A district may incur a bonded indebtedness for any purpose for which the board is authorized to expend the funds of the district, including any works, property, or rights, contract or otherwise, acquired under or pursuant to the provisions of Chapter 5 (commencing with Section 74570) of Part 5 of this division, or the refunding of any obligations incurred pursuant to that chapter.
BondsIn General
Section § 74790
This law allows a district to take on debt through bonds to pay for things it is allowed to spend on, like projects or property. This includes paying off previous debts from similar projects.
bonded indebtedness district spending debt financing
Section § 74791
If a district issues bonds, or if bonds are issued for any part of the district, the money to pay back these bonds, including both the loan amount and the interest, usually comes from charges on the land in that district. However, they can also be paid from charges on all types of property in the district if certain procedures are followed.
Bonds issued by a district, and bonds issued for any improvement district therein, shall be payable, both principal and interest, from assessments upon the lands in the district or improvement district, as the case may be, unless proceedings have been taken substantially as provided in this division for such bonds to be payable from assessments levied upon all real property in the district or in the improvement district, as the case may be.
bonds district bonds improvement district
Section § 74792
This law explains how a district can issue bonds that are paid off through assessments (a type of tax) on all real property within the district. If the district board decides this is how the bonds will be paid, or if it's already required when creating the district, they must say this in the resolution when calling for a bond election. The election notice also needs to mention it. If at least two-thirds of voters approve during the election, then all real property in the district will be taxed to pay back the bond's principal and interest.
Bonds of the district may be issued in the manner provided in this chapter payable, both principal and interest, from assessments levied upon all real property in the district in the manner provided in this division for the levy of assessments upon land only.
If the board determines that the bonds shall be payable from assessments upon all such real property, or if the proceedings for the formation of the district require that the bonds be so payable, the board shall so state in the resolution calling the bond election, and the notice of the election shall contain a statement to that effect. If the bonds receive the necessary two-thirds vote at the bond election, then they shall be payable from assessments upon all real property in the district, and such real property shall be subject to taxation for the payment of principal and interest of such bonds.
district bonds real property assessments bond election
