Chapter 3.24
LOCAL IMPROVEMENT
GUARANTY FUND
Sections:
3.24.030 Expenditures – Transfer of funds.
3.24.010 Created.
There is created and established a fund designated as the “local improvement guaranty fund,” and the extent of the fund, payment and interest of all local improvement bonds hereafter issued by the city is guaranteed from the fund. (1964 code § 1.40.010).
3.24.020 Source of money.
The city shall, from time to time, as other taxes are levied, levy such sums as may be needed to meet the financial requirements of the fund, and the city treasurer shall, at the time said annual levy is made, make a report to the city council showing the financial condition of the fund, together with his recommendation of the amount to be levied in order to meet the obligations accrued against the fund; provided, however, that the fund shall at no time exceed a sum equal to five percent of the outstanding bond obligations of the city guaranteed by the fund. (1964 code § 1.40.011).
3.24.030 Expenditures – Transfer of funds.
Whenever either or both the principal or interest of any local improvement bond or bonds becomes due, payment of which is guaranteed by the local improvement guaranty fund, and there are not sufficient funds in the local improvement fund created to meet the obligations, to pay either or both the principal or interest of the bond or bonds, as the same become due, the city treasurer shall pay such principal or interest, or both, out of any funds remaining in the local improvement guaranty fund not otherwise appropriated. To the extent of all such payments made from the fund, the city, as trustee for the fund, shall be subrogated to all the rights of the holders of the bonds or interest coupons so paid, and the proceeds thereof, when received, shall be deposited to the credit of the fund. (1964 code § 1.40.012).
3.24.040 Warrants.
Whenever either or both the principal or interest of an local improvement bond or bonds become due, payment of which is guaranteed by the local improvement guaranty fund, and there are not sufficient funds in either the local improvement fund created to meet the obligations or the local improvement guaranty fund, warrants drawing interest at six percent per year shall be issued against the fund by the proper city officials to pay either or both said principal and interest; and the city shall, at the time of making its annual budget, levy such sums as will be sufficient, with the other sources of the fund, to pay all warrants so issued during the preceding fiscal year; provided, however, that warrants shall at no time exceed five percent of the outstanding obligations guaranteed by the fund. (1964 code § 1.40.013).
3.24.050 Deposits.
There shall also be paid into the local improvement guaranty fund the interest received from bank deposits of the fund and on all moneys collected from local assessments, the bonds of which are guaranteed by the fund. (1964 code § 1.40.014).
3.24.060 Claims.
Neither the holder nor the owner of any bond issued under the provisions of this chapter shall have any claim therefor against the city, except for payment from the special assessments made for the improvement for which said bond was issued, and except as against the local improvement guaranty fund. (1964 code § 1.40.015).