Whittier Municipal Code Art. VI Bonds

Whenever the city council deems it necessary for an existing or proposed community facilities district to incur bonded indebtedness, it shall, by resolution, set forth all of the following:

A. A declaration of the necessity for the indebtedness;

B. The purpose for which the proposed debt is to be incurred;

C. The amount of the proposed debt;

D. The time and place for a hearing by the city council on the proposed debt issue.

(Ord. 2466 § 2 (5-1), 1989)

The amount of the proposed bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; lease payments for school facilities that are relocated, satisfaction of contractual obligations issued pursuant to this chapter, architectural engineering, inspection, legal, fiscal, and financial consultant fees; environmental review and monitoring costs; bond and other reserve funds; discount fees; interest on any bonds of the district due and payable prior to the expiration of one year from the date of completion of all of the facilities, not to exceed five years; election costs; administrative expenses of the city in administering the district or the levy and collection of the special taxes; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancements costs, and printing costs.

(Ord. 2466 § 2 (5-2), 1989)

The city clerk shall publish a notice of the hearing in a newspaper of general circulation circulated within the district. The notice shall state:

A. The time and place of the hearing;

B. At that time and place any person interested, including all persons owning property in the district, will be heard upon the proposed debt issue.

(Ord. 2466 § 2 (5-3), 1989)

(Ord. No. 3112, § 4, 2-25-20)

At the time and place fixed for the hearing on the resolution declaring the necessity for incurring the bonded indebtedness or at any time and place to which the hearing is adjourned, the city council shall proceed with the hearing. Said hearing may be consolidated with the hearing referred to in Section 3.36.250 on the formation of the district.

At the hearing any person interested, including persons owning property within the district, may appear and present any matters material to the questions set forth in the resolution declaring the necessity for incurring the bonded indebtedness.

(Ord. 2466 § 2 (5-4), 1989)

For purpose of financing of, or contributing to the financing of, specified facilities, the city council may by resolution designate a portion or portions of the district as one or more improvement areas. An area shall be known as "Improvement Area No. _______ of "Community Facilities District _______ of the City of Whittier." After the designation of an improvement area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds shall apply only to the improvement area for those specified facilities.

(Ord. 2466 § 2 (5-5), 1989)

After the city council has held the hearing pursuant to Section 3.36.690(D), if it deems it necessary to incur the bonded indebtedness, it shall by resolution state all of the following:

A. That it deems it necessary to incur the bonded indebtedness;

B. The purpose for which the bonded indebtedness will be incurred;

C. Either of the following in accordance with its previous determination:

1. That the whole of the district will pay for the bonded indebtedness,

2. That a portion of the district will pay for the bonded indebtedness, which portion shall be described in the resolution of the city council made pursuant to Section 3.36.730;

D. The principal amount of debt to be incurred;

E. The maximum term of the bonds to be issued, which term shall not exceed fifty years;

F. The maximum annual rate of interest to be paid, payable annually or semiannually, or in part annually and in part semiannually, or in such other manner as shall be provided by the city council;

G. That the proposition will be submitted to the voters;

H. The date of the special community facilities district election (which may be consolidated with a general or special district election, including an election to levy a special tax) at which time the proposition shall be submitted to the voters;

I. If the election is not conducted by mail or hand-delivered ballot, the hours between which the polls shall be open;

J. If the election is conducted by mail or hand-delivered ballot, the hour when the ballots are required to be received in the office of the election officer conducting the election, and that if all qualified electors have voted, the election shall be closed.

(Ord. 2466 § 2 (5-6), 1989)

The resolution provided for in Section 3.36.740 shall constitute the notice of such special bond election and such resolution shall be published in a newspaper of general circulation circulating within the district.

(Ord. 2466 § 2 (5-7), 1989)

A. Except as otherwise provided in this article, the provisions of the California Elections Code relating to the qualifications of electors, the manner of voting, the duties of election officers, the canvassing of returns, and all other particulars in respect to the management of elections insofar as they may be applicable shall govern all elections pursuant to this article, except that voting shall be conducted in the manner specified in Sections 3.36.350 through 3.36.380 of this chapter.

B. Propositions relating to the levy of a special tax, incurring of bonded indebtedness, or to establish or change an appropriations limit, or any combination thereof, under this chapter, may be combined into one ballot proposition as determined by the city council.

C. If the area designated in the resolution adopted pursuant to Section 3.36.740 does not include the entire community facilities district, a separate ballot shall be prepared for the vote upon the proposition to authorize bonds and to levy a special tax for payment of such bonds and only the voters entitled thereto shall be given such ballots.

(Ord. 2466 § 2 (5-8), 1989)

If more than two-thirds of the votes cast at the election are in favor of incurring the indebtedness, the legislative body may, by resolution, at the time or times it deems proper, provide for the following:

A. The form of the bonds;

B. The execution of the bonds;

C. The issuance of any part of the bonds;

D. The appointment of one or more banks or trust companies within or without the state having the necessary trust powers as trustee, fiscal agent, paying agent, or bond registrar;

E. The execution of a fiscal agent agreement, trust agreement or indenture securing the bonds;

F. The pledge or assignment of any revenues of the community facilities district to the repayment of the bonds;

G. The investment of any bond proceeds and other revenues, including special tax revenues, by the trustee or fiscal agent in any securities or obligations described in the resolution, fiscal agent agreement, indenture, trust agreement, or other instrument providing for the issuance of the bonds;

H. The date or dates to be borne by the bonds and the time or times of maturity of the bonds and the place or places and time or times that the bonds shall be payable;

I. The interest, fixed or variable, to be borne by the bonds;

J. The denominations, form, and registration privileges of the bonds;

K. Any other terms and conditions determined to be necessary by the city council.

(Ord. 2466 § 2 (5-9), 1989)

A. As a cumulative remedy, if bonds are outstanding, the city council may, not later than four years after the due date of the last installment of principal thereof, order that any delinquent special taxes levied in whole or in part for payment of the bonds, together with any penalties, interest, and costs, be collected by an action brought in the superior court to foreclose the lien of special tax.

B. The city council may covenant for the benefit of bondowners to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of interest or principal of any bonds that are issued.

(Ord. 2466 § 2 (5-10), 1989)

A. When any foreclosure actions are ordered, the tax collector shall be credited upon the current tax roll with the amount charged on account of the delinquent special taxes to be sued on, including applicable penalties, interest, and costs, and the tax collector shall be relieved of further duty in regard thereto. Any amounts not the subject of a foreclosure action shall remain collectible by the tax collector.

B. The tax collector may charge the actual cost incurred in removing these sums from the tax roll. This charge shall be added to the costs a be recovered in the foreclosure action.

(Ord. 2466 § 2 (5-11), 1989)

At any time after the tax collector has been relieved of his/her duty to collect sums under Section 3.36.790 and before judgment in a foreclosure action, the city council shall dismiss the action upon payment of all of the following:

A. The amount of any delinquent special taxes together with any penalties, interest, and costs accrued thereon to date of complete payment hereunder;

B. Costs of suit, including, but not limited to, litigation guarantees provided by title companies with respect to all claims of ownership or interest in the subject property;

C. Attorneys' fees authorized by the local agency;

D. The tax collector's costs authorized by subsection B of Section 3.36.790.

(Ord. 2466 § 2 (5-12), 1989)

(Ord. No. 3112, § 2, 2-25-20)

The foreclosure action shall be brought in the name of the city, and may be brought within the time specified in Section 3.36.780. The complaint may be brief and need only include the following allegations:

A. That on a stated date, a certain sum of special taxes, levied against the subject property (describing it) pursuant to this chapter, became delinquent;

B. On that date, bonds issued pursuant to this chapter, payable in whole or in part by the subject special taxes, were outstanding (if applicable);

C. That the city council has ordered the foreclosure.

(Ord. 2466 § 2 (5-13), 1989)

A. Any judgment shall decree the amount of the continuing lien against each parcel to be foreclosed, and shall order the parcel to be sold on execution as in other cases of the sale of the real property by process of the court. The judgment amount shall include reasonable attorneys' fees to be fixed by the court, together with interest, penalties, and other authorized charges and costs (all calculated up to date of judgment). The foreclosure action shall be governed and regulated by the provisions of this chapter, and also where not in conflict with this chapter, by other provisions of law generally applicable to foreclosure actions.

B. Property sold hereunder may not be sold for less than the amount of the judgment plus post-judgment interest and authorized costs without the consent of the owners of fifty-one percent by principal amount of the outstanding bonds.

(Ord. 2466 § 2 (5-14), 1989)

No special tax installment, interest or penalties thereon, or deed shall be held invalid for any error in computation if the error is found to be comparatively negligible, or is found to be in favor of the owner of the real property affected thereby.

(Ord. 2466 § 2 (5-15), 1989)

The bonds shall be signed by the mayor and countersigned by the city clerk. All signatures on the bonds may be printed, lithographed, or engraved. If any officer whose signature appears on the bonds ceases to be that officer before the delivery of the bonds, his/her signature is as effective as if he/she had remained in office. All bonds shall be payable at the office of the city clerk or at the office of any agent designated by the city.

(Ord. 2466 § 2 (5-16), 1989)

(Ord. No. 3112, §§ 2, 4, 2-25-20)

When the city council fixes and levies special taxes and charges for the community facilities district it shall also fix and levy that amount of special taxes and charges within the community facilities district which is required for the payment of the principal of and interest on any outstanding bonded debt of the community facilities district, including any necessary replenishment or expenditure of bond reserve funds or accumulation of funds for future bond payments. The special tax or charge shall be levied and collected by the same officers and at the same time and in the same manner that all other special taxes and charges are levied and collected for the community facilities district or in any other manner specified by the city council. The special taxes and charges shall not exceed the authority granted by Article II, III or IV of this chapter. All of the collections for payment of principal and interest on bonds shall be paid into the community facilities district bond or similar fund and reserve or other fund for the particular community facilities district and shall be used solely for the payment of the principal of and interest on the outstanding bonds of the community facilities district.

(Ord. 2466 § 2 (5-17), 1989)

An action to determine the validity of bonds issued pursuant to this chapter or the validity of any special taxes levied pursuant to this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the California Code of Civil Procedure but shall, notwithstanding the time limits specified in Section 860 of the California Code of Civil Procedure, be commenced within thirty days after the voters approve the issuance of the bonds or the special tax if the action is brought by an interested person pursuant to Section 863 of the California Code of Civil Procedures. Any appeal from a judgment in that action or proceeding shall be commenced within thirty days after entry of judgment.

(Ord. 2466 § 2 (5-18), 1989)

The city may sell the bonds so authorized at public or private sale, at the times and in the manner the city council deems appropriate. However, all bonds sold at public sale shall be sold on sealed proposals after advertising for bids by publication of notice of sale, not less than five days prior to the date of sale, in a newspaper of general circulation circulating in the city. If no bids are received or the bids received are not satisfactory as to price or responsibility of the bidders, the city council or its designee may reject all bids received, if any, and either readvertise or sell the bonds at private sale.

(Ord. 2466 § 2 (5-19), 1989)

Any bonds issued by a district organized under the provisions of this chapter are given the same force, value and use as bonds issued by any municipality and shall be exempt from all taxation within the state.

(Ord. 2466 § 2 (5-20), 1989)

A. The city council may, by resolution, authorize the issuance of new bonds to refund any or all of the district bonds outstanding or improvement area bonds outstanding that have been issued pursuant to this article.

B. The city council may issue refunding bonds without repeating any of the procedures required for the approval of the original bond issue, if the city council determines that the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds does not exceed the total net interest cost to maturity on the bonds to be refunded plus the principal amount of the bonds to be refunded. Subject to such limitations, the principal amount of the refunding bonds may be more than, less than, or the same as the principal amount of the bonds to be refunded.

C. The total authorized amount of the bonded indebtedness of a district or an improvement area therein, as approved by the qualified voters thereof, shall not be reduced by the principal amount of any refunding bonds issued to refund any or all outstanding bonds of the district or improvement area.

(Ord. 2466 § 2 (5-21), 1989)

If the city council determines to issue refunding bonds pursuant to this article it shall adopt a resolution providing for their issuance. The resolution shall:

A. Describe the bonds being refunded and state the date on which it is anticipated that the refunding will occur;

B. Fix the date of the refunding bonds;

C. Designate the denomination or denominations of the refunding bonds;

D. Fix the minimum rate or rates of interest to be paid on the refunding bonds;

E. Fix the maturity dates of the refunding bonds, which may exceed the latest maturity date of the bonds being refunded, provided that the latest maturity date of the refunding bond shall not be in excess of fifty years from the date of issuance of the bonds to be refunded;

F. Designate the place or places of payment of principal and interest on the refunding bonds and on the bonds to be refunded;

G. Describe the form of the refunding bonds.

(Ord. 2466 § 2 (5-22), 1989)

The city council may sell the refunding bonds at public or private sale. The proceeds of any sale of refunding bonds for cash shall be applied only as permitted by this article.

(Ord. 2466 § 2 (5-23), 1989)

The proceeds of the refunding bonds and the earnings thereon shall be in an amount sufficient to meet either the requirements of subsection A or B of this section at the time of issuance of the refunding bonds, as certified by a certified public accountant licensed to practice in this state.

A. The proceeds (including any amounts in any reserve fund established for the bonds to be refunded not needed for purposes of the refunding bonds) and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunded bonds as they become due or at designated dates prior to maturity and the costs of issuance of the refunding bonds.

B. The proceeds (including any amounts in any reserve fund established for the bonds to be refunded not needed for purposes of the refunding bonds) and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunding bonds prior to the maturity of the bonds to be refunded or prior to a designated date or dates before the maturity of the bonds to be refunded, the principal and any redemption premiums due on the refunded bonds at maturity or upon that designated date or dates, and the costs of issuance of the refunding bonds.

(Ord. 2466 § 2 (5-24), 1989)

Any savings achieved through the issuance of refunding bonds shall be used to reduce the special taxes which were levied to retire the bonds being refunded. At the time the city council makes a determination to issue the refunding bonds, it shall determine and cause to be made any reductions in the annual tax in the district, which reduction shall be made on a pro rata basis.

(Ord. 2466 § 2 (5-25), 1989)

Any bonds issued may be made callable in the document providing their terms. When bonds are made callable a statement to that effect shall be set forth on the face of the bonds. Callable bonds may be redeemed on any interest payment date prior to their fixed maturity in the amounts, manner and prices prescribed in the document providing their terms.

(Ord. 2466 § 2 (5-26), 1989)