State Codes and Statutes

Statutes > California > Wat > 36410-36446

WATER CODE
SECTION 36410-36446



36410.  This chapter provides an alternative method for the
formation of improvement districts consisting of a portion of the
territory within a district and the issuance of bonds and warrants of
said district for said improvement districts. 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.



36411.  Improvement districts consisting of contiguous or
noncontiguous portions of the territory of a district may be formed
within a district and bonds and warrants of the district may be
issued for such improvement districts as provided in this chapter.




36412.  Bonds and warrants of a district for an improvement district
may be issued for any purpose for which bonds and warrants of the
district may be issued; provided, that the carrying out of such
purpose shall benefit the lands within such improvement district.
Such bonds or warrants may be either general obligation bonds or
warrants or revenue bonds.



36413.  Whenever the board is of the opinion that an improvement
district should be formed, the board of directors 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 said purpose, (d) if assessments
are to be levied for carrying out such purpose, such assessments
shall be levied exclusively upon the lands in said proposed
improvement district, (e) if revenue bonds are to be used for
carrying out such purpose, only the revenues derived from the
operation of improvement district works shall be pledged to the
payment of principal and interest on such bonds, and no tax or
assessment shall ever be levied or collected to pay principal or
interest on such bonds, (f) that a map showing the exterior
boundaries of said 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, (g) the
time and place for a hearing by the board on the formation of said
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 said purpose, the estimated
expense of carrying out said purpose or any other matter relating to
any of the foregoing, which hearing may be held concurrently with the
hearing required by Chapter 2 (commencing with Section 35950) of
this part, and (h) that at said time and place any persons
interested, including all persons owning lands in the district or in
the proposed improvement district, may appear and be heard.



36414.  Notice of said 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. Said notice shall also
be given by posting a copy of said resolution in three public places
within the proposed improvement district for at least fourteen (14)
days prior to the time fixed for said hearing. No notice other than
that required by this section need be given.



36415.  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 said 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.



36416.  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 said purpose or (d) the increasing, decreasing or
otherwise modifying of the purpose stated in the resolution of
intention. Said 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.



36417.  The board shall not order any modifications except after
publication of the resolution proposing said modifications once in
the same newspaper in which the resolution of intention was
published, said publication to be at least fourteen (14) days prior
to the date of hearing on said proposed modifications.



36418.  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 said
hearings may be held and conducted concurrently.



36419.  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. Said resolution ordering the district formed
shall state the estimated expense of carrying out the purpose
described therein. Said resolution shall also number and designate
said improvement district substantially as "Improvement District No.
____ of ____ District."



36420.  (a) 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.
   (b) If such bonds are to be general obligation bonds, such
indebtedness and the bonds shall be payable from assessments to be
levied and collected upon lands within said improvement district.
   (c) If such bonds are to be revenue bonds only revenues derived
from the operation of the improvement district works shall be pledged
to the payment or redemption thereof and the payment of interest
thereon, and such revenue bonds shall not be a general debt liability
or obligation of the district.



36421.  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 bond elections
held in the entire district.



36423.  Bonds of said district for said improvement district shall
be issued and sold in substantially the same manner and upon the same
terms and conditions as bonds of the entire district, except that
(a) if such bonds are general obligation bonds of the district for
such improvement district, assessments for the payment of said bonds
and the interest thereon shall be levied and collected from annual
assessments to be levied upon and collected from lands within said
improvement district or (b) if such bonds are revenue bonds, only the
net revenues of the improvement district shall be pledged to the
payment or redemption thereof and the payment of interest thereon.
The bonds shall be issued in the name of the district and, if general
obligation bonds, 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 said improvement district, except to the extent that
provision for such payment has been made by the board, as may be
permitted by law or, if revenue bonds, shall be designated "Revenue
Bonds of ____ District for Improvement District No. ____" and each
bond and all interest coupons shall state that it is payable from
revenues of the improvement district, except to the extent that
provision for such payment has been otherwise made by the board, as
may be permitted by law.


36424.  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 general obligation bonds and warrants
of said district for such improvement district as they become due and
also for the payment of operating expenses of said 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 general
obligation bonds and warrants of the district for said improvement
district and the interest thereon as the same becomes due and also to
pay operating expenses for said improvement district.



36424.1.  (a) This section applies only to the Santa Margarita Water
District.
   (b) The Legislature finds and declares both of the following:
   (1) In 1978, the voters of the Santa Margarita Water District
authorized the sale of bonds for its improvement district number four
in which the bond proceeds are available for water and sewer
facilities.
   (2) In 1998, the Capistrano School District created a Mello-Roos
Community Facilities District in which the bond proceeds are
available for water, sewer, roads, and other facilities for a portion
of the area to be served by the improvement district.
   (c) It is the intent of the Legislature to allow the Santa
Margarita Water District the flexibility to establish equity with
regard to the manner in which the district's water and sewer bonds
are repaid, recognizing that a portion of the water and sewer
facilities for the improvement district area will be financed by
bonds issued pursuant to the Mello-Roos Community Facilities Act of
1982 (Ch. 2.5 (commencing with Sec. 53311), Pt. 1, Div. 2, Title 5,
Gov. C.), instead of all water and sewer facilities being financed by
the district's water and sewer bonds.
   (d) For the purpose of making the annual estimate of the amount
required to pay the principal of, and interest on, general obligation
bonds of the Santa Margarita Water District for improvement district
number four pursuant to Section 36424, the board of the district may
designate two separate areas within the improvement district, with
one area financed by the school district's bonds under Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of
the Government Code and the other area not so financed.
   (e) If the district exercises the authority authorized by this
section, the amount of principal and interest allocated each year to
the area without the bonds issued under Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the Government
Code (1) shall not be less, to the extent possible, than the amount
needed to repay the principal and interest actually owed on the water
and sewer bonds if that amount is spread uniformly across all of the
assessed value of property within the improvement district, and (2)
shall not be more, to the extent possible, than that amount that
would have been allocated if (A) all water and sewer facilities had
been financed by the water district's water and sewer bonds, subject
to a limit of the amount of water and sewer bonds actually
authorized, and (B) the entire improvement district was responsible
to repay these amounts.
   (f) The board shall not designate separate areas unless it
receives a report from an independent financial consultant or
engineer that the designation of the proposed areas and the
allocation of the estimated amount required to repay the principal
of, and interest on, the bonds to the areas, in accordance with
subdivision (e), will not adversely affect the board's ability to
levy ad valorem assessments that will be sufficient to pay the
principal of, and interest on, the bonds and the board determines
that the designation of the areas and the allocation of the amount
will not be adverse to the interests of the holders of the bonds.
Notwithstanding subdivision (e), if the report indicates that the
allocation described in subdivision (e) will adversely affect the
board's ability to levy ad valorem assessments that are sufficient to
pay the principal of, and interest on, the bonds or that that
allocation may be adverse to the interests of the holders of the
bonds, the district may designate two separate areas within
improvement district number four in accordance with subdivision (d)
and levy ad valorem assessments in amounts necessary to avoid those
adverse effects.



36425.  In addition to the charges authorized to be fixed and
collected pursuant to Article 4 (commencing with Section 35470) of
Chapter 2 of 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 and warrants of the district issued for an
improvement district or for the operating expenses of that
improvement district, may fix and collect charges for the making of
water available to the holders of title to land in that improvement
district or the occupants thereon. The 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 4 for charges to be fixed and collected within the entire
district, except that the additional charges fixed and collected
from an improvement district shall be expended only for the payment
of the principal of, and interest upon, bonds and warrants of the
district issued for the improvement district or for payment of the
operating expenses of the improvement district.



36426.  Except as otherwise provided in this chapter, the provisions
of this division applicable to bonds and warrants of the district
and assessments therefor shall, so far as consistent with this
chapter, apply to bonds and warrants of the district for improvement
districts therein.



36427.  If general obligation bonds of the district for an
improvement district thereof shall have been issued, the treasurer
shall establish within the general obligation bond fund for the
district provided for in Section 35902 a separate account for general
obligation bonds of the district for each improvement district to
which shall be apportioned such portion of the general obligation
bond fund as is applicable to the general obligation bonds of the
district for the particular improvement district. The money in any
separate account shall be used for the payment of the general
obligation bonds of the district for the particular improvement
district and interest thereon and until the general obligation bonded
indebtedness of the district therefor is discharged shall not be
used for any other purpose.



36428.  After the formation of an improvement district additional
lands contiguous or noncontiguous thereto may be included therein
upon such terms and conditions as may be fixed by the board. If the
board is of the opinion that territory should be added to an
improvement district, the board shall adopt a resolution of intention
which shall state:
   (a) The intention of the board to add certain territory to
Improvement District No. ____ of ____ District;
   (b) That a map showing the exterior boundaries of the territory to
be annexed, which map shall govern for all details as to the extent
of the area to be annexed, is on file with the secretary of the
district and is available for inspection by any person or persons
interested;
   (c) The terms and conditions of annexation, if any;
   (d) If assessments will be levied for carrying out any purpose of
said improvement district including the payment of principal of and
interest on any general obligation bonds or warrants outstanding,
such assessments shall be levied exclusively upon the lands in said
proposed improvement district including the territory annexed
thereto;
   (e) If revenues are to be used for carrying out any purpose of
such improvement district, including the payment of principal of and
interest on any revenue bonds outstanding, such revenues shall be
limited to revenues derived from the operation of the improvement
district works, including the territory annexed thereto.
   (f) The time and place for hearing by the board on the question of
the annexation of said territory to said improvement district and
any other matter relating to any of the foregoing; and
   (g) That at said time and place any persons interested including
persons owning land within the area to be annexed to the improvement
district may appear and be heard. Notice of said hearing shall be
given in the same manner as provided in Section 36414.



36429.  At the time and place fixed or at any time and place to
which the hearing is continued, the board shall hold the hearing
provided for by said resolution of intention at which hearing any
person interested, including all persons owning land in the district
or in the territory to be annexed to the improvement district, may
appear and be heard concerning any matters set forth in the
resolution of intention or any matters material thereto.



36430.  At the hearing the board may adopt a resolution proposing
modifications relating to any or all of the following:
   (a) Modification of the boundaries of the territory to be annexed;
   (b) The addition to the territory proposed to be annexed of lands
of which in its opinion will be benefited by being annexed to said
improvement district;
   (c) The exclusion from the territory to be annexed of any lands
described in the resolution of intention which in its opinion will
not be benefited by being annexed to said improvement district; or
   (d) The terms and conditions set forth in the resolution of
intention or if none the board may adopt terms and conditions.
   Said resolution proposing modification shall describe the proposed
modifications and shall fix a time and place for a hearing by the
board thereon. The board shall not order any modifications except
after publication of the resolution proposing said modifications as
provided in Section 36417.



36431.  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 territory annexed to said
improvement district upon the terms and conditions set forth in said
resolution of intention.



36432.  As an alternative procedure for the annexation of land to an
improvement district, additional lands may be included within any
improvement district by resolution of the board declaring the
territory annexed after receipt by the board of written consent of
the owners of all of the land to be annexed thereto which consent
shall include the terms and conditions of annexation, if any.



36433.  The board may advance general funds of the district to
accomplish an approved plan of works of an improvement district.



36434.  The board shall repay the district for any advance of funds
with any money received which is authorized by law to be used for
such a purpose including the proceeds of the sale of bonds and
warrants authorized for the purposes of the improvement district.




36435.  After adopting the resolution ordering the improvement
district formed, the board may provide for the issuance of warrants
of the district for the improvement district in an amount not
exceeding the estimate stated in the resolution ordering the
improvement district formed, such warrants to be payable from
assessments to be levied and collected upon the lands within said
improvement district.



36436.  Warrants of said district for said improvement district
shall be issued and sold in substantially the same manner and upon
the same terms and conditions as warrants of the entire district,
except that assessments for the payment of said warrants and the
interest thereon shall be levied and collected from annual
assessments to be levied upon and collected from lands within said
improvement district. The warrants shall be issued in the name of the
district and shall be designated "Warrants of ____ District for
Improvement District No. __" and each warrant and all interest
coupons thereon 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 said improvement district, except to
the extent that provision for such payment has been made by the
board, as may be permitted by law.



36437.  Except as otherwise provided in this chapter, the provisions
of this division applicable to warrants of the district and
assessments therefor shall, so far as consistent with this chapter,
apply to warrants of the district for an improvement district
therein.



36438.  Pursuant to the procedure hereinafter set forth in this
chapter, two or more existing coterminous improvement districts
formed pursuant to the provisions of this chapter may be consolidated
into one improvement district. In such instance the consolidated
improvement district may be designated in such manner as the board
may designate. Any authorized but unissued bonds may be issued and
sold as the bonds of the consolidated improvement district. Such
bonds, as well as any funds on hand from bonds previously issued by
any of the improvement districts consolidated into one improvement
district as hereinafter provided or any other funds of any such
improvement districts, shall be used in the manner provided by law
for the original authorized purposes. However, any such use of funds
shall be to accomplish the plan of works originally established or as
subsequently amended.
   To the extent assessment, standby charges, or other charges are
necessary to be levied or collected by reason of any such improvement
districts consolidated hereunder into one improvement district, such
assessments, standby charges, or other charges may be collected by
the consolidated improvement district provided for hereunder.
Thereafter, the amount so collected shall be utilized to satisfy the
obligations for which such assessments or standby charges were levied
and collected.



36439.  In the event that the board determines it to be in the best
interests of the district to consolidate any two or more existing
coterminous improvement districts formed under this chapter, it may
by resolution adopted by a four-fifths vote, declare its intention to
consolidate such improvement districts. The resolution so adopted
shall identify the improvement districts to be consolidated and shall
set forth the total amount of authorized bonds, as well as the
amount of outstanding bonds, of each of the improvement districts
proposed to be consolidated, the purposes of each such improvement
district, and the designation of the proposed consolidated
improvement district. The resolution of intention shall set forth a
legal description of the existing coterminous improvement districts
to be consolidated and provide that notice be given in a manner
provided in Section 36414. Additionally, the resolution shall fix a
date, time, and place for a public hearing on the proposed
consolidation.



36440.  At the conclusion of the hearing on the resolution of
intention provided for in Section 36439, the board may adopt a
resolution declaring the existing coterminous improvement districts
described in the resolution of intention to be consolidated in one
improvement district which shall be designated therein. The
resolution shall contain the legal description thereof as well as a
statement of the purposes of the consolidated improvement district.
If the parent district has adopted the alternative method for the
levy, collection and enforcement of district assessments by the
county and is operating under the provisions of Part 7.5 (commencing
with Section 37200) of this division, it shall file a statement as
required by Chapter 8 (commencing with Section 54900) of Part 1,
Division 2, Title 5 of the Government Code. The resolution shall
contain a determination that such consolidation is in the best
interests of the present and future property owners and taxpayers.
Any such resolution shall be subject to referendum held within the
boundaries described in the resolution adopted as provided for
herein.



36441.  The provisions of Sections 36438 to 36440, inclusive, are in
the alternative to and shall not affect any existing provisions of
this division.


36442.  After the formation of an improvement district, lands may be
detached therefrom upon any terms and conditions as may be fixed by
the board. If the board determines that territory should be detached
from an improvement district, the board shall adopt a resolution of
intention which shall state the following:
   (a) The intention of the board to detach certain territory from
Improvement District No. ____ of ____ District.
   (b) That a map showing the exterior boundaries of the territory to
be detached, which map shall govern for all details as to the extent
of the area to be detached, is on file with the secretary of the
district and is available for inspection by any person or persons
interested.
   (c) The terms and conditions of the proposed detachment.
   (d) That the assessments for carrying out any purpose of the
improvement district, including the payment of principal of and
interest on any bonds or warrants outstanding, shall or shall not be
continued to be levied to the extent and in the manner provided for
in the District Reorganization Act of 1965 upon the lands in the
territory to be detached.
   (e) The time and place for a hearing by the board on the question
of the detachment of such territory from the improvement district and
any other matter relating to any of the foregoing.
   (f) That at such time and place any persons interested, including
persons owning land within the area to be detached from the
improvement district, may appear and be heard. Notice of such hearing
shall be given in the same manner as provided in Section 36414.



36443.  At the time and place fixed, or at any time and place to
which the hearing is continued, the board shall hold the hearing
provided for by such resolution of intention. At the hearing any
person interested, including all persons owning land in the district
or in the territory to be detached from the improvement district, may
appear and be heard concerning any matters set forth in the
resolution of intention or any matters material thereto.



36444.  At the hearing, the board may adopt a resolution proposing
modifications relating to any or all of the following:
   (a) Modification of the boundaries of the territory to be
detached.
   (b) The exclusion from the territory to be detached of any lands
described in the resolution of intention which, in its opinion, will
be benefited by remaining part of the improvement district.
   (c) The terms and conditions set forth in the resolution of
intention, or if none, the board may adopt terms and conditions.
   Such resolution proposing modifications shall describe the
proposed modifications and shall fix a time and place for a hearing
by the board thereon. The board shall not order any modifications
except after publication of the resolution proposing the
modifications as provided in Section 36417.



36445.  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 territory detached from the
improvement district upon the terms and conditions set forth in the
resolution of intention.



36446.  As an alternative procedure for the detachment of land from
an improvement district, lands may be detached from any improvement
district by resolution of the board declaring the territory detached
after receipt by the board of written consent of the owners of all of
the land to be detached therefrom, which consent shall include the
terms and conditions of annexation, if any.

State Codes and Statutes

Statutes > California > Wat > 36410-36446

WATER CODE
SECTION 36410-36446



36410.  This chapter provides an alternative method for the
formation of improvement districts consisting of a portion of the
territory within a district and the issuance of bonds and warrants of
said district for said improvement districts. 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.



36411.  Improvement districts consisting of contiguous or
noncontiguous portions of the territory of a district may be formed
within a district and bonds and warrants of the district may be
issued for such improvement districts as provided in this chapter.




36412.  Bonds and warrants of a district for an improvement district
may be issued for any purpose for which bonds and warrants of the
district may be issued; provided, that the carrying out of such
purpose shall benefit the lands within such improvement district.
Such bonds or warrants may be either general obligation bonds or
warrants or revenue bonds.



36413.  Whenever the board is of the opinion that an improvement
district should be formed, the board of directors 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 said purpose, (d) if assessments
are to be levied for carrying out such purpose, such assessments
shall be levied exclusively upon the lands in said proposed
improvement district, (e) if revenue bonds are to be used for
carrying out such purpose, only the revenues derived from the
operation of improvement district works shall be pledged to the
payment of principal and interest on such bonds, and no tax or
assessment shall ever be levied or collected to pay principal or
interest on such bonds, (f) that a map showing the exterior
boundaries of said 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, (g) the
time and place for a hearing by the board on the formation of said
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 said purpose, the estimated
expense of carrying out said purpose or any other matter relating to
any of the foregoing, which hearing may be held concurrently with the
hearing required by Chapter 2 (commencing with Section 35950) of
this part, and (h) that at said time and place any persons
interested, including all persons owning lands in the district or in
the proposed improvement district, may appear and be heard.



36414.  Notice of said 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. Said notice shall also
be given by posting a copy of said resolution in three public places
within the proposed improvement district for at least fourteen (14)
days prior to the time fixed for said hearing. No notice other than
that required by this section need be given.



36415.  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 said 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.



36416.  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 said purpose or (d) the increasing, decreasing or
otherwise modifying of the purpose stated in the resolution of
intention. Said 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.



36417.  The board shall not order any modifications except after
publication of the resolution proposing said modifications once in
the same newspaper in which the resolution of intention was
published, said publication to be at least fourteen (14) days prior
to the date of hearing on said proposed modifications.



36418.  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 said
hearings may be held and conducted concurrently.



36419.  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. Said resolution ordering the district formed
shall state the estimated expense of carrying out the purpose
described therein. Said resolution shall also number and designate
said improvement district substantially as "Improvement District No.
____ of ____ District."



36420.  (a) 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.
   (b) If such bonds are to be general obligation bonds, such
indebtedness and the bonds shall be payable from assessments to be
levied and collected upon lands within said improvement district.
   (c) If such bonds are to be revenue bonds only revenues derived
from the operation of the improvement district works shall be pledged
to the payment or redemption thereof and the payment of interest
thereon, and such revenue bonds shall not be a general debt liability
or obligation of the district.



36421.  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 bond elections
held in the entire district.



36423.  Bonds of said district for said improvement district shall
be issued and sold in substantially the same manner and upon the same
terms and conditions as bonds of the entire district, except that
(a) if such bonds are general obligation bonds of the district for
such improvement district, assessments for the payment of said bonds
and the interest thereon shall be levied and collected from annual
assessments to be levied upon and collected from lands within said
improvement district or (b) if such bonds are revenue bonds, only the
net revenues of the improvement district shall be pledged to the
payment or redemption thereof and the payment of interest thereon.
The bonds shall be issued in the name of the district and, if general
obligation bonds, 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 said improvement district, except to the extent that
provision for such payment has been made by the board, as may be
permitted by law or, if revenue bonds, shall be designated "Revenue
Bonds of ____ District for Improvement District No. ____" and each
bond and all interest coupons shall state that it is payable from
revenues of the improvement district, except to the extent that
provision for such payment has been otherwise made by the board, as
may be permitted by law.


36424.  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 general obligation bonds and warrants
of said district for such improvement district as they become due and
also for the payment of operating expenses of said 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 general
obligation bonds and warrants of the district for said improvement
district and the interest thereon as the same becomes due and also to
pay operating expenses for said improvement district.



36424.1.  (a) This section applies only to the Santa Margarita Water
District.
   (b) The Legislature finds and declares both of the following:
   (1) In 1978, the voters of the Santa Margarita Water District
authorized the sale of bonds for its improvement district number four
in which the bond proceeds are available for water and sewer
facilities.
   (2) In 1998, the Capistrano School District created a Mello-Roos
Community Facilities District in which the bond proceeds are
available for water, sewer, roads, and other facilities for a portion
of the area to be served by the improvement district.
   (c) It is the intent of the Legislature to allow the Santa
Margarita Water District the flexibility to establish equity with
regard to the manner in which the district's water and sewer bonds
are repaid, recognizing that a portion of the water and sewer
facilities for the improvement district area will be financed by
bonds issued pursuant to the Mello-Roos Community Facilities Act of
1982 (Ch. 2.5 (commencing with Sec. 53311), Pt. 1, Div. 2, Title 5,
Gov. C.), instead of all water and sewer facilities being financed by
the district's water and sewer bonds.
   (d) For the purpose of making the annual estimate of the amount
required to pay the principal of, and interest on, general obligation
bonds of the Santa Margarita Water District for improvement district
number four pursuant to Section 36424, the board of the district may
designate two separate areas within the improvement district, with
one area financed by the school district's bonds under Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of
the Government Code and the other area not so financed.
   (e) If the district exercises the authority authorized by this
section, the amount of principal and interest allocated each year to
the area without the bonds issued under Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the Government
Code (1) shall not be less, to the extent possible, than the amount
needed to repay the principal and interest actually owed on the water
and sewer bonds if that amount is spread uniformly across all of the
assessed value of property within the improvement district, and (2)
shall not be more, to the extent possible, than that amount that
would have been allocated if (A) all water and sewer facilities had
been financed by the water district's water and sewer bonds, subject
to a limit of the amount of water and sewer bonds actually
authorized, and (B) the entire improvement district was responsible
to repay these amounts.
   (f) The board shall not designate separate areas unless it
receives a report from an independent financial consultant or
engineer that the designation of the proposed areas and the
allocation of the estimated amount required to repay the principal
of, and interest on, the bonds to the areas, in accordance with
subdivision (e), will not adversely affect the board's ability to
levy ad valorem assessments that will be sufficient to pay the
principal of, and interest on, the bonds and the board determines
that the designation of the areas and the allocation of the amount
will not be adverse to the interests of the holders of the bonds.
Notwithstanding subdivision (e), if the report indicates that the
allocation described in subdivision (e) will adversely affect the
board's ability to levy ad valorem assessments that are sufficient to
pay the principal of, and interest on, the bonds or that that
allocation may be adverse to the interests of the holders of the
bonds, the district may designate two separate areas within
improvement district number four in accordance with subdivision (d)
and levy ad valorem assessments in amounts necessary to avoid those
adverse effects.



36425.  In addition to the charges authorized to be fixed and
collected pursuant to Article 4 (commencing with Section 35470) of
Chapter 2 of 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 and warrants of the district issued for an
improvement district or for the operating expenses of that
improvement district, may fix and collect charges for the making of
water available to the holders of title to land in that improvement
district or the occupants thereon. The 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 4 for charges to be fixed and collected within the entire
district, except that the additional charges fixed and collected
from an improvement district shall be expended only for the payment
of the principal of, and interest upon, bonds and warrants of the
district issued for the improvement district or for payment of the
operating expenses of the improvement district.



36426.  Except as otherwise provided in this chapter, the provisions
of this division applicable to bonds and warrants of the district
and assessments therefor shall, so far as consistent with this
chapter, apply to bonds and warrants of the district for improvement
districts therein.



36427.  If general obligation bonds of the district for an
improvement district thereof shall have been issued, the treasurer
shall establish within the general obligation bond fund for the
district provided for in Section 35902 a separate account for general
obligation bonds of the district for each improvement district to
which shall be apportioned such portion of the general obligation
bond fund as is applicable to the general obligation bonds of the
district for the particular improvement district. The money in any
separate account shall be used for the payment of the general
obligation bonds of the district for the particular improvement
district and interest thereon and until the general obligation bonded
indebtedness of the district therefor is discharged shall not be
used for any other purpose.



36428.  After the formation of an improvement district additional
lands contiguous or noncontiguous thereto may be included therein
upon such terms and conditions as may be fixed by the board. If the
board is of the opinion that territory should be added to an
improvement district, the board shall adopt a resolution of intention
which shall state:
   (a) The intention of the board to add certain territory to
Improvement District No. ____ of ____ District;
   (b) That a map showing the exterior boundaries of the territory to
be annexed, which map shall govern for all details as to the extent
of the area to be annexed, is on file with the secretary of the
district and is available for inspection by any person or persons
interested;
   (c) The terms and conditions of annexation, if any;
   (d) If assessments will be levied for carrying out any purpose of
said improvement district including the payment of principal of and
interest on any general obligation bonds or warrants outstanding,
such assessments shall be levied exclusively upon the lands in said
proposed improvement district including the territory annexed
thereto;
   (e) If revenues are to be used for carrying out any purpose of
such improvement district, including the payment of principal of and
interest on any revenue bonds outstanding, such revenues shall be
limited to revenues derived from the operation of the improvement
district works, including the territory annexed thereto.
   (f) The time and place for hearing by the board on the question of
the annexation of said territory to said improvement district and
any other matter relating to any of the foregoing; and
   (g) That at said time and place any persons interested including
persons owning land within the area to be annexed to the improvement
district may appear and be heard. Notice of said hearing shall be
given in the same manner as provided in Section 36414.



36429.  At the time and place fixed or at any time and place to
which the hearing is continued, the board shall hold the hearing
provided for by said resolution of intention at which hearing any
person interested, including all persons owning land in the district
or in the territory to be annexed to the improvement district, may
appear and be heard concerning any matters set forth in the
resolution of intention or any matters material thereto.



36430.  At the hearing the board may adopt a resolution proposing
modifications relating to any or all of the following:
   (a) Modification of the boundaries of the territory to be annexed;
   (b) The addition to the territory proposed to be annexed of lands
of which in its opinion will be benefited by being annexed to said
improvement district;
   (c) The exclusion from the territory to be annexed of any lands
described in the resolution of intention which in its opinion will
not be benefited by being annexed to said improvement district; or
   (d) The terms and conditions set forth in the resolution of
intention or if none the board may adopt terms and conditions.
   Said resolution proposing modification shall describe the proposed
modifications and shall fix a time and place for a hearing by the
board thereon. The board shall not order any modifications except
after publication of the resolution proposing said modifications as
provided in Section 36417.



36431.  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 territory annexed to said
improvement district upon the terms and conditions set forth in said
resolution of intention.



36432.  As an alternative procedure for the annexation of land to an
improvement district, additional lands may be included within any
improvement district by resolution of the board declaring the
territory annexed after receipt by the board of written consent of
the owners of all of the land to be annexed thereto which consent
shall include the terms and conditions of annexation, if any.



36433.  The board may advance general funds of the district to
accomplish an approved plan of works of an improvement district.



36434.  The board shall repay the district for any advance of funds
with any money received which is authorized by law to be used for
such a purpose including the proceeds of the sale of bonds and
warrants authorized for the purposes of the improvement district.




36435.  After adopting the resolution ordering the improvement
district formed, the board may provide for the issuance of warrants
of the district for the improvement district in an amount not
exceeding the estimate stated in the resolution ordering the
improvement district formed, such warrants to be payable from
assessments to be levied and collected upon the lands within said
improvement district.



36436.  Warrants of said district for said improvement district
shall be issued and sold in substantially the same manner and upon
the same terms and conditions as warrants of the entire district,
except that assessments for the payment of said warrants and the
interest thereon shall be levied and collected from annual
assessments to be levied upon and collected from lands within said
improvement district. The warrants shall be issued in the name of the
district and shall be designated "Warrants of ____ District for
Improvement District No. __" and each warrant and all interest
coupons thereon 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 said improvement district, except to
the extent that provision for such payment has been made by the
board, as may be permitted by law.



36437.  Except as otherwise provided in this chapter, the provisions
of this division applicable to warrants of the district and
assessments therefor shall, so far as consistent with this chapter,
apply to warrants of the district for an improvement district
therein.



36438.  Pursuant to the procedure hereinafter set forth in this
chapter, two or more existing coterminous improvement districts
formed pursuant to the provisions of this chapter may be consolidated
into one improvement district. In such instance the consolidated
improvement district may be designated in such manner as the board
may designate. Any authorized but unissued bonds may be issued and
sold as the bonds of the consolidated improvement district. Such
bonds, as well as any funds on hand from bonds previously issued by
any of the improvement districts consolidated into one improvement
district as hereinafter provided or any other funds of any such
improvement districts, shall be used in the manner provided by law
for the original authorized purposes. However, any such use of funds
shall be to accomplish the plan of works originally established or as
subsequently amended.
   To the extent assessment, standby charges, or other charges are
necessary to be levied or collected by reason of any such improvement
districts consolidated hereunder into one improvement district, such
assessments, standby charges, or other charges may be collected by
the consolidated improvement district provided for hereunder.
Thereafter, the amount so collected shall be utilized to satisfy the
obligations for which such assessments or standby charges were levied
and collected.



36439.  In the event that the board determines it to be in the best
interests of the district to consolidate any two or more existing
coterminous improvement districts formed under this chapter, it may
by resolution adopted by a four-fifths vote, declare its intention to
consolidate such improvement districts. The resolution so adopted
shall identify the improvement districts to be consolidated and shall
set forth the total amount of authorized bonds, as well as the
amount of outstanding bonds, of each of the improvement districts
proposed to be consolidated, the purposes of each such improvement
district, and the designation of the proposed consolidated
improvement district. The resolution of intention shall set forth a
legal description of the existing coterminous improvement districts
to be consolidated and provide that notice be given in a manner
provided in Section 36414. Additionally, the resolution shall fix a
date, time, and place for a public hearing on the proposed
consolidation.



36440.  At the conclusion of the hearing on the resolution of
intention provided for in Section 36439, the board may adopt a
resolution declaring the existing coterminous improvement districts
described in the resolution of intention to be consolidated in one
improvement district which shall be designated therein. The
resolution shall contain the legal description thereof as well as a
statement of the purposes of the consolidated improvement district.
If the parent district has adopted the alternative method for the
levy, collection and enforcement of district assessments by the
county and is operating under the provisions of Part 7.5 (commencing
with Section 37200) of this division, it shall file a statement as
required by Chapter 8 (commencing with Section 54900) of Part 1,
Division 2, Title 5 of the Government Code. The resolution shall
contain a determination that such consolidation is in the best
interests of the present and future property owners and taxpayers.
Any such resolution shall be subject to referendum held within the
boundaries described in the resolution adopted as provided for
herein.



36441.  The provisions of Sections 36438 to 36440, inclusive, are in
the alternative to and shall not affect any existing provisions of
this division.


36442.  After the formation of an improvement district, lands may be
detached therefrom upon any terms and conditions as may be fixed by
the board. If the board determines that territory should be detached
from an improvement district, the board shall adopt a resolution of
intention which shall state the following:
   (a) The intention of the board to detach certain territory from
Improvement District No. ____ of ____ District.
   (b) That a map showing the exterior boundaries of the territory to
be detached, which map shall govern for all details as to the extent
of the area to be detached, is on file with the secretary of the
district and is available for inspection by any person or persons
interested.
   (c) The terms and conditions of the proposed detachment.
   (d) That the assessments for carrying out any purpose of the
improvement district, including the payment of principal of and
interest on any bonds or warrants outstanding, shall or shall not be
continued to be levied to the extent and in the manner provided for
in the District Reorganization Act of 1965 upon the lands in the
territory to be detached.
   (e) The time and place for a hearing by the board on the question
of the detachment of such territory from the improvement district and
any other matter relating to any of the foregoing.
   (f) That at such time and place any persons interested, including
persons owning land within the area to be detached from the
improvement district, may appear and be heard. Notice of such hearing
shall be given in the same manner as provided in Section 36414.



36443.  At the time and place fixed, or at any time and place to
which the hearing is continued, the board shall hold the hearing
provided for by such resolution of intention. At the hearing any
person interested, including all persons owning land in the district
or in the territory to be detached from the improvement district, may
appear and be heard concerning any matters set forth in the
resolution of intention or any matters material thereto.



36444.  At the hearing, the board may adopt a resolution proposing
modifications relating to any or all of the following:
   (a) Modification of the boundaries of the territory to be
detached.
   (b) The exclusion from the territory to be detached of any lands
described in the resolution of intention which, in its opinion, will
be benefited by remaining part of the improvement district.
   (c) The terms and conditions set forth in the resolution of
intention, or if none, the board may adopt terms and conditions.
   Such resolution proposing modifications shall describe the
proposed modifications and shall fix a time and place for a hearing
by the board thereon. The board shall not order any modifications
except after publication of the resolution proposing the
modifications as provided in Section 36417.



36445.  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 territory detached from the
improvement district upon the terms and conditions set forth in the
resolution of intention.



36446.  As an alternative procedure for the detachment of land from
an improvement district, lands may be detached from any improvement
district by resolution of the board declaring the territory detached
after receipt by the board of written consent of the owners of all of
the land to be detached therefrom, which consent shall include the
terms and conditions of annexation, if any.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Wat > 36410-36446

WATER CODE
SECTION 36410-36446



36410.  This chapter provides an alternative method for the
formation of improvement districts consisting of a portion of the
territory within a district and the issuance of bonds and warrants of
said district for said improvement districts. 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.



36411.  Improvement districts consisting of contiguous or
noncontiguous portions of the territory of a district may be formed
within a district and bonds and warrants of the district may be
issued for such improvement districts as provided in this chapter.




36412.  Bonds and warrants of a district for an improvement district
may be issued for any purpose for which bonds and warrants of the
district may be issued; provided, that the carrying out of such
purpose shall benefit the lands within such improvement district.
Such bonds or warrants may be either general obligation bonds or
warrants or revenue bonds.



36413.  Whenever the board is of the opinion that an improvement
district should be formed, the board of directors 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 said purpose, (d) if assessments
are to be levied for carrying out such purpose, such assessments
shall be levied exclusively upon the lands in said proposed
improvement district, (e) if revenue bonds are to be used for
carrying out such purpose, only the revenues derived from the
operation of improvement district works shall be pledged to the
payment of principal and interest on such bonds, and no tax or
assessment shall ever be levied or collected to pay principal or
interest on such bonds, (f) that a map showing the exterior
boundaries of said 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, (g) the
time and place for a hearing by the board on the formation of said
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 said purpose, the estimated
expense of carrying out said purpose or any other matter relating to
any of the foregoing, which hearing may be held concurrently with the
hearing required by Chapter 2 (commencing with Section 35950) of
this part, and (h) that at said time and place any persons
interested, including all persons owning lands in the district or in
the proposed improvement district, may appear and be heard.



36414.  Notice of said 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. Said notice shall also
be given by posting a copy of said resolution in three public places
within the proposed improvement district for at least fourteen (14)
days prior to the time fixed for said hearing. No notice other than
that required by this section need be given.



36415.  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 said 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.



36416.  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 said purpose or (d) the increasing, decreasing or
otherwise modifying of the purpose stated in the resolution of
intention. Said 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.



36417.  The board shall not order any modifications except after
publication of the resolution proposing said modifications once in
the same newspaper in which the resolution of intention was
published, said publication to be at least fourteen (14) days prior
to the date of hearing on said proposed modifications.



36418.  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 said
hearings may be held and conducted concurrently.



36419.  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. Said resolution ordering the district formed
shall state the estimated expense of carrying out the purpose
described therein. Said resolution shall also number and designate
said improvement district substantially as "Improvement District No.
____ of ____ District."



36420.  (a) 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.
   (b) If such bonds are to be general obligation bonds, such
indebtedness and the bonds shall be payable from assessments to be
levied and collected upon lands within said improvement district.
   (c) If such bonds are to be revenue bonds only revenues derived
from the operation of the improvement district works shall be pledged
to the payment or redemption thereof and the payment of interest
thereon, and such revenue bonds shall not be a general debt liability
or obligation of the district.



36421.  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 bond elections
held in the entire district.



36423.  Bonds of said district for said improvement district shall
be issued and sold in substantially the same manner and upon the same
terms and conditions as bonds of the entire district, except that
(a) if such bonds are general obligation bonds of the district for
such improvement district, assessments for the payment of said bonds
and the interest thereon shall be levied and collected from annual
assessments to be levied upon and collected from lands within said
improvement district or (b) if such bonds are revenue bonds, only the
net revenues of the improvement district shall be pledged to the
payment or redemption thereof and the payment of interest thereon.
The bonds shall be issued in the name of the district and, if general
obligation bonds, 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 said improvement district, except to the extent that
provision for such payment has been made by the board, as may be
permitted by law or, if revenue bonds, shall be designated "Revenue
Bonds of ____ District for Improvement District No. ____" and each
bond and all interest coupons shall state that it is payable from
revenues of the improvement district, except to the extent that
provision for such payment has been otherwise made by the board, as
may be permitted by law.


36424.  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 general obligation bonds and warrants
of said district for such improvement district as they become due and
also for the payment of operating expenses of said 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 general
obligation bonds and warrants of the district for said improvement
district and the interest thereon as the same becomes due and also to
pay operating expenses for said improvement district.



36424.1.  (a) This section applies only to the Santa Margarita Water
District.
   (b) The Legislature finds and declares both of the following:
   (1) In 1978, the voters of the Santa Margarita Water District
authorized the sale of bonds for its improvement district number four
in which the bond proceeds are available for water and sewer
facilities.
   (2) In 1998, the Capistrano School District created a Mello-Roos
Community Facilities District in which the bond proceeds are
available for water, sewer, roads, and other facilities for a portion
of the area to be served by the improvement district.
   (c) It is the intent of the Legislature to allow the Santa
Margarita Water District the flexibility to establish equity with
regard to the manner in which the district's water and sewer bonds
are repaid, recognizing that a portion of the water and sewer
facilities for the improvement district area will be financed by
bonds issued pursuant to the Mello-Roos Community Facilities Act of
1982 (Ch. 2.5 (commencing with Sec. 53311), Pt. 1, Div. 2, Title 5,
Gov. C.), instead of all water and sewer facilities being financed by
the district's water and sewer bonds.
   (d) For the purpose of making the annual estimate of the amount
required to pay the principal of, and interest on, general obligation
bonds of the Santa Margarita Water District for improvement district
number four pursuant to Section 36424, the board of the district may
designate two separate areas within the improvement district, with
one area financed by the school district's bonds under Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of
the Government Code and the other area not so financed.
   (e) If the district exercises the authority authorized by this
section, the amount of principal and interest allocated each year to
the area without the bonds issued under Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the Government
Code (1) shall not be less, to the extent possible, than the amount
needed to repay the principal and interest actually owed on the water
and sewer bonds if that amount is spread uniformly across all of the
assessed value of property within the improvement district, and (2)
shall not be more, to the extent possible, than that amount that
would have been allocated if (A) all water and sewer facilities had
been financed by the water district's water and sewer bonds, subject
to a limit of the amount of water and sewer bonds actually
authorized, and (B) the entire improvement district was responsible
to repay these amounts.
   (f) The board shall not designate separate areas unless it
receives a report from an independent financial consultant or
engineer that the designation of the proposed areas and the
allocation of the estimated amount required to repay the principal
of, and interest on, the bonds to the areas, in accordance with
subdivision (e), will not adversely affect the board's ability to
levy ad valorem assessments that will be sufficient to pay the
principal of, and interest on, the bonds and the board determines
that the designation of the areas and the allocation of the amount
will not be adverse to the interests of the holders of the bonds.
Notwithstanding subdivision (e), if the report indicates that the
allocation described in subdivision (e) will adversely affect the
board's ability to levy ad valorem assessments that are sufficient to
pay the principal of, and interest on, the bonds or that that
allocation may be adverse to the interests of the holders of the
bonds, the district may designate two separate areas within
improvement district number four in accordance with subdivision (d)
and levy ad valorem assessments in amounts necessary to avoid those
adverse effects.



36425.  In addition to the charges authorized to be fixed and
collected pursuant to Article 4 (commencing with Section 35470) of
Chapter 2 of 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 and warrants of the district issued for an
improvement district or for the operating expenses of that
improvement district, may fix and collect charges for the making of
water available to the holders of title to land in that improvement
district or the occupants thereon. The 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 4 for charges to be fixed and collected within the entire
district, except that the additional charges fixed and collected
from an improvement district shall be expended only for the payment
of the principal of, and interest upon, bonds and warrants of the
district issued for the improvement district or for payment of the
operating expenses of the improvement district.



36426.  Except as otherwise provided in this chapter, the provisions
of this division applicable to bonds and warrants of the district
and assessments therefor shall, so far as consistent with this
chapter, apply to bonds and warrants of the district for improvement
districts therein.



36427.  If general obligation bonds of the district for an
improvement district thereof shall have been issued, the treasurer
shall establish within the general obligation bond fund for the
district provided for in Section 35902 a separate account for general
obligation bonds of the district for each improvement district to
which shall be apportioned such portion of the general obligation
bond fund as is applicable to the general obligation bonds of the
district for the particular improvement district. The money in any
separate account shall be used for the payment of the general
obligation bonds of the district for the particular improvement
district and interest thereon and until the general obligation bonded
indebtedness of the district therefor is discharged shall not be
used for any other purpose.



36428.  After the formation of an improvement district additional
lands contiguous or noncontiguous thereto may be included therein
upon such terms and conditions as may be fixed by the board. If the
board is of the opinion that territory should be added to an
improvement district, the board shall adopt a resolution of intention
which shall state:
   (a) The intention of the board to add certain territory to
Improvement District No. ____ of ____ District;
   (b) That a map showing the exterior boundaries of the territory to
be annexed, which map shall govern for all details as to the extent
of the area to be annexed, is on file with the secretary of the
district and is available for inspection by any person or persons
interested;
   (c) The terms and conditions of annexation, if any;
   (d) If assessments will be levied for carrying out any purpose of
said improvement district including the payment of principal of and
interest on any general obligation bonds or warrants outstanding,
such assessments shall be levied exclusively upon the lands in said
proposed improvement district including the territory annexed
thereto;
   (e) If revenues are to be used for carrying out any purpose of
such improvement district, including the payment of principal of and
interest on any revenue bonds outstanding, such revenues shall be
limited to revenues derived from the operation of the improvement
district works, including the territory annexed thereto.
   (f) The time and place for hearing by the board on the question of
the annexation of said territory to said improvement district and
any other matter relating to any of the foregoing; and
   (g) That at said time and place any persons interested including
persons owning land within the area to be annexed to the improvement
district may appear and be heard. Notice of said hearing shall be
given in the same manner as provided in Section 36414.



36429.  At the time and place fixed or at any time and place to
which the hearing is continued, the board shall hold the hearing
provided for by said resolution of intention at which hearing any
person interested, including all persons owning land in the district
or in the territory to be annexed to the improvement district, may
appear and be heard concerning any matters set forth in the
resolution of intention or any matters material thereto.



36430.  At the hearing the board may adopt a resolution proposing
modifications relating to any or all of the following:
   (a) Modification of the boundaries of the territory to be annexed;
   (b) The addition to the territory proposed to be annexed of lands
of which in its opinion will be benefited by being annexed to said
improvement district;
   (c) The exclusion from the territory to be annexed of any lands
described in the resolution of intention which in its opinion will
not be benefited by being annexed to said improvement district; or
   (d) The terms and conditions set forth in the resolution of
intention or if none the board may adopt terms and conditions.
   Said resolution proposing modification shall describe the proposed
modifications and shall fix a time and place for a hearing by the
board thereon. The board shall not order any modifications except
after publication of the resolution proposing said modifications as
provided in Section 36417.



36431.  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 territory annexed to said
improvement district upon the terms and conditions set forth in said
resolution of intention.



36432.  As an alternative procedure for the annexation of land to an
improvement district, additional lands may be included within any
improvement district by resolution of the board declaring the
territory annexed after receipt by the board of written consent of
the owners of all of the land to be annexed thereto which consent
shall include the terms and conditions of annexation, if any.



36433.  The board may advance general funds of the district to
accomplish an approved plan of works of an improvement district.



36434.  The board shall repay the district for any advance of funds
with any money received which is authorized by law to be used for
such a purpose including the proceeds of the sale of bonds and
warrants authorized for the purposes of the improvement district.




36435.  After adopting the resolution ordering the improvement
district formed, the board may provide for the issuance of warrants
of the district for the improvement district in an amount not
exceeding the estimate stated in the resolution ordering the
improvement district formed, such warrants to be payable from
assessments to be levied and collected upon the lands within said
improvement district.



36436.  Warrants of said district for said improvement district
shall be issued and sold in substantially the same manner and upon
the same terms and conditions as warrants of the entire district,
except that assessments for the payment of said warrants and the
interest thereon shall be levied and collected from annual
assessments to be levied upon and collected from lands within said
improvement district. The warrants shall be issued in the name of the
district and shall be designated "Warrants of ____ District for
Improvement District No. __" and each warrant and all interest
coupons thereon 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 said improvement district, except to
the extent that provision for such payment has been made by the
board, as may be permitted by law.



36437.  Except as otherwise provided in this chapter, the provisions
of this division applicable to warrants of the district and
assessments therefor shall, so far as consistent with this chapter,
apply to warrants of the district for an improvement district
therein.



36438.  Pursuant to the procedure hereinafter set forth in this
chapter, two or more existing coterminous improvement districts
formed pursuant to the provisions of this chapter may be consolidated
into one improvement district. In such instance the consolidated
improvement district may be designated in such manner as the board
may designate. Any authorized but unissued bonds may be issued and
sold as the bonds of the consolidated improvement district. Such
bonds, as well as any funds on hand from bonds previously issued by
any of the improvement districts consolidated into one improvement
district as hereinafter provided or any other funds of any such
improvement districts, shall be used in the manner provided by law
for the original authorized purposes. However, any such use of funds
shall be to accomplish the plan of works originally established or as
subsequently amended.
   To the extent assessment, standby charges, or other charges are
necessary to be levied or collected by reason of any such improvement
districts consolidated hereunder into one improvement district, such
assessments, standby charges, or other charges may be collected by
the consolidated improvement district provided for hereunder.
Thereafter, the amount so collected shall be utilized to satisfy the
obligations for which such assessments or standby charges were levied
and collected.



36439.  In the event that the board determines it to be in the best
interests of the district to consolidate any two or more existing
coterminous improvement districts formed under this chapter, it may
by resolution adopted by a four-fifths vote, declare its intention to
consolidate such improvement districts. The resolution so adopted
shall identify the improvement districts to be consolidated and shall
set forth the total amount of authorized bonds, as well as the
amount of outstanding bonds, of each of the improvement districts
proposed to be consolidated, the purposes of each such improvement
district, and the designation of the proposed consolidated
improvement district. The resolution of intention shall set forth a
legal description of the existing coterminous improvement districts
to be consolidated and provide that notice be given in a manner
provided in Section 36414. Additionally, the resolution shall fix a
date, time, and place for a public hearing on the proposed
consolidation.



36440.  At the conclusion of the hearing on the resolution of
intention provided for in Section 36439, the board may adopt a
resolution declaring the existing coterminous improvement districts
described in the resolution of intention to be consolidated in one
improvement district which shall be designated therein. The
resolution shall contain the legal description thereof as well as a
statement of the purposes of the consolidated improvement district.
If the parent district has adopted the alternative method for the
levy, collection and enforcement of district assessments by the
county and is operating under the provisions of Part 7.5 (commencing
with Section 37200) of this division, it shall file a statement as
required by Chapter 8 (commencing with Section 54900) of Part 1,
Division 2, Title 5 of the Government Code. The resolution shall
contain a determination that such consolidation is in the best
interests of the present and future property owners and taxpayers.
Any such resolution shall be subject to referendum held within the
boundaries described in the resolution adopted as provided for
herein.



36441.  The provisions of Sections 36438 to 36440, inclusive, are in
the alternative to and shall not affect any existing provisions of
this division.


36442.  After the formation of an improvement district, lands may be
detached therefrom upon any terms and conditions as may be fixed by
the board. If the board determines that territory should be detached
from an improvement district, the board shall adopt a resolution of
intention which shall state the following:
   (a) The intention of the board to detach certain territory from
Improvement District No. ____ of ____ District.
   (b) That a map showing the exterior boundaries of the territory to
be detached, which map shall govern for all details as to the extent
of the area to be detached, is on file with the secretary of the
district and is available for inspection by any person or persons
interested.
   (c) The terms and conditions of the proposed detachment.
   (d) That the assessments for carrying out any purpose of the
improvement district, including the payment of principal of and
interest on any bonds or warrants outstanding, shall or shall not be
continued to be levied to the extent and in the manner provided for
in the District Reorganization Act of 1965 upon the lands in the
territory to be detached.
   (e) The time and place for a hearing by the board on the question
of the detachment of such territory from the improvement district and
any other matter relating to any of the foregoing.
   (f) That at such time and place any persons interested, including
persons owning land within the area to be detached from the
improvement district, may appear and be heard. Notice of such hearing
shall be given in the same manner as provided in Section 36414.



36443.  At the time and place fixed, or at any time and place to
which the hearing is continued, the board shall hold the hearing
provided for by such resolution of intention. At the hearing any
person interested, including all persons owning land in the district
or in the territory to be detached from the improvement district, may
appear and be heard concerning any matters set forth in the
resolution of intention or any matters material thereto.



36444.  At the hearing, the board may adopt a resolution proposing
modifications relating to any or all of the following:
   (a) Modification of the boundaries of the territory to be
detached.
   (b) The exclusion from the territory to be detached of any lands
described in the resolution of intention which, in its opinion, will
be benefited by remaining part of the improvement district.
   (c) The terms and conditions set forth in the resolution of
intention, or if none, the board may adopt terms and conditions.
   Such resolution proposing modifications shall describe the
proposed modifications and shall fix a time and place for a hearing
by the board thereon. The board shall not order any modifications
except after publication of the resolution proposing the
modifications as provided in Section 36417.



36445.  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 territory detached from the
improvement district upon the terms and conditions set forth in the
resolution of intention.



36446.  As an alternative procedure for the detachment of land from
an improvement district, lands may be detached from any improvement
district by resolution of the board declaring the territory detached
after receipt by the board of written consent of the owners of all of
the land to be detached therefrom, which consent shall include the
terms and conditions of annexation, if any.