BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Adopt Recommended Sponsorship of State Legislation: Santa Clara Valley Water District Act: Financing for Capital Projects; and Adopt Recommended Positions on Other Legislation Which May Require Urgent Consideration for a Position by the Board.
End
RECOMMENDATION:
Recommendation
A. Adopt a Position of "Sponsor" on: Santa Clara Valley Water District Act: Financing for Capital Projects; and
B. Direct staff to develop bill and seek a state legislator to author.
Body
SUMMARY:
Santa Clara Valley Water District Act: Financing for Capital Projects
Position Recommendation: Sponsor
Priority: 1
The Santa Clara Valley Water District Act (Chapter 1405 of the California Statutes of 1951) is the primary state law governing the Valley Water Board's authority and the agency's operations. This proposal for Valley Water-sponsored legislation would do the following.
1. Authorize Valley Water to issue general obligation bonds backed by ad valorem property taxes with voter approval and authorize revenue bonds backed by net revenues of the Water Utility Enterprise;
2. Address a sunset date of December 31, 2023, that applies to a Board member compensation limitation; and
3. Clean up certain provisions of the District Act to delete obsolete language and improve clarity for those implementing the Act and for the public.
Reduce the Cost of Borrowing for Capital Projects
Section 17 of the District Act limits the sources of revenue that may be used to pay bonds to the revenue proceeds derived from an annual tax or assessment, levied in compliance with other provisions of the District Act. This bill proposal would amend that section to allow bonds to be paid by the revenue proceeds from an ad valorem property tax which would also require approval by voters (general obligation bonds). In addition, this bill would create a new section of the District Act that would exempt Valley Water from provisions of the Revenue Bond Law of 1941, thereby...
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