Subject to the applicable provisions of statute and Constitution,
the Council may, by ordinance or resolution, borrow money and issue
bonds and other evidence of indebtedness therefor for any purposes
within the scope of powers vested in the City. Such bonds or other
evidences of indebtedness shall include, but not be limited to, the
following types:
A.
General obligation bonds 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, but the
proceeds of such notes may be spent only in accordance with appropriations
provided in § C-8.5;
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 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
an obligation of the special assessment district or districts or may
be both an obligation of 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 to operate, providing such bonds shall
not impose any liability 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 20 years from the
date of the sale of such utility and franchise on foreclosure. Such
mortgage bond shall be sold to yield an interest rate per annum not
to exceed the maximum interest rate established by the law of the
State of Michigan. 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 earning of the public utility as may be deemed sufficient
for the payment of 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 the maximum interest
rate established by the law of the State of Michigan to refund 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.
A.
The net bonded indebtedness incurred for all public purposes shall
not at any time exceed 10% of the assessed value 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 chapter: § C-10.1B (tax anticipation
notes), § C-10.1C (emergency loans), § C-10.1D
(special assessment bonds even though they are also a general obligation
of the City), § C-10.1E (mortgage bonds), § C-10.1F
(special assessment refunding bonds) and § C-10.1H (revenue
bonds), and other bonds which do not constitute a general obligation
of the City.
B.
The amount of emergency loans which the Council may make under the
provisions of § 10.1C of this Charter may not exceed 3/8
of 1% of the assessed value of all the real and personal property
in the City.
C.
The total amount of special assessment bonds pledging the full faith
and credit of the City shall, at no time, exceed 10% 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 12 months in excess
of 10% of such assessed value unless authorized by a 3/5 vote of the
electors voting thereon at any general or special election.
A.
Except as provided in § 10.3B, no bonds pledging the full
faith and credit of the City shall be issued without the approval
of 3/5 of the electors voting thereon at any general or special election.
B.
The 3/5 vote restriction of § C-10.3A shall not apply to
general obligation bonds issued to pay for the City's portion
of public improvements, the remainder of which is to be financed by
special assessments, tax anticipation notes issued under § C-10.1B,
emergency bonds issued under § C-10.1C, special assessment
bonds issued under § C-10.1D, refunding bonds issued under
§ C-10.1G, or to bonds the issuance of which cannot, by
statute, be so restricted by this Charter. These bond issues shall
require a majority vote.
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.
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. Any officer who shall
violate this provision shall be deemed guilty of misconduct in office.
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 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 Treasurer. Upon the payment of any bond or other evidence of
indebtedness, the same shall be marked "Cancelled."
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 three years
after authorization, such authorization shall, as to such bonds, be
null and void, and such bonds shall be cancelled.
A.
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 10 years nor shall the total amount of
principal payable under all such contracts exceed the sum equal to
1/10 of 1% of the total assessed valuation of the City in any one
fiscal year.
B.
All such deferred payments shall be included in the budget for the
year in which the installment is payable.
