(A) Improvement bonds. The Council may, by resolution adopted prior to the sale of obligations, pledge the full faith, credit and taxing power of the municipality for the payment of the principal and interest. The obligations shall be called improvement bonds, and the Council shall pay the principal and interest out of any fund of the municipality when the amount credited to the specified fund is insufficient for the purpose and shall each year levy a sufficient amount to take care of accumulated or anticipated deficiencies, which levy shall not be subject to any statutory or Charter tax limitation.
(B) Improvement warrants. Obligations for the payment of which the full faith and credit of the municipality is not pledged shall be called improvement warrants and shall contain a promise to pay solely out of the proper special fund. It shall be the duty of the city’s Finance Director to pay maturing principal and interest on warrants out of funds on hand in the proper special fund and not otherwise.
(C) Temporary improvement bonds.
(1) In anticipation of the issuance of improvement bonds, the Council may, by resolution, issue and sell temporary improvement bonds maturing within not more than three years from their date of issue to pay any part or all of the cost of one or more improvements.
(2) To the extent that the principal of and interest on the temporary improvement bonds cannot be paid when due from receipts of special assessments, taxes or other funds appropriated for the purpose, they shall be paid from the proceeds of improvement bonds or additional temporary improvement bonds which the Council shall offer for sale in advance of their maturity, but the indebtedness funded by an issue of temporary improvement bonds shall not be extended by the issue of additional temporary improvement bonds for more than six years from the date of the first issue.
(3) The holders of any temporary improvement bonds shall have and may enforce, by mandamus or other appropriate proceedings, all rights respecting the levy and collection of sufficient special assessments and taxes to pay the cost of the improvements financed by them which are granted by law to holders of improvement bonds, except the right to require the levies to be collected prior to the maturity of the temporary improvement bonds.
(4) If any temporary improvement bonds are not paid in full at maturity, the holders may require the issuance in exchange for them, at par, of new temporary improvement bonds maturing within one year from their date of issue (but not subject to any other maturity limitation) and beating interest at the maximum rate permitted by law.
(Prior Code, § 202.19)