HomeMy WebLinkAbout1989-07-27 - Resolution No. 89-26i •
RESOLUTION NO. 89-26
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE
YORBA LINDA WATER DISTRICT
SETTING POLICY OF FUTURE ANNEXATIONS
WHEREAS, the Yorba Linda Water District (hereinafter referred to as District) was
formed January 2, 1959, and presently exists pursuant to the County
Water District Law, Division 12 of the California Water Code; and
WHEREAS, domestic water, irrigation water and sanitary sewer facilities within the
District have been constructed for the benefit of land already within the
District's service area; and
WHEREAS, within the District's sphere of influence, as approved by the Local
Agency Formation Commission, there exists land which has not been
annexed to the District; and
WHEREAS, from time to time, property owners within the sphere of influence have
requested annexation to the District, and it is the desire of this Board of
Directors to set a policy concerning terms and conditions of annexation
which will permit the proposed annexations to go forward on a basis
which will be fair and equitable both to the property being annexed and
to the territory already incorporated within the boundaries of the District;
and
WHEREAS, after the passage of Proposition 13 in 1978, the District lost the ability to
set its property tax rate and levy a separate ad valorem property tax;
and
WHEREAS, legislation enacted following Proposition 13 has required the District to
negotiate with other taxing entities to receive a share of the 1 % property
tax collected within any annexing area; and
WHEREAS, the County of Orange has established a policy that special districts will
not receive a share of property tax from their new service annexations
and this District has been unsuccessful in attempting to negotiate any
modification of that County policy; and
WHEREAS, on October 9, 1986 the District's Board of Directors adopted Resolution
86-15 setting forth certain financial policies related to future
annexations; and
WHEREAS, the Board desires to establish general policies related water and sewer
service to future annexations, and amend the policies adopted by
Resolution 86-15.
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NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba
Linda Water District as follows:
SECTION 1. WATER SERVICE POLICIES RELATED TO ANNEXATIONS.
A. Water Availability: All future annexations to the District shall be based on
the principal that the present water system is designed and constructed to
provide adequate service to land already incorporated within the District. It
shall be the responsibility of the applicant requesting annexation to bear the
cost of any engineering studies required by the District to determine water
service availability to the proposed annexation.
B. Policy Related To Extension Of Water Facilities: All future
annexations to the District shall be based on the principal that the District
shall not be obligated to provide additional Production, Storage or
Transmission facilities, necessitated by such future annexations, for the
delivery of water from facilities owned and operated by the District unless the
Board finds that the District's interests will be served by participating in the
extension of such lines.
C . Annexation Criteria - Avoidance of Islands: An area proposed for
annexation shall not, after annexation, leave an unannexed area entirely
surrounded by area annexed to the District ("Island") unless the Board finds
that the District's interests will not be adversely affected by the existence of
such Island.
D. District Water Regulations Govern: In the event of annexation, the
sale and delivery of water by the District, and construction of water facilities
shall be subject to the Rules and Regulations for Rendition of Water Service
promulgated from time to time by the District.
E. No District Water Outside District: All informal and formal terms and
conditions of annexation shall contain the following provisions:
1. The sale and delivery of water by the District, and construction of water
facilities shall be subject to to the Rules and Regulations for Rendition
of Water Service promulgated from time to time by the District.
2. Except upon terms and conditions specifically approved by the Board,
water sold and delivered by the District shall not be used in any manner
which intentionally or avoidably results in the direct or indirect benefit of
areas outside the District.
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SECTION 2. SEWER SERVICE POLICIES RELATED TO ANNEXATIONS.
A. Sewer Availability: All future annexations to the District shall be based
on the principal that the present sewer system is designed and constructed
to service land already incorporated within the District. It shall be the
responsibility of the applicant requesting annexation to bear the cost of any
engineering studies required by the District to determine sewer service
availability to the proposed annexation.
B. Policy Related To Extension Of Sewer Lines: All future annexations
to the District shall be based on the principal that the District shall not be
obligated to extend and/or improve trunk or sub-trunk sewer facilities,
necessitated by such future annexations, unless the Board finds that the
District's interests will be served by participating in the extension and/or
improvement of such lines.
C. Annexation Criteria - Avoidance of Islands: An area proposed for
annexation shall not, after annexation, leave an unannexed area entirely
surrounded by area annexed to the District ("Island") unless the Board finds
that the District's interests will not be adversely affected by the existence of
such Island.
D. District Sewer Regulations Govern: In the event of annexation, the
land serviced by the District's sewer system and construction of sewer
facilities shall be subject to the Rules and Regulations for Rendition of
Sewer Service as promulgated from time to time by the District.
E. No District Sewer Outside District: All informal and formal terms and
conditions of annexation shall contain the following provisions:
1. The provisions of sewer service by the District and construction of
sewer facilities shall be subject to to the Rules and Regulations for
Rendition of Sewer Service promulgated from time to time by the
District.
2. Except upon terms and conditions specifically approved by the Board,
sewer service provided by the District shall not be used in any manner
which intentionally or avoidably results in the direct or indirect benefit of
areas outside the District.
SECTION 3. FINANCIAL POLICIES RELATED TO ANNEXATIONS.
A. Share of General Property Tax: All residential dwelling units and
commercial/industrial units within each annexation shall be subject to a fee
to be in lieu of a share of the post-Proposition 13 one percent (11%) general
property tax revenue. The additional annexation fee will be calculated by
estimating the probable District annual tax revenue by (1) estimating the fair
market value of the property following annexation and considering probable
land use for the property, and (2) multiplying the probable market value by
$0.03 per one hundred dollars probable market value. The annexation fee
will be a sum equal to the present worth of an income stream equal to the
probable District annual tax revenue over a period of forty (40) years.
B. Annexation Fee: The annexation fee for areas newly annexing to the
District shall be determined as follows:
All land within the newly annexing area receiving benefit from existing
capacity in thewestern service area water system shall be subject to a
fee per acre of annexed land. The amount per acre shall be equal to
the District equity per acre, which for purposes of this section shall be
determined by dividing the number representing the excess of the
District's Water Fund assets over liabilities, as shown on the latest
adopted Audit report, by the total acreage within the District's western
service area as determined by the General Manager as of the end of
the preceding fiscal year.
2. All land within the newly annexing area receiving benefit from existing
capacity in the water system improvements financed by Improvement
District No. 1 and/or 2 bonded indebtedness shall be required to pay
an amount equivalent to the aggregate amount of all taxes which would
have been assessed against such land had such land been a part of
the appropriate Improvement District since its formation.
3. The Annexation Fee for all land within the newly annexing area not
receiving benefit from capacity in existing water system improvements
may be entirely, or partially waived, in lieu of construction and donation
of Production, Storage and Transmission facilities based on a service
plan approved by the Board of Directors.
C. Processing Fee: The applicant shall deposit with the District an amount,
determined by the District, to cover the District's staff and legal cost of
processing each annexation. The total amount shall also include any other
related annexation fees imposed on the District by other agencies. The fee
may be waived in cases where the Board itself requests a small annexation
to prevent or close a "island" in the proposed annexation.
D. Cash Payment Required: All annexation fees identified in this section
shall be paid in full in cash.
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SECTION 4. RESCIND CONFLICTING RESOLUTIONS: That all conflicting
Resolutions and minute orders are hereby rescinded.
PASSED AND ADOPTED this 27th day of July, 1989 by the following called vote:
AYES: STERLING FOX,
NOES: 0
ABSENT:
ABSTAIN
ATTE
Secretary,
Yorba Linda Water Di
PAUL ARMSTRONG, WHIT CROMWELL, ARTHUR KORN,
ROY KNAUFT
-4~
President /
Yorba Linda Water District