(A) To provide a fund for the immediate payment of the cost of any public improvement made on the installment payment plan, the City Council may by ordinance provide for and sell bonds in anticipation of the collection of such installments of the assessments against property owners who elected the installment payment plan, pledging the assessments and the liens on the property for the payment of the principal and interest of the bonds, and apply the proceeds exclusively to the payment of the cost of the particular improvement in anticipation of the collection of the assessments for which the bonds are issued. The bonds shall be dated 30 days after the original due date for the assessment and shall be made payable to bearer.
(B) The bonds for each separate assessment shall be numbered consecutively throughout. Where the assessment will be payable in the manner provided in § 39.06(A) and (C), the bonds shall be divided into ten series. Where the assessment will be payable in the manner provided in § 39.06(B) and (D), the bonds shall be divided into nine series. The series in each case shall be as nearly equal as practicable.
(C) The bonds shall be of the denomination of $100 or its multiple. Any odd amount over $100 or its multiple may be included in the last bond to mature. No bond shall be issued for less than $100. The bonds shall have the name of the assessment project for which they are issued printed, engraved, or written thereon, and shall state the character of the improvement.
(D) The bonds, with interest, shall be payable at the depository selected by the purchaser of the bonds, or if no such selection is made, at the depository designated by the city. Where the bonds are divided into ten series, the first series shall be payable 30 days after the first installment of the assessment, and the remaining series shall be payable one each year thereafter for nine years. Where the bonds are divided into nine series, the first series shall be payable 30 days after the second installment of the assessment becomes due, and the remaining series shall be payable one each year for eight years. The bonds in every case shall bear interest at the rate at which the bonds are sold by the city pursuant to competitive bidding.
(E) The city may, prior to sale, fix a maximum interest rate for the bonds. If the first series of bonds is payable more than one year after the date which the bonds bear, an initial interest payment shall be payable on a date six months prior to the due date of the first series, covering the interest accrued on all series to that date. If the first series of bonds is payable less than one year after the date which the bonds bear, the initial interest payment covering accrued interest on all series shall be payable on the due date of the first series. After the initial interest payment, interest on all unpaid bonds shall be payable semiannually at the end of each six months. All bonds shall have suitable coupons attached thereto evidencing the initial and semiannual interest.
(F) The bonds and coupons shall be signed by the Mayor and countersigned by the City Clerk but the coupons may bear facsimile signatures. The City Clerk shall attest the signatures to the bonds under the city seal. It shall not be necessary in the bonds to recite the steps taken in ordering the improvement or in assessing the assessment, but it shall be sufficient to make a general reference to those proceedings and to this chapter. The bonds shall be negotiable and shall be free from all defenses by any property owner.
(G) In lieu of the bearer form of coupon bonds described above, the purchaser of the bonds may elect to have them issued as fully registered bonds without coupons or as a single fully registered bond without coupons. In the event of such election, the times and manner of payment of principal and interest and the redemption provisions of the fully registered bond or bonds shall correspond to those provided herein for the coupon bonds.
(H) The bonds shall be exempt from all taxation. They shall not be sold for less than par and accrued interest.
(I) Any premium realized from the sale of the bonds shall go into the fund for the payment of the bonds and interest.
(J) Several public improvements of the same class may be combined for the purpose of issuing bonds.
(Ord. O-18-83, passed 5-24-83)