Budgets; tax levy; limitation.

A. Within the first quarter of each calendar year, the board of directors shall prepare an itemized budget of the funds needed for administration, construction, operation and maintenance of works of improvement and submit the budget to the board of supervisors for approval. After approval of the budget, the board of supervisors shall, by order or resolution, levy an assessment sufficient to meet the budget, not to exceed five dollars ($5.00), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon the assessment authorized by this section, on each one thousand dollars ($1,000) of net taxable value, as that term is defined in the Property Tax Code [Chapter 7, Articles 35 to 38 NMSA 1978], of all real property subject to taxation within the district, except that the limit on assessments does not apply to any levy necessary to provide a sinking fund for retirement of bonds authorized by Section 73-20-13 NMSA 1978. If a watershed district lies within more than one soil and water conservation district, the board of supervisors in each soil and water conservation district shall approve of the budget submitted by the watershed district before an assessment may be levied pursuant to this subsection. A copy of the budget and order or resolution shall be certified to the county assessor of the county or counties involved and to the department of finance and administration by July 15 of each year. B. Upon receipt of a resolution adopted and submitted by the board of directors, the board of supervisors shall levy an assessment not to exceed five dollars ($5.00) on each one thousand dollars ($1,000) of net taxable value, as that term is defined in the Property Tax Code, of property subject to taxation by the board of supervisors, in addition to the levy authorized by Subsection A of this section, to repay the loan if the board of supervisors approves of the levy and: (1) a referendum on the acceptance of the loan for specified purposes is held by the board of supervisors; (2) two-thirds of the landowners vote in favor of the proposal; and (3) the procedures of the Local Election Act [Chapter 1, Article 22 NMSA 1978] or the Special Election Act [Chapter 1, Article 24 NMSA 1978] as well as local government ballot question election provisions in the Election Code [Chapter 1 NMSA 1978] are followed as to notice, qualifications of voters and manner of holding a tax authorization election are followed in the referendum held pursuant to this subsection.