§ 20-94 — Local public improvement district bonds; revolving fund

Sec. 20-94. - Local public improvement district bonds; revolving fund.

(a) The manager of finance, upon the estimate and order of the manager of transportation and infrastructure and with the approval of the mayor, may issue and sell, at not less than par and accrued interest, sufficient local public improvement bonds of the City and County of Denver to pay for all local public improvements authorized according to the procedures set forth in part 6 of article VII of the Charter, including the engineering and clerical services, advertising, cost of bond issuance, costs of inspection, accrued interest on outstanding bonds, and any necessary lands taken or damaged. (b) The council shall establish the maximum rate of bond interest and the period of time for which the maximum rate is applicable. (c) All such bonds shall be issued by the manager of finance upon order of the manager of transportation and infrastructure, without being audited by the auditor or the audit committee or allowed by council. The bonds shall be issued in accordance with section 20-97, and the manager shall preserve a record of all such bonds issued. (d) Local public improvement bonds shall be payable only out of the moneys collected on account of the respective assessments made for such improvements or from the proceeds of refunding bonds. All moneys collected on account of the assessments for any improvement shall only be applied to the payment of the bonds issued for the same improvement or to the payment of any bonds issued to refund such bonds, until the payment of all the bonds related to such improvement has occurred. (e) Whenever funds may be held to the credit of any local public improvement district exceeding six months interest on the unpaid principal, the manager of finance may, with such notice as the manager shall determine, call in a suitable number of the bonds of such district for payment; and interest on the bonds so called shall cease on the date set in the notice. (f) Where all outstanding bonds have been paid in a local public improvement district for which bonds were issued, and any money remains to the credit of such district, it shall be transferred to a special surplus and deficiency fund. Whenever there is a deficiency in any local public improvement district to meet payment of outstanding bonds, such deficiency shall be paid out of the fund. Any income derived from the investment of the special surplus and deficiency fund may be transferred by ordinance to another city fund, subject to the following conditions: (1) No such transfer shall cause the balance in the surplus and deficiency fund immediately after the transfer to be less than 25 percent of the principal amount of all local public improvement district bonds then outstanding and not defeased; and (2) No such transfer shall be made unless all local public improvement district bonds issued prior to the transfer and remaining outstanding and not defeased on the date of the transfer provide that the purchaser thereof waives any contractual rights such purchaser may have to the money permitted herein to be transferred. (g) Whenever there is insufficient money in the treasury to the credit of any local public improvement district to pay any installment of interest, or part thereof, on the bonds of the district, when the same becomes due and payable, then the city shall, upon appropriation by city council, pay the interest when due, and reimburse itself from collections to be made on the unpaid assessments due the district. (h) As an alternative to the issuance of local public improvement bonds pursuant to this section to fund local public improvements, the city may establish a local public improvement revolving fund for the purpose of financing such local public improvements with funds of the city. Such local public improvement revolving fund shall be funded through appropriations made by the city council and by the assessments made for such local public improvements on the property especially benefitted thereby. All assessments made for local public improvements financed with moneys from such local public improvement revolving fund shall be deposited in such local public improvement revolving fund and utilized for additional local public improvements throughout the city.

(Code 1950, § 163.1; Ord. No. 1013-02, § 2, 12-9-02; Ord. No. 775-07, § 47, 12-26-07; Ord. No. 39-20, § 40, 2-3-20)