Water Code, 1943

Some water districts may issue revenue warrants if their facilities mainly serve agricultural water supplies and at least 51% of assessable acreage is zoned and developed for agricultural uses.

Revenue warrants may be secured by district revenues, and the board may place specified revenues under a lien or charge to secure principal and interest, but not assessments.

Revenue warrants must bear interest at no more than 8% per year, and the board may set whether interest is paid annually, semiannually, or partly both.

Revenue warrants must mature on a schedule set by the board, and in any case no later than 10 years after issuance.

Revenue warrants may be made redeemable before maturity on terms set by the board.

Revenue warrants may be sold publicly or privately, on terms set by the board, and may be sold below par value; however, the sale price cannot produce more than an 8% average annual yield to the purchaser.

Revenue warrants cannot be issued or sold until the board authorizes the issuance by a four-fifths vote.

If the board gets a qualifying petition within 30 days after adopting a revenue warrant resolution, it must call an election and put the resolution to district voters.

The board may decide the form, denomination, execution, registration and exchange privileges, and payment locations for revenue warrants.

The board may create special funds, a reserve fund, and appoint a fiscal agent for revenue warrants.

The board may make covenants in a resolution authorizing revenue warrants.

The board may let revenue warrant interest be paid for up to one year from the sale proceeds, if this is included in the resolution authorizing the warrants.

A revenue warrant holder may use mandamus or another appropriate proceeding to compel specified district duties, unless the authorizing resolution provides otherwise.

A district may not issue revenue warrants under this chapter in any fiscal year if the total would exceed $4,000,000.

This chapter adds to a district’s existing power to borrow money, incur debt, and issue warrants, and it is not a limit on that power.

A district may borrow money and incur debt through board action, without holding an election, unless Section 36402.1 provides otherwise.

The district may incur indebtedness under this chapter for authorized spending purposes.

District indebtedness under this chapter must be documented by warrants or negotiable notes, with payment times set by the board and interest capped at 8% per year.

Warrants or negotiable notes under this chapter are not valid unless voters approve them by majority vote at an election called by the board, except as provided in Section 36407.1.

The election notice must be given, the election must be held, and the result must be determined as nearly as practicable in the manner used for bond elections.

The district may use proceeds from warrants or negotiable notes to buy back or redeem outstanding warrants or negotiable notes.

Warrants must be issued in the district’s name only after a resolution is adopted by a four-fifths vote of all board members.

The board may authorize certain warrants to be called and redeemed before maturity, but the resolution must set the redemption notice method and redemption prices, and the warrants must state this on their face.

The board prescribes the form and signature of bearer coupons, and those coupons may be attached to warrants issued under this chapter to evidence interest.

Warrants or negotiable notes issued under this chapter must be offered for public sale after notice inviting sealed bids, and the sale cannot happen until 10 days after the notice is published or posted.

The board must include required debt-payment amounts in its annual estimate, and the board of supervisors must set an assessment rate enough to cover those payments and any special fund amounts.

A district may issue warrants or negotiable notes payable within five years without voter approval, and those obligations must be paid from annual assessments and other district revenues.

The district may issue warrants or negotiable notes payable at a future date to obtain funds or property for any lawful district purpose, but the total payable in any one year cannot exceed 0.25% of the district land valuation from the last equalized assessment roll.

Warrants or negotiable notes must earn interest set by the board, capped at 8% per year.

A district may issue warrants or negotiable notes for certain pre-assessment indebtedness, the board may set interest up to 8% per year, and the notes must be payable by the first July 1 after the first annual assessment is levied.

A district may borrow against unsold authorized bonds and issue bond anticipation notes, but the notes’ maturity cannot exceed five years from the original issue date.

A district may borrow against unsold authorized improvement-district bonds and issue bond anticipation notes, but the notes cannot exceed the bond principal and must mature within five years.

This section adds to a district’s existing borrowing powers and lets it issue negotiable notes under this chapter instead of warrants.

This chapter sets out an alternative method for forming certain improvement districts and for issuing bonds and warrants for them.

Improvement districts may be formed within a district, and the district may issue bonds and warrants for them as this chapter allows.

A district may issue bonds and warrants for an improvement district, but only if carrying out the purpose benefits the lands in that improvement district.

If the board thinks an improvement district should be formed, it must adopt a resolution of intention covering specified items.

Notice of the hearing must be published and posted at least 14 days before the hearing.

The board must hold the hearing fixed by the resolution of intention, including if the hearing is continued to another time or place.

At the hearing, the board may adopt a resolution proposing changes to the proposed improvement district.

The board may not order modifications unless the proposed changes are published once in the same newspaper used for the resolution of intention, at least 14 days before the hearing.

A hearing on proposed modifications, and any continuation of that hearing, may be scheduled at the same time and place as a continued hearing on the resolution of intention, and the two hearings may be conducted concurrently.

After the hearings, the board may form the improvement district by resolution, and the resolution must state the estimated expense and give the district a standard name.

After the improvement district is formed, the board may call a special bond election, and any resulting bonds are limited by the section’s rules.

Special bond elections in an improvement district must be called, noticed, held, conducted, and canvassed substantially the same way as bond elections for the entire district, unless this chapter provides otherwise.

Bonds for an improvement district must be issued and sold like the district’s other bonds, with special rules for general obligation bonds and revenue bonds.

The board must include enough money in the annual estimate to cover bond and warrant principal and interest, plus operating expenses, unless the board has already made provision for those payments as allowed by law.

This section lets the Santa Margarita Water District board split improvement district number four into two areas for bond-repayment calculations, but only after getting an independent report and making required findings.

The board may collect charges for making water available to certain landholders or occupants in an improvement district.

Rules in this division for district bonds, warrants, and assessments also apply to improvement-district bonds and warrants, unless inconsistent with this chapter.

If improvement-district general obligation bonds have been issued, the treasurer must set up separate bond accounts and use each account only to pay that district’s bonds and interest.

After an improvement district is formed, additional contiguous or noncontiguous land may be added on terms fixed by the board.