By July 10th each year, the district board must give a written estimate to the county supervisors and auditor, detailing the funds needed for the district's purposes in the next fiscal year. This includes any necessary reserves for the first six months of the following year and ensures timely payment of any bond debts.

This law requires an annual financial estimate to ensure the district can cover all its expenses. These expenses include the district's incidental costs, the cost of water management projects for the next year, and any required repairs or maintenance. It also covers outstanding debts that are due soon, reserves for the first half of the next fiscal year, and legal or engineering costs for future actions or procedures.

If a district has sold bonds, the board must estimate each year how much money is needed to cover both the principal and interest on those bonds due in the coming fiscal year, as well as the early part of the next fiscal year. This includes ensuring there is enough money before additional tax revenues are available. The estimate should ensure there is always enough to pay back the bondholders on time.

If bonds are approved but not yet sold, and the board thinks they'll sell them before the end of the next fiscal year, they need to include in their annual budget an estimate of the money required to pay any principal and interest that will be due on those unsold bonds both in the upcoming fiscal year and early in the following fiscal year. This ensures there is enough money to cover costs until the tax revenue collected later can be used to pay these expenses.

If a special assessment has been approved by the district, the board needs to specify the yearly installment amount for that assessment in its annual budget planning.

This section talks about how the board can estimate an annual budget for building or acquiring things like settling basins, wells, dams, reservoirs, and other water storage or distribution systems. These might include canals and ditches, and the rights to use land for them.

This law limits how much money can be collected in property taxes within a specific district for certain years. Normally, this tax cannot exceed $0.0025 per dollar of the property's assessed value. However, with voter approval, it can increase to $0.005 per dollar. Elections to decide on this increase follow standard voting procedures. These limits do not affect special assessments or taxes used to pay off bonds.

If money from bonds isn't enough to cover the cost of buying or building a project's infrastructure in a district, an extra property tax can be charged.

This extra tax is limited to one mill ($0.001) for every dollar of land value and can only be applied for up to five years.

However, only one such extra tax can be in place at any given time.

This law involves how a district that extends into multiple counties should allocate its total annual budget. The board must divide the total estimate based on the value of the land in each county. This value is taken from the most recent assessed property values as adjusted by the county supervisors. Once the division is done, each county's board of supervisors and auditor must receive a written notice indicating their specific portion of the total budget.