SECTIONS 26460-26461 - California Statutes

GOVERNMENT CODE

SECTION 26460-26461

26460. The board shall fix the rates, fees and all other charges to
be made for all projects, services or facilities furnished,
acquired, constructed or completed under this chapter for the use
thereof by any persons or public or private agencies utilizing such
projects, services or facilities. Subject to such contractual
obligations as may be entered into by the board and the holders of
the revenue bonds issued under this chapter, the board is authorized
to change such rates, charges and fees from time to time as
conditions warrant. All rates, fees and charges shall be at all times
fixed to yield annual revenue equal to annual operating and
maintenance expenses including insurance costs and all redemption
payments and interest charges on the revenue bonds at any time issued
and outstanding in connection with the project of which such
facilities are a part as the same become due. The bond redemption and
interest payments shall constitute a first, direct and exclusive
charge and lien on all such fees, and charges and other revenues and
interest thereon and sinking funds created therefrom received from
the use and operation of the project for the acquisition,
construction or completion of which such revenue bonds were issued,
and all such fees and charges and other revenues, together with the
interest thereon shall constitute a trust fund for the security and
payment of such bonds and shall not be used or pledged for any other
purpose so long as such bonds, or any of them, are outstanding and
unpaid. The board may provide that the rates, fees and charges
established are minimum rates, fees and charges and subject to
increase or decrease in accordance only with the terms of the
indenture under which the revenue bonds were issued.

26461. Every contract entered into by the board for the use of any
project or the services or facilities thereof, acquired, constructed
or completed from the proceeds of the sale of revenue bonds shall
incorporate by reference the provisions of any indenture pursuant to
which the bonds were issued. Every such contract or lease shall also
refer to the provisions of this chapter with respect to the
obligation of the board to fix fees and charges to meet the payments
provided for in this chapter and in the proceedings for the issuance
of revenue bonds and all payments required to be made to the board
under such contract shall be subject to increase if and when the
board is required to increase rates or charges to meet its
obligations hereunder and under any indenture providing for the
issuance of bonds.