Rules for issuing refunding bonds for district debt

A. The council may authorize the issuance of bonds to refund any or all of the district bonds outstanding that have been issued pursuant to this article. The refunding bonds shall be authorized by a bond ordinance. B. Except as otherwise approved by the council, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded plus the principal amount of the bonds to be refunded. Subject to such limitations, the principal amount of the refunding bonds may be more than, less than, or the same as the principal amount of the bonds to be refunded. The principal amount of such refunding bonds shall not count against any maximum amount of bonds authorized in the original bond ordinance. C. The designated costs of issuing refunding bonds shall be paid from proceeds of the refunding bonds, interest earned on those proceeds, or special taxes from the district. However, any interest or special taxes paid for the designated costs shall be added to the total net interest costs to maturity on the refunding bonds in determining whether the issuance of the refunding bonds complies with subsection B. D. The saving achieved through the issuance of refunding bonds shall be used by the council to reduce: 1. The special taxes levied in the district; or 2. The term of the district within which the special taxes are levied. At the time the council authorizes the issuance of refunding bonds, the council also shall reduce the special taxes levied in or term of the district. The reduction shall be made through an ordinance of consideration. ( Ord. No. 4947 , § 1, 2018)