anaheim-gazette 1963-10-03

Provisions for Growth Bond Issue. Vital, Says Mayor Coons The proposed $12.4 bond issue to be voted on by Anaheim residents next Tuesday "is designed for the benefit of every person residing here and for those of generations to come," Mayor Rector L. Coons said in a pre-election statement. Mayor Coons, who has spoken for the bond issue before more than 3,000 people, said there could be no doubt of a definite need for every item on the ballot. He urged every registered voter to go to the polls next Tuesday. Facts About Anaheim Bond Issue for Capital Improvements Election Tuesday, Oct. 8 Total $12,400,000 Issues to be Voted Separately, Each Requiring Two-thirds Majority FINANCING General obligation bonds. This bond issue will not increase the city's low tax rate of $1.10 (unchanged since 1951), nor will it raise utility rates, or any other charges for city services. Bonds will be sold only as they are needed. State law provides a city's maximum bond indebtedness to be 15 per cent of the assessed valuation however, it has always been Anaheim's policy to hold the city's bond indebtedness within 10 per cent of the assessed valuation, leaving 5 per cent for any possible emergency. BACKGROUND FINANCING General obligation bonds. This bond issue will not increase the city's low tax rate of $1.10 (unchanged since 1851), nor will it raise utility rates, or any other charges for city services. Bonds will be sold only as they are needed. State law provides a city's maximum bond indebtedness to be 15 per cent of the assessed valuation however, it has always been Anaheim's policy to hold the city's bond indebtedness within 10 per cent of the assessed valuation, leaving 5 per cent for any possible emergency. BACKGROUND In 1959 a 100-man Anaheim citizens committee completed more than a year of research and recommended a 20 year capital improvement program. The first phase of that program was supported by the voters in a 1960 bond election. Now, Anaheim is preparing to enter the second phase of that program. WATER $4,900,000 Construction of an 814 million gallon lake-type reservoir, dam, and treatment plant to be located on a 90 acre site (76 acres water surface) in Walnut Canyon above the Riverside Freeway, five miles east of the community of Olive. Cost includes transmission and distribution lines from the reservoir to serve the entire city; construction and maintenance of roads to the reservoir site; rough grading and engineering; replacement of four 50 year old wells with new switch gears and pumps; fill five abandoned wells; telemetering for 150 water utility functions; and the water department portion of a new utility yard and building. Completion will take care of city's peak hourly demands and insure Anaheim a 40 day water reserve in the event of water shortage, power failure, or breakdown in the Metropolitan Water District lines serving Anaheim from the Colorado River. ELECTRIC $750,000 Construct new additions to the Anaheim electrical substation, the Dowling substation, and the Lewis Substation, to increase the city's electrical capacity by 100.- 000 KVA (kilovolt-amperes) for a total 240,000 KVA, and provide adequate power to mid-1967. Also construct the electrical portion of a new utility yard and building. STORM DRAINS $2,500,000 Portions of major storm drains now completed in various sections of the city will be extended to serve a wider area to relieve critical locations in times of storms and heavy rains. Also new drainage projects will be constructed. These new extensions and projects are designed to carry ed quarters. Anaheim through the next three years. Funds for smaller storm drains will continue to be provided by the annual operating capital budget. Anaheim has not experienced a heavy 25 year cycle storm since 1938, when property damage from high waters throughout the Southland ran high in the millions. SEWERS Portions of major storm drains now completed in various sections of the city will be extended to serve a wider area to relieve critical locations in times of storms and heavy rains. Also new drainage projects will be constructed. These new extensions and projects are designed to carry ed quarters. SEWERS $750,000 The sale of sewer bonds will be made only as the need arises and the money from these bonds will go into a revolving fund to pay for trunk sewer lines in new sections of Anaheim planned for housing and new industrial development. CITY HALL $3,000,000 Construction of a new city hall at the civic center site at Broadway and Harbor Blvd., location of the new police and library buildings. The present city hall, constructed in 1923 for a city of 5,000, is overcrowded and cannot provide offices for all city departments that should be quartered in the city hall. Many of these offices are now scattered throughout the city in purchased or leased. LIBRARY $500,000 Construct a branch library near Euclid Ave., and Ball Rd.; construct another branch library near State College Blvd., and Lincoln missiles, ad added $92.5 million Ave.; and acquire property for a proposed branch library in the hill area east of Olive. Plaza City Council Slams Anaheim Water Prices Charges of "unfair" treatment were hurled at the Anaheim Water Department by the Orange City Council Tuesday night. Anaheim, which recently bought the Dyke Water Co., is serving 230 Orange residents and charging them $6.50 per month for water while their residents pay $4.50 for the same service. When Dyke firm was serving them the charge was $3 per month. FATHER OF “ONE-MILLION” OF Orange County’s one-million gratulated by C. M. Featherly Supervisors. Mr. De Bano, Audrey became parents to De six ounce boy, who was born Hospital. Anaheim Millionth The Orange County Population Research Committee selected Orange County's millionth resident on Monday morning. The new resident is 8 lb. 6 oz. Derek Fran De Bano, who was born at 12 a.m. at Martin Luther Hospital Anaheim. According to the attending physician, B. L. Tesman, M.D., both the child and mother, Mrs. Audri De Bano are doing fine. The Bano's, who reside in the City Anaheim have three other children, Anthony age 10, Brenda and Craig 7. The De Banos reside at Houston St. The proud father, Raymond Bano is employed as a bus driver for the Metropolitan Transit r Growth Put Before A Council Accused of Scrapping ANAHEIM Gaze Established in 1870 Home City Paper of Fabulous DISNEYLAND Pay your Newsboy only 25¢ Per Month Volume 91—No. 60 10 Pages Anaheim, California, Thursday, Oct. 3, 1963 Here's City D Are F With a bond election u the Editor of the Gazette MR. ORANGE COUNTY — Derek De Bano who found fame upon his birth Monday morning when Orange County designated him as the one-millionth resident sleeps peacefully in Martin Luther Hospital while his proud mother, Audrey looks on admiringly. Derek was the first child born Monday, Sept. 10 the same time Orange County population reached one million mark according to county officials. The new resident is eight pounds four ounces and a resident of Anaheim. County supervisor Wm. Hirstein told the De Bono's they are still young enough to be parents of fast growing Orange County's two-millionth resident. League Urges Curfew That all minors be off the streets between 10 p.m. and 6 a.m. is the basis of a proposed curfew ordinance passed and recommended to every municipality in Orange County by the "Curfew Committee" of the Orange County League of California Cities. The proposed ordinance requires that "it be unlawful for any minor under the age of 18 to enter the premises." Your OK Needed When the citizenry of the munity like Anaheim votes proval for a facility, this not mean that the financing project has been completed only signifies the approving the willingness of you, the voter, to borrow on a term basis to pay for a n cility. Three major problems re THER OF "ONE-MILLIONTH" — Raymond De Bano, father Orange County's one-millionth resident, is shown being consulted by C. M. Featherly, chairman of the County Board of Survivors. Mr. De Bano, an Anaheim bus driver, and his wife rey became parents to Derek Frank De Bano, an eight pound ounce boy, who was born Monday 12:01 a.m. at Martin Luther Hospital. Anaheim Infant is Millionth Resident Orange County Population Branch Committee selected Or County's millionth resident Sunday morning. The new resides 8 lb. 6 oz. Derek Frank no, who was born at 12:01 at Martin Luther Hospital in am. Dringing to the attending physician B. L. Tesman, M.D., both old and mother, Mrs. Audrey no are doing fine. The De rey who reside in the City of Anaheim have three other children Anthony age 10, Brenda 9, Craig 7. De Banos reside at 2535 St. proud father, Raymond De is employed as a bus driver Metropolitan Transit Au. Thority in Los Angeles, where he has been employed for 10 years. De Bano drives the Santa Ana to Los Angeles route. The family has lived in Orange County for the last 7½ years; they are formerly from Oklahoma. During the night's vigil, the Committee followed the progress of twenty-three prospective mothers. In the final analysis, sixteen were initially considered for the selection; seven did not arrive during the night. The father and the name of Mr. One Million were presented to the Board of Supervisors Tuesday morning. The runners-up arrived at 12:37 a.m., 2:28 a.m. and 3:00 a.m. respectively. That all minors be off the streets between 10 p.m. and 6 a.m. is the basis of a proposed curfew ordinance passed and recommended to every municipality in Orange County by the "Curfew Committee" of the Orange County League of California Cities. The proposed ordinance requires that "it be unlawful for any minor under the age of 18 years to loiter, or play upon public streets, other places, or trespass on private property between those hours." It also provides that it be unlawful for any parent or guardian to leave any minor under 14 years old at home or any other place without the supervision of "a competent and responsible person" between the hours of 10 p.m. and 6 a.m. Exceptions If accompanied by his parent or guardian, or if a minor is on an emergency errand, or engaged in employment which makes it necessary to be in the streets between 10 p.m. and 6 a.m., the "off the street" clause would not apply, according to James W. Hock, committee chairman. If passed in Anaheim, many school social activities would have to be curtailed. Each violation of the proposed ordinance would constitute a misdemeanor under provisions of the leagues proposed ordinance. Your OK Needed When the citizenry of the munity like Anaheim vote proval for a facility, this not mean that the financing project has been completed only signifies the approval the willingness of you, the voter, to borrow on a term basis to pay for a mility. Three major problems result (1) The local government an immediate lump sum of the cost to pay the cost of construction of the facility. (2) If need know the cost of such money amount and rate of interest paid on the loan), and (3) The money is to come from. Generally, at this stage officials will seek the assistance of a financial advisor and an organized firm of municipal attorneys to assist in the plan of a municipal bond issue. Bids On Bonds After putting the recommendations of these expert advisors effect, the commercial bank investment bankers perform important role in bringing out the successful financing of rural projects. The investment banker, mercial bank bond department as the case may be, upon indication of the issuing community for the bond issue and usual one offering the community lowest cost of money is awaive the bond issue. Underwriters The underwriters, as they called, in turn plan to reseel bonds to the public with their making a profit. The purchase of the bond by an underwriting group vides the community with lump sum necessary for a construction of the facility. A community had tried to sell Here's How City Debts Are Financed By EDSEL NEWTON With a bond election upon us, bonds by itself, such a lump sum the Editor of the Gazette turned might not have been available for Rezoning Action Denounced By DOUGLAS HUFF Reaction to the rezoning of the Dowling property in the northeast industrial area for apartments by the City Council mounted this week. The City of Placentia bitterfly attacking it, along with both the Anaheim Chamber of Commerce Board of Directors and Ambassadors Club flaying the decision. The directors have voted unanimously to endorse the Anaheim Planning Department's "Industrial Areas Reanalysis" which asked the retention of the present alignment of acreage outlined in the proposed General Plan. "It appears that when a lot of money is involved the question of what is good for the city is disregarded," the Ambassadors Club stated. Fear More Requests Meanwhile Placentia city officials said that the rezoning of said property, located near and adjacent to prime industrial land in the City of Placentia, would result in innumerable requests for re- City Debts Are Financed By EDSEL NEWTON With a bond election upon us, the Editor of the Gazette turned to Investment Bankers Association of America to remove the mystery from the financing of public facilities such as Anaheim's current program, Francis S. McComb, vice chairman, came to our rescue from his Los Angeles office. The editor confesses that he has never emerged into the full light on this subject, although he has written about municipal affairs for many years. So he asked McComb: "What's the citizen's role in providing the financing for the Anaheim program?" McComb took pains to enlighten the inquirer. 'Mystery' To Some To some, how these things are one may be complete mystery; in the other hand, you may rey, "That's why I pay taxes." Your answer is correct as far it goes. Generally, such community improvements are first proposed to the local citizenry and then placed on the ballot for approval at election time. Depending upon the law in a particular scale, a majority vote may be sufficient or a two-thirds vote required. In some areas, the administra- tors officers of a community may give the authority to finance some of the sought after or pro-posed projects without the vote of the people. Your OK Needed When the citizenry of a com- munity like Anaheim votes approval for a facility, this does not mean that the financing of the project has been completed. It only signifies the approval and willingness of you, the citizen, the voter, to borrow on a long-term basis to pay for a new fa-ility. Three major problems remain: bonds by itself, such a lump sum might not have been available for some unknown time, possibly delaying the construction of the proposed facility for many months. Simple IOU Now you may ask, "What is a municipal bond?" A municipal bond in the simplest of terms is an I.O.U. It is the state, city, town or school district's promise to repay a set amount of money at a fixed rate of interest for the use of the money for a specified period of years. Municipal bonds could in some ways be compared with a mortgage. It is similar to the debt that an individual creates when purchasing a home through such a loan. You may ask, "Why municipal bonds?" Spread Burden Financing through municipal bonds is necessary simply because to try to repay the cost of such facilities would be too burdensome, if not impossible in most cases, for a community to bear through taxation in any one year. Bonds for a particular facility which mature at different times in the future provide the issuing authority — city, town, school district — a chance to stagger its payments by spreading them well into the future. Not only does such an arrangement prove itself financially feasible it also lifts an undue load from the current group of taxpaying citizens and distributes it, in effect, to the community's future taxpayers — their children and their children's children, who will be the users of the new facility. This is as it should be, for most of the facilities provided through municipal financing will be in use for several generations. TAX EXEMPT Not to be overlooked is the fact that the interest earned on municipal bonds is exempt from all pres- tent Federal taxes and in many cases proposed General Plan. "It appears that when a lot of money is involved the question of what is good for the city is dis-regarded," the Ambassadors Club stated. Fear More Requests Meanwhile Placentia city officials said that the rezoning of said property, located near and adjac- cent to prime industrial land in the City of Placentia, would result in innumerable requests for rezoning for residential use throughout the entire area, both in Anaheim and Placentia. The decision in question granted tentative apartment zoning to Robert Dowling on a $30-acre parcel of land bounded by Placentia-Yor-, ba Blvd., Dowling St. and Orange-thorpe Aves. Plans Pending Action by the Council increased the value of the land by $500,000 and the action will be finalized as soon as E. A. Raulston of the Heritage Construction Co., proposed developers of the land, present satisfactory plans for the $4.5 million condominium project. "A break-through by rezoning any of the parcels which are within or near the perimeter of this industrial land would only result in a deluge of such requests," the directors said "It would destroy the "integrity" of such property which in years past has made Anaheim the leading industrial city in Orange County." Upset Plans" A Letter "urgently recommending retention of industrial zones as they presently exist will be sent to the Council. The Ambassadors charged that the decision has "completely upset plans for a northeast industrial area." "We are back to the same place we were five years ago," they said. "To average people who don't know the circumstances it appears that it was an under-the-counter deal," one Ambassador charged angrily. The Ambassador's concern was evident when they grilled Planning Commission Chairman Bob Mungall about the effects of the Council action overturning the Commission's decision. Mungall was the guest speaker, discussing the role of the Chambers Corp. Your OK Needed When the citizenry of a community like Anaheim votes approval for a facility, this does not mean that the financing of the project has been completed. It signifies the approval and willingness of you, the citizen, the voter, to borrow on a long-term basis to pay for a new facility. Three major problems remain: 1. The local government needs immediate lump sum of money to pay the cost of construction at the facility. (2) If needs to now cost such money (the amount and rate of interest to be paid on the loan), and (3) Where money is to come from generally, at this stage, City officials will seek the assistance of a financial advisor and a recruited firm of municipal bondorneys to assist in the planning of a municipal bond issue. Bids On Bonds After putting the recommendations of these expert advisors into effect, the commercial banks and investment bankers perform their important role in bringing about successful financing of municipal projects. The investment banker, commercial bank bond department, the case may be, upon invitation of the issuing community, bid the bond issue and usually offer the community the best cost of money is awarded bond issue. Underwriters The underwriters, as they are led, in turn plan to resell the bonds to the public with the hope making a profit. The purchase of the bond issue can underwriting group proclaims the community with the hope sum necessary for actual destruction of the facility. If the community had tried to sell the municipal bonds are issued in four major categories — general obligation (as with Anaheim), special tax bonds, revenue bonds and the new Housing Authority bonds. General obligation bonds are secured by the pledge of full faith, credit and taxing power for payment. Where the issuer's taxing power is limited by establishment of a maximum rate the bonds, while remaining a general obligation, become "limited tax bonds." Up To Voter There you have the criteria for bonded indebtedness of your city. It's up to you to determine whether Anaheim will keep abreast of the times by properly financing utilities expansion, a branch library to meet the needs of an increasing population and a City Hall worthy of Anaheim, or whether the community will continue to grow without adequate facilities. Tax Exempt Not to be overlooked is the fact that the interest earned on municipal bonds is exempt from all present Federal taxes and in many cases from taxes of the issuing state. This is important to you, the taxpayer, for this tax-exemption feature generally makes it possible for a community to obtain a lower rate of interest on its bond; lower than otherwise would be available if it were to seek other types of financing. And, of course, the ultimate investor who owns these tax exempt bonds is likewise benefited. Ambassadors said "it appears there is little use for the Planning Commission if the Council can disregard the opinion of experts as they did." Placentia City officials in a letter to the Council protesting the zoning change said that the "people of the Placentia School District have supported bond issues to acquire land and construct schools to serve the people of the school district. School Needed Based on the general plans of both Anaheim and Placentia, the rezoning of this parcel alone would require on additional elementary school. This would not only create additional tax burden for the people in the school district, but would also tend to encourage further residential encroachment into the industrial area. Placentia officials said. Poor Area' They claimed that the proposed development is in a very poor area for the following reasons: It is immediately adjacent to (Continued on Page 2)