If any issue of refunding bonds are made to mature at one time, the board prior to or at the time of their issuance shall provide for the creation of and payments into a sinking fund for the payment of the bonds in amounts determined by the board.
Refunding BondsRefunding Bond Sinking Fund
Section § 25060
This law says that if a board decides to issue refunding bonds that all mature at the same time, they must set up a sinking fund. The sinking fund is a savings account where they deposit money regularly to ensure they can pay back the bonds when they come due. The board decides how much money to put into this fund.
refunding bonds mature at one time board responsibilities
Section § 25061
The board has the authority to change the amount of sinking fund payments whenever it deems necessary.
The amount of sinking fund payments may be modified from time to time by the board.
sinking fund payments modification board authority
Section § 25062
If the sinking fund has at least $10,000, the board can announce they want to redeem it by publishing a notice in a local newspaper for three weeks in a row. They can also choose to publish it in other newspapers.
Whenever the sinking fund contains at least ten thousand dollars ($10,000), the board may publish notice of redemption at least once a week for three successive weeks in some newspaper published in the office county and may publish it in any other newspaper.
sinking fund redemption notice newspaper publication
Section § 25063
This section outlines what must be included in a notice when a district is redeeming its bonds. The notice must include three things: the total amount available for redeeming the bonds, an invitation for people to submit offers to sell the district's own outstanding refunding bonds back to it, and details about when and where these offers will be opened.
The notice shall set forth all of the following:
(a)CA Water Code § 25063(a) The amount available for the redemption of the bonds.
(b)CA Water Code § 25063(b) An invitation for sealed proposals for the sale to the district of any of its outstanding refunding bonds for the payment of which the sinking fund was created.
(c)CA Water Code § 25063(c) The time and place when the proposals will be opened.
bond redemption sealed proposals sinking fund
Section § 25064
This law states that all proposals submitted in response to a public notice must be opened by the board during an open meeting at the time mentioned in the notice, or if the meeting is postponed, at the new adjourned time.
All proposals received in response to the notice shall be opened by the board in open meeting at the time specified in the notice or at a time to which the meeting is adjourned.
proposals public notice open meeting
Section § 25065
This section allows the board the option to reject any or all proposals they receive at their discretion.
Any or all of the proposals may, in the discretion of the board, be rejected.
board discretion proposal rejection board decision-making
Section § 25066
If a district tries to sell bonds and doesn’t get any good offers or doesn’t sell enough to use up all the money available, it can buy those bonds privately using money from its savings meant for paying off those bonds.
If no bids are received or if the bids received and accepted are not sufficient to exhaust the money on hand and available for the purpose, the district through its board may purchase at private sale with any available money in the sinking fund any bonds for the payment of which the sinking fund was created.
private sale of bonds sinking fund district board authority
