2005 California Public Resources Code Sections 5788-5788.25 Article 9. Finance

5788.  On or before July 1 of each year, the board of directors
shall adopt a preliminary budget that shall conform to the accounting
and budgeting procedures for special districts contained in
Subchapter 3 (commencing with Section 1031.1) of, and Article 1
(commencing with Section 1121) of Subchapter 4 of Division 2 of Title
2 of the California Code of Regulations.  The board of directors may
divide the preliminary budget into categories, including, but not
limited to:
   (a) Maintenance and operation.
   (b) Employee compensation.
   (c) Capital outlay.
   (d) Interest and redemption for indebtedness.
   (e) Restricted reserve for capital outlay.
   (f) Restricted reserve for contingencies.
   (g) Unallocated general reserve.
5788.1.  (a) On or before July 1 of each year, the board of
directors shall publish a notice stating all of the following:
   (1) That it has adopted a preliminary budget that is available for
inspection at a time and place within the district specified in the
notice.
   (2) The date, time, and place when the board of directors will
meet to adopt the final budget and that any person may appear and be
heard regarding any item in the budget or regarding the addition of
other items.
   (b) The board of directors shall publish the notice at least two
weeks before the hearing in at least one newspaper of general
circulation in the district pursuant to Section 6061 of the
Government Code.
5788.3.  At the time and place specified for the meeting, any person
may appear and be heard regarding any item in the budget or
regarding the addition of other items.  The hearing on the budget may
be continued from time to time.
5788.5.  On or before August 30 of each year, after making any
changes in the preliminary budget, the board of directors shall adopt
a final budget.  The board of directors shall forward a copy of the
final budget to the auditor of each county in which the district is
located.
5788.7.  At any regular meeting or properly noticed special meeting
after the adoption of its final budget, the board of directors may
adopt a resolution amending the budget and ordering the transfer of
funds between categories, other than transfers from the restricted
reserve for capital outlay and the restricted reserve for
contingencies.
5788.9.  (a) In its annual budget, the board of directors may
establish a restricted reserve for capital outlay and a restricted
reserve for contingencies.  When the board of directors establishes a
restricted reserve, it shall declare the exclusive purposes for
which the funds in the reserve may be spent.  The funds in the
restricted reserve shall be spent only for the exclusive purposes for
which the board of directors established the restricted reserve.
The reserves shall be maintained according to generally accepted
accounting principles.
   (b) Any time after the establishment of a restricted reserve, the
board of directors may transfer any funds to that restricted reserve.
   (c) If the board of directors finds that the funds in a restricted
reserve are no longer required for the purpose for which the
restricted reserve was established, the board of directors may, by a
four-fifths vote of the total membership of the board of directors,
discontinue the restricted reserve or transfer any funds that are no
longer required from the restricted reserve to the district's general
fund.
5788.11.  On or before July 1 of each year, the board of directors
shall adopt a resolution establishing its appropriations limit and
make other necessary determinations for the following fiscal year
pursuant to Article XIII B of the California Constitution and
Division 9 (commencing with Section 7900) of Title 1 of the
Government Code.
5788.13.  The auditor of each county in which a district is located
shall allocate to the district its share of property tax revenue
pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code.
5788.15.  On or before July 1 of any year, the city council of a
city which is located wholly or partially within a district may adopt
a resolution ordering the transfer of funds from the city to the
district in an amount equal to the entire or partial amount of
property tax revenue that would have been allocated to the district
from the territory that is located both in the city and the district.
  The city shall file certified copies of its resolution with the
district and the county auditor.  Pursuant to Section 96.8 of the
Revenue and Taxation Code, the county auditor shall compute and
implement an effective tax rate reduction.  A city's decision to pay
funds to a district in lieu of property tax revenues is effective
only for the fiscal year for which it is made.
5788.17.  (a) A district may accept any revenue, money, grants,
goods, or services from any federal, state, regional, or local agency
or from any person for any lawful purpose of the district.
   (b) In addition to any other existing authority, a district may
borrow money and incur indebtedness pursuant to Article 7 (commencing
with Section 53820), Article 7.5 (commencing with Section 53840),
Article 7.6 (commencing with Section 53850), and Article 7.7
(commencing with Section 53859) of Chapter 4 of Part 1 of Division 2
of Title 5 of the Government Code.
5788.19.  A local agency may loan any of its available funds to a
district.
5788.21.  (a) A district may acquire any necessary real property by
borrowing money or purchasing on contract pursuant to this section.
That indebtedness shall be in addition to any bonded indebtedness
authorized by the voters.
   (b) The amount of indebtedness shall not exceed an amount equal to
two times the actual income from property tax revenues received
pursuant to Section 5788.13 for the fiscal year preceding the year in
which the indebtedness is incurred.  Any indebtedness shall be
repaid within 10 years from the date on which it is incurred.  An
indebtedness shall bear interest at a rate which shall not exceed the
rate permitted under Article 7 (commencing with Section 53530) of
Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code.
   (c) Each indebtedness shall be authorized by a resolution adopted
by a four-fifths vote of the total membership of the board of
directors and shall be evidenced by a promissory note or contract
signed by the chair and the secretary or the clerk of the board of
directors.
5788.23.  (a) All claims for money or damages against a district are
governed by Part 3 (commencing with Section 900) and Part 4
(commencing with Section 940) of Division 3.6 of Title 1 of the
Government Code.
   (b) All claims against a district shall be audited, allowed, and
paid by the board of directors by warrants drawn on the treasurer.
   (c) As an alternative to subdivision (b), the board of directors
may instruct the county auditor to audit, allow, and draw his or her
warrant on the county treasurer for all legal claims presented to him
or her and authorized by the board of directors.
   (d) The treasurer shall pay the warrants in the order in which
they are presented.
   (e) If a warrant is presented for payment and the treasurer cannot
pay it for want of funds in the account on which it is drawn, the
treasurer shall endorse the warrant, "NOT PAID BECAUSE OF
INSUFFICIENT FUNDS" and sign his or her name and the date and time
the warrant was presented.  From that time until it is paid, the
warrant bears interest at the maximum rate permitted pursuant to
Article 7 (commencing with Section 53530) of Chapter 3 of Part 1 of
Division 2 of Title 5 of the Government Code.
5788.25.  (a) The board of directors shall provide for regular
audits of the district's accounts and records pursuant to Section
26909 of the Government Code.
   (b) The board of directors shall provide for the annual financial
reports to the Controller pursuant to Article 9 (commencing with
Section 53890) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
Government Code.