An Act To Allow A Water District Created By Special Act Of The Legislature To Borrow Money And Issue A Warrant Prior To A Default

LD 481 allows water districts created by special legislative acts to borrow money and request repayment from their constituent municipalities *before* they default on debt payments. Specifically, if a district determines its water charge revenues won’t cover operating expenses for the current fiscal year, it may borrow funds to pay principal, interest, and borrowing costs, then immediately issue a reimbursement request to the municipalities it serves. The district must include all available funds and expected expenses in its revenue calculation and submit a financial management plan to the commission within 30 days. This applies only to districts that have previously approved the provision or obtain new approval. The bill changes existing law to provide an early financial tool for districts facing cash flow shortfalls.