2007 California Health and Safety Code Article 6. Finances

CA Codes (hsc:2070-2079)

2070.  (a) On or before August 1 of each year, the board of trustees
shall adopt a final budget, which 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 trustees may
divide the annual budget into categories, including, but not limited
to:
   (1) Maintenance and operation.
   (2) Employee compensation.
   (3) Capital outlay.
   (4) Interest and redemption for indebtedness.
   (5) Restricted reserve for public health emergencies.
   (6) Restricted reserve for capital and asset preservation.
   (7) Restricted reserve for contingencies.
   (8) Unallocated general reserve.
   (b) The board of trustees shall forward a copy of the final budget
to the auditor of each county in which the district is located.



2071.  (a) In its annual budget, the board of trustees may establish
one or more restricted reserves.  When the board of trustees
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 trustees 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 trustees may transfer any funds to that restricted reserve.

   (c) Notwithstanding any other provision of this section, in a
public health emergency, a board of trustees may, by majority vote of
the total membership of the board of trustees, temporarily transfer
funds from other restricted reserves to the restricted reserve for
public health emergencies.
   (d) If the board of trustees 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 trustees may, by a
four-fifths vote of the total membership of the board of trustees,
discontinue the restricted reserve or transfer the funds that are no
longer required from the restricted reserve to the district's general
fund.


2072.  (a) On or before July 1 of each year, the board of trustees
shall adopt a resolution establishing its appropriations limit and
make other necessary determinations for the following fiscal year
pursuant to Article XIIIB of the California Constitution and Division
9 (commencing with Section 7900) of the Government Code.
   (b) Pursuant to subdivision (c) of Section 9 of Article XIIIB of
the California Constitution, this section shall not apply to a
district which existed on January 1, 1978, and that did not as of the
1977-78 fiscal year levy an ad valorem tax on property in excess of
twelve and one-half cents (.125) per one hundred dollars (0) of
assessed value.



2073.  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.




2074.  (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.



2075.  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.



2076.  (a) All claims against a district shall be audited, allowed,
and paid by the board of trustees by warrants drawn on the county
treasurer.
   (b) As an alternative to subdivision (a), the board of trustees
may instruct the county treasurer to audit, allow, and draw his or
her warrant on the county treasury for all legal claims presented to
him or her and authorized by the board of trustees.
   (c) The county treasurer shall pay the warrants in the order in
which they are presented.
   (d) If a warrant is presented for payment and the county 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.



2077.  (a) Notwithstanding Section 2076, a district that has total
annual revenues greater than two hundred fifty thousand dollars
(0,000) may withdraw its funds from the control of the county
treasurer pursuant to this section.
   (b) The board of trustees shall adopt a resolution that does each
of the following:
   (1) States its intent to withdraw its funds from the county
treasury.
   (2) Adopt a procedure for the appointment of a district treasurer.
  The board of trustees may appoint the district treasurer, or the
board of trustees may delegate the appointment of the district
treasurer to the district's general manager.  The district treasurer
may be a member of the board of trustees, the secretary of the board
of trustees, the general manager, or a district employee.
   (3) Fix the amount of the bond for the district treasurer and
other district employees who will be responsible for handling the
district's finances.
   (4) Adopt a system of accounting and auditing that shall
completely and at all times show the district's financial condition.
The system of accounting and auditing shall adhere to generally
accepted accounting principles.
   (5) Adopt a procedure for drawing and signing warrants, provided
that the procedure adheres to generally accepted accounting
principles.  The procedure shall provide that bond principal and
salaries shall be paid when due.  The procedure may provide that
warrants to pay claims and demands need not be approved by the board
of trustees before payment if the district treasurer determines that
the claims and demands conform to the district's approved budget.
   (6) Designate a bank or a savings and loan association as the
depositary of the district's funds.  A bank or savings and loan
association may act as a depositary, paying agent, or fiscal agency
for the holding or handling of the district's funds, notwithstanding
the fact that a member of the board of trustees whose funds are on
deposit in that bank or savings and loan association is an officer,
employee, or stockholder of that bank or savings and loan
association, or of a holding company that owns any of the stock of
that bank or savings and loan association.
   (c) The board of trustees and the board of supervisors of the
principal county shall determine a mutually acceptable date for the
withdrawal of the district's funds from the county treasury, not to
exceed 15 months from the date on which the board of trustees adopts
its resolution.
   (d) In implementing this section, the district shall comply with
Article 1 (commencing with Section 53600) and Article 2 (commencing
with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5
of the Government Code.  Nothing in this section shall preclude the
district treasurer from depositing the district's funds in the county
treasury of the principal county or the State Treasury pursuant to
Article 11 (commencing with Section 16429.1) of Chapter 2 of Part 2
of Division 4 of Title 2 of the Government Code.
   (e) The district treasurer shall make annual or more frequent
written reports to the board of trustees, as the board of trustees
shall determine, regarding the receipts and disbursements and
balances in the accounts controlled by the district treasurer.  The
district treasurer shall sign the reports and file them with the
secretary.



2078.  The board of trustees may establish a revolving fund pursuant
to Article 15 (commencing with Section 53950) of Chapter 4 of Part 1
of Division 2 of Title 5 of the Government Code to make change and
pay small bills directly.


2079.  (a) The board of trustees shall provide for regular audits of
the district's accounts and records pursuant to Section 26909 of the
Government Code.
   (b) The board of trustees 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.