Section 4894 Of Article 4. Finances And Taxation From California Health And Safety Code >> Division 5. >> Part 3. >> Chapter 4. >> Article 4.
4894
. 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
the loan.
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
terminate.
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.