Grant of Authority to Borrow:
Section 12.1. Subject to the applicable provisions of law and this Charter, the Commission may by ordinance or 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:
(a) General obligations which pledge the full faith, credit and resources of the city for the payment of such obligations;
(b) Notes issued in anticipation of the collection of the taxes, but the proceeds of such notes may be spent only in accordance with appropriations as provided by Section 10.5.
(c) In case of fire, flood or other calamity, emergency loans due in not more than five years for the relief of inhabitants of the city and for the preservation of municipal property;
(d) 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 both an obligation of the special assessment district or districts and a general obligation of the city.
(e) Mortgage bonds for the acquiring, owning, purchasing, constructing, improving or operating of any public utility which the city is authorized by this Charter to acquire or operate; provided such bonds shall not impose any liability upon such 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, which franchise shall in no case 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.
(f) Bonds issued at a rate of interest not to exceed six percent per annum to refund money advanced or paid on special assessments imposed for water main extensions.
(g) Bonds for the refunding of the funded indebtedness of the city.
(h) 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.
Authorization of Electors Required:
(b) The restrictions of Section 12.2 (a) shall not apply to general obligation bonds issued to pay for the city’s portion of public improvements the remainder of which are to be financed by special assessments, tax anticipation notes issued under Section 12.1 (b), emergency bonds issued under Section 12.1 (c), special assessment bonds issued under Section 12.1 (d), refunding bonds issued under Section 12.1 (g) or to bonds the issuance of which cannot, by statute, be so restricted by this Charter.
(c) Only those persons who have properly assessed for taxes in the city and their husbands and wives shall be entitled to vote on the approval of any issue of bonds which constitute a general obligation of the city, but no person may so vote unless he is a registered elector.
Applicable of Other Statutory Restrictions:
Section 12.3. The issuance of any bonds not requiring the approval of the electors shall be subject to applicable requirements of statute with regard to public notice in advance of the authorization of such issues, filing of petitions for a referendum on such issues, holding of such referendum and other applicable procedural requirements.
Limits of Borrowing Powers:
Section 12.4. The net bonded indebtedness incurred for all public purposes shall not at any time exceed that percentage of the assessed value as allowed by statute of all the real and personal property in the City provided that in computing such net bonded indebtedness there shall be excluded money borrowed under the following sections of this Charter: 12.1 (b) (tax anticipation notes), 12.1 (c) (emergency loans), 12.1 (d) special assessment bonds even though they are also a general obligation of the city), 12.1 (e) (mortgage bonds), 12.1 (f) (special assessment refunding bonds), 12.1 (h) (revenue bonds), and other bonds which do not constitute a general obligation of the city.
The amount of emergency loans which the Commission may make under the provisions of Section 12.1 (c) of this Charter may not exceed that percentage as allowed by statute of the assessed value of all the real and personal property in the City.
The total amount of special assessment bonds pledging the full faith and credit of the City shall at no time exceed that percentage as allowed by statute of the assessed value of all the real and personal property in the City nor shall such bonds be issued in any consecutive period of twelve months in excess of that amount as allowed by statute of the assessed value unless authorized by a majority vote of the electors voting thereon at any general or special election.
Preparation and Record of Bonds:
Section 12.5. Each bond or other evidence of indebtedness shall contain on its face a statement specifying the purpose for which the same is issued and it shall be unlawful for any officer of the city to use the proceeds thereof for any other purpose, and any officer who shall violate this provision shall be deemed guilty of misconduct in office. All bonds and other evidence of indebtedness issued by the City shall be signed by the Mayor and countersigned by the Clerk, under the seal of the City. Interest coupons may be executed with the facsimile signatures of the Mayor and Clerk. A complete and detailed record of all bonds and other evidences of indebtedness issued by the City shall be kept by the Clerk. Upon the payment of any bond or other evidence of indebtedness, the same shall be marked “Cancelled.”
Unissued Bonds:
Section 12.6. No unissued bonds of the city shall be issued or sold to secure funds for any purpose other than that for which they were specifically authorized, and if any such bonds are not sold within ten years after authorization, such authorization shall, as to such bonds, be null and void, and such bonds shall be cancelled.
Deferred Payment Contracts:
Editor’s note:
This section was by amended by city election on August 8, 2000.