Issuance of Bonds

Sacramento City Code tit. 3, ch. 3.154, art. II

in effect

Sacramento City Code § 3.154.040 General Powers.

3.154.040 General Powers. The city is authorized and empowered to do the following: A. Issue or incur bonds for the purposes of financing capital-improvement costs and other authorized facilities; refunding outstanding bonds issued under this chapter; refunding other obligations, including bonds, notes, loans, interim certificates, debentures, installment-purchase agreements, and leases, that were incurred to finance capital-improvement costs; establishing debt-service reserves; paying capitalized interest; and paying all costs incurred in connection with such bonds or other obligations. B. Establish the terms for financings undertaken in accordance with this chapter. C. Employ or contract for such legal, underwriting, municipal-advising, feasibility, engineering, and other consultant services the city council authorizes or determines to be necessary for the issuance and sale of bonds. D. Do all things necessary or convenient to carry out the purposes of this chapter. (Ord. 2021-0004 § 2; Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.050 Authorization of bonds.

3.154.050 Authorization of bonds. The city council may adopt a resolution authorizing the issuing or incurring of bonds in accordance with this chapter. Bonds must be payable from revenues and may, in the city council's discretion, be additionally payable from other funds as designated in the issuing instrument, including assessments levied within any assessment district the City establish-es under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code, section 36600 et seq.) as it may be modified in accordance with section 3.92.050 or any other provision of this code. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.060 Proceedings authorizing issuance; public or private sales.

3.154.060 Proceedings authorizing issuance; public or private sales. A. The resolution that authorizes the issuance of bonds and the related issuing instrument may prescribe any or all of the following for the bonds: 1. The form of the bonds, which may be issued as serial bonds, term bonds, or installment bonds, or any combination of them. 2. The date or dates to be borne by the bonds. 3. The date or dates of maturity of the bonds. 4. The interest to be borne by the bonds, which may be taxable or tax-exempt, or fixed or variable, and which may be paid on a current-interest-rate basis or a capital-appreciation basis. 5. The date or dates that the bonds will be payable. 6. The denominations, form, and registration privileges of the bonds. 7. The manner of execution of the bonds. 8. The place or places the bonds are payable. 9. The terms of redemption of the bonds. 10. Any other terms and conditions the city considers necessary. B. The bonds may be sold at either a public or private sale, on either a negotiated or competitive basis, and at a price at, above, or below the par value. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.070 Application of proceeds of bonds.

3.154.070 Application of proceeds of bonds. The proceeds of the bonds must be applied to the purposes authorized by section 3.154.040. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.080 Issuing instrument.

3.154.080 Issuing instrument. An issuing instrument may contain any lawful provisions the city council authorizes or determines to be reasonable and proper. In the discretion of the city council, any bonds issued under this chapter may be secured or evidenced by an issuing instrument in the form of an indenture or a trust agreement between the city and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.090 Insurance or credit enhancement or liquidity support.

3.154.090 Insurance or credit enhancement or liquidity support. The city treasurer may obtain bond insurance or other credit enhancement or liquidity support for the bonds and may enter into any credit agreement, reimbursement agreement, standby bond-purchase agreement, or similar agreement with any person or entity. Such an agreement must contain the terms of the credit, reimbursement, liquidity support, interest rate, and security, and any other terms the city treasurer considers necessary or appropriate. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.100 Bonds and investments; contracts to place on an interest-rate, cash-flow, or other basis.

3.154.100 Bonds and investments; contracts to place on an interest-rate, cash-flow, or other basis. A. In connection with, or incidental to, the issuing or carrying of bonds, or the acquiring or carrying of any investment or program of investment with respect to bonds, the city treasurer may, on the city's behalf, enter into any contracts that he or she determines to be necessary or appropriate to place the obligation or investment of the city (as represented by the bonds, investment, or program of investment) and the contract or contracts, in whole or in part, on the interest-rate, currency, cash-flow, or other basis he or she desires, including the following: 1. Contracts commonly known as interest-rate-swap agreements, currency-swap agreements, forward-payment-conversion agreements, and futures. 2. Contracts providing for payments based on levels of, or changes in, interest rates, currency-exchange rates, or stock or other indices. 3. Contracts to exchange cash-flows or a series of payments. 4. Contracts to hedge payment, currency, rate, spread, or similar exposure, including interest-rate floors or caps, options, puts, and calls. B. The city treasurer may also enter into these contracts in connection with, or incidental to, entering into or maintaining any agreement that secures bonds. C. These contracts must contain the payment, security, default, remedy, and other terms the city treasurer determines to be appropriate. When determining the terms of, and the other parties to, these contracts, the city treasurer shall give due consideration to the creditworthiness of the other parties, including any ratings of the parties by a nationally recognized rating agency. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.110 Investment of proceeds.

3.154.110 Investment of proceeds. In connection with, or incidental to, the issuing or carrying of bonds, the city treasurer may, on the city's behalf, enter into investment agreements, forward-purchase agreements, and other investments relating to the investment of amounts held according to an issuing instrument. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.120 Personal liability.

3.154.120 Personal liability. Neither the members of the city council; nor the city's officers, employees, and agents; nor any person executing bonds will be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuing or incurring of the bonds. (Ord. 2018-0041 § 2)

Sacramento City Code § 3.154.130 Refunding bonds.

3.154.130 Refunding bonds. The city council may issue bonds to refund outstanding bonds issued under this chapter and to refund other obligations, including bonds, notes, loans, interim certificates, debentures, installment-purchase agreements, and leases, that were incurred to finance capital-improvement costs. Such a refunding includes payment of the principal, purchase price, interest, redemption premiums (if any) of the outstanding bonds or other obligations, carrying costs associated with any refunding escrow, and applicable costs of issuance. At the discretion of the city council, based on the city treasurer's recommendation, the proceeds of bonds issued to refund such outstanding bonds or other obligations may be applied to the retirement of the outstanding bonds or other obligations at maturity or to the redemption (on any redemption date) or purchase of the outstanding bonds or other obligations before maturity, upon such terms as the city council authorizes or determines to be appropriate. (Ord. 2021-0004 § 3; Ord. 2018-0041 § 2)

Source: City of Sacramento, Sacramento City Code (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/sacramentoca/latest/sacramento_ca/0-0-0-8748Fetched: 10/24/2026