31385-31393

WATER CODE
SECTION 31385-31393




31385.  At the time and place fixed for the hearing in the
resolution declaring the necessity for incurring the bonded
indebtedness, or at any time and place to which the hearing is
adjourned, the board shall proceed with the hearing.



31386.  At the hearing any person interested, including persons
owning property within the district, may appear and present any
matters material to the questions set forth in the resolution
declaring the necessity for incurring the bonded indebtedness.




31387.  At the conclusion of the hearing, the board shall by
resolution determine whether the whole or part of the district will
be benefited by the accomplishment of the purpose stated in the
resolution.


31388.  If the board determines that the whole of the district will
not be benefited, the resolution shall also describe the portion of
the district which will be benefited, in a manner sufficient for
identification, which portion of the district described in the
resolution shall thereupon constitute and be known as "Improvement
District No. _______ of _______ County Water District."



31389.  After the formation of an improvement district within a
district pursuant to this article, all proceedings for the purpose of
a bond election within the improvement district and for the purpose
of taxation for the payment of the bonds and interest shall be
limited, and apply only to the improvement district.



31390.  The determination of the board that the whole of the
district will be benefited by the bond issue or that only a described
portion of the district will be benefited by the bond issue is final
and conclusive.


31391.  After the board has made its determination pursuant to
Section 31387, if it deems it necessary to incur the bonded
indebtedness, it shall by resolution state:
   (a) That it deems it necessary to incur the bonded indebtedness.
   (b) The purpose for which the bonded indebtedness will be
incurred.
   (c) Either of the following in accordance with its previous
determination:
   (1) That the whole of the district will be benefited by incurring
the bonded indebtedness.
   (2) That a portion of the district will be benefited by incurring
the bonded indebtedness, which portion shall be described as it is
described in the resolution of the board made pursuant to Section
31387.
   (d) The amount of debt to be incurred.
   (e) The maximum term the bonds to be issued shall run before
maturity, which term shall not exceed 40 years from the date of the
bonds or any series thereof.
   (f) The annual rate of interest to be paid which rate shall not
exceed 8 percent, payable annually or semiannually.
   (g) The proposition to be submitted to the voters.



31392.  In determining the amount of debt to be incurred, the
legislative body may include:
   (a) All costs and estimated costs incidental to or connected with
the acquisition, construction, improving or financing of the project.
   (b) All engineering, inspection, legal and fiscal agent's fees,
costs of the bond election and of the issuance of said bonds, and
bond interest estimated to accrue during the construction period and
for a period of not to exceed 12 months after completion of
construction.



31393.  (a) Any time following the establishment of an improvement
district pursuant to this article, the board, by a four-fifths
majority vote, may exempt part or all of the territory within the
improvement district from liability for payment of principal,
interest, and any other amounts which become due on account of any
outstanding or then authorized but thereafter issued bonds of the
county water district other than bonds issued for the improvement
district. The board may adopt a resolution pursuant to this section
only if it first makes all of the following findings:
   (1) Bonds for the improvement district have received the voter
approval required by this chapter and part or all of the improvement
district bonds have been issued to provide benefit to the improvement
district.
   (2) The territory for which exemption is proposed was annexed to
the district after the bonds of the county water district were
authorized and prior to formation of the improvement district.
   (3) The territory proposed for exemption from the county water
district bonds receives or will receive greater benefit from the
improvement district bonds than it receives or will receive from
county water district bonds from which the territory is proposed for
exemption.
   (b) When the county water district adopts a resolution pursuant to
this section, it shall file it, together with a sufficient
description of the territory to be exempted from the bonded
indebtedness, in accordance with Section 54902 of the Government
Code. The county assessor and the State Board of Equalization shall
give the resolution the same effect as a term and condition adopted
pursuant to subdivision (c) of Section 56470 of the Government Code;
provided, however, the effective date of the resolution for tax
purposes shall be determined by the filing date in accordance with
Sections 54902 and 54902.1 of the Government Code.
   (c) The provisions of this section apply only to the Yorba Linda
County Water District.