As used in this article, the word "fund" shall mean the special improvement guarantee fund established by § 217-35.
In accordance with Article V of the Charter,
there is hereby established a fund to be known as the "Special Improvement
Guarantee Fund."
The fund shall be set up at the beginning of
any fiscal year by inclusion thereof in the annual budget for that
year of any moneys on hand derived from:
The fund shall be used to guarantee payment,
when due, of the improvement bonds of any improvement district of
the City constructed as provided in Article V of the Charter and in
this chapter, in the following manner:
A.
Whenever any improvement bonds of the City are issued
under a limited guarantee, the City Manager shall notify the City
Treasurer of the amount of such guarantee, and the City Treasurer
shall immediately set aside the amount of such guarantee, from the
special improvement guarantee fund, and allocate such amount to the
use of such issue of improvement bonds, and such amount shall thereafter
be used for no other purpose, except as specified herein.
B.
Whenever any bonds of any improvement district of
the City, which bonds have been issued under a limited guarantee,
and which bonds, in the ordinary procedure as set forth in this chapter,
would be payable on October 1 of any year, but to pay which there
are not funds in the special fund of the district for such issue,
due to nonpayment of assessments by the owner or owners of any property
in such district, the City Treasurer shall call and pay such bonds
from that portion of the special improvement guarantee fund allotted
to such issue and, if necessary, continue so to do until such allotment
is exhausted.
C.
In no case shall bonds of any issue of an amount in
excess of the guarantee so set aside for such issue be retired in
this manner, except that, where the guarantee fund has been used to
retire bonds, and has been later reimbursed through payment of delinquent
assessments, whether by foreclosure or otherwise, such guarantee fund
shall be considered to include such reimbursement.
Whenever the City Treasurer shall use any portion
of the fund to retire improvement bonds in lieu of assessments, he
shall notify the City Manager of the date on which such assessments
have been delinquent for a period of one year, and at the proper time
the City Manager shall start proceedings on behalf of the City for
the collection of such delinquent assessments by foreclosure and sale
of the property, as provided in this chapter. All money derived from
such proceedings shall be deposited in the fund.
A.
The City Treasurer shall invest any money in the special
improvement guarantee fund by the purchase of special improvement
warrants of the City, issued according to the provisions of this chapter,
when presented to him by the holder thereof for payment, provided
that no such investment shall be made in special improvement warrants
of any district until the City has accepted a proposal for the purchase
of such bonds and has received a certified check as guaranty for such
purchase, or until the City has contracted for the construction of
such improvement complete in place, as provided by this chapter.
B.
For the purpose prescribed in Subsection A, the City Treasurer may use that part of the special improvement guarantee fund allocated to any district, provided that it is evident that such special improvement warrants will be liquidated prior to October 1 of any year. Both the City Treasurer and the City Manager are d with the duty of so handling the special improvement guarantee fund as a revolving fund for this purpose that all guarantees will be in the fund and available for use as such on October 1 of any year.
