HomeMy WebLinkAbout1987-05-14 - Resolution No. 87-12RESOLUTION NO. 87-12
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE
YORBA LINDA WATER DISTRICT
REQUESTING DIRECTORS OF THE ORANGE COUNTY WATER DISTRICT
TO CONSIDER ALTERNATE FINANCING FOR PROPOSED
SIX-YEAR CAPITAL PROGRAM
WHEREAS, the Orange County Water District (OCWD) Budget Report for Fiscal Year
1987-88 proposes a six-year capital improvement program that totals
approximately $76 million and requires at least $33 million in additional
funds; and
WHEREAS, the OCWD is proposing to finance its capital program on a pay-as-you-go
basis utilizing current reserves, plus interest income and proposed
increases in the Capital and Water Charge components of the water
replenishment rate; and
WHEREAS, any increase in the replenishment rate reduces the Yorba Linda Water
District's ability to maximize local water production for its consumers; and
WHEREAS, an alternative to the pay-as-you-go basis of capital project financing is
long term debt financing; and
WHEREAS the advantages of long term debt financing are a leveling of debt service
over an extended period of time thereby enhancing water rate stability,
and a shifting of an appropriate portion of capital costs to future rate
payers who will also receive the benefits of the improvements.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba
Linda Water District does hereby request that the Orange County Water District Board of
Directors consider long term financing instead of the pay-as-you-go financing for the
proposed six-year capital improvement program.
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PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Yorba
Linda Water District on May 14, 1987.
DIRECTORS: YES: Sterling Fox, M. Roy Knauft, Jr.,
DIRECTORS: N0: None
DIRECTORS ABSENT: Paul R. Armstrong
Willaim R. Mills, Jr,Whit Cromwell
President
Yorba Linda Water District
ATTEST:
Secretary,
Yorba Linda Water District