Palm Desert Municipal Code Ch. 17.02 Determination to Issue Bonds

The city council may determine that serial bonds, term bonds, or both, shall be issued as provided in this title to be secured by contractual assessments or to reimburse the city for advances made to finance or refinance improvements.

In order to enhance the marketability of the bonds, the city council may also arrange with one or more banks or other financial institutions to provide credit enhancement facilities, including but not limited to letters of credit, lines of credit, standby purchase agreements and insurance policies, as an additional source of payment of the bonds and the resulting costs thereof may be treated as incidental expenses.

(Ord. 1175 §1, 2008)

If the city council determines that bonds shall be issued as provided in this title, it shall, in the resolution of intention, do all of the following:

A. Declare that bonds shall be issued pursuant to this title to represent the expenses of the improvements or to reimburse the city for advances made to finance or refinance improvements.

B. Specify whether the bonds shall bear interest at a variable or fixed rate and the rate or maximum rate of interest which the bonds shall bear.

C. Declare whether the city will obligate itself to advance available funds from the city treasury to cure any deficiency which may occur in the funds and accounts established for the payment of the bonds.

(Ord. 1175 §1, 2008)

A. The city council may determine that bonds issued pursuant to this title shall not be subject to refunding until a specified date in the trust indenture.

B. This determination shall not apply to, or in any manner limit, advancement of the maturity of any bond or bonds pursuant to the procedures of Chapter 17.07 of this title.

C. This determination shall not apply to, or in any manner limit, the redemption and payment of any bonds pursuant to subsequent assessment proceedings which provide for the payment in full of all amounts necessary to eliminate any contractual assessment previously imposed.

(Ord. 1175 §1, 2008)

The city council may issue bonds for the purpose of refunding any bonds issued under this title then outstanding pursuant to Article 11 of Chapter 3 of Part 1of Division 2 of Title 5 of the California Government Code (commencing with Section 53580).

(Ord. 1175 §1, 2008)