HomeMy WebLinkAboutOCSD 04-09RESOLUTION NO. OCSD 04-09
DEDICATING REVENUES FOR THE PAYMENT OF DEBT
OBLIGATIONS
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT, DEDICATING
ITS REVENUES FOR PAYMENT OF DEBT OBLIGATIONS
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 4 700 et seq.; and
WHEREAS, District obtains revenues to meet its obligations for providing
wastewater, collection, treatment and disposal facilities and services to the residents and
businesses in twenty-four Cities and the unincorporated areas of Orange County; and
WHEREAS, the most reliable sources of revenues are the ad valorem property
taxes and annual sewer service charges; and
WHEREAS, said revenues are required in order to provide construction and
rehabilitation of capital facilities, and to operate and maintain all of its collection,
treatment and disposal facilities; and
WHEREAS, said revenues are obtained from various sources, including ad
valorem property taxes, sanitary sewer service charges and earned interest on
investments; and
WHEREAS, the District, in order to fulfill the capital facilities requirements of its
30-year Master Plan, issued Refunding Certificates of Participation for financing said
requirements in the years 1992, 1993 and 2000, and issued additional Certificates of
Participation in August 2003, and will do so again in 2005 and subsequent years, to
assist in paying the cost of the acquisition and construction of additional District facilities;
and
WHEREAS, the loss or reduction of ad valorem property tax revenues could
result in a significant adverse impact on the District's ability to meet its obligations under
the terms of such financing documents; and
WHEREAS, Districts, in the course of the issuance of its Certificates of
Participation financing, has 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; 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
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WHEREAS, the District has determined that (a) a dedication of its revenues, and
in particular its ad valorem taxes, towards the payment of its obligations under long-term
financing, past and future, will benefit the taxpayers and ratepayers of the District in that
it provides greater assurance of the payment of its debt obligations; 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 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
WHEREAS, the District has previously adopted Resolutions Nos. 92-47-1 et seq.
and Resolution No. OCSD 98-26 dedicating revenue for the payment of its debt
obligations; and
WHEREAS, District wishes to reaffirm the policy of its Predecessor Districts and
this consolidated District, of dedicating its revenue sources for payment of its debt
obligations.
NOW, THEREFORE, the Board of Directors of Orange County Sanitation District,
DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: To assure the continued financial viability of this District, District
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: All other revenues,
to meet its on-going debt obligations pursuant to the Master Agreement for District
obligations dated as of August 1, 2000, and Refunding Certificates of Participation 1992
Series; Refunding Certificates of Participation 1993 Series; and Refunding Certificates of
Participation 2000 Series; and Certificates of Participation dated August 2003, and any
future obligations issued pursuant to the Master Agreements of August 1, 2000, and any
future agreement or agreements for the acquisition, construction, maintenance, or
operation of the sewers, and works of other facilities designated by the District as
receiving the benefit of this dedication.
PASSED AND ADOPTED at a meeting held April 28, 2004.
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