Airport districts: temporary negotiable notes.

The California Airport District Act provides for the formation, organization, and operation of airport districts and authorizes airport districts to issue temporary negotiable notes at not more than 8% interest and not exceeding $500,000 in total amount outstanding. Existing law relating to the maximum rate on notes issued by a local agency generally provides that the rate may not exceed 12% per year. The act requires that any note proposed to be issued pursuant to the act with a term longer than 5 years not be issued until after a public hearing is conducted with respect to the issuance and a resolution is adopted approving the issuance, as specified. The act also provides that these notes are general obligations of the district payable from revenues and taxes unless paid from other available funds of the district in the same manner as bonds of the district and that the maturity of the notes may not be later than 20 years from the date issued, and that the total aggregate amount of the notes outstanding at any one time may not exceed 2% of the assessed valuation of the taxable property in the district, or if the assessed valuation is not obtained, then 2% of the county auditor's estimate of the assessed valuation of the taxable property of the district evidenced by the auditor's certificate. This bill would delete these latter provisions.