§ 6-8. Bonds; issuance; limitations.

Except as otherwise provided in the Charter of Sterling, no bonds or other evidences of indebtedness payable in whole or in part from the proceeds of ad valorem property taxes or to which the full faith and credit of the municipal government are pledged (excluding local improvement district bonds guaranteed pursuant to the provisions of section 8-9), shall be issued for any purpose except pursuant to an ordinance authorizing the same, which ordinance shall be irrepealable until the indebtedness therein provided for, and the bonds or other obligations issued in pursuance thereof, shall have been fully paid. Such bonds or such other evidences of indebtedness of each issue or series shall be payable serially in annual installments, but the first installment may become due within any time not exceeding three (3) years from the date of such obligations, and, further, such obligations may be subject to prior redemption at the city's option upon such terms and conditions as the council may determine. No such bonds or such other evidences of indebtedness shall be issued unless the question of issuing such bonds or such other evidences of indebtedness shall have been submitted to a vote of the qualified electors of the city, and a majority of those voting upon the question by ballot shall have voted in favor of issuing such bonds or other evidences of indebtedness.

Refunding bonds may be issued by ordinance only, provided, however, that the bonds to be refunded can be refunded at a lower rate of interest, and provided further that in no case shall the amount of such bonds to be refunded be increased nor the life of the same be extended.

The city shall not become indebted for any purpose or in any manner in an amount which, including existing indebtedness, shall exceed three (3) percent of the actual valuation of the taxable property within the city, as shown by the last preceding assessment for city purposes; but in any determination of the limitation of the city's power to incur indebtedness there shall not be included bonds issued for the acquisition or extension of a water supply, public utilities, enterprises, works or ways from which the city will derive a revenue, nor local improvement district bonds, nor revenue bonds or other obligations which do not constitute an indebtedness.

The director of finance shall see that all proper provisions for the protection of the city's interests are included in all bonds or other obligations issued, and that the term of bonds or other obligations shall be limited to such extent only as shall be required to meet the indebtedness covered thereby. He shall see that all bonds or other obligations are retired as soon as possible.

(Ord. No. 6-1955, § 1, 6-14-55, election 8-16-55; Ord. No. 13-1972, § 3, 11-14-72, election 1-16-73)