Subject to the applicable provisions of law and this Charter, theCouncil may, by ordinance or by resolution, authorize the borrowing of money for any purpose within the scope of powers vested in the City and permitted by law, and may authorize the issuance of bonds or other evidences of indebtedness therefor. Such bonds or other evidences of indebtedness shall include but not be limited to the following types:
(1) General obligations which pledge the full faith, credit, and resources of the City for the payment of such obligations;
(2) Notes issued in anticipation of the collection of taxes;
(3) In case of fire, flood, or other calamity, emergency loans, due in not more than five years, for the relief of the inhabitants of the City and for the preservation of municipal property;
(4) Mortgage bonds, for the acquiring, owning, purchasing, constructing, improving, or operating of any public utility which the City has been or may be authorized by the electors of the City to acquire or operate;
(5) Bonds issued at a rate of interest not to exceed six per cent per annum, to refund money advanced or paid on special assessments imposed for water main extensions;
(6) Bonds for the refunding of the funded indebtedness of the City;
(7) 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;
(8) Court order bonds, as required by a court of competent jurisdiction;
(9) Special assessment bonds, issued in anticipation of the payment of special assessments made for the purpose of defraying the cost of any public improvement, or in anticipation of the payment of any combination of such special assessments. Such special assessment bonds may be an obligation of the special assessment district or districts to which they apply or may be both an obligation of the special assessment district or districts and a general obligation of the City.
The mortgage bonds authorized by this Section 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. No such franchise shall extend for a longer period than twenty years from the date of the sale of such utility and franchise on foreclosure. 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 the payment of the mortgage bonds at maturity, unless serial bonds are issued of such a nature that no sinking fund is required.
State Law References: Permissable Charter provisions, MCL 117.4a; Revenue Bond Act of 1933, MCL 141.101 et seq.