All expenditures for any improvement district
constructed within the City under the method provided by Article V
of the Charter and by this chapter, and which expenditures are for
any item of expense shown upon the engineer's final estimate of cost,
may be made by warrants to be called "special improvement warrants."
Special improvement warrants shall be issued
and recorded in the same manner as general or special fund warrants
of the City are issued, and shall draw interest at 6% per annum from
the date of issue until paid. Such interest shall accrue to the special
improvement guarantee fund.
No special improvement warrant shall be issued
until the City Council has accepted a proposal for the purchase of
the improvement bonds, and has received a certified check as guaranty
for such purchase.
Special improvement warrants shall state plainly
on the face thereof that they are not an obligation of the City, but
that they are issued against the special fund of the improvement district
concerned, and against the funds to be derived from the sale of the
improvement bonds thereof.
Special improvement warrants may be issued from
time to time during the progress of the work, for either labor or
material, or both, and when issued to a contractor who has contracted
for completed work in place, shall be issued according to monthly
construction estimates compiled by the City Engineer; provided that
in no event shall special improvement warrants be issued in excess
of 85% of such engineer's monthly construction estimates.
A.
Special improvement warrants shall be liquidated from
money derived from the sale of the improvement bonds of the district
against which they are issued, or from the special fund of such district
derived from the cash payments of property owners within the thirty-day
period allowed for paying cash; provided that, in case the improvement
is being constructed by City forces, no such warrants in excess of
85% of such cash paid by property owners shall be issued before the
improvement has been completed, and actual cost of the completed work
has been determined.
B.
Whenever special improvement warrants have been cashed
by the special improvement guarantee fund of the City, they shall
be liquidated by the City from cash derived from the sale of the improvement
bonds of the district.
When special improvement warrants have been
issued to a contractor who has contracted to accept payment for his
work in the improvement bonds of the district, no such improvement
bonds shall be delivered to such contractor until he presents all
such warrants issued to him during the prosecution of the work and
the principal amount of such warrants shall be accepted as cash by
the City in payment for the improvement bonds, and the interest thereon
shall be paid to the contractor and d to the improvement as an item
of incidental expense.
