The refunding bonds shall also be legal investments for fiduciaries and others as provided in Section 25.

SEC. 28. The board shall at the time for fixing the general tax levy for county purposes and in the manner of such general tax levy provided, levy and collect annually each year until said bonds are paid or until there shall be a sum in the treasury of such district set apart for that purpose to meet all sums coming due for principal and interest on said bonds, a tax sufficient to pay the annual interest on said bonds and also such part of the principal thereof as shall become due before the time for fixing the next general tax levy. There may be included in such tax a sum sufficient, in the judgment of the board to take care of anticipated delinquencies, except that if the maturity of the indebtedness created by the issuance of bonds be made to begin more than one year after the date of the issuance thereof, tax shall be levied and collected annually at the time and in the aforesaid manner, in an amount sufficient to pay the interest on said indebtedness as it falls due and also to constitute a sinking fund for the redemption thereof on or before maturity. The tax herein required to be levied and collected shall be in addition to all other tajes levied for district purposes and shall be collected at the time and in the same manner as other district taxes are collected, and be used for no other purpose than the payment of said bonds and accruing interest.

Such tax shall be levied upon all taxable property within the district excluding any property belonging to any county, municipality, or political subdivision within the district, or property belonging to the State of California or the United States. If the district has been divided into zones and the percentage of the amount to be raised for the redemption of principal and interest of said bonds from each such zone has been determined as provided in this act, the said amount of said tax levied shall be divided according to said percentage, and the percentage to be raised from the taxable property within each zone shall be levied upon and against the property in such zone as hereinbefore provided.

The provisions of law of this State prescribing the time and manner of levying, assessing, equalizing and collecting county property taxes including the sale of property for delinquency, and for redemption from such sale, and the duties of the several county officers with respect thereto, so far as they are applicable, and not in conflict with the specific provisions of this act, are hereby adopted and made a part hereof. Such officers shall be liable upon their several official bonds for the faithful discharge of the duties imposed upon them by this act. The board shall take the assessment on the equalized roll of the County of Sonoma as the basis for district taxes and have its taxes collected by the county officials of said county. On or before the first of August the board shall file with the auditor a certified copy of the map or plat showing the zones and the percentage of the amount to be raised from each zone. Thereafter each year all assessments shall be made and taxes collected for such district, by the county assessor and tax collector, respectively, of said County of Sonoma. The auditor of such county must, on or before the second Monday of August of each year, transmit to the board a statement in writing showing the total value of all property within the district, which value shall be ascertained from the equalized roll of such county for that year. Said statement shall also show the total value of all property in each of said zones respectively.

The board shall, on or before the first weekday in September, or if such weekday falls upon a holiday, then upon the first business day thereafter, fix the rate of tax for each zone, and designate the number of cents upon each one hundred dollars ($100) on the equalized roll, which rate of taxation shall be sufficient to raise the amount previously fixed by the board as hereinabove prescribed. Such acts by the board shall constitute a valid assessment of the property and a valid levy of the tax so fixed. The board must immediately thereafter transmit to the county auditor a statement of the rate of taxes so fixed by said board for each zone into which the district may be divided and the county auditor shall enter such rate upon the county tax roll. Such taxes so levied shall be collected at the same time and in the same manner as county taxes and when collected the net amount ascertained as hereinafter provided shall be paid to the treasurer of the district under the general requirements and penalties provided by law for the settlement of other taxes.

All taxes levied under the provisions of this act shall be a lien upon the property on which they are levied and unless the board has by resolution otherwise provided the enforcement of the collection of such taxes shall be had in the same manner and by the same means as provided by law for the enforcement

of the liens for state and county taxes, all provisions of law relating to the enforcement of the latter being hereby made a part of this act.

The amount of compensation to be charged by and paid to the county for the performance of service, as in this section provided, for and on behalf of such district, shall be fixed by agreement between the board of supervisors of the County of Sonoma, and the board, except that such compensation shall not exceed one-half percent of all moneys collected for such district as in this act provided. The amount so collected by such county shall be placed to the credit of the county salary fund.

SEC. 29. Notwithstanding Section 3720 of the Political Code, the Sonoma County Flood Control and Water Conservation District is validly created for the purposes of assessment and taxation. The creation of any zone in the district shall not be effective for purposes of assessment or taxation for the Fiscal Year 1949–1950 and shall not be effective for such purposes for any fiscal year thereafter unless the statement and map or plat required by Section 3720 of the Political Code are filed with the county assessor and the State Board of Equalization on or before the first of February of the year in which the assessments or taxes are to be levied. Until such time as the creation of any zone shall be effective for purposes of assessment or taxation, any tax or assessment levied by the board shall be levied at a uniform rate on all property in the district.

For the Fiscal Year 1949-1950, but for no other fiscal year, notwithstanding Section 28 of this act, the assessment and equalization of property for the purpose of district taxation shall be effected as provided in this section.

Assessments of the district for the Fiscal Year 1949-1950 are liens on the property the same as if they were county taxes, except that the district assessment liens attach as of noon on the day after this act becomes effective.

It is presumed that the assessments of property made by the county assessor and by the State Board of Equalization for county taxation purposes for the Fiscal Year 1949-1950 are the correct assessments for purposes of assessment by the district and the rolls prepared by the county assessor and the State Board of Equalization shall be used for purposes of levying and collecting the assessments for the district. If the ownership or taxable situs or value of any property changes between noon on the first Monday in March 1949 and the date on which attaches the lien for assessments of the district for the Fiscal Year 1949-1950, then, on petition of the taxpayer affected to the assessing authority, suitable entry shall be made on the assessment roll, in the manner prescribed by the State Board of Equalization, to indicate such change in the ownership or taxability or value of the property for purposes of assessment by the district.

In equalizing the assessments made by the county assessor, the Board of Supervisors of Sonoma County, sitting as the county board of equalization, in addition to its regular equalization duties, shall also, in the same manner and under the same rules, equalize the valuation of property for purposes of assessment by the district in accordance with the requirements of this section and any such changes made by the county board of equalization in the assessment roll shall be entered in the manner prescribed by the State Board of Equalization.

If, for purposes of assessments by the district, a change in the assessment for county taxation purposes is not sought under this section before the end of the period during which such assessment may be equalized, or corrected on a petition for reassessment, such assessment, if valid for county taxation purposes, is conclusively presumed to be the correct assessment for assessment purposes of the district.

The board may prescribe by ordinance any necessary procedure, in accordance with the policy of this act, for the purpose of assessing, equalizing, levying, and collecting taxes or assessments for the district for the Fiscal Year 1949-1950. Except as provided in this section, Section 28 of this act is applicable to the assessment and equalization of property for the purpose of district assessments for the Fiscal Year 1949-1950.

SEC. 30. After the first bond election in the district at which bonds shall be authorized by the electors of said district the board shall have power, in any year, to levy a tax upon the taxable property in said district as provided in Section 28 at the time and in the manner set forth therein, to carry out any of the objects or purposes of this act, and to pay the costs and expenses of maintaining, operating, extending and repairing any work or improvement of said district for the ensuing fiscal year. The board shall have power to control and order the expenditures for said purposes of all revenue so derived, except that taxes levied under this section for any one year shall not exceed five cents ($0.05) on each one hundred dollars ($100) of the assessed valuation of the property in

said district as said assessed valuation is shown on the last preceding assessment records for state and county purposes. Such tax shall be in addition to any tax levied to meet the bonded indebtedness of said district and all interest theeron. If said district has been divided into zones, the taxes to be levied as provided in this section shall be apportioned in accordance with the zones established for the levying and collection of taxes to pay the principal and interest of the bonds of the district.

SEC. 31. The provisions of this act relative to the performance of official duty as to any time or place, the form of any resolution, notice, order, list, certificate of sale, deed, or other instrument shall be deemed directory. No bond, coupon, assessment, or installment thereof, or of the interest or penalties thereon, or certificate of sale or deed shall be held invalid for error in the computation of the proper amount due on the same; provided, the error be found to be comparatively negligible or be found to be one in favor of the owner of the property affected thereby.

SEC. 32. This act shall be liberally construed to the end that the purposes may be effective. No error, irregularity, informality and no neglect or omission of any officer of the district in any procedure taken hereunder which does not directly affect the jurisdiction of the board to order the work done or improvement to be made shall void or invalidate such proceedings or any assessment for the cost of work or improvement done thereunder.

SEC. 33. If any provision of this act, or the application therof to any person or circumstance, is held invalid, the remainder of this act, or the application of such provision to other persons or circumstances, shall not be affected thereby. SEC. 34. This act shall be known as the "Sonoma County Flood Control and Water Conservation District Act."

SEC. 35. The area of the district is subject to periodical floods during the rainy seasons precipitated by the waters of the Russian River, which river is an important potential source of water for domestic, industrial, and agricultural uses inside and outside the watershed. During the dry season, said river would be without water if it were not for the foreign waters turned into the river. Recognizing this fact, the United States Army Engineers have made studies and recommendations for a proposed plan of improvement for flood control and allied purposes on the Russian River drainage basin located within the area of the district, and upon such recommendations, it is necessary that the district be zoned in such a manner to determine the varying benefits to property located withing the district, of the percentage of costs to be split among the zones created, and that no general law contains provisions for the issuance of bonds and for the purpose of raising funds to assist in such work. The cost of adequate flood control and water conservation is beyond the means of the property owners and taxpayers of the district, and it is necessary to negotiate to obtain financial aid from the United States Government. It is recommended by the United States Government and it is desirable to immediately form a political entity to satisfactorily deal with the agency of the United States Government.

Investigation having shown conditions in the County of Sonoma to be peculiar to that county, it is hereby declared that a general law cannot be made applicable thereto and that the enactment of this special law is necessary for the conservation, development, control, and use of said waters for the protection of life and property therein and for the public good.

Mr. McGOLDRICK. Now, the reasons why the people of the district are willing to make this lump-sum payment is that they consider this initial step of the project is essentially a flood-control project, with allied benefits of importance to the county.

We have demonstrated we are interested in it by asking the legislature to enact this law creating the district which we will operate ourselves.

In other words, again, we wish to operate this project locally, under local control. That is one of the things that generates the interest in paying this lump sum under general obligation bonds.

Now, Mr. Chairman, I realize that I have taken up your time. I do not want to take up the time either of the committee or of the other witnesses you have to hear. However, I would like to state in closing that I earnestly would ask that this project receive approval. It is.

something that is necessary for our county and something that the people are all interested in. At the present time I know of no objection to it, which is rather unique in this type of thing.

Senator MCCLELLAN. You did not know that the Bureau of Reclamation opposes it?

Mr. MCGOLDRICK. Well, I only found that out when we came here to Washington, Senator. I do not know that they have any specific opposition to it. I would like to hear what position they take on the

matter.

Senator MCCLELLAN. I do not think that they have opposition to the development of the project, but they do have opposition to the irrigation features, in that there is a departure in the plan from established irrigation law and policy.

Mr. McGOLDRICK. Well, we feel that in the initial stage the irrigation benefits are so minor that they are not of sufficient importance to attach jurisdiction to that Bureau.

Senator MCCLELLAN. Do you think that whatever differences there are could be ironed out?

Mr. McGOLDRICK. Very probably.

Senator MCCLELLAN. In other words, you are confronted with the same problem I am. Maybe my problem is a greater problem than yours, with reference to the Bureau of Reclamation on your project.

I just read a letter which will be placed in the record. I am not sure that this would be the proper place for it.

It is addressed to the chairman of this committee, Senator Chavez, pointing out the opposition to this project, also to the Humboldt project and the Grand Prairie project in Arkansas. I think the reasons are somewhat different but, yet, basically they are the same, in that there is a departure in the plans for these projects from the basic policies and laws of the reclamation service.

Mr. SCUDDER. Well, Senator, if I might inject myself, I believe our plan of meeting the obligation in our district, the setting up of this district, will obviate the opposition of the Bureau. I know that the representatives of the Bureau are here, and I would like to propound some questions to them.

Senator MCCLELLAN. Well, my only purpose was this: The witness said before that he knew there was no opposition, and I merely wanted to call his attention to the fact that there was, from the Bureau of Reclamation. I felt that, if he did not know about it, he should know,' so he might give it thought.

Mr. McGOLDRICK. I referred only to the situation as it existed at home.

Senator MCCLELLAN. You mean from a local standpoint there is no opposition.

Mr. McGOLDRICK. That is right.

Senator MCCLELLAN. Any questions!

Senator DowNEY. No questions.

Senator MCCLELLAN. Thank you very much.

Mr. SCUDDER. The next witness is District Attorney James Busch, of Mendocino County.

STATEMENT OF JAMES BUSCH, DISTRICT ATTORNEY, MENDOCINO COUNTY, CALIF.

Senator MCCLELLAN. You may proceed. Please give your name to the reporter and whom you represent.

Mr. BUSCH. My name is James Busch. I am the district attorney of Mendocino County. I am appearing at the request of the Board of Supervisors of Mendocino County.

As you will note from the map, the Russian River originates in the county of Mendocino and flows through the Coyote Valley, which is approximately 3 miles in width and 14 miles in length.

The population is around 16,000 in the valley, and there has been a 25 percent increase since the war.

The Masonite Corp. of America, which has plants in Michigan and Texas, has just recently moved in and built a $5,000,000 plant, and that plant produces masonite, which is a product developed from wood, water, and some kind of solidifier. A great deal of water must necessarily be used in the processing; and, of course, there will be some 600 men working in the plant, and for that reason there will be a greater demand for a domestic supply of water than existed in the past.

During the past several years the farmers along the river have had to spend many thousands of dollars to prevent floods, and they have. lost much of their soil because of flood conditions.

Several months ago the Board of Supervisors of Mendocino County requested the State legislature to enact a bill similar to the one which Mr. McGoldrick has just explained to you, and which is numbered Senate bill No. 1649. I would like to have that bill filed for your record, so that it may be referred to if necessary.

Senator MCCLELLAN. It may be filed.
(The document referred to is as follows:)

SENATE BILL No. 1649

AN ACT Creating the Mendocino County Flood Control and Water Conservation District for the controlling, conservation, diversion, storage and disposition of storm, flood, and other surface waters, prescribing the boundaries, organization, operation, management. financing, and powers and duties of the district

The people of the State of California do enact as follows:

SECTION 1. A flood-control and water-conservation district is hereby created, to be called the Mendocino County Flood Control and Water Conservation District, and the boundaries and territory of said district are as follows:

All that territory of the County of Mendocino lying within the exterior bounaries thereof.

SEC. 2. As used in this act:

"District" means the Mendocino County Flood Control and Water Conservation District.

"Board" means the board of directors of the district.

SEC. 3. The objects and purposes of this act are to provide, to the extent that the board may deem expedient or economical, for the control and disposition of the storm and flood waters of said district and to that end the district is hereby created to be a body corporate and politic and as such shall have power:

(a) To have perpetual succession.

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