When the board has authorized the sale of refunding bonds at less than par value and has determined that it is necessary or advisable that an amount be made available to pay interest on the refunding bonds from the date of sale to the date of maturity of the bonds to be refunded, the board shall declare whether it is necessary or advisable that a supplemental assessment be levied to raise the amounts required under the provisions of subdivisions (a) and (b) of Section 52560, or either thereof.
Levy of AssessmentsSupplemental Assessments
Section § 51400
This law explains that if a board decides to sell refunding bonds for less than their face value, and they find it's necessary to cover interest payments from the sale date to when the original bonds mature, they have to decide if they should impose an extra assessment to raise the needed funds.
refunding bonds sale of bonds par value
Section § 51401
This law states that if the board believes it's beneficial for the district, they can prepare and certify a list for a supplemental assessment following certain guidelines.
If the board determines that it is for the best interest of the district that the supplemental assessment be levied, it shall prepare and certify an assessment list for the supplemental assessment in the form prescribed by Section 51239 of this division.
board decision district interest supplemental assessment
Section § 51402
This law dictates that a supplemental assessment can only be up to 10% of the main amount of refunding bonds being sold. Additionally, it can include the amount needed to cover interest payments on those bonds until the original bonds are due.
The amount of the supplemental assessment shall not exceed 10 percent of the principal of the refunding bonds to be sold, plus the amount to be raised by the supplemental assessment to pay interest on the refunding bonds to the date of maturity of the bonds to be refunded.
supplemental assessment principal limit refunding bonds
Section § 51403
This law states that a supplemental assessment is an extra charge applied only to properties that already have an outstanding assessment for bond payments. The extra charge is distributed proportionally based on the current assessment amount on each parcel.
The amount of the supplemental assessment shall be levied only upon the parcels upon which an assessment is then outstanding for payment of the bonds to be refunded and shall be levied on such parcels in proportion to the amounts then assessed thereon under the outstanding assessment.
supplemental assessment outstanding assessment property parcels
Section § 51404
This law explains that certain rules about filing and handling assessment lists also apply to a specific type of list, with a few exceptions. These lists don't need to be made in duplicate, and a copy doesn't need to be kept at the district office. If someone wants to challenge, change, or cancel a supplemental assessment, they must do so within five days after it's filed with the county treasurer.
The provisions of Article 1 of this chapter relating to the filing of assessment lists, hearings thereon and approval thereof, and actions to correct, modify, or annul the same apply to assessment lists prepared pursuant to this article, except:
(a)CA Water Code § 51404(a) Assessment lists prepared pursuant to this article are not required to be prepared in duplicate.
(b)CA Water Code § 51404(b) A copy of the assessment list need not be retained in the district office.
(c)CA Water Code § 51404(c) Actions for the correction, modification or annulment of a supplemental assessment must be commenced within five days after the assessment list has been filed in the office of the county treasurer.
assessment lists duplicate preparation district office retention
Section § 51405
This law states that when a new additional assessment (extra charge) has been decided upon and recorded, it needs to be paid immediately. If it's not paid by a certain date, which is at least five days before any planned sale of refunding bonds, it is considered overdue.
When a supplemental assessment has been levied, approved, and filed, it shall be called for immediate payment and shall become delinquent by declaration made in the resolution at a specified date at least five days prior to the date fixed for the sale of the refunding bonds.
supplemental assessment additional charge immediate payment
Section § 51406
There must be at least 30 days between when payment is requested and when it becomes overdue.
At least 30 days shall elapse between the date of call and the date of delinquency.
payment request delinquency date 30-day period
Section § 51407
This law states that the additional assessment, known as a supplemental assessment, won't have any interest added to it. It must be paid using US currency.
The supplemental assessment shall not bear interest and shall be payable only in lawful money of the United States.
supplemental assessment no interest lawful money
Section § 51408
This section requires that each landowner in a district be notified about any additional tax assessments on their property. The notification must be delivered in a specific way, as detailed in another section, 51519.
Notice of the supplemental assessment and of the call thereon shall be served upon each owner of land in the district in the manner prescribed in Section 51519.
supplemental assessment landowner notification property tax assessment
