Section 44032 Of Article 2. Levy Of Assessments From California Water Code >> Division 14. >> Part 6. >> Chapter 6. >> Article 2.
44032
. If a contract with the state, the department, any other
district, or the United States requires the establishment of a
reserve fund for the payment by the district under the contract of
periodic service charges or capital charges, or both, or if the board
finds it to be necessary or desirable in the interest of the
district, the board may determine to levy an assessment to provide
such a reserve fund. In that event the board shall also determine the
amount of the initial deposit or deposits to be made in the reserve
fund and the amount of the balance, if any, to be maintained therein.
The total amount of the initial deposit or deposits to be made in
the reserve fund may be levied at one time, or in a series of
installments from time to time, in the same manner as periodic
service charges, as provided in Section 44030. Any later deposits
necessary in order to maintain a required balance in the reserve fund
shall be levied in the same manner. The reserve fund shall be used
solely for the payment of the charges for which it is established,
until all the charges have been paid. Any balance then remaining in
the reserve fund shall be transferred to the general fund of the
district.