Purposes, Services, and FacilitiesCapital Financing
Section § 61125
If the board of directors decides they don't have enough money to build, fix, or replace necessary facilities or to pay off existing debt, they can take on new debt and raise money using this chapter or other laws.
Section § 61126
This law section explains that a board of directors can decide to take on debt through general obligation bonds to buy or improve real estate. They should follow specific procedures outlined in the Public Resources Code.
However, there's a limit: the total bond debt cannot exceed 15% of the total assessed value of all taxable property in the district when the bonds are issued.
Section § 61127
Section § 61128
This law allows a district to fund public projects and raise money by selling bonds under the rules of the Mello-Roos Community Facilities Act of 1982.
Section § 61129
This section allows a district to charge benefit assessments, which are fees for improvements, to finance public facilities. These assessments must follow the rules of Article XIII D of the California Constitution and can be based on several historic acts, like the Improvement Act of 1911, the Improvement Bond Act of 1915, the Municipal Improvement Act of 1913, and the Landscaping and Lighting Assessment Act of 1972. Additionally, any new laws made after January 1, 2006, can also be used to justify these assessments.
Section § 61130
This law allows a district to buy and upgrade land, buildings, or equipment. It can also issue special limited obligation notes to help finance these purchases and improvements.
Section § 61131
A district in California can borrow money by issuing promissory notes for any legal reason, like current expenses. However, they can only borrow up to 5% of their last year's revenues at a time. This debt must be paid back within five years and the interest rate must be within legal limits.
The decision to borrow must be approved by at least four-fifths of the board of directors and needs to be documented with a promissory note signed by both the board president and the general manager.