HomeMy WebLinkAbout1978-03-30 - Resolution No. 78-1841 0 r RESOLUTION NO. 78-18 RESOLUTION OF THE BOARD OF DIRECTORS OF YORBA LINDA COUNTY WATER DISTRICT DECLARING THE POLICY OF YORBA LINDA COUNTY WATER DISTRICT WITI-,'. RESPECT TO FUTURE DISTRICT TAXES FOR GENERAL FUND PURPOSES. WHEREAS, consideration of recent annexation proposals has raised questions respecting future District taxes for pur- poses other than the payment of indebtedness and respecting the proper relationship between water revenues and tax revenues when such revenues are used to pay for operation, maintenance and other expenses of the District; and WHEREAS, in the past general fund tax revenues have been useful to provide fiscal stability in light of fluctuating water sales and have also provided a method of assessing a share of District expenses against properties which bene- fit from water availability but do not actually contribute to water revenue because water is not used on the premises; and WHEREAS, growth in the District has tended to stabilize water demand so that water sales are a more dependable source of revenue to cover the relatively fixed operating maintenance, and other expenses of the District and has also reduced the numbers of properties which have water available but do not actually utilize water; and WHEREAS, the District has generally reduced general fund property tax rates in recent years as follows: Fiscal Year General Fund Tax Rate/$100 A.V. 1973-1974 1974-1975 1975-1976 1976-1977 1977-1978 and .2500 .2440 .2575 .2393 .2148; WHEREAS, immediate elimination of general fund property taxes will cause an extreme increase in water rates which may cause hardship and economic dislocation within the Dis- trict while a phased reduction of taxes and increase in water rates will permit orderly budgetary adjustment by water users. NOW, THEREFORE, the Board of Directors of the Yorba Linda County Water District does hereby RESOLVE, DECLARE, FIND, DETEIMINE and ORDER as follows: Section 1: The policy of the Yorba Linda County Water District with respect to District property taxes for purposes other than the payment of indebtedness is as follows: (a) District general fund property tax revenues shall be reduced in orderly and logical phases during the next four fiscal _years so that by fiscal year 1982-1983 and thereafter the District general fund taxes will be eliminated. (b) The objective of this policy shall be to achieve general fund tax revenues during the coming fiscal years not to exceed the following: Fiscal Year 1978-1979 1979-1980 1980-1981 1981-1982 1982-1983 and thereafter General Fund Tax Revenue $256,000 192,000 128,000 64,000 0 0 Section 2: The General Manager is hereby directed annually in connection with budget preparation, to study water rates and assessed value information and, based upon such study, make recommendations to the Board concerning water rates and the sums to be raised by general fund taxes to achieve com- pliance with the policies set forth in this Resolution. Section 3: In the event that in any fiscal year a Force Majeure Deficit is incurred, the provisions of this Resolution shall not apply to taxes levied by Yorba Linda County Water District to provide for such deficit. As used in this section, the term "Force Majeure Deficit" means a deficit between Yorba Linda County Water District's actual revenues and expenditures as previously estimated by Yorba Linda County Water District for such fiscal year in accordance with this Resolution, to the extent that the existence of such a deficit is proximately caused by fire, flood, earth- quake, drought, storm, strike or other industrial disturbance, sabotage, war, insurrection or other civil disturbance, act or requirement of any governmental unit or body, or any similar cause or reason whatever which is beyond the control of Yorba Linda County Water District and not reasonably fore- seeable. Adopted this 30thday call vote: AYES: DIRECTORS NOES: DIRECTORS ABSENT: DIRECTORS ABSTAIN: DIRECTORS of March, 1978, by the following roll Knauft, Lindow, Korn and Clodt None Wagner None -President./ ATTEST: (Z"z ej~e Secreta~ -2-