72073-72077

WATER CODE
SECTION 72073-72077




72073.  The board annually shall cause to be prepared a written
report stating the reasons for and conclusions of the board upon the
following, together with any additional information deemed by the
board to be relevant to such conclusions:
   (a) The amount of the total debt service payable by the district
for the following fiscal year on any bonded indebtedness incurred
pursuant to this chapter, and the estimated maintenance and operation
costs of the improvements for such fiscal year.
   (b) The amount of such total debt service and maintenance and
operation costs proposed to be raised in each of the improvement
districts established under the provisions of this chapter, in
accordance with the estimated benefits to be received by the
landowners, water users, and inhabitants of each such improvement
district during the following fiscal year.
   (c) The projected retail water sales within each such improvement
district for the following fiscal year, stated by volume and
anticipated revenue.
   Such report shall be mailed at least 20 days before the hearing
provided for in Section 72074 to (1) each retail water purveyor with
a service area wholly or partly within the district, and (2) any
other interested party having made written request therefor at least
20 days before such hearing.



72074.  Annually, prior to approving the annual budget for the
district, the board of directors shall hold a public hearing for the
purpose of considering the report made pursuant to this article, and
to determine the amount of debt service and maintenance and operation
costs to be raised in each of the improvement districts established
hereby and the method of payment of such amount in each such
improvement district.



72075.  Notice of the hearing to be held pursuant to Section 72074
shall be given by publishing a copy, pursuant to Section 6066 of the
Government Code, at least 15 days prior to the time fixed for the
hearing in a newspaper of general circulation within the district, if
there is a newspaper of such circulation within the district. Such
notice also shall be given by posting a copy in three public places
within each of the improvement districts established under this
chapter for at least two weeks before the time fixed for the hearing.
   The notice of such hearing shall state the following:
   (a) The time and place for the hearing by the board.
   (b) The amount of such debt service and maintenance and operation
costs proposed to be raised in each improvement district established
by this chapter.
   (c) That an ad valorem tax will be levied in each improvement
district in an amount sufficient to pay the bond debt service and
maintenance and operation costs required for the following fiscal
year by each improvement district, to the extent that alternative
methods of payment are not available for such purpose under the
provisions of this chapter.
   (d) That at such time and place any person interested will be
heard on the questions of such amount of debt service and maintenance
and operation costs and the availability of such alternative methods
of payment.



72076.  At the conclusion of the hearing, the board shall, by
resolution, determine the following:
   (a) The amount of the total debt service on any bond indebtedness
incurred pursuant to this chapter and the amount of the maintenance
and operation costs to be paid by each improvement district
established hereunder, in accordance with the estimated benefits to
be received by the landowners, water users, and inhabitants of each
such improvement district.
   (b) The method of payment of such debt service and maintenance and
operation costs in each such improvement district.



72077.  The amount of such debt service and maintenance and
operation costs to be raised in each improvement district established
under this chapter shall be paid by an ad valorem tax, to the extent
that such payment is not paid by one or more of the following
alternative methods:
   (a) Payment of funds to the district from water revenues or other
income of the retail water purveyors within each such improvement
district pursuant to a contract therefor, which shall constitute a
lien upon such revenues and income. Notwithstanding the foregoing,
such payment shall not be used unless and until a declaration of a
majority of purveyors, stating their intention to use a specified
amount of water service revenues or other income as such an
alternative method of payment is filed with the board and there is
shown to the satisfaction of the board that the financial condition
of such purveyor reasonably will assure such payment. Such payment
shall be made to the district on or before the date on which it would
have received funds if it levied an ad valorem tax in lieu of such
alternative method of payment.
   If any such purveyor fails to make any or all of such payment, the
amount of such delinquency, plus a penalty of 8 percent per annum,
shall be paid by such defaulting purveyor through appropriate
proceedings brought by the district.
   (b) Collection of the utility tax pursuant to Sections 72072 to
72072.12, inclusive.
   (c) Water standby or availability charges in any such improvement
district fixed pursuant to Article 2 (commencing with Section 71630)
of Chapter 2 of Part 5 of this division.
   (d) Water revenues of the district derived from sales of water
within each such improvement district pursuant to Article 1
(commencing with Section 71610) of Chapter 2 of Part 5 of this
division.
   The board shall not use any of such alternative methods of payment
if a written protest against such use is filed with the board, prior
to the conclusion of the hearing held pursuant to this chapter, by
the retail water purveyors within each such improvement district
providing the majority of retail water service within such
improvement district by volume and number of services.
   Notwithstanding the foregoing, if such a written protest is filed,
the board may nonetheless use any such alternative means of payment,
other than that specified in subdivision (a), upon the affirmative
vote of four directors.