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HomeMy WebLinkAboutReso 82-205 - Approving official statement - Upper Churn Creek Sewer Assessment District No. 1980-7RESOLUTION NO. S'C RESOLUTION APPROVING OFFICIAL STATEMENT UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT NO. 1980-7 The City Council of the City of Redding resolves: 1. An Official Statement containing material information concerning the proposed bond issue, the proposed improvement, and the assessment district has been prepared for the City. This Council approves the Official Statement... 2. The City Council sets 2:00 p.m. on Monday, December 6, 1982, in the Corporate Agency Conference Room of Bank of America, Twenty-first Floor, Suite 2180, 555 California Street, San Francisco, California 94104, as the time and place for receipt of bids for the purchase of improvement bonds in Upper Churn Creek Sewer Assessment District No. 1980-7, City of Redding, Shasta County, California. A Notice Inviting Bids for Bond Purchase has been prepared for the City. This Council approves the Notice and directs the City Clerk to publish the Notice once in a newspaper of general circulation within the City. 3. STURGIS, NESS, BRUNSELL & SPERRY a professional corporation, Special'Bond Counsel for the City, is authorized to distribute the Notice and the Official Statement to secure competitive bidding. 4. The Notice and the Official Statement are attached to this resolution and made a part of it. Oo _01NQd h I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Redding, Shasta County, California, at a regular meeting thereof, held on the 15th day of November, 1982, by the following vote, to wit: AYES: Councilmembers Demsher, Fulton, Pugh, and Gard NOES: Councilmembers None ABSENT: Councilmembers Kirkpatrick ETHEL A. NICHOLS, City Clerk, City of Redding, Shasta County, California -2- OFFICIAL STATEMENT City ®f Redding _Shasta County, California UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT NO. 1980-7 (not to exceed) $2,579,167.90 - (Improvement Bond Act of 1915) Bids to be received at 2 p.m. on Monday, December 6, 1982 at the Corporate Agency Conference Room of Bank of America, Twenty—First Floor, Suite 2180, 555 California Street, San Francisco, California 94104 Bond Delivery: December 20,1982 Gas- � CITY OF REDDING Shasta County, California Upper Churn Creek Sewer Assessment District No. 1980-7 CITY COUNCIL Barbara A. Gard, Mayor Donald M. Demsher Lee D. Fulton, M.D. Howard D. Kirkpatrick, Councilmember Archer F. Pugh, Councilmember CITY STAFF William M. Brickwood, City Manager Ethel A. Nichols, City Clerk Beverly J. Cassaday, City Treasurer Randall A. Hays, City Attorney Robert E. Courtney, Assistant City Manager and Director of Finance. Carl H. Arness, Director of Public Works PROFESSIONAL SERVICES Bank of America, N.T. C S.A., San Francisco, Paying Agent Sharrah—Nolte and Associates, Red Bluff, Consulting Engineer John Vande Pol C Associates, Lafayette, Financing Consultant Sturgis, Ness, Brunsell & Sperry, Emeryville, .Bond Counsel The purpose of this Official Statement is to set forth information concerning the Upper Churn.Creek Sewer Assessment District Bonds. This Official Statement contains statements which are based upon estimates, forecasts and matters of opinion, and such statements are intended solely as such and not as representations of fact. A11 sum— maries of the statutes, resolutions or reports contained herein are made subject to all the provisions of said documents, and such sum— maries do not purport to be complete statements of said documents. This Official Statement is not to be construed as a contract with the purchasers of any of the Upper Churn Creek Sewer Assessment District Bonds. Bond Counsel's engagement in the review of this Official Statement has been limited to reviewing the statements of law and legal conclusions set forth herein relating to the Upper Churn Creek Sewer Assessment District Bonds. THE DATE OF THIS OFFICIAL STATEMENT IS NOVEMBER 1, 1982 ri NOTICE INVITING BIDS NOS 1 to 6 OFFICIAL STATEMENT Introduction 1-1 The Bonds 1-1 THE PROJECT AND THE ASSESSMENT DISTRICT The Project 2-1 Project Costs 2-1 Method Assessment 2-2 The Engineer 2-2 The Assessment District 2-2 Public Facilities and Services 2-4 Distrist Appraisal 2-4 Tax Delinquency Data 2-5 Prior Debt Data 2-5 Major District Landowners/Developers 2-6 Redding Housing Supply/Vacancy Characteristics 2-7 City Building Statistics 2-7 Finished Lot Survey 2-7 Earthquake Faults and Volcanoes 2-8 CITY AND FINANCIAL DATA City Government - General 3-1 Assessed Valuations, Secured Tax Levies 4-1 and Delinquencies 3-2 Combined Appropriations and Expenditures 3-3 Revenues and Fund Balances 3-4 Expenditures and Encumbrances 3-6 General Fund Revenues and Transfers 3-8 Utility System Rates and Collections 3-10 Special Assessment Collections 3-12 Ratio of Net General Bonded Debt 3-13 Property Value, Construction, and Bank Deposits 3-14 CHARACTERISTICS OF THE REDDING AREA Geography - Climate 4-1 Population 4-1 Economic Base 4-1 Growth Pattern 4-2 Recreation 4-2 Employment 4-3 Industrial -Commercial Development Programs 4-3 C� • NOTICE INVITING BIDS FOR BOND PURCHASE UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT NO. 1980-7 CITY OF REDDING, SHASTA COUNTY, CALIFORNIA Notice is hereby given that the City C1erk of the City of Redding, Shasta County, California, will receive sealed bids for the purchase of bonds to be issued by the City of Redding for Upper Churn Creek Sewer Assessment District No. 1980-7. Bids must be submitted not later than 2:00 P.M. on December 6, 1982, at the Corporate Agency Conference Room of Bank of America, Twenty—first floor, Suite 2180, 555 California Street, San Francisco, California 94104. The bids will be referred to the City Council for consideration at its meeting on the same day. THE BONDS 1. PURPOSE OF THE ISSUE. The bonds are being issued for the purpose of financing construction of a system of trunk sewers and laterals, acquisi— tion of rights of way, and correlated facilities and services. 2. AUTHORITY FOR ISSUANCE. These bonds are authorized to be issued under the provisions of the Improvement Bond Act of 1915 of the State .of California, after special assessment.proceedings taken by the City Council under the provisions of the Municipal Improvement Act of 1913 of the State of California. The proceedings were initiated by Resolution of Intention No. 81-80, adopted by the City Council on May 4, 1981. 3. AMOU14T OF ISSUE. The total amount of bonds to be issued for this as— sessment district is not to exceed $2,579,167.90, which is the total amount of assessments levied. Following expiration of the cash payment period, on December 6, 1982, the final amount of the bonds will be reduced to an amount equal to the unpaid assessments. 4. DATE OF BONDS. The bonds will be dated December 15, 1982• 5. DENOMINATION A14D MATURITY SCHEDULE. The bonds will be in $5,000 denomi— nations enomi— nations except Bond No. 1. The bonds w i 1 1 mature as set forth in one of the following maturity schedules, which are sample schedules based on the assessments levied SCHEDULE 1 SCHEDULE 2 DATE OF MATURITY ANNUAL AMOUNT ANNUAL AMOUNT 1984 $ 74,167.90 $ 39,167.90 1985 90,000.00 40,000.00 1986 100,000.00 45,000.00 1987 110,000.00 50,000.00 1988 125,000.00 55,000.00 1989 135,000.00 60,000.00 1990 145,000.00 70,000.00 NoS 1 $2,579,167.90 $2,579,167.90 6. INTEREST. Each bond will bear interest from its date at a rate not to exceed twelve percent (12%) per annum. Each bond shall have coupons attached representing semiannual interest. The first coupon on each bond will represent interest from the date of the bond until January 2, 1984, and each subsequent coupon will represent interest to the next July 2 or January 2, as the case may be, until the maturity date of the bond. See also Paragraph 20 below respecting specification of interest rates for bidding purposes. 7. PAYMENT. Both principal and interest on this issue are payable in lawful money of the United States at the Bank of America National Trust and Savings Association, Corporate Agency Division, Bank of America Center, P.O. Box 37000, San Francisco, California 94137- 8. BEARER BONDS. The bonds will be issued as negotiable instruments payable to bearer. Unless thereafter registered, title to each bond may be passed by physical delivery. Any bond may be registered as to both principal and interest. Any registered bond may be transferred, deregis— tered, or reregistered at the expense of the bondholder. 9. ADVANCE OF MATURITY. The issuer at its option may advance the maturi— ty of any bond to the next interest payment date following the publication of a sixty—day notice of call, and the manner of selection of bonds for retirement shall be that prescribed by the Improvement Bond Act of 1915• Upon call, the bondholder shall receive interest to the date of call, the principal of the bond and a redemption premium in the amount of five percent (5%) of the principal. 10. LIMITED OBLIGATION. Bonds issued under the provisions of the Improvement Bond Act of 1915 of the State of California are limited obli— gation bonds. These bonds are not a general obligation of the issuer, and the ful 1 faith and credit of the issuer is not pledged to the payment of either principal or interest of the bonds. Neither these bonds nor the installment obligations on account of unpaid assessments are a personal obl i gat i on of the owner or owners of the respective parcels which have NoS 2 1991 160,000.00 80,000.00 1992 175,000.00 90,000.00 1993 190,000.00 100,000.00 1994 205,000.00 110,000.00 1995 225,000.00 125,000.00 1996 250,000.00 14o,000.00 1997 280,000.00 155,000.00 1998 315,000.00 175,000.00 1999 195,000.00 2000 220,000.00 2001 245,000.00 2002 275,000.00 2003 310,000.00 $2,579,167.90 $2,579,167.90 6. INTEREST. Each bond will bear interest from its date at a rate not to exceed twelve percent (12%) per annum. Each bond shall have coupons attached representing semiannual interest. The first coupon on each bond will represent interest from the date of the bond until January 2, 1984, and each subsequent coupon will represent interest to the next July 2 or January 2, as the case may be, until the maturity date of the bond. See also Paragraph 20 below respecting specification of interest rates for bidding purposes. 7. PAYMENT. Both principal and interest on this issue are payable in lawful money of the United States at the Bank of America National Trust and Savings Association, Corporate Agency Division, Bank of America Center, P.O. Box 37000, San Francisco, California 94137- 8. BEARER BONDS. The bonds will be issued as negotiable instruments payable to bearer. Unless thereafter registered, title to each bond may be passed by physical delivery. Any bond may be registered as to both principal and interest. Any registered bond may be transferred, deregis— tered, or reregistered at the expense of the bondholder. 9. ADVANCE OF MATURITY. The issuer at its option may advance the maturi— ty of any bond to the next interest payment date following the publication of a sixty—day notice of call, and the manner of selection of bonds for retirement shall be that prescribed by the Improvement Bond Act of 1915• Upon call, the bondholder shall receive interest to the date of call, the principal of the bond and a redemption premium in the amount of five percent (5%) of the principal. 10. LIMITED OBLIGATION. Bonds issued under the provisions of the Improvement Bond Act of 1915 of the State of California are limited obli— gation bonds. These bonds are not a general obligation of the issuer, and the ful 1 faith and credit of the issuer is not pledged to the payment of either principal or interest of the bonds. Neither these bonds nor the installment obligations on account of unpaid assessments are a personal obl i gat i on of the owner or owners of the respective parcels which have NoS 2 • i been assessed in these proceedings. The obligation of the issuer is strictly limited by the specific provisions of the Improvement Bond Act of 1915• Furthermore, performance by the City of the limited obligation pre— scribed by said 1915 Act provisions has been affected by the adoption on June 6, 1978, of Proposition 13 (the Jarvis—Gann Initiative), which added Article XIIIA to the California Constitution, and by subsequent enactments of the California State Legislature to implement Article XIIIA. 11. SECURITY. These bonds are secured by assessments levied against the several parcels of property in Upper Churn Creek Sewer Assessment District No. 1980-7, City of Redding, Shasta County, California. Principal and interest installments of the assessments are collected annually, as a separately stated item on the tax roll on which general taxes for real property are collected. These installments are deposited in a bond re— demption fund, which constitutes a trust fund for payment of bond princi— pal and interest. Each unpaid special assessment constitutes a lien on the specific parcel of property against which the assessment was levied. The lien is subordinate to all unpaid fixed special assessments previously levied, has priority over any fixed special assessments which may subsequently be 1 ev i ed, and has par i ty w i th the 1 i en for property taxes. A 1 i st of the assessments levied is set forth as Exhibit A of the Official Statement for this bond issue. The annual installments are payable and become delinquent at the same time and in the same proportionate amounts, bear the same proportionate penalties and interest, and are subject to the same provisions for sale and redemption as general taxes. The annual installments are further subject to judicial foreclosure proceedings in the event of delinquency. 12. ADDITIONAL SECURITY. If any property owner fails to pay the annual installment of a special assessment when due, the property is sold in the same manner as for delinquency on the payment of property taxes. Under the provisions of the 1915 Act, the City is obligated to purchase the property at the tax sale and, as an incident to such purchase, to transfer into the bond redemption fund the amount of the delinquent installments. The City's obligation to make the transfer continues for each year until either the delinquencies are redeemed or the property is sold for cash to a third party. For the purpose of making the required transfers, the City will establish a reserve fund equal to maximum annual debt service on the amount of the unpaid assessments. The 1915 Act provides that in the event insufficient monies are available to make the required transfers, the City is obligated to include in its next annual property tax levy an amount sufficient to make the transfers, but not to exceed $.10 per $100 assessed valuation in any year. NoS 3 0 • However, in the opinion of counsel, the legal authority for such special tax levy has been abrogated by the adoption of Article XIIIA of the California Constitution and the subsequent enactments of the California State Legislature to implement Article XIIIA, with the result that, under present California law the City has no legal authority to levy such a special ad valorem property tax. In addition to the foregoing, the City has made a covenant on behalf of the bondholders to initiate judicial foreclosure proceedings on any delinquency within one hundred twenty (120)days of the date of such delin— quency. For description of financial and economic conditions related to the Project and the City, see, respectively, the sections in the Official Statement entitled "The Project and the Assessment District" and "City Financial Data" and "Characteristics of the Redding Area." 13. LEGAL OPINION. The legal opinion of Sturgis, Ness, Brunsell & Sperry, a professional corporation, Suite 1150, Watergate Tower, 1900 Powell Street, Box 8808, Emeryvill.e, California 94662, approving the validity of the bond issue will be furnished without charge to the suc— cessful bidder, and will be printed on the bonds. This law firm has been retained by the issuer as bond counsel on a contingent fee payable solely from the proceeds of the bond issue. 14. TAX EXEMPTION. In the opinion of bond counsel, interest on the bonds is exempt from all federal income taxes and from State of California personal income taxes under existing statutes, regulations, rulings and court decisions. If the income received by private holders from bonds of the same type shall have been declared taxable under federal income tax authority or official ruling (which ruling is followed by the Internal Revenue Service) or by decision of any federal court, the purchaser of the bonds shall have the option, before tender of the bonds, to cancel the purchase. 15. ARBITRAGE. The issuer will furnish to the purchaser, at the time of bond delivery, a certificate that the bonds are not arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code. 16. RAT I NG. The issuer has not sought a rating of this issue from any bond rating agency. 17. LITIGATION. There is no pending litigation contesting the validity of the assessments or the bonds of this issue. The 30—day period pre— scribed by Section 10400 of the California Streets and Highways Code for the filing of any such litigation will expire before the award of the bonds. The successful bidder will be furnished a standard Signature and No—Litigation Certificate. THE BIDDING 18. PRICE. Bidders must specify the price at which they propose to pur— chase the issue. Bidders are requested to specify the price as a percen— NoS 4 tage of the par value of the issue, but bids specifying a dollar price will be accepted. 19. MINIMUM PRICE. Bids are requested, but not required, for both Sche— dules. Bids must be for not less than ninety—seven percent (97%) of the par value of Schedule 1 and ninety—five percent (95%) of Schedule 2. Any bid for less than these respective amounts of the par value will be rejected. 20. SPECIFICATION OF RATES. Bidders must specify the interest rate which bonds of each maturity date shall bear. Al 1 bonds maturing on the same date must bear the same and only one rate of interest, but different rates of interest may be bid for bonds maturing on different dates. Rates specified must equal or exceed the rate for bonds maturing in the immediately preceding year beginning with the 1991 maturity for Schedule 1, and the 1995 maturity for Schedule 2. The difference between the highest and lowest rates bid may not exceed two percent (2%). The inte— rest payable on any bond on any interest payment date may be represented by only one coupon. Each interest rate must be specified as a multiple of 1/40 of one percent (.025%) per annum. 21. BOND CALCULATION. Each bid w i 11 be calculated on the basis of its net interest cost. Net interest cost is the amount determined by adding the amount of bond discount to, or subtracting the amount of bond premium from, the total coupon interest payable on all bonds over the life of the issue, with adjustment for the factor of time of payment or accrual. In calculating interest, the calendar year will be treated as having 360 days and each calendar month, 30 days. Bidders are requested, but not required, to state in their bids the net interest cost or net interest rate, or both. This statement will be treated as informational only and will not affect the calculation of bids or award of the bonds. Award of the bonds, if made, will be made following selection of a schedule by the City to the bidder offering to purchase the bonds at the lowest net interest cost to the issuer. 22. FORM OF B I D. Al 1 b i ds must be uncond i t i onal and for not less than all of the bonds in this issue. Each bidder must agree to pay accrued interest from the date of the bonds to the date of delivery. Bids must be enclosed in a sealed envelope, addressed to the City Clerk of the City of Redding, and marked "Bid for Bonds, Upper Churn Creek Sewer Assessment District No. 1980-7." 23. BID CHECK. Each bid must be accompanied by a certified or cashier's check in the amount of $20,000 as a bid guarantee. All checks, except that of the successful bidder, will be returned promptly after award. The check of the successful bidder will be negotiated and its amount will be deducted from the amount due upon the delivery of the bonds.. No interest will be paid upon the deposit made by any bidder. NoS 5 26. DELIVERY. Bonds, in temporary or definitive form, shall be delivered on their date or as soon thereafter as they are ready for delivery, but in no event later than December 30, 1982. The purchaser shall have the right to cancel the purchase if the bonds are not tendered w i thin twent y—f i ve (25) days after the bid date. The delivery will be based on the amount remaining following the close of the cash collection period. The revised maturities will be scheduled, as nearly as practicable, to produce equalized annual payments of princi— pal and interest. The bonds will be delivered at the office of the City Treasurer, City of Redding, 760 Parkview Avenue, Redding, California, or at any other place mutually agreed on between the City Treasurer and the purchaser. Payment for the bonds must be made in funds immediately available to the issuer. Any expense in connection with providing immediately available funds, whether by transfer of Federal Reserve funds or otherwise, shall be paid by the purchaser. 27. COPIES OF OFFICIAL STATEMENT. The successful bidder will be fur— nished with 50 additional copies of the Official Statement without charge. DATED: November 15, 1982 ETHEL A. NICHOLS, City Clerk, City of Redding, Shasta County, California Pesons wishing further information may contact: Regarding the Project: John Sharrah or Virgil Weld, Sharrah—Nolte and Associates, 725 Jefferson Street, P.O. Box 1128, Red Bluff, California, 96080, or via (916) 529-2090• Regarding legal aspects of the assessment proceedings or the bond issue: Samuel A. Sperry, Sturgis, Ness, Brunsell 6 Sperry, a professional corporation, P.O. Box 8808, Emeryville, California 94662, or via ( 415 ) 652-7588. Regarding the City of Redding: Department of Pub 1 i c Works — ( Robert D. "Lefty" Hastings); Finance Department (Robert E. Courtney), 760 Parkview Avenue, Redding, California 96001, or via (916) 246-1151. Regarding the Official Statement: John Vande Pol S Associates, P.O. Box 1097, Lafayette, California 94549, or v i a (415) 284-5862. NoS 6 Figure 1 View of the assessment district looking south toward central Redding. The fairways of Gold Hills' Golf Course is in the southern half of the main portion of the district. The light colored area in the right center is a recently improved portion of the Mountain Lakes Industrial Park which is not being assessed. The area west of the dotted 1 i ne i s an area covered by refund agreements as noted i n the Official Statement. 11__-_1v.. 1-? .rte' : .v...A.;. OFFICIAL STATEMENT 1915 ACT IMPROVEMENT BONDS CITY OF REDDING UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT NO. 1980-7 INTRODUCTION . The City of Redding, California, is issuing local improvement bonds under the provisions of the Improvement Bond Act of 1915 of the State of California, in an amount not to exceed $2,579,167.90. These bonds, desig— nated Series No. 1980-7, will finance the installation and construction of approximately 19,000 feet of sanitary trunk sewer line together with appurtenant work and facilities, and acquisition of easements and rights of way as described in the section of this Official Statement entitled "The Project". The bonds represent special assessments levied by the City Council according to special benefits to land within the Upper Churn Creek Sewer Assessment District No. 1980-7, City of Redding, Shasta County, California, which was created for the project under the Municipal Improve— ment Act of 1913. This official statement presents material information concerning the bonds, the project and the assessment district. The official statement is deemed to include the Notice Inviting Bids for Bond Purchase as fully as if the Notice was set forth herein. THE BONDS 1. LIMITED OBLIGATION. Bonds issued under the Improvement Bond Act of 1915 are limited obligation bonds. The bonds are not a general obligation of the State of California, the City of Redding, or any other local entity, and the full faith and credit of the issuer is not pledged to the payment of bonds. Neither these bonds nor the installment obligations on account of unpaid assessments are a personal obligation of the owner or owners of the respective parcels which have been assessed in these pro— ceedings. Installments of the principal and interest on special assess— ments within the Upper Churn Creek Sewer Assessment District No. 1980-7, which are collected as described in Paragraph 5 below, are deposited in the bond redemption fund maintained by the issuer as a trust fund for the Series No. 1980-7 bondholders. These bonds and the interest on them are payable solely from this special fund. The phrase "bond redemption fund", as used in this official statement is a reference to this special fund. 2. DATE, DENOMINATION AND MATURITIES. The bonds will be dated December 15, 1982, and will be issued in denominations of $5,000, except Bond No. 1. A portion of the bond issue matures on July 2 of each year within a period up to 20 years, in accordance with the schedule selected at the time of the sale, commencing July 2, 1984. The bonds bear semiannual interest represented by coupons attached to each bond. Interest Coupon No. 1 will represent interest from the date of the bond, December 2, 1982, to January 2, 1984, and thereafter interest is payable on July 2 and January 2 until the maturity date of each bond. 3. ADVANCEMENT OF MATURITY. All bonds are callable before their normal maturity, on any interest payment date, after a 60—day published notice of cal 1 , and the manner of selection of bonds for retirement shall be that prescribed by the Improvement Bond Act of 1915- Upon call, the bondholder is entitled to accrued interest to the date of call and one hundred five percent (105%) of the bond principal. 4. REGISTRATION. All bonds are registrable as to both principal and interest and may thereafter be transferred, deregistered and reregistered at the expense of the bondholder. 5. COLLECTION OF THE PROPERTY TAX BILL. The installments of unpaid special assessments represented by these bonds, together with interest thereon, are collected as a separately stated item on the property tax bill for each specially assessed parcel within Upper Churn Creek Sewer Assessment District No. 1980-7. Installments of these special assessments are collected at the same time and in the same manner as general property taxes. 6. ISSUER'S TAX SALE REMEDY. One—half of each annual installment is delinquent if not paid on or before December 10 of each fiscal year; the second installment is delinquent after April 10. Delinquent installments bear an immediate penalty of ten percent ( 10%) and, if not sooner paid, begin to accrue a penalty of one and one—half (1-1/2%) per month on July 1 following the fiscal year of delinquency. After a five—year redemption period, the delinquent property may be sold by the tax collector and a prorata share of the proceeds deposited in the bond redemption fund and the general funds of the taxing and assessing agencies. Data on current and recent tax delinquencies in the assessment district are presented in the section of this Official Statement entitled "The Project and The Assessment District". See also Paragraph 7 and 8 below. 7. ISSUER'S JUDICIAL FORECLOSURE REMEDY. As a cumulative remedy, the issuer may begin a judicial foreclosure immediately after delinquency in any installment of a special assessment. A judicial foreclosure is insti— tuted in the Shasta County Superior Court and is conducted in the same manner as a judicial foreclosure on property delinquent in payments under a mortgage or deed of trust. After the issuer establ i shes the right to foreclose to the court's satisfaction, the court appoints a commissioner to conduct an auction sale of th.e property. (Section 8 provides further .. details on these matters). Following the sale, the issuer receives the amount due on account of delinquencies, plus attorney's fees and court costs, and the balance, if any, is held in trust by the court for the credit of the property owner. Like the tax sale, judicial foreclosure affects only delinquent assessment installments. The purchaser either at the tax sale or at a judicial foreclosure takes the property subject to future assessment installments. 1-2 8. COVENANT TO FORECLOSE. The City Council of the City of Redding, by resolution adopted November 1, 1982, has authorized a covenant for the benefit of Series No. 1980-7 bondholders, pursuant to Section 8830 of the California Streets and Highways Code, to commence and diligently prosecute a judicial foreclosure of the lien of delinquent assessment installments. The foreclosure proceedings shall be filed not later than one hundred twenty (120) days following the date of delinquency. This covenant constitutes an assurance to bondholders that the City will act quickly to minimize the periods of delinquency. In some circum— stances, particularly those involving the bankruptcy of a delinquent prop— erty owner, the tax sale or judicial foreclosure may be delayed. Such delays, if extended, could result in delays in payment of principal or interest to bondholders. 9. ISSUER'S OBLIGATION RE REDEMPTION FUND DEFICIENCIES. The amount of the annual installments of the several unpaid assessments, together with the interest thereon, is equal to the principal amount of bonds maturing the next succeeding July 2, together with the interest payable during that year on all outstanding bonds. Accordingly, delinquency in the payment of annual installments by any of the property owners w i l l result in a temporary def i c i ency in the bond redemption fund. In anticipation of this occurrence, the Improvement Bond Act of 1915 imposes a limited obligation upon the issuer, at the end of the fiscal year of such delinquency, to advance to the bond redemption fund the amount of the delinquencies. Any such advances as could be made would then be recovered by the issuer when the delinquent property owners redeem their delinquencies or when the issuer pursues its tax sale remedy or judicial foreclosure remedy, as described in Paragraphs 6 and 7 above, to the point of cash sale proceeds. The issuer's obligation to make advances to the bond redemption fund is strictly limited, however, to available funds not immediately needed. For the purpose of providing available funds for advancement to the bond redemption fund, the City has created the reserve fund described in Para— graph 11. Aside from monies in the reserve fund from time to time, the City of Redding can give no assurance that it will have avai l ab l e funds from which to make advances on account of delinquent installments. In fact, as the City adjusts its budgeting and appropriation procedures to meet the requirements of Articles X1 IIA and X1 IIB of the California Consti— tution (enacted in 1978 and 1979, respectively), it is less likely that the City will have such available funds. Other non—Constitutional factors also bear on this matter from time to time, inc1uding, amount other things, those which are unpredictable and largely or mostly beyond the issuer's control, such as future economic conditions, and State and Federal subven— tions, and several land development aspects as discussed in this Official Statement in the Section entitled "The Project and The Assessment Dis— trict". Details on Redding's financial status are in the section of this Official Statement entitled "City Financial Data". 10. REPEAL OF TEN—CENT LEVY. Section 8809 of said 1915 Act presently provides that, where sufficient funds are not available to the City of 1-3 Redding from which to make the required transfers, the City Council must 1 evy a spec i al tax c i ty—w i de at a rate of up to ten cents ( $0.10) per one hundred dollars ($100) of assessed valuation in order to obtain funds for the transfer. However, under the provisions of Section 2237 of the Revenue and Taxation Code (enacted by Section 27, Chapter 332, Statutes of 1978, effective June 30, 1978), the authority of local agencies in California (including the City of Redding) to levy and ad valorem property tax has been abrogated (with certain exceptions not applicable to this bond issue). Accordingly, in the opinion of counsel, Section 8809 has been repealed by implication, and no investor in the subject bonds should rely on either the authority or the duty of the issuer to levy an ad valorem tax to provide "available funds". 11. RESERVE FUND. Out of the proceeds of assessments levied, the City Council will set aside a reserve fund in the amount equal to maximum annual bond service. Th i s f and w i 1 1 be used to make temporary advances to the bond redemption fund when made necessary by delinquencies in the payment of assessment installments. Advances from the reserve fund will be restored to that fund upon redemption or auction sale of the delinquent property. When the reserve fund, together with its interest accruals, is sufficient to pay all remaining principal and interest on the bond issue, whether by advance retirement or otherwise, the reserve fund will be used for this purpose and the balance of the special assessments will be cancelled. Prior to that time, the City Treasurer is required to apply the fund's interest accruals to annual assessments to the extent necessary to prevent the amount of the reserve fund from exceeding U.S. Treasury arbitrage limitations. 12. INSTALLMENTS NOT A PERSONAL OBLIGATION. Exhibit A to this official statement is a table of the assessment parcels, showing the amount of the assessments levied and unpaid in the subject assessment proceedings, as well as the property tax valuations established for the 1981-82 property tax roll. Under the Municipal Improvement Act of 1913 and related provisions of the law, each of the unpaid assessments constitutes a fixed lien on the parcel assessed. However, an unpaid assessment does not constitute a personal indebtedness of respective owners of the parcel to which it applies. There is no assurance that the owners of any parcel will be financially able to pay the installments on their parcel or that they will pay such installments even though financially able to do so. 1-4 0 • THE PROJECT AND THE ASSESSiCNT DISTRICT The Project The Upper Churn Creek sewer project involves building approximately 19,000 feet of trunk sewers in a northwesterly arc from an existing City trunk sewer at the southern end of the District. The project will also include rights- of-way acquisition plus four lateral sewers dispersed through the District which is shown on the Redding and District Vicinity map, Figure 2. The trunk sewers will range in size between 27 and 18 inches, and the laterals range between 15 and 8 inches. Redding's recently constructed regional plant will process the flow. The project was initiated in Harley Eakins (assessment roll participation by the developers by Norman Levenson, owner of a Project Costs response to a request to the City for sewers by number 165), and soon obtained requests for of the Gold Hills project (described later) and 150 -acre parcel in the District, and others. Construction bids for the project were received from 10 firms October 14, 1982, and the winning bidder, Custom Rock Contractors, Klamath Falls, Oregon, designated. Table 2-1 (below) summarizes the estimated project costs. Table 2-1 CITY OF REDDING Upper Churn Creek Assessment District Estimated Project Costs Project Construction Rights -of -Way Contingencies Subtotal Incidental Expenses Bond Discount 10% Bond Reserve Fund 15% Total 2-1 $ 1,428,755.00 55,000.00 157,163.05 $ 1,640,918.05 293,457.87 257,916.79 386,875.19 $ 2,579,167.90 E Method of Assessment • Project costs for the District were spread on a basis of each parcel's estimated contribution to sewage flows in the system as reflected by the concept of household equivalents. The household equivalents concept and definition was formulated in connection with cost allocation studies conducted for Redding's Regional Sewerage System program. The household equivalents were allocated to each parcel's net area throughout the District on the basis of their land use designation in Redding's proposed General Plan for the area. Net acreage excludes land subject to 100 -year storm flooding or areas with slopes greater than 20%. The project costs were segregated into trunk line and lateral categories, with the trunkline costs distributed equally according to the household equivalent computations, while lateral costs to the specific parcels were distributed as related to each specific lateral. The Engineer John Sharrah of Sharrah-Nolte and Associates, Red Bluff, California, has served as the consulting engineer on the project since its inception, and will continue providing engineering services to various developers in the assessment district following completion of the project. In addition, he has served as the engineer for many of the subdivisions adjoining or nearby the District, as well as on projects distributed throughout the Redding area. Mr. Sharrah commenced a private practice for developers of subdivisions, shopping centers, and planned developments in 1965. Previously, he was employed by the City of Davis. The Assessment District The District is located in the northeastern sector of the Redding area, within the path of the predominant direction of growth. The District extends, generally, in a north -south direction along eastern side of Interstate 5, from which the District will be served directly by three Interchanges. These are, preceding northward, the 1-5 interchange with State Highway 299 (call East Lake Boulevard), also a freeway and the second largest interchange in Redding, the Twin View Boulevard interchange (4,000 feet north), and the Oasis Road - Old Oregon Trail interchange (7,500 feet north). In addition, major thoroughfares that will traverse portions of the District intersect with the interchange in the community of Pine Grove, about one mile north of the District, and the 1-5 State Highway 44 freeway interchange, Redding's largest, to the south, where Mt. Shasta Mall, Reddingts largest shopping center is located. The District covers about 2,100 gross acres and about 1,600 net assessable acres, which when fully developed, could contain residential, commercial and other uses that produced sewage flows equal to the amount expected from 6,200 single family homes. Churn Creek traverses the District in a generally northwest to southeast direction and has flows throughout most of the year. The terrain in the District is mostly gently sloping, although some portions have slopes in excess of 20%, and some flatland portions are subject to inundation by a 100 -year 2-2 mcuujnt3 ano u1JIKlul VIUINIIY MAP 2-3 frequency rain -storm. The steep slopes are classes as unbuildable and will be converted to greenbelt classification. Current Public Facilities and Services Major portions of the District are currently within the incorporated boundaries of the City of Redding and additional segments may annex in the future to obtain the advantages of City services and low utility rates. The table below summarizes the agencies expected to provide facilities and services to the respective city/county portions of the District. Services Fire Protection Police Protection Water Telephone Electricity High School [E Redding Department* Redding Department* City Department PT&T City Department Shasta Unified HSD Shasta County Fire Department County Sheriff, Highway Patrol** Bella Vista Water District Same PG&E Same *Both the City and County departments have mutual aid agreements with each other and with the Shasta College station located near the southern area of the District, and for brush and forest fire purposes, with the California Division of Forestry. Redding has a fire station adjoining the District in Mountain Lakes Industrial Park. A future fire station is proposed at the intersection of Oasis and Old Oregon Trail. **A California Highway Patrol Station Is located now at the Interstate 5 and Oasis Road interchange. Three elementary school districts have service areas in the District: Columbia School District serves the southeastern sector; Buckeye Elementary School District will serve areas largely on the west side of 1-5; and Shasta Lake Elementary School District covers the major portions of the District. District Appraisal A general valuation property analysis (i.e., rather than parcel by parcel) of the lands (i.e., excluding improvements) within the gross area of the District has been prepared by Charles W. Ryan, M.A.I., of Ryan/Associates, Redding. Mr. Ryan, prior to establishing his practice as an independent appraiser in 1976, served as a staff appraiser for Crocker California National Bank, the State Board of EqualizationtsDivision of Intercounty Equalization and as a senior appraiser in its Office of Appraisal Appeals, with statewide responsibilities. He is certified under the American Institute of Real Estate Appraisers continuing education program through 1983, and is qualified as an expert witness in eight counties. (The report is available for examination upon request.) 2-4 UPPER CHURN CREEK SEDER ASSESSMENT DISTRICT Assessment Roll and Related Parcel Data 1 Represents household equivalents. See text regarding assessment spread. 2 Delinquency retired by or before 10/20/82. AR -1 1911 Act 1981/82 Assessor's Tax Delinquency Bond Liens ValuationsStatus Years Asmnt Assessor's Total Total Assessment Improve- 1981/82 Prior to No. Parcel No. Owner Acres H.E. 1 Amount Land ments 4/30/82 Years Amount End 1. 72-230-05 BHS Investments 27.15 84 22,559.00 191,000 -- 2. 72-230-06 McHale 13.66 42 12,360.00 70,310 -- 74.62 3. 72-240-02 Owens 39.10 99 43,901.20 76,000 -- 413.42-2_ 4. 72-240-01 Tanem 39.80 78 25,395.24 23,410 -- 5. 72-270-16 Leonard 18.41 10 2,686.00 16,430 65,740 6. 72-260-08 BHS Investments 28.81 114 45,532.00 155,010 67,620 7. 72-260-07 BHS Investments 28.39 68 22,139.44 (included with No. 6) 8. 72-260-05 BHS Investments 6.65 23 6,176.00 47,000 -- 9. 72-260-06 McHale 28.49 68 30,703.74 15,300 4,100 213.34--.-, 10. 72-250-01 Easley. 40.00 90 14,651.10 36,020 -- 11. 72-260-04 Mallory .05 1 269.00 7,950 55,180 12. 72-280-14 Dolph .05 1 269.00 20,000 48,000 13. 72-280-15 McCoy 1.2 1 269.00 3,960 -- 14. 72-280-16 Melton 0.4 1 269.00 3,590 28,710 139.11 15. 72-280-36 Combs 1 269.00 4,510 1,650 16. 72-280-47 Weyler 1 269.00 3,590 21,950 17. 72-280-13 BHS Investments 1.6 14 3,760.00 13,520 15,600 18. 72-280-12 Bradley 1.0 2 537.00 21,000 36,000 2 19. 72-290-16 Jorgensen 0.6 1 269.00 5,610 8,900 159.56 20. 72-290-17 Ebert 0.7 2 537.00 4,030 10,120 -- 21. 72-280-29 Stephenson 1 269.00 10,200 30,600 22. 72-280-44 Coley 1 269.00 3,590 27,800 23. 72-280-25 Taylor 1 269.00 3,940 4,400 24. 72-290-18 Hanus 2 537.00 5,840 6,180 25. 72-280-55 Fruits 4 1,074.00 7,350 9,190 1 Represents household equivalents. See text regarding assessment spread. 2 Delinquency retired by or before 10/20/82. AR -1 The report prepared includes geographical and economic background data of a regional and area character; data on housing occupancy and costs in the Redding area; data on the labor force and characteristics; area population trends and projections; employment patterns; description of the District's location, zoning and utilities; the assessment roll's list of owners, acreage and assessed valuations; a listing of recent sales of parcels capable of comparative analysis; a "highest and best use" categorization of the District's lands, and map -related value estimates; recitation of 10 underlying assumptions and contingent conditions; the certificate of appraisal in conformance with professional standards; and further recitation of definitions, qualifications and experience, and restrictions upon disclosure and use. The lands in the various suburban residential areas were estimated to range in market values (October 1982 basis) between $4,000 and $10,000 per acre and to total $14,650,000. Areas subject to commercial use were estimated to average $35,000 per acre and to total $5,075,000. The industrial area within the District was estimated to average $45,000 per acre. Much of this area, however, has been exempted from District assessments, or is subject to reduced assessments, so that only a small fraction of the estimated $11,250,000 of these land values could be considered added to the prior amounts for a reasonable comparison with the bonded debt of the District. Tax Delinquency Data Exhibit A, the table containing the assessment roll and related parcel data, shows the amount of any June 30, 1982 tax delinquencies by parcel (plus totals) for the 1981/82 tax levy and, separately, delinquencies for prior years. Payments of these delinquencies between June 30 and October 19, 1982, and establishment of a plan with the county are also shown. Beginning with the 1981/82 fiscal year, Shasta County discontinued levying taxes on parcels having less than $1,000 net assessed valuation. The total 1981/82 tax levy in the District was $108,080.00, of which $10,149.95 (10.64%) was delinquent as of June 30. Of this amount, $3,493.44 was accounted for by one parcel which is subject to the provisions of Chapter 11 of the Bankruptcy Act. The data above was obtained from Western Title Insurance Company, Redding, by visual inspection of County records. Prior Debt Data Exhibit A, a table of the assessment roll plus related parcel data, shows nine of the 196 parcels have prior 1911 Act assessments outstanding, the amount remaining unpaid until the December 1982 installment, the number of years remaining to the final maturity, and that one parcel was delinquent in payments as of October 19, 1982. The data was obtained from Shasta County by Western Title Insurance Company, Redding. 2-5 UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT Assessment Roil and Related Parcel Data 1981/82 Assessor's Asmnt Assessor's Total Total Assessment Improve - No. Parcel No. Owner Acres H.E. 1 _ Amount Land ments 26. 72-280-42 Baird 0.2 1 269.00 8,480 -- 27. 72-280-03 Kelley 1 269.00 3,590 12,690 28. 72-280-56 Strughold 0.88 2 537.00 3,590 2,130 29. 72-280-01 Simmons 0.50 0 -0- -- -- 30. 72-290-33 Cherrington 0.30 2 537.00 10,200 40,800 31. 72-290-10 McKean 0.10 1 269.00 -- -- 32. 72-290-09 McKean 0.10 1 269.00 4,050 16,100 33. 72-290-08 Maynard 1 269.00 15,000 20,000 34. 72-290-14 Whitacre 1 269.00 13,150 7,980 35. 72-290-20 Cherrington 2.40 8 2,148.00 6,700 25,300 36. 72-290-32 Westlake 2.38 0 -0- 3,880 -- 37. 72-290-04 Ebert 2.69 2 537.00 6,740 17,900 38. 72-290-25 Ebert 1.70 2 537.00 4,940 11,580 39. 72-290-34 Tidmore 0.60 0 -0- 850 -- 40. 72-290-35 Redding Highlands 2.80 3 976.74 150000 -- 41. 72-300-10 Tidmore 1.30 4 1,302.32 9;900 30,950 42. 72-300-11 Tidmore 3.40 10 3,255.80 (included above) 43. 72-300-09 Redding Highlands 4.40 13 4,232.54 30,500 22,000 44. 72-300-07 Tidmore 2.20 3 976.74 3,440 -- 45. 72-310-05 Tidmore 0.15 0 -0- 12,240 29,070 46. 72-310-06 Redding Highlands 0.04 0 -0- -- -- 47. 72-310-08 Redding Highlands 17.90 46 14,976.68 107,500 75,000 48. 72-310-04 Staudt 2.20 2 651.16 7,710 1,100 49. 72-540-11 Seymer 9.40 13 4,232.50 41,610 166,460 50. 72-540-12 Martinez 6.40 17 5,534.86 14,850 35,010 1 Represents household equivalents. See text regarding assessment spread. Installment plan for payment has been instituted. AR -2 Tax Delinquency Status 1981/82 Prior 6/30/82 Years 141.27 1911 Act Bond Liens Years to Amount End UPPER CHURN CREEK SEWER ASSESSiKENT DISTRICT Assessment Roll and Related Parcel Data 1981/82 Assessor's Tax Delinquency Valuations Status Asmnt Assessor's Total Total Assessment Improve- 1981/82 Prior No. Parcel No. Owner Acres H.E. Amount Land ments_ 6/30/82 Years 51. 72-320-01 Sterni 19.00 57 9,279.03 32,000 -- 52. 72-320-08 Ease Iy 7.20 18 2,930.22 13,050 27,800 53. 72-320-03 Phillips 10.80 31 5,046.49 14,350 50,560 54. 72-320-02 Livengood 3.00 9 1,465.11 8,090 -- 55. 72-270-05 Nelson 1.10 9 2,417.00 4,030 -- 56. 72-280-31 Combs 0.52 4 1,074.00 2,690 26,440 57. 72-280-40 Combs 0.67 6 1,611.00 1,340 6,760 58. 72-430-05 Gidlund 0.60 5 1,627.90 1,080 -- 59. 72-430-06 Ebert 0.80 6 1,953.48 4,030 -- 60. 72-430-07 Holub 1.10 9 2,930.22 18,360 42,840 673.00 803.59 61. 72-350-14 Westlake 7.90 22 7,162.76 5,380 -- 204.23:3- 04.233- 62. 62. 72-130-03 Boyles 17.82 24 3,906.96 10,370 -- 63. 72-140-17 Boyles 8.60 15 2,441.85 9,830 -- 64. 72-140-16 Boyles 5.90 12 1,953.48 6,690 -- 65. 72-130-04 Duryee 10.00 20 3,255.80 19,970 -- 100.00 66. 72-350-13 Cutler 19.20 0 -0- 6,730 -- 67. 72-350-12 Johnson 29.60 51 16,604.58 53,140-- 4 68. 73-080-02 Keystone 1.00 2 325.58 20,000 -- 218.34 69. 73-090-15 Keystone Investments 39.40 91 29,627.28 300,000 -- 3,275.10 4 70. 73-090-09 Armour, et. al. 20.90 56 18,232.48 44,560 -- 486.46 71. 73-090-10 Armour, et. al. 20.30 60 19,534.80 44,560 -- 486.46 72. 73-180-26 Tabler 0.97 1 325.58 17,500 51,500 73. 73-180-25 Blanks 1.84 2 651.16 33,810 -- 370.72 669.08 74. 73-180-24 Gallotto 0.52 1 325.58 16,320 56,100 75. 73-180-28 Foley 1.22 3 976.74 18,000 56,500 1 Represents household equivalents. See text regarding assessment spread. Installment plan for payment has been instituted. 4 Delinquency repayment temporarily Impaired by Chapter 11 Bankruptcy status. AR -3 1911 Act Bond Liens Years to Amount End 1,024 2 i • UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT Assessment Roll and Related Parcel Data 1981/82 Assessorfs Tax Delinquency Valuations Status Asmnt Assessor's Total Total Assessment Improve- 1981/82 Prior No. Parcel No. Owner Acres B -,E,,1 Amount Land ments 6/30/82 Years 76. 73-080-01 Schipper 2.00 5 813.95 7,650 11,700 77. 73-090-12 Armour, et. al. 38.30 106 34,511.48 81,280 -- 78. 73-090-11 Armour, et. al. 30.70 80 26,046.40 65,140 -- 79. 73-090-13 Young 8.22 10 3,255.80 4,410 -- 80. 73-180-23 Young 1.36 0 -0- (included above) 81. 73-030-07 Westlake 4.70 23 7,488.34 7,870 -- 82. 73-030-08 Lopez 1.50 9 2,930.22 2,450 -- 83. 73-030-06 Westlake 1.30 8 2,604.64 2,140 -- 84. 73-020-11 Ostling 6.15 37 12,046.46 36,250 -- 85. 73-020-10 Wolford 4.69 28 9,116.24 (included above) 86. 73-020-09 Ostling 4.16 11 3,581.38 (included above) 87. 73-020-07 Gates 2.00 12 3,906.96 10,070 23,860 88. 73-020-06 Wentz 12.50 18 5,860.44 13,260 -- 89. 73-020-05 Wentz 5.50 41 13,348.78 5,830 -- 90. 73-090-06 Wentz 14.00 46 14,976.68 14,850 -- 91. 73-090-07 Wentz 104.10 339 145,600.98 131,290 -- 92. 73-090-02 Wentz 40.54 132 48,919.94 63,870 -- 93. 73-100-01 Wentz 160.00 521 367,204.49 672,500 100,910 94. 74-090-04 Evans 0.50 4 3,770.32 5,620 5,730 95. 74-090-05 Leong 2.48 12 8,475.92 11,010 187,780 96. 74-090-06 Robertson 1.00 6 4,592.36 5,050 23,530 97. 74-090-08 Hayes 4.80 16 13,663.79 19,470 -- 98. 74-090-09 Hayes 0.46 4 1,302.32 2,900 -- 99. 74-100-06 Adams 5.00 26 24,073.98 10,080 177,170 100. 74-100-07 Adams 3.10 25 8,139.50 30,300 -- Represents household equivalents. See text regarding assessment spread. Installment plan for payment has been instituted. AR -4 887.32 711.12 1911 Act Bond Liens Years to Amount End 233.10.-3 3- 67.27----- 0 - 67.27 • • .L Represents household equivalents. See text regarding assessment spread. 3 Installment plan for payment has been instituted. ,5- Refund agreements representing a potential 243.5 HE's are applicable to the holder of these assessments. AR -5 UPPER CHURN CREEK SEWER ASSESSVIENT DISTRICT Assessment Roll and Related Parcel Data 1911 Act 1981/82 Assessor's Tax Delinquency Bond Liens Valuations Status Years Asmnt No. Assessor's Parcel No. Owner Total Acres Total H.E. Assessment Amount Land Improve- dents_ 1981/82 Prior to 6 Years Amount End 101. 74-100-16 Lela 0.50 4 1,302.32 5,840 -- 296.28 102. 74-100-15 Vangas, Inc. 0.70 6 1,953.48 12,140 32,870 • 103. 74-100-09 Pearson 0.70 6 1,953.48 40,000 60,000 --- 104. 74-130-17 Anderson 1.80 14 4,558.12 28,650 27,450 105. 74-130-16 Duryee 0.80 6 1,953.48 5,840 -- 106. 74-130-15 Duryee 0.70 6 1,953.48 6,060 1,570 107. 74-130-35 Mitchell 1.13 9 2,930.22 17,650 37,520 693.98 840.54 108. 74-130-38 Harrison 0.50 4 976.74 3,980 21,840 109. 74-130-39 LaManna 1.36 11 3,581.38 100,000 169,000 110. 74-130-33 LaManna 0.52 4 1,302.32 18,220 -- 94.78 111. 74-130-02 Collier 0.80 6 1,953.48 8,220 -- 89.72 112. 74-130-26 Jones 2.10 11 3,581.38 14,970 -- 81.71 113. 74-130-37 Harrison 0.60 5 1,302.32 4,060 -- 114. 74-130-36 LaManna 0.40 3 976.74 20,000 -- 115. 74-140-03 Collier 0.20 2 651.16 -- -- 116. 74-140-02 Levenson 79.40 534 290,786.46 32,250 -- 117. 74-240-02 Lee 40.50 65 21,162.70 19,470 -- 118. 119. 74-240-01 74-110-11 Melchiors Eakens 8 Frank 40.50 7.80 78 56 25,395.24 42,704.53 18,390 29,260 -- -- • 120. 74-110-04 Eakens & Frank 0.90 7 2,279.06 9,110 -- 121. 74-110-10 Eakens & Frank 3.00 24 20,810.69 6,050 -- 122. 74-110-05 Atlantic Richfield 1.10 9 2,930.32 49,060 96,280 123. 74-110-09 Atlantic Richfield 0.40 3 976.74 14,630 -- 124. 74-110-08 Rainey 0.90 7 2,279.06 7,800 -- 125. 74-110-07 Eakens $ Frank 1.40 11 3,581.38 12,140 -- .L Represents household equivalents. See text regarding assessment spread. 3 Installment plan for payment has been instituted. ,5- Refund agreements representing a potential 243.5 HE's are applicable to the holder of these assessments. AR -5 UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT Assessment Roll and Related Parcel Data 1981/82 Assessor's Tax Delinquency Asmnt Assessor's Total Total Assessment Improve- 1981/82 Prior No. Parcel No. Owner Acres H f 1 'Amount Land ments 6/30/82 Years 126. 74-260-05 Eakens & Frank 1.00 8--- 2,604.64 8,640 -- 127. 74-260-04 Eakens $ Frank 1.00 8 2,604.64 8,300 -- 128. 74-260-03 Eakens 8 Frank 0.80 6 1,953.48 8,090 -- 129. 74-260-02 Eakens 8 Frank 0.80 6 1,953.48 7,620 -- 130. 74-260-01 Eakens $ Frank 0.80 6 1,953.48 7,620 -- 131. 74-120-05 Shaw 2.50 20 6,511.60 29,220 -- 158.12 132. 74-120-04 Chevron U.S.A. 1.00 8 2,604.64 72,060 63,950 133. 74-120-03 Harrison 1.00 8 2,604.64 41,610 10,400 134. 74-120-02 Ochinero 1.00 8 2,604.64 24,300 37,710 135. 74-120-01 State of California 1.00 8 2,604.64 -- -- 136. 74-150-1-6 Co1-1-ler -0-:40 3- -- 976.74 5,840 -- 63.74 137. 74-150-17 Segal 0.30 2 651.16 4,320 -- 138. 74-150-18 Segal 0.10 1 325.58 2,810 -- 139. 74-150-19 Segal 0.01 0 -0- (included above) 140. 74-150-41 Collier 0.02 0 -0- (included above) 141. 74-150-44 Collier 0.30 2 651.16 10,240 -- 111.78 142. 74-150-45 Segal 0.80 6 1,953.48 (included above) 143. 74-150-12 Rodriguez 0.60 5 2,098.20 13,310 46,810 144. 74-150-37 Cibula 0.10 1 419.64 (included above) 145. 74-150-13 Cibula 0.40 3 1,258.92 4,540 -- 146. 74-150-11 Sherman 0.20 3 1,258.92 3,810 -- 147. 74-150-09 Brockschmidt 0.50 4 1,678.56 14,280 16,320 167.03 148. 74-150-10 Cibula 0.20 2 839.28 2,470 -- 149. 74-150-43 Hart 5.22 42 17,624.88 47,610 -- 150. 74-150-08 Icardo 0.40 3 1,258.92 9,980 -- 1 Represents household equivalents. See text regarding assessment spread. AR -6 1911 Act Bond Liens Years to Amount End • 0 UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT Assessment Roll and Related Parcel Data Asmnt Assessor's Total No. Parcel No. Owner Acres 151. 74-150-07 Icardo 0.50 152. 74-150-06 Icardo 0.50 153. 74-150-05 Icardo 0.50 154. 74-150-04 Icardo 0.50 155. 74-150-03 Icardo 0.50 156. 74-150-02 Icardo 0.40 157. 74-150-01 Icardo 0.50 158. 74-160-07 Levenson 9.20 159. 74-160-08 Levenson 18.81 160. 74-160-03 Levenson 29.70 161. 74-230-05 Dot Bin, Inc. 0.70 162. 74-230-04 Dot Bin, Inc. 40.52 163. 74-230-03 Lee 20.20 164. 74-230-02 Tracy 20.20 165. 74-010-02 Eakens & Frank 155.60 166. 74-180-01 Eakens & Frank 15.40 167. 74-170-03 Rhoads 15.10 168. 74-180-03 Eakens d Frank 13.00 169. 74-180-06 Mix 1.40 170. 74-180-05 Husted 1.80 171. 74-180-04 Denison 1.80 172. 74-170-04 Rhoads 50.00 173. 74-180-07 Lefa 2.10 174. 74-180-08 Cluff 34.69 175. 74-220-16 Hopkins 7.55 Total H.E. 1 4 4 4 4 4 3 4 68 118 199 71 24 37 489 90 121 52 10 5 127 6 83 15 1981/82 Assessor's Valuations Assessment Improve - Amount Land ments 1,678.56 1,678.56 1,678.56 1,678.56 1,678.56 1,258.92 1,678.56 40,953.63 59,696.94 100,675.36 325.58 23,116.18 3,906.96 6,023.23 300,547.74 29,302.20 25,388.22 10,910.64 2,098.20 1,049.10 2,308.02 53,294.28 1,258.92 17,415.06 2,441.85 14,970 10,000 10,000 10,000 10,000 10,000 10,000 10,470 10,810 14,490 2,080 82,190 9,230 9,730 84,440 33,770 12,640 13,490 6,060 6,060 5,050 41,990 20,800 25,370 5,620 1 Represents household equivalents. See text regarding assessment spread. 2 Delinquency retired by or before 10/20/82. L Delinquent. AR -7 15,080 15,080 1911 Act Tax Delinquency Bond Liens Status Years 1981/82 Prior to 6/30/82 Years Amostnt end Ll 9,402 10 4,340 10 5,011 10 147.26 95.99 • 36.342 391.70 1,229.73 290.32 1,846 fi 10 UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT Assessment Roll and Related Parcel Data - Asmnt Assessor's 6,630 Total Total Assessment No. Parcel No. Owner Acres H•E. 1 Amount 176. 74-220-17 Hopkins 1.03 2 325.58 177. 74-220-09 Miller 7.30 14 2,279.06 178. 74-220-11 Perkins 19.69 39 6,348.81 179. 74-220-19 Kelly 0.33 0 -0- 180. 74-220-05 Molina 20.20 40 6,511.60 181. 74-220-21 Stewart 1.35 2 325.58 182. 74-220-14 Perkins 3.65 6 976.74 183. 74-210-04 Kent 9.87 19 3,093.01 184. 74-210-02 Franklin 41.70 80 13,023.20 185. 73-010-02 Parks 2.60 13 4,232.54 186. 73-010-03 Elrite 5.40 30 9,767.40 187. 73-010-06 Farley 51.90 266 86,604.28 188. 66-680-37 Baker 64.56 355 -0- 189. 66-680-33 Baker 21.93 83 27,023.14 190. 66-680-32 Baker 3.30 0 -0- 191. 66-680-31 Baker 42.17 247 -0- 192. 66-680-35 Baker 1.67 10 -0- 193. 66-680-34 Baker 1.33 8 -0- 194. 66-680-36 Baker 1.89 11 -0- 195. 66-680-54 Baker 35.82 133 43,302.14 196. 73-43-01 Ebert 2.90 4 1-342,32 Total 1981/82 Assessor's Valuations Improve - Land ments 830 15,080 6,630 -- 31,380 -- 61,000 -- 25,000 60,000 3,520 53,980 7,530 -- 29,380 -- 7,200 18,600 8,990 18,000 29,270 -- 1,676,200 -- 263,000 -- 263,000 -- 192,700 -- 31,400 -- 24,900 -- 35,500 8,090 -- Tax Delinquency Status 1981/82 Prior 6/30/82 Years WKV 1911 Act Bond Liens Years to Amount End 1,612 10 • 4,887 10 5,011 10 9,575 10 1 Represents household equivalents. See text regarding assessment spread. Z Total amount of 1981/82 levy delinquent as of June 30, 1982; reduced by $822.66 by October 19, 1982. Total levy paid as of June 30, 1982 was $97,930.05. $ Amount delinquent as of June 30, 1982, of which $942.15 was subject to an installment plan for redemption as of October 19, 1982. 0 0 • Major District Landowners/Developers The assessment roll Iists 196 parcels over which the $2,579,167.90 of assessments is spread. While there are over 155 separate ownerships in the District, 18 of these owners holding 55 parcels account for approximately 80% of the total project assessments. Six landowners have assessments ranging from $25,000 to $50,000, with assessments totaling nearly $200,000. Four owners fall in the $50,000 to $100,000 category, with total assessments of about $325,000. One has an assessment of about $100,000, and two have total assessments between $400,000 and $500,000, and one (Wentz) has total assessments of approximately $595,000. Mr. Wentz developed a small chain of supermarkets in the Redding metropolitan area which has been distributed to various other supermarket operators. During the mid -1960's, Mr. Wentz commenced development of a golf - course oriented community north of Redding known as Gold Hills. This initial development, along with surrounding lands, is now being transferred segmentally to "Rod" Rodriguez, owner of a series of, auto dealerships, and commercial and industrial properties in the Redding area. Dealerships include Chevrolet - Mazda, Lincoln-Mercury, Toyota -Volvo, Datsun -Subaru, and other auto -related outlets. He also owns a large industrial tract near Redding's airport for which development is planned when sewers become available plus a highly - regarded 11 -building office complex. The name of the firm that will handle the development of Gold Hills is Shasta Enterprises. The Gold Hills project is a planned community for approximately 1,600 dwel I ing units plus commercial and recreational facilities, chief of which is the 18 -hole golf course. Shasta County has adopted both the specific plan and the environmental impact reports for the project and approved a tentative map for the first 566 -unit segment. The developers currently plan to proceed with a 188 -unit Phase I following availability of the District's system. Sharrah- Nolte will serve as engineers for this development phase. The second largest District owner is Norman Levenson of Los Angeles. Mr. Levenson, who has owned the property for about 15 years, has preliminary plans for a 143 -acre project involving a shopping center, motels, offices and residences which would require modification of the current master plan for the area. Mr. Levenson also assumed the costs otherwise spreadable to a group of existing residences in the District in return for a refund agreement applicable to these parcels upon connection at a later date. A third. large District ownership is referenced as Eakens & Frank on the assessment roll, Exhibit A. The partners in this holding have heretofore been active in the area's development only as sole proprietors or with other partners. Each is reported to have substantial other holdings and development experience in the area. Tentative maps have been filed and approved on two other parcels in the District, for which there are no known current plans for development. 2-6 Redding Housing Supply/Vacancy Characteristics Redding became designated as a standard metropolitan statistical area for census data compilation and analysis purposes in the 1980 dicennial count. Such a designation then qualifies the area for subsequent studies by other Federal agencies. The Federal Home Loan Bank of San Francisco prepares housing vacancy surveys for certain SMSA's in the Eleventh District and did so for Redding in July, 1982. The survey data is collected for urban mail carrier routes under supervision of local postmasters. The data below represent the vacancy percent of the total units surveyed. The single family class does not include mobile homes, which are included in the total class. Redding Housing Vacancy New Construction Statistics All Housing Single Family Multi Family * : Percentage City Building Statistics Used* Eew* Total* Number PCL 1.9 .5 2.4 158 .6 1.0 .5 1.5 50 .3 5.3 1.0 6.3 108 2.1 The pace of new construction of residential housing in Redding slowed substantially during 1981 and 1982. During 1976, 1977 and 1978, Redding added between 800 and 900 new dwelling units each year, of which a total of 955 were single family units and 1,564 were apartment units. In 1979, the pace of single family construction picked up from this 32.0 per year average to 420, but declined to 302 in 1980 and 174 1n 1981. Construction of new apartment units during this 1979-1981 period declined from the 520 per year average of the three prior years to approximately 170 per year. The pace of new construction for business permits for the past three years, however, maintained the pattern prevailing in Redding since 1976. Additional building statistics data Is included in Table 10 in the City and Financial Data section. Finished Lot Survey Reddi ng's Board of Realtors prepared a summary of a survey of Redding area subdivisions having at least seven finished lots available for sale as of April, 1982. The data are further summarized below. The report lists 20 subdivisions, of which half had 20 or more lots. The 20 reported a total of 615 remaining improved lots, of which approximately 300 were not available for sale at that time. Of the remaining 315, approximately 175 were not capable of providing Redding's low-cost electric service and 90 2-7 • 0 were designated as in "low-cost areas." Most of the lots available were in the 1/4 to 1/3 acre category, with the remainder either in 1/2 - 1 acre or the 7,000 to 9,000 square feet categories. Listed prices for 1/4 and 1/3 acre lots appeared to range from $20,000 to $25,000, except where special amenities such as views, trees or a "river" designation increased prices to the $30,000 to $42,000 range. Prices for 1/2 acre lots were mostly in the $20,000 to $45,000 range. Acre and over lots ranged wider in price. Earthquake Faults and Volcanoes The Fault Map published by the California Division of Mines and Geology shows that, in the Redding area, the nearest fault lines along which displacement has occurred within the last 200 years are both located approximately 100 miles from the City. North of San Francisco, the San Andreas Fault runs, generally along the California coastline to the southern boundary of Humboldt County, where it joins the. Mendocino Fault Zone and proceeds westward into the Pacific Ocean. The second recently active fault is a three- mile fragment southeast of Oroville. There are many fault lines in the mountains about 40 miles east-northeast of Redding that were active during the Quarternary period covering 200 to 2 million years past, plus one such fault near Battle Creek which begins approximately 15 miles southeast of Redding and extends 15 miles eastward. . The seismic safety element of the City's general plan characterizes seismic risks as not a significant factor in building plans, design and structure. The maximum earthquake intensity expected to occur in Redding's zone is (Modified Merchaili) VI or VII (XII maximum) according to the Urban Geology Master Plan (Bulletin 198) by the State Division of Mines and Geology. Hence, seismic considerations are mainly a factor only where mandated by state law -- in the construction of schools and hospitals. Several volcanoes that have been active during the Quarternary period are located generally east and southeast of Redding, commencing 20 miles to the east, and extending to the northeast and southeast. Lassen Park last erupted over a period of years between 1914 to 1921. Mt. Shasta is also considered a site of possible future eruptions. 2-8 CITY AND FINANCIAL DATA City Government -- General Redding, incorporated in 1887, is a general law city with the council- manager form of government. Council members are elected at large for staggered four-year terms, and elect the mayor from its members. The City Clerk and City Treasurer are also elected for four-year terms, and the City Manager and City Attorney are appointed by the Council. William H. Brickwood, City Manager since 1970, appoints department heads and approves hiring of all other City employees. Previously he was a.businessman and civic leader In Redding. Present Council members, with their initial year of service and backgrounds, are listed below: o Mayor - Barbara A. Gard (1976). Former president of the County Medical Society Auxiliary, former chairman of the board of Redding Museum and Art Center, former chairman of the Recreation and Parks Commission, one of seven AAUW "Women of Achievement" in California in 1976. o Donald Demsher (1974). High school administrator; former president of the Board of Trustees of Redding School District, former county chair- man of the Democratic Party. o Lee D. Fulton, M.D. (1964). Mayor for 1976 and 1977 and chairman of the Ways and Means Committee. Physician and assistant clinical professor, University of California, San Francisco, and Medi -Cal and Blue Shield consultant; member of County Welfare Advisory and Air Pollution Control Commission. o Howard D. Kirkpatrick, C.L.U. (1978). Partner, independent insurance agency. Former chairman of Enterprise Public Utility District, former chairman of the joint powers committee that formulated the Redding Regional Sewer Program; member of the Board of Governors of Memorial Hospital. o Archer F. Pugh, LLB (1974). Attorney; former chairman of the Parks and Recreation Commission, present member of the Power Committee and the City's representative to the Northern California Power Association and the Regional Sewer Program. The Council has seven special advisory commissions or boards: Planning and Community Development, Civic Arts, Recreation and Parks, Airports, Traffic and Parking, Senior Citizens, and a Redevelopment Agency. Redding►s city government provides an unusually comprehensive range of services for a California community of its size. Basic services include police, fire, public works (streets, drainage and lighting), building regulation, animal control, planning and community development, and park and recreation (including noteworthy civic arts and auditorium elements) plus six enterprises: power, water, sewerage, waste collection, airports and parking systems. 3-1 The City operates nearly all of its enterprises on a completely self- supporting basis, but including depreciation as an operating expense only for the electric, sewer, and airport categories. The water and sewer systems have been financed, primarily, by revenue bonds. These enterprise operations contribute substantially to the general financial strength of the City. The City maintains an aggressive capital improvements program. During the 1970's, the City spent over $28 million for capital outlays, not including funds derived from Revenue Sharing, the Community Development Program, or the Redevelopment Agency. In addition, the City received Federal Economic Development grants of approximately $3,159,000 for capital outlays plus Community Development Grants of $1,929,000 and spent $1,850,000 of Revenue Sharing Funds for capital improvements. An Emergency Drought Relief loan plus a grant in the amount of $950,000, each, was spent for water system Improvements. Following are eleven tables presenting data on City assessed valuations, tax delinquencies, revenues and expenditures, electric utility rates and collections, assessment district collections, and other aspects of City finances and operations. Table 3-1 CITY OF REDDING Assessed Valuations, Secured Tax Levies and Delinquencies* Assessed Total City Fiscal Year Valuation** Secured Tax Levy Delinquent Percent June 30 1981/82 $ 265,007,970 $ 2,073,229 8.398 1980/81 223,513,057 1,823,619 5.32 *** 1979/80 194,086,792 1,584,301 4.29 1978/79 158,982,597 957,083 3.96 1977/78 149,158,972 2,323,937 3.33 1976/77 85,013,908 1,402,175 2.65 Includes Cascade. Community Services District and Enterprise Public Utility District, both annexed to the City in 1976, and on the tax roll for the first time in fiscal year 1977/78. Sources: Shasta County Office of Auditor -Controller, Bank of America ** Total assessed valuation for revenue purposes. Estimated. 3-2 0 Table 3-2 • CITY OF REDDING Combined Statement of 1981/82 Appropriations and Expenditures (Unaudited) Unencumbered 1981/82 1981/82 Encumbrances 1981/82 Appropriation Expenditure June 30, 1982 Balance General Fund $16,740,360 $ 15,617,935 $ 235,912 $ 886,513 Special Rev. Funds 2,703,290 1,734,679 82,428 886,183 Debt Service Fund 106,800 106,795 -0- 5 Enterprise Funds 21,192,510 18,614,696 1,268,041 1,309,773 Intragovernmental 1,275,650 1,288,566 3,462 [16,3781 TOTAL $ 42,018,610 $ 37,362,671 $ 1,589,843 $3,066,096 3-3 Table 3-3 • CITY OF REDDING Revenues and Beginning Fund Balances - 1981/82 1978/79 1979/80 1980/81 (Unaudited) BEGINNING FUND EQUITY $ 30,306,036 $ 31,212,888 $ 32,979,308 $ 36,136,773 TAXES Sales........ 4,638,834 5,288,198 5,284,617 5,103,794 Property..... 1,101,120 1,761,332 1,923,245 2,265,955 Other (2).... 875,746 945,622 872,611 1,020,486 Total Taxes $ 6,6151700 $ 7,995,152 $ 8,080,473 $ 8,390,235 MISCELLANEOUS REVENUES Licenses, Fines, Permits and Penalties... $ 374,306 $ 509,093 $ 488,790 $ 345,487 Charges for Current Services.... 513,119 991,654 797,049 437,614 Revenue from use of Money and Property (3) 594,743 589,373 1,046,239 439,997 Other......... 368,980 306,620 212,783 206,496 Total.......... $ 1,851,148 $ 2,396,740 $ 2,544,861 $ 1,429,594 REVENUE FROM OTHER GOVERN- MENT AGENCIES Federal: Revenue Sharing 632,995 $ 787,291 $ 965,299 $ 1,140,579 Community De- velopment.... 844,447 690,619 1,950,721 695,242 Grants (4)... 6,726,889 Airport -FAA Grant 370,986 Other........ 14,765 11,169 437,970 State (5)...... 2,548,462 1,314,415 1,696,395 1,399,551 Highway.(6).... 432,874 422,505 419,687 429,903 County (7)..... 572,661 611,436 873,559 1,001,015 3-4 Interest (8)....$ 174,719 $ 250,135 $ 132,293 $ 139,667 Total........ $12,318,798 $ 4,076,401 $ 6,0491123 $ 5,243,927 TOTAL........ $ 862,940 $ 1,031,110 $ 1,477,913 $ 1,550,460 ENTERPRISES AND REVENUE PRO- DUCING DEPART- MENTS Power......... $ 7,395,181 $ 9,215,116 $10,241,585 $10,577,113 Water (9)..... 1,657,681 2,835,271 2,327,430 3,289,117 Sewer (9)..... 1,322,984 1,593,105 1,455,048 1,802,119 Sanitation.... 1,110,613 1,272,340 1,468,341 1,706,030 Airports (10). 210,086 342,459 647,555 1,127,847 Parking....... 155,328 75,856 2401506 204,871 Enterprise Total...... $11,851,873 $15,334,147 $16,380,465 $18,707,097 Total Pa7enues..$33,500,459 $30,833,550 $34,532,835 $35,321,313 (1) Source: Audited Annual Financial Statements for fiscal years 1978/79 through 1980/81 and the unaudited Annual Budget 1981/82 exclude assessment bond projects and transactions, and trans- actions of the Redding Redevelopment Agency and the Housing Authority of the City of Redding. (2) Includes transient occupancy and business license tax. (3) Includes only income from city -generated funds and property. (4) Includes EDA grants. (5) Includes, primarily, State motor vehicle in -lieu tax, homeowners business inventory exemption reimbursement, and cigarette tax. (6) Includes State gas tax apportionment. (7) Includes County contributions to street, police, recreation and other programs. (8) Includes interest earned on Federal revenue sharing, State gas tax, and County gas tax funds. (9) Includes interest earnings of revenue bond reserve funds. (10) Includes only airport fees and miscellaneous revenues generated by the enterprise. M1 Table 3-4 CITY OF REDDING Expenditures and Encumbrances 1981/82 1978/79 1979/80 1980/81 (Unaudited) GENERAL GOVERNME3T $ 901,600 $1,042,385 $ 961,536 $1,288,566 Legislative $ 17,009 $ 20,867 $ 17,569 $ 20,745 General Administration 806,430 987,699 1,155,524 1,283,573 Finance 245,222 284,673 295,334 330,521 Other 407,758 508,193 519,493 548,405 Total 1,476,419 1,801,432 1,987,920 2,183,244 PUBLIC SAFETY 780,949 2,035,622 1,163,857 1,229,919 Police 2,236,147 2,574,129 3,229,792 3,636,893 Fire 1,676,827 2,150,556 2,359,906 2,570,558 Other 88,358 124,371 123,153 133,531 Total 4,001,332 4,849,056 5,712,851 6,340,982 PUBLIC WORKS 495,396 1,053,948 864,998 1,024,636 Administration - and Engineering 614,898 879,540 823,780 765,054 Streets & Drains 1,777,465 2,248,254 2,901,241 2,652,018 Total 2,392,363 3,127,794 3,725,021 3,417,072 RECREATION AND CULTURE Parks 929,644 1,023,935 1,014,023 922,436 Recreation 139,539 190,164 225,931 255,717 Museum 44,841 91,953 110,113 131,159 Auditorium 318,256 368,576 307,665 324,221 Mall 229,159 353,264 251,892 223,423 Special Promotion 40,572 29,501 60,391 97,596 Total ?,702,011 2,077,393 1,970,015 1,954,552 SPECIAL REVENUE OPERATIONS Community Dvlpmnt 664,859 762,547 1,716,061 733,182 Revenue Sharing 381,095 1,173,917 575,683 655,602 Other 60,657 63,229 Total 1,045,954 1,936,464 2,352,401 1,452.013 CITY EQUIPMENT FUND $ 901,600 $1,042,385 $ 961,536 $1,288,566 ENTERPRISES Power Operation and Maintenance 4,252,895 5,472,664 6,520,599 6,385,225 Power Capital Outlay 9,708,241 6,791,240 2,499,316 4,384,652 Water Operation and Mainteance 780,949 2,035,622 1,163,857 1,229,919 Water Capital Outlay 1,028,969 2,454,254 3,871,236 1,217,442 Waste Water Operation and Maintenance 495,396 1,053,948 864,998 1,024,636 Waste Water - Capital Outlay 509,555 17,128,556 2,100,817 445,229 3-6 Ll m Solid waste Operation and Maintenance 1,105;859 1,248,437 Solid Waste Capital Outlay 102,053 104,487 Airport Operation and Maintenance 104,439 435,094 Airport Capital Outlay 817,275 896,185 Parking Operation and Maintenance 122,523 42,463 Total 19,028,154 37,662,952 Enterprises DEBT SERVICE Fire 6,128 0 Water 216,184 255,254 Sewer 446,250 403,312 Auditorium 102,795 105,895 Electric 340,744 227,163 Airport 0 0 Total 1,112,101 991,624 TOTAL EXPENDITURES Other Adjustments (2) ENDING FUND EQUITY -(1) • 1,493,883 -1,753,233 372,698 66,450 458,996 371,230 3,075,397 1,416,217 198,211185,071 22,620,008 18,479,304 0 806,276 392,117 103,895 1,111,263 0 2,413,551 0 751,507 391,688 106,795 961,813 35,140 2,246,943 $31,659,934 $53,489,100 $41,743,303 $37,362,676 933,673] 29,421,970(3) 10,367,933 8,351,632 31,212,888 32,979,308 36,136,773 42,447,042 (1) Data include operations of the City Manager, City Clerk, City Attorney, Personnel, Planning, and Building Regulation. (2) Data include increases (or decreases ),in inter -fund transfers and capitalization of property plant equipment and depreciation. (3) Capitalization of regional wastewater treatment plant and elec- tric bond construction recorded as a capital project expenditure fund and not reported in the waste water utility fund and elec- tric utility fund. 3-7 ANIL Table 3-5 CITY OF REDDING Statement of General Fund Revenues and Transfers Estimated vs. Actual 1981/82 (Unaudited) Estimated Revenue Actual Revenue Over (Under) TAXES Property Taxes ................... $ 2,053,000 $ 2,265,955 $ 212,955 Sales Tax ........................ 5,600,000 5,103,794 [496,206) Transient Occupancy Tax.......... 626,500 643,575 17,075 Business License ................. 120,000 123,614 3,614 Property Transfer Tax............ 160,000 30,244 [129,7561 Parking and Business Improvement. 80,000 74,263 [5,7371 Franchises...... ............... 146,000 147,706 1,706 Other Taxes ...................... 1,600 1,084 [5161 Total Taxes ................. $ 8,787,100 $ 8,390,235 $ [396,8651 FINES, FORFEITS AND PENALTIES.... $ 248,000 $ 204,141 $ [43,8591 LICENSES AND PERMITS Building Permits ................. $ 180,000 $ 91,553 $ [88,4471 Plumbing Permits ................. 18,000 6,704 [11,2961 Electrical Permits ............... 22,000 14,962 [7,0381 Animal Licenses .................. 23,000 23,255 255 Other Licenses and Permits....... 6,600 4,872 [1,7281 Total Licenses and Permits $ 249,600 $ 141,346 $ [108,2541 REVENUE FROM THE USE OF MONEY AND PROPERTY Interest Income .................. $ 100,000 $ 332,320 $ 232,320 Auditorium ....................... 95,000 97,590 2,590 Real Estate Rentals 4,600 10,087 5,487 Total Revenue from the Use of Money and Property $ 199,600 $ 439,997 $ 240,397 REVENUE FROM OTHER AGENCIES Federal Street Projects........ $ 336,900 $ 430,437 $ 93,537 National Trust......... 1,230 7,533 6,283 State Motor Vehicle in Lieu Tax .................. 890,000 504,956 [385,0441 Homeowner Property Tax Relief........... 120,000 117,794 [2,2061 Cigarette Tax.......... 230,000 205,784 [24,2661. Business Inventory Property Tax Relief.. 116,500 99,255 [17,2451 Mandated Programs...... 6,000 54,887 48,887 Park Bond Funds........ 188,490 70,965 [117,5251 Alcoholic Beverage License ............. 50,000 [50,0001 Trailer Coach in Lieu Tax ................. 48,000 19,620 [28,380.1 Aid to Local Agencies.. 96,000 [96,0001 P.O.S.T. Program....... 10,000 11,751 [1,7511 Other" .................. 207,210 255,584 48,374 County Fire District.......... 35,000 35,000 Fire Response.......... 1,000 5,268 4,268 REVENUE FROM OTHER AGENCIES (continued) County Emergency Medical Dispatch....... Total Revenue from Other Agencies CHARGES FOR OTHER SERVICES Refuse Collection Charges... Building Plan Checking Fees. Land Use Permit Zoning...... Engineering Inspection Fees. Swimming Pool Receipts...... Animal Shelter Fees......... Street Cleaning Fees........ Other Recreation Revenue.... Other Service Charges....... Total Charges for Other Services OTHER REVENUES Sale of Property........... Mall Contribution.......... Workmen's Compensation Ins. Miscellaneous Receipts..... Total Other Revenues Total Revenues Transfers .................. Total Revenue and Transfers....... ..... • Estimated Actual Over Revenue Revenue (under) 10,000 2,190 [6,810] $ 2,346,350 $ 1,821,974 $ [524,376] $ 11800,000 $ 1,706,030 $ [93,970] 20,000 25,323 5,323 30,000 28,703 [1,297] 40,000 9,396 [30,604] 23,000 27,492 4,492 10,000 10,595 595 6,000 5,960 1401 44,400 38,512 [5,888] 18,300 13,624 [4,676] $ 1,991,700 $ 1,865,635 $ [126,065] $ 20,000 $ 41,667 $ 21,667 34,000 31,110 [2,890] 20,000 31,445 11,445 35,000 102,186 67,186 $ 109,000 $ 206,408 $ 97,408 $13,931,350 $13,069,7364 $ [861,614] 3-9 $15,468,988 UTILITY SYSTEM RATES AND COLLECTION Over the past decade, Redding's rates for electricity have run about half, or less, those charged by P.G.&E., the other supplier in the region. For example, a February, 1982, survey by the California Energy Commission reported residential kilowatt-hour costs of 2.2 cents for Redding, compared with 5.4 cents for P.G.&E., 6.5 and 6.6 cents for Los Angeles P.U.D. and Southern California Edison, respectively, and 9.7 cents for San Diego Gas and Electric. In recent years, rates for electricity of both local suppliers have been subject to periodic and rather frequent increases, so that it is uncertain whether that ratio will continue to be maintained in the future. The current cost advantage is sufficiently large, however, that at worst, maintenance of a substantially favorable advantage can be expected to prevail for a considerable number of years. Table 3-6 shows the current system of rates and charges for four services in the City: electricity, water, sewer and garbage collection. The rate schedules shown are complete except for. the electric system, where special rates may apply based on special requirements or load characteristics of large commercial or industrial users. Table 3-7 shows the City's collection experience during the past 10 years for its utility systems. Redding sends each customer one composite computer - prepared bill for all four services. Any delinquencies in payments, therefore, are allocated on a pro -rata basis to each service. Each bill is payable within 15 days and is marked delinquent if unpaid within 30 days. Thereafter, the City has a variety of procedures which correspond to a system of credit ratings assigned to the customer's payment' history that determine which collection procedures are followed to secure payment. Table 3-7 CiTY OF REDDING Utility System Collection Record Fiscal Year Total Billings Uncollectible Amount Percent 1981/82 $ 15,467,922 $ 135,219 .8741% 1980/81 14,231,052 105,005 .7378 1979/80 13,324,925 105,076 .7885 1978/79 10,632,045 63,080 .5933 1977/78 7,947,459 60,174 .7571 1976/77 5,614,213 45,726 .8144 1975/76 4,578,389 49,996 1.0920 1974/75 3,874,404 34,510 .8907 1973/74 3,612,306 33,668 .9320 1972/73 3,611,045 28,519 .7898 3-10 • Table 3-6 CITY OF REDDING Municipal Utilities Rates Minimum or Flat Monthly Charge ELECTRIC SERVICE (7/1/78)* 4.00 Residential..................... $ .85 All KWH per KWH.............. General Service : Demand Meter.. 2.00 Non -Demand Meter .............. 1.15 First 5,000 KWH............... .037 Next 15,000 KWH............... .033 Next 4,000 KWH................. .021 All over 24,000 KWH........... .016 Demandcharge: ................. Per KW demand over 50 KW and use exceeds 24,000 KWH........ 1.00 Fixed Rate Service ............... 4.63 and .053/KWH Estimated Usage per KWH........ 4.00 Street Lighting .................. 100 Watts ...................... 7.15 150 Watts ...................... 7.45 175 Watts ...................... 7.75 250 Watts ...................... 8.70 400 Watts ...................... 9.70 1,000 Watts ...................... 13.60 1,500 Watts ...................... 18.60 WATER SERVICE (4/l/77)* First 500 cf... 4.00 Next 3,000 cf, per 100 cf....... Next 6,500 cf, per 100 cf....... Over 10,000 cf, per 100 cf....... SANITARY SEWER SERVICE (7/1/77)* Residential - Single: ............ 7.00 Nonresidential ................... variable, based on volume andstrength.. ................ GARGAGE AND REFUSE DISPOSAL SERVICE (8/3/70)* Residential ...................... 4.00 Additional Containers,Per unit... 1.50 Nonresidential ................... 4.00 Quantity Charge based on cost ofService ...................... *Effective date of the rate structure. Source: City of Redding 3-11 Quantity Charge .020 .040 .45 .30 .18 Multi: 4.20 Variable *Figures include both City—collected 1911 Act bonds and County—collected 1915 Act bonds. Source: (1) City of Redding Financial Report (a) State Controller's Report of California Cities (3) Unavailable Ratio of Collections to Amount Due 109.2 100.1 78.8 91.2 107.1 99.5 90.3 99.4 97.1 113.7 Total Outstanding Assessments(2) $2,151,953 1,919,383 1,633,714 1,794,949 1,643,915 1,430,126 1,627,661 2,101,942 2,227,111 4,646,812 • CITY OF REDDING SPECIAL ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS Current Current ' Assessments Assessments Fiscal Year Due(1) Collected(1J 1971-1972 $ 329,563 $ 359,871 1972-1973 391,285 391,755 1973-1974 405,852 320,091 1974-1975 313,741 286,078 1975-1976 329,438 352,910 1976-1977 323,649 322,144 1977-1978 489,239 441,831 1978-1979 453,546 450,784 1979-1980 389,071 377,934 1980-1981 335,657 381,652 *Figures include both City—collected 1911 Act bonds and County—collected 1915 Act bonds. Source: (1) City of Redding Financial Report (a) State Controller's Report of California Cities (3) Unavailable Ratio of Collections to Amount Due 109.2 100.1 78.8 91.2 107.1 99.5 90.3 99.4 97.1 113.7 Total Outstanding Assessments(2) $2,151,953 1,919,383 1,633,714 1,794,949 1,643,915 1,430,126 1,627,661 2,101,942 2,227,111 4,646,812 • w i w CITY OF REDDING RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE OF NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS * Redding pays for all general obligation bonded debt from net revenues of the respective enterprises for which the debt was issued. Redding's ratio of debt service to general expenditures during the past decade has ranged from a low of 3.48% in 1975/76 to a high of 7.50% in 1980/81. Net revenue coverage of the City's outstanding revenue bond service in -1980/81 was 4.1 for its sewer bonds and 1.7 for its water bonds. (1) State of California Departrrent of Finance (2) State Controller's Retort of California Cities (3) City of Redding Finazrcial P.eport • 0 Ratio of Net. Bonded Debt Net Bonded Fiscal Year Population (1) Assessed Value (2) Gross (3) Bonded Debt Service Less Debt (3) Fund Net (3) Bond Debt Assessed to Value Debt Per Capita 1971-1972 17,705 $ 43,692,637 $ 4,069,000 -0- $ 4,069,000 09.31% $229.82 1972-1973 17,705 46,676,976 3,957,000 -0- 3,957,000 08.47 223.50 19.73-1974 34,979 47,146,809 3,835,000 -0- 3,835,000 08.13 109.64 1974-1975 34,979 53,004,085 3,712,000 -0- 3,712,000 07.00 106.12 1975-1976 34,979 61,754,885 3,584,000 -0- 3,584,000 05.80 102.46 1976-1977 36,905 74,128,010 10,614,000 -0- 10,614,000 14.31 287.60 1977-1978 39,850 131,275,918 10,086,000 -0- 10,086,000 07.68 253.10 1978-1979 40,692 157,328,141 9,867,000 -0- 9,867,000 06.27 242.48 1979-1980 40,692 192,385,792 15,393,600 -0- 15,393,600 08.00 378.30 1980-1981 42,805 223,931,002 15,366,283 -0- 15,366,283 06.85 358.98 * Redding pays for all general obligation bonded debt from net revenues of the respective enterprises for which the debt was issued. Redding's ratio of debt service to general expenditures during the past decade has ranged from a low of 3.48% in 1975/76 to a high of 7.50% in 1980/81. Net revenue coverage of the City's outstanding revenue bond service in -1980/81 was 4.1 for its sewer bonds and 1.7 for its water bonds. (1) State of California Departrrent of Finance (2) State Controller's Retort of California Cities (3) City of Redding Finazrcial P.eport • 0 ■,----, v---- 1972-1973 1973-1974 1974-1975 1975-1976 1975-1976 1976-1977 1977-1978 1978-1979 1979-1980 1980-1981 CITY OF REDDING PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Commercial ConStruction(i Number of Permits Value 25 $ 2,511,321 42 7,982,453 32 6,920,441 34 10,676,072 59 7,943,271 57 7,709,592 60 9,655,555 80 13,312,547 50 14,869,000 35 8,260,363 Residential Construction(] Number of Permits Value 250 $ 2,661,983 279 3,970,236 210 4,270,576 249 5,136,690 246 8,406,293 811 20,244,738 802 26,276,478 906 26,955,788 565 28,506,166 331 21,332,944 Scarce: (1) Citic of Rcadinn Plannin? Department (2) State La)1^: i ,�:: ociation, 1971 through 197G not available. (3) State Report Cities: of California, 1974 not available Bank(2) Deposits (In Thousands $ -0- -0- -0- 236,266 261,630 403,472 490,251 541,731 State Assessed $ 4,746,790 5,165,650 5,298,460 5,489,920 6,237,970 9,775,030 10,580,710 11,665,860 13,986,090 Property Value( Locally Assessed S 44,572,002 47,396,716. 58,650,147 68,931,860 81,952,009 144,493,155 172,086,836 208,580,947 230,331 ,687 Non-taxabl S 5,626,155 5,885,390 10,944,522 12,716,895 14,061,969 22,992,267 25,339,405 27,361,015 20,3£6,775 01 9 • 0 0 CHARACTERISTICS OF THE REDDING AREA Geography—Climate Redding is located at the northern tip of the Central Valley in the early foothills of the mountain rim that surrounds the City on the west, north and east, giving the area's setting both form and geographical distinction. They City straddles the Sacramento River, whose waters are controlled by Shasta and Keswick Dams, which are less than 15 and 30 minutes drive from town. Summer temperatures rise above 100 degrees an average of 39 days per year, usually with relatively low humidity. Winter temperatures fall below freezing an average of 27 days per year. Average annual precipitation is 39 inches, occurring during an average of 80 days per year. Snowfalls are infrequent, seldom lasting more than 24 hours. Winds over 16 mph occur only five percent of the time. Clear weather predominates over 200 days and usual visibility is 50 to 100 miles. Population Present city population is estimated at 43,000 (38.5" of Shasta County), with 1980 census characteristics as follows: median age — 30.2; 56% married and only 7% in non—family households; the mean household size was 2.46 and over 53% of al 1 households were owner—occupied; the race— ethnicity composition was 94% White, 3% Spanish, 2% Asian and 1% all other. Projected area population is 112,000 by 2000. Economic Base Over the past 20 years, Redding's economic base has evolved from domination by resource extraction and processing, primarily lumber, to a regional services economy. The area's largest employment categories and approximate proportions now are: government 21%, trade 20%, "other" (primarily self—employed) 16%, services 15%, and manufacturing 11%. Lum— ber industry emp1oyment was only 7% of the total in 1978, the highest recent year percentage. The recreation industry has grown rapidly in recent years. The region's attractions and the impact of Interstate 5 have combined so that Redding now has over 2,550 motel rooms (a per capita rate 84% higher than San Francisco and nearly as high as Honolulu). As a retailing center, Redding's 1981 sales accounted for about 86% of the County's total in drugs, 88% of apparel, 75% of building materials and 67% of auto. Taxable sales in the City were up 83% between 1976 and 1981. Redding also serves as the major medical center for a 5—County region, with three general care hospitals having 406 beds and staffed by 1,075 full—time and 470 part—time employees. A 50—bed expansion of the largest hospital is planned within the next three years. In a 1976 study, Redding's ratio of medical specialists to its population was 1 to 210, only slightly behind those in the nation's two highest cities (San Francisco— 1 to 190, and Denver— 1 to 208), versus Cleveland's 1 to 877- 4-1 Growth Pattern Much of Redding's population growth in recent years stems from the migration of former San Francisco Bay Area and Southern California residents who seek a more rural lifestyle. A recent survey of such migrants by the University of California showed 15% having advanced degrees, and over two—thirds having attended some college. Many such migrants have opted for lower—paying part—time, seasonal or alternate occupations, in order to pursue personal and avocational interests. The Redding Employment Development Department processes an average 750 new work applications per month and maintains an active applicant file of over 5,000 persons seeking employment in the area. Factors which tend to encourage in—migration include: low residential area densities and nearby open spaces; clean air; lower cost of living, especially for housing; a sense of community fostered by well—established social and fraternal organizations and relatively excellent educational and cultural facilities; excellent local urban area recreational facilities plus daily access to summertime fishing and boating activities and hunting and fishing in winter (typically, 10 minutes from work to the Sacramento River and ski areas within 90 minutes); and finally, the availability of the combination of'a sufficient number of well—paying seasonal or interim forms of employment plus sufficient unemployment compensation to make such a lifestyle attractive. Recreation The Redding region abounds in major recreational attractions that now generate an estimated $48 million in annual revenues within Shasta County. Major facilities within 50 miles of the City include: Lake Shasta: Covers 29,580 acres, with 364 miles of shoreline. Shasta—Trinity National Forest: Covers 1,685,000 acres, of which 564,000 have National Recreation Area status and surround Shasta and Whiskeytown Lakes. Lassen National Forest and Volcanic National Park: Covers 1,275,000 acres, of which 106,000 are in the Park. Whiskeytown Lake: covers 3,200 acres with 36 miles of shoreline. Castle Crags State Park: Covers 6,200 acres. Noted for Indian Lore. McArthur—Burney Falls State Park: Covers 565 acres. Annual visitors to the falls are estimated at -185,000. Sacramento River: Excellent salmon, trout and steelhead fishing. Other cultural and recreational facilities include an oustanding Civic Auditorium and Convention Center (2,082 seating), the Redding Museum and Art Center and 13 theaters, a Community Concert Association, the Shasta Symphony Orchestra, the Shasta Community Theater, Shasta Community college, plus an assortment of radio stations (5), TV channels ( 2 direct plus one educational station and cable service), airports (3), and four newspapers. 4-2 The City owns and maintains 1,584 acres of parks which include two regional parks, three community parks and 14 neighborhood parks. City recreational facilities include six baseball fields, 14 lighted tennis courts, two boat launching facilities and numerous picnic facilities. Redding has three 9—hole and two miniature golf courses and one private 18 hole golf course adjacent to the city. Unemployment During the decade from 1972 through 1981, Shasta County's average annual civilian labor force increased from 33,900 to 50,450, or 49 percent. The average annual number of unemployed during the same period increased from 3,250 (9.6%) to 6,500 (12.9%), with a peak rate during that period of 15% in 1975 (compared with state and national rates, respectively, of 9.9% and 8.50). From 1973 on, the average unemployment rate in Redding has been above 11%, which then was more than 50% higher than the state average and more than twice the national average, and remained close to those ratios throughout the decade. This same heavy in— migration rate/high unemployment rate phenomenon was experienced by all northern and northeastern California counties during the entire decade. In 1981 and 1982, the pace of employment growth in the region slowed dramatically, aided by high interest rates, the general scarcity of loan— able funds, the substantial declines in the lumber and housing industries, and general unused capacity in the industrial sectors of the economy. As a result, the rate of unemployment also increased dramatically to a peak of 19.4% in December, and a peak of 20.5% in February among reported data for 1982, or a rate somewhat over twice the state and national averages. The latest announced rate, for August, was 16.4%. Industrial—Commercial Development Programs Redding has a very vigorous industrial development program spearheaded by the Economic Development Corporation of Shasta County (EDC), which is complemented by activities of Redding's Private Industry Council, the Redding Area Development Committee, the Superior California Development Council, and other agencies. EDC has developed and packaged over $50,000,000 of projects in the past decade. One, Mountain Lakes Indus— trial Park, is considered a model for such projects in rural communities all over the country. The Park now contains over 60 firms employing over 1,200. A March 1982 report prepared by SRI International for RADCO indicates that the Redding Area may have substantial opportunities in attracting plastics manufacturers and aluminum foundry firms. The second major aspect of the area's industrial program is an aggres— sive training program at Shasta College which is supplemented by extension and external degree courses given by California State University, Chico. Redding also has a Private Industry Council, which serves in an advisory and coordinating capacity with the County—administered CETA training pro— gram, which has a $1.5 million budget for fiscal 1983. This program has used a combination of work experience, classroom training, and other on— the—job training plus job search training activities for various partici— pants who have had a 45 percent permanent retention rate. The program is designed, mainly, for those who have.not had previous work experience after finishing school. 4-3 Products manufactured in the Redding area range from sophisticated electronics equipment, scanning electron microscopes, and laser equipment to hair care products, recreational equipment and wood products. The most recent EDC—assisted project is a large warehouse—distribution center for W. W. Grainger, Inc., Chicago, now nearing completion. The company distributes a broad line of industrial material, with special emphasis on electric motors, fans, blowers, pumps and tools. The company is also completing a 1,400,000 sq. ft. fully automated regional center in Kansas City as part of an expansion program aimed at improving its service capabilities during the next growth cycle. The Redding plant has been built to attractive standards, but with a temporary rear wall for accommo— dating ccommo— dating a planned expansion within three to f i ve years, in keeping with their general pattern of experience. An attractive feature of its, plant to the City i s a reputation as a magnet for attracting other operations. An important factor in Gra i nger's selection of Redding for its plant is the City's nearly mid—point location (about 600 miles) between Los Angeles and Seattle. Truck freight out of Redding can beat shipments out of Los Angeles or San Francisco terminals to midwest and east coast points in some cases by two days. There are eight truck terminals in Redding and environs. A December 6 ground breaking ceremony has been tentatively chosen by American Resources Equity Corp. for construction of a $20,000,000 diatomite processing plant near Burney, about 40 miles east of Redding. The company is already del i ver i ng part of 58,000 tons sold for use by the Calaveras Cement Co. plant operated by Genstar Corp. near Redding. The company also announced plans for establishing its.headquarters offices in Redding, where 25 are anticipated to be employed. Amerco expects to process 60,000 tons of diatomite per year at the plant where it will employ, initially, 55. Diatomite has approximately 700 commercial uses, of which a principal item is the manufacture of wallboard, for which Redding is anticipating development of two, or possibly three, new plants. Diatomite is also used extensively as a substitute for asbestos. Redding is also becoming a regional service center for professional, governmental, and other business service f i rms serving a broad area in Oregon and Northern California. Largest of these is a national engineering and planning firm, CH2M Hill, of which Clair Hill & Associates was a locally generated segment. Two new projects in their final stages in Redding include a new regional service center for the California State Automobile Association, and a recently opened locally—owned Redding Bank of Commerce. Redding is also one of 15 communities contesting for the location of a new U.S. Treasury currency printing plant esti mated to employ over 100 when completed. Redding is one of the few areas in California where good housing is still available at comparatively reasonable prices. The median price range for the average three—bedroom, two—bath, double garage, air condi— tioned home is $73,000, and land for country living ranges in price from $2,500 to $6,000 per acre, depending upon improvements and amenities. Unfurnished 2—bedroom apartments average about $300- 4-4