CHAPTER VIII.  BORROWING POWERS

GENERAL POWERS AND RESTRICTIONS
	Section 8.1  Subject to the applicable provisions of law and this charter,
	the Council may by ordinance authorize the borrowing of money for any
	purpose within the scope of powers vested in the City and permitted by
	law and may authorize the issuance of bonds or other evidences of
	indebtedness therefor. Such bonds or other evidences of indebtedness
	shall include but not be limited to the following types:

	8.1:1  General obligation bonds which pledge the full credit and resources
	of the city for the payment of such obligations, including bonds for the city's
	portion of public improvements, except that the total amount of such
	general obligation bonds shall not exceed ten per cent (10%) of the
	assessed valuation of all real and personal property subject to taxation.

	8.1:2  Notes issued in anticipation of the collection of taxes, but the
	proceeds of such notes may be spent only in accordance with
	appropriations as provided in Section 6.6.

	8.1:3  In case of fire, flood or other calamity, emergency loans due in
	not more than five (5) years for the relief of the inhabitants of the city
	and for the preservation of municipal property, provided that the total
	amount of such bonds shall not exceed 3/8ths of 1% of the assessed
	valuation of all real and personal property subject to taxation.

	8.1:4  Special assessment bonds issued in anticipation of the payment
	of special assessments made for the purpose of defraying the cost of
	any public improvement, or in anticipation of the payment of any
	combination of such special assessments. Such special assessment
	bonds may be an obligation of the special assessment district or districts
	alone or may be both an obligation of the special assessment district or
	districts and a general obligation of the city, provided, however, that the
	total amount of such assessment bonds at time of issue shall not exceed
	ninety per cent (90%) of the special assessments receivable as shown
	on the special assessment rolls of the city.

	8.1:5  Mortgage bonds for the acquiring, owning, purchasing, constructing,
	improving, or operating of any public utility which the city is authorized by
	this charter to acquire or operate; provided such bonds shall not impose
	any liability upon such city but shall be secured only upon the property and
	revenues of such public utility, including a franchise, stating the terms upon
	which, in case of foreclosure, the purchaser may operate the same, which
	franchise shall in no case extend for a longer period than twenty (20) years
	from the date of the sale of such utility and franchise on foreclosure. Such
	bonds shall be authorized by a three-fifths (3/5ths) vote of the electors voting
	thereon at any general or special election. A sinking fund shall be created in
	the event of the issuance of such bonds, by setting aside such percentage
	of the gross or net earnings of the public utility as may be deemed sufficient
	for the payment of the mortgage bonds at maturity, unless serial bonds are
	issued of such a nature that no sinking fund is required.

	8.1:6  Bonds for the refunding of the funded indebtedness of the city.

	8.1:7  Revenue bonds as authorized by statute which are secured only by
	the revenue from a public improvement and do not constitute a general
	obligation to the city.

	8.1:8  No bond of the city shall be issued bearing an interest rate greater
	than six per cent (6%) per annum.
Statutory reference:
	Bonds, see M.C.L.A. §§ 141.151 through 141.153

BOND - REQUIREMENTS
	Section 8.2  Each bond or other evidence of indebtedness shall contain
	on its face a statement specifying the purpose for which the same is issued
	and it shall be unlawful for any officer of the city to use the proceeds thereof
	for any other purpose, and any officer who shall violate this provision shall
	be deemed guilty of misconduct in office, except that whenever the proceeds
	of any bond issue or part thereof shall remain unexpended and
	unencumbered for the purpose for which said bond issue was made, the
	Council may authorize the use of said funds for the retirement of bonds of
	such issue. All bonds and other evidences of indebtedness issued by the
	city shall be signed by the Mayor and countersigned by the City Clerk, under
	the seal of the City and interest coupons may be executed with the facsimile
	signatures of the Mayor and the City Clerk. A complete and detailed record
	of all bonds and other evidences of indebtedness issued by the city shall be
	kept by the City Clerk. Upon the payment of any bond or other evidence of
	indebtedness, the same shall be “cancelled”.

BONDS - TIME OF ISSUE
	Section 8.3  No unissued bonds of the city shall be issued or sold to secure
	funds for any purpose other than that for which they were specifically
	authorized, and if any such bonds are not sold within three (3) years after
	authorization, such authorization shall, as to such bonds, be null and void,
	and such bonds shall be cancelled.