TAX AND RATE REQUIREMENTS

(a) If the district issues bonds payable wholly or partly from ad valorem taxes, the board shall impose an ad valorem tax sufficient to pay the bonds and the interest on the bonds as the bonds and interest become due. The board shall take into consideration reasonable delinquencies and collection costs in imposing the ad valorem tax. The board may adopt the tax rate for any year after considering the money reasonably to be received from the pledged revenue available for payment of principal and interest and to the extent and in the manner permitted by the resolution authorizing the issuance of the bonds. (b) If the district issues bonds payable wholly or partly from revenue, the board shall impose and, as necessary, revise the rates of compensation for water sold and services provided by the district. (c) For bonds payable wholly from revenue, the rates of compensation must be in an amount sufficient to: (1) pay the expenses of operating and maintaining the district's facilities; (2) pay the bonds as they mature and the interest as it accrues; and (3) maintain the reserve and other funds as provided by the resolution authorizing the issuance of the bonds. (d) For bonds payable partly from revenue, the rates of compensation must be in an amount sufficient to assure compliance with the resolution authorizing the issuance of the bonds.