A. Operational financing. Heating service operations and maintenance, within or without the City boundary, may be financed by one or more, or any combination, of the following methods:
1. Such rates, fees, and charges as may be required by this Chapter;
2. Annual ad valorem taxation in an amount which shall not exceed the true cash value of all taxable property within the City;
3. General obligation bonds, upon authorization of the City's voters, in an amount which shall not exceed in the aggregate ten percent of the true cash value of all taxable property within the City; such general obligation bonds may be additionally secured, by resolution of the Board, by pledging all or any part of the net revenue of the City's heating service;
4. Refunding bonds, of the same character and tenor as those general obligation bonds replaced thereby, by resolution of the Board;
5. Revenue bonds pledging the gross revenues of the City's heating service, if approved by the Council;
6. Federal and state grants-in-aid, and private endowments; and
7. All other legal means.
B. Improvement financing. Heating service improvements, within or without the City boundary, and including but not limited to the purchase, lease, or acquisition of real estate or equipment, and the planning, design, construction, reconstruction, extension, enlargement, purchase, lease, or acquisition of geothermal facilities, may be financed by one or more, or any combination, of the following methods:
1. Such rates, fees, and charges as may be required by this Chapter;
2. Annual ad valorem taxation, as specified in Subsection A paragraph 2 hereof;
3. General obligation bonds, as specified in Subsection A paragraph 3 hereof;
4. Revenue bonds secured by all or any part of the heating service's gross revenues subject to approval of the Council; such revenue bonds shall not be subject to the percentage limitations applicable to general obligation bonds, but shall be payable solely from such part of the revenues of the heating service;
5. Refunding bonds, of the same character and tenor as those revenue bonds replaced thereby, by resolution of the Council;
6. Special assessments, pursuant to laws of the State of California, and City procedures for local improvement districts;
7. Federal and state grants-in-aid, and private endowments; and
8. All other legal means.
C. Special bond retirement financing. The City may, by Council resolution, annually tax all taxable property within the City, in an amount sufficient to pay the annual interest on general obligation bonds theretofore issued by the City and then outstanding, together with any portion of the principal of such bonds maturing within the year.
D. Refund of certain heating pipeline extension costs. If any person is required by the Board to advance to the Board the cost of extending a geothermal heating pipeline adjacent to property other than their own so that geothermal heating service is provided for such other property without further extension of the geothermal heating pipeline, the Board shall require the owner of the other property, prior to providing geothermal heating service to that property, to pay to the Department a pro rata portion of the cost of the extension, from which the Board may refund all or a portion of such funds so advanced. The right to require shall not continue for more than ten years after the date of installation of the extension of the geothermal heating pipeline. The amount to be refunded shall be determined by Board resolution.
(Ord. MC-298, 8-17-83)