2007 California Water Code Chapter 3.5. Alternative Provisions For The Formation Of Improvement Districts And The Issuance Of Bonds Therefor

CA Codes (wat:23900-23917)

23900.  This chapter provides an alternative method for the
formation of improvement districts for the purpose of cooperating and
contracting with the United States and agencies thereof pursuant to
the Irrigation District Federal Cooperation Law as contained in
Chapter 2 (commencing with Section 23175) of Part 6 of Division 11,
or for the purpose of sewage disposal, irrigation water service by a
system of pumps, conduits, or both, maintenance of irrigation works,
drainage, or distribution of water.  The term "district" or
"districts" as used in the Irrigation District Federal Cooperation
Law shall include improvement districts formed pursuant to the
provisions of this chapter.  This chapter shall not apply to or
affect any other provisions of this division for the formation of
improvement districts or the incurring of indebtedness therefor.



23901.  Improvement districts consisting of a portion of the
territory of a district may be formed within a district and,
notwithstanding any other provision in this division, bonds of the
district may be issued for such improvement districts as provided in
this chapter.



23902.  Bonds of a district for an improvement district may be
issued for either the purpose of cooperating and contracting with the
United States pursuant to the Irrigation District Federal
Cooperation Law as contained in Chapter 2 (commencing with Section
23175) of Part 6 of Division 11, or for any of the other purposes
specified in Section 23900.



23903.  Whenever the board is of the opinion that an improvement
district should be formed for the purpose set forth in this chapter,
the board shall adopt a resolution of intention which shall state:
(a) the intention of the board to form the proposed improvement
district, (b) the purpose for which the proposed improvement district
is to be formed, (c) the estimated expense of carrying out the
purpose, (d) that assessments for carrying out the purpose shall be
levied exclusively upon the lands in the proposed improvement
district, (e) that a map showing the exterior boundaries of the
proposed improvement district, which map shall govern for all details
as to the extent of the proposed improvement district, is on file
with the secretary of the district and is available for inspection by
any person or persons interested, (f) the time and place for a
hearing by the board on the formation of the proposed improvement
district, the extent thereof, the purpose for which it is to be
formed, the benefit to lands within the proposed improvement district
from carrying out such purpose, the estimated expense of carrying
out such purpose or any other matter relating to any of the
foregoing, and (g) that at the time and place specified any persons
interested, including all persons owning lands in the district or in
the proposed improvement district, may appear and be heard.



23904.  Notice of the hearing shall be given by publishing a copy of
the resolution of intention in a newspaper of general circulation
published in each affected county, pursuant to Section 6066 of the
Government Code, the first publication to be at least fourteen (14)
days prior to the time fixed for the hearing.  The notice shall also
be given by posting a copy of the resolution in three public places
within the proposed improvement district for at least fourteen (14)
days prior to the time fixed for the hearing.  No notice other than
that required by this section need be given.



23905.  At the time and place so fixed, or at any time or place to
which the hearing is continued, the board shall hold the hearing
provided for by the resolution of intention, at which hearing any
person interested, including all persons owning land in the district,
or in the proposed improvement district, may appear and be heard
concerning any matters set forth in the resolution of intention or
any matters material thereto.



23906.  At the hearing the board may adopt a resolution proposing
modifications relating to any or all of the following:  (a) a
modification of the boundaries of the proposed improvement district,
(b) the addition to the proposed improvement district of lands which
in its opinion will be benefited by carrying out the purpose
described in the resolution of intention, (c) the exclusion from the
proposed improvement district of any lands described in the
resolution of intention which in its opinion will not be benefited by
carrying out such purpose or (d) the increasing, decreasing or
otherwise modifying of the purpose stated in the resolution of
intention.  The resolution proposing modification shall describe the
proposed modifications, state the change, if any, in the estimated
expense of carrying out the purpose, and shall fix a time and place
for hearing by the board thereon.



23907.  The board shall not order any modifications except after
publication of the resolution proposing such modifications once in
the same newspaper in which the resolution of intention was
published, such publication to be at least fourteen (14) days prior
to the date of hearing on the proposed modifications.



23908.  The hearing on any proposed modifications, or any
continuance thereof, may be held at the same time and place as any
continued hearing on the resolution of intention and both hearings
may be held and conducted concurrently.


23909.  At the conclusion of the hearing on the resolution of
intention and of the hearing, if any, upon proposed modifications,
the board may by resolution order the improvement district formed for
the purpose and with the exterior boundaries described in the
resolution of intention, or for the purpose and with the exterior
boundaries as proposed to be modified in the resolution, if any,
proposing modifications.  The resolution ordering the district formed
shall state the estimated expense of carrying out the purpose
described therein.  The resolution shall also number and designate
the improvement district substantially as "Improvement District No.
____ of ____ District."



23910.  After adopting the resolution ordering the improvement
district formed, the board may provide for and call a special bond
election within such improvement district to submit to the voters of
the improvement district a proposition of whether or not an
indebtedness of the district shall be incurred and bonds issued
therefor in an amount not exceeding the estimate stated in the
resolution ordering the improvement district formed, such
indebtedness and bonds to be payable from assessments to be levied
and collected upon lands within the improvement district.




23911.  Except as otherwise provided in this chapter, special bond
elections within an improvement district shall be called, noticed,
held, conducted and the results thereof canvassed in substantially
the same manner as is provided in this division for general
obligation bond elections held in the entire district.



23912.  If two-thirds of the votes cast upon the proposition at a
special bond election held in an improvement district are in favor of
the issuance of the bonds of the district for the improvement
district, the board may by resolution, at such time or times as it
deems proper, provide for the issuance of all or any part of such
bonds.



23913.  Bonds of the district for the improvement district shall be
issued and sold in substantially the same manner and upon the same
terms and conditions as general obligation bonds of the entire
district, except that assessments for the payment of the bonds and
the interest thereon shall be levied and collected from annual
assessments to be levied upon and collected from lands within the
improvement district.  The bonds shall be issued in the name of the
district and shall be designated "Bonds of ________ District for
Improvement District No. ___" and each bond and all interest coupons
shall state that the assessment for the payment thereof shall be
limited to annual assessments to be levied upon and collected from
the lands within the improvement district, except to the extent that
provision for such payment has been made by the board, as may be
permitted by law.



23914.  Except to the extent that provision has otherwise been made
by the board, as may be permitted by law, for the payment of the
principal of and interest upon bonds of the district for the
improvement district as they become due and also for the payment of
the operating expenses of such improvement district, the annual
estimate made by the board of the sum required by the district to
discharge all of its obligations shall, in addition to the other
amounts required to be included therein, include an amount sufficient
to pay the principal of bonds of the district for such improvement
district and the interest thereon as the same becomes due and also to
pay operating expenses for the improvement district.



23915.  In addition to the charges authorized to be fixed and
collected pursuant to Article 3 (commencing with Section 22280)
Chapter 2, Part 5 of this division, the board in lieu, in whole or in
part, of raising money for the payment of the principal of and
interest on bonds of the district issued for an improvement district
or for the operating expenses of the improvement district, may fix
and collect charges for the making of water available to the holders
of title to land in the improvement district or the occupants
thereon.  Such additional charges within an improvement district
shall be fixed and collected in substantially the same manner and
upon the same terms and conditions as is provided in Article 3
(commencing with Section 22280), Chapter 2, Part 5 of this division
for charges to be fixed and collected within the entire district,
except that such additional charges fixed and collected from an
improvement district shall be expended only for the payment of the
principal of and interest upon bonds of the district issued for the
improvement district or for payment of the operating expenses of the
improvement district.



23916.  Except as otherwise provided in this chapter, the provisions
of this division applicable to general obligation bonds of the
district and assessments therefor shall, so far as consistent with
this chapter, apply to general obligation bonds of the district for
improvement districts therein.



23917.  The treasurer shall establish a separate fund for general
obligation bonds of the district for each improvement district to
which shall be apportioned money properly belonging to such general
obligation bond fund. The money in any separate general obligation
bond fund shall be used for the payment of bonds of the district for
the particular improvement district and interest thereon and until
the bonded indebtedness of the district therefor is discharged shall
not be used for any other purpose.