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HomePublic Utilities CodeDiv. 10Pt. 16Ch. 6Art. 1§ 105200 District Bond Issuance Limits

§ 105200 District Bond Issuance Limits

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

§ 105200 District Bond Issuance Limits

This law says the school board can ask voters to approve borrowing money by selling bonds, but the total bonds can’t be more than 15% of the district’s property value and must follow limits on term and interest.

Key Takeaways

  • •Board must get a two‑thirds vote before putting a bond question on the ballot.
  • •Voters decide if the district can borrow, but the total bonds can’t exceed 15% of the district’s property value.
  • •Bonds can’t run longer than 50 years and can’t have an interest rate higher than 7% per year.

Example

A school district wants to build a new gym and needs $2 million. The total taxable property in the district is valued at $20 million.

The board must hold a vote of two‑thirds of its members, then put the bond proposal on a ballot. Voters decide if the district can borrow up to 15% of $20 million ($3 million). Since $2 million is under that limit, the proposal could be approved.

How to Calculate

Maximum bond amount = 0.15 × Assessed value of taxable property

  1. Find the total assessed value of all taxable property in the district (from the latest equalized assessment roll).
  2. Multiply that value by 0.15 (or 15%).
  3. The result is the most money the district may issue in bonds under this law.

District property value is $30 million.

Result: Maximum bond amount = 0.15 × $30,000,000 = $4,500,000

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

Official Source
View on CA.gov

§ 105200 District Bond Issuance Limits

Whenever the board deems it necessary for the district to incur a bonded indebtedness for the acquisition or improvement of real property authorized by this part or necessary or convenient for the carrying out of the powers of the district, the board shall, by ordinance, adopted by a vote of two-thirds of all members of the board, so declare and call an election to be held in the district for the purpose of submitting to the qualified voters thereof the proposition of incurring indebtedness by the issuance of bonds of the district, provided the total amount of bonds issued and outstanding pursuant to this article shall not exceed 15 percent of the assessed value of the taxable property of the district as shown by the last equalized assessment roll of the counties within the district. The ordinance shall state: (a) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs incidental to or connected with the accomplishment of those purposes, including, without limitation, engineering, inspection, legal, fiscal agents, financial consultant, and other fees; bond and other reserve funds; working capital; bond interest estimated to accrue during the construction period and for a period not to exceed three years thereafter; and expenses of all proceedings for the authorization, issuance, and sale of the bonds. (b) The estimated cost of accomplishing those purposes. (c) The amount of the principal of the indebtedness. (d) The maximum term the bonds proposed to be issued shall run before maturity, which shall not exceed 50 years from the date thereof or the date of each series thereof. (e) The maximum rate of interest to be paid, which shall not exceed 7 percent per annum. (f) The proposition to be submitted to the voters, which may include one or more purposes. (g) The date of the election. (h) The manner of holding the election and the procedure for voting for or against the measure. (i) The ordinance may also contain any other matters authorized by this part or any other law. (Added by Stats. 2002, Ch. 341, Sec. 4. Effective January 1, 2003.)

Last verified: January 11, 2026

Key Terms

bonded indebtednessordinancetwo-thirds vote15 percentassessed value50 years7 percent

Related Statutes

  • § 100400 Vta Bond Approval Process
  • § 30900 District Bond Authorization Process
  • § 105208 Bond Election Expiration Voidance
  • § 102501 District Bond Issuance Process
  • § 103500 District Bond Issuance Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 105200.
View Official Source