A. The monies of every conservancy district organized pursuant to this act shall be administered through the following funds:

1. A preliminary fund, by which is meant the funds borrowed in accordance with Section 632 of this title, which shall be used for the payment of expenses incurred for the purposes for which the funds may be borrowed;

2. An improvement fund, by which is meant the proceeds of levies made against the special assessments of benefits equalized and confirmed under the provisions of this act which have not been pledged for the retirement of bonds, notes, warrants or agreements or the payment of interest thereon and the proceeds of all bonds, notes or warrants issued, which shall be used for defraying expenditures incurred in the execution of the official plan and the relocation of utilities, acquisition or construction of properties, works, and improvements of the district including the cost of preparing the official plan and the appraisal, except as paid out of the preliminary funds, the entire cost of construction and superintendence, with all charges incidental thereto, and the cost of administration during the period of construction and may also be used for defraying preliminary expenses in accordance with Section 632 of this title;

3. A bond fund, by which is meant the proceeds of levies made against the special assessment of benefits equalized and confirmed under the provisions of this act which has been anticipated in the issuance of bonds, notes or warrants together with all other receipts pledged for the retirement of bonds, notes or warrants or the payment of interest thereon, which shall be used only for such purposes; and

4. A maintenance fund, which is a special assessment to be levied annually for the purpose of upkeep, administration and current expenses as hereinafter provided.

B. Any surplus monies in any fund of a conservancy district may be transferred to any other fund by the board, but no transfer shall be made from the bond fund prior to the final maturity of the bonds, notes or warrants payable therefrom, and no transfer shall thereafter be made which would reduce the balance in the fund below the amount required for the payment of all obligations outstanding against the fund.

C. No vouchers shall be drawn against the maintenance fund of a conservancy district until assessments have been levied as provided by this act. No bonds shall be issued against the bond fund until an assessment-levying resolution shall have been properly passed by the board of directors and duly entered upon its records, and not until the property owners shall have been given an opportunity for a period of not less than thirty (30) days to pay the assessments so levied against their respective properties.

Added by Laws 1923-24, c. 139, p. 183, § 42. Amended by Laws 1959, p. 377, § 6; Laws 1963, c. 271, § 10, emerg. eff. June 13, 1963; Laws 2010, c. 175, § 4, emerg. eff. April 26, 2010.