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A. Local improvement bonds shall be in a form and dated as may be prescribed by the City Council. The bonds shall be issued in the name of the City and shall bear the name of the local improvement district. The bonds shall be payable to the bearer at a designated time. The term of the bonds shall be a sufficient period of years to cover the time of construction and the bond payment schedules, however, the term of the bond shall be subject to early calls. The bonds shall be in convenient denominations as determined by the Chief Financial Officer. The bonds shall be issued by the Chief Financial Officer based upon the cost estimates of the City Engineer as approved by the Council. The Chief Financial Officer shall maintain a record of the bonds and cost estimate. The bonds shall be manually signed by the Chief Financial Officer and shall bear the engraved, printed, stamped or otherwise reproduced facsimile of the Mayor's signature, which shall be attested by the City Clerk. Each bond shall have the seal of the City affixed. Each bond issued under this chapter shall recite in substance that the bond and the interest are payable solely from the special assessments and/or other monies pledged to its payment.
B. Except as provided, the bond's principal and interest shall only be payable out of monies collected from the assessments for the improvements in the district. The assessments on a local improvement district shall be applied to the payment of the bonds issued for that local improvement district until the payment of the bonds is completed. The payment of the bonds shall be additionally secured by a pledge of funds from the special surplus and deficiency fund. If for any reason assessments are not paid in time to make the bond payments when due and there is not sufficient money in the special surplus and deficiency fund, then the City may pay the bonds when due and reimburse itself by collecting the unpaid assessments. (Ord. 2771; 1968 Code §12-63; Ord. 01-42; Ord. 11-19)
Bonds issued pursuant to this chapter shall not be a debt of the City, and the City shall not be liable on the bonds, nor shall the City thereby pledge its full faith and credit for payment of the bonds, nor shall the bonds be payable out of any funds other than the special assessments and other monies pledged to the payment of the bonds. No property of the City shall be liable to be forfeited or taken in payment of the bonds. (Ord. 2771; 1968 Code §12-64; Ord. 01-42)
Bonds issued by the City shall not be invalid for any irregularity or defect in the proceedings for their issuance, sale or delivery and shall be incontestable in the hands of bona fide purchasers or holders for value. (Ord. 2771; 1968 Code §12-75; Ord. 01-42)
Local improvement bonds shall have an issue date. The bonds shall also have a date of maturity which does not exceed the estimated life of the bonded improvements, but in any event the date of maturity shall not exceed twenty (20) years from the issue date of the bond. The bonds shall bear interest payable annually, or at a lesser interval or intervals, as may be prescribed by the bond ordinance. The bonds shall be payable in United States dollars at those places designated by the bond ordinance. At the option of the City Council the bonds may be in one or more series, and may be made subject to prior redemptions in advance of maturity with or without the payment of a premium or premiums. No premium shall exceed five percent (5%) of the principal amount of each bond redeemed.
The bonds may be issued with privileges for registration for payment as to principal or interest, or both, and generally shall be issued in a manner and form, with recitals, terms, covenants, conditions and other details, as may be determined by the Council in the ordinance or ordinances authorizing the bonds, except as otherwise provided. (Ord. 2771; 1968 Code §12-66; Ord. 82-34; Ord. 01-42)
Except for payment provisions specifically provided, local improvement bonds and any interest coupons attached to the bonds shall be fully negotiable within the meaning of and for all the purposes of the Colorado Uniform Commercial Code-Investment Securities. (Ord. 2771; 1968 Code §12-66; Ord. 01-42)
Except for bonds which are registrable for payment of interest, interest coupons shall be payable to bearer. The interest coupons shall be attached to the bonds and shall bear the original or facsimile signatures of the officers signing the bonds. The bonds and coupons bearing the signatures of the officers in office at the time of signing shall be valid and binding on the City, notwithstanding that before delivery and payment, any or all of the persons whose signatures appear shall have ceased to fill their respective offices. (Ord. 2771; 1968 Code §12-67; Ord. 01-42)
All monies received from the issuance of any authorized bonds shall be used solely for the purpose or purposes for which issued, including, without limitation, if authorized, the payment of preliminary expenses incurred in connection with the purpose, the payment of interest on the bonds for a period not to exceed three (3) years from the date of the bonds, and all other incidental expenses. However, any unexpended balance of bond proceeds remaining after the completion of the acquisition or improvements for which the bonds were issued shall be paid immediately into the fund created for the payment of the bond principal and shall be used in that manner. The validity of the bonds shall not be dependent on or affected by the validity or regularity of any proceedings relating to the acquisition or improvements for which the bonds are issued. The purchaser or purchasers of the bonds shall in no manner be responsible for the application of the proceeds of the bonds by the City or any of the City's officers, agents and employees. (Ord. 2771; 1968 Code §12-68; Ord. 01-42)
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