The legislative body of any city may determine that serial bonds, term bonds, or both, shall be issued as provided in this division to represent and be secured by assessments to pay the cost of any work or improvement in any of the streets, avenues, lanes, alleys, courts, places, or public ways of the city, or in, over, or through any property or rights-of-way owned by the city authorized by the Improvement Act of 1911 (Division 7 (commencing with Section 5000)), or by the Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000)), or to pay the cost of any other work or improvement charged and assessed upon real property pursuant to any other law. The legislative body may not issue bonds secured by assessments levied pursuant to subdivision (b) of Section 10312 to pay administrative costs.
Part 3DETERMINATION TO ISSUE BONDS
Section § 8570
This law allows city governments to decide whether to issue certain types of bonds, like serial or term bonds, to fund work or improvements on city streets and other public areas. These bonds are secured by assessments collected from property owners benefiting from the improvements. The bonds can be issued under specific Improvement Acts, but cannot be used to cover administrative costs under certain conditions.
serial bonds term bonds assessments public improvements city streets property assessments Improvement Act of 1911 Municipal Improvement Act of 1913 real property infrastructure funding assessment-secured bonds public ways financial instruments city government funding bond issuance restrictions
Section § 8571
This section outlines what a legislative body must include in its statement of intent when deciding to issue bonds for work or improvements. It specifies that the body must declare the issuance of bonds, detail the interest rate or its cap, and include a specific determination as per another section (Section 8769).
If the legislative body determines that bonds shall be issued as provided in this division to represent the expense of any proposed work or improvement, it shall, in the resolution of intention to do the work, do all of the following:
(a)CA Streets and Highways Code § 8571(a) Declare that bonds shall be issued pursuant to Division 10 (commencing with Section 8500) to represent the expenses of the proposed work or improvement.
(b)CA Streets and Highways Code § 8571(b) Specify the rate or maximum rate of interest which the bonds shall bear.
(c)CA Streets and Highways Code § 8571(c) State the determination of the city pursuant to Section 8769.
bonds issuance interest rate specification work expenses improvement expenses resolution of intention legislative body requirements bond interest rate Division 10 Section 8769 determination municipal improvements financing city determination for bonds public works funding
Section § 8571.3
This law allows a legislative body to decide that bonds they issue can't be refinanced before a certain date, which must be within ten years of the bond's issue date. However, there are exceptions to this rule. These exceptions include advancing the bond's maturity or redeeming and paying off bonds through new assessment procedures that clear existing liens on properties within the assessment district.
(a)CA Streets and Highways Code § 8571.3(a) The legislative body may determine that bonds issued pursuant to this division shall not be subject to refunding pursuant to the procedures of Division 11 (commencing with Section 9000) or Division 11.5 (commencing with Section 9500) until a date specified in the format of the bond pursuant to Section 8652. This date shall not be more than ten years after the issuance date of the bond.
(b)CA Streets and Highways Code § 8571.3(b) This determination shall not apply to, or in any manner limit, advancement of the maturity of any bond or bonds pursuant to the procedures of Part 8 (commencing with Section 8680), Part 9 (commencing with Section 8700), Part 11 (commencing with Section 8750), or Part 11.1 (commencing with Section 8760).
(c)CA Streets and Highways Code § 8571.3(c) This determination shall not apply to, or in any manner limit, the redemption and payment of any bonds pursuant to subsequent assessment proceedings which provide for the payment in full of all amounts necessary to eliminate any fixed special assessment liens previously imposed upon any assessment parcel included in the new assessment district.
bonds refunding ten-year limit bond redemption bond maturity assessment proceedings special assessment liens assessment district bond issuance legislative body decision advancement of maturity redemption and payment Section 8652 Division 11 new assessment district
Section § 8571.5
This law allows a local government body to decide if bonds issued for a project can be refunded, meaning reissued under new terms. If they choose to do so, they must declare their intention in a resolution and outline specific conditions, such as the maximum interest rate and maturity period for the new bonds. They must also state that any changes in property assessments due to the refunding will be evenly distributed. If certain conditions are met, they can proceed with the refunding process without any additional steps.
The legislative body may determine that bonds issued pursuant to this division may be refunded under specified conditions. If the legislative body so determines, it shall, in the resolution of intention to do the work, include all of the following:
(a)CA Streets and Highways Code § 8571.5(a) A declaration that bonds proposed in the resolution may be refunded.
(b)CA Streets and Highways Code § 8571.5(b) The specific conditions under which the bonds may be refunded, including a maximum interest rate and maximum number of years to maturity of the refunding bonds.
(c)CA Streets and Highways Code § 8571.5(c) A statement that any adjustment to assessments resulting from the refunding will be done on a pro rata basis.
The refunding shall be accomplished pursuant to Division 11.5 (commencing with Section 9500), except that, if, following the filing of the report specified in Section 9523 and any subsequent modifications of the report, the legislative body finds that each of the conditions specified in the resolution of intention is satisfied and that the adjustments to assessments are on a pro rata basis, the legislative body may approve and confirm the report and may, without further proceedings, authorize, issue, and sell the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5.
bond refunding maximum interest rate maturity period pro rata assessment adjustment legislative resolution refunding conditions property assessments local government bonds refunding bonds approval Division 11.5 Chapter 3 bond issuance Section 9523 report legislative body decisions conditions for refunding interest rate limits
Section § 8572
This law requires that bonds be described in detail in certain documents related to street improvements. If the project falls under the Improvement Act of 1911, the description must be in the assessment given to the contractor. For projects under the Municipal Improvement Act of 1913 or other laws, the description must be in both the prepared assessment and the notice of its recording.
A similar description of the bonds shall be inserted in the assessment issued by the street superintendent to the contractor under the Improvement Act of 1911, or in the assessment prepared by the street superintendent and in the notice of recording the assessment if the work is done under the Municipal Improvement Act of 1913 or other law.
bonds description assessment document street superintendent contractor assessment Improvement Act of 1911 Municipal Improvement Act of 1913 street improvements notice of recording public works projects construction bonds street construction assessment preparation municipal improvements
Section § 8573
This section talks about how a notice should be prepared when issuing serial bonds for unpaid assessments. It specifies that these bonds can have a set interest rate and outlines how they're issued following specific procedures in the Improvement Bond Act of 1915. The bonds will mature a specific number of years after they are issued, starting from a specific date in September.
The bond declaration in the resolution of intention, assessment, and notice of recording the assessment may be substantially in the following form:
“Notice is hereby given that serial bonds to represent unpaid assessments, and to bear interest at the rate of not to exceed ____ percent per annum, will be issued hereunder in the manner provided by Division 10 of the Streets and Highways Code, the Improvement Bond Act of 1915, and the last installment of such bonds shall mature ____ years from the second day of September next succeeding 12 months from their date.”
serial bonds unpaid assessments bond declaration interest rate mature years Improvement Bond Act of 1915 notice of recording bond issuance procedures Streets and Highways Code resolution of intention assessment notice maturity date assessment bond
