HomeMy WebLinkAbout92-23 - Enterprise Special District Tax RevenuesRESOLUTION NO. 92 -23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH OPPOSING GOVERNOR'S PROPOSAL TO
ELIMINATE PROPERTY TAX REVENUES FOR ENTERPRISE
SPECIAL DISTRICTS
• WHEREAS, the County Sanitation Districts of Orange County are
enterprise special districts providing wastewater management for 2,100,000
people and commerce in metropolitan Orange County; and
WHEREAS, said wastewater management services are essential, non -
discretionary and provided solely for the purpose of protecting the public health
and safety and the environment; and
WHEREAS, the methods and manner of providing said wastewater
management services are dictated by federal, state and regional statutory and
regulatory requirements; and
WHEREAS, through sound fiscal management the County Sanitation
Districts of Orange County have been able to provide said wastewater
management services to its domestic, commercial and industrial users in a
most cost - effective manner; and
WHEREAS, pursuant to applicable federal, state and local laws and
regulations, a portion of the Districts' wastewater management services,
including debt retirement, are financed by real property tax revenues; and
WHEREAS, the Governor's 1992 -93 Fiscal Year Budget proposes to shift
$347 million of annual local property tax revenue from approximately 1500
enterprise special districts, including the County Sanitation Districts of Orange
County, to school districts to meet funding requirements prescribed by
Proposition 98; and
WHEREAS, the Governor's proposal to eliminate enterprise special
districts annual property tax revenues and shift said revenues to school
districts would cause the County Sanitation Districts of Orange County rate
payers' annual cost for wastewater management services to increase an average
of 70 %, and as much as 129 %, to make up for the $35,132,000 elimination of
Districts' annual property tax revenues based on the 1991 -92 fiscal year
budget; and
• WHEREAS, the cost of wastewater management services for County
Sanitation Districts of Orange County rate payers in future years will increase
even further as a result of the Governor's proposal to eliminate the Districts'
property tax revenues, because of otherwise anticipated annual tax revenue
increases; and
WHEREAS, the Governor's proposal could affect bond ratings for
enterprise special districts and cost millions in additional interest costs at a
time when many already are facing financial challenges due to California's
economic downturn, and could seriously impair the ability of enterprise special
districts to provide sorely needed infrastructure expansions and improvements;
and
• WHEREAS, the Governor's proposal would place an undue financial
hardship on already stressed local economies and citizenry; and
•
WHEREAS, the Governor's proposal to eliminate enterprise special
district annual property tax revenues and shift said revenues to school districts
is an unacceptable scheme to balance the budget of the State of California;
represents a tax increase, approvable only by the affected voters; and, in the
case of the County Sanitation Districts of Orange County, effectively amounts
to inappropriate financing of schools via sewer use fees.
NOW, THEREFORE, BE IT RESOLVED that for the reasons herein before
enumerated that the City Council of the City of Newport Beach does hereby
express their strong opposition to the Governor's proposal to eliminate
enterprise special districts annual property tax revenues.
BE IT FURTHER RESOLVED that the City Council of the City of Newport
Beach supports efforts to find more equitable, alternative means of funding
schools as prescribed by Proposition 98.
BE IT FURTHER RESOLVED that a copy of this resolution be forwarded
to the Governor, members of the Orange County Delegation to the California
Legislature, appropriate Committees of the California Legislature, and others as
deemed appropriate.
ADOPTED this 23rd day of March , 1992.
MAYOR
ATTEST: