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 Pasadena
 Code of Ordinances
 CHARTER
 Article XIV. WATER AND POWER UTILITY OPERATIONS

  § 1414. REVENUE BONDS: LIMITATIONS.  

Latest version.

  • The following limitations shall apply to the issuance of bonds under this Article:

    (A)

    Said bonds shall be payable within not more than forty years from the date of issue thereof, and not less than one-fortieth part of the whole of any issue of bonds shall be payable annually beginning not later than ten years from the date of such issue.

    (B)

    Said bonds shall be designated "Revenue Bonds" and such bond shall state on its face that it does not constitute an indebtedness of the City of Pasadena but is an obligation payable, principal and interest, only from the Revenue Fund of the utility for which the proceeds of the bonds will be used.

    (C)

    Said bonds shall be sold only at public sale following such notice as the City Council by resolution or order may prescribe; provided, however, that if no satisfactory bid is received pursuant to such notice the City Council may reject all bids received, if any, and thereafter sell said bonds at public or private sale: provided, further, that the provisions of this subsection shall not apply to the exchange of any refunding bonds. Any such revenue bonds may be sold at a fixed rate of interest or the bidders may be invited to state the rate or rates of interest at which they will purchase said bonds, but no rate on any of the bonds shall exceed the maximum rate stated in the ordinance authorizing the issuance of such bonds. If the bidders are invited to state the interest rate or rates, then upon the acceptance of a bid the City Council shall by resolution or order, which shall not be subject to referendum, fix such interest rate or rates as have been bid by the successful bidder as the rate or rates of interest on the bonds.

    (D)

    Said bonds shall be sold for not less than par and accrued interest to date of delivery. The proceeds from the sale (except premium and accrued interest which shall be paid into the Bond Service or other fund designated or established for the payment of principal and interest of the bonds) shall be paid into the construction fund designated by the ordinance authorizing the issuance of such bonds, and not into the "Water Fund" or the "Light and Power Fund," and shall be applied exclusively to the objects and purposes set forth in such ordinance; provided, however, (1) that the Revenue Fund from which the bonds are payable may be reimbursed from such proceeds for expenditures for purposes for which the bonds were issued made from such Revenue Fund after the ordinance authorizing the issuance of such bonds became effective, (2) that said proceeds may be used for the payment of interest on said bonds during the period of acquisition and construction and for the first six months thereafter, and (3) that when the objects and purposes for which the bonds were issued have been accomplished any remaining unexpended funds derived from the sale of said bonds shall be used for the payment of the principal and interest of said bonds.

(Sec. 1414 amended by vote of the people 3-9-1993.)