Article 4. Finances And Taxation of California Health And Safety Code >> Division 5. >> Part 3. >> Chapter 4. >> Article 4.
The clerk shall file in the office of the county assessor a
certified copy of each resolution of the board that affects a
district in any of the following ways:
(a) Establishes it.
(b) Annexes territory to it.
(c) Withdraws territory from it.
(d) Dissolves it.
The county assessor shall thereafter in making up the assessment
roll segregate on it the property included in the district.
The board may levy a tax each year upon the real property in
the district sufficient to defray the cost of maintaining, operating,
and repairing the sewers in the district, of maintaining the
district, and of meeting such other expenditures as are authorized by
this chapter. The amount of taxes to be collected from the levy made
upon property located within the incorporated area of a city may be
paid in whole by the city, if the city elects to make such payment as
provided in Section 4892.1.
If a district is divided into zones, the board of supervisors may
determine what portion of the amount of money to be secured from the
levy of taxes shall be secured from each zone within the district.
The annual tax levy may include a reserve for contingencies
not to exceed 10 percent of the total levy. The contingency reserve
shall be available for expenditure during the fiscal year for which
the levy was made for necessary expenses of the district for which no
specific appropriation has been made. The board may provide for the
cancellation of the contingency reserve at the end of each fiscal
year and for the establishment of such reserve as a specific
appropriation or reserve or both or may carry it forward as
encumbered surplus and add to it.
The tax shall be levied and collected at the same time and in
the same manner as general county taxes levied for county purposes
and when collected shall be paid into the county treasury to the
credit of the maintenance fund of the district and shall be used only
in furtherance of the purposes of this chapter.
On or before the first day of July the governing body of
any city, the area of which, in whole or in part, is included within
one or more sewer maintenance districts, may elect to pay out of
municipal funds, in lieu of providing sewer maintenance service to
such territory, the whole of the amount of taxes which will be levied
for district purposes for the fiscal year commencing upon said first
day of July upon property located within such city.
The election shall be made by the adoption of an order reciting
that the city, pursuant to this section, elects to pay the whole of
the amount of taxes which will be levied by said district or
districts upon property located within the incorporated limits of the
city and stating the time and manner in which payment shall be made.
Upon the adoption of the order a certified copy of the same shall
be presented to the governing body of the district or districts for
approval. If the governing body of the district or districts is
satisfied that the financial condition of the city reasonably will
assure such payment and if the time and manner of payment is
acceptable, the governing body of the district or districts shall by
order approve the city's election to pay taxes. Immediately upon the
adoption of the order approving the city's election to pay the taxes,
certified copies of each order shall be filed with the county
auditor, county assessor and county tax collector.
Thereafter, if the whole of the taxes which are levied on property
within the city is to be paid by the city, the county auditor shall
not extend the district tax on such property.
If the payment made by any city shall exceed the amount of
district taxes which have been levied against property within the
city, the amount of such excess without interest shall be refunded to
the city prior to the close of the fiscal year for which the payment
Any election to pay taxes pursuant to this section shall be
effective only for the fiscal year for which made.
If a district is organized in any year too late for the levy
of a tax in that year or in the next ensuing year, the board is
hereby authorized to transfer funds of the county not immediately
needed for county purposes to the maintenance fund of the district to
be used for the payment of the expenses of such district until such
time as special assessment tax receipts are available therefor. The
board shall include in the levy of taxes for the district for the
first fiscal year in which a tax may be levied, a sum sufficient to
repay to the county the amounts so transferred to the district for
the portion or portions of the preceding fiscal year or years for
which no levy of taxes was made for that purpose and the amounts so
transferred shall be retransferred to the county treasury from the
maintenance fund of the district out of the first available receipts
from the tax levy.
Pursuant to a resolution adopted by its board of supervisors,
a county may lend any of its available funds to a county sewer
maintenance district located wholly within the county for use by the
district in emergency situations for the construction,
reconstruction, and repair of sewer systems, for replacement of
obsolete equipment, or to defray unusual maintenance costs within the
district. Any such loan may be restricted for use in a temporary
zone formed under the provisions of Section 4894.1 in a district. The
loan shall not exceed 100 percent of the total revenues of the
district or zone for the year in which the loan is made.
The board of supervisors in the resolution shall specify the date
and manner in which the funds shall be repaid. The resolution may
provide for the payment of interest on the loan and the loan shall be
repaid at the times and in the manner specified in the resolution
which time shall not in any event exceed 10 years.
Funds so loaned shall be deemed to have been appropriated by the
district or temporary zone in a district for the purposes for which
the loan was made. Any area of a district, or of a temporary zone in
a district, which is included in a city by annexation or
incorporation after a loan has been made shall continue to be taxed
for the repayment of its proportionate part of the unpaid balance of
If a zone is formed to be responsible for the loan, the board of
supervisors shall, in the first fiscal year in which a special tax
may be levied in said zone, and in each succeeding year of the
duration of the zone, levy a special tax upon the taxable property in
the zone for the purpose of repaying the amount lent to the district
by the county. When the loan has been repaid, the zone shall
The board may also borrow funds from another sewer maintenance
district, and the board may lend available district funds to another
sewer maintenance district, subject to the same terms and conditions
as apply to loans of county funds.
When the board of supervisors has so declared in its
resolution of intention to order the formation of a sewer maintenance
district or any annexation thereto, the board of supervisors may, in
its resolution ordering the formation of a sewer maintenance
district or any annexation thereto, order the district divided into
tax assessment zones. Tax assessment zones may be formed at a time
other than at the formation of the district or any annexation thereto
if pursuant to the same procedure of resolution, notice, and hearing
as are applicable under this chapter to the annexation of territory.
No district shall be divided into zones unless the board of
supervisors finds that a tax assessment zone requires special
services or special facilities in addition to those provided
generally by the sewer maintenance district or the replacement of
obsolete facilities or equipment, and that the tax levy is
commensurate with the special benefits to be provided in the zone.
The boundaries of tax assessment zones may be changed or a zone may
be dissolved in the same manner that a zone may be formed in an