Chapter 12.34 ASSESSMENT BOND PROCEDURE

When bonds are to be issued in any proceedings had and taken in connection with any public improvement, and/or acquisition, and/or immediate possession, and/or street closing, pursuant to this code, the same shall be issued, paid and collected in accordance with Sections 12.34.010 through 12.34.100.

(Prior code § 1606.1).

12.34.020 DECLARATION IN RESOLUTION OF INTENTION.*

When the city council has determined that bonds shall be issued to represent the cost and expenses of any proposed work or improvement or the possession or acquisition of any property in any such proceeding, it shall so declare in its resolution of intention therefor, and shall specify pursuant to which plan herein provided such bonds shall be issued, the date of their maturity following the date of their issuance, the interest rate which they shall bear, which shall not exceed seven percent per year; provided, however, that such interest rate may be stated to be not to exceed a rate stated therein.

(Ord. 70-22 § 1, 1970: prior code § 1606.2).

* For statutory provisions regarding permissible interest rates on municipal bonds, see Gov. Code § 53530 et seq.

12.34.030 FORM OF BONDS.

Whenever any bonds shall be issued pursuant to any one of the plans herein provided, such bonds shall be in the particular plan specified, with such appropriate changes in the wording of such bonds as to show that they have been issued pursuant to such plan of this chapter.

(Prior code § 1606.3).

12.34.040 EXECUTION.

The signature on the interest coupons and all signatures excepting one signature on the bonds may be by printed, engraved or lithographed or other process.

(Prior code § 1606.4).

12.34.050 SALE OF BONDS.

When any bonds issued hereunder are to be sold, they may be sold by the city council as it shall determine. The proceeds of such sale shall be placed in the city treasury to the credit of the fund for which they had been issued, and shall be applied exclusively to the purposes and objects thereof.

(Prior code § 1606.5).

12.34.060 PREMIUM.

If any bonds be sold for an amount in excess of par, such excess shall be paid into the fund for the improvement unless the city council shall otherwise determine.

(Prior code § 1606.6).

12.34.070 REGISTRATION – AGAINST THEFT.

Bonds may be registered against theft, in which event Article 7, Chapter 4, Division 4, Title 4 of the Government Code shall apply.

(Prior code § 1606.7).

12.34.080 DELINQUENT BONDS.

Bonds may be registered for nonpayment, in which event Article 2, Chapter 3, Part 1, Division 1, Title 5 of the Government Code shall apply.

(Prior code § 1606.8).

12.34.090 LOST BONDS.

New bonds or coupons may be issued to replace lost or destroyed bonds, in which event the provisions of Article 3, Chapter 3, Part 1, Division 2, Title 5 of the Government Code shall apply.

(Prior code § 1606.9).

12.34.100 PAYMENT OF ASSESSMENTS WITH MATURED BONDS AND COUPONS.

Payment of all, or any portion, of any assessment taxes levied to pay the principal or interest due, or to become due, on the bonds of any district formed under this code, may be made with matured bonds or matured coupons of such district. Such bonds and coupons shall be accepted and treated as cash, and when so received, shall be canceled, and the interest and sinking fund of such district shall be credited with the face value thereof.

(Prior code § 1606.10).

12.34.110 BOND PLAN A – LOT BONDS – POWERS.

When bonds are issued pursuant to this plan, the bond provisions of the Improvement Act of 1911 shall apply.

(Prior code § 1606.11).

12.34.120 BOND PLAN A – INTEREST.

When the assessment was levied under Sections 12.32.100 through 12.32.190 hereof, interest shall run from the date of filing the list of unpaid assessments. Otherwise, interest shall run from a date to be determined by the city council.

(Prior code § 1606.12)

12.34.130 BOND PLAN A – ASSESSMENTS UNDER FIFTY DOLLARS.

As an alternative method for the collection of such assessments which are of an amount less than fifty dollars, proceedings may be had in accordance with the alternative provisions of Sections 12.32.100 through 12.32.190.

(Prior code § 1606.13).

12.34.140 BOND PLAN B – DISTRICT BONDS – POWERS.

Where bonds are issued pursuant to this plan, the Improvement Bond Act of 1915 shall apply.

(Prior code § 1606.14).

12.34.150 BOND PLAN B – ASSESSMENTS UNDER TWENTY-FIVE DOLLARS.

Bonds may be issued in the total amount of all assessments in amounts of less than twenty-five dollars which are unpaid at such time, to mature at the same time as the maturity of the first series of such bonds, and which assessments shall become due and payable at the same time as that portion of the larger assessments which shall have been collected for the payment of the first series of the serial bonds and the interest thereon.

(Prior code § 1606.15).

12.34.160 BOND PLAN B – UNPAID LIST.

The list of unpaid assessments filed with the city clerk by the street superintendent shall separately state in such list the total of the assessments which are of twenty-five dollars or over in amount and assessments which are under twenty-five dollars in amount.

(Prior code § 1606.16).

12.34.170 BOND PLAN B – DENOMINATIONS.

Bonds for the amount of the assessments which are not an even multiple of not less than one hundred dollars or more than on thousand dollars may be made to mature at the same time as the first series of bonds.

(Prior code § 1606.17).

12.34.180 BOND PLAN C – DISTRICT (LIABILITY) BONDS – POWERS.

When bonds are issued pursuant to this plan, the provisions of Sections 14, 15, 16, 17, 20, 21, 22, 24, 25, 26, 27 and 28 of the Refunding Assessment Bond Act of 1935 shall apply.

(Prior code § 1606.18).

12.34.190 BOND PLAN C – BOND FORM.

Appropriate changes shall be made in the form of the bonds to show that they have been issued for a public improvement or acquisition.

(Prior code § 1606.19).

12.34.200 BOND PLAN C – DATE AND INTEREST.

The city council shall determine the date of said bonds and the date from which interest shall run. Interest shall accrue on the assessments from that date.

(Prior code § 1606.20).

12.34.210 BOND PLAN C – ISSUANCE.

Proceedings for the issuance of said bonds shall be had as provided in the Improvement Bond Act of 1915.

(Prior code § 1606.21).

12.34.220 BOND PLAN C – ADVANCE PAYMENT.

Assessments for said bonds may be paid in advance of maturity in the manner provided in the Improvement Bond Act of 1915, and the provisions thereof shall be inserted in said bonds, instead of the provisions in the Refunding Act.

(Prior code § 1606.22).

12.34.230 BOND PLAN C – ASSESSMENTS UNDER FIFTY DOLLARS.

Bonds may be issued in the total amount of all assessments in amounts of less than fifty dollars which are unpaid at such time, to mature at the same time as the maturity of the first series of such serial bonds, and which assessments shall become due and payable at the same time as that portion of the larger assessments which shall have been collected for the payment of the first series of the serial bonds and the interest thereon.

(Prior code § 1606.23).

12.34.240 BOND PLAN C – UNPAID LIST.

The list of unpaid assessments filed with the city clerk by the street superintendent shall separately state in such list the total of the assessments which are of fifty dollars or over in amount and the assessments which are under fifty dollars in amount.

(Prior code § 1606.24).

12.34.250 BOND PLAN C – DENOMINATIONS.

Bonds for the amount of the assessments which are not an even multiple of not less than one hundred dollars or more than one thousand dollars may be made to mature at the same time as the first series of bonds.

(Prior code § 1606.25).

12.34.260 BOND PLAN D – AD VALOREM LAND BONDS – POWERS.

There is hereby vested in the city council the power to issue serial ad valorem land bonds upon any district created under Chapters 12.02 through 12.34, or under any other chapter of this code, or under any general law.

(Prior code § 1606.26).

12.34.270 BOND PLAN D – ASSESSMENT DISTRICT.

The proposed district shall be described in the resolution of intention and established as provided in Chapter 12.32 pursuant to which said proceedings are had.

(Prior code § 1606.27).

12.34.280 BOND PLAN D – IMPROVEMENT BONDS.

If said proceedings are had pursuant to Sections 12.32.100 through 12.32.190, then upon completion of the work, the person appointed by the city council to be in charge of the work shall prepare and file with the city council a declaration that the work has been completed according to the contract therefor, together with an itemized statement of the cost of such work and the expenses incidental to said proceedings, estimated to the conclusion of said proceedings. The amount of any contribution shall be stated therein as well as the balance for which bonds are to be issued. When the bonds are to be issued they shall be delivered to the contractor upon his paying to the city any moneys due it for incidental expenses as stated in the declaration. The city council may provide in the resolution of intention that the contractor shall be paid in cash form advances to be made to said project or form the proceeds of the sale of the bonds, in which event the bonds shall be issued as provided for the issuance of acquisition bonds.

(Prior code § 1606.28).

12.34.290 BOND PLAN D – ACQUISITION BONDS.

If the proceedings are had pursuant to Sections 12.32.200 through 12.32.240, then upon the entry of all interlocutory judgments in any eminent domain proceedings brought pursuant thereto, proceedings shall be had substantially as provided herein for the issuance of improvement bonds. The bonds shall be sold by the city council and the proceeds shall be used to pay the costs and expenses of the project.

(Prior code § 1606.29).

12.34.300 BOND PLAN D – MUNICIPAL IMPROVEMENT DISTRICT BONDS.

If proceedings are had pursuant to Sections 12.32.250 through 12.32.330, then in the resolution ordering the acquisitions or improvements, or in a subsequent resolution, the city council shall determine the estimated cost of said acquisitions and improvements and of the expenses incidental thereto, and the total estimated amount of the bonds to be issued. The bonds shall be issued and sold and the proceeds shall be used to pay the costs and expenses of the project.

(Prior code § 1606.30).

12.34.310 BOND PLAN D – BONDS ON EXISTING DISTRICT.

If the district has already been established and exists pursuant to Chapter 8 of Article VII of the 1952 code, or under any general law, the proceedings for the authorization and issuance of the additional bonds and the making of the additional acquisitions and improvements under this division shall contain all the matters required and shall be conducted in all respects as provided for original proceedings for the formation of districts and the making of original acquisitions or improvements under Sections 12.32.250 through 12.32.330, so far as applicable, except that it shall not be necessary to describe the boundaries of the district. Such bonds may be issued on an existing district as originally established or as subsequently enlarged by annexation proceedings.

(Prior code § 1606.31).

12.34.320 BOND PLAN D – POSSESSION BONDS.

If assessment proceedings are had pursuant to Sections 12.32.200 through 12.32.330, and proceedings shall be had for the taking of immediate possession of the property to be acquired, then the person in charge of said 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 proceedings shall be had for the issuance and sale of bonds therefor as provided for the issuance of acquisition bonds. In such event the city council shall issue only such amount of additional bonds as is necessary to provide for the additional costs of said project and the proceeds of the possession bonds shall be finally used to apply to the cost of the acquisition and improvements and expenses incidental thereto.

(Prior code § 1606.32).

12.34.330 BOND PLAN D – NOTICE OF HEARING.

The clerk shall give notice of a time and place of hearing on the declaration in the resolution of intention in relation to the issuance of any bonds to be issued other than pursuant to Sections 12.32.250 through 12.32.330 or pursuant to Section 12.34.310. Such notice shall be published twice in a newspaper of general circulation published in the city, the first of which shall be at least ten days before the date set for hearing.

(Prior code § 1606.33).

12.34.340 BOND PLAN D – FORM OF NOTICE.

The notice shall refer to the resolution of intention in the proceedings for identification, for a description of the work to be done or acquisitions or improvements to be had and for the boundaries of the assessment district, and notice shall be given therein to all persons interested that it is proposed to hear the report and issue bonds pursuant to Sections, 12.34.260 through 12.34.500, and any person feeling aggrieved by any act or determination done or made in said proceedings or claiming that any previous acts or proceedings 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 city council at the time and place so fixed by it and be heard.

(Prior code § 1606.34).

12.34.350 BOND PLAN D – HEARING.

All objections shall be made in writing and signed by the protestant and any grounds not stated therein and filed at or before the time fixed for hearing, shall be deemed waived. The contractor or his assigns, and any other person or persons interested in said matter, may appear and be heard upon any of the matters referred to in said notice. The city council may confirm, amend, alter, modify or correct the report in such manner as it shall deem just, and require the work to be completed according to its direction or those of the person designated by it therefor.

(Prior code § 1606.35).

12.34.360 BOND PLAN D – ISSUANCE OF BONDS.

In the city council’s final order upon the hearing, or, in the resolution ordering the acquisitions or improvements when the proceedings are had pursuant to Sections 12.32.250 through 12.32.330, the city council shall, by resolution, order the issuance of bonds. The resolution shall state the total principal amount thereof and the amount to mature in each year during their term. The first maturity of the bonds may be postponed for a period not beyond July 2nd on the third calendar year following their date. The bonds may be made to mature on July 2nd over a period not to exceed forty years from their date.

(Prior code § 1606.36).

12.34.370 BOND PLAN D – BONDS, FORM AND EXECUTION.

The bonds shall be in such form, shall be executed by the officers, and shall be made payable at the place or places within or without the state, as the city council shall determine. The bonds shall be negotiable in form and be payable to bearer.

(Prior code § 1606.37).

12.34.380 BOND PLAN D – ISSUES, SERIES, DIVISIONS.

An issue of bonds shall constitute all of the bonds issued pursuant to a resolution of intention. Each issue shall be given a serial designation. the city council may, in its discretion, divide the issue into two or more divisions and fix different dates for the bonds of each division, in which event the bonds of each division shall be made payable at such time or times as the city council shall determine. Possession bonds shall constitute a division of an issue. All bonds of an issue shall have equal priority.

(Prior code § 1606.38).

12.34.390 BOND PLAN D – CALLABLE BONDS.

Bonds are not subject to call or redemption prior to their fixed maturity date unless the right to exercise the call is expressly stated on the face of the bonds. Provisions may be made thereto for a premium on call.

(Prior code § 1606.39).

12.34.400 BOND PLAN D – SUPPLEMENTAL BONDS.

If the proceeds of the bonds for any reason are less than the cost 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 § 1606.40).

12.34.410 BOND PLAN D – INTEREST.

Semiannual interest coupons shall be attached to said bonds and be made payable on the second days of January and July of each year, excepting that the first coupon shall be for interest from their date to the second of January next succeeding four months after the date of such bonds. Provisions may be made for the payment of interest from the proceeds of the sale of the bonds for the period of acquisition and construction of the project and for one year thereafter. If upon presentation at maturity payment of any bond is not made as herein provided, interest shall continue at the same rate until the principal is paid in full.

(Prior code § 1606.41).

12.34.420 BOND PLAN D – AD VALOREM TAX.

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

(Prior code § 1606.42).

12.34.430 BOND PLAN D – METHOD OF COLLECTION.

Said special assessment levy shall be levied and collected upon the last equalized secured and utilized tax rolls upon which general city taxes are collected. It 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 and by the same persons and at the same time, and with the same penalties and interest as are other taxes for city purposes, and all laws applicable to the levy, collection and enforcement of taxes for city purposes are hereby made applicable to said special assessment levy, and be subject to redemption within one year from the date of sale in the same manner as such real property is redeemed from the sale for general city taxes, and if not redeemed shall in like manner pass to the purchaser.

(Prior code § 1606.43).

12.34.440 BOND PLAN D – CONTRIBUTIONS.

The city council may annually, at or prior to the time the levy is made, or at such other time as it shall determine, transfer to the redemption fund of the bonds, such amount as it shall determine.

(Prior code § 1606.44).

12.34.450 BOND PLAN D – ZONES.

If, in the judgment of the city council conducting the proceedings, varying benefits to be derived by the different parcels of land lying within the assessment district so require, the district may be divided into zones according to benefits. 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 necessary, and each zone shall be composed of and include all the lands within the district which will be benefited in like measure. The city council shall also determine the percentage of the sum to be raised each year by the levy and collection of the special assessment taxes in the district for the payments on the principal and interest of the bonds, which will be raised from the lands in each zone. When the district is divided into such zones the resolution of intention shall so state, giving said percentages to be raised from the lands in each zone. 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. It is sufficient in all cases where the assessment district is to be divided into such zones according to benefits if the resolution of intention states that fact and refers to the plat or map for the boundaries and all details concerning the zones.

(Prior code § 1606.45).

12.34.460 BOND PLAN D – DELINQUENCY BONDS.

Such levies, in case of delinquency, are augmented by the supplemental remedies of the provisions of Sections 12.32.250 through 12.32.330.

(Prior code § 1606.46).

12.34.470 VALIDITY OF BONDS AND TAX RATE.

All bonds issued and all taxes 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 same are issued no tax levied or collected for the purpose of paying the principal or interest on said bonds shall be held invalid or illegal, or set aside by reason of any error, informality, irregularity, omission or defect in said proceedings, not amounting to a want of due process of law.

(Prior code § 1606.47).

12.34.480 ISSUANCE OF NEW BONDS WHEN PROCEEDINGS FOR BONDS IRREGULAR.

When any court of competent jurisdiction shall determine that any contract purporting to have been made, or any proceedings, steps or actions purporting to have been taken, or any bond or bonds issued, or any levy of assessment made, under this chapter, is or are void, invalid, or shall for any cause enjoin the issuance of any bonds proposed to be issued under the code, the court shall also determine that new bonds shall be issued in the place thereof. The city council may also order the issuance of new bonds when it shall determine the existence of such voidness, invalidity or unenforceability. In such event the city council shall cause a declaration to be filed 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. The declaration shall be noticed and heard and new bonds issued as herein provided for acquisition bonds.

(Prior code § 1606.48).

12.34.490 MAINTENANCE.

An annual assessment may be levied for maintenance and/or operation of the facilities acquired or constructed with the proceeds of the bonds in the manner provided in Sections 12.32.340 through 12.32.620.

(Prior code § 1606.49).

12.34.500 ALTERATION OF BOUNDARIES.

The boundaries of the assessment district may be enlarged at any time in the manner provided in Sections 12.32.340 through 12.32.620.

(Prior code § 1606.50).

12.34.510 BOND PLAN E – AD VALOREM REALTY BONDS – POWERS.

There is hereby vested in the city council the power to issue serial ad valorem realty bonds upon any district created under Chapters 12.02 through 12.34, or under any other chapter of this code, or under any general law.

(Prior code § 1606.51).

12.34.520 BOND PLAN E – AD VALOREM ASSESSMENT.

The annual ad valorem assessment to be levied therein shall be upon all land and improvements within the assessment district excepting publicly owned property.

(Prior code § 1606.52).

12.34.530 BOND PLAN E – PROCEDURE.

Except as otherwise provided in Sections 12.34.510 through 12.34.530, all of the provisions of Sections 12.34.260 through 12.34.500 shall apply.

(Prior code § 1606.53).