Financial- Standard and Poor's (1-2 Files)

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-~~ NOTE 18 - COMMITMENTS AND CONTINGENCIES (CONTINUED): In comection with the solid waste incinention project, the County 6as agroed to pcovide 145,000 tons of acxptable waste to t6e plaat aich year. ?he County seds waste dispostl rates and operatea d~e '~ate Louse' that is used to determine the charges for wlid waste dumping based on the weight and type of wa:te. 11~e County is obli~ated w set aolid waate disposal fees tufficieat W cover required payments to the contractor includin~ the debt service en the bouds aod t6e operatiag wcpeases of the facility as defined ia t6e o~tcact, less any nwenua acxnrod by tlu operawr from electricity geaenti~ aod the sale of eecondary materiais rxra:ovei~ed from the plant. ?6e .County aui iucur a pmdty. as defined ia the eontra~ct, if it fails to da~iva the required tonnage of solid waste. ?he penalty is.equal w~a mar~iotl increase in operating oosts caused by auch deficieacy. The voat to tlre County related to the plmt ia 5353,083 pet mo~h at June 30, 1993. Mrt the amamt is adjustable based on an inde~c. Such coat is included in the acoounts of tbe Solid Waste Fund, an Enterprise Fund.. To ass~re the oonhactor's oompliaaoe witL the contract, the Couaty ~s beao =r~mted a first mort~a~e an the plant and related P~~Y. and sucl~ propaty has beea pladged as sxnrity to sxnre the bond d~li~atioo of dre oontractor. On June 30, 1993 all aPP~Priations lapsed. The County inteads W honor c~srtain purch~ss ordeta, which were issued during 5scsl yar 1992-93, and are inclnded in the adopted budget for fiscal yar 1993-94. At June 30. 1993, tbae puz+chsae orders are summari~ed as follows: G~eral Fund Speciil Revenue Funds: Special Jwenile Pubiic Worlcs Meatal Health Health Servixs Dog Control Total S 90,104 S 467 17,686 3,729 300 44.105 66.287 On November 6, 1990. the voters of tl~e Stste of Ongoa approved aa amume4dment W tbe state coastitution W limit the total taxes snd ~overament charges on a prnperty. basai on the property's mark~ value. 'T6a limitstioa of propeioty taaes is w be p6ased in over five years as sbown in the following table. At tbe end of t6e five year pha~o-in, tha ameadmeat limits total school taxes aad charges w 55.00 per 51.000 of e~ch P~P~~Y's reat madc~ value, and toW aoasebool taxes aral c6u~es to 510.00 per 51,000. ~ During the phase-in, the limits aro: TAX LIMIT PHASE-IN for each S 1,000 of property's value FISCAL SCHOOL NONSCHOOL YEAR TA TAXES TOTAL 1991-92 S 15.00 S 10.00 ~ S 25.00 1992-93 12.50 10.00 22.50 1993•94 10.00 10.00 20.00 1994-95 7.50 10.00 17.50 1995-96 5.00 10.00 15.00 The County is currently evaluating the effcct of the limitation on its operations and secvioes. The fieancisl impact is aot determinable at the present time. . . 27 _