Taxation and Bonding for California Harbor Districts

Division 8, Part 3, Chapter 3 concerns taxation and bonds used with harbor districts.

Section 6090 states that all bonds issued are obligations of the district and, so long as the bonds are outstanding and unpaid, the board of supervisors of the county must at the time of fixing the general tax levy and in the manner provided for such general tax levy until the bonds are paid or until there is a sum in the treasury of the district set apart for that purpose.

In the event the district has moneys on hand in any year sufficient to meet all or part of the sum coming due for principal and interest on the bonds prior to the time that the proceeds of a tax levy, the annual tax for that year may be reduced to a sum sufficient to provide the balance of moneys necessary for the purpose of payment of said principal and interest.

Section 6091 requires the board, at least 30 days before the meeting of the board of supervisors at which the general tax levy is fixed, notify the board of supervisors in writing of the amount of money necessary to be raised by taxation to meet the payment of principal and interest on outstanding bonds.

In fixing the amount of money to be raised by taxation, the Board of Harbor Commissioners may take into account all moneys on hand and set aside in a fund for the purpose of paying said principal and interest and the amount of moneys to be raised by taxation is to be the amount required in addition to any moneys on hand and so set aside for the purpose of payment of said principal and interest.

Section 6092 requires the taxes to be levied upon all of the taxable property within the district taxable for county purposes and are in addition to all other taxes levied for all other county purposes.

Section 6092.5 allows a district to impose a special tax which is to be applied uniformly to all taxpayers or all real property within the district.

Section 6093 requires, on or before June 15 of each year, the district to estimate and determine the amount of money required by the harbor district and adopt a preliminary budget which is to be divided into three specified main classes.

Section 6093.1 requires, on or before June 15 of each year, the board to publish a notice throughout the district stating two specified items.

Section 6093.2 provides that, at the time and place designated in the published notice for the meeting, any taxpayer may appear and be heard regarding the increase, decrease or omission of any item in the budget or for the inclusion of additional items.

Section 6093.3 requires the district board to report the final budget to the board of supervisors after the budget hearing, but not later than the first day of August each year after making any changes in the preliminary budget.

Section 6093.4 requires the board of supervisors to levy a tax upon all the taxable property within the district sufficient to meet the amounts set forth in the final budget submitted by the district board. However, no taxes are to be levied for any capital outlay or capital outlay fund included in the final budget submitted by the district board, if not less than 10% of the qualified electors of the district have signed a petition filed with the board of supervisors protesting the levy for any capital outlay or capital outlay fund included in the final budget submitted by the district board.

Section 6094 authorizes the district to levy assessments, reassessments, or special taxes and issue bonds to finance waterway construction projects and related operations and maintenance, or operations and maintenance projects independent of construction projects in accordance with existing laws.

In addition, the district may levy and collect assessments and reassessments in the same manner as provided in law to pay any or all of five specified expenditures. The board may order the creation of a separate assessment roll to pay the allowable expenses of any single project or any group or system of projects. Also, all assessments, reassessments, and taxes levied by the district may be collected together with, and not separately from, taxes for county purposes.

In addition, any assessment or reassessment levied pursuant to this section may be apportioned on the basis of land use category, tonnage shipped on the waterway, size and type of vessel using the waterway, front footage, acreage, capital improvements, or other reasonable basis, separately or in combination, as determined by the district commissioners. No bond issued pursuant to this section may be used to fund the routine maintenance dredging of channels.