Santa Clara Valley Water District.

The Santa Clara Valley Water District Act creates the Santa Clara Valley Water District, and authorizes the district to provide for the conservation and management of flood, storm, and recycled waters, and other waters, for beneficial uses and to enhance natural resources in connection with carrying out the purposes of the district. The act authorizes the district to levy ad valorem taxes or assessments in the district to pay the general administrative costs and expenses of the district, to carry out the act's objects or purposes, and to pay the costs and expenses of constructing or extending works within the district. The act additionally authorizes the district to levy taxes or assessments upon all property or all real property within a portion of the district for specified purposes. The act authorizes the district to issue bonds for specified purposes, and requires that the bonds be paid by revenue derived from those tax levies and assessments, except the ad valorem taxes or assessments. This bill would additionally authorize the district to use the revenues from the ad valorem taxes or assessments to pay for the bonds. Existing law authorizes the district to issue bonds in accordance with the Revenue Bond Law of 1941 for the purpose of financing the construction, reconstruction, replacement, acquisition, or improvement of any facility or facilities necessary or convenient for the storage, treatment, transmission, or distribution of water for beneficial use within the district and for the purpose of generation or transmission of electricity. The Revenue Bond Law of 1941 requires the district to pay the principal, interest, and premiums for a bond issued in accordance with that law solely from and secured by a lien upon its gross revenues. This bill would authorize the district to pay bonds from the net revenues, rather than gross revenues, of its water system, as specified. Existing law authorizes the district to borrow money and incur indebtedness, not to exceed $8,000,000, by action of the board of directors and without the necessity of calling and holding an election, and prohibits the resulting indebtedness from exceeding 85% of the estimated amount of the district's revenues, charges, taxes, and assessments that will be available in that fiscal year for payment of short-term notes, including interest. This bill would delete the $8,000,000 limit. Existing law prohibits, until December 31, 2023, the district from compensating its directors for more than a total of 15 days in any calendar month, as specified. This bill would extend the above provision indefinitely. This bill would also make various nonsubstantive changes throughout the act. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Santa Clara. This bill would incorporate additional changes to Section 4 of the Santa Clara Valley Water District Act proposed by AB 1469 to be operative only if this bill and AB 1469 are enacted and this bill is enacted last.