BondsGeneral
Section § 43600
This law defines "an issue of bonds" as the total amount of bonds that city voters have approved through a proposal.
Section § 43601
This law defines what is considered a "municipal improvement" within a city. It includes things like bridges, water facilities, sewers, electricity and lighting plants, municipal buildings, and other structures needed for city functions. The term also covers acquiring land for public use, like civic centers, whether or not there are current plans or funds for developing that land.
Section § 43602
This law allows a city to borrow money if it needs more funds for a municipal project than what is provided by the yearly taxes.
Section § 43602.5
This law allows cities or city/counties to borrow money to fund the seismic strengthening of buildings, including giving loans to both public agencies and private building owners. These loans must keep rental units affordable and require a certified plan for improving seismic safety without demolishing or constructing new buildings. Any money repaid from these loans is to either pay off the borrowed money or fund more loans. These loans create a lien on the property and can be customized by the city in terms of interest rates and duration. Cities must have checked unreinforced buildings and set up rules before using this funding option. Such efforts are not considered a misuse of public money but seen as serving a public benefit, especially for historic buildings which must follow more specific guidelines.
Section § 43603
This law allows a city's planning commission and legislative body to approve a group of municipal improvements as a city plan. Once approved, the legislative body can propose a single bond to fund the entire plan, bypassing the usual rules in Title 7 for creating and approving a city plan.
Section § 43604
This section allows a city plan to include areas designated for public purposes, such as spaces for public buildings like auditoriums and stadiums, as well as parks, streets, transportation facilities, and other improvements that benefit the community.
Section § 43605
This law limits the amount of debt a city can take on for public projects to no more than 15 percent of the total value of all property in the city. The term 'indebtedness' here specifically refers to debt from bonds that are to be repaid through taxes on city properties.
Section § 43606
This law states that a debt is considered to be taken on when bonds are sold and delivered, based on the main amount of those bonds.
Section § 43607
This law section explains that a city can start projects for public improvements if at least two-thirds of its governing members agree it is necessary or beneficial for the public.
Section § 43608
This law allows the legislative body of a city to propose borrowing money through bonds to finance a specific purpose. To do this, they must pass an ordinance by a two-thirds majority vote. The decision to incur this debt is then submitted to the city's qualified voters for approval during a specific election.
Section § 43609
This law says that during an election, voters can be presented with proposals that address multiple issues or goals at the same time.
Section § 43610
This law section explains what must be included in an ordinance about taking on debt for public improvements. It must state why the debt is needed, the expected cost of the projects, and the total amount of debt. It should also mention the interest rate, which can't be more than 8%, and specify the election date, how the election will be conducted, and how people can vote on the debt issue.
Section § 43610.1
This law allows a city's ordinance to include various costs in the estimated price of public improvements. These costs may cover legal fees, bond printing, and costs related to the authorization, issuance, and sale of bonds. If these improvements generate revenue, the ordinance can also cover bond interest during construction and up to 12 months after. Importantly, the bond proceeds can only be used for expenses outlined in the ordinance and can't be spent on anything the city wouldn't normally fund through its regular budget.
Section § 43611
This law explains how a city ordinance should be made public. If there's a local newspaper that publishes at least six days a week, the ordinance needs to be published once a day for at least a week. If the newspaper publishes less often, then the ordinance should appear once a week for two consecutive weeks. When no such newspaper exists, the ordinance must be posted in three public places around the city for two weeks. No other form of notice is required.
Section § 43612
If a bond election is combined with another election, the details like precincts and polling places don't have to be listed separately. Instead, the election can use the same locations and officers as the other election it's combined with. You just need to reference the official notice of that other election—like its ordinance, resolution, or publication details—to show where those details can be found.
Section § 43613
This law section means that unless the ordinance specifies something different, city elections will be run like any other city election.
Section § 43614
This law explains that if a proposition for issuing bonds is put to a vote, at least two-thirds of the voters need to approve it for the bonds to be issued.
Section § 43615
If more than one proposal to take on debt is presented during the same election, the votes for each proposal must be counted individually and not lumped together.
Section § 43616
If voters reject a proposal in an election, the government cannot hold a new vote on a similar proposal for six months. However, if enough voters, specifically 15% of the city population based on the last governor's election, sign a petition, an election can be called before the six-month period ends.
Section § 43617
This law requires the legislative body to decide how bonds and their interest coupons should look and also determine when the bonds will be dated.
Section § 43618
This law section allows the legislative body to split the total amount of a bond issue into multiple groups, each with its own set of issuance dates and payment schedules. However, the maturity dates for each group must still meet the regulations set out in this article.
Section § 43619
This law says that the government must decide when and where bond payments are due. Every year, at least one-fortieth of the bond's principal amount, plus interest on any unpaid amounts, must be paid off.
Section § 43620
This section explains how a legislative body can set up the repayment schedule for bonds they issue. If the bonds are for revenue-generating projects, they can start paying them off up to 10 years after issuing them; for other projects, the repayment must start within 2 years. Each year, at least 1/40th of the total debt should be paid off. Alternatively, payments can be set up as roughly equal yearly amounts of principal and interest, but they can't fluctuate more than 5% from one year to the next. Finally, all bonds must be fully paid off within 40 years.
Section § 43620.1
If you want to check if bonds are legally valid, you can take legal action using the process outlined in Chapter 9, starting with Section 860, in the Code of Civil Procedure.
Section § 43621
This law says that the group in charge of issuing bonds can decide to pay them off early, but only if the bond specifically says it can be redeemed before the date it is due to be paid back, known as maturity.
Section § 43622
Section § 43623
This law states that bonds must be signed by the mayor or another officer who is authorized by a two-thirds vote from the legislative body. Additionally, the city treasurer must also sign it. Finally, the clerk or a deputy clerk must countersign these bonds.
Section § 43624
This law section states that the bond coupons must be numbered in order and signed by the treasurer.
Section § 43625
This law section states that any signatures, other than the ones made by the clerk or the clerk’s deputy, can be created using printing, lithographing, or engraving methods instead of being hand-written.
Section § 43626
If an officer's signature or countersignature is on bonds or coupons, and they leave their position before the bonds are delivered, their signature remains valid as if they were still in office.
Section § 43627
This law explains how bonds can be issued and sold by a government body. Bonds can't be sold for less than their face value. The government must invite bids before selling these bonds and award them to the highest responsible bidder if the bids are satisfactory. If no satisfactory bids are received, the government can either try again with new advertisements or sell the bonds privately.
Section § 43628
This law states that any money from bond premiums and interest must be used to pay off the bond's principal and interest first. The remaining bond money goes into a special fund for specific improvement projects defined in an ordinance. Once the project is complete, any leftover money in that fund should help pay off the bonds. If all bond payments are complete and there's still money left, it should go into the general fund.
Section § 43629
This law allows the local government to deliver bonds at locations outside of their city or state. It also allows them to receive payment for these bonds either in cash or as verified bank funds through the Federal Reserve.
Section § 43630
Three years after a bond election, a governing body can decide by a two-thirds majority vote that any unsold bonds will not be issued or sold. Once they pass the ordinance, those unsold bonds are no longer valid.
Section § 43631
If the local government decides it's not practical or smart to spend money from bonds on their original purpose, they can hold a special election. This election is to ask voters if the money can be used for a different city-related project.
The election process will be the same as when voters initially approved the bond use.
Section § 43632
This law requires the government to collect enough taxes each year to pay off the interest and principal of a bonded debt they owe. They must continue collecting these taxes until the bonds are fully paid or there is enough money set aside to cover future payments.
Section § 43633
If the bonds have more than a year until they mature, the legislative body must collect taxes each year. These taxes cover the interest payments and help set aside funds to repay the bond's principal when it matures.
Section § 43634
This law says that certain taxes, collected just like other city taxes, will be added on top of existing taxes. The money from these taxes can only be used to pay off bonds and their interest.
Section § 43635
This law permits a city to directly handle construction work on municipal improvements funded by bonds. This means the city can buy materials and hire workers without going through the usual contract bidding process.
Section § 43636
If a city teams up with the United States to work on local municipal improvements, the city can give its share of the costs directly to the United States, who will then handle those expenses.
Section § 43637
This law allows a government body to require the treasurer to provide additional financial guarantees, known as bonds, to ensure they responsibly manage and protect public funds.
Section § 43638
This law explains that when a city is making improvements, the city council must set up rules to manage and maintain these projects. They also need to appoint people to handle the construction and operation of the improvements.
In cities with a specific board of public works, that board will take care of these responsibilities.
The city council can hire a qualified person or company to manage the financial aspects related to the bonds for these projects. This financial manager can also act on behalf of city officials in dealing with bonds.