§ 12.44.03. Promissory note.

A.

The city council hereby finds that the signage will have a useful life of more than one-year and that the aggregate principal amount of the note and any other outstanding indebtedness of the city issued pursuant to Amendment No. 78, and the authorizing legislation does not exceed five percent of the assessed value of taxable property located within the city as determined by the last tax assessment.

B.

The issuance of the note in the principal amount of three hundred eighty-seven thousand and five dollars ($387,005.00) is hereby authorized under Amendment No. 78 and the authorizing legislation in order to finance all or a portion of the costs of acquiring and installing the signage. The note shall be dated the date of issuance (the "closing date") and shall bear interest at the rate of 4.40 percent per annum. The note shall be repaid in five annual amortized installments of principal and interest, commencing one-year from the closing date and on the same day of each year thereafter, with the final installment due five years from the closing date. The note shall be subject to prepayment in whole or in part at any time.

C.

The note shall be sold to the purchaser for the purchase price of one hundred (100) percent of par. Interest on the note is not excludable from gross income for federal income tax purposes.

D.

As provided in Amendment No. 78, the annual debt service payments on the note in each fiscal year shall be charged against and paid from the general revenues of the city for such fiscal year. For the purpose of making the annual debt service payments there is hereby, and shall be, appropriated to pay the note an amount of general revenues of the city sufficient for such purposes. The financial director is hereby authorized and directed to withdraw from the general fund, the amounts and at the times necessary to make the annual debt service payments on the note.

E.

The city covenants with the purchaser that it will provide the purchaser with the following information while the note is outstanding:

1.

Not later than ninety (90) days after the end of each fiscal year, financial statements of the city for such fiscal year, and

2.

Not later than December 31 of each year, a budget for the next fiscal year.

F.

The mayor and city clerk, for and on behalf of the city, are hereby authorized and directed to do any and all things necessary to evidence and grant a lien on and security interest in the signage as required by the purchaser to secure the note and to affect the issuance, execution, sale and delivery of the note and the performance of all acts of whatever nature necessary to affect and carry out the authority conferred by this section. The mayor and city clerk are hereby further authorized and directed, for and on behalf of the city, to execute all papers, documents, agreements, certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof.

( Ord. No. 2010-12, §§ 1—6 )