Subject to the applicable provisions of statute 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 statute 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 including bonds for
the city's portion of public improvements;
(b) Notes issued in anticipation of the collection of taxes,
(c) In case of fire, flood or other calamity, emergency loans due in
not more than five years for the relief of the inhabitants of the
city and for the preservation of municipal property;
(d) Special assessment bonds issued in anticipation of 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
an obligation of the special assessment district or districts or may
be both an obligation of the special district or districts and a general
obligation of the city. If the cost of any improvement is to be paid
in part by special assessments and in part by the city-at-large, and
if said special assessments are to be divided into annual installments,
then the city's portion of the cost of said improvements may
likewise be paid in annual installments and in full faith and credit
bonds of the city may be issued in anticipation of the payment of
such installments. Bonds pertaining to more than one improvement may
be combined in one issue or series: provided, that no special assessment
district shall be obligated to answer for the default of another.
The bonds to be issued under the provisions of this section shall
not require the approving vote of the electors.
(e) Mortgage bonds for the purpose of acquiring, owning, purchasing,
constructing, improving or operating any public utility which the
City is authorized by this charter to acquire or operate, can be issued
beyond the general limits of bonded indebtedness prescribed by law;
provided however, that such mortgage bonds shall not impose any liability
on the 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 public
utility, which franchise shall in no case extend for a longer period
than 20 years from the date of the sale of such utility and franchise
on foreclosure. In the event of the issuance of such bond, there shall
be created, in such cases as may be required by law, a sinking fund
by setting aside such percentage of the gross or net earning 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 to refund the money advanced or paid on special assessments.
(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.
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 issuance, holding of
such referendum and other applicable procedural requirements.
The net bonded indebtedness incurred for all public purposes shall not at any time exceed the maximum percentage of the assessed value of all the real and personal property in the city permitted by statute, provided that in computing such net bonded indebtedness there shall be excluded money borrowed under the following sections: §
C-10.1(b), (tax anticipation notes), §
C-10.1(d), (special assessment bonds even though they are also a general obligation of the city), §
C-10.1(e), (mortgage bonds), §
C-10.1(f), (special assessment refunding bonds), §
C-10.1(h), (revenue bonds), and any other obligations excluded by statute or Constitution from such limitation. The resources of the sinking fund pledged for the retirement of any outstanding bonds shall also be deducted from the amount of the bonded indebtedness.
The amount of emergency loans which may be made under the provisions
of § C-10.1(c) may not exceed the maximum amount permitted
by statute, and such a loan may be made even if it causes the indebtedness
fixed in this charter.
The total amount of such special assessment bonds issued under §
C-10.1(d) which are a general obligation of the city shall at no time by reason of future issues other than issues of refunding bonds, exceed the maximum amount permitted by statute, nor shall such bonds be issued in any calendar year in excess of the maximum amount so permitted to be issued by statute unless authorized by a majority vote of the electors in the manner required by statute.
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,
except that whenever the proceeds of any bond issue or part thereof
shall remain unexpended and unencumbered for the purpose for which
said bond issue was made, the Commission may authorize the use of
said funds for the retirement of bonds of such issue. All bonds and
other evidences 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 signature
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 City Clerk. Upon the payment of any bond or other evidence
of indebtedness, the same shall be marked canceled.
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 such bonds are not sold within five years after
authorization, such authorization shall as to such bonds, be null
and void, and such bonds shall be canceled.
The city may enter into installment contracts for the purchase
of property or capital equipment. Each of such contracts shall not
extend over a period greater than five years nor shall the total amounts
of principal payable under all such contracts exceed a sum of 1/2
of 1% of the total assessed valuation of the city in any one fiscal
year.
All such deferred payments shall be included in the budget for
the year in which the installment is payable.