Construction bonds may be authorized for the purposes of acquiring necessary irrigation, drainage, and power development and distribution works, acquiring the necessary property for these works, acquiring any property necessary for the purposes of the district, and otherwise carrying out the provisions of this division.
BondsConstruction Bonds
Section § 24950
This law section allows for the use of construction bonds to fund projects related to irrigation, drainage, power development and distribution, and acquiring property needed for these projects. It also permits using bonds for acquiring any property necessary for fulfilling the district's goals.
construction bonds irrigation projects drainage works
Section § 24951
This law section says the board must estimate the amount of money needed for construction by issuing bonds at specific times. They should do this right after the district is formed and whenever the previous bond money runs out or isn't enough for construction needs.
The board shall at any of the following times estimate the amount of money it is necessary to raise for the purposes for which construction bonds may be issued:
(a)CA Water Code § 24951(a) As soon after the district has been formed as may be practicable.
(b)CA Water Code § 24951(b) Whenever the board finds that the construction fund raised by the next preceding bond issue is insufficient or has been exhausted by expenditures therefrom and it is necessary to raise additional money for the purposes for which construction bonds may be authorized.
construction bonds estimate amount district formation
Section § 24952
This section mandates that the board conduct surveys, examinations, and create drawings to determine the amount of money that needs to be raised.
The board shall cause any surveys, examinations, and drawings, to be made which will furnish the proper basis for making an estimate of the amount of money necessary to be raised.
surveys examinations drawings
Section § 24953
This law section requires that all surveys, examinations, and drawings are done under the guidance of an experienced engineer, who must certify the work.
The surveys, examinations, and drawings shall be made under the direction of a competent engineer and shall be certified by him.
surveys examinations drawings
Section § 24954
This law section states that plans for infrastructure projects, like surveys and estimates, can be designed so the construction work is done in stages over several years.
The surveys, examinations, drawings, and estimate may provide that the works necessary for a completed project shall be constructed progressively during a period of years.
infrastructure projects construction stages progressive construction
Section § 24955
This section explains that when estimating costs for a construction project, the estimate can include enough money to cover the interest on the construction bonds for up to four years. If the bonds are repaid solely through revenue, the estimate can also include money for a reserve fund. This fund is kept aside from the sale of revenue bonds and is used only to pay the principal and interest if no other money is available.
The estimate may include a sum sufficient to pay the interest on the proposed construction bonds for four years or less and, if the bonds are to be payable solely from revenues, the estimate may also include a sum for a revenue bond reserve fund to be set aside out of the proceeds of sale of revenue bonds to be maintained by revenues and used and withdrawn solely for the purpose of paying the principal of and interest on such bonds in the event that no other funds are available therefor.
construction bonds interest payment revenue bonds
Section § 24955.1
This law allows certain districts, specified in another section, to include in their cost estimates an amount to cover the interest on construction bonds for up to 10 years. This helps finance projects described earlier in the relevant section.
In the case of any district described in Section 20560.2 with respect to construction bonds issued for purposes of financing the works described in that section, the estimate may also include a sum sufficient to pay the interest on the proposed construction bonds for 10 years or less.
construction bonds interest payment financing projects
Section § 24956
This law section requires that any cost estimate for construction work must include the expenses for legally required inspections.
The estimate shall include the estimated cost of inspection required by law of works in course of construction.
construction cost estimate inspection costs works in construction
Section § 24963
This law section explains that if the board approves a project plan and finds it doable, they will decide how much money is needed by issuing bonds. However, these construction bonds can only be issued if approved in a bond election.
The board, if it declares by resolution that the proposed plan of the project is satisfactory and that the plan is feasible, shall adopt an order determining the amount of bonds that should be issued to raise the money necessary to complete the proposed project. Construction bonds in an amount fixed in the order determining the amount in which they should be issued shall not be issued unless their issuance is authorized at a bond election, and the bonds in the amount fixed shall be issued when their issuance is authorized at a bond election.
board resolution project feasibility construction bonds
