Merced Municipal Code Ch. 13.50 Ad Valorem Land Bonds

There is vested in the council the power to issue serial ad valorem land bonds upon any district created under this title.

(Prior code § 14A.202).

No assessment or diagram shall be required. A preliminary first report may be made for the purpose of providing information as to the apportionment of estimated assessments.

(Prior code § 14A.203).

If the proceedings are had pursuant to Chapter 13.32, then upon completion of the work, the person appointed by the council to be in charge of the work shall prepare and file with the council a declaration that the work has been completed according to the contract therefor, together with an itemized statement of the cost of the work and of the expenses incidental to said proceedings, estimated to the conclusion of the proceedings.

(Prior code § 14A.204).

The amount of any contribution shall be stated therein as well as the balance for which bonds are to be issued.

(Prior code § 14A.205).

When the bonds have been issued, they shall be delivered to the contractor upon his paying to the city the moneys due it for incidental expenses as stated in the declaration.

(Prior code § 14A.206).

The council may provide in the resolution of intention that the contractor shall be paid in cash from advances to be made to the project or from the proceeds of the sale of the bonds, in which event the bonds shall be issued as provided for the issuance of acquisition bonds in Section 13.50.070.

(Prior code § 14A.207).

If the proceedings are had pursuant to Chapter 13.34, then upon the entry of all interlocutory judgments in any eminent domain proceedings brought pursuant thereto, proceedings shall be had substantially as provided in Section 13.50.030.

(Prior code § 14A.208).

If proceedings are had pursuant to Chapter 13.36 and 13.38, then in the resolution ordering the acquisitions or improvements, the council shall determine the estimated cost of the acquisitions and improvements and of the expenses incidental thereto, and the total estimated amount of the bonds to be issued.

(Prior code § 14A.209).

If proceedings are had for the taking of immediate possession of the property to be acquired, and funds are not then available therefor, the person in charge of the proposed acquisitions shall prepare and file with the city an estimate of the amount of money necessary to be deposited in court for immediate possession, and other funds necessary for incidental costs, and proceedings shall be had for the issuance and sale of bonds therefor as provided for the issuance of acquisition bonds in Section 13.50.070.

(Prior code § 14A.210).

The council may either provide for the retirement of possession bonds out of the proceeds of the bonds of the project, or issue only an amount of additional bonds as is necessary to provide for the additional costs of the project after having credited the proceeds of the possession bonds upon the final costs of the project and expenses incidental thereto.

(Prior code § 14A.211).

Excepting in proceedings had pursuant to Chapters 13.36 and 13.38, the clerk shall publish notice of a time and place of hearing on the declaration filed in relation to the issuance of bonds.

(Prior code § 14A.212).

The notice of hearing filed in relation to the issuance of bonds shall:

A. Refer to the resolution of intention by number and name for a description of the work to be done or acquisitions or improvements to be had and for the boundaries of the assessment district;

B. Give notice to all persons interested that it is proposed to hear the report and issue bonds pursuant to this chapter.

(Prior code § 14A.213(a), (b)).

Any person feeling aggrieved by any act or determination done or made in the proceedings or claiming that any previous acts or proceeding's were irregular, defective, erroneous or faulty, or claiming that the work or improvement has not been performed according to the contract in a good and substantial manner, or claiming that any portion of the work or improvement for any reason was omitted or illegally included in the contract or having any objections or reasons why bonds should not be issued in the amount set forth in the declaration and statement on file, may appear before the council at the time and place so fixed by it and be heard.

(Prior code § 14A.213(c)).

The contractor or his assigns, and any other person or persons interested in the matter, may appear and be heard upon any of the matters referred to in the notice.

(Prior code § 14A.214).

In the final determination of the council upon the hearing, or in the resolution ordering the acquisitions or improvements when the proceedings are had pursuant to Chapter 13.36, and 13.38, the council shall order the issuance of bonds. The resolution shall state the total principal amount of the bonds and the amounts to mature in each year during their term. The bonds may be made to mature on July 2nd over a period of not to exceed forty years from their date.

(Prior code § 14A.215).

If the proceeds of the bonds for any reason are less than the total final costs of the acquisitions and improvements and expenses incidental thereto, additional bonds may be issued by filing with the clerk a declaration or statement of the amount necessary therefor and by giving notice and holding a hearing and determining the amount of bonds to be issued therefor as provided herein for the issuance of bonds upon declaration, notice and hearing. The bonds shall be deemed a division of the bonds of the main issue.

(Prior code § 14A.216).

Semiannual interest coupons shall be attached to the bonds and be payable on the second days of January and July of each year, excepting that the first coupons shall be for interest from their date to the second day of January next succeeding four months after the date of the bonds.

(Prior code § 14A.217).

Each bond will continue to bear interest after maturity at the rate stated therein; provided, that it is presented at maturity or date of redemption, fixed for call prior to maturity and payment thereof is refused upon the sole ground that there are not sufficient moneys in the redemption fund with which to pay same.

(Prior code § 14A.218).

A fund to be named, "Bond Plan D Series No._______, Bond Fund," shall be created and maintained for each issue of bonds. Moneys collected for the payment of the bonds shall be deposited in the fund and be used solely to pay the principal and interest on the bonds and premiums on and cost of calling bonds before their maturity. Any balance after the bonds have been paid shall be transferred to the general fund.

(Prior code § 14A.219).

The bonds may be made callable in inverse numerical order, in which event they shall so state on their face. A premium may be provided to be paid to the holder of the bonds in the event of their call, in an amount or amounts as is prescribed in the resolution providing for the issuance of the bonds.

(Prior code § 14A.220).

For each district in which bonds have been issued pursuant to this chapter, the council shall annually, until all of the bonds and interest thereon shall have been paid in full, at the time of levying the taxes for general city purposes, levy an ad valorem assessment upon all taxable lands within the assessment district in an amount clearly sufficient, together with any moneys which are or may be in the redemption fund, and after making adequate allowance for estimated delinquencies, to pay all of the principal of and interest on the bonds which shall become payable before the proceeds of another levy is available therefor.

(Prior code § 14A.221).

The annual special assessment levies shall be collected upon the tax roll on which general city taxes are collected; shall be in addition to all other taxes levied for general city purposes; and shall be levied, computed, entered, collected and enforced in the same manner, by the same persons, at the same time, and with the same penalties and interest, as are other taxes for city purposes. All laws applicable to the levy, collection and enforcement of taxes for city purposes are made applicable to the special assessment levies, and properties on which the levy is delinquent shall be subject to redemption within one year from the date of sale by operation of law in the same manner as real property is redeemed for delinquent general city taxes and if not redeemed shall in like manner pass to the purchaser.

(Prior code § 14A.222).

If the levy on any land is omitted in any year, it shall be assessed for the omitted amount in a year or years after the omission is discovered.

(Prior code § 14A.223).

The council may annually, at or prior to the time the levy is made, or at any other time as it determines, transfer to a bond fund amounts as it determines, or it may pledge revenues not prohibited by law for the security and payment of the principal and interest of the bonds, premiums on and costs of calling bonds and for costs of administration, maintenance, operation, improvement, extension, repair and replacement of the improvements.

(Prior code § 14A.224).

If, in the judgment of the council, varying benefits will be derived by the different parcels of land lying within the assessment district, the district may be divided into zones according to benefits.

(Prior code § 14A.225).

The district may be divided into as many zones, up to the total number of parcels of land in the district, as may be deemed proper, and each zone shall be composed of and include all of the lands within the district which will be benefited in like measure.

(Prior code § 14A.226).

The council shall also determine the percentage of the sum to be raised each year by the levy and collection of the ad valorem assessments in the district for the payments of the principal and interest of the bonds, or other method of apportionment, which will be raised from the lands in each zone.

(Prior code § 14A.227).

When the district is divided into zones, the resolution of intention shall so state, giving the percentages or other method of apportionment to be used to determine the amounts to be raised from the lands in each zone.

(Prior code § 14A.228).

Each zone shall be designated by a different letter or number and shall be plainly shown on the map or plat of the assessment district filed in the office of the city clerk and referred to in the resolution of intention, either by separate boundaries, coloring or other convenient and graphic method, so that all persons interested may with accuracy ascertain within which zone any parcel of land is located.

(Prior code § 14A.229).

It shall be sufficient, in all cases where the assessment district is to be divided into zones according to benefits, if the resolution of intention states the fact and refers to the plat or map for the boundaries and all details concerning the zones.

(Prior code § 14A.230).

All bonds issued and all ad valorem assessments levied and collected pursuant to the provisions of this chapter shall by their issuance be conclusive evidence of the regularity, validity and legal sufficiency of all proceedings, acts and determinations in anywise pertaining thereto, and after the bonds are issued, no levies for paying the principal or interest on the bonds shall be held invalid or illegal, or be set aside by reason of any error, informality, irregularity, omission or defect in the proceeding's not amounting to a want of due process of law.

(Prior code § 14A.231).

When any court of competent jurisdiction determines that any contract purported to have been made, or any proceedings, steps or actions purported to have been taken, or any bond or bonds issued or any levy or assessment made, tinder this chapter, is or are void, invalid or unenforceable for any reason, or for any cause enjoins the issuance of any bonds proposed to be issued under this chapter, the court shall also determine that a reassessment proceedings is had as provided in this chapter.

(Prior code § 14A.232).

The council may also order reassessment proceedings when it determines: the existence of voidness, invalidity or unenforceability, the validity thereof is questionable, the questioning of the validity thereof is threatened, or the public interest will be served thereby.

(Prior code § 14A.233).

If the council orders a reassessment proceedings, the council shall adopt a resolution so declaring which shall state the amount of any work performed, improvements made, acquisitions had and the expenses incidental thereto, and the estimated cost of any to be had.

(Prior code § 14A.234).

The proposal to reassess shall be noticed and heard and a reassessment ordered as provided in Section 13.50.070. To the extent applicable, the provisions of Chapter 13.24 shall apply.

(Prior code § 14A.235).

If the invalidity is not in the bonds themselves, the council may so declare in the reassessment proceedings. In that event, the reassessment proceedings shall be and constitute the proceedings providing the legal authority for the issuance of the outstanding bonds, and the redemption fund created in any reassessment proceedings shall constitute a trust fund for their payment.

(Prior code § 14A.236).

If the invalidity is in the bonds themselves, or if the council so determines in the reassessment proceedings, new bonds shall be issued and exchanged for the outstanding bonds. The new bonds shall mature in the amounts and at the times provided for the outstanding bonds, as nearly as may be. If the council determines, it may assign different bonds and allot maturities as it deems equitable.

(Prior code § 14A.237).

If any part of the outstanding bonds have matured or will mature before the time for providing for the servicing of the new bonds, or if interest has accrued or will so accrue, the council may provide for the issuance of additional new bonds in the amount thereof and for their maturity. If the holders of the outstanding bonds or coupons or any other holders of outstanding bonds or coupons have refused to accept exchange of bonds therefor, the council shall sell additional bonds in the amount thereof and deposit the proceeds in the redemption fund. The outstanding bonds shall forthwith become due and payable without premium, and shall no longer bear interest.

(Prior code § 14A.238).

The supplemental security and remedy provisions of Part 13 (commencing at Section 8800) of Division 10 of the Streets and Highways Code shall apply. This section is adopted pursuant to Section 43240 of the Government Code.

(Prior code § 14A.239).

The council may prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds whose holders are required to consent thereto, and the manner in which such consent may be given.

(Prior code § 14A.240).

The council may define events of default, establish the consequences thereof and provide bondholders' remedies and the nature thereof.

(Prior code § 14A.241).