Subject to the applicable provisions of statute and Constitution the Commission may borrow money and issue bonds and other evidences of indebtedness therefor, for any purpose within the scope of powers vested in the city. Such bonds or other evidence of indebtedness shall include, but not be limited to, the following types:
(a) General obligation bonds which pledge the full faith, credit the resources of the city for the payment of such obligations, including bond 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 8.5;
(c) In case of fire, flood or other calamity, emergency obligations due in not more than five years for the relief of the inhabitants of the city and for the preservation of municipal property;
(d) Bonds issued in anticipation of special assessments, which bonds may be the obligation of the special assessment district, or may be both an obligation of such district and a general obligation of the city; provided that bonds may be issued in anticipation of the special assessments levied in respect to two or more public improvements, but no special assessment district shall be compelled to pay the obligation of any other special assessment district.
(e) Mortgage bonds for the acquiring, owning, purchasing, constructing or operating of any public utility as provided in Article 8, Sections 23 and 24, of the State 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 issued for refunding money advanced or paid on special assessments imposed, for water main extensions, on the faith and credit of the city, to provide for such refunding from time to time as buildings shall be connected with such water main extensions, in an amount not to exceed one hundred thousand dollars and at a rate of interest not to exceed six per cent per annum;
(g) Bonds for the refunding of funded indebtedness of the city;
(h) Revenue bonds as authorized by statute which are secured only by the revenues from a public improvement and do not constitute a general obligation of the city.
Statutory reference:
Authority to borrow money, see M.C.L.A. § 117.4a