HomeMy WebLinkAboutOCSD 98-26 (See also OCSD 04-09)"' •
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RESOLUTION NO. OCSD 98-26
DEDICATING REVENUES FOR THE PAYMENT OF
OBLIGATIONS I
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A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE!
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COUNTY SANITATION DISTRICT, DEDICATING ITS REVENUES
FOR THE PAYMENT OF OBLIGATIONS !
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WHEREAS, the Orange County Board of Supervisors, by approval on April 14,
1998 of County Resolution No. 98-140, has ordered the Consolidation of County
Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the
"Predecessor Districts") into a single new District, to be known as the Orange Cpunty
Sanitation District ("District"); and 1
WHEREAS, pursuant to Government Code Section 57500, the District succeeds
to all of the powers, rights, duties, obligations, functions and properties of the I
Predecessor Districts; and :
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WHEREAS, District is a County Sanitation District organized and existing
pursuant to the provisions of the County Sanitation District Act, California Health &
Safety Code Sections 4700 et seq.; and :
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WHEREAS, District obtains revenues to meet its obligations for providin@
operations, maintenance, capital facilities improvements under financing agreements
from various sources, the most reliable of which are ad valorem property taxes ~nd
annual sewer service charges; and,
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WHEREAS, certain of the Predecessor Districts have delivered Certifica~es of
Participation in 1986, 1990, 1991 and 1992 and Refunding Certificates of Parti~ipation
in 1992 and 1993, as a financing mechanism to assist in paying the cost of the ;
acquisition and construction of District facilities and joint works facilities; and, i
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.. WHEREAS •. ~red~ce~sor ~istricts, i~ the course of the 198~ and_ 1990-~3
Cert1f1cates of Part1c1pat1on fin·ancing, received very favorable credit ratings based upon
their financial stability and the reliability of their sources of revenues, thus resulting in
more favorable interest rates on the obligations and a lower net cost to the taxRayers
and ratepayers; and,
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64939_1 1
Reaffirmed by OCSD 04-09
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WHEREAS, the District, in order to fulfill the capital facilities requirement~ of its
30-year Master Plan, is considering the issuance of additional Certificates of
Participation for financing during 1999 and subsequent years, to assist in paying the
cost of the acquisition and construction of additional District 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 1dwest
possible interest rates; and,
WHEREAS, the District has determined that (a) a dedication of its revenJes, and
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in particular its most reliable revenues, towards the payment of its obligations under
long-term financing, past and future, will benefit the taxpayers and ratepayers of the
District; and (b) dedicated reliable revenue sources and the related higher credit
ratings are of considerable importance to investors purchasing the long-term fin~mcing
obligations of the District, 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; and, 'i
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WHEREAS, the Predecessor Districts have adopted Resolutions Nos. 9~-47-1 et
seq. dedicating revenue for the payment of obligations; and,
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WHEREAS, District wishes to reaffirm the policy of the Predecessor Dist~icts of
dedicating its revenue. '
NOW, THEREFORE, the Board of Directors of Orange County Sanitatio~
District, ·
DOES HEREBY RESOLVE, DETERMINE AND ORDER:
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Section 1: To assure the continued financial viability of this District, D~strict
hereby dedicates its revenues, in the following order of priority: I
First: Its ad valorem property tax revenues;
Second: Its sanitary sewer service charges; and
Third: Its other revenues,
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to meet its ongoing obligations pursuant to the Agreements for Acquisition and I
Construction and Certificates of Participation, 1986 and 1990-92 Series A, Seri~s 8,
and Series C; Refunding Certificates of Participation 1992 Series; and Refunding
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Certificates of Participation 1993 Series, and any future agreement or agreeme~ts for
acquisition, construction, maintenance or operations of the sewers, works of other
facilities designated by the District as receiving the benefit of this dedication. 1
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PASSED AND ADOPTED at a Special Meeting held July 1, 1998.
Chair i
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