4.50.050 - Authorization of bonds.
4.50.060 - Proceedings authorizing issuance—Public or private sales.
4.50.070 - Application of proceeds of bonds.
4.50.090 - Insurance or credit enhancement.
4.50.100 - Bonds and investments—Contracts to place on interest rate, cash flow, or other basis.
4.50.110 - Personal liability.
4.50.130 - Repayment of bonds.
4.50.140 - Rate stabilization fund.
The city is authorized and empowered:
A.
To issue bonds for the purpose of financing the cost of capital improvements of the sewer system and for the purpose of refunding bonds.
B.
To establish the terms and conditions for the financings undertaken pursuant to this chapter.
C.
To employ or contract for such legal, consultant, underwriting, economic feasibility, or other services, as may be necessary in the judgment of the Council for the issuance and sale of bonds.
D.
In addition to all other powers specifically granted in this chapter, to do all things necessary or convenient to carry out the purposes of this chapter.
(Ord. 12624 § 1 (part), 2004)
4.50.050 - Authorization of bonds.
The city may issue bonds pursuant to a resolution of the Council for the purpose of financing the cost of capital improvements of the sewer system as authorized by this chapter. Every issue of bonds shall be payable from revenues as described in the issuing instrument.
(Ord. 12624 § 1 (part), 2004)
4.50.060 - Proceedings authorizing issuance—Public or private sales.
A.
The proceedings of the city authorizing the issuance of the bonds may provide all of the following for the bonds:
1.
The form of the bonds, which may be issued as serial bonds, term bonds, or installment bonds, or any combination thereof.
2.
The date or dates to be borne by the bonds.
3.
The time or times of maturity of the bonds.
4.
The interest, which may be taxable or tax-exempt, fixed or variable and which may be paid on a current interest or capital appreciation basis, to be borne by the bonds.
5.
The time or times that the bonds shall be payable.
6.
The denominations, form, and the registration privileges of the bonds.
7.
The manner of execution of the bonds.
8.
The place or places the bonds are payable.
9.
The terms of redemption of the bonds.
10.
Any other terms and conditions deemed necessary by the city.
B.
The bonds may be sold at either a public or private sale and at a price at, above or below the par value thereof.
(Ord. 12624 § 1 (part), 2004)
4.50.070 - Application of proceeds of bonds.
The proceeds of the bonds shall be applied to the cost of capital improvements, including all costs of issuing the bonds, including any bond reserve funds, and the costs of any insurance or other credit enhancement authorized by Section 4.50.090.
(Ord. 12624 § 1 (part), 2004)
In the discretion of the Council, any bonds issued under the provisions of this chapter may be secured by an indenture or trust agreement by and between the city and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the State. Such indenture or trust agreement may contain such provisions for protecting and enforcing the rights and remedies of the bond owners as may be reasonable and proper and not in violation of law. Any such indenture or trust agreement may set forth the rights and remedies of the bond owners and of the trustee or trustees, and may restrict the individual right of action by bond owners. In addition to the foregoing, any such indenture or trust agreement may contain such other provisions as the Council may deem reasonable and proper for the security of the bond owners.
(Ord. 12624 § 1 (part), 2004)
4.50.090 - Insurance or credit enhancement.
The city may obtain insurance or other credit enhancement of the bonds and may enter into any credit, reimbursement agreement or other agreement with any person or entity. The agreement shall contain the terms of the credit, reimbursement, interest rate, security, and any other terms the city deems necessary or appropriate.
(Ord. 12624 § 1 (part), 2004)
4.50.100 - Bonds and investments—Contracts to place on interest rate, cash flow, or other basis.
In connection with, or incidental to, the issuance or carrying of the bonds, the city may enter into investment agreements, forward purchase agreements and other investments relating to the investment of amounts held pursuant to an issuing instrument, and the city may also enter into any contracts which the city determines to be necessary or appropriate to place the obligation, as represented by the bonds, in whole or in part, on the interest rate, cash-flow, or other basis desired by the city, including, without limitation, contracts commonly known as interest swap agreements, forward payment conversion agreements, futures, or contracts providing for payments based on levels of, or changes in, interest rates, stock or other indices, or contracts to exchange cash flows or a series of payments, or contracts, including, without limitation, interest rate floors or caps, options, puts or calls to hedge payment, rate, spread, or similar exposure. These contracts and arrangements shall be entered into with the parties, selected by the means, and contain the payment, security, default, remedy, and other terms and conditions, determined by the city, after giving due consideration for the creditworthiness of the counter parties, where applicable, including any rating by a nationally recognized rating agency or any other criteria as may be appropriate.
(Ord. 12624 § 1 (part), 2004)
4.50.110 - Personal liability.
Neither the members of the Council, officers, employees or agents of the city, nor any person executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
(Ord. 12624 § 1 (part), 2004)
The Council may provide for the issuance of bonds any portion of which is to be used for the purpose of refunding outstanding bonds, including the payment of the principal thereof and interest and redemption premiums, if any, thereon. The proceeds of bonds issued to refund any outstanding bonds may, in the discretion of the Council, be applied to the retirement of such outstanding bonds at maturity, or the redemption (on any redemption date) or purchase of such outstanding bonds prior to maturity, upon such terms and subject to such conditions as the Council shall deem advisable.
(Ord. 12624 § 1 (part), 2004)
4.50.130 - Repayment of bonds.
The principal and any premium of, and interest on, the bonds shall be payable from revenues and other funds pledged therefor under the issuing instrument, s described in the issuing instrument. The issuance of bonds shall not directly, indirectly or contingently obligate the Council to levy or pledge any form of taxation.
(Ord. 12624 § 1 (part), 2004)
4.50.140 - Rate stabilization fund.
The city hereby establishes the rate stabilization fund to be held by the city in connection with bonds.
(Ord. 12624 § 1 (part), 2004)