Section § 61125

Explanation

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.

Whenever the board of directors determines that the amount of revenue available to the district or any of its zones is inadequate to acquire, construct, improve, rehabilitate, or replace the facilities authorized by this division, or for funding or refunding any outstanding indebtedness, the board of directors may incur debt and raise revenues pursuant to this chapter or any other provision of law.

Section § 61126

Explanation

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.

(a)CA Government Code § 61126(a) Whenever a board of directors determines that it is necessary to incur a general obligation bond indebtedness for the acquisition or improvement of real property, the board of directors may proceed pursuant to Article 11 (commencing with Section 5790) of Chapter 4 of Division 5 of the Public Resources Code.
(b)CA Government Code § 61126(b) Notwithstanding subdivision (a), a district shall not incur bonded indebtedness pursuant to this section that exceeds 15 percent of the assessed value of all taxable property in the district at the time that the bonds are issued.

Section § 61127

Explanation
A board of directors is allowed to fund projects or businesses by issuing revenue bonds according to the guidelines set out in the Revenue Bond Law of 1941.
A board of directors may finance any enterprise and issue revenue bonds pursuant to the Revenue Bond Law of 1941, Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5.

Section § 61128

Explanation

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.

A district may finance facilities and issue bonds pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5.

Section § 61129

Explanation

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.

A district may levy benefit assessments to finance facilities consistent with the requirements of Article XIII D of the California Constitution, including, but not limited to, benefit assessments levied pursuant to any of the following:
(a)CA Government Code § 61129(a) The Improvement Act of 1911, Division 7 (commencing with Section 5000) of the Streets and Highways Code.
(b)CA Government Code § 61129(b) The Improvement Bond Act of 1915, Division 10 (commencing with Section 8500) of the Streets and Highways Code.
(c)CA Government Code § 61129(c) The Municipal Improvement Act of 1913, Division 12 (commencing with Section 10000) of the Streets and Highways Code.
(d)CA Government Code § 61129(d) The Landscaping and Lighting Assessment Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code, notwithstanding Section 22501 of the Streets and Highways Code.
(e)CA Government Code § 61129(e) Any other statutory authorization enacted on or after January 1, 2006.

Section § 61130

Explanation

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.

A district may acquire and improve land, facilities, or equipment and issue securitized limited obligation notes pursuant to Article 7.4 (commencing with Section 53835) of Chapter 4 of Part 1 of Division 2 of Title 5.

Section § 61131

Explanation

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.

(a)CA Government Code § 61131(a) A district may issue promissory notes to borrow money and incur indebtedness for any lawful purpose, including, but not limited to, the payment of current expenses, pursuant to this section.
(b)CA Government Code § 61131(b) The total amount of indebtedness incurred pursuant to this section outstanding at any one time shall not exceed 5 percent of the district’s total enterprise and nonenterprise revenues in the preceding fiscal year. Any indebtedness incurred pursuant to this section shall be repaid within five years from the date on which it is incurred. Any indebtedness incurred pursuant to this section shall bear interest at a rate which shall not exceed the rate permitted under Article 7 (commencing with Section 53530) of Chapter 3 of Part 1 of Division 2 of Title 5.
(c)CA Government Code § 61131(c) Each indebtedness incurred pursuant to this section shall be authorized by resolution adopted by a four-fifths vote of the total membership of the board of directors and shall be evidenced by a promissory note signed by the president of the board of directors and the general manager.