Article 6Bonds

Section § 19520

Explanation

This law lets the board of trustees of a library district decide if they want to ask the voters whether they should issue bonds. They can do this on their own or if at least 50 residents and taxpayers ask them to. The money from these bonds can be used to buy land, build and furnish library buildings, improve the grounds, pay off existing debt, or refinance any current debts.

The board of trustees of any library district may, when in their judgment it is deemed advisable, and shall, upon a petition of 50 or more taxpayers and residents of the library district, call an election and submit to the electors of the district, the proposition of whether the bonds of the district will be issued and sold for the purpose of raising money for any or all of the following:
(a)CA Education Code § 19520(a) The purchase of suitable lots.
(b)CA Education Code § 19520(b) Procuring plans and specifications and erecting a suitable building.
(c)CA Education Code § 19520(c) Furnishing and equipping the building and fencing and ornamenting the grounds, for the accommodation of the public library.
(d)CA Education Code § 19520(d) Any or all of the purposes of this chapter.
(e)CA Education Code § 19520(e) Liquidating any indebtedness incurred for the purposes.
(f)CA Education Code § 19520(f) Refunding any outstanding valid indebtedness, evidenced by bonds or warrants of the district.
library district board of trustees bonds issuance election public library funding purchase of lots building construction furnishing library grounds improvement indebtedness debt refinancing petition by residents taxpayers electors district voters
(Enacted by Stats. 1976, Ch. 1010.)

Section § 19521

Explanation

This law section states that when an election is held to issue bonds, it must follow the specific procedures set out in another part of the legal code. This includes how the election is organized, how votes are counted, and how results are formally announced.

The bond election shall be called and conducted and the results thereof canvassed, returned, and declared in the manner provided in Chapter 3 (commencing with Section 5300) of Part 4 of this division.
bond election election procedures canvassing results calling elections returning results declaring election results Chapter 3 procedures Part 4 regulations Section 5300 conducting bond elections election process voter canvassing procedural requirements result declaration public finance elections
(Amended by Stats. 1977, Ch. 36.)

Section § 19522

Explanation

This law requires that when a school board plans to have a bond election, they must clearly specify in their proposal how much money they want to raise, the value of each bond, the interest rate, and how long it will take to pay back the bonds.

The board of trustees shall set forth in the resolution calling for a bond election the amount and denomination of the bonds, the rate of interest, and the number of years that all or any part of the bonds are to run.
bond election board of trustees resolution amount of bonds denomination interest rate repayment period school district bonds bond issuance term of bonds
(Amended by Stats. 1977, Ch. 36.)

Section § 19524

Explanation

If the election results show that two-thirds of voters support issuing bonds, the board officially records this and reports it to the supervising board of supervisors. The board of supervisors then issues the district's bonds as detailed in the election. The money to repay these bonds, along with interest, is raised through taxes on property within the district.

If it appears that two-thirds of the votes cast at the election were cast in favor of issuing the bonds, the board shall enter the fact upon its minutes and shall certify all the proceedings to the supervising board of supervisors. Thereupon the board of supervisors shall issue the bonds of the district, in the number and amount provided in the proceedings, and the district shall be named on the bonds. The bonds shall be paid out of the building fund of the district.
The money for the redemption of the bonds and the payment of interest thereon shall be raised by taxation upon the taxable property in the district.
issuing bonds election results two-thirds majority board of supervisors building fund taxation interest payment property taxes district funds bond redemption bond proceedings supervising board taxable property
(Amended by Stats. 1987, Ch. 1452, Sec. 127.)

Section § 19525

Explanation

This law limits the amount of bonds a district can issue based on the assessed property value in that district. Before the 1980–81 fiscal year, districts couldn't issue bonds exceeding 5% of their property value. After the 1981–82 fiscal year, this limit was reduced to 1.25% of the district's property value, according to the latest county assessment.

The total amount of bonds issued shall not exceed 5 percent of the assessed value of the property of the district, prior to the 1980–81 fiscal year and shall not exceed 1.25 percent of the assessed value of the district beginning after the 1981–82 fiscal year, as shown by the last equalized assessment roll of the county or counties in which the district is situated.
bonds property value assessed value limit district bonds fiscal year 1980-81 fiscal year 1981-82 equalized assessment roll bond issuance cap county assessment bond limits property assessment district funding restrictions financial regulations debt capacity local government bonds
(Amended by Stats. 1980, Ch. 1208, Sec. 30.)

Section § 19526

Explanation

This law states that the supervising board of supervisors must decide how bonds and their interest coupons look and determine when the bond's main amount (principal) needs to be paid back. The repayment can be set for up to 40 years from when the bond starts.

The supervising board of supervisors by an order entered upon its minutes shall prescribe the form of the bonds and of the interest coupons attached thereto, and shall fix the time when the whole or any part of the principal of the bonds shall be payable, which shall not be more than 40 years from the date thereof.
supervising board of supervisors bonds interest coupons bond repayment 40-year limit principal payment order entered upon minutes form of bonds time of payment prescribe form bond issuance financial obligations bond maturity
(Enacted by Stats. 1976, Ch. 1010.)

Section § 19527

Explanation

This law says that library district bonds can only have a maximum interest rate of 6% and can be paid once or twice a year. The local board of supervisors decides how these bonds are sold, but they can't sell them for less than their face value. Money from selling the bonds goes into a special county fund for library improvements and can only be used for those purposes.

The bonds shall not bear a greater amount of interest than 6 percent, to be payable annually or semiannually. The bonds shall be sold in the manner prescribed by the board of supervisors, but for not less than par, and the proceeds of the sale thereof shall be deposited in the county treasury to the credit of the building fund of the library district, and shall be drawn out for the purposes for which the bonds were issued as other library money is drawn out.
library district bonds interest rate limit annual or semiannual interest board of supervisors bond sale procedure par value county treasury library building fund bond proceeds restricted use of funds
(Enacted by Stats. 1976, Ch. 1010.)

Section § 19528

Explanation

Each county's board of supervisors must impose a tax on the property within the district when setting taxes for county purposes. This tax is to cover the interest and part of the principal of any bonds for that year, ensuring enough is collected to pay the annual interest and steadily reduce the bond's principal over time. Specifically, in the first half of the bond term, the tax should cover the interest, and in the latter half, cover both the interest and a principal portion calculated based on the remaining years of the bond.

The board of supervisors of each county in which any part of the district is situated, at the time of making the levy of taxes for county purposes, shall levy a tax for that year upon the taxable property in the district, at the equalized assessed value thereof for that year, for the interest and redemption of the bonds. The tax shall not be less than sufficient to pay the interest of the bonds for that year, and such portion of the principal as is to become due during the year. In any event the tax shall be high enough to raise, annually, for the first half of the term the bonds are to run, a sufficient sum to pay the interest thereon, and during the balance of the term, high enough to pay the annual interest and to pay, annually, a proportion of the principal of the bonds equal to a sum produced by taking the whole amount of the bonds outstanding and dividing it by the number of years the bonds then have to run.
board of supervisors levy tax interest and redemption bonds taxable property equalized assessed value principal payment county purposes annual interest proportion of principal term of bonds
(Enacted by Stats. 1976, Ch. 1010.)

Section § 19529

Explanation

This law section states that any money collected through taxes for a library district must go into the county treasury and can only be used to pay off bonds related to the library. These bond payments, which include both the original amount (principal) and any extra cost (interest), are managed by the county treasurer and only occur when authorized by the county auditor. Additionally, as the bonds and their attached interest coupons are paid, the county auditor will cancel them and file them with the county treasurer.

All money levied, when collected, shall be paid into the county treasury to the credit of the library district, and shall be used for the payment of principal and interest on the bonds, and for no other purpose. The principal and interest on the bonds shall be paid by the county treasurer, upon the warrant of the county auditor, out of the fund provided therefor. The county auditor shall cancel and file with the county treasurer the bonds and coupons as rapidly as they are paid.
library district funding county treasury bond payments principal and interest county treasurer county auditor warrants coupon cancellation tax money allocation library bonds fund management
(Enacted by Stats. 1976, Ch. 1010.)

Section § 19530

Explanation

If a group of bonds hasn’t sold within six months of being offered, the library district involved can ask the board of supervisors to remove and cancel those bonds.

Whenever any bonds issued under this article remain unsold for the period of six months after having been offered for sale in the manner prescribed by the supervising board of supervisors, the board of trustees of the library district for or on account of which the bonds were issued, or of any library district composed wholly or partly of territory which, at the time of holding the election authorizing the issuance of the bonds, was embraced within the district for or on account of which the bonds were issued, may petition the supervising board of supervisors to cause the unsold bonds to be withdrawn from the market and canceled.
unsold bonds six months offered for sale supervising board of supervisors board of trustees library district withdraw bonds cancel bonds bond issuance election authorizing bonds market cancellation public finance bond sale process petition for withdrawal
(Enacted by Stats. 1976, Ch. 1010.)

Section § 19531

Explanation

When a majority of school board trustees sign a petition, the supervising board of supervisors must schedule a hearing within 30 days. They also need to publicly announce the time, place, and purpose of the hearing.

Upon receiving the petition, signed by a majority of the members of the board of trustees, the supervising board of supervisors shall fix a time for hearing the petition, which shall be not more than 30 days thereafter, and shall cause a notice, stating the time and place of hearing, and the object of the petition in general terms, to be published as provided in this chapter.
petition board of trustees supervising board of supervisors hearing 30 days notice time and place publication object of the petition school board hearing schedule public announcement trustees majority board meeting notice requirements
(Enacted by Stats. 1976, Ch. 1010.)

Section § 19532

Explanation

This law section explains that during a scheduled hearing, the board of supervisors will listen to arguments for or against canceling unsold library district bonds. If they find canceling the bonds benefits the library district, they will officially record an order to cancel them, and those bonds, along with the vote that approved them, will become invalid.

At the time and place designated in the notice for hearing the petition, or at any subsequent time to which the hearing is postponed, the supervising board of supervisors shall hear any reasons that are submitted for or against the granting of the petition, and if they deem it for the best interests of the library district named in the petition that the unsold bonds be canceled, they shall make and enter an order in the minutes of their proceedings that the unsold bonds be canceled. Thereupon the bonds, and the vote by which they were authorized to be issued, shall cease to be of any validity whatever.
library district unsold bonds board of supervisors hearing petition cancel bonds order in minutes invalidate bonds vote authorization hearing postponement
(Enacted by Stats. 1976, Ch. 1010.)