§ 100. Issuance of bonds for improvement districts.

The City shall have power to borrow money on the credit of any improvement district of the City and issue bonds therefor for permanent public improvements in such districts, and the Council may divide the City, or any portion thereof; into improvement districts; but every proposition to borrow money on the credit of any improvement district for permanent public improvements therein shall be first submitted to and approved by a majority of the qualified electors residing within such district, voting in an election held for such purpose and shall distinctly specify the purpose of the loan and the permanent public improvements to be constructed; provided, however, that several improvements of different character may be submitted at one election. All bonds shall specify the purpose for which they were issued. All accrued interest to date of payment of the proceeds of sale shall be deposited in the City depository. Such bonds may be negotiated in lots as the Council may decree. No debt shall be contracted for the payment whereof such bonds are issued until such bonds are sold and no debt shall ever be created against any improvement district unless at the same time provision be made to assess and collect annually upon property in such district a sum sufficient to pay the debt service on such bonds and create a sinking fund thereon as required by law. The tax which shall be collected annually from the owners of property in such improvement district for payment of such bonds shall be in addition to all other current taxes levied by the City, and the fund thus created shall be kept separate by the City depository from other funds, and shall not be diverted or used for any other purpose than to pay interest and principal on such bonds.

(Ord. No. 85965, § 1 (Prop. 1), 5-5-97)