The district may from time to time incur a bonded indebtedness as provided in this chapter to pay the cost of acquiring, constructing or completing the whole or any portion of any transit facilities, or for acquiring any works, lands, structures, rights, equipment, or other property necessary or convenient to carry out the objects, purposes, or powers of the district. The total amount of bonds issued and outstanding shall not exceed twenty percent (20%) of the assessed value of the taxable property of the district as shown by the last equalized assessment roll of the County of Orange.
BondsIssuance
Section § 40225
This law allows a district to take on debt by issuing bonds to pay for transit-related projects. These could include building or improving transit facilities or acquiring property or equipment needed for these projects. However, the total amount of bonds they can issue cannot exceed 20% of the taxable property's assessed value in the district, as recorded in the county's latest assessment roll.
bonded indebtedness transit facilities property acquisition
Section § 40226
This section explains that if a district's board decides by a two-thirds vote that it's in the public's interest to acquire or build new transit facilities or related projects that are too expensive to cover with regular income, they can propose a bond measure. This bond measure allows them to raise money by borrowing, which needs to be approved by voters in a special election.
Whenever the board by resolution passed by vote of two-thirds of all its members determines that the public interest or necessity demands the acquisition, construction, or completion by the district of any transit facilities or any works, lands, structures, rights, equipment, or other property necessary or convenient to carry out the objects, purposes, or powers of the district, the cost of which will be too great to be paid out of the ordinary annual income and revenue of the district, it may at any subsequent meeting of the board provide by ordinance for the submission of the proposition of incurring a bonded indebtedness for the purpose set forth in the resolution to
the voters of the district at a special bond election held for that purpose.
public interest bonded indebtedness transit facilities
Section § 40231
This law requires that when a special bond election is called, the ordinance must specify the election date, how the election will be conducted, and how citizens can vote on whether to approve the debt. The ordinance should clearly explain why the debt is needed, estimate costs of the proposed public transit projects, state the total debt amount, and specify the interest rate, which cannot be more than 6% per year, payable either semiannually or annually in the first year and thereafter semiannually.
The ordinance calling a special bond election shall fix the date on which the election will be held, and the manner of holding the election and of voting for or against incurring the indebtedness. It shall also recite the objects and purposes for which the indebtedness is proposed to be incurred, the estimated cost of the transit facilities, works, lands, structures, rights, equipment, or other property proposed to be acquired, constructed, or completed, the amount of the principal of the indebtedness to be incurred therefor, and the maximum rate of interest to be paid on the indebtedness, which shall not exceed 6 percent per annum, payable semiannually or annually the
first year and thereafter semiannually.
special bond election debt approval public transit projects
Section § 40232
This law allows voters to consider multiple proposals to take on debt for different projects or goals during the same election.
Propositions for incurring indebtedness for more than one object or purpose may be submitted at the same election.
propositions incurring indebtedness multiple objects
Section § 40233
This law states that special bond elections can be held separately or combined with other elections where district voters can participate. If combined, the rules for the special bond election must still be followed. However, details about voting precincts, polling places, and election officers don't have to be included in the ordinance calling for the election. Instead, these details can match those from the election it is combined with, simply by referencing the relevant ordinance or notice.
Any special bond election may be held separately, or may be consolidated with any other election authorized by law at which the voters of the district may vote. If a special bond election is consolidated with any other election, the provisions of this chapter setting forth the procedure for the calling and holding of the special bond election shall be complied with, except that the ordinance calling the election need not set forth the election precincts, polling places, and officers of election, but may provide that the precincts, polling places, and officers of election shall be the same as those set forth in the ordinance, notice, or other proceedings calling the
election with which the special bond election is consolidated, and shall refer to the ordinance, notice, or other proceedings by number and title, or by other definite description.
special bond election consolidated election voting procedures
Section § 40234
This law states that once an ordinance is published, there is no need to provide any additional notice about an election.
The ordinance shall be published, and no other notice of election need be given.
ordinance publication election notice publication requirement
Section § 40235
This law requires the board to follow specific rules found in another part of the Elections Code when conducting a bond election. These rules ensure that the process is consistent with established election procedures.
The board shall comply with Article 3 (commencing with Section 9160) of Chapter 2 of Division 9 of the Elections Code, the provisions of which are applicable to any bond election held pursuant to this article.
board compliance bond election Article 3
Section § 40236
In order to approve the issuance of bonds, at least 60% of the voters participating in the election must vote in favor of it.
The votes of sixty percent (60%) of all voters voting on the proposition at the election are required to authorize the issuance of bonds under this chapter.
bond issuance voter approval election requirement
Section § 40237
If a proposal to issue bonds doesn't get enough votes in a special election, the board can't hold another special election for a similar bond proposal for six months unless a petition is signed by enough voters—15% of those who voted in the last general statewide election—asking for another vote on a similar bond proposal.
If the proposition submitted at a special bond election fails to receive the requisite number of votes, the board shall not within six months after the election hold another special election for the submission of a proposition of incurring a bonded indebtedness substantially the same as the proposition voted upon at the prior election unless a petition signed by voters within the district equal in number to at least 15 percent of the total vote cast at the last general statewide election is filed with the board, requesting that the proposition, or a proposition substantially the same, be submitted at an election to be called for that purpose.
special bond election bond proposition bonded indebtedness
