At the time and place fixed for the hearing in the resolution declaring the necessity for incurring the bonded indebtedness, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing.
BondsHearing
Section § 31385
This law states that the board must conduct a hearing at the time and place specified in the resolution about the need to take on bonded debt. If the hearing is delayed, it will occur at the new time and place chosen for the continuation of the hearing.
bonded indebtedness hearing schedule board responsibilities
Section § 31386
This law section states that during a hearing about taking on new debt through bonds, anyone who has an interest, such as property owners within the district, can attend and share relevant information or concerns connected to the need for this debt.
At the hearing any person interested, including persons owning property within the district, may appear and present any matters material to the questions set forth in the resolution declaring the necessity for incurring the bonded indebtedness.
bond hearings bonded indebtedness property owners
Section § 31387
After a hearing, the board must decide, through a resolution, if all or part of the district will gain advantages from achieving the purpose outlined in that resolution.
At the conclusion of the hearing, the board shall by resolution determine whether the whole or part of the district will be benefited by the accomplishment of the purpose stated in the resolution.
district benefit hearing conclusion board resolution
Section § 31388
If the board finds that only part of a water district will benefit from an improvement, they must specify which part will benefit. This specified portion will then be identified as an 'Improvement District' with a unique number and name within the county water district.
If the board determines that the whole of the district will not be benefited, the resolution shall also describe the portion of the district which will be benefited, in a manner sufficient for identification, which portion of the district described in the resolution shall thereupon constitute and be known as “Improvement District No. _______ of _______ County Water District.”
district benefit determination board resolution improvement district identification
Section § 31389
Once an improvement district is created within a larger district, any actions related to holding a bond election or imposing taxes to pay off those bonds and their interest are restricted to only that improvement district and do not affect the broader district.
After the formation of an improvement district within a district pursuant to this article, all proceedings for the purpose of a bond election within the improvement district and for the purpose of taxation for the payment of the bonds and interest shall be limited, and apply only to the improvement district.
improvement district bond election taxation
Section § 31390
This law states that if a board decides that a bond issue will benefit either the entire district or only part of it, that decision is final and cannot be challenged.
The determination of the board that the whole of the district will be benefited by the bond issue or that only a described portion of the district will be benefited by the bond issue is final and conclusive.
bond issue benefits district bond decision final board decision
Section § 31391
This law explains the process a board follows if it decides it needs to take on bonded debt after a determination under Section 31387. First, the board must officially declare that it needs to borrow money and specify why. It must decide whether the debt benefits the entire district or just a part of it, and this area should be clearly described. The board will also outline how much debt it plans to take on, how long it will take to repay (up to 40 years), and the maximum interest rate (8% annually). Finally, the board must decide how to present the borrowing proposal to the voters for approval.
After the board has made its determination pursuant to Section 31387, if it deems it necessary to incur the bonded indebtedness, it shall by resolution state:
(a)CA Water Code § 31391(a) That it deems it necessary to incur the bonded indebtedness.
(b)CA Water Code § 31391(b) The purpose for which the bonded indebtedness will be incurred.
(c)CA Water Code § 31391(c) Either of the following in accordance with its previous determination:
(1)CA Water Code § 31391(c)(1) That the whole of the district will be benefited by incurring the bonded indebtedness.
(2)CA Water Code § 31391(c)(2) That a portion of the district will be benefited by incurring the bonded indebtedness, which portion shall be described as it is described in the resolution of the board made pursuant to Section 31387.
(d)CA Water Code § 31391(d) The amount of debt to be incurred.
(e)CA Water Code § 31391(e) The maximum term the bonds to be issued shall run before maturity, which term shall not exceed 40 years from the date of the bonds or any series thereof.
(f)CA Water Code § 31391(f) The annual rate of interest to be paid which rate shall not exceed 8 percent, payable annually or semiannually.
(g)CA Water Code § 31391(g) The proposition to be submitted to the voters.
bonded indebtedness board resolution debt purpose
Section § 31392
This section explains that when a legislative body is deciding how much debt to take on for a project, it can include various related expenses. These expenses cover all costs related to acquiring, building, improving, or financing the project. It also includes fees for engineering, inspection, legal advice, fiscal agents, and the bond election. Additionally, it encompasses the cost of issuing bonds and the interest expected to accumulate during the construction phase and up until a year after the project is done.
In determining the amount of debt to be incurred, the legislative body may include:
(a)CA Water Code § 31392(a) All costs and estimated costs incidental to or connected with the acquisition, construction, improving or financing of the project.
(b)CA Water Code § 31392(b) All engineering, inspection, legal and fiscal agent’s fees, costs of the bond election and of the issuance of said bonds, and bond interest estimated to accrue during the construction period and for a period of not to exceed 12 months after completion of construction.
debt determination project financing construction costs
Section § 31393
This law allows the board of the Yorba Linda County Water District, by a four-fifths vote, to exempt certain areas within an improvement district from paying the principal, interest, and other amounts due on bonds of the county water district that are not specifically for the improvement district. This can only happen if several conditions are met: the improvement district bonds have been approved by voters, the area proposed for exemption joined the district after the original county bonds were authorized but before the formation of the improvement district, and the area benefits more from the improvement district bonds than from the county bonds. Once resolved, a detailed description of the exempt area must be filed for tax purposes, affecting its recognized financial obligations.
(a)CA Water Code § 31393(a) Any time following the establishment of an improvement district pursuant to this article, the board, by a four-fifths majority vote, may exempt part or all of the territory within the improvement district from liability for payment of principal, interest, and any other amounts which become due on account of any outstanding or then authorized but thereafter issued bonds of the county water district other than bonds issued for the improvement district. The board may adopt a resolution pursuant to this section only if it first makes all of the following findings:
(1)CA Water Code § 31393(a)(1) Bonds for the improvement district have received the voter approval required by this chapter and part or all of the improvement district bonds have been issued to provide benefit to the improvement district.
(2)CA Water Code § 31393(a)(2) The territory for which exemption is proposed was annexed to the district after the bonds of the county water district were authorized and prior to formation of the improvement district.
(3)CA Water Code § 31393(a)(3) The territory proposed for exemption from the county water district bonds receives or will receive greater benefit from the improvement district bonds than it receives or will receive from county water district bonds from which the territory is proposed for exemption.
(b)CA Water Code § 31393(b) When the county water district adopts a resolution pursuant to this section, it shall file it, together with a sufficient description of the territory to be exempted from the bonded indebtedness, in accordance with Section 54902 of the Government Code. The county assessor and the State Board of Equalization shall give the resolution the same effect as a term and condition adopted pursuant to subdivision (c) of Section 56470 of the Government Code; provided, however, the effective date of the resolution for tax purposes shall be determined by the filing date in accordance with Sections 54902 and 54902.1 of the Government Code.
(c)CA Water Code § 31393(c) The provisions of this section apply only to the Yorba Linda County Water District.
Yorba Linda County Water District improvement district bond exemption
