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ARTICLE 8. PLANNING AND FINANCIAL PROCEDURES

CHAPTER 5. BORROWING

Annotations By: Jacqueline Bejma

Sec. 8-501. General Power

The City can borrow money for any purpose, may issue bonds and pledge repayment of both

The City may borrow money for any purpose within the scope of its powers, may issue bonds or other evidence of indebtedness therefore and may, when permitted by law, pledge the full faith, credit, and resources of the city for the payment of those obligations.

Sec. 8-502. Limitations on Borrowing

Bond debt cannot exceed the limit permitted by law

The net bonded indebtedness incurred annually by the City shall not exceed the limit permitted by law. No obligations shall be sold to obtain funds for any purpose or purposes other than that for which those obligations were specifically authorized.

Sec. 8-503. Specific Kinds of Borrowing

The City has borrowing power:

1. Bonds to finance local public improvement
2. Emergency Bonds
3. Budget Bonds (for capital improvements)
4. Bonds to finance transit facilities
5. Bonds to finance public lighting facilities

Included within the City’s general power are the following specific kinds of borrowing:

1. Bonds to Finance Local Public Improvement
   
   The City may borrow money and issue bonds in anticipation of the payment of special assessments or any combination of special assessments levied under sections 8-601 and 8-602 of this Charter. Special assessment bonds may be an obligation of the special assessment district or districts or may be both an obligation of the special assessment district or districts and a general obligation of the City.
   
   The City may also borrow money and issue bonds under section 8-501 for its share of the cost of any local public improvement or, where the cost of that improvement is to be defrayed in part from the payment of special assessments and in part from other city revenues, for the entire cost of that improvement.
   
   All collections on each special assessment roll or combination of rolls to the extent that those collections are pledged for the payment of the principal and interest on any bonds issued in anticipation of the payment thereof, shall be set apart in a separate fund for the payment of the principal and interest and may be used for no other purpose.
2. Emergency Bonds
   
   In case of fire, flood, or other calamity, the city may, subject to law, authorize the issuance of emergency bonds which shall be general obligations of the City for the relief of residents of the City and for the preservation of city property.
3. Budget Bonds
   
   Any capital improvement items contained in the budget may be financed by the issuance of bonds as a part of the budget system. However, the amount of those bonds together with the city property taxes levied for the same year may not exceed the limit permitted by law.
4. Bonds to Finance Transit Facilities
   
   The City may borrow money for public transportation and rapid transit facilities and may incur obligations and issue bonds therefore to the maximum extent permitted by law.
   
5. Bonds to Finance Public Lighting Facilities
   
   The City may borrow money for public lighting facilities and may incur obligations and issue bonds therefore to the maximum extent permitted by law.

Sec. 8-504. Use of Borrowed Funds

Any bond must state its intended purpose

No bond can be used for anything other than its intended purpose

Each obligation shall contain on its face a statement of the purpose for which it is issued and no officer of the City may use the proceeds for any other purpose, except that, whenever all or any part of the proceeds of any issue remains unexpended and unencumbered for the purpose for which the issue was made, the City may use those unexpended and unencumbered funds in any manner permitted by law or for the retirement of the issue, or, if the issue shall have been fully retired or if any funds remain after retirement of the issue, then for the retirement of other obligations of the City.

Sec. 8-505. Execution of Obligation

All bonds or obligations must be signed by the mayor, the finance director and include the seal of the city

All obligations issued by the City shall be executed with the facsimile signature of the Mayor and signed by the Director of Finance and shall bear the seal of the city. Interest coupons shall be executed with the facsimile signatures of the Mayor and the Director of Finance.

Sec. 8-506. Tax Exempt

All bonds issued by the city are exempt from city taxation

All obligations issued by the City shall be exempt from all city taxation.