Chapter 14.28

GENERAL OBLIGATION BOND FINANCING PROCEDURE

The purpose and intent of this chapter is to establish a procedure for financing certain municipal improvements through the issuance of general obligation bonds.

• (Ord. 26153.)

Proceedings for the issuance of general obligation bonds for the purposes set forth herein may be conducted pursuant to this chapter whether or not provided in any state law.

(Ord. 26153.)

• A. This chapter is not, in any way, exclusive.

• B. The procedures provided in this chapter are alternative to any other procedure provided in this Code or under state law.

• (Ord. 26153.)

This chapter is to be liberally construed so as to allow the city most flexibility in the issuance of general obligation bonds.

(Ord. 26153.)

14.28.020 Proceedings.

• 14.28.030 Nonexclusivity.

14.28.040 Construction.

14.28.050 Authorized expenditures.

• 14.28.060 Procedure for calling election.

14.28.070 Form of proposition.

14.28.080 The election.

14.28.090 Form and issuance of bonds.

14.28.100 Debt limit.

14.28.110 Use of proceeds.

14.28.120 Annual tax levy.

• 14.28.130 Compliance with other laws.

• A. The city may issue general obligation bonds for the acquisition of land for, or the design, planning or construction of, any municipal improvement, including but not limited to the following:

  1. Any street, highway, road, alley, lane, boulevard, pedestrian mall, parkway, bike path, trail or other right of way dedicated to or used for public use and all appurtenances, including but not limited to medians, street signs, street lights, traffic signals, soundwalls, drains, tunnels, sewers, conduits, culverts, channels for drainage purposes, and landscaping, hardscaping, lighting or signage within or adjacent to public rights of way or easements.

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§ 14.28.050

2. Any bridge, waterworks, water rights, sewers, sewer plants, light and power works or plants, levees, wharves, breakwaters, jetties, riparian rights or corridors, or seawalls.

3. Any parks, playgrounds, gardens, open space areas, trails, or recreation facilities.

4. Any buildings or structures for municipal uses, including but not limited to municipal office buildings, police facilities, fire facilities, libraries, community centers, senior centers, daycare centers, public parking lots or garages.

5. Any buildings, structures or other improvements otherwise necessary or convenient to carry out the objects, purposes, or powers of the city.

• B. All costs normally associated with the issuance of general obligation bonds may also be paid from the proceeds of any bonds authorized to be issued pursuant to this chapter.

• (Ord. 26153.)

• A. Proceedings are initiated when, by a two thirds vote, the city council adopts a resolution ordering the submission of the proposition of incurring a bonded debt for the purposes set forth in the resolution to the qualified voters of the city at an election held for that purpose.

• B. The resolution shall contain the following information:

  1. The object and purpose of incurring the indebtedness.

  2. The estimated cost of the public improvements.

  3. The amount of the principal of the indebtedness.

  4. The date of the election.

  5. The manner of holding the election and the form of the measure to be placed on the ballot.

• C. The resolution shall be effective immediately upon its adoption.

• (Ord. 26153.)

Several separate propositions for the issuance of general obligation bonds may be submitted at the same election, and any single proposition may include one or more purposes specified in Section 14.28.050.

• (Ord. 26153.)

• A. Except as otherwise provided in this chapter, the election shall be conducted as all other city elections.

• B. If two-thirds of the electors voting on the proposition vote for it, the bonds may be issued.

• C. When two or more propositions for incurring general obligation indebtedness are submitted at the same election, the votes cast for and against each proposition shall be counted separately.

• (Ord. 26153.)

• A. Upon voter approval of the issuance of the bonds, the bonds may be issued as a whole, or in series, at the times, in the amounts (but not in an aggregate principal amount exceeding that authorized by the voters), and in the manner as shall be specified in the resolution, paying agent agreement, fiscal agent agreement or other instrument pursuant to which the bonds are issued.

• B. The bonds shall mature on the date or dates, and shall bear interest at the rate or rates, payable on the date or dates, as shall be specified in the resolution, paying agent agreement, fiscal agent agreement or other instrument pursuant to which the bonds are issued.

• (Ord. 26153.)

The city shall not incur any indebtedness evidenced by general obligation bonds which shall in

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PUBLIC WORKS AND IMPROVEMENTS

§ 14.29.010

the aggregate exceed the sum of 15 percent of the total assessed valuation of all real and personal property within the city. (Ord. 26153.)

• A. All bond proceeds shall be applied exclusively to the purposes and objects recited in the bond measure; provided, however, that when said purposes and objects have been accomplished, any moneys remaining in the improvement fund established upon the issuance of the bonds shall be transferred to the fund to be used for the payment of principal of and interest on the bonds. Further, when such purposes and objects have been accomplished and all principal and interest on the bonds have been paid, any balance of money then remaining shall be transferred to the general fund.

• B. When the city council determines by resolution that the expenditure of money raised by the sale of bonds for the purposes for which the bonds were voted is impracticable or unwise, it may call an election to obtain the consent of the electors to use the money for some other specified municipal purpose. The procedure shall be the same as when the bond proposition was originally submitted to the voters.

• C. At any time after a bond election the city council may determine by resolution that no part of the bond issue remaining unsold shall be issued or sold. Upon the adoption of such resolution the bonds remaining unsold and described in the bond measure shall become void.

• (Ord. 26153.)

• A. At the time of making the general tax levy after incurring the bonded indebtedness, and annually thereafter until the bonds are paid or until there is a sum in the treasury set apart for that purpose sufficient to meet all payments of principal and interest on the bonds as they

become due, the city council shall levy and collect a tax sufficient to pay the interest on the bonds and such part of the principal as will become due before the proceeds of a tax levied at the next general tax levy will be available.

• B. These taxes shall be levied and collected as all other city ad valorem property taxes, and in addition to all other taxes. They shall be used only for payment of the bonds and interest.

• (Ord. 26153.)

• A. Any proceedings taken, tax levied or bonds issued pursuant to this chapter shall not be held invalid for failure to comply with the provisions of this chapter; provided such failure is not a constitutional defect or in violation of the city charter.

• B. Any actions taken pursuant to this chapter shall comply with all applicable provisions of the city charter, including but not limited to those provisions relating to public bidding, municipal elections, the collection of taxes and the issuance of general obligation bonds.

• (Ord. 26153.)