HomeMy WebLinkAboutResolution 1992 - 0047RESOLUTION NO.92-47-1’
DEDICATING REVENUES FOR THE PAYMENT OF OBLIGATIONS
A RESOLUTION OF THE BOARD OF DIRECTORS OF DISTRICT NO.1.
OF ORANGE COUNTY,CALIFORNIA DEDICATING ITS REVENUES FOR
THE PAYMENT OF OBLIGATIONS
*****
WHEREAS,District No.1 is a County Sanitation District
organized and existing pursuant to the provisions of the County
Sanitation District Act,California Health &Safety Code Section
4700 et seq.;and
WHEREAS,District is a signatory agency to the Joint
Ownership,Operation and Construction Agreement by and among the
several County Sanitation Districts of Orange County,California to
provide for the joint administrative organization and to jointly
acquire,construct and operate wastewater collection,treatment and
disposal facilities dated and effective July 1,1985;and,
WHEREAS,pursuant to the terms of the Joint Ownership,
Operation and Construction Agreement,the District is obligated to
make payments on a pro rata basis with each of the other signatory
Districts to the Agreement,for the construction of joint
facilities,and to additionally make payments on a pro rata basis
with each other District for the cost of operation and maintenance
of the joint facilities;and,
WHEREAS,District obtains revenues to meet its obligations
under the Joint Ownership,Operation and Construction Agreement and
under financing agreements from various sources,the most reliable
of which are ad valorem property taxes and annual sewer service
charges;and,-
WHEREAS,District has delivered Certificates of Participation
in.1986,1990 and 1991,as a financing mechanism to assist in
paying the cost of the acquisition and construction of District
facilities and joint works facilities;and,
WHEREAS,District,in the course of the 1986 and 1990-92
Certificates of Participation financing,received very favorable
credit ratings based upon its financial stability and the
reliability of its sources of revenues,thus resulting in more
favorable interest rates on the obligations and a lower net cost to
the taxpayers and ratepayers of the District;and,
WHEREAS,the District,in order to fulfill the capital
facilities requirements of its 30—year Master Plan,is
contemplating additional Certificates of Participation financing
during 1992 and subsequent years,to assist in paying the cost of
the acquisition and construction of additional District facilities
and joint wo±~ks facilities;and,
WHEREAS,future financing obligations will be most cost
effective if the District again receives favorable credit ratings
and is able to sell its obligations at the lowest possible interest
rates;and,
WHEREAS,the District has determined that (a)a dedication of
its revenues,and in particular its most reliable revenues,towards
the payment of its obligations under the Joint Ownership,Operation
and Construction Agreement and under long—term financing,past and
future,will benefit the taxpayers and ratepayers of the District;
2
and (b)dedicated reliable revenue sources and the related higher
credit ratings are of considerable importance to investors
purchasing the long-term financing obligations of the I)istrict,as
is evidenced by the successful prior financing issues which were
able to rely upon both the ad valorem tax revenues and the annual
sewer service charges.
NOW,THEREFORE,the Board of Directors of County Sanitation
District No.1 of Orange County,California,
DOES HEREBY RESOLVE,DETERMINE AND ORDER AS FOLLOWS:
Section 1 To assure the continued financial viability of
this District,and for the benefit of all other Districts,and
understanding that each other District will similarly make such a
dedication,District No.1 hereby dedicates its revenues,in the
following order of priority:
First:Its ad valorem property tax revenues,
Second:Its sanitary sewer service charges,and
Third:Its other revenues,
to meet its obligations under the Joint Ownership,Operation and
Construction Agreement,the Agreements for Acquisition and
Construction and Certificates of Participation,1986 and 1990-92
Series A and Series B,and any future agreement or agreements for
acquisition,construction,maintenance or operations of the sewers,
works of other facilities designated by the District as receiving
the benefit of this dedication.
PASSED AND ADOPTED at a regular meeting held I~Ia~’13,1992
3
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE )
I,RITA J.BROWN,Secretary of the Board of Directors of County
Sanitation District No.1 of Orange County,California,do hereby certify that
the foregoing Resolution No.92-47—1 was passed and adopted at a regular
meeting of said Board on the 13th day of May,1992,by the following vote,
to wit:
AYES:Dan Griset,Chaiman,Fred Barrera,Thomas R.Saltarelli,
Roger R.Stanton,James A.Wahner
NOES:None
ABSENT:None
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.1 of Orange County,California,this
13th day of May,1992.
~
Board of Directors of County
Sanitation District No.1
of Orange County,California,