Chapter 9 BOND ORDINANCES

Question 1

Authorization of bonds

Answer 1

How a municipality incurs debt to finance capital projects

Question 2

What are the contents of a bond ordinance

Answer 2

Authorization for issuance of obligations
Period of usefulness of the purpose used for
Determination that supplemental debt statement
Expenses included
20 day time limit from date of publication
Capital portion of the budget is amended if the project was not included in budget

Question 3

What is the procedure for adoption of a Bond ordinance

Answer 3

1. First reading
2. CFO submits Supplemental Debt Statement
3. CFO files SDS with the Director of Div of Local Government services
4. Advertise in full or summary in paper 1 week prior to public hearing
5. Post ordinance in the building
6. Down payment required not less than 5% of amount authorized
7. Public hearing at least 10 days after first reading
8. Affirmative vote of 2/3 full membership
9. Publication with estoppel statement

Question 4

Procedure for Local Assessment Improvement Ordinance

Answer 4

1. First reading
2. Title only
3. Final hearing at least 10 days after first reading
4. Roll call vote with affirmative vote of majority members present
5. Advertise in paper 10 days before public hearing
6. Send notice to all affected property owners
7. Send ordinance and supplemental debt statement to DLGS
8. Public Hearing/ Final adoption 10 days after first reading roll call vote 2/3 full membership