Rules for issuing community facility district bonds

(a) Whenever the council deems it necessary or appropriate that community facilities district bonds be issued to finance the costs of any facility or facilities or to reimburse costs thereof previously paid, at or after adoption of an ordinance of formation or special tax ordinance levying special taxes with respect to such facilities, the council may authorize the issuance of bonds by ordinance. The ordinance may provide for: (1) The issuance of the bonds in one or more series; (2) The date the bonds shall bear; (3) The maturity date or dates of the bonds which shall not be more than forty years after the issuance date of the bonds; (4) The rate or maximum rate of interest on the indebtedness, which shall not exceed the maximum rate permitted by law, and which may be fixed or variable and may be simple or compound; (5) The time or times at which interest shall be payable; (6) The denomination of the bonds; (7) The form of the bonds; (8) The conversion or registration privileges carried by the bonds; (9) The rank or priority of the bonds; (10) The manner of execution of the bonds; (11) The medium of payment of the bonds; (12) The place or places of payment; (13) The terms of redemption and the redemption price or prices to which the bonds are subject; SPECIAL IMPROVEMENT FINANCING BY COMMUNITY FACILITIES DISTRICTS § 32-57 (14) The pledge or assignment of all or part of the special taxes levied on property in the district or improvement area thereof, the liens securing such special taxes, proceeds of the bonds and any other funds which are intended by the council to secure payment of the bonds, which pledge shall be a first and exclusive lien, superior to all other claims (except to the extent otherwise provided in the ordinance); (15) The establishment and handling of a separate special fund or funds to pay or secure the bonds or to pay for the facilities or incidental expenses; (16) The investment of proceeds of the bonds and any other funds (including special taxes) pledged to secure payment of the bonds in any obligations permitted by the ordinance; and (17) Any other provisions for the issuance, payment, security, credit enhancement, interest rate swaps, handling of funds, default, remedies, and other matters related to the bonds which the council deems appropriate. (b) The ordinance may provide that any or all of the terms listed in this section or elsewhere in this article may be fixed by or set out in, within parameters provided in the ordinance, a certificate signed by the director at or prior to the delivery of the bonds and the receipt of payment therefor or in an indenture, trust agreement or fiscal agent agreement between the County and a corporate trustee or fiscal agent located within or without the State. (c) The principal amount of bonds issued and outstanding for a district pursuant to this article shall not exceed one-third of the value of the real property upon which a special tax is levied for payment of the debt service on the bonds. The “value of the real property” shall be the fair market value of the land and special improvements to be constructed within or financed by the district, as evidenced by an appraisal of the subject property made by a certified general real property appraiser who is a Member of the Appraisal Institute (MAI) or a reasonably comparable professional organization of real property appraisers. Notwithstanding the foregoing, such requirement shall not apply if the council finds and determines by a vote of not less than two-thirds of its members that the proposed bond issue will assist materially in promoting significant public policies, programs or initiatives of the County. (1994, ord 94-77, sec 3; am 2007, ord 07-146, sec 5.)32-57