AssessmentsCapital Outlays

Section § 32221

Explanation

This law allows the board of directors to set up a special fund for large expenses, like equipment or renovations, but they can't use it to add more hospital beds unless they get approval from a designated health planning group.

If they create this fund, they must list the amount needed for this special fund in the budget prepared for the board of supervisors, and this amount needs to fit within certain tax limits.

In some cases, the board of supervisors can impose a tax above the usual limit to fund these expenses, but only if this extra tax is approved by a majority of voters in the district during a special election.

The board of directors may establish a fund for capital outlays; provided, that no part of said fund shall be used for acquisition of additional patient bed capacity by lease or purchase of any hospital buildings or facilities or for new construction of additional patient bed capacity for an existing hospital without the approval of the appropriate voluntary area health planning agency established pursuant to Section 127155. If the fund is established, it shall include in the estimate required to be furnished to the board of supervisors a statement of the amount to be included in the annual assessment for this purpose. The amount to be raised shall be included in the tax limitation prescribed by Section 32203.
Notwithstanding any other provision of law, the board of supervisors may levy a tax in excess of the maximum tax levy specified in Section 32203 to be used for capital outlay if a majority of the district electors voting at an election held for that purpose approve the imposition of the tax.
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Section § 32222

Explanation
The board of directors can move any leftover money that isn't already committed to another purpose into a special fund for building projects or long-term investments at the end of the fiscal year.
At any time after the creation of a capital outlay fund, the board of directors may transfer to such fund any unencumbered surplus funds remaining on hand in the district at the end of any fiscal year.
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Section § 32223

Explanation

This law states that money in a capital outlay fund can only be used for its intended purpose of capital expenses. However, if the board of directors determines with a four-fifths vote that the fund is either unnecessary or has excess money, they can end the fund or transfer the surplus. The extra money can either go towards paying off any outstanding bonds or, if there are no bonds, to cover the district's current expenses.

Whenever a capital outlay fund is established, it shall be used only for such purposes, except the board of directors may, by a four-fifths vote of all members, if it finds that the fund is no longer necessary or that there remain in the fund moneys which are no longer required for such purpose, discontinue the fund or transfer so much thereof as is no longer required for capital outlay purposes to the repayment of any bonds outstanding, or if there are no bonds outstanding, to any fund used for the payment of current expenses of the district.
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