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HomePublic Utilities CodeDiv. 10Pt. 3Ch. 7Art. 4§ 30950 District Pre-Tax Borrowing Authority

§ 30950 District Pre-Tax Borrowing Authority

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 30950 District Pre-Tax Borrowing Authority

Key Takeaways

  • •The district can borrow money if they need it before special taxes or other funds are available.
  • •The borrowed money must be paid back with interest (up to 6% per year) within 2 years.
  • •The total amount borrowed (including interest) cannot be more than 85% of the expected special tax or other money the district will get during that time.
  • •The borrowed money can only be paid back using special taxes or other specific funds, not regular money.

Example

A school district needs money to fix a broken playground before the special tax money comes in next year.

The district can borrow money now to fix the playground, but they have to pay it back with interest within 2 years using the special tax money they expect to get.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 30950 District Pre-Tax Borrowing Authority

Prior to the time moneys authorized by special taxes under Part 16 (commencing with Section 36000) of Division 2 of the Revenue and Taxation Code and already levied by the county are available or funds are allocated to the district under said part or other state or federal laws, the district may borrow money to provide funds for the purposes provided in Section 30636 of this code, and for the expenses of the calling, giving notice of, holding and conducting of any bond election under this part. The amount to be borrowed pursuant to this section shall be evidenced by notes bearing interest at a rate of not to exceed 6 percent per annum, payable annually or semiannually, maturing not more than two years from their date and subject to call and redemption at the option of the district at any time prior to their stated maturity dates on the terms and conditions specified by the board and stated in the notes. The amount to be borrowed pursuant to this section (including both the principal of and interest to maturity on the notes evidencing such borrowing) shall not exceed eighty-five percent (85%) of the special tax or said other moneys to be used to repay said notes and interest thereon and to be received by the district between the date of borrowing and the final maturity date of the notes, as estimated by the auditor at the time of the borrowing. The notes shall be payable only from special taxes authorized under Part 16 (commencing with Section 36000) of Division 2 of the Revenue and Taxation Code and already levied by the county, or from other moneys allocated under state laws other than this part, or federal laws. The form of the notes and the provisions of the resolution or resolutions of the board providing for their issuance and sale shall be governed by the applicable provisions of this article. (Repealed and added by Stats. 1966, 1st Ex. Sess., Ch. 90.)

Last verified: January 23, 2026

Key Terms

resolutionmaturitytaxation codeelectionavailabilityredemptionissuance

Related Statutes

  • § 100404 Bond Interest And Redemption
  • § 30904 Bond Interest And Redemption
  • § 50251 Refunding Bonds Exemption
  • § 50252 Refunding Bond Issuance Rules
  • § 90661 Refunding Bonds Exemption

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 30950.
View Official Source