(a) All general obligation bonds floated by the City, as approved and authorized by Council shall require the following financing provisions for the funding of the debt service (principal and interest) payments:
(1) In the first year in which debt service payments are required for the bond issue, no more than seventy-five percent (75%) of the total principal and interest payments due in that fiscal year, shall be paid by or from capitalized interest on the principal.
(2) In the second year in which debt service payments are required for the bond issue, no more than fifty percent (50%) of the total principal and interest payments due in that fiscal year shall be paid by or from capitalized interest on the principal.
(3) In the third year in which debt service payments are required for the bond issue, no more than twenty-five percent (25%) of the total principal and interest payments due in that fiscal year shall be paid by or from capitalized interest on the principal.
(4) In the fourth year in which debt service payments are required for the bond issue, and for all subsequent years, the full portion of the principal and interest payments shall be paid from revenue derived from City ad valorem taxation.
(b) Tax anticipation notes, revenue or grant anticipation notes or other like forms of debt derived for the sole purpose of anticipating income sources, are exempted from this provision.
(c) Any excess capitalized interest earnings shall be:
(1) Applied as revenue for a Capital Improvements Fund, as a method of financing other capital projects outlined in the City Capital Improvement Program, that meet the provisions of the bond indenture, as approved, authorized and appropriated by Council, or;
(2) Escrowed for the purpose of recalling bonds, if approved by bond counsel and the City Solicitor and if permitted by the bond indenture,
(Ord. 3-1983 §1. Passed 2-1-83.)