(A) All obligations shall be issued in accordance with the provisions of the Charter and M.S. Ch. 475, as it may be amended from time to time; except that, an election shall be required for bonds if less than 20% of the cost of the improvement to the municipality is to be assessed against benefitted property.
(B) The maturities shall be such as, in the opinion of the Council, are warranted by the anticipated collections of assessments and ad valorem levies for the city’s share of the cost; except that, the Council may, in its discretion, issue and sell temporary improvement bonds at any time prior to completion of the work to be financed, maturing within not more than three years from their date of issue, in which event, the municipality shall be obligated to pay such bond and the interest thereon out of the proceeds of definitive improvement bonds which the Council shall issue and sell at or prior to the maturity of the temporary bonds, to the extent that the same cannot be paid out of the assessments and taxes theretofore collected or out of any other municipal funds which are properly available and appropriated by the Council for such purpose.
(C) The holders of the temporary bonds and the taxpayers of the city shall have and may enforce, by mandamus or other appropriate proceedings, all rights respecting the levy and collection of sufficient assessments and taxes to pay the cost of the improvements financed thereby which are granted by law to holders of other improvement bonds, except the right to require the levies to be collected prior to the maturity of the temporary bonds, and shall have the additional right to require the offering of the definitive improvement bonds at public sale or, if the bonds have not been sold and delivered prior to the maturity of the temporary bonds, to require the issuance in exchange therefor, on a par-for-par basis, of either new temporary bonds or definitive bonds, bearing interest at the maximum rate permitted by law.
(D) Any funds of the city may be invested in temporary improvement bonds in accordance with state statutes; except that, the temporary bonds may be purchased only out of funds which the Council determines will not be required for other purposes prior to their maturity, shall be resold prior to maturity only in the case of unforeseen emergency.
(E) When the purchase is made out of moneys held in a debt service fund for other bonds of the city, the holders of other bonds shall have the right to enforce the city’s obligation to sell definitive bonds at or before the maturity of the temporary bonds or to exchange the same in the same manner as holders of the temporary bonds. All obligations shall state upon their face the purpose of the issue and the fund from which they are payable.
(F) The amount of any obligations issued hereunder shall not be included in determining the net indebtedness of the city under the provisions of any law limiting the indebtedness.
(Prior Code, § 202.19) (Ord. 944, passed 06-25-2018)