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DESCRIPTION OF FUNDING SOURCES <br />SEWER CAPITAL RECOVERY (SEWER) This fund was <br />established in FY15-16 due to the anticipated issuance of a bond <br />to fund additional projects for the current fiscal year as well as <br />future years. Funding will be used for the replacement of <br />deteriorated or undersized sewer lines to minimize disruption of <br />sewer flow, increase sewer conveyance reliability and prevent <br />sewer system overflows. <br />SEWER CONNECTION PROJECTS (SEWER CONNECTION <br />PROJECTS) — The Sewer Connection Fee is collected from <br />various types of development based on the number of fixture units <br />and the cost per lineal foot of construction of a main sewer line. All <br />monies received by the City as a fee for connection to the public <br />sewers are deposited into the Sewer Connection Fee Fund and <br />used for the construction of sewers. Fees are paid at the time of <br />application for a sewer connection permit, and no connection <br />permit is issued until such fees are paid. <br />TRANSPORTATION SYSTEM IMPROVEMENT AREA FUND <br />(AREA FEES) — Ordinance NS-1651, adopted in 1982, <br />established the concept of transportation improvement areas. In <br />addition, the City has executed "Joint Exercise of Powers <br />Agreements" with the cities of Tustin and Orange specifically <br />covering areas adjacent to those cities. These Area Fees are <br />charged to new development to offset the cost of transportation <br />system improvements within that area. The City has six <br />transportation improvement areas. The fee charged is based on <br />-3- <br />5/28/2019 <br />the square footage of the proposed development. The fee may be <br />changed from time to time by resolution of the City Council. Fees <br />are paid at the time of application for a building permit. <br />WATER CAPITAL FUND — The City charges a user fee for <br />providing water services to residents and businesses in Santa Ana. <br />All monies are used to fund operating and maintenance costs, as <br />well as capital improvements of the City's water system. <br />Approximately 10% to 20% of these funds are allocated to water <br />system capital improvements each year. <br />