§ 444.19 — Bonds
Plain-Language Summary
After a storm sewer improvement contract is signed or work is ordered, the city or town can issue bonds to pay for the project. The bonds are paid back mainly from the special tax on properties in the district. The governing body can also pledge the full credit and taxing power of the city or town as a backup guarantee for payment.
444.19 BONDS.
At any time after a contract for the construction of all or part of an improvement has been entered into or the work has been ordered done by day labor, the governing body may issue obligations in an amount it deems necessary to defray in whole or in part the expense incurred and estimated to be incurred in making the improvement, including every item of cost from inception to completion and all fees and expenses incurred in connection with the improvement or the financing thereof. The obligations shall be payable primarily out of the proceeds of the tax levied pursuant to section 444.20. The governing body may by resolution adopted prior to the sale of obligations pledge the full faith, credit and taxing power of the municipality to assure payment of the principal and interest in the event the proceeds of the tax levy in the district are insufficient to pay the principal and interest. Obligations shall be issued in accordance with chapter 475, except that an election is not required, and the amount of the obligations is not included in determining the net indebtedness of the municipality under the provisions of any law or charter limiting such indebtedness.
History:
1974 c 206 s 4; 1Sp1989 c 1 art 17 s 12
History: History: 1974 c 206 s 4; 1Sp1989 c 1 art 17 s 12