CHAPTER XIV
MUNICIPAL SECURITIES

Section 14.1 Forms of Borrowing.

The City may borrow money for any municipal purpose as provided herein and issue the following securities to evidence such indebtedness.

a.    Short-term notes.

b.    General obligation bonds and other like securities.

c.    Revenue bonds and other like securities.

d.    Special or local improvement bonds and other like securities.

Section 14.2 Short-Term Notes.

The City, upon the affirmative vote of the majority of the entire Council in office at the time the vote is taken, is hereby authorized to borrow money without an election in anticipation of the collection of taxes or other revenues and to issue short-term notes to evidence the amount so borrowed. Any such short-term notes shall mature before the close of the fiscal year in which the money is so borrowed except as is permitted in Section 12.9, subsection d.

Section 14.3 General Obligation Securities.

No bonds or other evidences of borrowing by the City payable in whole or in part from the proceeds of ad valorem taxes or to which the full faith and credit of the City are pledged, shall be issued until the question of their issuance shall, at a special or regular election, be submitted to a vote of the electors of the City and approved by a majority of those voting on the question, except as otherwise provided in this Chapter. The aggregate amount of such bonds or other evidences of borrowing as are described above in this Section shall not exceed ten percent (10 pct.) of the assessed valuation of the taxable property within the City as shown by the last preceding assessment for City purposes, but bonds issued for water, sewer or drainage purposes may be issued without an election and are excepted from the limitations of this Section.

Section 14.4 Revenue Securities.

The City, pursuant to ordinance, and without an election, may borrow money, issue bonds, or otherwise extend its credit, if such bonds or other obligations are made payable from revenues other than the proceeds of ad valorem taxes, including, without limiting the generality of the foregoing, revenues derived from the operation of the project or capital improvement acquired with the bond proceeds, from the available proceeds of a City sales and use tax which may be imposed pursuant to Chapter XIII or from any part or combination of such sources. In addition to the foregoing, the City, pursuant to ordinance and without an election, may borrow money, issue bonds, or otherwise extend its credit for the purpose of acquiring investments, but only if such bonds or other obligations are made payable from revenues other than the proceeds of ad valorem taxes, including, without limiting the generality of the foregoing, revenues derived from the investment of the proceeds of such bonds or other obligations, and only if the revenues derived from such investments not used or pledged to pay the debt service and fees and expenses due in connection with such bonds or other obligations are used solely for the purpose of acquiring, constructing, installing, or. otherwise providing capital improvements for the City. It is hereby determined by the people of the City that the issuance of bonds or other obligations for the purpose of acquiring investments as set forth herein is a public purpose of the City.

Section 14.5 Refunding Securities.

Subject to contractual obligations, the Council may authorize, by ordinance, without an election, issuance of refunding bonds or other like securities for the purpose of refunding and providing for the payment of the outstanding bonds or other like securities of the City as the same mature, or in advance of maturity by means of an escrow or otherwise. Any refunding bonds or other like securities issued for the purpose of refunding revenue bonds or other revenue securities, if issued without an election, shall be payable from substantially the same sources as the bonds refunded.

Section 14.6 Terms and Disposal of Securities.

a.    The terms and maximum interest rate of general obligation or revenue bonds or other like securities shall be fixed by the authorizing ordinance and such securities shall be sold to the best advantage of the City.

b.    Any refunding bond may be exchanged dollar for dollar for a bond refunded.

c.    All bonds may contain provisions for calling the same at designated periods prior to the final due date, with or without the payment of a prior redemption premium.

Section 14.7 Assumption of Indebtedness.

Nothing herein shall be construed to limit the power of the City, by ordinance and without an election, to assume the indebtedness of special taxing districts if the boundaries thereof lie wholly within the City and if such indebtedness was incurred prior to the adoption of this Charter. Section 14.8 No Additional Limitations. Except as provided by this Charter, there shall be no limitations on the authority of the City to incur indebtedness or to issue bonds.

Section 14.9 Limitation of Actions.

Not withstanding anything in this charter to the contrary, no action shall be brought challenging or questioning the legality of any bonds or other obligations issued pursuant to this Chapter XIV, or any contracts, financing agreements, trust indentures, mortgages, or proceedings relating thereto, on or after thirty (30) days from the adoption of the resolution or ordinance authorizing the issuance of such bonds or other obligations.