Amount Of Assessments Generally - Levy - Water Code - CA

Section § 25650

Every year, within 15 days after finishing their work as a board of equalization, each district's board must set an annual assessment on the land within the district. This is to ensure there is enough money to cover the interest and principal payments on all outstanding bonds. This includes interest and principal payments due before the end of the next calendar year, as well as anticipated interest on bonds yet to be issued. However, if there's an alternate method for paying these bond debts allowed by law, the board doesn't have to impose this levy.

Each district by its board each year within 15 days after the close of its session as a board of equalization shall levy an annual assessment upon the land within the district in an amount sufficient to raise all of the following:

(a) Interest due or that will become due on all outstanding bonds of the district and interest which the board believes will become due on district bonds authorized but not sold, all respectively before the close of the next ensuing calendar year.

(b) Principal of all bonds of the district that have matured or that will mature before the close of the next ensuing calendar year.

To the extent that provision is otherwise made as permitted by law for the payment of bond principal and interest, levies for principal and interest pursuant to this section need not be made.

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Section § 25651

If there's a plan for making regular payments on certain types of bonds, including those aimed at paying down old debt (refunding bonds), then each year's budget must set aside a specific amount for this purpose. This includes both paying interest and eventually paying off the principal amount of the loans, sometimes by putting money into a savings account called a 'sinking fund'.

The amount put aside each year may be adjusted if there are extra funds already available elsewhere. Essentially, the law ensures that the necessary payments on these bonds are planned and covered every year.

(a) If a refunding bond plan or modification of it provides for the raising of a fixed amount each year to be applied to the payment of interest on or redemption of refunding bonds in the manner provided in the refunding plan or modification of it, the annual assessment shall include a levy in the amount required to be raised by assessment in that year pursuant to the plan or modification of it.

(b) If the proceedings in connection with the issuance of refunding bonds or modification of them provides for the raising of an amount to be paid annually into a sinking fund to pay the principal or interest of the refunding bonds, the annual assessment shall include a levy in an amount sufficient to provide the sinking fund payments for the current year. The amount required to be raised for the sinking fund shall be reduced by the amount of surplus funds from other sources in the sinking fund in excess of the amount required to be therein at the time of levying the current annual assessment.

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Section § 25652

This section explains that each year, a district must levy enough money to cover specific expenses for the following calendar year. This includes payments for property leases or contracts, contracts for power or fuel needed to pump water for irrigation, all due warrants, and any district obligations that have been turned into legal judgments.

The annual assessment shall also include a levy sufficient to pay all of the following:

(a) Sums due or that will become due from the district before the close of the next ensuing calendar year on account of rentals or charges for property acquired by the district under lease or contract.

(b) Sums due or that will become due from the district before the close of the next ensuing calendar year on account of contracts for power or fuel for the pumping of water for irrigation within the district, the payment of the cost of which power or fuel has not been provided for in any other manner.

(d) All obligations of the district which have been reduced to judgment.

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Section § 25653

This law allows a board to determine an annual levy to cover several expenses for a district.

First, they can set aside money for a depreciation fund for replacing or rebuilding certain parts of the district's infrastructure.

Second, up to 4% of the total land value in the district can be assessed for maintenance and operation costs for the next year.

Third, another 4% can be levied for any other district needs.

Lastly, up to 1% of the land's assessed value can go into a bond fund to either buy back district bonds or prepare for upcoming bond payments.

The annual assessment may include a levy sufficient to raise any or all of the following:

(a) The amount that the board determines is necessary for a depreciation fund for the replacement or reconstruction of any specific units of its works.

(b) The amount that the board determines is necessary, not to exceed 4 percent of the aggregate value of the land according to the latest equalized assessment, and not otherwise provided for, to pay for the maintenance and operation of the district for the ensuing calendar year.

(c) The amount that the board determines is needed to be raised by assessment for any other district purposes not exceeding 4 percent of the aggregate value of the land according to the latest equalized assessment.

(d) An amount not exceeding 1 percent of the total assessed value of the land that the board deems proper to pay into the bond fund to be used for the purchase of bonds of the district not yet due or for payment into a fund to pay such bonds as they become due.

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Section § 25654

This law allows for an annual assessment or charge on land that was added to an existing district after the district was formed. This charge is meant to cover any financial obligations specific to that newly included land as they become due.

The annual assessment may include a levy on land included by inclusion proceedings subsequent to formation of the district sufficient to pay the obligations as they accrue assumed by the included land in the proceedings including it.

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Section § 25655

This law allows a district to use money it earns from specific charges, instead of or in addition to property taxes, to fund its activities for the next year. These charges are set and collected under a different rule, Section 22280.

A district may in lieu either in whole or in part of levying the annual assessments for district purposes use any revenue derived prior to or during the next enusing calendar year from charges which the district may fix and collect pursuant to Section 22280.

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Section § 25656

When setting the annual assessment for land in improvement or distribution districts, the board must add two things to the assessment. First, any installment due that year because of an earlier improvement or distribution district assessment. Second, any extra amount the board believes is needed to operate the district's works for the next year.

At the time of levying the annual assessment, there shall be added by the board to the annual assessment on land within any improvement district or distribution district within any district:

(a) The installment, if any, for which the land is liable in that year by reason of an improvement district or distribution district assessment levied pursuant to Chapter 1 or 2 of Part 7 or Part 6.5 of this division.

(b) An amount which the board may consider necessary for the operation of the works in or for the improvement district or distribution district for the ensuing year.

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