ISSUANCE OF BONDS

SECTION 42(50). Boise City shall have power and authority to borrow money and issue therefor its negotiable bonds, with negotiable interest coupons attached, not to exceed, at any time, in the aggregate, fifteen (15) percent of the value of all taxable property in the said city, as shown by the last preceding assessment list of said city, for any and all of the following purposes.

1.   To provide for the purchase or construction and maintenance of necessary water works and supplying the same with water, and to provide for lights for streets, public buildings and grounds.

2.   To provide for the laying, constructing, equipment and maintenance of sewers, sewage disposal facilities, and drains.

3.   To provide for the improvement by any means or method, lighting, beautifying, construction and laying out of streets and other highways, and the purchase or condemnation of grounds therefor.

4.   To provide for funding, refunding, purchase and redemption of the outstanding indebtedness of said city, either at this time or at any future time.

5.   To provide for the purchase, construction, establishment and maintenance of hospitals, pest houses and cemeteries, either within or without the corporate limits of said city, and the purchase and acquisition of sites therefor.

6.   To provide for the purchase, improvement, equipment and maintenance of lands for the use of public parks and airports, either within or without the corporate limits of said city.

7.   To provide for the purchase, construction, erection, and maintenance of public buildings and the purchase or condemnation of building sites for the use of said city: provided, that said city may join with the United States or its agencies, the state of Idaho, or Ada County, or any other political subdivision of the state of Idaho, in the purchase, erection, construction and furnishing of a public building or improvement, and acquire sites, and issue bonds for the proportion thereof, which shall be used and utilized by the said city.

8.   To provide for the establishment, equipment and maintenance of a fire department, and for the purchase of suitable and necessary apparatus and buildings, and building sites, for the use thereof, and for all other necessary public improvements.

9.   To provide for acquiring, purchasing, constructing, operating and maintaining gas and electric lighting plants, machinery and appliances, heating and power plants; and for the acquisition, condemnation, purchase, maintenance and operation of any other works, establishment, plants, machinery and things for the use and service of the public and authorized by this Act to be acquired, owned or operated by said city, including the property and plants of any public service corporation taken over, under the terms of any franchise authorized by this Act; and for the purpose of acquiring, purchasing or condemning lands necessary as sites or locations for any of the buildings, plants, utilities, or things which the city is authorized to own or operate.

10.   To provide necessary equipment for any municipal equipment department and for any other general public and municipal purpose whatsoever authorized by the terms of this Act, whether specifically referred to in this section or not, and for the purpose of performing any duties, or discharging any functions or obligations or exercising any power expressly or impliedly included in or conferred by this Act, when so authorized by an election as herein provided for.

Such bonds shall be known as municipal coupon bonds of Boise City, and shall be issued in denominations of not more than one thousand ($1,000.00) dollars and not less than one hundred ($100.00) dollars each, as the mayor and council may determine. Such bonds shall be made payable within twenty (20) years from the date of issue thereof. The bonds must bear interest at such rate not exceeding six (6) percent per annum, as the mayor and council may determine, to be paid semi-annually in each year, at the office of the city treasurer, or at any banking house or trust company in the United States, which may be designated by the mayor and council. Such bonds shall be redeemable at the pleasure of said city at any time after the expiration of ten (10) years from the date of issuance thereof, and each bond must be redeemable in the order it is numbered.

The bonds mentioned in this section must have attached thereto, when negotiated, semi-annual interest coupons covering the interest expressed in the bonds from the date of issuance until paid. Such bonds must be signed by the mayor and attested by the city clerk of the city, and bear the seal of the city, and countersigned by the treasurer thereof, and the coupons attached to such bonds must be signed by the said treasurer. The signature of the treasurer to such coupons may be lithographed. Each coupon must have annexed to the same a number corresponding with the number of the bond, and each bond must state upon its face the amount for which it was issued, and the date of issue, and be made payable to person named or to bearer, and must recite that it is issued by virtue of and in conformity and compliance with the provisions of this Act, and of the constitution and laws of the state of Idaho.

The mayor and council must cause notice to be given by the clerk by publication for at least once in each of two (2) consecutive weeks in the official newspaper of said city of its intention to issue and negotiate such bonds, and invite bidders therefor, and after ascertaining the best terms upon which such bonds can be negotiated, must secure the proper engraving or printing thereof and thereafter have them consecutively numbered, properly prepared and executed. Any and all bids may be rejected, or the bonds may be offered in several lots or blocks; and all bonds may be readvertised and reoffered from time to time, until said bids are procured; when the bonds are executed, they must be, by the city clerk of said city, registered in a public record book, to be kept for that purpose, and therein must be stated the name of the purchaser, and the number, date, and amount of each bond, time, place of payment, rate of interest, number of coupons attached, and any other proper description thereof, for future identification.

Then the mayor and council must direct the city clerk, from time to time, in such amounts as they deem best, to deliver such bonds to the treasurer of said city, and take and file his receipts therefor and charge him therewith; any duties relating to bonds required of said mayor and council may be performed at any meeting thereof, however held. The said treasurer must, under the supervision of the city clerk, deliver such bonds to the purchaser or purchasers thereof, and in no case must such bonds be sold for less than their face or par value, and the accrued interest at the time of delivery. Such bonds may be delivered, in case of funding or refunding, in exchange for or on cancellation of any equal amount of prior indebtedness being funded or refunded, or for cash. All proceedings for the issuance and sale, and the sale of funding or refunding bonds may be had prior to the callable date of bonds to be funded or refunded. All proceeds derived from the sale of such bonds must be applied exclusively to the purposes for which the bonds are issued.

The city treasurer must keep a record of all bonds disposed of, showing their number, rate of interest, date, and amount of sale, and when and where payable, and the name and address of the purchasers, which record must be kept open for the inspection of the public at all reasonable office hours - and he must make detailed statements to the mayor and council or city clerk of all his transactions under the provisions of this section, as often as required.

The mayor and council must, upon the issue of such bonds, by ordinance, direct to be levied, and must thereafter levy annually, upon all taxable property of said city, a sufficient sum to pay the interest on all bonds disposed of under this section, as it falls due, and after such bonds have been issued for a period of ten (10) years, they must levy in addition annually a sufficient sum to constitute a sinking fund for the payment of one-tenth (1/10) of the principal of such bonds. And all such taxes must be levied, assessed and collected as other city taxes, until the bonds so issued are fully paid, including the interest thereon.

The faith, credit and all taxable property within the limits of said city, as they now exist or may hereafter be extended, are and must continue pledged, and the proper officers of said city must continue to assess and collect on all taxable property within the limits thereof, the necessary taxes to pay said bonds and interest as the same become due. Should the tax for the payment of interest on or the principal of bonds issued under the provisions of this section at any time not be collected in time to meet such payment, the money must be paid out of any moneys in the general fund of the city, and the money so used for such payment must be repaid to the fund from which so taken, out of the first moneys paid therein, and a sum, sufficient to cover such deficit shall be levied and collected in the next, or any succeeding year. It shall be the duty of said treasurer, in case of the sale of said bonds, to use the proceeds arising from the sale thereof in payment of the indebtedness described in said ordinance only. Any failure of any officers of said city to comply with any of the provisions of this section shall be termed a misdemeanor, and any such officer shall be fined an amount not exceeding the sum of two hundred dollars ($200.00), or imprisoned in the city jail not exceeding sixty days.

No bond issued under the provision of this charter shall be invalidated, annulled, or set aside on account of any defect, irregularity, omission, informality, failure to comply with the charter, provisions, or other act or thing whatsoever, unless by reason thereof it shall appear to the court that a substantial injury has been or is about to be suffered by the property owners and tax payers of said city, it being the intent of this Act that bond issues shall rest upon the consent of the tax payers, and that credit of the city shall not be injured by the cancellation of securities when issued.

The mayor and council may recite in such bonds that all acts and things requisite to the issue thereof have been duly and regularly performed and fully complied with, and that the same are duly and regularly issued, and, as affecting innocent purchasers, such recitals shall be conclusive.

That in all cases where municipal coupon bonds, which have been issued under any general law in the state of Idaho for any purpose set forth in said general law, have been heretofore or may hereafter be declared invalid or void by any order or decree of court, the mayor and common council of Boise City, Idaho, are hereby authorized and empowered to provide for the reissuance of said bonds in such amounts as will cover the principal and interest due on said bonds declared to be invalid or void.

   ANNOTATIONS:

   Ch. 215 S.L. 1939.

   Boise City National Bank v. Boise City, 15 Ida. 796, 100 Pac. 94.

   Swain v. Fritchman, 21 Ida. 805, 125 Pac. 327.

   Russell v. Boise City, 70 Ida. 199, 214 P.(2) 472.