proposals to institute a flat
rate special assessment. These are attached.
The Sanitation Districts operate the third largest wastewater
(sewage) treatment system on the West Cost. The capital costs of
present day facilities are $229 million; additional construction
required during the next 8 years will double this figure. The
Districts collect, treat, and dispose of wastewater from 408,000
residential, commercial and industrial connections serving 1.5
million citizens in the 23 cities in the Orange County metropolitan
area.
u
Ad valorem assess- In spite of the increased demands
40 ment rate for sewer service and additional
39 facilities required by higher
State and Federal environmental
38 standards , the combined average
y 37 annual variable ad valorem special
assessment rate has steadily de-
= 36 clined from 42e/$100 assessed
35 valuation in 72-73 to 31(,%/$100
assessed valuation in 77-78. The
34 Districts' Boards of Directors
33 have reduced the budget require-
32 ments to lighten the property-
f owners' burden by $2.2 million
3> I I I for this fiscal year (78-79) .
73 74 7775 767� 77
IF I S C�AL 7YEA7R
Annual revenues come from variable rate ad valorem special
assessments, connection fees, induatrial use fees, annexation
charges and State and Federal construction grants. The annual
expenditures break down approximately 10% for operations and
maintenance, 87% for current and planned treatment plant and
trunk sewer construction, 3% for bonded debt retirement.
COUNTY SANITATION DIc-RICT N0. (ALL) 7/18/78
PRELIMINARY STATEMENT 00 .tOJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
MILLIONS OF DOLLARS
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER CONSTRUCTION RESERVES $38 $77 $70 $61 $39
REVENUE
Assessments @ $42.85/pa-rcel 17 17 17 17 17
Construction Grants 14 19 31 36 29
Loan in Aid of Construction 1
Industrial User Fees & Connection Fees 4 3 3 3 3
Interest 6 Other Income 5 3 3 3 2
TOTAL FUNDS AVAILABLE $129 $119 $124 $120 $90
EXPENDITURES
Trunk Sewer & Pump Station Construction $11 $ 6 $ 4 $ 6 $ 3
Treatment Plant Construction 30 30 43 51 38
Treatment Plant Mtce S Operation 8 11 13 21 26
Trunk Sewer Mtce & Operation & Other 3 2 3 3 4
TOTAL EXPENDITURES $52 $49 $63 $81 $71
Carry-Over Construction Reserves $77 $70 $61 $39 $19
Funds Required 25 32 40 36 36
Fund Balance or (Deficit) $52 $38 $21 $ 3 ($17)
ALL DISTRICTS
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSMENT FOR SEWER SERVICE
& IMMEDIATE AVAILABILITY ..-
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
& Reserves 41 ,662,824 25,933,200 (15,729,624)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves 61 ,058,000 85,075,000 24,017,000
Joint Operating (Treatment Plant) Expense 6,817,884 8, 153,000 1 ,335, 116
District Operating & Other Expenditures 7,009,700 8,548,800 1 ,539, 100
Distribute Upper Basin Joint Works
Equity to other CSD' s 1 , 141 ,000 1 , 141 ,0--
TOTAL REQUIREMENTS 116,543,408 128,851 ,000 12,302,592
Estimated Revenue
Federal-State Grants 14, 152,000 13,759,000 ( 393,000)
Sale of Capacity Rights 660,000 1 ,213,000 553,000
Connection Fees & Industrial User Charges 3,858,000 4,236,000 378,000
Interest & Misc. Income 3,629,637 3,517,000 ( 112,637)
Other 3,003,000 1 ,500,000 (1 ,503,000)
Carry-over 71 ,836,318 87,461 ,000 15,624,682
TOTAL OTHER REVENUE 97, 138,955 111 ,636,000 14,547,045
Amount to be raised by Assessment 19,409,453 17, 165,000 ( 2,244,453)
Estimated Number of Parcels in the
District 400,560
Estimated Annual Flat Rale Special
Assessment for Sewer Service &
immediate availability $42.85 per parcel
(Average)
Ch. 292 —14—
fund reserves" shall not include:
(1) Noncash assets such as stores, inventory, property and
buildings, or other investments.
(2) Any aniounts for self-insurance, for contractual obligations,or
for reserves established by a governing board policy adopted prior
to July 1, 1978. THIS SECTION IS EXCERPTED
(3) Any amounts restricted by law or court order. FROM SB-15 WHICH WAS
(4) Any amounts committed to a capital outlay project approved
prior to June G, 1978, by the board of supervisors. ADOPTED BY THE STATE
(f) For the purpose'of this subdivision, the amount of property tax LEGISLATURE AND SIGNED INTO
collections pursuant to paragraphs (1) and (2) of Section 2270 of the LAW BY THE GOVERNOR ON
Revenue and Taxation Code for the purpose of making annual JUNE 24, 197 , SUBSEQUENT
payments for the interest and principal on outstanding general TO PASSAGE OF PROPOSITION 13 .
obligation bonds or other indebtedness approved by the voters prior
to July 1, 1978.
(g) Furds distributed for this section shall be given first for police It is my opinion that this
and fire programs in order not to jeopardize the health and safety of section when combined
the community. The legislative body shall ensure that the level of with Government Code
police and fire protection programs actually provided in the 1977-78 Section 26912 , will provide
fiscal ),car shall be continued in 197&:79. for the Districts to
Nothing in this section shall prevent the legislative body from
reviewii,g and establishing its police and fire protection program in receive an apportionment
the 1578--79 fisc.11 year in a manner which will make such program of the tax levy for 1978/79
more efficient and effective. only. In subsequent years ,
(h) The Controller shall estimate the amounts required to be the Districts will not
determined pursuant to subdivision (b) (3). receive any portion of the
The Controller shall determine the actual amounts and make a 1% ad valorem property tax
reconciliation with the April 10, 1979, distribution. levy.
(x) The amount allocated in subdivision (a) shall be reduced by
an amount equal to the doilar.amount of any cost-of-living increase `
in aid payments under the Aid to Families with Dependent Children � �♦y, I'
program, as provided in Section 35 of this bill.
CHAPTER 3. SPECIAL DISTRICTS Thomas L. Woodruff
General Counsel
Article 1. General Provisions and Definitions
16270. The Legislature finds and declares that many special
districts have: the ability to raise revenue through user charges and
fees and that their ability to raise revenue directly fi•oni the property
tax for district operations has been eliminated by Article XIII A of the
C;.liforrria Constitution. It is the intent of the Legislature that such
districts rely on user fees and charges for raising revenue due to the
lack of the availability of property tax revenues after the 1978-79
fiscal year. Such districts are encouraged to begin the transition to
-User fees and charges during the 1978-79 fiscal year.
16271. As used in this ch:ipicr:
(a) "Governing body"nicans the:board of supervisors except that
96 4SO
JUNE 14, 1978
AVAILABLE ALTERNATIVES FOR FUNDING AGENDA ITEM #5
1978-79 OPERATING/CAPITAL FUNDING REQUIREMENTS
JARVIS-GANN WILL REDUCE THE DISTRICTS' CURRENT (1977-78) $19.4 MILLION TAX LEVY
BY A MINIMUM OF 58% IF THE DISTRICTS RECEIVE A PRO-RATA SHARE OF THE TAXES ALLOWED TO
BE COLLECTED BY THE TAX LIMITATION INITIATIVE, TO A MAXIMUM OF 100% IF THE DISTRICTS
RECEIVE NO TAXES UNDER THE ALLOCATION METHOD YET TO BE DECIDED BY THE STATE LEGISLATURE.
ALTERNATIVE METHODS OF FUNDING THE DISTRICTS SEWAGE COLLECTION, TREATMENT AND
DISPOSAL ACTIVITIES FOR 1978-79 ARE AS FOLLOWS:
I - FUND 1978-79 REQUIREMENTS FROM CONSTRUCTION RESERVE FUNDS (ASSUMES NO PRO-RATA
SHARE OF 1% TAX ALLOCATION
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - FUNDS RESERVED FOR CONSTRUCTION TO COMPLY WITH
FEDERAL AND STATE LAWS WOULD BE DIVERTED FROM
CAPITAL TO OPERATING
- NEEDED AND/OR REQUIRED CONSTRUCTION PROJECTS
MAY BE DELAYED
- FUNDS WOULD HAVE TO BE REPAID TO CONSTRUCTION
RESERVES IN FUTURE YEARS REQUIRING DISPROPOR-
TIONATELY HIGHER CHARGE IN THOSE YEARS
- LOSS OF INTEREST EARNINGS
II - FUND 1978-79 REQUIREMENTS BY ESTABLISHING A FLAT RATE USER/AVAILABILITY CHARGE
AGAINST EACH PARCEL OF PROPERTY TO BE COLLECTED BY THE TAX BILL
MAJOR ADVANTAGES - PROVIDES FINANCING FOR 1978-79 OPERATING AND
CAPITAL REQUIREMENTS WITHOUT SUBSTANTIAL USE
OF CONSTRUCTION RESERVES
- STABILIZES PROPERTY OWNER CHARGES AND DISTRICTS
CASH FLOW
- ACCOMMODATES PHASING OF USER CHARGE/REVENUE PROGRAM
• REQUIRED TO BE IMPLEMENTED IN 1979-80 BY EPA AND SWRCB
14AJOR DISADVANTAGES - REQUIRES PUBLIC NOTICE AND HEARINGS IN A RELATIVELY
SHORT TIME FRAME TO IMPLEMENT
- DISTRICTS WILL INCUR ADDED ADMINISTRATIVE OVERHEAD
COST TO IMPLEMENT (ESTIMATED AT BETWEEN $75,000 TO
$105,000) PLUS ADDED CHARGE TO COLLECT ON TAX BILL
- POSSIBLE PUBLIC BACKLASH IN VIEW OF JARVIS-GANN MANDATE
- FLAT USE CHARGE IS NOT EQUITABLE
III - CONTINUE TO LEVY FULL TAX RATE NECESSARY TO FUND 1978-79 REQUIREMENTS ON THE BASIS
OF PREVIOUS COUNTY COUNSEL OPINION THAT SANITATION DISTRICT LEVY IS A "SPECIAL
ASSESSMENT". SAID OPINION MAY THUS EXCLUDE THE DISTRICTS FROM APPLICATION OF
JARVIS-GANN.
- MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - COUNTY COUNSEL HAS NOT YET RULED ON THIS OPINION
RELATIVE TO JARVIS-GANN
- MAY RESULT 114 LITIGATION AND THE COURTS MAY F I NP
AGAINST THIS INTERPRETATION
COUNTY SANITATION DISTRICTS
of ORANGE COUNTY.CALIFORNIA
P O BOX 8127
July 19 , 1978 10844 ELLIS AVENUE
FOUNTAIN VALLEY.CALIFORNIA 92708
(714)540-2910
(714)962.2411
SUPPLEMENTAL ALTERNATIVES FOR FUNDING
1978-79 OPERATING/CAPITAL FUNDING REQUIREMENTS
ON JUNE 24, THE GOVERNOR SIGNED SENATE BILL 154 , ALSO KNOWN AS CHAPTER
292 , IMPLEMENTING THE JARVIS/GANN INITIATIVE. ONE OF THE PROVISIONS
OF SENATE BILL 154 INDICATES THAT THE DISTRICT 14ILL RECEIVE A PRO RATA
SHARE, (APPROXIMATELY $7 MILLION) OF THE 1% TAX ALLOCATION IN 1978-79
ONLY. IT ALSO INDICATES THAT ENTERPRISE SPECIAL DISTRICTS , SUCH AS
THE SANITATION DISTRICTS , ARE EXPECTED TO RAISE THEIR REVENUES THROUGH
USER CHARGES AND FEES IN FUTURE YEARS AND [•SILL NOT RECEIVE ANY TAX
ALLOCATION AFTER THIS FISCAL YEAR.
The following two supplemental funding alternatives consider
receipt of tax funds for the 1978-79 fiscal year.
IA - This proposal assumes that the District will receive
its pro rata share of the 1% tax allocation provided
under the Jarvis/Gann Amendment for the 1978-79 fiscal
year and defers the implementation of a flat rate user
fee to the 1979-80 fiscal year. Approximately $10 . 2
million in District funds reserved for construction
would be diverted from capital accounts to operating
accounts as required during 1978-79 to fund operations .
Based on the requirements of the Districts , this pro-
posal would anticipate a flat rate user charge next
year as follows :
Alternative IA
Proposed 7 -79 Estimated 79-80
DISTRICT NO. Flat Rate Flat Rate---
I NONE $ 46.04
2 NONE 45. 18
3 NONE 49.62
5 NONE 67. 14
6 NONE 46. 11
7 NONE 41 .60
11 NONE 64.24
(continued)
BOARD ACTIONS REQUIRED:
(1) Adopt proposal IA which eliminates
the need for a flat rate user fee
for the 78-79 fiscal year
(2) Declare intent of the Boards of
Directors to institute a user
fee revenue program effective
July 1, 1979
IIA - This proposal assumes the anticipated share of the 1%
property tax allocation for 78-79 as indicated in Proposal
IA, but implements a user charge per parcel this year as
listed below.
This proposal , which incorporates a flat fee and ad valorem
taxes , provides a substantial degree of equity.
Proposed User Charge
78-79 79-80
Fixed Estimated
Dist. #1 24. 98 39 . 79
Dist. #2 22 . 70 39 . 50
Dist. #3 26 . 79 42 . 92
Dist. #5 29 . 75 59 . 70
Dist. #6 24. 77 39 . 92
Dist. #7 13 . 93 38 . 12
Dist .#ll 36 . 82 55 . 03
We do not anticipate receiving any of the 1% property tax
allocation as provided by the Jarvis/Gann Amendment after this
current fiscal year. Under this proposal , the staff recommends
that rebates and/or exceptions be provided for properties that
are considered unsewerable and properties not receiving sewer
service.
REBATES AND EXCLUSIONS :
FULL REBATE OR EXCLUSION - Properties that are
improved but do not receive sewer service , such
as parcels that contain only carports , green-
belts , drainage channels and incidental or
adjoinint undevelopable parcels should be
exempt from a flat rate charge.
-2-
(continued)
TWO-THIRDS REBATE OR EXCLUSION - Improved and
unimproved properties that are not currently
receiving sanitary sewer service should have
a 2/3 exemption from the District charges .
Capital improvements have been and are con-
tinuing to be made for their benefit at the
treatment plants .
While it is desirable that the above-mentioned properties
be excluded from any adopted flat rate charge now, the
Sanitation Districts do not have sufficient information
to exclude all of these properties in the implementation
of a user charge flat fee . Therefore, since these properties
cannot be identified readily, it is recommended that the
implementing ordinance include a simple rebate (refund)
provision.
BOARD ACTION REQUIRED:
Adoption of an ordinance setting
forth fixed flat rate fees per
parcel for the 78-79 fiscal year
allowing for anticipated taxes
but providing for exceptions for
rebates and/or exclusions .
7/19/78
FLAT RATE CHARGE ESTIMATES
BASED ON VARIOUS ALTERNATIVES
Alternative IA Alternative II Alternative IIA
Proposed 7 -79 Estimated 79-80 Proposed 7 -79 Estimated 79- 0 Proposed 7 -79 Estimated 79-80
DISTRICT NO. Flat Rate Flat Rate` Flat Rate** Flat Rate* Flat Rate Flat Rate*
1 NONE $ 46.04 $ 39.79 $ 39.79 $ 24.98 $ 39.79
2 NONE 45.18 39.50 39.50 22.70 39.50
3 NONE 49.62 42.92 42.92 26.79 42.92
5 NONE 67.14 59.70 59.70 29.75 59.70
6 NONE 46.11 39.92 39.92 24.77 39.92
7 NONE 41 .60 38.12 38.12 13.93 38.12
11 NONE 64.24 55.03 55.03 36.82 55.03
Average All Districts $ 49.19 $ 42.85 $ 42.85 $ 25.34 $ 42.85
Pursuant to SB-154 adopted by the State Legislature and signed by the Governor on June 24, 1978
which implements the Jarvis-Gann initiative, the Districts would not receive any pro-rata share
of the 1% property tax levy after 1978-79•
** This rate assumed that the Districts' would not receive any tax funds based on property value in
1978-79 or subsequent years. The public notice was based on this alternative.
** No proposed flat rate in 1978-79. Districts would receive pro-rata share of 1% property tax allocation only.
� f t
SUMMARY OF WRITTEN PROTESTS
REGARDING PROPOSED FLAT RATE ASSESSMENT
Written Protests Received as of 4 : 00 p.m. 246 Staff Comments
Properties not using sewer Staff comments:
Approximately 370 of the written protests FULL REBATE OR EXCLUSION - Properties that
are from property owners that are not connected are improved but do not receive sewer service,
or whose property is unsewerable or mineral such as parcels that contain only carports ,
rights only. greenbelts , drainage channels and incidental
or adjoining undevelopable parcels should be
exempt from a flat rate charge.
TWO-THIRDS REBATE OR EXCLUSION - Improved
and unimproved properties that are not
currently receiving sanitary sewer service
should have a 2/3 exemption from the District
charges. Capital improvements have been
and are continuing to be made for their
benefit at the treatment plants .
Circumventation of Jarvis-Gann See General Counsel ' s opinions and SB-154
adopted by legislature mandating special
Many feel that because of Jarvis-Gann, the use Districts to convert to user charge.
charge is illegal
and/or
That the Districts must operate within their
share of the l% total property tax allocation.
and/or
The Districts and Fire and Police should
receive full budgetary requirements from the
1% property tax allocation, and other taxing
agencies should share what is left over.
Continuation of Written Protests Staff Comments
Other User Charge Bases All systems have been considered previously
and have inherent inequities and would cost
Suggestions have been made that rather than a substantially more to administer (see comments
flat rate use charge, the Districts should base below) and require expensive billing systems.
the charge on the following and bill separately The tax bill is the most cost effective
each month like utilities: collection system.
Number of occupants . . . . . . . . . . . . . . Would require annual census for each property.
Water Use . . . . . . . . . . . . . . . . . . . Would require obtaining water use information
for each parcel from over 80 separate water
companies .
Metered Sewage Discharge . . . . . . . . . . . . Would require installation of meters on each
property which is impracticable.
Many have suggested the Districts remain on This was the alternative adopted by the Boards,
current ad valorem (variable) system however, the County Counsel has ruled against
it.
Misunderstandings
Additional Charge The proposed flat rate would replace the
existing ad valorem (variable) system except
Many homeowners feel the flat rate is an for bond .debt.
additional District charge over and above
the current ad valorem (variable rate)
Inequitable
Industries - Many think that industries will Industrial dischargers pay an additional use
pay the flat rate only. charge of approximately $2 ,000 , 000 per year
Multiple dwelling and commercial parcels The 1978-79 proposed flat rate (Alt. II)
is inequitable for multiple dwelling proper-
ties , however, this would be corrected in
1979-80 upon completion of revenue program
presently under design.
Alt. IIA would minimize the inequity because
the parcels would still pay a portion of their
District charge based on property value.
_2-
s
Continuation of Written Protests Staff Comments
(Continuation of Misunderstandings)
New Developments Except for Dists . 1 and 6 all new connections
to the system pay a connection fee (approx.
Many suggest new developments pay the $250 per unit) . Areas that annex to the
added costs . Districts pay annexation fees (approx.
$1300/acre) plus the connection fee.
Further, the added cost for secondary treat-
ment is for existing properties (present
capacity)
Cut Expenditures Because of the nature of our operation
(sewage treatment/public health and safety)
our budgets do not contain "frill" items.
Further (1) We have a freeze on hiring
(2) Management staff has been reduced
50% in recent years .
The charge to the property owners for 1978-79
is being reduced $2 . 2 million from 1977-78 .
Federal and State Regulations Our Directors have worked vigorously for a
a change in the Federal law that would save
Many suggest we ignore or sue the Federal the Districts $100 million in capital costs
and State Governments over the requirements and $7-$8 million in annual operating costs.
that are being imposed. The law was finally changed in 1977 (December)
to allow a waiver provided certain criteria
are met. The Districts are applying for this
waiver and, if successful , the above savings
will be realized.
Environmentalists
Many suggest we follow the same approach with
environmentalists as with Federal and State
Government.
-3-
ALTERNATIVE II
Establishing Flat Rate Special Assessment for
Sewer Service and Immediate Availability to
be Collected on the Tax Rol].
Gp,T' 01?11 N L�
Report Required By Section 5473
of the Health and Safety Code
COUNTY SANITA1 ION DISTRICTS
01 ORANGE COUNTY.CALIFORNIA
P 0 BOX 81.17
10844 ELLIS AVENUE
FOUNTAIN VALLEY.CALIFORNIA31108
(714)540.2910
REPORT RE SEWER SERVICE FEES-- (714)962-2411
COUNTY SANITATION DISTRICTS OF
ORANGE COUNTY, CALIFORNIA
PREFACE
This report is prepared pursuant to the requirements of
California Health and Safetv Code Section 5473. The purpose
of said report is to give public notice of the intent of the
County Sanitation Districts to consider the adoption of an
Ordinance that will prescribe fees and charges for sanitary
sewer services provided by the Districts and to be charged to
respective parcels of property within the territorial juris-
diction of the Districts. This report contains a description
of each parcel of real property that will receive the services
of the Districts and have access to utilization of the facilities,
said parcels of real property being described by reference -to
maps prepared in accordance with Section 327 of the California
Revenue and Taxation Code and on file in the office of the
County Assessor, with copies on file in the office of the Clerk
of these Districts . Additionally, this report sets forth the
amount of the charge for each parcel for fiscal year 1978-79 .
The Ordinance under consideration by the governing Board
of Directors of these Districts will provide revenues which shall
be used only for the acquisition, construction, reconstruction,
maintenance and operation of sanitary sewer facilities, and
shall not be used for the acquisition or construction or mainte-
nance of new local street sewers or laterals as distinguished
from main trunk, interceptor and outfall sewers provided by
these Districts.
If the proposed Ordinance is adopted, the legislative
authority may elect to have such charges for the forthcoming
fiscal year collected on the tax roll in the same manner, by
the same persons, and at the same time as, together with and
not separately from, the general taxes of these Districts and
the County of Orange.
At the time stated in the notice setting the public hearing
on this report, the governing Board of Directors shall hear and
consider all objections or protests, if any, to said report
referred to in said notice, and may continue the hearing from
time to time.
i
DATED: June 22 , 1978
Thomas L. Woodruff, General. Counsel
Lr►1
Supporting Material for
Flat Rate Special Assessment
for Sewer Service and Immediate
Availability Charge
ALL DISTRICTS
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSINENT FOR SEWER SERVICE
IfMEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating s Capital Requirements
District (Collection System) Construction
Reserves 41 ,662,824 25,933,200 (15,729,624)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves 61 ,058,000 85,075,000 24,017,000
Joint Operating (Treatment Plant) Expense 6,817,884 8, 153,000 1 ,335, 116
District Operating S Other Expenditures 7,009,700 8,548,800 1 ,539, 100
",.stribute Upper Basin Joint Works
...quity to other CSD's 1 , 14i ,000 1 , 141 ,000
TOTAL REQUIREMENTS 116,543,408 128,851 ,000 12,302,592
Extended Revenue
Federal-State Grants 14,152,000 13,759,000 ( 393,000)
Sale of Capacity Rights 660,000 1 ,213,000 553,000
Connection Fees & Industrial User Charges 3,858,000 4,236,000 378,000
Interest & Misc. Income 3,629,637 3,517,000 ( 112,637)
Other 3,003,000 1 ,500,000 (1 ,503,000)
Carry-over 71 ,836,318 87,461 ,000 15,624,682
TOTAL OTHER REVENUE 97, 138,955 111 ,636,000 14,547,0115
Amount to be raised by Assessment 19,409,453 17, 165,000 ( 2,244,1153)
Es..iated Number of Parcels in the
District 400,560
Estimated Annual Flat Rate Special
Assessment for Sewer Service &
Immediate availability $42.85 pewr parcel
%t"rin( )
6/22/78
COUNTY SANITATION DISTRICT NO. (ALL)
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-80 8o-81 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $ 87,461 ,000 $76,830,000 $70,277,000 $60,969,000 $39,335.000
REVENUE
Assessment at $ /parcel 17,165,000 17,165,000 17,165,000 17,165,000 17,165,000
Other Revenue
Federal s State Participation 13,759,000 18,749,000 30,583,000 36,063,000 29,563,000
Loan in Aid of Construction 1 ,150,000
Sale of Capacity Rights 1 ,213,000 73,000 73,000 73,000 73,000
Fees 4,236,000 3,697,000 3,491 ,000 3,232,000 2,857,000
Miscellaneous 3,867,000 3,066,000 2,798,000 2,435,000 1 ,557,000
TOTAL FUNDS AVAILABLE $128,851 ,000 $119,580,000 $124,387,000 $119,937,000 $90,550,000
EXPENDITURES
District Construction $ 10,868,000 $ 5,577,000 $ 4,054,000 $ 6,163,000 $ 2,999,000
Share of Joint Works Construction 29,639,000 30,434,000 43,048,000 50,618,000 38,213,000
Repay Loan in Aid of Construction 200,000 Z00,000 200,000 200,000 200,000
Refunds of Capital Cost Recovery
to Federal Treasury 1 ,141 ,000 100,000 100,000 100,000 335,000
Share of Joint Operating 8,151 ,000 10,667,000 13,343,000 20,448,000 26,118,000
District Operating & Other
Expenditures 2,022,000 2,325,000 2,673,000 3,073,000 3.533,000
TOTAL EXPENDITURES $ 52,021 .000 $ 49,303,000 $63,418,000 $80,602,000 $71 ,398.000
Carry-Over Balance to Following
Fiscal Year $ 76,830,000 $ 70,277,000 $ 60,969,000 $39,335,000 $19,152,000
Funds Necessary to Meet
Coriiitments Prior to
Receipt of Tax Apportionments 24,653,000 32,210,000 40,303,000 35,700,000 35,700,000
Fund Balance or (Deficit) $ 52,177,000 $ 38,067,000 $ 20,666,000 $ 3,635,000 ($ 16,548,000)
1J1� IKIUI NU,
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSMENT FOR SEWER SERVICE
& IMMEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
& Reserves 900,000 638,000 (202,000)
Joint Works (Treatment Plant) Construction
and Equity Purchase s Reserves 6,566,564 7,075,000 508,436
Joint Operating (Treatment Plant) Expense 789,511 924,000 134,489
District Operating & Other Expenditures
E Reserves 607,450 747,000 139,550
TOTAL REQUIREMENTS 81863,525 9,384,000 520,1175
Extended Revenue
Federal-State Grants 1 ,234,000 1 ,249,000 15,000
Sale of Capacity Rights 32,000 154,000 122,000
Connection Fees & Industrial User Charges 234,000 244,000 10,000
Interest & Misc. Income 410,300 352,000 ( 58,300)
Carry-over 5,656,452 6,026,000 369,548
TOTAL OTHER REVENUE 7,566,752 8,025,000 458,248
Amount to be raised by Assessment 1 ,296,773 1 ,359,000 62,227
F-Fimated Number of Parcels in the
strict 34,.155
Estimated Annual Flat Rate Special
Assessment for Sewer Service E
immediate availability 39.79
6/22/78
COUNTY SANITATION DISTRICT NO. 1
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $6,026,000 $5,599,000 $5,086,000 $4,150,000 $2,168,000
REVEI.UE
Assessment at $39.79/parcel 1 ,359,000 1 ,359,000 1 ,359,000 1 ,359,000 1 ,359,000
Other Revenue
Federal & State Participation 1 ,249,000 1 ,704,000 2,780,000 3,278,000 2,687,000
Sale of Capacity Rights 154,000 7,000 7,000 7,000 7,000
Fees 244,000 260,000 279,000 302,000 302,000
Miscellaneous 352,000 323,000 295,000 239,000 127,000
TOTAL FUNDS AVAILABLE $9,384,000 $9,252,000 $9,806,000 $9,335,000 $6,650,OOo
EXPENDITURES
District Construction $ 75,000 $ 75,000 $ 100,000 $ 100,000 $ 100,000
Share of Joint Works Construction 2,694,000 2,767,000 3,913,000 4,601 ,000 3,474,000
Refunds of Capital Cost Recovery
to Federal Treasury -0- 9,000 9,000 9,000 30,000
Share of Joint Operating 924,00o 1 ,209,000 1 ,512,000 2,317,000 2,959,000
District Operating & Other
Expenditures 92,000 106,000 122,000 140,000 161 ,000
TOTAL EXPENDITURES $ 3,785,000 $4,166,000 $5,656,000 $7,167,000 $6,724,000
Carry-Over Balance to Following
Fiscal Year $ 5,599,000 $5,086,000 $4,150,000 $2,168,000 $ (74,000)
Funds Necessary to Meet
Cor..iitments Prior to
Receipt of Tax Apportionments 2,083,000 2,828,000 3,584,000 3,362,000 3,362,000
Fund Balance or (Deficit) $ 3,516,000 $ 2,258,0o0 $ 566,000 ($1 ,194,000) ($3,436,000)
l
DISTRICT N0, 2
PRELIMINARY ESTI11ATE OF ANNUAL FLAT RATE
SPECIAL ASSESSMENT FOR SEWU SERVICE
& IfMEDIATE AVAILABILITY
1978-79
77-78 78-79 (Decrease)
Estimated Operating E Capital Requirements
District (Collection System) Construction
& Reserves 10,710,993 5,799,000 (4,911 ,993)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves 22,474,534 28,005,000 5,530,466
Joint Operating (Treatment Plant) Expense 2, 123,089 2,625,000 501 ,911
District Operating b Other Expenditures
& Reserves 1 ,781 ,000 2,261 ,000 480,000
'istribute Upper Basin Joint Works 1 , 141 ,000 1 , 141 ,000
.Equity to other CSD s
TOTAL REQUIREMENTS 37,089,616 39,831 ,000 2,741 ,384
Extended Revenue
Federal-State Grants 4,356,000 4, 114,000 ( 242,000)
Sale of Capacity Rights 455,000 22,000 ( 433,000)
Connection Fees & Industrial User Charges 1 ,580,000 1 ,530,000 ( 50,000)
Interest & Misc. Income 1 ,024,000 1 ,089,000 65,000
Carry-over 24,425,236 28,588,000 4, 162,764
TOTAL OTHER REVENUE 31 ,8 0,236 35,343,000 3,502,764
Amount to be raised by Assessment 5,249,380 4,488,000 ( 761 ,380)
L imated Number of Parcels in the
ristrict 113,610
Estimated Annual Flat Rate Special
Assessment for Sewer Service b
immediate availability 39.50
6/22/78
COUNTY SANITATION DISTRICT NO. 2
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-8o 80-87 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $28,588,000 $24,751 ,000 $24,125,000 $21 ,820,000 $16,144,000
REVENUE
Assessment at $39.50/parcel 4,488,000 4,488,000 4,488,000 4,488,000 4,488,000
Other Revenue
Federal S State Participation 4,114,000 5,591 ,000 9,120,000 10,754,000 8,816,o00
Sale of Capacity Rights 22,000 22,000 22,000 22,000 22,000
Fees 1 ,530,000 1 ,400,000 1 ,300,000 1 ,200,000 1 ,000,000
Miscellaneous 1 ,089,000 936,000 914,C00 827,000 609,00o
TOTAL FUNDS AVAILABLE $39,831 ,000 $37,188,000 $39,969,000 $39,111 ,000 $31 .079,000
EXPENDITURES
District Construction $ 2,108,000 $ 100,000 $ 500,000 $ 700,000 $ 200,000
Share of Joint Works Construction 8,838,000 9,075,000 12,837,000 15,094,000 11 ,395,000
Refunds of Capital Cost Recovery
to Federal Treasury 1 ,141 ,000 30,000 30,000 30,000 100,000
Share of Joint Operating 2,625,000 3,435,000 4,296,000 6,584,000 8,410,000
District Operating E Other
Expenditures 368,000 423,000 486,000 559,000 643,000
TOTAL EXPENDITURES $ 15,080,000 $ 13,063,000 $18,149,Oo0 $22,967,000 $20,748,00o
Carry-Over Balance to Following
Fiscal Year $ 24,751 ,000 $24,125,000 $21 ,820,000 $16,144,000 $10,331 ,000
Funds Necessary to Meet
Co^^iitments Prior to
Receipt of Tax Apportionments 6,532,000 9,074,000 11 ,484,000 10,374,000 10,374,000
Fund Balance or (Deficit) $ 18,219,000 $ 15,051 ,000 $ 10,336,000 $ 5,770,000 ($ 43,000)
l
DISTRICT N0, 3
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSMENT FOR SEWER SERVICE
& IMMEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
l; Reserves 15,720,559 9,389,400 (6,331 , 159)
Joint Works (Treatment Plant) Construction
and Equity Purchase s Reserves 14,935,524 25,939,000 11 ,003,476
Joint Operating (Treatment Plant) Expense 2,192,631 2,587,000 394,369
District Operating & Other Expenditures
S Reserves 2,077,600 2,483,600 406,000
TOTAL REQUIREMENTS 34,926,314 40,399,000 5,472,686
Extended Revenue
Federal-State Grants 4,775,000 4,546,000 ( 229,000)
Sale of Capacity Rights 75,000 561 ,000 486,000
Connection Fees S Industrial User Charges 1 ,243,000 1 ,370,000 127,000
Interest S Misc. Income 1 ,119,225 1 ,076,000 ( 43,225)
. Carry-over 20,422, 189 26, 127,000 5,704,811
TOTAL OTHER REVENUE 27,634,414 33,680,000 6,045,586
Amount to be raised by Assessment 7,291 ,900 6,719,000 ( 572,900)
E. mated Number of Parcels in the
Dntrict 156,555
Estimated Annual Flat Rate Special
Assessment for Sewer Service E
immediate availability 42.92
. 6/22/78
COUNTY SANITATION DISTRICT NO. 3
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $26,127,000 $21 ,247,000 $20,460,000 $18,382,000 $12,816,000
REVENUE
Assessment at $42.92/parcel 6,719,000 6,719,000 6,719,000 6,719,000 6,719,000
Other Revenue
Federal & State Participation 4,546,000 6,201 ,000 10,114,000 11 ,927,000 9,777,000
Sale of Capacity Rights 561 ,000 24,000 24,000 24,000 24,000
Fees 1 ,370,000 1 ,200,000 1 ,100,000 1 ,000,000 900,000
Miscellaneous 1 ,076,000 871 ,000 839,000 753,000 527,000
TOTAL FUNDS AVAILABLE $40,399,000 $36,262,000 $39,256,000 $38,805,000 $30,763,000
EXPENDITURES
District Construction $ 6,258,000 $ 1 ,740,000 $ 1 ,703,000 $ 1 ,960,000 $ 100,000
Share of Joint Works Construction 9,802,000 10,064,000 14,236,000 16,74o,000 12,637,000
Refunds of Capital Cost Recovery
to Federal Treasury -0- 33,000 33,000 33,000 111 ,000
Share of Joint Operating 2,587,000 3,384,00o 4,234,000 6,488,000 8,287,000
District Operating & Other
Expenditures 505,000 581 ,000 668,000 768,000 883,000
TOTAL EXPENDITURES $ 19,152,000 $ 15,802,000 $20,874,000 $25,989,000 $22,018,000
Carry-Over Balance to Following
Fiscal Year $ 21 ,247,000 $20,460,o00 $18,382,000 $120816,000 $ 8,745,000
Funds Necessary to Meet
Commitments Prior to
Receipt of Tax Apportionments 7,901 ,000 10,437,000 12,995,000 11 ,009,000 11 ,009,000
Fund Balance or (Deficit) $ 13.346,000 $ 10,023,000 $ 5,387,000 $ 1 ,807,000 ($ 2,264,000)
DISTRICT N0, 5
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSMENT FOR SEWER SERVICE
& IMMEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating s Capital Requirements
District (Collection System) Construction
E Reserves 3,605,945 2,170,000 (1 ,435,945)
Joint Works (Treatment Plant) Construction
and Equity Purchase S Reserves 4,732,950 6,560,000 1 ,827,050
Joint Operating (Treatment Plant) Expense 396,801 462,000 65, 199
District Operatingl Other Expenditures
& Reserves 719,000 828,000 109,000
TOTAL REQUIREMENTS 9,454,696 10,020,000 565,304
Extended Revenue
Federal-State Grants 914,000 940,000 26,000
Sale of Capacity Rights 24,000 116,000 92,000
Connection Fees S Industrial User Charges 142,000 50,000 ( 92,000)
Interest & Misc. Income 233,000 237,000 4,000
Loan in aid of Construction 1 , 150,000 1 , 150,000
Carry-over 5,520,764 6,371 ,000 850,236
TOTAL OTHER REVENUE 7,983,764 8,864,000 8(30,236
Amount to be raised by Assessment 1 ,-470,932 1 , 156,000 ( 314,932)
Es-rimated Number of Parcels in the
District 19,365
Estimated Annual Flat Rate Special
Assessment for Sewer Service b
immediate availability 59.70
• 6/22/78
COUNTY SANITATION DISTRICT NO. 5
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
OPERATING 6 CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $ 6,371 ,000 $6,562,000 $5,160,000 $3,797,000 $1 ,917,00-
REVENUE
Assessment at $59.70/parcel 1 ,156,000 1 ,156,000 1 ,156,000 1 ,156,000 1 ,156,000
Other Revenue
Federal & State Participation 940,000 1 ,282,000 2,092,000 2,467,000 2,022,000
Loans In Aid of Construction 1 ,150,000
Sale of Capacity Rights 116,000 5,000 5,000 5,000 5,000
Fees 50,000 50,000 50,000 40,000 40,000
Miscellaneous 237,000 241 ,000 190,000 140,000 71 ,000
TOTAL FUNDS AVAILABLE $10,020,000 $9,296,000 $8,653,000 $7,605,000 $5,211 ,000
EXPENDITURES
District Construction $ 450,000 $ 875,000 S 525,000 $ 375,000 $ 75,000
Share of Joint Works Construction b Equity 2,027,000 2,082,000 2,945,000 3,462,000 2,614,000
Repay Loan in Aid of Construction 200,000 200,000 200,000 200,000 200,000
Refunds of Capital Cost Recovery to Federal
Treasury 7,000 7,000 7,000 23,000
Share of Joint Operating 462,000 605,000 757,000 1,159,000 1 ,481 ,000
District Operating & Other Expenditures 319,000 367,000 422,000 485,000 557,000_
TOTAL EXPENDITURES $• 3,458,000 $4,136,000 $4,856,000 $5,688,000 $4,950,000
Carry-Over Balance to Following Fiscal Year $ 6,562,000 $5,160,000 $3,797,000 $1 ,917,000 $ 261 ,000
Funds Necessary to Meet Commitments Prior to
Receipt of Tax Apportionments 2,068,000 2,428,000 2,844,000 2,475,000 2,475,000
Fund Balance or (Deficit) $ 4,494,000 $2,732,000 $ 953,000 ($ 558,000) ($2,214,000)
DISTRICT N0, 5_
PRELIMINARY EST I PLATE OF ANNUAL FLAT RATE
SPECIAL ASSESSNEf IT FOR SEWER SERVICE
-- & I[HIED I ATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
& Reserves 967,000 305,000 (662,00i�)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves •3, 168, 114 4, 111 ,000 942,886
Joint Operating (Treatment Plant) Expense 419,300 492,000 72,700
District Operating S Other Expenditures
& Reserves 394,800 477,000 82,200
TOTAL REQUIREMENTS 11,949,214 5,385,000 435,786
Extended Revenue
Federal-State Grants 792,000 802,000 10,000
Sale of Capacity Rights 20,000 99,000 79,000
Connection Fees S Industrial User Charges 35,000 40,000 5,000
Interest & Misc. Income 147,700 150,000 2,300
Carry-over 3, 106,4115 3,424,000 317,555
TOTAL OTHER REVENUE 4, 101 , 145 4,515,000 413,855
Amount to be raised by Assessment 848,069 870,000 21 ,931
L,weimated Number of Parcels in the
District 21 ,795
Estimated Annual Flat Rate Special
Assessment for Sewer Service E
immediate availability 39.92
6/22/78
COUNTY SANITATION DISTRICT No. 6
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
OPERATING 6 CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $3,424,000 $3,012,000 $2,614,000 $1 ,979,000 ($ 21 .000)
RE"ENUE
Assessment at S39.92/parcel 870,000 870,000 870,000 870,000 870,000
Other Revenue
Federal & State Participation 802,000 1 ,095,000 1,786,000 2,106,000 1,726,000
Sale of Capacity Rights 99,000 4,000 4,000 4,000 4,0oo
Fees 40,Oo0 40,000 40,000 40,000 40,000
Miscellaneous 150,000 131 .000 114,000 85,000 -0-
TOTAL FUNDS AVAILABLE S5,385,000 S5,152,000 S5,428,000 $5,034,000 S2,619,0,-)0
EXPENDITURES
District Construction $ 75,000 $ 25,000 $ 25,000 $ 795,000 $ 525,000
Share of Joint Works Construction 1 ,731 ,000 1 ,777,000 2,514,000 2,956,000 2.231 ,000
Refunds of Capital Cost Recovery
to Federal Treasury 6,000 6,o00 6,000 20,000
Share of Joint Operating 491 ,000 643,000 804,000 1 ,233,000 1 ,575,000
District Operating S Other
Expenditures 76,000 87,000 100,000 115,000 132,000
TOTAL EXPENDITURES $2,373,000 $2,538,000 $3,449,0o0 $5,105,000 S4,483,0o0
Carry-Over Balance to Following
Fiscal Year $3,012,000 $2,614,000 $1 ,979,000 ($ 21 ,000) ($1 ,864,000)
Funds Necessary to Meet
Cornitments Prior to
Receipt of Tax Apportionments 1 .269.000 2,225,000 2.553.00n 2,242,000 2,242,000
Fund Balance or (Deficit) $1 .743.000 $ 389,000 ($ 574.000) ($2.263.000) ( S4,106,000)
DISTRICT N0, 7
PRELIMINARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSPIENT FOR SEWER SERVICE
- & IMMEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
& Reserves 4,492,327 3, 170,800 (1 ,321 ,527)
Joint Works (Treatment Plant) Construction
and Equity Purchase & Reserves 5,937,058 8,022,000 2,084,942
Joint Operating (Treatment Plant) Expense 444,526 526,000 81 ,474
District Operating & Other Expenditures
& Reserves 806,050 985,200 179, 150
TOTAL REQUIREMENTS 11 ,679,961 12,704,000 1 ,024,039
Extended Revenue
Federal-State Grants 1 ,147,000 1 , 161 ,000 14,000
Sale of Capacity Rights 30,000 144,000 114,000
Connection Fees & Industrial User Charges 384,000 405,000 21 ,000
Interest & Misc. Income 312,612 332,000 19,388
Due from Cities 1 ,853,000 350,000 (1 ,503,000)
Carry-over 6,345,668 9,280,000 2,934,332
TOTAL OTHER REVENUE 10,072,280 11 ,672,000 1 ,599,720
Amount to be raised by Assessment 1 ,607,681 1 ,032,000 ( 575,681)
E. mated Number of Parcels in the
District 27,075
Estimated Annual Flat Rate Special
Assessment for Sewer Service &
immediate availability 38. 12
6/22/78
COUNTY SANITATION DISTRICT NO. 7
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
OPERATING & CAPITAL ONLY
(EXCLUSIVE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $9,280,000 $8,777,000 $7,842,000 $6,406,000 $4,596,000
RE:ENUE
Assessment at $38.12/parcel 1 ,032,000 1 ,032,000 1 ,032,000 1 ,032,000 1 ,032,000
Other Revenue
Federal E State Participation 1 ,161 ,000 1 ,584,000 2,584,000 3,047,000 2,498,000
Sale of Capacity Rights 144,000 6,000 6,000 6,000 6,000
Fees 405,000 350,000 325,000 300,000 275,000
Miscellaneous 682,000 312,000 278,000 229,000 162.000
TOTAL FUNDS AVAILABLE $12,704,000 $12,061 ,000 $12,067,000 $11 ,020,000 $8,569,000
EXPENDITURES
District Construction $ 496,000 $ 490,000 $ 625,000 $ 210,000 $ 185,000
Share of Joint Works Construction 2,505,000 2,572,000 3,637,000 4,277,000 3,229,000
Refunds of Capital Cost Recovery
to Federal Treasury 8,000 8,000 8,000 28,000
Share of Joint Operating 525,000 688,000 861 ,000 1 ,319,000 1 ,685,000
District Operating & Other
Expenditures 401 ,000 461 ,coo 530,000 610,000 702,000
TOTAL EXPENDITURES $3,927,000 $4,219,000 $5,661 ,000 $6,424,000 $5,829,000
Carry-Over Balance to Following
Fiscal Year $8,777,000 $7,842,000 $6,406,000 $4,596,000 $2,740,000
Funds Necessary to Meet
Co=iitments Prior to
Receipt of Tax Apportionments 2,110,000 2,831 ,000 3,212.000 2 91;noo 2,91S.000
Fund Balance or (Deficit) $6,667,000 $5,011 ,000 $3,194,000 51 .681 ,000 (S 175.000)
l
DISTRICT NO, 11
PRELI -1INARY ESTIMATE OF ANNUAL FLAT RATE
SPECIAL ASSESSiNENT FOR SEWER SERVICE
& If•MEDIATE AVAILABILITY
1978-79
Increase
77-78 78-79 (Decrease)
Estimated Operating & Capital Requirements
District (Collection System) Construction
& Reserves 5,266,000 4,461 ,000 ( 805,000)
Joint Works (Treatment Plant) Construction
and Equity Purchase &, Reserves 3,243,256 5,363,000 2, 119,744
Joint Operating (Treatment Plant) Expense 452,026 537,000 84,974
District Operating & Other Expenditures
& Reserves 623,800 767,000 143,200
TOTAL REQUIREMENTS 9,585,082 11 , 128,000 1 ,542,918
•Extended Revenue .
Federal-State Grants 934,000 947,000 13,000
Sale of Capacity Rights 24,000 117,000 93,000
Connection Fees & Industrial User Charges 240,000 597,000 357,000*
Interest & Misc. Income 382,800** 281 ,000 (101 ,800)
Carry-Over 6,359,564 7,645,000 1 ,285,436
TOTAL OTHER REVENUE 7,940,364 9,587,000 1 ,646,636
Amount to be raised by Assessment 1 ,644,718 1 ,541 ,000 ( 103,718)
*Includes 1977-73 fees not remitted by City
**Includes $141M Equity Sale in 77-78; -0- in
78-79
estimated Number of Parcels in the
District 28,005
Estimated Annual Flat Rate Special
Assessment for Sewer Service &
immcJiate availability 55.03
6/22/78
COUNTY SANITATICN DISTRICT NO. 11
PRELIMINARY STATEMENT OF PROJECTED CASH FLOW
CPERATING & CAPITAL ONLY
(EXCLUS!VE OF DEBT SERVICE)
FISCAL YEARS 78-79 THROUGH 82-83
DESCRIPTION 78-79 79-80 80-81 81-82 82-83
CARRY-OVER FROM PREVIOUS FISCAL YEARS $7,645.000 S6.882,000 $4,990,000 $4,435,000 $ 1,715.000
REVENUE
Assessment at $55.03/parcel 1 ,541 ,000 1 ,541 ,000 1 ,541 ,000 1 ,541 ,000 1,541 ,000
Cther Revenue
Federal L State Participation 947,000 1 ,292,000 2,107,000 2,434,000 2,037,000
Sale of Capacity Rights 117,000 5,000 . 5,000 5,000 5,000
Fees 597,000 397,000 397,000 350,000 300.000
Miscellaneous 281 ,000 252,000 168,000 162,000 61 ,000
TOTAL FUNDS AVAILABLE $11 ,128,000 $10,369,000 $9,208,000 $8,977,000 $ 5,659,000
EXPENDITURES
District Construction $ 1 ,4o6,000 $2,272,000 $ 576,000 $2,023,000 $ 1 ,814,000
Share of Joint Works Construction 2,042,000 2,097,000 2,966,000 3,488,000 2.633,000
Refunds of Capital Cost Recovery
to Federal Treasury 7,000 7,000 7,000 23,000
Share of Joint Operating 537,000 703,000 879,000 1 ,348,000 1 ,721 .000
District Operating S Other
Expenditures 261 ,000 300:000 345,000 306,000 455,000
TOTAL EXPENDITURES $4,246,000 $5,379,000 $4,773,000 $7,262,000 $ 6,646,000
Carry-Over Balance to Following
Fiscal Year $6,882,000 $4,990,000 $4,43c,000 $1 ,715,000 ($ 987,000)
Funds Necessary to Meet
Co:rnitments Prior to
Receipt of Tax Apportionments 2,690,000 2,387,000 3,631 ,000 3,323,000 3,323,000
Fund Balance or (Deficit) $4,192,000 $2,603,000 $ 604,000 ($1 ,608,000) (S 4,310,000)
F l
7/19/78
CSDOC
FLAT RATE CHARGE PER PARCEL
Following Flat Rate Per Parcel Will Raise
District No. of Parcels $1 $5 $10
1 34,155 $ 34,155 $ 170,775 $ 341,550
2 113, 610 113, 610 568,050 1,136,100
3 156,555 156,555 782,775 1,565,550
5 19,365 19,365 96,825 193,650
6 21,795 21,795 108,975 217,950
7 27,075 27,075 135, 375 270,750
11 28,005 . 28, 005 140,025 28.0,050
400,560 $ 400,560 $2,002,800 $4,005,600
e
REQUEST TO PRESENT ORAL COMMENTS
AT PUBLIC HEARING
JULY 19, 1978
I wish to present oral comments at the public hearing regarding proposed
flat rate special assessment for sewer service and immediate availability.
Name
PLEASE PRINT Street Address
City
District No.
fal comments will be heard in the order that this form is submitted to the
clerk at the table marked "SUBMIT ORAL COMMENT REQUEST FORM HERE" .
WR177EN STATLML•'NT REGARDING
PROPOSED FLAT Rl'= SPECIAL ASSESSMENT
FOR SEWER SERVICE•' AND IMMEDIATE AVAILABILITY
JULY 19, 1978
f you wish to protest or support the proposed assessment you may do so by
completing this form and submitting to the clerk at the table marked "SUBMIT
WRITTEN STATEMENT FORM HERE" . Your statement will become a part of the
official record of this hearing .
Name (Printed) Signature
Address:
City: District
Comments:
(USE REVERSE SIDE FOR FURTHER COMMENTS)
REQUEST TO PRESENT ORAL COMMENTS
AT PUBLIC HEARING
JULY 19, 1978
I wish to present oral comments at the public hearing regarding proposed
flat rate special assessment for sewer service and immediate availability.
Name
PLEASE PRINT Street Address
City
District No.
Oral comments will be heard in the order that this form is submitted to the
clerk at the table marked "SUBMIT ORAL COMMENT REQUEST FORM HERE" .
�5 �•� � '.� i nt� ', s��y� = ,dory
1PN 1 1N� t,�r
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EXHIBIT "A" to Minutes of Adjourned Meeting
on July 19, 1978
Persons Presenting Oral Comments at Public Hearing on Pro-
posed Flat Rate. Special Assessments for Sewer Service and
�.d Immediate Availabilitytto be Collected on the Tax Roll
NAME CITY NAME CITY
1) Ward Millhouse Santa Ana 32) Stephen Bedrossian Anaheim
2) Lura B. Labourdette Los Alamitos 33) Clarence Cornell Garden Grove
3) Lorraine Gray Santa Ana 34) Leo Lesnick Santa Ana
4) Dave McHaffie Anaheim 35) Glen B. Jackson Orange
5) Harry J. Appling Fountain Valley 36) Duane Laible Yorba Linda
6) Harriett Wieder Huntington Beach 37) Lu Manning County of Orange
7) W. L. Chambers Orange 38) Walter Nollac Placentia
8) T. B. Barron Garden Grove 39) Lauren Duvall Santa Ana
9) Virgil Elkins Santa Ana 40) L. J. Post Costa Mesa
10) Marvin A. Wendt Anaheim 41) Walter Wise Fullerton
11) Stan H. Sabin Huntington Beach 42) Elizabeth Sharon District 2
12) Charleen Wiersma Cypress 43) Bill Weatherill La Palma
13) Paul Holder Fullerton 44) George Maverne Fountain!'Valley
14) A. M. Gilmore Anaheim 45) Ed Wise Yorba Linda
lro) Dr. Andrew Erdely Cypress 46) Kenneth G. Hahn Fullerton
16) James G. Harp Buena Park 47) Miles Leach Santa Ana
17) Al Morgan Santa Ana 48) Dave Smith Costa Mesa
18) Clarence Herbert Newport Beach 49) Dick Longshore Santa Ana
19) Bob Dinsen Garden Grove 50) Maurice DeMong Tustin
20) Wilbur L. Cassidy Garden Grove 51) William Romo District 11
21) Don Moonier Cypress 52) Adin Dancer Westminster
22) Frank Beskiss Fountain Valley 53) Jay Scannell Westminster
23) Joe Hardcastle Cypress 54) Did Not Give Name
24) Dave Atkinson Huntington Beach 55) Vance Vote District 1
25) Bill Snelling Anaheim 56) Richard Barrett Santa Ana
26) David Baker Garden Grove 57) Donald Freedland Fullerton
27) Bob Romans Garden Grove 58) Ken Shank Did Not State City
28) John Allen Placentia 59) Vivian Kirkpatrick Westminster
29) Kay McCloud Huntington Beach 60) Glen Hanson Costa Mesa
30) Fred Woodworth Newport Beach 61) Betty Scott Huntington Beach
31) Arthur Womer Fountain Valley 62) Jack Tubbs Santa Ana
-9-
WRITTEN STATEMENT REGARDING
PROPOSED FLAT RATE SPECIAL ASSESSMLNT
FOR SEWER SERVICE AND IMMEDIATE AVAILABILITY
JUL•Y 19, 1978
zf you wish to protest or support the proposed assessment you may do so by
completing this form and submitting to the clerk at the table marked "SUBMIT
WRITTEN STATEMENT FORM HERE" . Your statement will become a part of the
official record of this hearing.
Name (Printed) Signature
Address:
City: District
Comments:
(USE REVERSE SIDE FOR FURTHER COMMENTS)
JUNE 14, 1978
AVAILABLE ALTERNATIVES FOR FUNDING AGENDA ITEM 15
1278-79 OPERATING/CAPITAL FUNDING REQUIREMENTS
JARVIS-GANN WILL REDUCE THE DISTRICTS' CURRENT (1977-78) $21 .4 MILLION TAX LEVY
BY A MINIHUM OF 58% IF THE DISTRICTS RECEIVE A PRO-RATA SHARE OF THE TAXES ALLOWED TO
BE COLLECTED BY THE TAX LIMITATION INITIATIVE, TO A MAXIMUM OF 100% IF THE DISTRICTS
RECEIVE NO TAXES UNDER THE ALLOCATIO14 METHOD YET TO BE DECIDED BY THE STATE LEGISLATURE.
ALTERNATIVE METHODS OF FUNDING THE DISTRICTS SEWAGE COLLECTION, TREATMENT AND
DISPOSAL ACTIVITIES FOR 1978-79 ARE AS FOLLOWS:
- FUND 1978-79 REQUIREMENTS FROM CONSTRUCTION RESERVE FUNDS
MAJOR ADVANTAGE - NO ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - FUNDS RESERVED FOR CONSTRUCTION TO COMPLY WITH
FEDERAL AND STATE LAWS WOULD BE DIVERTED FROM
CAPITAL TO OPERATING
- NEEDED AND/OR REQUIRED CONSTRUCTION PROJECTS
WOULD BE DELAYED
- FUNDS WOULD HAVE TO BE REPAID TO CONSTRUCTION
RESERVES IN FUTURE YEARS REQUIRING DISPROPOR-
TIONATELY HIGHER CHARGE IN THOSE YEARS
- LOSS OF INTEREST EARNINGS
II - FUND 1978-79 REQUIREMENTS BY ESTABLISHING A FLAT RATE USER/AVAILABILITY CHARGE_
AGAINST EACH PARCEL OF PROPERTY TO BE COLLECTED BY THE TAX BILL
MAJOR ADVANTAGES - PROVIDES FINANCING FOR 1978-79 OPERATING AND
CAPITAL REQUIREMENTS WITHOUT SUBSTANTIAL USE
OF CONSTRUCTION] RESERVESp
- STABILIZES PROPERTY OWNER CHARGES AND DISTRICTS
CASH FLOW
- ACCOMMODATES PHASING OF USER CHARGE/REVENUE PROGRAM
REQUIRED TO BE IMPLE;MENTED IN 1979-80 BY EPA A14D SWRCB
MAJOR DISADVANTAGES - REQUIRES PUBLIC NOTICE AND HEARINGS IN A RELATIVELY
SHORT TIME FRAME TO I hfPLEMENT
- DISTRICTS WILL INCUR ADDED ADMINISTRATIVE OVERHEAD
COST TO IMPLEMENT (ESTIMATED AT BETWEEN $75,000 TO
$105,000) PLUS ADDED CHARGE TO COLLECT ON TAX, BILL
- POSSIBLE PUBLIC BACKLASH IN VIEW OF JARVIS-GA14N MANDATE
- FLAT USE CHARGE IS NOT EQUITABLE
III - CONTINUE TO LEVY FULL TAX RATE NECESSARY TO FUND 1978-79 REQUIREMENTS ON THE BASIS
OF PREVIOUS COUNTY COUNSEL OPINION THAT SANITATION DISTRICT LEVY IS A "SPECIAL_
ASSESSMENT". SAID OPINION MAY THUS EXCLUDE THE DISTRICTS FROM APPLICATION 0
JARVIS-GANN.
- MAJOR ADVANTAGE - 140 ADDITIONAL ADMINISTRATIVE OVERHEAD COSTS FOR
1978-79
- MAJOR DISADVANTAGES - COU14TY COUNSEL HAS NOT YET RULED ON THIS OPINION
RELATIVE 1*0 JARVIS-GANN
- MAY RESULT IN LITIGATION AND THE COURTS MAY FIND
AGAINST THIS INTERPRETATION
COUNTY SANITATION DISTRICTS
030RANGE COUNTY,CALIFORNIA
PO BOX 8127
10844 ELLIS AVENUE
July 19, 1978 FOUNTAIN VALLEY.CALIFORNIA 92708
' (714)540 2910
\J (714)962.2411
PUBLIC HEARING JULY 19, 1978 - 6:00 P.M. RE PROPOSAL TO ESTABLISH
AND COLLECT FLAT RATE SPECIAL ASSESSMENTS FOR SENTER SERVICE AND
IMMEDIATE AVAILABILITY ON TAX ROLL
In the past, the Sanitation Districts have received the bulk
of their revenues from a special assessment for sewer service
against all real property and improvements in the Districts based
on the ad valorem property rolls of the County. The cost to the
homeowner whose property is assessed at $13,000 - $15,000, has been
$3 to $5 per month, depending on the District, for sewer service
exclusive of maintenance of local sewers. This has been collected
via the County tax bill.
With the passage of the Jarvis/Gann Initiative (proposition 13) ,
the question arises: Does this provision prohibit the Districts
from levying the special assessments that have been levied in all
prior years?
While the Jarvis/Gann Initiative did not bar this procedure,
the actions of the State Legislature in subsequent legislation
(Senate Bill 2212 enacted on June 30) barred the use of instituting
any charge based on property valuation other than the allowable 1%
ad valorem levy.
Under consideration are several proposals to institute a flat
rate special assessment. These are attached.
The Sanitation Districts operate the third largest wastewater
(sewage) treatment system on the West Cost. The capital costs of
present day facilities are $229 million; additional construction
required during the next 8 years will double this figure. The
Districts collect, treat, and dispose of wastewater from 408,000
residential, commercial and industrial connections serving 1.5
million citizens in the 23 cities in the Orange County metropolitan
area.
�I
Ad valorem assess- In spite of the increased demands
ao ment rate for sewer service and additional
39 facilities required by higher
State and Federal environmental
39I
standards, the combined average
N 37annual variable ad valorem special
assessment rate has steadily de-
36clined from 42e/$100 assessed
35valuation in 72-73 to 31G/$100
assessed valuation in 77-78. The
34Districts' Boards of Directors
33have reduced the budget require-
32ments to lighten the property-
owners' burden by $2,2 million
31 I for this fiscal year (78-79) .
73 71, •�75 76 77
T'F I S C-A L 7� E AVR
Annual revenues come from variable rate ad valorem special
assessments, connection fees, induatrial use fees, annexation
L.1►r charges and State and Federal construction grants. The annual
expenditures break down approximately 10% for operations and
maintenance, 87% for current and planned treatment plant and
trunk sewer construction, 3% for bonded debt retirement.
Chairman Don Saltar.elli
July 19th Public Hearing -
LADIES AND GENTLEMEN :
MY NAME IS DON SALTARELLI, JOINT CHAIRMAN OF THE SANITATION
DISTRICTS . THE PURPOSE OF THIS MEETING TONIGHT IS TO GET PUBLIC
TESTIMONY ON PROPOSALS OF THE DISTRICTS TO ESTABLISH FLAT RATE
SPECIAL ASSESSMENTS FOR THE 7 SANITATION DISTRICTS, TO BE COLLECTED
ON THIS YEAR 'S COUNTY TAX ROLL.
BEFORE WE START THE PUBLIC HEARING, I WISH TO INTRODUCE THE
MEMBERS SITTING AT THE TABLE WITH ME . ON MY RIGHT IS THOMAS WOODRUFF,
THE DISTRICTS' GENERAL COUNSEL; ON MY LEFT IS VICE JOINT CHAIRMAN .
DON FOX, COUNCILMAN FROM THE CITY OF BREA . NEXT TO MR . FOX IS
FRED HARPER, GENERAL MANAGER OF THE DISTRICTS .
SITTING AT THE TABLES IMMEDIATELY IN FRONT- ARE THE MEMBERS OF
THE BOARDS OF DIRECTORS.
FIRST, I WOULD LIKE TO SET A TONE, IF YOU WILL, FOR THIS MEETING
AS I REALIZE THAT THE PUBLIC NOTICE OF THIS HEARING HAS CREATED
CONCERN BY SOME THAT THE SANITATION DISTRICTS INTEND TO IGNORE THE
MANDATE OF THE JARVIS/GANN INITIATIVE (PROPOSITION 13) .
TONIGHT IS GOING TO BE A LEARNING PROCESS FOR US, THE DIRECTORS
OF THE SANITATION DISTRICTS, AND I BELIEVE IT IS GOING, TO BE A
LEARNING PROCESS FOR THOSE OF YOU WHO ARE HERE. I CAN ASSURE YOU,
FOR THE DIRECTORS OF THE SANITATION DISTRICTS, THAT IT IS NOT OUR
PURPOSE TO CIRCUMVENT THE INTENT OF PROPOSITION 13 AS WE UNDERSTAND
THAT PEOPLE WANT THE FAT CUT OUT OF GOVERNMENT. WE UNDERSTAND THAT
THE PROPERTY TAXPAYER IS SICK AND TIRED OF RISING COSTS FOR NO
APPARENT BENEFITS .
i
WHILE WE ARE VERY MUCH AWARE OF THE IMPORTANCE OF THE JARVIS/
` GANN AMENDMENT, WE ALSO RECOGNIZE THAT PEOPLE WANT CLEAN WATER
it
BECAUSE THEY APPROVED, ON THE SAME BALLOT AS PROPOSITION 131 THE
iE
STATE .CLEAN WATER BOND ACT. OF. 10-7o. THE SANITATION DISTRICTS ARE
REGULATED BY MANY AGENCIES: THE COUNTY AND STATE HEALTH DEPART-
MENTS, STATE WATER RESOURCES CONTROL BOARD, AND THE .UNITED STATES
ENVIRONMENTAL.. PROTECTION AGENCY. THE SANITATION DISTRICTS OPERATE
THE THIRD LARGEST WASTEWATER TREATMENT SYSTEM ON THE WEST COAST.
CAPITAL COSTS FOR PRESENT DAY FACILITIES ARE $229 MILLION; ADDI-
TIONAL CONSTRUCTION REQUIRED DURING THE NEXT S YEARS WILL DOUBLE
THIS FIGURE.
THE DISTRICTS COLLECT, TREAT AND DISPOSE OF WASTEWATER FROM
408, 000 RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CONNECTIONS WHICH
SERVE 1 .5 MULLION PEOPLE IN THE 23 CITIES IN THE ORANGE COUNTY
METROPOLITAN AREA . THE DISTRICTS REVENUES COME FROM CONNECTION
FEES, ANNEXATION FEES, INDUSTRIAL USER FEES, FEDERAL AND STATE
CONSTRUCTION GRANTS AND, IN THE PAST, FROM AD VALOREM SPECIAL
ASSESSMENTS ON THE COUNTY TAX BILLS .
NOW IT .HAS BEEN DETERMINED THAT WE NO LONGER 'CAN HAVE AD VALOREM
SPECIAL ASSESSMENTS . HOWEVER, THE SANITATION DISTRICTS HAVE STATUTORY
AUTHORITY UNDER THE STATE HEALTH AND SAFETY CODE TO ESTABLISH USER
FEES , WE ALSO HAVE AUTHORITY UNDER THE SAME CODE TO COLLECT THOSE
FEES ON THE COUNTY TAX BILLS SUBJECT TO THE PROCEDURES WE ARE FOLLOW-
ING TONIGHT.
I WOULD LIKE TO COMMENT BRIEFLY ON THE ACTIVITIES OF THE SANI-
TATION DISTRICTS BECAUSE WE ARE BEING REQUIRED TO EXPAND OUR
OPERATIONS, RATHER THAN CURTAIL THEM. IN 1972, -AN $18 BILLION
MUNICIPAL CONSTRUCTION GRANT PROGRAM WAS INITIATED UNDER PUBLIC
-2-
LAW 92-500, THIS ACT PROVIDED FOR FEDERAL ASSISTANCE OF 75% OF
THE COSTS FOR ALL MUNICIPALITIES THROUGHOUT THE COU14TRY TO ATTAIN
A LEVEL OF WASTEWATER TREATMENT KNO�A,N AS SECONDARY TREATMENT ,
SINCE THEN, THE SANITATION DISTPICTS HAVE BEEN ENGAGED IN MEETING
THE SECONDARY TREATMENT REPUIREMENT , WE HAVE JUST COMPLETED A
�32 MILLION PROJECT IN FOUNTAIN VALLEY TO BRING THIS 50 MILLION
GALLON PER DAY PLANT UP TO FEDERAL REQUIREMENTS , IN, ADDITION, THE
DISTRICTS HAVE LET CONTRACTS TOTALING $50 MILLION AT PLANT 2 IN
HUNTINGTON BEACH TO CONSTRUCT SECONDARY TREATMENT FACILITIES FOR
75 MGD OF SECONDARY TREATMENT , CURRENTLY, THIS 135 MGD FACILITY
HAS ONLY PRIMARY TREATMENT , IN ADDITION TO THE $50 MILLION PROJECT,
WE EXPECT TO LET A CONTRACT OF �12 , 4 MILLION LATER THIS YEAR FOR
THE REQUIRED SLUDGE HANDLING FACILITIES ,
DURING THE PAST SIX YEARS, THE DISTRICTS HAVE NOT BEEN PERMITTED
TO ADD ANY ADDITIONAL CAPACITY AT THE TREATMENT FACILITIES BY THE
STATE AND FEDERAL AGENCIES, EVEN THOUGH THERE IS CONTINUING GROWTH
IN THE AREA , AS THE NEW FACILITIES COM ON LINE, VIE ARE REQUIRED
TO OPERATE THEM AND IF WE FAIL TO OPERATE THESE FACILITIES AND DO
NOT COMPLY WITH THE STATE AND FEDERAL PERMIT REQUIREMENTS, STRINGENT
FINES CAN BE IMPOSED �UPON THE DISTRICTS .
�9,C�tCe� .:z'-l� �tic.c..G�ec✓ �,,�� ?�d�� �'`*� -�,-.t't.cG ,�.c�-�r�.e��.���'R'-rc�s�.
at cLv �c.t �c �I.'Z Cam' l�iZ� vKl�il-�1G�c -�O CCId l� /Jf�l G'��f c-l�
rtg.Z CZ �
� tAA- /3
OL
6 "�C
K-iGHTLY REQUIRED FOR DISCHARGE TO FRESH WATER IS NOT REQUIRED FOR DEEP
OCEAN DISCHARGE ,
IN DECEMBER '77, THE CONGRESS PASSED A BILL WHICH PROVIDES
FOR A WAIVER OF SECONDARY TREATMENT AT THE DISCRETION OF THE
ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR IF THE DISCHARGER CAN
PROVE THAT A DEGREE OF TREATMENT LESS THAN SECONDARY TREATMENT
WILL NOT BE DETRIMENTAL TO THE MARINE ENVIRONMENT,
THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD SUPPORTED
THIS AMENDMENT TO THE FEDERAL ACT AND WE ARE NOW IN THE PROCESS
OF APPLYING FOR A WAIVER , HOWEVER, THE REQUIREMENTS ESTABLISHED
BY THE EPA IMPLEMENTING THIS WAIVER PROVISION APPEAR TO BE EX-
TREMELY STRINGENT AND WE HAVE NO WAY OF KNOWING WHETHER OR NOT
THE DISTRICTS WILL RECEIVE THIS WAIVER, BUT IF WE DO, WE WILL
SAVE $100 MILLION IN CONSTRUCTION COSTS AND THE ACCOMPANYING
$7 MILLION PER YEAR IN OPERATING COSTS , OUR APPLICATION MUST BE
IN WASHINGTON BY SEPTEMBER 24 OF THIS YEAR , EPA COULD TAKE AS
LONG AS 18 MONTHS TO DECIDE OUR FATE ,
THE DISTRICTS HAVE HAD A LONG-RANGE PLANNING AND BUDGET PROGRAM
AND WE HAVE ATTEMPTED TO MAINTAIN A STABLE SITUATION FOR THE
TAXPAYER WITHOUT SURPRISES , WE HAVE CONTINUALLY REDUCED THE TAX
RATE AND THIS YEAR THE DIRECTORS, IN LIGHT OF THE JARVIS/GANN
SHAVE REDUCED YOU, THE PROPERTYOWNERS ' BURDEN BY $2 , 2 MILLION ,
'-' ` fBEFORE WE TAKE PUBLIC TESTIMONY, THERE ARE A COUPLE OF POINTS
THAT MUST BE MADE , ONE, THE LEGAL ASPECTS OF OUR PROPOSED ACTION
OF ESTABLISHING FLAT RATE SPECIAL ASSESSMENTS AND (2) , THE CONCERN
OF THE AMOUNT OF FUNDS PRESENTLY HELD BY THE SANITATION DISTRICTS ,
I D ASK OUR GENERAL COUNSEL, MR , WOODRUFF, TO REVIEW THE
STATUTORY AUTHORITY BY WHICH THE DISTRICTS CAN IMPOSE USER CHARGES
AND THE RELATIONSHIP TO THE RECENTLY-PASSED PROPOSITION 13.
FOLLOWING THIS PRESENTATION, OUR DIRECTOR OF FINANCE, WAYNE
SYLVESTER, WILL COMMENT ON THE FUNDS THAT ARE PRESENTLY HELD
BY THE DISTRICTS AND THEIR RELATIONSHIP TO OUR REQUIREMENTS ,
AGAIN, I SUGGEST THAT WE ARE NOT HERE AS ADVERSARIES, BUT
HERE TO GET THE FACTS ,
_5_
Chairman Don Saltarelli
July 19th Public Hearing -
LADIES AND GENTLEMEN :
MY NAME IS DON SALTARELLI, JOINT CHAIRMAN OF THE SANITATION
DISTRICTS . THE PURPOSE OF THIS MEETING TONIGHT IS TO GET PUBLIC
TESTIMONY ON PROPOSALS OF THE DISTRICTS TO ESTABLISH FLAT RATE
SPECIAL ASSESSMENTS FOR THE 7 SANITATION DISTRICTS, TO BE COLLECTED
ON THIS YEAR S COUNTY TAX ROLL.
BEFORE WE START THE PUBLIC HEARING, I WISH TO INTRODUCE THE
MEMBERS SITTING AT THE TABLE WITH ME. ON MY RIGHT IS THOMAS WOODRUFF,
THE DISTRICTS GENERAL COUNSEL; ON MY LEFT IS VICE JOINT CHAIRMAN
DON FOX, COUNCILMAN FROM THE CITY OF BREA . NEXT TO MR . FOX IS
FRED HARPER, GENERAL MANAGER OF THE DISTRICTS .
SITTING AT THE TABLES IMMEDIATELY IN FRONT ARE THE MEMBERS OF
THE BOARDS OF DIRECTORS .
FIRST, I WOULD LIKE TO SET A TONE, IF YOU WILL, FOR THIS MEETING
AS I REALIZE THAT THE PUBLIC NOTICE OF THIS HEARING HAS CREATED
CONCERN BY SOME THAT THE SANITATION DISTRICTS INTEND TO IGNORE THE
MANDATE OF THE JARVIS/GANN INITIATIVE (PROPOSITION 13) .
TONIGHT IS GOING TO BE A LEARNING PROCESS FOR US, THE DIRECTORS
OF THE SANITATION DISTRICTS, AND I BELIEVE IT IS GOING, TO BE A
LEARNING PROCESS FOR THOSE OF YOU WHO ARE HERE. I CAN ASSURE YOU,
FOR THE DIRECTORS OF THE SANITATION DISTRICTS, THAT IT IS NOT OUR
PURPOSE TO CIRCUMVENT THE INTENT OF PROPOSITION 13 AS WE UNDERSTAND
THAT PEOPLE WANT THE FAT CUT OUT OF GOVERNMENT. WE UNDERSTAND THAT
THE PROPERTY TAXPAYER IS SICK AND TIRED OF RISING COSTS FOR NO
APPARENT BENEFITS .
i
WHILE WE ARE VERY MUCH AWARE OF THE IMPORTANCE OF THE JARVIS/
GANN AMENDMENT, WE ALSO RECOGNIZE THAT PEOPLE WANT CLEAN WATER
BECAUSE THEY APPROVED, ON THE SAME BALLOT AS PROPOSITION 13, THE
STATE .CLEAN WATER BOND ACT. OF• 1970. THE SANITATION DISTRICTS ARE
t REGULATED BY MANY AGENCIES: THE COUNTY AND STATE HEALTH DEPART-
MENTS, STATE WATER RESOURCES CONTROL BOARD, AND THE UNITED STATES
ENVIRONMENTAL.. PROTECTION AGENCY. THE SANITATION DISTRICTS OPERATE
;4
vi THE THIRD LARGEST WASTEWATER TREATMENT SYSTEM ON THE WEST COAST.
`? CAPITAL COSTS FOR PRESENT DAY FACILITIES ARE $229 MILLION; ADDI-
TIONAL CONSTRUCTION REQUIRED DURING THE NEXTS YEARS WILL DOUBLE
L'
F THIS FIGURE.
THE DISTRICTS COLLECT, TREAT AND DISPOSE OF WASTEWATER FROM
408,000 RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CONNECTIONS WHICH
SERVE 1.5 MI•LLION PEOPLE IN THE 23 CITIES IN THE ORANGE COUNTY
METROPOLITAN AREA . THE DISTRICTS REVENUES COME FROM CONNECTION
FEES, ANNEXATION FEES, INDUSTRIAL USER FEES, FEDERAL AND STATE
CONSTRUCTION GRANTS AND, IN THE PAST, FROM AD VALOREM SPECIAL
ASSESSMENTS ON THE COUNTY TAX BILLS .
NOW IT HAS BEEN DETERMINED THAT WE NO LONGER CAN HAVE AD VALOREM
SPECIAL ASSESSMENTS . HOWEVER, THE SANITATION DISTRICTS HAVE STATUTORY
AUTHORITY UNDER THE STATE HEALTH AND SAFETY CODE TO ESTABLISH USER
FEES . WE ALSO HAVE AUTHORITY UNDER THE SAME CODE TO COLLECT THOSE
FEES ON THE COUNTY TAX BILLS SUBJECT TO THE PROCEDURES WE ARE FOLLOW-
ING TONIGHT.
I WOULD LIKE TO COMMENT BRIEFLY ON THE ACTIVITIES OF THE SANI-
TATION DISTRICTS BECAUSE WE ARE BEING REQUIRED TO EXPAND OUR
OPERATIONS, RATHER THAN CURTAIL- THEM. IN 1972, -AN $18 BILLION
MUNICIPAL CONSTRUCTION GRANT PROGRAM WAS INITIATED UNDER PUBLIC
-2-
LAW 92-500. THIS ACT PROVIDED FOR FEDERAL ASSISTANCE OF 75% OF
THE COSTS FOR ALL MUNICIPALITIES THROUGHOUT THE COUNTRY TO ATTAIN
i A LEVEL OF WASTEWATER TREATMENT KNOWN AS SECONDARY TREATMENT:
: s
SINCE THEN, THE SANITATION DISTRICTS HAVE BEEN ENGAGED IN MEETING
THE SECONDARY TREATMENT REQUIREMENT. WE HAVE JUST COMPLETED A
`! 132 MILLION PROJECT IN FOUNTAIN VALLEY TO BRING THIS 50 MILLION
r 4
GALLON PER DAY PLANT UP TO FEDERAL REQUIREMENTS . IN ADDITION, THE
Ii DISTRICTS• HAVE LET CONTRACTS TOTALING $50 MILLION AT PLANT 2 IN
HUNTINGTON BEACH TO CONSTRUCT'• SECONDARY TREATMENT FACILITIES FOR
I 75 MGD OF SECONDARY TREATMENT. -CURRENTLY, THIS 135 •MGD FACILITY
!i -
� i _
HAS ONLY PRIMARY TREATMENT . IN ADDITION TO THE $50 MILLION PROJECT,
= ' WE EXPECT TO LET A CONTRACT OF $12.4 MILLION LATER THIS YEAR FOR
THE REQUIRED SLUDGE HANDLING FACILITIES.
DURING THE PAST SIX YEARS, THE DISTRICTS HAVE NOT BEEN PERMITTED
TO ADD ANY ADDITIONAL CAPACITY AT THE TREATMENT FACILITIES BY THE
+ STATE AND FEDERAL AGENCIES, EVEN THOUGH THERE IS CONTINUING GROWTH
IN THE AREA , AS THE NEW FACILITIES COM ON LINE, WE ARE REQUIRED
TO OPERATE THEM AND IF WE FAIL TO OPERATE THESE FACILITIES AND DO _
NOT COMPLY WITH THE STATE AND FEDERAL PERMIT REQUIREMENTS, STRINGENT
FINES CAN BE IMPOSED UPON THE DISTRICTS.
AS I STATED EARLIER, WE EXPECT TO CONSTRUCT ANOTHER, $200 MILLION
IN TREATMENT PLANT FACILITIES DURING THE NEXT 8 YEARS . WE ARE
i HOPEFUL THAT WE CAN AVOID HALF OF THIS CONSTRUCTION BY NOT COM—
PLETING ALL OF THE SECONDARY TREATMENT. THIS AGENCY., ALONG WITH
MANY OTHER AGENCIES IN THE UNITED STATES, HAVE BEEN PRESSING
CONGRESS TO AVOID NEEDLESS EXPENDITURES OF MONIES AND ENERGY
SUPPLIES -BY CONSTRUCTING FACILITIES FOR TREATMENT'S SAKE ALONE, WE
DEMONSTRATED TO THE CONGRESS THAT SECONDARY TREATMENT, WHICH IS
-3-
,,,w�HTLY REQUIRED FOR DISCHARGE TO FRESH WATER IS NOT REQUIRED FOR DEEP
OCEAN DISCHARGE.
IN DECEMBER '77, THE CONGRESS PASSED A BILL WHICH PROVIDES
FOR A WAIVER OF SECONDARY TREATMENT AT THE DISCRETION OF THE
ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR IF THE DISCHARGER CAN
PROVE THAT A DEGREE OF TREATMENT LESS THAN SECONDARY TREATMENT
WILL NOT BE DETRIMENTAL TO THE MARINE ENVIRONMENT.
THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD SUPPORTED
THIS AMENDMENT TO THE FEDERAL ACT AND WE ARE NOW IN THE PROCESS
OF APPLYING FOR A WAIVER . HOWEVER, THE REQUIREMENTS ESTABLISHED
BY THE EPA IMPLEMENTING THIS WAIVER PROVISION APPEAR TO BE EX-
TREMELY STRINGENT AND WE HAVE NO WAY OF KNOWING WHETHER OR NOT
THE DISTRICTS WILL RECEIVE THIS WAIVER, BUT IF WE D0, WE WILL
SAVE $100 MILLION IN CONSTRUCTION COSTS AND THE ACCOMPANYING
$7 MILLION PER YEAR IN OPERATING COSTS . OUR APPLICATION MUST BE
IN WASHINGTON BY SEPTEMBER 24 OF THIS YEAR . EPA COULD TAKE AS
LONG AS 18 MONTHS TO DECIDE OUR FATE ,
THE DISTRICTS HAVE HAD A LONG-RANGE PLANNING AND BUDGET PROGRAM
AND WE HAVE ATTEMPTED TO MAINTAIN A STABLE SITUATION FOR THE
TAXPAYER WITHOUT SURPRISES. WE HAVE CONTINUALLY REDUCED THE TAX
RATE AND. THIS YEAR THE DIRECTORS, IN LIGHT OF THE JARVISIGANN
HAVE REDUCED YOU, -THE PROPERTYOWNERSI BURDEN BY $2.2 MILLION .
BEFORE WE TAKE PUBLIC TESTIMONY, THERE ARE A COUPLE OF POINTS
THAT MUST BE MADE , ONE, THE LEGAL ASPECTS OF OUR PROPOSED ACTION
OF ESTABLISHING - FLAT RATE SPECIAL -ASSESSMENTS AND (2), THE CONCERN
OF THE AMOUNT OF FUNDS PRESENTLY HELD BY THE SANITATION DISTRICTS.
I WOULD ASK OUR GENERAL COUNSEL, MR . -WOODRUFF, : TO REVIEW THE
STATUTORY AUTHORITY BY WHICH THE DISTRICTS CAN IMPOSE USER CHARGES
-4-
AND THE RELATIONSHIP TO THE RECENTLY-PASSED PROPOSITION 13.
FOLLOWING THIS PRESENTATION, OUR DIRECTOR OF FINANCE, WAYNE
SYLVESTER, WILL COMMENT ON THE FUNDS THAT ARE PRESENTLY HELD
BY THE DISTRICTS AND THEIR RELATIONSHIP TO OUR REQUIREMENTS .
AGAIN, I SUGGEST THAT. WE ARE NOT HERE AS ADVERSARIES, BUT
HERE TO GET THE FACTS.
r•
I .
i
'a✓
0
`1� � A� dolls
ZX - Q�
MEETING DATE July 19 , 1978 ' TIME 6 : 00 P.m. DISTRICTS 1 , 2 , 3 ,5 , 6 , 7&ll
AAA&tDISTRICT 1 JOINT BOARDS
KANK . . . . . . . .RIMA. . . . . . . .� - _ T, ) RILEY . . . . . . . . .ANTHONY. . . .—
►IEL�H�. . . . . . . .SHARP. . . . . . ._L L _NJ _Y RILEY • - • • • • • • •CLARK• • • • • •
RILEY� . . . . . . . .ANTHONY. . . . ..i ,J PERRY . . . . . . . . .CULVER• • • • -
ORT I Z . . . . . . .EVANS W--.t �.�(%� ORT I Z • • . • • • • •EVANS• • • .
DISTRICT 2 ICOOPEfl . • • . . . . •FOX. . . . • • .
COOPE •GAMBINA• • -
FRIED) - • • • • •WEDAA- - • • • • --ate —�L. �_ HUTCHISON) • • • - •GLOCKNER• -
RASHFORD). . . . .HOLT. . . . . . . ✓ -_p�_ �_ ROGET) • • • • - - •GRAHAM• • - -
RILEY) - • • • • • =Cam• • • • • - •�� N _ �MEYER) . . . . . . . . .GRIFFIN- - - -
COOPER) . - • • . • •f&&. . . • • - - • -� —l� �_ RASHFORD)• • • • - •HOLT• • • • • -
ROGET). . . . . - - -GRAHAM. . . . . ._,G —� _Y WELLS)• - • • • • • • •HOUSTON- • • •
.WELLS)• - . . . . . .HOUSTON. . . . . ./ _ _ LACAY3)• • • • • • • •HUDSON. . . . .
EVANS) • • - • • - • •ORTIZ• • • . . • • ��L . _ SEITZ . • • • • - • • -LASZLO• • • • -
CULV _R) • • • • • • •PERRY- - • . • • • cC::�� CL RYCKOFF) • - • - • - •MC INNIS- • -
ROTH : f1;8UR • • • •�� �_ _ WEISHAUPT? . . . . .MILLER• • • -
HOYT)))) • • • • • • • •SMITH• • - • - • • _p(_ FINLAYSON . . . . .OLSON• • • • -
ADLER) . . . . . . . .STANTON. . . . .� �_ EVANS) . . . . . . . . .ORTIZ. . . . . .
WINTERS) . . . . . .VELASQUEZ. . . SHENKMAN) . . . . . .MacALLISTER
CULVER • • - • - • •PERRY. . . . .
DISTRICT 3 NYBORG� • - - • • - - -PRIEST- • - -
ANTHONY) . . . . . . .RILEY. . . . . .
KEYER)
DLER .. . . . . . . .SVALSTAD• • . ✓ ` CRANK . . . . . . • .RIMA• • • • • • _
. . . . . . • •GRIFFIN. • • • •_ q _ YOUNG) • . . . . . . .ROGET• • . . .
UPERRY) . . • . • • •CULVER - • - . . • 2 - �� HUi�IME )- • • - • . - •RYCKOFF- -
OPER) . . • . . . •GAMBINA- - . • •_ IJ WELS H• • • . . • . • •SALTARELLI •
LACAYO) • • • • • • •HUDSON. . . . . ._�� N Z (RILEY) • • •• - • . . •SCI-111IT• - • -
SEITZ) . . - - • •LASZLO- - - • • ✓ w �_ ROTH). . - - • - • . • •SEYMOUR• • -
WEISHAUPT1 • : • •t1ILLER. . • - - - ✓ _ �_ WELSH) • • . • • • • • •SHARP• • • . . .
FINLAYSON)) • • •OLSON• • - • • • -_� ��I �_
— BAILEY) • • • • • • • •SHENKPAN •
EVANS)) . • - • •ORTIZ• MENKKAN) • • • • • •SIEBERT. . . .
NYBORG . . . . .PRIEST. CQ. ( HOYT) . . . . . . . . . .SMITH• • • • -
YOUNG� .. . . . . . .ROGET. (ADLER) . . . . . . . . .STANTON• -
RILEY . . . . . . .SCHMIT - (RYCKOFF) . . . . . . .STRAUSS• - -
• -
ROTi ) • • • . . . . . R- . . . . _ JADLER) • - - - • • • •SVALSTAD• • -
SHEN'KMAj4). . . . . SIEBERT. . . . .J Y Z01-1t-1ICK) . . . • • . •SYLVIA• • . .
ZOMMICK)) . . . . . .SYLVIA. . . . . . fL y _ GAIDO) . . . . . . . . .VARDOULIS- • _
IVELASQUEZ) . • . .WINTERS . . . . J� � �_ WINTERS) • • • • • • .VELASQUEZ- -
(FRIED) • - • • • - • •WEDAA• • • • - -
DISTRICT 5 SRYCKOFF) . . . . . . .WILLIAMS- • •
E1U1.MEL . • • . • Rom, —P l(VELASQUEZ) - • - - •I,I NTERS- • • -
ANTHONY • - • • • •RILEY • • • • • • •_ —� �-
• . • •STRAUSS. . . . . CL OTHERS
DISTRICT 6 HARPER. . . . .
RYCKO�F . . . . .MC INNIS. . . ._,�- SYLVESTER. .
CRANK .RIMA. . .. � CLARK. . . . .
�RILEY) . . • • - • • .ANTHONY. . . . . CLARKE. . . .
BROWN. . . . .
DISTRICT 7
[GAIDO)• • - - . • • •VARDOU'L'I'S'- • � _ — WOODRU
FF. . .
OYT) • • • • • • •SMITH• • • - - . . .. HOHENER. . .
. . •C HOWARD. .
RTIZ) • • • • . . - •EVANS' y BUNT. . . . . .
HUTCHISON) . . . .GLOCKNER V KEIT_H. . . . . .
WELSH) - • . • • • • •SALTARELLI . - KENNEY- . . . ._
RYCKOFF) - • - • • •WILLIAMS- • • LYNCH. . . . . .
DISTRICT 11 MADDMART0INSON. .
PIERSALL. . .
EAILEY)—. . . ��Ni�*f-*•-. . . . ✓ ICI �SHENKMAN) . . . . . MAC ALLISTER �_ I STEVENS. . . ._
RILEY) • • • • . . • . SCHMIT • • • - _ _ESL TRAVERS. . . .
7/19/78
MEETING DATE July 19 , 1978 TIIhE 6 : 00 P.m. DISTRICTS 1 , 2 , 3 , 5 , 6 , 7&11
DISTRICT,1 � �v� `�"' � JOINT BOARDS
CRANK . . . . . . . .R1MA. . . . . . . . + RILEY • • . . . . •ANTHONY• • • •
WELSH) . . . . . . . .SHARP. . . . . . . "' U RILEY . . . . . . . . .CLARK. . . . . .
RILEY . . . . . . .ANTHONY. . . . .. tM PERRY . . . . . . . . .CULVER• • • • •
ORTIZ . . • . • . . .EY4fiI+;. . . . . . . ORTIZ . . . . . . • .EVANS• • • • -
DISTRICT 2 0 COOPER� : • • : : : : •FOX• • -
COOPER •GAMBINA- • • _
FRIEp) • • • • • -WEDAA- • • - • • • -_ HUTCHISON) • • - • •GLOCKNER- -
RASIIFORD) . . . . .HOLT. . . . . . . + ROGET) - - • • - - -GRAIiAh1• •- -
RILEY) . . . . . . G64I. . . . . • . • — �MEYER) - • - • • • • • •GRIFFIN• - • -
COOPER) • - - • • • -F`.. . . . • . . . � RASHFORD) • • - • • •HOLT. . . . . . .
ROGET). . . . . . . .GRAHAM. . . . • WELLS) • • • • •HOUSTON- - • •
.WELLS). . - • . • • .HOUSTON. . . . — �LACAY?) * : : - • •HUDSON. . . .
EVANS) . . . . . . . .ORTIZ. • . . . . , SEITZ . . . . . . . . .LASZLO. . . .
CULV R) . . . . . . .PERRY• . • . • • •_ CA, RYCKOFF) . . . . . . .MC INNIS- • -
ROTH . . . . . . . .Y;;9UR, • • • 4- - -
WEISHAUPT - •MILLER-
HOYT . . . . . . . . .Sh11TH. . . . . . . — +_ FINLAYSON) • - • • •OLSON. . . . . .
ADLER) • • • . • • • -STANTON. . . . ..F• _ EVANS) . . . . . . . . .ORTIZ• . . . . -
WINTERS) - • • • • •VELASQUEZ. • • _� SHENKh1AN) • • • • - -MacALLISTER .
CULVER� . . . . . . . .PERRY• • • • -
DISTRICT 3 NYBORG • • • • • • •PRIEST• • • -
��ADLER)— • . • •SVALSTAD- - • .�I` ANTH - - : : : : : _ -RILEY. . . . .
�_ ICRANO• -RIttA•
MEYER) . - • • • • • •GRIFFIN• • • - �_ YOUNG) - • • • - • • •ROGET• • • • -
EPERRY) • • . • • . •CULVER. . . . . OL G►• Hut.tMEl ). . . . . . . .RYCKOFF• -
OPER) . • • • . • .GAMBINA- - - - -- WELSH . . . . . . . . .SALTARELLI -
LACAYO) • • • • • • .HUDSON. . . . . . • RILEY). • • • • . . • •SCHHIT• • • -
SEITZ) . . • • • • •LASZLO• • • • • (ROTH). . . . . . . . . .SEYMOUR• • -
WEISHAUPT . . . .MILLER . . . . . . - �_ SWELSH) . . . . . . . . .SHARP• • • - - •
FINLAYSON� • . • •OLSON. . . . . . . -- �_ BAILEY) • • • • - • • •SHENKMAN• • •
EVANS) • . . • • • •ORTIZ. . . . . . .. - +_ ELER)
ENKMAN) • • . • • •SIEBERT- - -
NYBORG) • • . • • • •PRIEST• • • • • 6. V. YT) - - • • • • • • •SMITH. . . . . .
_
YOUNG� . . . . . . . .ROGET• • • • • • •�` • • • - • • • .STANTON• • -
_
RILEY . . . . . . . .SCHIMIT . . . . . . _ _ (RYCKOFF) - • • • • • .STRAUSS- - • -
ROTH).• • -.. . . . . . . . .SE 'I-• - • - • - ADLER) • - • • - • - •SVALSTAD- -
SHENKMAN). . . . . SIEBERT. . . . . - ZOMMICK) . . . . . . .SYLVIA. . . . .
ZOMMICK) ... . . . .SYLVIA. . . . . . - .4. GAIDO) - • • • • - • • •VARDOULI.S- -
VELASQUEZ) . • • •WINTERS • . • • • IWINTERS) . . . . . . .VELASQUEZ- •
FRIED) • • • • • • • •WEDAA• • • • - -
DISTRICT 5 RYCKOFF) - • • • • • .WILLIAMS• • -
IjUMMEL • . . • . • ^*GK@F—` + �VELASQUEZ) - --,,INTERS- - - -
ANTHONY) • • • • • •RILEY• • . . . .
• • • • •STRAUSS• • • • OL OTHERS
DISTRICT 6 HARPER. . . . .
RYCKO F).. . . . .MC INNIS. . . . �' + SYLVESTER. .
CRANK� . . . . . . . .RIMA. . . . . . ..•i- ' - LEWIS. . . . .
�RILEY) . . . . . . . .ANTHONY. . . . - CLARKE. . . . .
BROWN. . . . .
DISTRICT 7 a
(GAIDO) • • - • • • • •VARDOULIS• • - - - �` � WOODRUFF. . .
�HOYT) . . . . . . • - •St•11TH. . . . . . It � ••tt r H0FIENER. . .
R I LEY . . . . . . .C{�}fK. . . . . . -- _+_ �� lY HOWARD. . . .
ORTIZ� • • . . . .6*A+tS . . . . . HUNT. . . . . .
HUTCHISON) • • • •GLOCKNER• • . . _ KEITH. . .
• • •
WELSH) . . . . . . . .SALTARELLI - • - + KENNEY. . . . .
RYCKOFF) • • • • - •WILLIAMS• • - • "' �_ LYNCH. . . . . .
DISTRICT_l1 MARTIINSON. -
BAILEY) . . . . . :`sttE?izCf�°. . . . . �_ P 1 E R S A L L. . .
SHENKMAN) . . . . . MAC ALLISTER - + _ STEVENS. . . .
RILEY) • • • • • • • . SCHMIT • • • • -4' TRAVERS. . .
7/19/78
ADJOURNED JOINT MTG. - JULY 19, 1978
r--b) Joint Chairman Saltarelli gave report re legal aspects of Districts charges
..0, and some of the concerns re amount of funds holding by the Districts. (See
attached)
TLW referred to statutory report in package handed out to public.
JWS referred to yellow pages of report and reviewed some of the figures.
FAH referred to pink and goldenrod-colored pages and reported on them.
(5-c) Saltarelli stated he would entertain a motion from the Board to enter into record
all written comments. It was so moved and seconded. Motion carried.
(5-c) PUBLIC COMMENT opened
Schmit stated he was ready to vote on Alternative IA - no user charge this year
or next year or any year. Motion out of order as public comment to be heard
first.
After some public comment, Vardoulis said he thought they had heard the people.
Wanted to make a three part motion. Saltarelli advised have to have motion to
close thepublic hearing first.
Vardoulis stated his motion anyway. Want to adopt Alternative IA - no flat rate.
Want to ask everybody here tonight to help us lobby to reject that portion of
SB 154 that tells us that we are not a District that can get a portion of the
1%. Also asked everybody for movement to get State and Federal government to
impose no new requirements on us and provide waivers for existing requirements.
Someone from public stated that the previous motion was bypassed and asked that
it be brought forth. Saltarelli advised again that Directors cannot make motions
until public hearing closed. Motions are out of order.
Saltarelli asked how many people wanted to get on with the voting and how many
people want to keep on with testimony. Hand vote. Majority wanted to go on with
public comment. Required at a public hearing to hear all people who want give
testimony. Saltarelli asked that without calling names as they came up on blue
forms, all those people who still wished to give more testimony should come forth.
(See list of names)
Moved to close public hearing. Motion seconded. Voice vote. Motion carried.
Hearing closed at 9:44 p.m. Saltarelli thanked people for their comment.
Vardoulis then moved to adopt Alternative IA with no implementation for future
fiscal years; that we live within the 1% of Proposition 13 and, further, seek
help from the people to lobby and reject that portion of SB 154 that refuses
us our portion of the 1%. Further, that we support a movement that State and
Federal govenment impose no new requirements on us and to provide for waivers
for existing requirements.
Stanton asked if flat user fee still appeared in that motin for IA? Was answered, no.
Stanton then made substitute motion. That Districts' funds may be diverted from
capital accounts to operating accounts, as required during 1978-79 to fund operation
and that staff of District is hereby directed to develop equitable user plan that
may be placed before voters next year pending results of waiver on mandated requirements.
Olson seconded motion.
Discussion re substitute motion.
Stanton restated that we would operate this coming year using the contingencies
�+ that are set aside for construction and there will be no user fee established
this year. Are directing are staff to develop an equitable user fee plan. The
point of saying equitable fee is it is not a flat user fee. The plan may be
placed before the voters next year pending the results of our efforts for waiver
of State and Federal mandated requirements. Could place on the ballot or go
before public for review in public hearing. Could do either. Would like to see
it prepared for ballot form.
Bailey spoke against substitute motion. Said she really felt it is too complicated
a motion and should vote on one issue at a time. Should determine for this year
only. Would prefer that we use our $90 million reserve and what we are getting
from Jarvis and see how the District does.
Svalstad moved amendment to motion that we have no user fee this year. Saltarelli
stated that his motion was out of order. His motion was basically the original
motion. He said it was not the original motion which was within certain confines
at the present time. Svalstad's motion was just no fees this year. Don't know
what will be next year.
Siebert stated he was against substitute motion and for the original motion.
If we can't pay the bills, let State and Federal government sue the people.
Stanton said that his motion specifically excluded any fee for this year. Use
the funds that we have now for this year. The second sentence is intended to avoid
the kind of situation that we have this year where there is a proposal before us
.r that has no equity. Trying to avoid that next year. Directing staff to take
one year to develop something public can consider, possibly at ballot box next year.
Olson asked, in the original motion are we assuming that we are going to have
• a moratorium on capital expansion for this year? Saltarelli said may have to
curtail some expenses but can get through this for one year. If there are changes
in legislation, possibly will not be a need for user charge. We can for one year
handle our obligations.
Called for the question on substitute motion. Roll call vote. Motion failed.
Vardoulis restated his motion again. Moved Alternative IA with the elimination
of the second paragraph and with elimination of the estimated 78-79 flat rate,
and that there be no user charge, and that we live within the constraints of
Proposition 13 which is our portion of the 1%, and that everybody here tonight
help us lobby the State to reject that portion of SB 154 that denies us a portion
of the 1%, and further, that everybody here tonight and all that they can gather
support a movement to get State and Federal government to impose no new requirements
on us and provide waivers or the money for existing excessive requirements already
placed on us. Motion seconded again. Roll call vote. Motion carried.
-2-
PUBLIC HEARING
JULY 19 , 1978 - 6 : 00 P.M.
SUBSTITUTE ALTERNATIVES MOVED AND SECONDED FOR ROLL CALL VOTE
MOTION MADE BY ROGER STANTON:
"THAT APPROXIMATELY $10. 2 MILLION IN DISTRICTS ' FUNDS RESERVED
FOR CONSTRUCTION WILL BE DIVERTED FROM CAPITAL ACCOUNTS TO OPERATING
ACCOUNTS AS REQUIRED DURING 1978-79 TO FUND OPERATIONS. FURTHER-
MORE, THAT THE STAFF OF THE DISTRICT IS HEREBY DIRECTED TO DEVELOP
AN EQUITABLE USER FEE PLAN WHICH MAY BE PLACED BEFORE THE VOTERS
NEXT YEAR PENDING THE RESULTS OF EFFORTS TO WAIVE STATE AND FEDERAL
MANDATED REQUIREMENTS. "
MOTION MADE BY BILL VARDOULIS :
"THAT ALTERNATIVE IA, WITH THE ELIMINATION OF THE SECOND
PARAGRAPH, AND WITH THE ELIMINATION OF THE ESTIMATED 79-80 FLAT
RATE, AND THAT THERE BE NO USER CHARGE, THAT WE LIVE WITHIN THE
CONSTRAINTS OF PROPOSITION THIRTEEN WHICH IS OUR PORTION OF THE 1%.
ALSO THAT EVERYBODY HERE TONIGHT AND ELSEWHERE HELP US TO LOBBY THE
STATE TO REJECT THAT PORTION OF SB 154 THAT DENIES US A PORTION OF
THE 1%. FURTHER THAT EVERYBODY HERE TONIGHT AND ALL THAT THEY CAN
GATHER SUPPORT A MOVEMENT TO GET THE STATE AND FEDERAL GOVERNMENT
TO IMPOSE NO NEW REQUIREMENTS ON US AND PROVIDE WAIVERS OR THE
MONEY FOR EXISTING EXCESSIVE REQUIREMENTS ALREADY PLACED ON US. "
JULY 19, 1978 - PUBLIC HEARING RE PROPOSED FLAT RATE SPECIAL ASSESSMENT
All Districts
Saltarelli: Before we get started, there have been some questions regarding how you will be
able to give testimony this evening. If you received one of the little slips
for giving testimony, you should sign that slip a deliver it to the side of the
building, where there is a table and we will take those comments and call each
person's name to give testimony. Would it be better if I stood up for the people
in the back?
Ladies and Gentlemen, my name is Don Saltarelli, I'm Joint Chairman of the
Sanitation Districts. The purpose of this meeting tonight is to receive public
testimony on the proposals of the Districts to establish the flat rate special
assessment for the seven Sanitation Districts to be collected on this year's
county tax roll. Before we start the public hearing I would like to introduce
the members sitting at the table with me. . . on my right, your left is Mr. Tom
Woodruff, the Districts' General Counsel; on my left is Fred Harper, General
Manager of the Sanitation Districts. Sitting directly in front of me at the
tables the various members of the Boards of Directors. First, I would like to
set a tone, if you will, for this meeting as I realize that the public notice of
the hearing has created concern by some that the Sanitation Districts intend to
ignore the mandate of the Jarvis/Gann Initiative , prominently known as Proposition
13. Tonight is going to be a learning process for us, the Directors of the Districts,
and I believe it's going to be a learning process for those of you who are here
also. I can assure you for the Directors of the Sanitation Districts that it is
not our purpose to circumvent Proposition 13, as we understand that the people
want the fat cut out of Government. We understand that the property tax payer is
sick and tired of rising costs for no apparent benefit. While we are very much
aware of the importance of the Jarvis-Gann amendment, we also recognize that people
want clean water because they approved on the same ballot as Proposition 13 . . .
I request that you please be courtious for the people who came here to hear the
hearing and I think we'll all get along a lot better and learn something. Thank
you. The people passed the State Clean Water Bond Act of 1978 on the same ballot
as Proposition 13. The Sanitation Districts are regulated by many agencies --
the County and State Health Departments, the State Water Resources Control Board,
the United States Environmental Protection Agency -- just to name a few. The
Sanitation Districts operate the third largest wastewater treatment facility on
the West Coast. Capital costs for present day facilities are $229,000,000.
Additional construction required during the next eight years will double this
figure. The Districts collect, treat and dispose of wastewater from 408,000
.ow residential, commercial and industrial connections which serve one and one half
million people in the 23 cities in Orange County. The Districts' revenues come
from connection fees, annexation fees, industrial user fees, Federal and State
construction grants and in the past from ad valorem special assessments on the
County tax bills. It has now been determined that we can no longer have ad
valorem tax assessments; however, the Sanitation Districts have statutory authority
under the State Health and Safety Code to establish user fees. We also have
authority under the same code to collect those fees on the County tax bill subject
to the procedures which we are following tonight. I would like to comment briefly
on the activities of the Districts because we are being required to expand our
operations rather than curtail them. In 1972 an $18 billion construction grant
program was initiated under Public Law 92-500. This law provided for Federal
assistance of 750 of the cost for all municipalities throughout the country to
obtain a level of wastewater treatment known as secondary treatment. Since then
the Sanitation Districts have been engaged in meeting the secondary treatment
requirement. We have just completed a $32 million project here in Fountain Valley
to bring this 50 MGD plant up to the Federal requirements. In addition, the
r. Districts have let contracts totaling $50 million at Plant No. 2 in Huntington
Beach to construct secondary treatment facilities for 7S MGD of secondary treat-
ment. Currently, this 13S million gallon facility has only primary treatment.
In addition, to the $50 million project, we expect to let a contract of 12.4
million dollars later this year for the required sludge handling facilities.
That's the messy part. During the past six years the Districts have not been
permited to add any additional capacity at the treatment facilities by the State
and Federal agencies, even though there is a continuing growth in area. As the
new facilities come on line, we are required to operate them and if we fail to
operate these facilities and we do not comply with the State and Federal permit
requirements stringent fines are imposed upon the Districts. As I stated earlier
we expect to construct another $200 million in treatment plant facilities during
the next eight years. We are hopeful that we can avoid half of this construction
by not completing allof the secondary treatment. This agency, along with many
other agencies in the United States, has been pressing Congress to avoid needless
expenditures of money and energy supplies by constructing facilities for treatment
sake alone. We demonstrated to Congress that secondary treatment, which is rightly
•.• required for discharge into fresh water, is not required for deep ocean discharge
such as we have here on the West Coast. In December of 1977, the Congress passed
a bill which provides for waiver of secondary treatment at the discretion of the
-2-
Environmental Protection Agency Administrator, if the discharger can prove that
a degree of treatment less than secondary treatment will not be detrimental to
the marine environment. The California State Water Resources Control Board
supported this amendment to the Federal Act and we are now in the process of
applying for a waiver. However, the requirements established by the EPA implementing
this waiver provision appear to be extremely stringent and we have know way of
knowing whether the Districts will receive this waiver. But if we do, we _wi_ll
save $100 million in construction costs and the accompanying $7 million per year
in operating costs that it will take to operate that facility. Our application
must be in Washington, D.C. by September 24, 1978 of this year. EPA could take
as long as 18 additional months to decide our fate on that issue. The Districts
have had a long-range planning and budget program and have attempted to maintain
a stable situation for the taxpayers without surprises. We have continually
reduced the tax rate and this year in light of the Jarvis-Gann have reduced the
property owners' burden by $2.2 million. Since the mailing of the notice, we
have received thousands of phone calls and we are fully aware of the taxpayers'
concerns. About 70% of. . . . .we pay taxes too. . . .About 70% of us here
tonight. . . . .I'm going to ask that a few people be removed so that the majority
.� can hear if that's necessary. . . . . . .About 70% of us here, statistically,
voted for Proposition 13. I think that what we were saying when we voted for
Proposition 13 was that we were willing to pay 1% tax on our property and that's
all you get. Since we said that, give us the essential services that we want
with our taxes, such as police and fire, sewer and water and do the best with
the rest you have. Unfortunately, a few days after Proposition 13 was passed,
the State Legislation passed a new law, Senate Bill 154, which in effect, says
we must go to a system of user charges after fiscal year 78-79 and we will not
get any share of that property tax bill. Our Board of Supervisors have also
advised us that we may not get any of that share this year. It is frustrating
for us to see this controversy arise when we know that our monthly charge for
sewer services ranges from $3.25 a month on the low side to $4.99 a month in
the most expensive Districts , while several of our neighboring Districts charge
as high as $9.60—per month. We spent three years trying to convince Congress
that the ad valorem tax was the most equitable method to charge. They finally
agreed and yet now we are being forced to go to a user charge. We realize
there are many inequities, such as the regressive nature of a user charge where
NEW it's more costly to the lower income person or to the person who has a lower
assessment of their property. We also are aware that there are people who
have several parcels that we require no sewage service at all and we developed
-3-
a system whereby those parcels will not have to pay a sewer service charge on
those parcels. Before we take public testimony there are a couple of quick
points that should be made. 1) The legal aspects of our proposed action of
establishing the flat rate special assessment ; and 2) The concern of the
amount of funds presently held by the Districts. I will ask our General Counsel,
Mr. Woodruff, to review the statutory authority by which the District can impose
user charges and the relationship to the recently passed Propositon 13. Following
this presentation the infamous Wayne Sylvester will comment on the funds that are
presently held by the Districts and their relationship to our requirements. Again,
I suggest that we are not here as advosaries, but here to get the facts and I'll
now turn it over to Mr. Woodruff. Thank you.
Woodruff: Mr. Chairman and Directors of the District, Ladies and Gentlemen, I've been asked
by the Chairman to give a brief outline of the procedures, not only as they
govern this meeting, but with particular reference to the applicable state laws
by which this District operates and under which it's anticipating the need to
meet its budget requirements by the adoption of a user service charge for the
forthcoming fiscal year. The Directors have been provided previously during the
course of the last couple of months with a couple of legal opinions from my
office pertaining to the method by which the Sanitation Districts have, over
the past thirty years, have funded their o erations. Specifically, over this
period of time there has been a rate levie . against all real property and
improvements,_and that's been based on an assessment using the ad valorem tax
rolls. I well appreciate, and I've talked to many of you people previous to this
meeting tonight and I know there is some concern relative to the destinction
between an assessment and a tax but the fact is, not for me to pass judgment
or even these Directors, that the fact is that in the State of California there
is a clear legal distinction between an assessment and a tax. I won't. . . . . . .
the fact remains, that that is the law by which we must operate, whether we like
it or not. If the District had been able to proceed as they had in the past thirty
years, we would have continued to use the ad valorem rolls and levied a charge
based thereon and there would have been no particular need for a public hearing.
We have, however, reviewed this matter with the legal authorities both in Sacramento
through the State offices . My own office, that of the County Government at the
County Counsel's office and have concluded that while we do provide a singular
special benefit; namely the treatment of wastewater only, and no governmental
services, that we are entitled to proceed on an assessment. However, as the
Joint Chairman pointed out a moment ago, the State Legislation was directed
in Proposition 13 to adopt certain necessary implementing laws and that they have
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done by the adoption of Senate Bill 154 and a cleanup measure which followed a
few days later. In doing that, they have provided in there certain contraints
as were enacted by Jarvis that say the County and its auditor shall levy only
a rate of $4 per hundred and that levy is what this Districts is going to be
bound by. -As a- result, the District will in my opinion, and I have so advised
these Directors that we will, in fact, be able now and we have the concurrence
of the Orange County Counsel's that we will share in the 1% or $4 per hundred
levy which is the maximum allowed by Jarvis. As a result, I think you're going
here from the . . . .well, before you boo, I think that's going to turn out to
be a considerable benefit to every person in the audience tonight. The hearing
procedure which we are here for tonight is being conducted pursuant to the
provisions of the State Health and Safety Code and that code says that every
Sanitation or Sanitary District in this State has not only the authority, but
the oblizUkon to establish charges, or rates or tolls,or whatever you choose
to call it, in order to pay for its cost for operation and maintenance and that
is -what-we are here to do tonight. Secondly, that State law provides that for
the convenience that we can utilize the systems and the facilities of the county
tax collector's office --- there's two optional provisions in which these Districts
can proceed in which to collect the revenues. They could go through an invoicing
basis to all of the 408,000 plus or minus, property owners in the County or within
the Districts and attempt to collect them on an invoice basis. That would cost
the Districts hundreds of thousands of dollars to do so. In lieu of that there
is optional statutory provision which is being recommended for use by the Districts
that they simply turn the invoice, in effect, and the assessment over to the
County Tax Collector and utilize those facilies at a cost reduction. The charge
that is being considered for adoption tonight is, in fact, just a charge in
direct response to use of the service and the system in an effort to balance the
cost in doing that. The Finance Director is going to comment upon the particular
financial aspects but the right of the Districts to proceed and receive some
portion of the necessary revenues through an individual parcel assessment, whether
it be flat rate or variable, is granted pursuant to the state law and has not
been affected by Jarvis. Mr. Chairman, I think that's it as far as the outline.
Saltarelli: I'll now ask Mr. Sylvester to give a very brief rundown of the financial matters.
Sy' tester: We know your interested in getting on with the hearing, so we will keep this brief.
I would like to refer you to the yellow page in the package that you received and
we hope you all received. We ran enough copies for the attendance we expected here.
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Sylvester: That yellow page summarizes,and I bring to your attention that it's in the millions
of dollars,summarizes the anticipated requirements of the Districts over the next
"~ five years and the primary influence on our funding and on our expenditures, as
was mentioned before is a requirement by the Federal and State agencies for us
to go to a higher degree of treatment. The first item on there shows carry-over
of $88 million -- this figure. . . . . .I'd like to point out to you that as you've
read in some of the news media, that carry-over figure, as you have noted, is $90
million and I apologize for the error in the register to that extent. I 'd like
to point out to you that $60 million of this is presently commited to treatment
plant construction projects that are either under construction now or under design,
$10 million of it is commited for construction projects of trunk sewers which are
either under construction now out in the Districts or under design. The next line
shows the assessment and that's the reason you're here tonight and I won't comment
further on that -- it shows $17 million, the assessment for this year. The next
line shows $14 on the 1978-79 fiscal year -- that is the amount of construction
grants that we received to assist in the payment of the obligations for the
treatment plant expansion. The next item is $1 million loan -- that refers to
one District -- there are a lot of questions that we've had in the last week
both in writing and over the telephone with regard to industry and the charges
for industrial firms -- I believe that there's some misunderstanding -- that we
do, in fact, surcharge industry for their actual use. The charge to them will
not be the flat rate alone, but they do get charged for the actual discharge into
the system. We recognize $4 million a year for that type of income. The remaining
item is miscellaneous income and interest. Under expenditures, the first line
item over the next five years we will have to spend $30 million for trunk sewer
construction. We'll have to spend $192 million for treatment plant construction
primarilly that which is required by the Federal Government. We will have to spend
in the neighborhood of $79 million to maintain and operate those advanced treat-
ment facilities and trunk sewer maintenance will cost another $15 million during
the next five-year period.
Saltarelli: Thank you. Now, I'd like to turn it over to Mr. Fred Harper, who will explain
the options that the Boards of Directors have this evening to vote in regard
to the assessment, as well as,a few general comments.
Harper: Thank you, Mr. Chairman. Included in the same handout package for tonight is
.. the goldenrod sheet and immediately behind it is a pink sheet and essentially
what the proposal is tonight as a result of the legislation that was passed in
Sacramento, are the two options which are on the pink sheet. These are really
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the options that it boils down to at this point.
SaTtarelli: You want us to go over those options with you again?
Harper: The first -- On the pink sheet the Option IA is no proposed flat rate for this
year -- no proposed flat rate charge. The District would take the estimated
supossedly $7 million which we would receive from the to pro rate share of the
property tax levy; however, the following year there would be some type of user
charge because we will no longer be on the tax roll. The proposal IIA on the
second page of the pink sheet shows for the proposed user charge with the 78-79
year is a reduction from the figure that was on the notice that was mailed to
you. This take into account the funds that the Districts expect to receive from
their pro rata share of the tax levy. In addition, to the proposal there would
be a system of rebates and exclusions for those properties that should not be
charged. We have a full rebate proposal and also a two-thirds rebate proposal
depending on the situation.
Saltarelli: Thank you. Now the Chair would now entertain a motion from the Board to enter
into the record all the written comments that have been submitted or will be
Nwl submitted this evening. Is there a motion to that effect? Have a motion and
seconded. Any discusion? All those in favor say aye. . . .opposed. . . . .motion
carried. Alright, it is now time to take public comments. We have a list of
people who have filled out the blue sheets and we would ask that as I call out
the names --- I'll call out about 10 names and if you could come in some sequence
to that order to the podium to give us the comments you wish to make -- I would
ask you, because of the number of people we have to speak -- we're willing to
stay here just as late as you want to y- but we know that it's not necessarily
a good hour for everyone -- to keep your comments as brief as possible and try
not to be repetitious of what someone else might have said before you. The first
speakers would be Ward Millhouse, Laura Laberdette, Loreen Gray, Harriett
Weider, Dave McAffey, W. L. Chambers, Harry Appling, Virginia Elkins, Marvin Went,
T. B. Barren and we'll comments from these people first and then we'll call some
additional names. Thank you.
c1laii-m<:n Don Saltarclli
July 19th Public Hearing -
LADIES AND GENTLEMEN :
PlY NAME IS D014 SALTARELL I , JOINT CHAIRMAN OF THE SAN I TAT I O14
DISTRICTS , THE PURPOSE OF THIS MEETING TONIGHT IS TO GET PUBLIC
TESTIMONY ON PROPOSALS OF THE DISTRICTS TO ESTABLISH FLAT RATE
SPECIAL ASSESSMENTS FOR THE 7 SANITATION DISTRICTS, TO BE COLLECTED
ON THIS YEARS COUNTY TAX ROLL_ ,
I3EFORE WE START THE PUBLIC BEARING, I WISH TO INTRODUCE THE
MEMBERS SITTING AT THE TABLE WITH ME , ON MY RIGHT IS THOMAS WOODRUFF,
THE DISTRICTS GENERAL COUNSEL; ON MY LEFT IS VICE JOINT CHAIRMAN
DON FOX, COUNCILMAN FROM THE CITY OF BREA , NEXT TO ViR , FOX IS
FRED HARPER, GENERAL MANAGER OF THE DISTRICTS ,
SITTING AT THE l-ABLES I h111ED IATELY IN FRONT ARE THE MEMBERS OF
THE BOARDS OF DIRECTORS ,
FIRST, I WOULD LIKE TO SET A TONE, IF YOU WILL, FOR THIS MEETING
AS I REALIZE THAT THE PUBLIC NOTICE OF THIS HEARING HAS CREATED
CONCERN BY SOME THAT THE SANITATION DISTRICTS INTEND TO IGNORE THE
MANDATE OF THE JARVIS/GANN INITIATIVE (PROPOSITION 13)
TONIGHT IS GOING TO BE A LEARNING PROCESS FOR US, THE DIRECTORS
OF THE SANITATION DISTRICTS, AND I BELIEVE IT IS GOING TO BE A
LEARNING PROCL=SS FOR THOSE OF YOU WHO ARE HERE , I CAN ASSURE YOU,
FOR THE DIRECTORS OF THE SAN 1 TAT I ON D I STR I CTS, THAT IT IS NOT OUR
PURPOSE TO CIRCUMVENT THE INTENT OF PROPOSITION 13 AS WE UNDERSTAND
THAT PEOPLE WANT THE FAT CUT OUT OF GOVERNMENT , WE UNDERSTAND THAT
THE PROPERTY TAXPAYER IS SICK AND TIRED OF RISING COSTS FOR NO
APPARE14T BENEFITS ,
I,HILE WE ARE VERY MUCH AWARE OF THE IMPORTANCE OF THE JARVIS/
GANN AMENDMENT, WE ALSO RECOGNIZE THAT PEOPLE WANT CLEAN WATER
BECAUSE THEY APPROVED, OIJ THE SAME BALLOT AS PROPOSITION 13, THE
�I
STATE CLEAN WATER BOND ACT OF 1070, THE SANITATION DISTRICTS ARE
REGULATED BY MANY AGE14CIES : THE COUNTY AND STATE HEALTH DEPART-
MENTS, STATE WATER RESOURCES CONTROL BOARD, AND THE UNITED STATES
ENVIRONMENTAL.. PROTECTION AGENCY. THE SANITATION DISTRICTS OPERATE
=i THE THIRD LARGEST WASTEWATER TREATMENT SYSTEM ON THE WEST COAST.
CAPITAL COSTS FOR PRESENT DAY FACILITIES ARE $229 MILLION; ADDI-
TIONAL CONSTRUCTION REQUIRED DURING THE NEXT '8 YEARS WILL DOUBLE
THIS FIGURE .
THE DISTRICTS COLLECT, TREAT AND DISPOSE OF WASTEWATER FROM
408, 000 RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CONNECTIONS WHICH
SERVE 1. 5 MI-LLION PEOPLE IN THE -23 CITIES IN THE ORANGE COUNTY
METROPOLITAN AREA . THE DISTRICTS REVENUES COME FROM CONNECTION
FEES, ANNEXATION FEES, INDUSTRIAL USER FEES, FEDERAL AND STATE
CONSTRUCTION GRA14TS AND, IN THE PAST, FROM AD VALOREM SPECIAL
ASSESSMENTS ON THE COUNTY TAX BILLS .
NOW IT HAS BEEN DETERMINED THAT WE NO LONGER CAN HAVE AD VALOREM
SPECIAL ASSESSMENTS . HOWEVER, THE SANITATION DISTRICTS HAVE STATUTORY
AUTHORITY UNDER THE STATE HEALTH AND SAFETY CODE TO ESTABLISH USER
FEES , WE ALSO HAVE AUTHORITY UNDER THE SAME CODE TO COLLECT THOSE
FEES ON THE COUNTY TAX BILLS SUBJECT TO THE PROCEDURES WE ARE FOLLOW-
ING TONIGHT.
I WOULD LIKE TO COMMENT BRIEFLY ON THE ACTIVITIES OF THE SAN I --
TATION DISTRICTS BECAUSE WE ARE BEING REQUIRED TO EXPAND OUR
OPERATIONS, RATHER THAN CURTAIL THEM. IN 1972, *AN $10 BILLION
MUNICIPAL CONSTRUCTION GRANT PROGRAM WAS INI1•IATED U14DER PUBLIC
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LAW 92-•500, THIS ACT PROVIDED FOR FEDERAL ASSISTANCE OF 75% OF
THE COSTS FOR ALL MUNICIPALITIES THROUGHOUT THE COUNTRY TO ATTAIN
A LEVEL OF WASTEWATER TREATMENT KNOWN AS SECONDARY TREATMENT,
SINCE THEN, THE SANITATION DISTRICTS HAVE BEEN ENGAGED IN MEETING
THE SECONDARY TREATMENT REQUIREMENT, WE HAVE JUST COMPLETED A
$32 MILLION PROJECT IN FOUNTAIN VALLEY TO BRING THIS 50 MILLION
GALLON PER DAY PLANT UP TO FEDERAL REQUIREMENTS , IN ADDITION, THE
DISTRICTS HAVE LET CONTRACTS TOTALING $50 MILLION AT PLANT 2 IN
HUNTINGTO14 BEACH TO CONSTRUCT SECONDARY TREATMENT FACILITIES FOR
75 MGD OF SECONDARY TREATMENT, CURRENTLY, THIS 135 MGD FACILITY
HAS ONLY PRIMARY TREATMENT , IN ADDITION TO THE $50 MILLION PROJECT,
WE EXPECT TO LET A CONTRACT OF $12 .4 MILLION LATER THIS YEAR FOR
THE REQUIRED SLUDGE HANDLING FACILITIES ,
DURING THE PAST SIX YEARS, THE DISTRICTS HAVE NOT BEEN PERMITTED
�r
TO ADD ANY ADDITIONAL CAPACITY AT THE TREATMENT FACILITIES BY THE
STATE AND FEDERAL AGENCIES, EVEN THOUGH THERE IS CONTINUING GROWTH
IN THE AREA , AS THE NEW FACILITIES COMMON LINE, WE ARE REQUIRED
TO OPERATE THEM AND IF WE FAIL TO OPERATE THESE FACILITIES AND DO
NOT COMPLY WITH THE STATE AND FEDERAL PERMIT REQUIREMENTS, STRINGENT
FINES CAN BE IMPOSED (UPON THE DISTRICJTS ,
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R7GI-ITLY REQUIRED FOR DISCHARGE TO FRESH WATER IS NOT REQUIRED FOR DEEP
OCEAN DISCHARGE.
IN DECEMBER '77, THE CONGRESS PASSED A BILL WHICH PROVIDES
FOR A WAIVER OF SECONDARY TREATMENT AT THE DISCRETION OF THE
ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR IF THE DISCHARGER CAN
PROVE THAT A DEGREE OF TREATMENT LESS THAN SECONDARY TREATMENT
WILL NOT BE DETRIMENTAL TO THE MARINE ENVIRONMENT.
THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD SUPPORTED
THIS AMENDMENT .TO THE FEDERAL ACT AND WE ARE NOW IN THE PROCESS
OF APPLYING FOR A WAIVER . HOWEVER, THE REQUIREMENTS ESTABLISHED
BY THE EPA IMPLEMENTING THIS WAIVER PROVISION APPEAR TO BE EX-
TREMELY STRINGENT AND WE HAVE NO WAY OF KNOWING WHETHER OR NOT
THE DISTRICTS WILL RECEIVE THIS WAIVER, BUT IF WE DO, WE WILL
SAVE $100 MILLION IN CONSTRUCTION COSTS AND THE ACCOMPANYING
$7 MILLION PER YEAR IN OPERATING COSTS . OUR APPLICATION MUST BE
IN WASHINGTON BY SEPTEMBER 24 OF THIS YEAR . EPA COULD TAKE AS
LONG AS 18 MONTHS TO DECIDE OUR FATE .
THE DISTRICTS HAVE HAD A LONG-RANGE PLANNING AND BUDGET PROGRAM
AND WE HAVE ATTEMPTED TO MAINTAIN A STABLE SITUATION FOR THE
TAXPAYER WITHOUT SURPRISES . WE HAVE CONTINUALLY REDUCED THE TAX
RATE AND THIS YEAR THE DIRECTORS, IN LIGHT OF THE JARVIS/GANN
_HAVE REDUCED YOU, THE PROPERTYOWNERSI BURDEN BY $2 . 2 MILLION .
--��t-� BEFORE WE TAKE PUBLIC TESTIMONY, THERE ARE A COUPLE OF POINTS
THAT MUST BE MADE , ONE, THE LEGAL ASPECTS OF OUR PROPOSED ACTION
OF ESTABLISHING FLAT RATE SPECIAL ASSESSMENTS AND (2) , THE CONCERN
OF THE AMOUNT OF FUNDS PRESENTLY HELD BY THE SANITATION DISTRICTS ,
I W�L� ` )
D ASK OUR GENERAL COUNSEL, MR . WOODRUFF, TO REVIEW THE
STATUTORY AUTHORITY BY WHICH THE DISTRICTS CAN IMPOSE USER CHARGES
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AND THE RELATIONSHIP TO THE RECENTLY-PASSED PROPOSITION 13 .
FOLLOWING THIS PRESENTATION, OUR DIRECTOR OF FINANCE, WAYNE
SYLVESTER, WILL COMMENT ON THE FUNDS THAT ARE PRESENTLY HELD
BY THE DISTRICTS AND THEIR RELATIONSHIP TO OUR REQUIREMENTS ,
AGAIN, I SUGGEST THAT WE ARE NOT HERE AS ADVERSARIES, BUT
HERE TO GET THE FACTS ,
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