California Code, Health and Safety Code - HSC § 4746.5

(a) The district may, within or without the district:

(b) The district may lease from any person, or public corporation or agency, with the privilege of purchasing or otherwise, all or any part of any facilities necessary or convenient to any district purpose, either existing or constructed by the lessor for district use.

(c) If funds are needed to meet current expenses of maintenance and operation, the district may incur indebtedness by the issuance of negotiable promissory notes pursuant to this section, without an election. The notes shall be general obligations of the district payable in the same manner as bonds of the district, shall mature not later than two years from the date thereof, and shall bear interest at a rate not to exceed the rate prescribed by Article 7 (commencing with Section 53530) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, payable as provided therein. The aggregate amount of the notes outstanding at any one time shall not exceed an amount equal to seven cents ($0.07) on each one hundred dollars ($100) of the assessed valuation of the taxable real property within the district as shown on the last equalized assessment roll of the county. If the assessed valuation is not obtainable, the county auditor's estimate of the assessed valuation of the taxable real property within the district for the fiscal year in which the indebtedness is to be incurred shall be used.

All the notes shall be issued after the adoption of a resolution by a four-fifths vote of the district board setting forth the following:

(a) The necessity for the borrowing.

(b) The assessed valuation of the taxable real property within the district, or the auditor's estimate thereof.

(c) The amount of funds to be borrowed.

(d) The date, maturity, denomination, and form of such notes.

The notes shall be signed by the chairperson of the district board and countersigned by the county treasurer and the seal of the district board shall be affixed.

The district board shall cause the board of supervisors to levy and collect taxes to pay the interest on and the principal of the notes as the same comes due and, if the maturity of the notes begins more than one year after the date thereof, to constitute a sinking fund for the payment of the principal thereof at maturity.

Before selling the notes, the district board shall give notice inviting sealed bids in the manner the board prescribes. If satisfactory bids are received, the notes offered for sale shall be awarded to the highest responsible bidder. If no bids are received, or if the district board determines that the bids received are not satisfactory as to price or responsibility of the bidders, the district board may reject all bids received, if any, and either readvertise or sell the notes at private sale.

The district may issue negotiable promissory notes, borrow from the county or a chartered bank, or establish a line of credit with a chartered bank pursuant to this chapter to acquire funds for any district purposes. The promissory notes or indentures shall not mature later than five years from the date of issuance. The maximum rate of interest on the notes shall not exceed the rate prescribed by Article 7 (commencing with Section 53530) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code. The total aggregate amount of the debt outstanding at any time shall not exceed the lesser of four million dollars ($4,000,000) or 3 percent of the total assessed value of all the taxable property in the district, according to the last equalized assessment roll. Promissory notes issued pursuant to Section 4746.5 may be disregarded in computing the aggregate amount of notes that may be issued pursuant to this section.

(d) The district may issue negotiable promissory notes for financing the acquisition of administrative or construction offices and for the acquisition of land for district purposes. The promissory notes shall not mature later than 10 years from the date of issuance. The maximum rate of interest on the notes shall not exceed the rate prescribed by Article 7 (commencing with Section 53530) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code. The total aggregate amount of the notes outstanding at any one time may not exceed the lesser of either two million dollars ($2,000,000) or 1 percent of the total assessed value of all taxable property in the district, according to the last equalized assessment roll. Promissory notes issued pursuant to Section 4746.1 may be disregarded in computing the aggregate amount of notes issued pursuant to this section.

(e) The district may fix on or before the first Monday in August of each fiscal year, a service standby or availability charge in the district, in any portion thereof, in any improvement district, or in any special zone established pursuant to Section 4850, to which a district service, other than sewage or sanitation service, is available, whether the service is actually used or not. The standby charge levied pursuant to this section shall not exceed fifty dollars ($50) per acre or per parcel less than one acre. This section shall remain in effect only until January 1, 1998, and as of that date is repealed, unless a later enacted statute which is chaptered before January 1, 1998, deletes or extends that date.

(f) On or before the second Monday in August of each year in which a standby charge is to be levied and collected, the secretary shall furnish to the county auditor the parcel number of each parcel of land within any area, zone, or improvement district upon which a charge is to be levied and collected, together with the amount of the standby charge fixed on each parcel of land subject to levy. The board shall direct that at the time and in the manner required by law for the levying of taxes for county purposes, the board of supervisors shall levy, in addition to any other tax, assessment, or charge it levies, a standby charge in the amounts and on the respective parcels identified by the district secretary. All county officers charged with the duty of collecting, receiving, and disbursing taxes shall collect the district's standby charges with the regular tax payments to the county. Charges fixed by the district shall be liens on all the parcels of land against which those charges have been imposed. Liens for those charges shall be of the same force and effect as liens for taxes, and their collection may be enforced in the same manner as provided for the enforcement of liens for county taxes.

(g) In lieu, in whole or in part, of levying taxes pursuant to Section 4815, the district may levy a connection fee for initiating water service to properties requesting this service, pursuant to Section 66013 of the Government Code. The board of directors may require that the connection fees be collected by the county or city building departments in the manner of building permit fees and transmitted to the district within 30 days of their collection. Unless otherwise authorized by law, the connection fee charged to public entity users shall be limited to the actual direct cost incurred by the district in connecting water or sewage service to the properties owned or occupied by the public entity users and shall not include any component for other construction, operation, and maintenance costs.