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Water District of Orange County pursuant to the District Reorganization Act of 1965, Division 1 of Title 6 of the Government Code of the State of California, commencing with Section 56000. 2. That the territory proposed for detachment is inhabited and is shown on Exhibit "~' attached hereto and by this reference incorporated herein. 3. That the City intends to assume full responsibility for providing the services currently provided by the Municipal Water District of Orange County within the corporate boundaries of the City of Santa Aha. 4. That the proposed detachment provide for and be subject to the following conditions: a. That commencing with the first year that the reorganization is effective for property tax purposes as provided in California Government Code Section 54902, all property tax revenues which would have accrued pursuant California Revenue and Taxation Code Section 97.5 to the Municipal Water District of Orange County from the area in the corporate limits of Santa Aha, had it remained in the District, shall be allocated to the City of Santa Aha. b. That upon completion of said reorganization detaching territory within the City of Santa Aha from the Municipal Water District of Orange County, said territories shall be relieved from the liability for payment of all or any part of principal or interest or any other amounts which may be due or become due on account of all or any part of any bonded indebtedness, contracts, or obligations, including, but not by way of limitation, any Judgment or judgments against the Municipal Water District of Orange County, and that said territory be relieved from the levying or fixing and the collection of any taxes or assessments as may be made for the payment thereof. c. That any election called upon the question of confirming an order for the reorganization shall be called, held and conducted upon such reorganization only within the territory affected by such reorganization. d. Funds accumulated in Reserve by the Municipal Water District of Orange County for the purpose of capital improvements, operations and maintenance, and administration thereof shall be allocated to the City of Santa Aha based on the proration of property tax revenues generated within the City of Santa Aha and allocated to the District as a percentage of the total property tax revenues of the District. 5. That the reason for this proposed detachment is that the City of Santa Ana, an original Member Agency (1929) of the Metropolitan Water District of Southern California, buys all of its wholesale water directly from that District, buying none through the Municipal Water District of Orange County. Commencing in 1984-85, the Board of the Municipal Water District of Orange County instituted Annual Retail Service Connection Charges and a Water Increment Charge for water used in Santa Aha within their Jurisdictional boundaries, even though that water is not purchased from them. The services provided by MWDOC within Santa Aha are duplications of services already provided by the City or services which can be provided by the City at lower cost to its constituents.