CHAPTER 9
LOCAL IMPROVEMENT GUARANTEE FUND

SECTION:

1-9-1: Fund Created, Purpose

1-9-2: Annual Tax Levy

1-9-3: Payment On Bonds

1-9-4: Rights Of Bond Holders; Surplus Funds

1-9-5: Disposition Of Monies

1-9-6: Replenish Fund

1-9-7: Excess Money In Fund

1-9-8: Procedure Upon Final Payment Of Bonds

1-9-9: Provisions Considered Contract

1-9-1: FUND CREATED, PURPOSE:

There is hereby created in the city a special fund known and designated as "Local Improvement Guarantee Fund" of the city. Said fund is created for the purpose of guaranteeing to the extent of said fund the payment of bonds or warrants, or both, and interest thereon, hereafter issued against any local improvement district in the city for the payment of improvements therein. (Ord. 494, 3-27-1970)

1-9-2: ANNUAL TAX LEVY:

In order to provide money for the local improvement guarantee fund and for the use and purposes of said fund, the mayor and council shall levy an annual tax of one mill per year, beginning with the tax due and collectible in the year 1970, on all of the taxable property in the city; provided, however that the city may reduce the amount of said levy if the city appropriates from other proper sources, as may be determined by the city, a sum approximately equal in amount to the sum which it is estimated will be not collected but would have been collected except for said reduction of the levy; and provided, further, that the total sum so levied and/or appropriated in any year shall not be more than is sufficient to pay the outstanding warrants on said fund and to establish therein a balance, which combined levy and appropriations in any one year shall not exceed five percentum (5%) of the outstanding obligations thereby guaranteed; and provided further, that the city shall not levy any tax as herein provided when the amount of monies in the local improvement guarantee fund equals ten percentum (10%) of the total outstanding obligations to be guaranteed. The tax levies herein authorized and directed shall be additional to and, if need be, in excess of any and all statutory and charter limitations. (Ord. 494, 3-27-1970)

1-9-3: PAYMENT ON BONDS:

When any bond, warrant or coupon drawn against any local improvement fund is presented to the city for payment and there is not sufficient amount in said local improvement fund against which to draw to pay the same, unless otherwise requested by the holder, payment therefor shall be made by warrant drawn against the local improvement guarantee fund. Such warrants, when presented to the city treasurer for payment, if not paid, shall be registered and shall draw interest at a rate not to exceed six percentum (6%) per annum as may be fixed by the city council. Neither the holder nor the owner of any bond or warrant hereafter issued in any local improvement district shall have any claim therefor except for the payment from the special assessment made for the improvement for which said bond or warrant was issued and except against the local improvement guarantee fund herein provided. The city shall not be liable to any holder or owner of said bond or warrant for any loss to the guarantee fund occurring in the lawful operation thereof by the city. (Ord. 494, 3-27-1970)