Vermont § 62 - Council; School Board; not to pledge credit of City; exceptions

§ 62. Council; School Board; not to pledge credit of City; exceptions

• (a) Except as otherwise provided, the credit of the City, except by temporary loans not
  exceeding during any quarter of any fiscal year 25 percent of the taxes assessed upon
  the entire grand list for the fiscal year, and except by emergency loans as provided
  in this section, shall not be pledged by the City Council, or by any officer of the
  City, unless by vote of the legal voters of the City, at a meeting of the City duly
  called for that purpose; provided, however, that the Chief Administrative Officer,
  when authorized and directed by resolution of the City Council, may pledge the credit
  of the City by a temporary loan in anticipation of the receipt of revenue from the
  Airport Department, or the Traffic Division or the Wastewater or Water Divisions of
  the Public Works Department for their ordinary running expenses during times in any
  fiscal year when there are not sufficient funds on hand to the credit of the Airport
  Department or the above-mentioned divisions for the payment of the bills and accounts,
  or sufficient unappropriated funds in the City Treasury from which the accounts may
  be paid pending the receipt of revenues of the division sufficient to pay the bills
  and accounts; and provided further, that the Chief Administrative Officer, when authorized
  by the City Council, may pledge the credit of the City by temporary borrowing in anticipation
  of the receipt of revenue from the Electric Department not to exceed $10 million outstanding
  at any time to provide working capital and liquidity for the Electric Department,
  with the Electric Department to repay the borrowing from available revenues. Temporary
  notes issued hereunder in anticipation of the receipt of the revenue from the Electric
  Department shall mature within two years from the date of issue, and may be renewed
  or refunded by the issue of other notes maturing within a similar period whenever
  such action is deemed expedient. Except as above provided, all temporary loans, except
  loans for the payment of bills and accounts of the Water Division of the Public Works
  Department and the Electric Department and except emergency loans, shall be paid by
  the Chief Administrative Officer from and out of the receipts from the collection
  of the installment of property taxes or other taxes next falling due after the making
  of the loan, and all monies received from the temporary loans, other than for the
  Water Division of the Public Works Department and the Electric Department and other
  than from emergency loans, shall be used to pay the current and ordinary expenses
  of the City, pending the collection of taxes. All temporary loans made to pay the
  accounts and bills of the Water Division of the Public Works Department pending the
  receipt of revenue shall be paid during the fiscal year from the revenues received
  by that Division. Temporary loans under this subsection for the Water Division and
  electric departments shall be general obligations of the City notwithstanding that
  they are primarily payable from the revenues or receipts of the respective Division
  and departments. (b) In case of an emergency demand found and declared to exist by the City Council, the
  City Council may pledge the credit of the City by an emergency loan to meet such demand,
  but such emergency loans shall not exceed in the aggregate during any fiscal year
  40 cents upon the dollar of the entire grand list of said City. All emergency loans
  shall be used for the emergency declared to exist by the City Council, and shall be
  paid by taxation the following fiscal year, the budget for which shall include an
  appropriation sufficient to pay all such emergency loans. (c) The City Council may, during the first five days of the July following the making
  of such emergency loans, assess upon the property grand list a tax or taxes, which
  will be sufficient to pay such loan, which tax shall be in addition to those provided
  for in section 99 hereof, and shall not be included within the tax limitation thereby
  imposed upon taxation for City purposes. (d) The Chief Administrative Officer, when authorized and directed by resolution of the
  City Council, may pledge the credit of the City by means of temporary loans in anticipation
  of the sale of bonds authorized by the legal voters of said City for the payment of
  installments due on the project for which said bonds are to be issued, pending the
  receipt of revenues from the sale of such bonds; provided, however, that the said
  temporary loans shall not exceed 90 percent of the amount so anticipated. Any of such
  loans shall be immediately repaid upon receipt of the proceeds from the sale of the
  said bonds. (e) The Chief Administrative Officer, when authorized and directed by resolution of the
  City Council, may pledge the credit of the City by means of temporary loans for the
  payment of final bills due on any project approved for school State aid construction,
  pending receipt by the City of the final State aid payment, but limited to 90 per
  cent of the amount so anticipated. Any of such loans shall be immediately repaid upon
  receipt of the State aid construction payment. (f)(1) The Chief Administrative Officer, when authorized and directed by resolution of the
  City Council, may pledge the credit of the City by issuing negotiable orders, warrants,
  notes, or bonds in an amount not to exceed in the aggregate $2 million in any fiscal
  year for the purpose of providing working capital and capital improvements, additions,
  and replacements required for the efficient and economical operation of the City and
  its departments, other than the Electric Light Department and the Water and Wastewater
  Divisions of the Public Works Department. If any of such annual borrowing authority
  is used to provide working capital, notes shall be issued in anticipation of the receipt
  of City revenue and shall mature within two years from the date of issue, and may
  be renewed or refunded by the issue of other notes maturing within a similar period
  whenever such action is deemed expedient. If any of such annual borrowing authority
  is used to provide capital improvements, additions, and replacements, the negotiable
  orders, warrants, notes, or bonds issued for such purposes shall be of such denominations,
  payable at such time or times, at such rate of interest, and to be sold and registered
  in such manner and under such terms and conditions as shall be established by resolution
  of the City Council. (2) Notwithstanding the above, however, five per cent of the qualified voters of the City
  may petition for referendum review of the action by the City Council. Any such request
  for referendum review shall be in accordance with and governed by the procedures specified
  in section 63 of this charter for borrowing on behalf of Burlington Electric Department. (3) The Chief Administrative Officer, when authorized and directed by the Board of School
  Commissioners and the City Council, may pledge the credit of the City by issuing negotiable
  orders, warrants, notes, or bonds in an amount not to exceed in the aggregate $2 million
  in any fiscal year for the purpose of providing working capital and capital improvements,
  additions, and replacements required for the efficient and economical operation of
  the School Department. If any of such annual borrowing authority is used to provide
  working capital, notes shall be issued in anticipation of the receipt of school revenue
  and shall mature within two years from the date of issue, and may be renewed or refunded
  by the issue of other notes maturing within a similar period whenever such action
  is deemed expedient. If any of such annual borrowing authority is used to provide
  capital improvements, additions, and replacements, the negotiable orders, warrants,
  notes, or bonds issued for such purposes shall be of such denominations, payable at
  such time or times, at such rate of interest, and to be sold and registered in such
  manner and under such terms and conditions as shall be established by resolution of
  the City Council. The funds raised in any such year from such borrowing shall be used
  for the capital needs of the School District that qualify for the 30 percent State
  of Vermont matching grant. The authorization provided for this addition to the City
  charter shall be considered the voting of funds by the Burlington School District
  as required by 16 V.S.A. § 3448, as the same may be amended from time to time. The amortization of such borrowed
  funds shall be by means of an annual tax on the education grand list in an amount
  sufficient for this purpose, such tax to be in addition to the tax necessary to support
  the education spending portion of the annual budget of the School Department. (Amended 1999, No. M-14 (Adj. Sess.), § 4; 2005, No. M-1, § 2; 2005, No. M-3, § 4, eff. May 12, 2005; 2009, No. M-11, § 3; eff. May 18, 2009; 2011, No. M-12 (Adj. Sess.), § 2, eff. May 3, 2012; 2023, No. M-24 (Adj. Sess.), § 2, eff. May 29, 2024.)