City to Borrow Funds of over $4 Million to Pay for Sewer Improvements
At their December 19, 2016 meeting, the City Council will consider “borrowing of funds from the California State Water Resources Control Board” to pay for sewer improvements. The State has approved the loan request.
The Piedmont City Charter states:
SECTION 4.13 TEMPORARY LOANS Money may be borrowed in anticipation of the receipts from taxes during any fiscal year, by the issue of notes, certificates of indebtedness or revenue bonds; but the aggregate amount of such loans at any time outstanding shall not exceed twenty-five (25) percent of the receipts from all taxes during the preceding fiscal year; and all such loans shall be paid out of the receipts from taxes for the fiscal year in which they are issued.
SECTION 4.14 BONDED DEBT LIMIT The City shall not incur an indebtedness evidenced by obligation bonds which shall in the aggregate exceed the sum of twenty (20) percent of total assessed valuation for purposes of City taxation, of all the real and personal property within the City, exclusive of any indebtedness that has been or may hereafter be incurred for the purposes of acquiring, constructing, extending or maintaining municipal utilities, for which purpose a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the State Constitution and of this Charter. No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative votes of a majority of the electors voting on such proposition at any election at which the question is submitted to the electors and unless in full compliance with the provisions of the State Constitution, other State laws and this Charter.
Staff reports:
a. Approval of Installment Agreement # D16-01021
b. Authorization for City Administrator to Execute Documents
c. Approval of Construction Documents
