(1) For the purpose of paying all or such portion of the cost of any improvement constructed under this part 5 as may be assessed against the property specially benefited, special assessment bonds of the municipality may be issued of such date, in such form, and on such terms, including, without limitation, provisions for their sale, payment, and redemption, as may be prescribed by the governing body, bearing the name of the street, alley, or district improved and payable in a sufficient period of years after such date to cover the period of payment provided and in convenient denominations. All such bonds shall be issued upon estimates approved by the governing body, and the municipal treasurer shall preserve a record of the same in a suitable book kept for that purpose. All such bonds shall be subscribed by the mayor, countersigned by the municipal treasurer, with the corporate seal thereto affixed, and attested by the clerk. Such bonds shall be payable out of the moneys collected on account of the assessments made for said improvements, from reserve accounts, if any, established to secure payment of such bonds, and from any other legally available moneys. Whenever three-fourths of the bonds for an improvement constructed under this part 5 have been paid and cancelled and for any reason any remaining assessments are not paid in time to pay the remaining bonds for the district and the interest due thereon, the municipality may pay, from legally available moneys, the bonds when due and the interest due thereon and reimburse itself by collecting the unpaid assessments due the district. All moneys collected from such assessments for any improvement shall be applied to the payment of the bonds issued until payment in full is made of all the bonds, both principal and interest, or to fund or replenish reserve accounts, if any, established to secure the payment of such bonds. The bonds may be used in payment of the cost of the improvement as specified; or the governing body, upon advertisement published at least once in a newspaper of general circulation in such municipality and in such other newspapers as may be designated by the governing body, may sell a sufficient number of said bonds to pay such cost in cash for the best bid submitted in accordance with the terms of the notice of sale. All bids may be rejected at the discretion of the governing body. In addition, the bonds may be sold on such terms and conditions at a private sale if determined by the governing body to be in the best interests of the municipality.
When all bonds of a district have been paid, any moneys remaining to the credit ofsuch district may be transferred to a special surplus and deficiency fund, and, whenever there is a deficiency in any improvement district bond fund to meet the payment of outstanding bonds for other improvement districts and interest due thereon or to redeem such outstanding bonds in accordance with any estimated redemption schedule used in connection with the sale of such bonds, the deficiency may be paid from the moneys available therefor in the surplus and deficiency fund.
In connection with the issuance of bonds payable solely from special assessments,the governing body of the municipality may provide by ordinance or resolution for the submission of the question of issuing such bonds to the electors eligible to vote on the question. The governing body of the municipality may provide by ordinance or resolution that all registered electors of the municipality shall be eligible to vote on the question or that only electors of the district shall be eligible to vote on the question.
In connection with the issuance of bonds payable from special assessments which areadditionally secured by a pledge of any other funds of the municipality, including the surplus and deficiency fund, the governing body of the municipality may provide by ordinance or resolution for the submission of the question of issuing the bonds to all registered electors of the municipality.
Notwithstanding any other provision of this part 5, bonds issued in accordance withthe requirements of this section may be payable from the assessments levied in one or more improvement districts.
Notwithstanding any other provision of this part 5, any district formed for the purpose of encouraging, accommodating, and financing improvements as authorized in section 31-25-502 (2) may be authorized to issue one or more series of bonds, and bonds of any such district may be payable from the assessments levied pursuant to one or more assessment ordinances.
Source: L. 75: Entire title R&RE, p. 1200, § 1, effective July 1; entire section amended, p. 1281, § 5, effective May 22. L. 77: Entire section amended, p. 1470, § 2, effective June 4. L. 86: Entire section amended, p. 1050, § 13, effective July 1. L. 94: (3) and (4) added, p. 1193, § 95, effective July 1. L. 99: (3) amended, p. 518, § 17, effective April 30. L. 2002: (1) amended and (5) added, p. 274, § 16, effective August 7. L. 2005: (1) amended, p. 775, § 60, effective June 1. L. 2008: (1) amended and (6) added, p. 1305, § 33, effective May 27.
Editor's note: (1) This section is similar to former § 31-25-531 as it existed prior to 1975.
(2) This section was originally numbered as § 31-25-533 in House Bill 75-1089 but was renumbered on revision in 1977 for ease of location.