SECTIONS 81425-81435 - California Statutes

WATER CODE

SECTION 81425-81435

81425. The board shall adopt a budget for each fiscal year.

81426. The accounts of the agency shall be audited annually in
accordance with generally accepted auditing standards by independent
certified public accountants with experience in auditing the accounts
of local public entities.

81427. The agency may borrow money, incur indebtedness, and issue
notes and bonds, as provided in this division or as otherwise
authorized by law.

81428. (a) The agency may issue revenue bonds upon the adoption of
an ordinance by a two-thirds vote of all of the members of the board
present and voting which also represents at least 51 votes determined
pursuant to Section 81405. For the purposes of issuing bonds
pursuant to this subdivision, the agency need not conduct an election
or otherwise secure the approval of the voters within the boundaries
of the agency.
(b) The agency shall publish a notice in a newspaper of general
circulation at least 15 days before the meeting at which issuance of
revenue bonds is to be considered and shall provide an opportunity
for public comments during that meeting and before the directors vote
on the issuance of those bonds.

81429. The agency may issue bonds for the purpose of refunding any
revenue bonds of the agency, whether due or not due.

81430. The agency may issue negotiable promissory notes to acquire
funds for any agency purpose. The notes shall have a term not to
exceed five years. The total amount of notes issued pursuant to this
section that may be outstanding at any one time may not exceed one
million dollars ($1,000,000).

81431. The authority granted pursuant to the Improvement Act of
1911 (Division 7 (commencing with Section 5000) of the Streets and
Highways Code), the Municipal Improvement Act of 1913 (Division 12
(commencing with Section 10000) of the Streets and Highways Code),
the Improvement Bond Act of 1915 (Division 10 (commencing with
Section 8500) of the Streets and Highways Code), and the Mello-Roos
Community Facilities Act of 1982 (Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the Government
Code) may be exercised by the agency to carry out this division.

81432. Bonds and other evidences of indebtedness issued by the
agency are legal investments for all trust funds and for funds of all
insurers, commercial and savings banks, trust companies, and state
schools. Funds that may be invested in bonds of cities, cities and
counties, counties, school districts, or other local agencies may
also be invested in bonds and other evidences of indebtedness of the
agency.

81433. The board may impose assessments sufficient to pay the
operating expenses included in the budget, which shall be an
obligation of each member public entity, the California Water Service
Company, and Stanford University. The assessments shall be based on,
and proportional to, water delivery amounts described in Section
81460.

81434. The agency may use proceeds of bonds authorized by this
division for the construction, reconstruction, or improvement of any
works carried out by the agency. The agency may also make proceeds of
bonds authorized by this division available to other local public
agencies on mutually satisfactory terms and conditions to assist in
the construction, reconstruction, or improvement of works designed
and intended in whole or in part to furnish water to the members of
the agency, whether those works are carried out jointly by the agency
and other local public agencies, or solely by those other public
agencies.

81435. The agency may impose reasonable rates, fees, and charges on
Stanford University, the California Water Service Company, and the
agency's member public entities for any program or service provided
or work performed by the agency. The agency may also impose
reasonable rates, fees, and charges on any other public or private
entity that enters into a contract with the agency for use of any
program or service provided or work performed by the agency. These
rates, fees, and charges shall be at least sufficient to generate
revenue to pay the principal and interest on any bonds issued by the
agency to carry out the work. The agency shall be solely responsible
for servicing the debt on any bonds it issues and the State of
California has no responsibility for those bonds.