The city, subject to the limitations of law, and subject to
the terms of this Charter, may incur indebtedness by issuing its bonds
to finance any capital project which it may lawfully construct or
acquire.
The city shall authorize the issuance of bonds by ordinance;
provided, however, that no such ordinance shall become effective unless
approved by a majority of the electors of the city voting thereon
at a regular or special election; provided further, that authorization
to issue such bonds shall be obtained from the general assembly of
the state if the law shall require such authorization. A bond ordinance
shall contain in substance at least the following provisions:
(1)
An appropriation of a sum of money for a capital project, sufficiently
described for reasonable identification;
(2)
An authorization of the incurring of indebtedness by the issuance
of bonds in a stated amount;
(3)
A statement of the estimated maximum cost of the capital project,
including any sums theretofore or thereby appropriated;
(4)
A statement of the amount of the down payment, if any, appropriated
in the budget of that year in anticipation of such bond issue;
(5)
A determination of the period of usefulness of the project.
A bond ordinance may combine two or more projects, in which
event, it shall, for each project, establish a separate appropriation
and state separately the data provided in Section 5-101 hereof, but
shall authorize a single issue of bonds to finance the aggregate of
the appropriations thereby made. Such ordinance shall further contain
the average weighed periods of usefulness of the several projects.
All bonds issued shall be paid in consecutive annual installments,
the smallest of which shall be not less than two-thirds the average
installment and the largest of which shall be not more than one and
one-half times the average installment, and the first installment
shall be payable within the fiscal year next following the fiscal
year in which said bonds shall be issued.
The last annual installment of each authorized bond issue shall
be paid not later than the date of the expiration of the period of
usefulness of the project for the financing of which such bonds are
issued, or the average weighted period of combined projects as determined
in the bond ordinance authorizing the issuance of bonds. All periods
of usefulness shall be computed from the date of final passage of
the bond ordinance.
Bonds shall mature not later than the expiration of the period
of usefulness of the capital project for which they are issued, as
determined by the engineering department, stated in the bond ordinance,
but the terms shall not exceed thirty years.
Whenever the issuance of bonds shall be authorized, notes in
anticipation of bonds may be issued, but all such notes shall mature
not later than twelve months after their issuance, and said notes
may be paid from the proceeds of the bonds in anticipation of which
they were issued.
All bonds issued and all notes in anticipation of bonds shall
be sold by the director of finance at the direction of the council
after written bids shall have been submitted to the council.
When twenty days shall have elapsed after the passage of a bond
ordinance and the declaration of the result of the referendum thereon,
the recitals and statements of fact therein shall be deemed to be
true for the purpose of determining the validity of the bonds; the
ordinance shall be conclusively presumed to have been duly and regularly
passed and to comply with the provisions of this Charter, and the
validity of such bond ordinance shall not thereafter be questioned
by either a party plaintiff or a party defendant except in a suit,
action or proceeding commenced prior to the expiration of such twenty
days.
All funds received by the city from the sale of bonds shall
be kept separate and apart from the general funds of the city, and
shall be used only for the purposes for which the bonds were authorized;
provided, however, that if there shall be any balance remaining after
completion of the projects for which the bonds were issued, or if
for any reason the projects cannot be completed and there shall be
funds remaining, the council shall authorize the use of such funds
towards the retirement of the bonds from which the funds were obtained,
or, if such retirement cannot be made within a reasonable time, then
the council may authorize the use of such funds towards the retirement
of any outstanding bonds of the city, or that such funds be turned
over to the board of sinking fund commissioners.[1]
[1]
Editor's Note: The Board of Sinking Fund Commissioners was
abolished 4-25-1969 by Ch. No. 2071. See Sec. 3-703 of this Charter.
The council may at any time authorize the issuance of the bonds
by ordinance for the purpose of refunding any bonds issued and outstanding
at the time of the adoption of this Charter; provided, however, that
no such ordinance shall become effective unless approved by a majority
of the electors of the city voting thereon at a regular or special
election; provided further, that authorization to issue such bonds
shall be contained from the general assembly of the state if the law
shall require such authorization. No such refunding bonds shall be
issued for a longer term than ten years, and shall be payable as provided
in Section 5-103 hereof.
The council shall have the power at any time after the adoption
of this Charter to authorize the issuance of bonds for the purpose
of raising sufficient funds to enable the city to meet its general
operating budget and to permit the city thereafter to operate upon
a current basis. This provision may be utilized but once, and thereafter
the provisions hereinafter contained authorizing the city to borrow
money in anticipation of taxes shall be and become void. No such ordinance
shall become effective, however, until approved by a majority of the
electors of the city voting thereon at a regular or special election;
provided further, however, that authorization to issue such bonds
shall have been obtained from the general assembly of the state if
the law shall require such authorization. No such bonds shall be issued
for a longer term than twenty years, and the bonds shall be payable
as provided in Section 5-103 hereof. The proceeds of such bond issue
shall be used to pay the general operating expenses of the city for
the then current year, together with any sums borrowed in anticipation
of taxes for the then current year. If such bonds shall be issued,
all revenue from taxes levied in said fiscal year shall be set aside
to be used for the general operating expenses of the city for the
next fiscal year.
The council may, insofar as permitted by law, authorize the
borrowing of money in anticipation of the collection of taxes, the
funds to be used for the general operating budget of the city provided,
however, that:
(1)
The aggregate indebtedness of the city on such borrowing shall
not exceed ninety per cent of the anticipated sums to be collected
from taxes levied by the city during the fiscal year. In addition
to sums required to be used and actually used for the payment of the
bonded indebtedness of the city and the interest thereon, the aggregate
indebtedness of the city on such borrowings at the end of the first,
second and third quarters of the fiscal year shall not exceed twenty-five
per cent, fifty per cent and seventy-five per cent, respectively,
of said anticipated tax collections.
(2)
For the purposes hereof it shall be assumed that the sums to
be collected from taxes levied by the city during the fiscal year
shall be no greater than the average percentage of such collections
during the three prior fiscal years.
(3)
All sums borrowed in anticipation of taxes shall be repaid before
the close of the fiscal year in which said sums shall be borrowed.
(4)
The finance director shall maintain an account to be entitled
"Working Capital Account" which said account shall have posted to
its credit surplus accruals of prior years. The funds in said account
shall be used exclusively for the same purposes for which the city
is authorized to borrow in anticipation of taxes, provided, however,
that all such monies shall be refunded to this account before the
close of the fiscal year.
[Added 7-20-1972 by Ch. No. 1360; amended 12-22-1972 by Ch. No. 1371 (Ref. of 2-20-1973)]
(5)
In the event it is proposed to use funds of the "Working Capital
Account" for any other purpose, the question of said use shall first
be presented to the voters on referendum for approval or rejection,
which said referendum shall be authorized by an ordinance of the city
council and shall specifically describe the use to be made of said
funds and the specific amount required for said purpose.
[Added 7-20-1972 by Ch. No. 1360; amended 12-22-1972 by Ch. No. 1371 (Ref. of 2-20-1973)]
All notes issued in anticipation of the collection of taxes
shall be sold by the director of finance at the direction of the council
after written bids shall have been submitted to the council.
