The district board shall annually before July 10 prepare a written estimate of the amount of money necessary for the purposes of the district during the ensuing fiscal year.
Pest Abatement DistrictsTaxation
Section § 2870
Every year, before July 10, the district board is required to write an estimate of the funds needed for the district's activities for the upcoming fiscal year.
district board annual estimate fiscal year
Section § 2871
This law instructs the county auditor to distribute property tax revenue to a district according to specific guidelines laid out in another part of the Revenue and Taxation Code.
The county auditor shall allocate to a district its share of property tax revenue pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code.
county auditor district allocation property tax revenue
Section § 2871.5
This law section is about how property taxes are determined for a newly formed district. If the district's petition says taxes should be based on land area, then the tax rate is calculated solely on that. If it says taxes should be based on a mix of area and another factor, the district board will decide the contribution of each factor after a public hearing, which might involve creating different benefit zones. The county assessor must prepare a list showing who owns land in the district and the size of their land, which is used to calculate the tax.
(a)CA Health & Safety Code § 2871.5(a)
If the petition for formation of the district states that the property shall be taxed on the basis of area, the rate shall be based on area of land, regardless of assessed valuation.
(b)CA Health & Safety Code § 2871.5(b)
If the petition for formation of the district states that property shall be taxed on the basis of a combination of area and some other basis, the district board shall, after a public hearing, determine the proportion of each source of revenue, and may consider zones of benefit or other equitable methods of establishing the rate to be charged based on area.
(c)CA Health & Safety Code § 2871.5(c)
The county assessor of each county shall prepare an assessment roll showing the names and addresses and the acreage owned by each person owning land within a district, which roll shall be the basis for the tax provided for in this section.
district formation property tax tax based on area
Section § 2871.7
The district board decides the amount of a tax after holding a public hearing.
After a public hearing, the district board shall determine the rate of the tax.
district board public hearing tax rate determination
Section § 2871.8
If the district board believes it needs more money than it will have in the upcoming fiscal year, it can call an election asking voters to approve a special tax to raise additional funds.
They must announce the election at least four weeks beforehand.
The election doesn't have to use a specific type of ballot, and minor mistakes in the process won't invalidate it as long as it's fair.
The ballot will ask voters if they approve of the district raising a specific tax amount.
If two-thirds of voters approve, the results are sent to the county's board of supervisors, detailing how much more money is needed. If the district is in multiple counties, the extra amount will be divided among them like the original budget was, and each county's officials will get a written statement of their share.
(a)CA Health & Safety Code § 2871.8(a)
Whenever it appears to the district board that the amount of funds required during an ensuing fiscal year will exceed the amount available, the district board may call an election to submit to the electors of the district the question of whether a special tax shall be voted for raising the additional funds, pursuant to Article 3.5 (commencing with Section 50075) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code.
(b)CA Health & Safety Code § 2871.8(b)
Notice of the election shall be published for at least four weeks prior to the election.
(c)CA Health & Safety Code § 2871.8(c)
No particular form of ballot shall be required, nor shall any informalities in conducting the election invalidate it if it is otherwise fairly conducted.
(d)CA Health & Safety Code § 2871.8(d)
At the election the ballots shall contain the words “Shall the district vote a tax to raise the additional sum of ____ ?” or words equivalent thereto.
(e)CA Health & Safety Code § 2871.8(e)
The district board shall canvass the votes cast at the election, and, if two-thirds of the votes cast are in favor of the imposition of the tax, shall report the result to the board of supervisors of the county in which the district is situated, stating the additional amount of money required to be raised. If the district is in more than one county, the additional amount shall be prorated for each county by the district board in the same way that the district’s original total estimate of funds is prorated. The district board shall furnish the board of supervisors and auditor of each county a written statement of the apportionment for each county.
district board election special tax approval election notice requirement
Section § 2871.9
If a district was set up before January 1, 1985, it can ask the board of supervisors to change how it gets funding. This request replaces another petition usually needed. The board must then look into different financing options as explained in a specific part of the law.
Any district formed prior to January 1, 1985, may petition the board of supervisors for a change in the method of financing the district’s operations, as provided in this chapter. The board of supervisors shall accept the petition, in lieu of the petition required by Section 2822.5, and shall proceed to consider changes in the method of district financing consistent with Article 2 (commencing with Section 2210) of Chapter 5.
district financing funding change board of supervisors
Section § 2872
This law section says that taxes and assessments imposed by a particular district are handled the same way as county taxes. They are collected at the same time and in the same manner, and then deposited into the county treasury credited to the district's account.
All taxes and assessments levied under this chapter shall be assessed and collected at the same time and in the same manner as other taxes are collected for county purposes, and shall be paid into the county treasury to the credit of the district.
taxes and assessments county treasury district taxes
Section § 2873
This section states that money from the district can only be taken out of the treasury when the district board issues a warrant, which is a formal authorization for withdrawal.
The funds of the district shall be withdrawn from the treasury upon the warrant of the district board.
district funds withdrawal district board authorization warrant for treasury
Section § 2874
This law allows the county board of supervisors to temporarily move money from available county funds to the district fund. Such transfers can only happen if the board passes a resolution instructing the treasurer to do so. The amount transferred can't be more than 85% of the district's expected taxes and must occur between the start of the fiscal year and the last Monday in April. Any money moved must be paid back to the original fund from the district's incoming tax revenue before any other expenses are paid.
The board of supervisors, from time to time, may order a temporary transfer of money from other available funds in the county treasury to the credit of the district fund. The transfer shall be made only upon resolution adopted by the board of supervisors directing the treasurer to make the transfer. It shall not exceed eighty-five per cent of the taxes accruing to the district, and shall not be made prior to the first day of the fiscal year nor after the last Monday in April of the current fiscal year. Any funds transferred shall be replaced from the taxes accruing to the district before any other obligation of the district is met from those taxes.
temporary transfer of funds county treasury district fund
Section § 2876
If a new district is set up too late in the year to start collecting taxes, the county can loan money to the district so it can pay its expenses. Once the district's taxes are collected, it must repay the county. The county will make sure to include enough in the district's future tax levy to cover this repayment.
Notwithstanding the basis upon which property in the district is taxed, if a district is organized in any year too late for the levy of a tax in that year or in the next ensuing year, the board of supervisors is authorized to transfer funds of the county not immediately needed for county purposes to the district fund to be used for the payment of the expenses of the district until the district’s special assessment tax receipts are available to it. The board of supervisors shall include, in the levy of taxes for the district for the first fiscal year in which a tax may be levied, a sum sufficient to repay to the county the amounts transferred to the district for the portion or portions of the preceding fiscal year or years for which no levy of taxes was made for that purpose. The amounts transferred shall be retransferred to the county treasury from the district fund out of the first available receipts from the tax levy.
district funding tax levy county loan
