Fresno Municipal Code Art. 2 Pension Obligation Law—issuance of Bonds to Finance the Program

The city is authorized and empowered:

(a) To issue bonds for the purpose of refunding the debentures or otherwise assisting the Program authorized by this division and for the purpose of refunding bonds.

(b) To establish the terms and conditions for the Program undertaken pursuant to this division.

(c) To employ or contract for such legal, consultant, underwriting, economic feasibility, or other services in connection with the program, as may be necessary in the judgment of the Council for the successful financing of the program and the issuance and sale of bonds.

(d) In addition to all other powers specifically granted in this division, to do all things necessary or convenient to carry out the purposes of this division.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The city may issue its bonds for the purpose of financing the program as authorized by this division. Every issue of bonds shall be payable from any available funds of the city.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

(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, fixed or variable, 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 for such prices as the Council shall determine.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The proceeds of the bonds may be applied to the repayment of the debentures, together with all costs of issuing the bonds and of the debentures, including any bond reserve funds which the city determines to be reasonably required, and the costs of any insurance or other credit enhancement authorized by Section 8-4-206.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

In the discretion of the Council, any bonds issued under the provisions of this division may be secured by a trust agreement or indenture 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 trust agreement or indenture 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 trust agreement or indenture 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 trust agreement or indenture may contain such other provisions as the Council may deem reasonable and proper for the security of the bond owners.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

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, security, and any other terms the city deems necessary or appropriate.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

In connection with, or incidental to, the issuance or carrying of the bonds, the city may 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 rate 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 counterparties, where applicable, including any rating by a nationally recognized rating agency or any other criteria as may be appropriate.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

Neither the members of the Council 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.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

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.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The principal and any premium of, and interest on, the bonds shall, be payable from any available funds of the city. The issuance of bonds shall not directly, indirectly or contingently obligate the Council to levy or pledge any form of taxation.

(Added Ord. 93-77, § 1, eff. 1-14-93; Ord. 94-1, eff. 2-4-94; Am. Ord. 2007-97, § 2, eff. 1-19-08).