Article 4. Additional Sacramento-yolo Port District Bonds of California Harbors And Navigation Code >> Division 8. >> Part 6. >> Chapter 4. >> Article 4.
Pursuant to this article, the Sacramento-Yolo Port District
may also create an additional bonded debt, in addition to all other
indebtedness authorized by the provisions of this chapter, up to but
not in excess of 1 percent of the assessed value of all taxable real
and personal property within the district.
This bonded indebtedness may be created solely for the
purpose of providing funds for the acquisition, construction,
improvement, or extension of revenue-producing harbor improvements of
a self-liquidating character.
Any bonds issued pursuant to this article shall be
authorized by ordinance passed by two-thirds of all of the members of
the board. The ordinance shall not become effective until approved
by a two-thirds vote of the county supervisors who represent any
portion of the territory which is included within the district.
Except as provided in this section, an election need not be held
within the district, and it is unnecessary to secure the approval of
the electors within the district for the issuance of bonds for the
purposes and within the limitations of this article.
The ordinance shall become effective 30 days from the date of its
passage, unless a petition protesting the ordinance is presented to
the board pursuant to Section 9144 of the Elections Code, prior to
the effective date of the ordinance. If the petition is timely filed,
proceedings for the adoption of the ordinance shall be conducted
pursuant to Article 2 (commencing with Section 9140) of Chapter 2 of
Division 9 of the Elections Code, and, as used in these sections,
"board of supervisors" means the board of port commissioners, and
"county" means the Sacramento-Yolo Port District.
The bonds of any issue may be issued in one or more series.
The bonds of such series shall be payable within 30 years from their
date and shall mature serially at such times as may be fixed by the
board, but the earliest maturityof the principal of the bonds of any
series shall be fixed at a date not more than 10 years from the date
of issue of such series.
The bonds may be issued in such denominations as the board
determines, except that no bond shall be of a denomination less than
one hundred dollars ($100) nor of a greater denomination than one
thousand dollars ($1,000).
The bonds shall be payable on the day and at the place or places
fixed in such bonds, with interest at the rate specified in the
bonds, which rate shall not be in excess of 6 percent per annum of
the face amount, payable annually or semiannually.
The board may provide for redemption of any bonds before maturity
at prices and upon terms and conditions determined by it. A bond
shall not be subject to call or redemption prior to maturity unless
it contains a recital on its face to that effect.
If any officer whose signature or countersignature appears
on the bonds or coupons ceases to be an officer before the delivery
of the bonds to the purchaser, his signature or countersignature is
nevertheless as valid and sufficient for all purposes as if he had
remained in office.
Bonds may be issued and sold by the board for not less than their
par value and accrued interest to date of delivery, at such times and
under such conditions as may be designated by the board.
The proceeds shall be placed in the treasury of the district to
the credit of the proper improvement fund and applied exclusively to
the objects and purposes mentioned in the ordinance. Said purposes
may include bond interest during construction and for a period not to
exceed one year after completion of construction, and creation of a
reserve fund to secure payment of bond interest and principal.
The form of the bonds shall be prescribed by the board and
they shall be signed by the officer or officers that the board
designates. The coupons appertaining to the bonds shall be numbered
consecutively and shall be signed by the facsimile signature of the
officer or officers that the board has designated.
The income and revenue derived or to be realized from the
harbor improvement acquired, constructed, improved or extended from
the proceeds of the bonds shall be deposited in a special fund and
kept separate and apart from all other revenues of the district. It
shall be applied, firstly, to the creation of an interest fund,
herein designated as "interest fund," for the payment of the annual
interest due or to become due upon the bonds during the next ensuing
fiscal year and before the time for the fixing of the next general
tax levy in the counties in which the district is located.
The special fund shall be applied, secondly, to the
creation of a sinking fund, herein designated as "sinking fund," to
provide for the payment of the principal of the bonds at or before
their maturity date or dates.
Any additional revenues over and above the amounts
required to be deposited in the interest fund and the sinking fund,
may be deposited in an operation fund, herein designated as
"operation fund," to be applied to the costs of operation and
maintenance, including reasonable repairs, depreciation and capital
improvements of the particular revenue-producing harbor improvement
acquired, constructed, improved or extended by the issuance and sale
of the bonds.
Surplus revenues in the operation fund may be deposited
either in the interest fund or any reserve fund created to secure any
bonds or in the sinking fund, but money allocated to the interest
fund or the sinking fund shall not be transferred to any other fund
or used for any other purpose than the payment of the bonds and the
interest thereon so long as the bonds are outstanding.
The board, in and by the ordinance authorizing the
issuance of the bonds, shall hypothecate and allocate all of the
revenues to be realized from the revenue-producing harbor improvement
to be acquired or constructed, improved or extended from the
proceeds of the bonds to the payment of both principal and interest.
The allocation and hypothecation is irrevocable until all bonds
and the accrued interest thereon are paid.
The allocation and hypothecation shall be made in each case for
the exclusive benefit of the bonds to be issued for the purpose of
acquiring, constructing, improving or extending the particular
revenue-producing harbor improvement, and as additional security for
the payment of the principal and interest of the bonds.
But the allocation and hypothecation do not constitute the
exclusive source of payment. The bonds constitute general obligations
of the district and both principal and interest may be paid from any
money or sources of revenue of any kind, including taxes, on hand
and available for that purpose.
Whenever the revenues of the district are, or in the
opinion of the board will be insufficient to provide for the payment
in full of the principal or interest on the bonds, the board may, and
if the revenues in the interest fund are insufficient to meet the
next ensuing fiscal year's interest on the bonds issued and then
outstanding or if the moneys in the sinking fund are insufficient to
pay or provide for the payment of any bonds maturing during the next
ensuing fiscal year, or if any reserve fund has been drawn upon and
not replenished it shall cause a tax to be levied and collected, upon
all of the taxable property in the district, sufficient to meet all
sums coming due for principal and interest on the bonds during the
next ensuing fiscal year and before the time for fixing the next
general tax levy in the county in which the district is located or to
replenish such reserve fund.
The tax shall be levied and collected annually in the manner
provided by Chapter 5 (commencing with Section 6940) of this part,
and shall be in addition to all other taxes authorized to be levied
and collected. When collected, the tax shall not be used for any
purpose other than the payment of the bonds and the accruing interest
thereon or the replenishment of such reserve fund.
The Legislature hereby finds and declares that because of
the unique, complex problems existing with respect to the
Sacramento-Yolo Port District, as a large inland port district, it is
necessary that special legislation be enacted to authorize
additional, limited financing provisions for said port district, and
that a general law cannot be made applicable.