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Revenues shall be the sole source of funds pledged by the city for repayment of bonds issued hereunder. Bonds issued hereunder shall not be deemed to constitute a debt or liability of the city or a pledge of the faith and credit of the city but shall be payable solely from revenues. All bonds shall contain on the face thereof a statement to the following effect:
Neither the faith and credit nor the taxing power of the City of Chico is pledged to the payment of the principal of or interest on this bond.
The issuance of bonds shall not directly, indirectly or contingently obligate the city council to levy or pledge any form of taxation or to make any appropriation for their payment.
(Ord. 1423 (part))
The city may provide financing to any participating party for, or otherwise assist the acquisition of, duly approved projects pursuant to this ordinance. At the discretion of the city council the financial assistance provided hereunder may take any form deemed advisable for the successful financing of the project, including without limitation in the form of a loan, lease or installment sale.
(Ord. 1423 (part))
The city may enter into agreements with any participating party with respect to the financing of a project, which agreements may provide that the architectural and engineering design of the project shall be subject to such standards as may be established by the city and that the acquisition of the project shall be subject to such supervision as the city deems necessary. The terms and conditions of such agreements may be as mutually agreed upon, but shall not be inconsistent with the provisions of this ordinance. Any such agreement may provide the means or methods by which any mortgage taken by the city shall be discharged, and it shall contain a covenant by the participating party to complete the project whether or not bond proceeds are sufficient therefor, and such other terms and conditions as the city may require. The city is authorized to fix, revise, charge, and collect interest and principal and all other rates, fees, and charges with respect to the financing of a project. Such rates, fees, charges, and interest shall be fixed and adjusted so that the aggregate of such rates, fees, charges, and interest will provide funds sufficient with other revenues and moneys which it is anticipated will be available therefor, if any, to do all of the following:
A. Pay the principal of and interest on outstanding bonds issued to finance such project, as the same shall become due and payable;
B. Create and maintain reserves required or provided for in any resolution authorizing such bonds. A sufficient amount of the revenues derived from the project may be set aside at such regular intervals as may be provided by the resolution or trust agreement in a sinking or other similar fund, which shall be pledged to, and charged with, the payment of the principal of and interest on such bonds as the same shall become due and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time the pledge is made. The rates, fees, interest, and other charges, revenues, or moneys so pledged and thereafter received by the city shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the city, irrespective of whether such parties have notice thereof. Neither the resolution, the trust agreement nor any agreement by which a pledge is created need be filed or recorded except in the records of the city. The use and disposition of moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution or trust agreement authorizing the issuance of such bonds;
C. Pay administrative expenses to the extent not paid from bond proceeds.
(Ord. 1423 (part))
All moneys received pursuant to the provisions of this ordinance, whether proceeds from the sale of bonds or revenues, shall be deemed to be trust funds to be held and applied solely for the purposes of this ordnance. Any bank or trust company in which such moneys are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes specified in this ordinance, subject to the terms of the resolution or trust agreement authorizing the bonds.
(Ord. 1423 (part))
This ordinance, being necessary for the health, welfare and safety of the city and its residents, shall be liberally construed to effect its purposes. Furthermore, the city council hereby declares that this ordinance is an exercise of the power granted to the city by the City Charter and the Constitution of the state and is an exercise by the city of its powers as to municipal affairs and its police powers, and this ordinance shall be liberally construed to uphold its validity under the laws of the state.
(Ord. 1423 (part))
This ordinance shall be deemed to provide a complete, additional, and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of bonds under the provisions of this ordinance need not comply with the requirements of any other law applicable to the issuance of bonds.
(Ord. 1423 (part))
An action may be brought pursuant to Chapter 9 (commencing with Section 860 of Title 10 of Part 9 of the Code of Civil Procedure) to determine the validity of bonds and the legality and validity of all proceedings previously taken and (as provided in the bond resolution) proposed to be taken for the authorization, issuance, sale, and delivery of the bonds and for the payment of the principal thereof and interest thereon.
(Ord. 1423 (part))
This ordinance shall not be amended so as to effect adversely the rights of the holders of any outstanding bonds theretofore issued hereunder, or the rights of participating parties with respect to whom projects have theretofore been financed hereunder, without the written consent of such bondholders and participating parties; provided, however, that this ordinance may be amended at any time:
A. To make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision herein contained, as the city may deem necessary or desirable: or
B. If such amendment does not materially impair or adversely affect the interests of any such bondholder or participating party in the opinion of the city council; or
C. If such amendments apply solely to bonds not theretofore issued hereunder or participating parties with respect to whom projects have not theretofore been financed hereunder.
( Ord. 1423 ( part ))
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