Sec. 7.01. - Power of council to issue bonds and notes.

The city council may, in the name and for the use of the city, incur indebtedness by issuing its negotiable bonds or notes for the purposes, in the manner and to the extent provided in this chapter.

Sec. 7.02. - Purposes for which bonds may be issued.

Bonds may be issued for the purpose of financing the whole or any part of the cost of any capital improvement project and to refund outstanding bonds. A capital improvement is hereby defined to include any public improvement or utility which the city is authorized to undertake, including the acquisition of any property, real or personal, incident thereto, the construction or reconstruction, in whole or in part, of any building, plant, structure, or facility necessary or useful in carrying out the powers of the city, and in the equipment or re-equipment of the same.

Sec. 7.03. - Limitation on indebtedness.

Except as otherwise provided in §§ 7.07 and 7.08 of this chapter, the city shall not issue bonds or other interest bearing obligations to an amount which, including existing indebtedness, shall, at anytime, exceed ten (10) percent of the assessed valuation of real estate in the city subject to taxation, as shown by the last preceding assessment for taxes; provided, however, that in determining the limitations to the power to incur indebtedness, there shall not be included the classes of indebtedness especially described in Article VII, Section 10 of the Constitution of Virginia.

(Acts 1982, Ch. 76, § 1)

Sec. 7.04. - Notes in anticipation of bonds.

Whenever an issue of bonds has been authorized as provided in this Charter, the mayor, when authorized by resolution, shall have power to issue notes of the city in anticipation of such bonds, for the purpose of defraying the whole or any part of the cost of such project. Such notes shall be authenticated by the signature of the mayor and the city treasurer and shall mature not later than five years after the date of issue.

(Acts 1982, Ch. 76, § 1)

Sec. 7.05. - Form of bonds.

All bonds issued pursuant to this Charter shall be issued in accordance with the general laws of Virginia relating to the issuance of bonds by municipalities.

Sec. 7.06. - Payment of bonds and notes generally.

The faith and credit of the city and all taxes and revenues paid thereto are hereby pledged for the payment of principal of and interest on all bonds and notes of the city issued pursuant to this Charter, except bonds for revenue producing utilities issued pursuant to this Charter and which bonds are by their terms payable solely from the revenues derived from such utilities, whether or not such pledge be stated in the bonds or notes or in the bond ordinances authorizing their issue.

Sec. 7.07. - Bond issues for revenue producing utilities.

The city is hereby empowered to issue from time to time, in the manner prescribed by Article VII, Section 10 of the Constitution of Virginia, bonds of the city, for the purpose of acquiring, establishing, constructing, improving or enlarging any sewage disposal system, waterworks, gas plant, electric plant, garbage and trash disposal system, incinerator, toll bridge, motor vehicle parking area or building, airport or other public utility, from which the city may derive a revenue, for the purpose of reimbursing the general fund or any other fund of the city for monies paid from such fund or funds for such purposes, and/or for the purpose of funding or refunding any existing indebtedness incurred for such purposes. Such bonds shall not be included in determining the power of the city to incur indebtedness within the limitation prescribed by Article VII, Section 10 of the Constitution of Virginia or § 7.03 hereof, but from and after a period to be determined by the council, not exceeding five years from the date of the election authorizing such bonds, whenever and for so long as any such revenue producing utility fails to produce sufficient revenue to pay for cost of operation and administration, including the interest and amortization of such bonds, and the cost of insurance against loss by injury to persons or property, all such bonds outstanding shall be included in determining the limitation of the power of the city to incur indebtedness under any provision of this Charter or under the provisions of Article VII, Section 10 of the Constitution of Virginia. The city may, however, issue bonds from time to time for any or all of such purposes, including reimbursement of funds and the funding or refunding of existing indebtedness, in the manner prescribed by Article VII, Section 10 of the Constitution of Virginia, the principal and interest of which bonds shall be payable exclusively from the revenue of such revenue producing utilities and for which payment of principal and interest the full faith and credit of the city shall not be deemed to be pledged, notwithstanding any other provision of this Charter, and such bonds shall never be included in determining the limitation of the power of the city to incur indebtedness under the provisions of this Charter or under the provisions of Article VII, Section 10 of the Constitution of Virginia.

Sec. 7.08. - Contents of bond ordinance for revenue producing utilities.

The ordinance authorizing the issuance of any bonds for any revenue producing utility shall state either:

A.

That the bonds shall be payable from the ad valorem taxes without limitation of rate or amount; the full faith and credit of the city is deemed to be pledged for the payment of principal and interest thereof; and the bonds are to be issued pursuant to the provisions of Article VII, Section 10 of the Constitution of Virginia and are not to be included in determining the power of the city to incur indebtedness within the limitation prescribed by Article VII, Section 10 of the Constitution of Virginia; provided, however, that from and after a period specified in such ordinance, not exceeding five years from the date of the election authorizing the bonds, whenever and for so long as such revenue producing utility fails to produce sufficient revenue to pay for the cost of operation and administration, including the interest on bonds issued therefor, the cost of insurance against loss by injury to persons or property, and an annual amount to be placed into a sinking fund sufficient to pay the bonds at or before maturity, all outstanding bonds issued on account of such revenue producing utility shall be included in determining such limitation; or

B.

That the principal and interest of such bonds shall be payable exclusively from the revenue of such revenue producing utility, the faith and credit of the city shall not be deemed to be pledged for the payment of such principal and interest, and the bonds are to be issued pursuant to the provisions of Article VII, Section 10 of the Constitution of Virginia and are never to be included in determining the power of the city to incur indebtedness within the limitations prescribed by Article VII, Section 10 of the Constitution of Virginia.

Sec. 7.09. - Borrowing to pay judgment.

In the absence of unappropriated available revenues to pay a final judgment for money which may be recovered against the city, the council may by resolution authorize the issuance of a note or notes, the proceeds of which shall be used to pay such judgment, which note or notes may be renewed from time to time, but such note or all such notes of any fiscal year and any renewals thereof shall be paid not later than the last day of the fiscal year next succeeding the budget year in which such judgment was recovered.

Sec. 7.10. - Borrowing in anticipation of property taxes.

In any budget year, in anticipation of the collection of the property tax for such year, whether levied or to be levied in such year, the council may by resolution authorize the borrowing of money by the issuance of negotiable notes of the city, each of which shall be designated "tax anticipation note for the year 19____________" (stating the budget year). Such notes may be issued for periods not exceeding one year and may be renewed from time to time for periods not exceeding one year, but together with renewals shall mature and be paid not later than the end of the third fiscal year after the budget year in which the original notes have been issued.

Sec. 7.11. - Borrowing in anticipation of other revenues.

In any budget year, in anticipation of the collection or receipt of other revenues of that year, the council may by resolution authorize the borrowing of money by the issuance of negotiable notes of the city, each of which shall be designated "special revenue notes for the year 19____________" (stating the budget year). Such notes may be renewed from time to time, but all such notes, together with the renewals, shall mature and be paid not later than the end of the fiscal year after the budget year in which the original notes shall have been issued.

Sec. 7.12. - Notes redeemable prior to maturity.

No notes shall be made payable on demand, but any note may be made subject to redemption prior to maturity on such notice and at such time as may be stated in the note.

Sec. 7.13. - Sales of notes.

All notes issued pursuant to the provisions of this chapter, when authorized by the council, may be sold at not less than part and accrued interest at private sale without previous advertisement by the director of finance, with the approval of the city manager.

Sec. 7.14. - Payment of notes.

The power and obligation of the city to pay any and all notes hereafter issued by it pursuant to the provisions of this chapter shall be unlimited and the city shall levy ad valorem taxes on all the taxable property within the city for the payment of such notes and interest thereon without limitation of rate or amount.

Sec. 7.15. - Supplemental method of borrowing and payment.

In addition to any other indebtedness of the city and certificate of debt, or bonds, which the council of the city has issued, the council of the city, by the affirmative vote of not less than four members thereof, may, from time to time, borrow an additional sum or sums of money not exceeding in the aggregate, however, under this authority, the sum of five hundred thousand dollars (provided, however, such sum shall not be in excess of the amount fixed by law which it may borrow), and may, in the name and for the use of the city, cause to be issued certificates and notes evidencing the indebtedness, which certificates and notes, however, shall be payable in not more than five years from their date, and upon payment or redemption of such certificates of debt or notes, the council may again, by the affirmative vote of not less than four of the members thereof, from time to time, borrow a like sum and issue like certificates or notes evidencing the indebtedness thereof, which shall likewise be payable not more than five years from their date.

Sec. 7.16. - Inclusion of certain notes, etc., in determining Constitutional debt limit.

All notes or other evidences of debt issued pursuant to §§ 7.09 through 7.15, inclusive, of this chapter shall, unless payable within one year of their issue, or the date of the original obligation if the issue is a renewal, and not past due, be included in determining the limitation on indebtedness in accordance with Article VII, Section 10 of the Constitution.