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City responds to ESD 3 petition for judgment on debt
The city of Orange on Wednesday filed a response to the petition filed earlier this month by Orange County Emergency Services District No. 3.
ESD 3 filed the petition seeking a declaratory judgment to compel the city to submit to arbitration regarding the amount of money the city owed the district after it annexed part of the district in February. State law specifies that when a city annexes a part of an emergency services district, it must assume a percentage of the district’s debt equal to the percentage of the district which was annexed. In the case of ESD 3, the city must assume 26.5 percent of the district’s debt.
The point of contention between the city and the district is the point at which the city must assume the portion of the district’s debt; the city contends the law says it must assume the portion of the debt the district had when the city announced its intent to annex, while ESD 3 maintains the city must assume the portion of the debt the district had when the city annexed the portion of the district.
