If a court of competent jurisdiction determines that any contract, proceeding, step or action taken, levy made, or any bonds issued under this part are void, invalid, or unenforceable, or if such court shall for any reason enjoin the issuance or payment of any bonds proposed to be issued or paid under the provisions of this part the court shall also determine whether or not any improvement has been made or services rendered by any person in behalf of and for the benefit of the district under any invalid contract or proceeding or under any contract pursuant to which invalid bonds were issued or proposed to be issued, and if so what part, if any, is of a kind that the district might have lawfully authorized.
Joint Highway DistrictsEmergency Bonds
Section § 25490
If a court finds that a district's contract, action, or bonds are invalid or cannot be enforced, the court must also consider if any improvements or services were provided to benefit the district under these invalid actions. The court will then decide what portion of the work or services could have been legally approved by the district.
invalid contracts court determination district improvements
Section § 25491
This law states that if a court determines that improvements were made, services were provided, or necessary property was acquired, it can order a district's board to issue bonds to pay for these things. Additionally, the district's board can issue bonds without a court order if they need to fix any past invalid actions that benefited the district and could have been legally approved.
If the court finds that any such improvement has been made, or services rendered, or necessary rights of way or property acquired, the court shall order the board of directors of the district to take the steps authorized in this chapter for the issuance of bonds to cover the cost of the same. The board of directors of the district may also utilize the provisions of this chapter without order of court when it is necessary to correct any invalid act or proceeding which has resulted in a benefit to the district and which it might have lawfully authorized.
court order district board bonds issuance
Section § 25492
This law aims to make sure that when improvements or services are provided and properties or pathways are acquired, the costs are covered by those who benefit from them. This is done by issuing bonds to pay for these expenses.
It is the purpose of this chapter to make the costs and expenses of all improvements made, or services rendered, and all necessary acquisitions of property or rights of way obtained, under an attempted compliance with and exercise of the powers and rights conferred by this part, payable by the property benefited or to be benefited thereby, by the issuance of bonds as provided in this chapter for the purpose of defraying the costs and expenses thereof.
property improvements service costs benefited property
Section § 25493
This law section requires the board of directors to prepare a report on a proposed bond issue. The report must be made by the district engineer or another qualified person. The report needs to include several key points:
(a) A general statement about what the bond is for and the total amount, which can't be more than the original district charge plus reasonable interest up to 6% annually.
(b) A description of the land benefiting from the bond.
(c) Details of any zones within the district and how much of the bond's cost will be charged to each zone, following specific county percentage limits.
(d) Information about the bonds themselves for the total amount mentioned in the report.
The board of directors shall cause a report on the bond issue proposed under this chapter to be made and filed by the district engineer or some other competent person appointed for that purpose. The report shall contain:
(a)CA Streets And Highways Code § 25493(a) A statement in general terms of what the proposed bond issue is to cover, together with the total amount of the same. The total amount shall not exceed the original charge made against the district for the items included, plus a reasonable interest thereon not to exceed 6 per cent per annum.
(b)CA Streets And Highways Code § 25493(b) A description of the lands benefited by the items for which the bonds are proposed to be issued.
(c)CA Streets And Highways Code § 25493(c) A description of the zones, if any, into which such district is to be divided, and a statement of the amounts (not exceeding the percentages of the total sum established for the several counties within the district under Section 25154 hereof) proposed to be made chargeable against each of such zones.
(d)CA Streets And Highways Code § 25493(d) A description of the bonds to be issued for the total amount set forth in the report.
board of directors bond issue report district engineer
Section § 25494
After the report is filed with the secretary of the board of directors, they must schedule a hearing to discuss the report and notify the public. This notification must be published at least twice in local newspapers that are widely distributed in the area impacted by the proposed bond issues. The final notification must be published at least 20 days before the hearing date.
The report shall be filed with the secretary of the board of directors, who shall thereupon fix a time and place for hearing the report and shall give notice thereof. Notice of the hearing shall be published at least twice in one or more newspapers of general circulation selected by the secretary, from those which are published and circulated within the boundaries of the land within the district which will be benefited by the items for which the bonds are to be issued. The last publication of notice of hearing shall be not less than 20 days prior to the date set for the hearing.
board of directors report hearing public notification
Section § 25495
During a hearing or any continuation of that hearing, anyone with an interest in the matter can show up to voice their opinion on the contents of a report. The board of directors then has the power to approve, change, fix, or adjust the report based on what the evidence shows.
At the time of the hearing, or at any time to which the hearing may be continued, any person interested may appear and be heard upon any of the matters set forth in the report. The board of directors may confirm, revise, correct or modify the report in accordance with the facts found.
hearing interested person board of directors
Section § 25496
After a hearing, the board must make a resolution that states what they found. This decision is then final and cannot be contested by anyone in future proceedings about those findings. If the board doesn't change anything in the report, they will confirm it as their final decision.
At the conclusion of the hearing the board shall adopt a resolution declaring its findings upon the report. When adopted the resolution shall be final and conclusive upon all persons and in all proceedings or actions as to all matters so found. If no changes are made in the report, the board shall declare that the report is confirmed and that declaration shall constitute the findings of the board.
board resolution hearing conclusion final findings
Section § 25497
This law states that bonds issued under this chapter need to generally follow the same rules as the funding bonds described in Chapter 18. These bonds must be paid off in no more than five yearly payments. The money needed to pay back these bonds, both their principal and interest, will be raised and collected just like it is for funding bonds.
The bonds issued under this chapter shall in terms and form conform substantially to the provisions contained in Chapter 18 relating to funding bonds and shall be payable in not more than five annual installments. The annual amounts required for the payment of principal and interest on any bonds issued under this chapter shall be levied and collected in the same manner as the annual amounts required for the payment of principal and interest on funding bonds.
bonds issued annual installments payment of principal
Section § 25498
After a board passes a resolution, the district's treasurer has to issue bonds right away, based on the resolution's instructions. These bonds are formalized on the same date the resolution is made and given to the rightful owners. Once the bonds are issued, you only have 60 days to challenge them in any legal way, whether to cancel them or stop any related taxes or charges.
Upon the adoption of the resolution by the board, the treasurer of the district shall immediately cause bonds to be issued in the amount and manner provided in the resolution. The bonds shall be dated as of the date of the resolution and shall be issued and delivered to the persons entitled thereto. No action or proceeding shall be commenced or maintained after 60 days from the date of their issuance to cancel or set aside the bonds or prevent the payment thereof, or the levy, collection or enforcement of any taxes, assessment taxes or other charges or levies for such payment.
district treasurer bond issuance resolution adoption
