Chapter 3.08
SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND
Sections:
3.08.060 Responsibilities for outstanding bonds.
3.08.010 Created.
In order to secure the prompt payment of any special improvement district and curb, sidewalk and alley approach bonds and warrants issued in payment of improvements made in any special improvement district, or districts, or undertaken under the curb, sidewalk and alley approach program, and the interest thereon as it becomes due (the "bonds" and "warrants"), unless such bonds or warrants by their terms are not secured by such fund, there is created and established a fund to be known and designated as "special improvement district revolving fund" (hereafter the "revolving fund"). (Ord. 125 §1, 1987)
3.08.020 Transfer of funds.
For the purpose of providing funds for the revolving fund, the council:
A. 1. May, in its discretion, from time to time, transfer to the revolving fund from the general fund of the town (the general fund), such amount or amounts as may be deemed necessary, which amount or amounts so transferred, shall be deemed and considered and shall be loans from such general fund to the revolving fund, and
2. May include in the cost of the improvement to be defrayed from the proceeds of the bonds or warrants an amount up to five percent of the principal amount of the bonds or warrants and deposit it in the revolving fund upon receipt of such proceeds;
B. Shall, in addition to such transfer, or transfers, from the general fund, or in lieu thereof, levy and collect for the revolving fund a tax, declared to be for a public purpose, on all the taxable property in the town as shall be necessary to meet the financial requirements of the fund. However, a tax may not be levied if the balance in the revolving fund exceeds five percent of the principal amount of the then outstanding bonds and warrants secured thereby. If a tax is levied, the tax may not be an amount that would increase the balance in the fund above five percent of the then outstanding bonds and warrants secured thereby. (Ord. 125 §2, 1987)
3.08.030 Loans between funds.
Whenever any bond or warrant which is secured by the revolving fund, or interest thereon, shall be, or shall become, due and payable, and there shall then be either no money, or not sufficient money, in the appropriate special improvement district fund and sidewalk, curb, and alley approach fund with which to pay the same, an amount sufficient to make up the deficiency shall, by order of the council, be loaned by the revolving fund to such district fund. Thereupon such bond or warrant or such interest thereon shall be paid from the money so loaned, or from the money so loaned when added to the insufficient amount, as the case may require. (Ord. 125 §3, 1987)
3.08.040 Lien of loan.
A. Whenever any loan is made to any special improvement district fund or sidewalk, curb and alley approach fund from the revolving fund, the revolving fund shall have a lien therefor on all unpaid assessments and installments of assessments pledged to such funds (whether delinquent or not) and on all moneys thereafter coming into such funds, to the amount of such loan, together with interest thereon from the time it was made at the rate or percentage borne by the bond or warrant for payment of which, or, of interest thereon, such loan was made.
B. Whenever there shall be moneys in such special improvement district fund or sidewalk, curb, and alley approach fund which are not required for the payment of any bond or warrant, or of interest thereon, so much of such moneys as may be necessary to pay such loan shall, by order of the council, be transferred to, and become a part of, the revolving fund. (Ord. 125 §4, 1987)
3.08.050 Use of excess funds.
Whenever there is an amount in the revolving fund, in excess of the amount deposited in the revolving fund pursuant to Section 3.08.020(A)(2) and in excess of five percent of the outstanding bonds and warrants and the council considers any part of the excess to be greater than the amount necessary for the payment or redemption of maturing bonds or warrants secured thereby, or interest thereon, the council may:
A. By a vote of all its members, at a meeting called for that purpose, order such excess, or any part thereof, transferred to the general fund of the town; or
B. Use such excess, or any part thereof, for the purpose of purchase of property at sales for delinquent taxes or assessments, or both, or which may have been struck off or sold to the county for delinquent taxes or assessments, or both, and against which property there then be any unpaid assessments for special improvements on account whereof there are outstanding bonds or warrants of the town. (Ord. 125 §5, 1987)
3.08.060 Responsibilities for outstanding bonds.
So long as any bonds or warrants secured by the revolving fund are outstanding, or any interest thereon remains unpaid, the town may not abrogate its responsibilities or obligations hereunder or under any resolution authorizing the issuance of the bonds and warrants secured by the revolving fund. (Ord. 125 §6, 1987)