Subject to the applicable provisions of statute and constitution, the Commission may by ordinance or resolution borrow money and issue bonds and other evidence of indebtedness therefor, for any purpose within the scope of powers vested in the city. Such bonds or other evidences of indebtedness shall include, but not be limited to, the following types:
(a) General obligation bonds which pledge the full faith, credit and resources of the City for the payment of such obligations, including bonds for the city's portion of public improvements;
(b) Notes issued in anticipation of the collection of taxes, but the proceeds of such notes may be spent only in accordance with appropriations as provided by Section 8.6.
(c) In case of fire, flood or other calamity requiring an emergency fund for the relief of the inhabitants of the city, or for the repairing or rebuilding of any of its municipal buildings, works, bridges or streets, emergency obligations therefor due in not more than three years;
(d) Bonds issued in anticipation of special assessment district, or may be both an obligation of such special assessment district or districts, and the general obligation of the city;
(e) Mortgage bonds for the acquiring, owning, purchasing, constructing or operating of any public utility as provided in Article 8, Section 23, of the Constitution; provided such bonds shall not impose any liability upon the city but shall be secured only upon the property and revenues of such public utility, including a franchise, stating the terms upon which, in case of foreclosure, the purchaser may operate the same, which franchise shall in no case extend for a longer period than twenty years from the date of the sale of such utility and franchise on foreclosure. Such mortgage bonds shall be sold to yield not to exceed six per cent per annum. A sinking fund shall be created in the event of the issuance of such bonds, by setting aside such percentage of the gross or net earnings of the public utility as may be deemed sufficient for such payment.
(f) Bonds for the refunding of the funded indebtedness of the city;
(g) Revenue bonds as authorized by Public Act 94 of 1933 which are secured only by the revenues from a public improvement and do not constitute a general obligation of the city;
The net bonded indebtedness incurred for all public purposes shall not at any time exceed ten per cent of the assessed value of all the real and personal property in the city subject to taxation as shown by the last preceding assessment roll of the city provided that in computing such net bonded indebtedness there shall be excluded money borrowed under the following sections: 10.1 (b) (tax anticipation notes), 10.1 (d) (special assessment bonds even though they are also a general obligation of the city), 10.1 (e) (mortgage bonds), 10.1 (g) (revenue bonds), and any other obligations excluded by statute or constitution from such limitation. The resources of the sinking fund pledged for the retirement of any outstanding bonds shall also be deducted from the amount of the bonded indebtedness.
The amount of emergency loans which the Commission make under the provision of Section 10.1 (c) may not exceed one-fourth of one percent of the assessed value of all the real and personal property in the city (or such larger percentage as cities may by statute be permitted to provide in their charter) notwithstanding such loan may increase the indebtedness of the city beyond the limitation fixed in the preceding paragraph.
The total amount of such special assessment bonds issued under Section 10.1 (e) which are a general obligation of the city shall at no time by reason of future issues, other than issues of refunding bonds, exceed the statutory limitations thereon, nor shall such bonds be issued in any calendar year in excess of the amount so permitted to be issued by statute unless authorized by a vote of the electors in the manner provided by statute.
Unless approved by majority of the electors voting thereon at any general or special election, the Commission shall not have the power to authorize any issue of bonds except special assessment bonds, bonds for the city portion of local improvements, not to exceed forty percent of the cost of such improvement, refunding bonds, bonds for relief from fire, flood or calamity, for payment of judgments, revenue bonds and other bonds excluded by statute from the requirement for such vote. Only those electors having the Constitutional qualifications for voting on the approval of bond issues shall be entitled to vote on such question.
Every bond issued by the city shall contain on its face a statement specifying the object for which the same is issued. It shall be unlawful for any officer of the city to sign or issue any such bond unless such statement is set forth on the face of the same, or to use such bonds or the proceeds from the sale thereof for any object other than that mentioned on the face of such bond. Any officer who shall violate any of the provisions of this section shall be deemed guilty of misconduct in office.
Bonds and all other evidences of indebtedness issued by the city shall be signed by the Mayor and Clerk under the seal of the city. The coupons evidencing the interest upon said bonds may be executed with the facsimile signatures of the Mayor and the Clerk. A complete and detailed record of all bonds shall be kept by the Clerk.
Upon the payment of any bond or other evidence of indebtedness, the same shall be canceled.
The Commission may enter into installment contracts for the purchase of property or capital equipment. Each of such contracts shall not extend over a greater period than 15 years nor shall the total amount of principal payment under all such contracts exceed the sum permitted by law. All such deferred payments shall be included in the budget for the year in which the installment is payable.
(Amended 3-13-95)