Vermont § 64b - Revenue bonds authorized

§ 64b. Revenue bonds authorized

• (a) The following terms when used in this section shall, unless the context otherwise
  requires, have the following meanings: (1) The term “revenue producing facility” shall mean any building, activity, function,
  or service that any executive officer or department of the City is authorized to construct,
  operate, or carry out and for which the City receives revenue in the form of rent
  admission or use fees, concession fees, or other consideration. Provided, the facilities
  and activities of the Burlington Electric Light Department, the Burlington Water Resources
  Department, and the airport as herein defined shall be excluded from this definition
  of revenue producing facility. (2) The term “airport” shall mean the entire airport now owned by the City, including
  runways, hangars, loading facilities, repair shops, terminals, retail stores in such
  terminals, restaurants, parking areas, and other facilities necessary or convenient
  for the operation of the airport, together with any improvements thereto hereafter
  constructed or acquired. (3) The term “bonds” shall mean any bonds, notes, or obligations of the City issued pursuant
  to this section. (4) The term “City” shall mean the City of Burlington. (5) The term “improvement” shall mean any improvement, expansion, betterment, addition,
  alteration, reconstruction, extraordinary repair, equipping, or reequipping of the
  airport. (6) The term “related laws” shall mean those acts of the Vermont General Assembly that
  are specifically applicable to the City of Burlington and are set out in Part I, Subpart
  B of the Burlington Code of Ordinances but that do not specifically amend sections
  of the Burlington City charter. (7) The term “revenues” shall mean all rates, fees, charges, rents, and other income derived
  from the ownership or operation of a revenue producing facility or of the airport
  and may include, without limiting the generality of the foregoing, investment earnings
  and the proceeds of insurance, condemnation, sale, or other disposition of revenue
  producing facility or airport assets and proceeds of borrowing hereunder. (b) The City is hereby authorized and empowered to improve its revenue producing facilities
  and its airport for the purpose of providing expanded service and facilities to the
  users of such revenue producing facilities and airport. (c)(1) The City is hereby authorized and empowered to issue bonds, from time to time, for
  the purpose of financing the costs of any improvement to a revenue producing facility
  or the airport; provided, however, that no bonds other than refunding bonds shall
  be issued under this section unless and until a majority of the legal voters of the
  City present and voting thereon at any annual or special City meeting duly warned
  for the purpose shall have first voted to authorize the issuance of such bonds. Said
  bonds and the interest thereon shall be payable solely and exclusively from the revenues
  of the revenue producing facility and/or the airport as the case may be and shall
  not constitute general indebtedness of the City nor be an obligation or liability
  upon the City to pay the same from any funds of the City other than the revenues of
  said revenue producing facility or airport. No airport revenues may be pledged or
  payable to support a revenue producing facility, nor may the revenues of a revenue
  producing facility be pledged or payable to support the airport. No owner or owners
  of any bonds issued under this section shall ever have the right to compel any exercise
  of the taxing power of the City to pay said bonds or the interest thereon. Said bonds
  shall not constitute an indebtedness within the meaning of any debt limitation or
  restriction and shall not be within any statutory limitation upon the power of the
  City to issue bonds. It shall be plainly stated on the face of each bond that it does
  not constitute an indebtedness of the City but is payable solely from the revenues
  of the revenue producing facility or of the airport. (2) Bonds issued under this section may be issued in one or more series, may bear such
  date or dates, mature at such time or times both exceeding 40 years from their respective
  dates, bear interest at such rate or rates (whether variable or fixed), be in such
  denominations, be in registered form, have such rank or priority, be executed in such
  manner, be payable in such medium of payment, at such place or places, and be subject
  to such terms of redemption, with or without premium, be declared or become due before
  the maturity date thereof as may be determined or authorized by resolution of the
  City Council. Said bonds may be sold at public or private sale for such price or prices
  as the City Council shall determine. (3) In case any officer of the City whose signature appears on any bond or coupon shall
  cease to be such officer before the delivery of such bond, such a signature shall,
  nevertheless, be valid and sufficient for all purposes, the same as if he or she had
  remained in office until such delivery. Any provision of any law to the contrary notwithstanding,
  any bonds issued pursuant to this section shall be deemed to be investment securities
  under the Uniform Commercial Code. Any bonds issued by the City pursuant to the provisions
  of this section are declared to be issued for an essential public and governmental
  purpose and to be public instrumentalities, and, together with interest and income
  thereon, shall be exempt from taxes. The resolution authorizing the issuance of said
  bonds may provide that the bonds shall contain a recital that they are issued pursuant
  to this section, which recital shall be conclusive evidence of their validity and
  of the regularity of their issuance. (d) In order to secure the payment of any of the bonds issued pursuant to this section,
  the interest thereon, or in connection with such bonds, the City shall have power
  as to such bonds, to the extent not inconsistent with the mandatory provisions of
  this section: (1) to pledge all or any part of the revenues derived from the revenue producing facility
  to secure payment of bonds issued for a revenue producing facility or from the airport
  to secure payment of bonds issued for the airport; (2) to provide for the terms, forms, registration, exchange execution, and authentication
  of such bonds; (3) to provide for the replacement of lost, destroyed, or mutilated bonds; (4) to covenant as to the use and disposition of the proceeds from the sale of such bonds
  and as to the use and disposition of revenues, including, without limiting the generality
  of the foregoing, the establishment of reserves for debt service of other capital
  or current expenses from bond proceeds or revenues or both; (5) to covenant as to the rates, charges, and rents of the revenue producing facility
  or airport, provided that the City shall always collect revenues adequate at all times
  to provide for the proper operation and maintenance of the revenue producing facility
  or airport and for the payment of the principal of and interest on all bonds payable
  from said revenues and all other required payments in connection therewith; (6) to redeem such bonds, and to covenant for their redemption, and to provide the terms
  and conditions thereof; (7) to covenant and prescribe as to what happenings or occurrences shall constitute “events
  of default” and the terms and conditions upon which such declaration and its consequences
  may be waived; (8) to covenant as to the rights, liabilities, powers, and duties arising upon the breach
  by it of any covenant, conditions, or obligations; (9) to vest in a trustee or trustees the right to receive all or any part of the income
  and revenue pledged and assigned to, or for the benefit of, the owner or owners of
  bonds issued hereunder, and to hold, apply, and dispose of the same and the right
  to enforce any covenant made to secure or pay the bonds or made in relation to the
  bonds; to execute and deliver a trust agreement or trust agreements that may set forth
  the powers and duties and the remedies available to such trustee or trustees and limiting
  the liabilities thereof and describing what occurrences shall constitute “events of
  default” and prescribing the terms and conditions upon which such trustee or trustees
  or the owner or owners of bonds of any specified amount of percentage of such bonds
  may exercise such rights and enforce any and all such covenants and resort to such
  remedies as may be appropriate; (10) to make covenants other than, and in addition to, the covenants herein authorized,
  of like or different character, necessary or advisable to effectuate the purposes
  of this section; (11) to execute all instruments necessary or convenient in the exercise of the powers herein
  granted or in the performance of its covenants or duties. (e)(1) Any pledge hereunder shall be valid and binding and shall be deemed continuously perfected
  from time to time when the pledge is made; unless otherwise provided in the resolution
  making the pledge, the pledge of revenues shall include any contract or other rights
  to receive the same, whether then existing or thereafter coming into existence and
  whether then held or thereafter acquired by the City, and the proceeds thereof; the
  revenues, rights and proceeds so pledged and then held or thereafter acquired by the
  City shall immediately be subject to the lien of such pledge without any physical
  delivery or segregation thereof or further act; and the lien of any such pledge shall
  be valid and binding as against the City, irrespective of whether such parties have
  notice thereof. The resolution by which a pledge is made need not be filed or recorded
  except in the records of the proceedings of the City Council and no filing need be
  made under the Uniform Commercial Code. (2) A resolution pledging revenues hereunder may provide for priorities among payments
  to be made from such revenues, whether required by statute, the City charter, such
  resolution, or otherwise. The pledge may include revenues otherwise accruing to particular
  funds established by statute or the City charter. In the event bonds are issued junior
  and subordinate to other bonds, revenues remaining from time to time that are permitted
  by the terms of the senior bonds to be used to pay or secure the junior bonds may
  be pledged for that purpose by the resolution under which the junior bonds are issued.
  A pledge of revenues under this section shall constitute a sufficient appropriation
  thereof for the purpose of any provision for appropriation and such revenues may be
  applied as required by the pledge without further appropriation. (f) The City may issue refunding bonds for the purpose of paying any of its bonds issued
  hereunder at maturity or upon acceleration or redemption. The refunding bonds may
  be issued at such time prior to the maturity or redemption of the refunded bonds as
  the City deems to be in the public interest. The refunding bonds may be issued in
  sufficient amounts to pay or provide the principal of the bonds being refunded, together
  with any redemption premium thereon, any interest accrued or to accrue to the date
  of payment of such bonds, the expenses of issue of the refunding bonds, the expenses
  of redeeming the bonds being refunded, and such reserves for debt service or other
  capital or current expenses from the proceeds of such refunding bonds as may be required
  by a resolution under which bonds are issued. The issue of refunding bonds, the maturities
  and other details thereof, the security therefor, the rights of the owners thereof,
  and the rights, duties, and obligations of the City with respect thereto shall be
  governed by the provisions of this section relating to the issue of bonds other than
  refunding bonds insofar as the same may be applicable. (g) Unless otherwise provided in the authorizing proceedings, if bonds are authorized
  under this section, temporary notes may be issued in anticipation thereof. The City
  Council may delegate the sale (but not the authorization) of temporary notes to an
  officer or officers of the City. The principal of and interest on notes may be renewed
  or paid from time to time by the issue of other notes. Except as otherwise provided,
  notes issued under this subsection shall be governed by the provisions of this section
  relating to bonds insofar as the same may be applicable. (h) Except as otherwise permitted by this section, all monies received from the issue
  of bonds for improvements to revenue producing facilities or for airport improvements
  (other than refunding bonds) shall be used solely to defray the cost of improving
  the revenue producing facility or the airport of the City as the case may be. The
  cost of improving shall include all costs of improvement, including all preliminary
  expenses, the cost of acquiring all property, franchises, easements, and rights necessary
  or convenient therefor, engineering and legal expenses, expenses for estimates of
  costs and revenues, expenses for plans, specifications, and surveys, other expenses
  incident or necessary to determining the feasibility or practicability of a project,
  administrative expenses, interest prior to and during the carrying out of any project
  and for a reasonable period thereafter, such reserves for debt service or other capital
  or current expenses as may be required by the resolution under which the bonds are
  issued, and such other expenses as may be incurred in the financing herein authorized,
  the improvement of the revenue producing facility or the airport, the placing of an
  improvement in operation, including the creation of cash working funds, and the performance
  of the things herein required or permitted in connection therewith. (i) Any owner or owners of bonds, and a trustee or trustees for holders of such bonds
  shall have the right in addition to all other rights. (1) By mandamus or other suit, action, or proceedings in any court of competent jurisdiction
  to enforce his or her or their rights against the City, the City Council and any other
  proper officer, agent, or employee of any of them, including the right to require
  the City, the City Council, and any proper officer, agent, or employee of any of them,
  to fix and collect rates, charges, and rents adequate to carry out any agreement as
  to, or pledge of revenues, and to require the City, the City Council, and any officer,
  agent, or employee of any of them to carry out any other covenants or agreements and
  to perform its and their duties under this section; (2) By actions or suit in equity to enjoin any acts or things that may be unlawful or
  a violation of the rights of such holder of bonds. (j) The City shall have power by resolution of its City Council to confer upon any owner
  or owners of a specified amount or percentage of bonds, including a trustee or trustees
  for such owners, the right in the event of an “event of default” as defined in such
  resolution or as may be defined in any agreement with the owner or owners of such
  bonds or the trustee or trustees therefor: (1) By suit, action, or proceedings in any court of competent jurisdiction to obtain the
  appointment of a receiver of the revenue facility or the airport as applicable or
  any part or parts thereof. If such receiver be appointed, he or she may enter and
  take possession of such revenue producing facility or airport or any part or parts
  thereof and operate and maintain the same, and collect and receive all revenues thereafter
  arising therefrom in the same manner as the City itself might do and shall deposit
  such monies in a separate account or accounts and apply the same in accordance with
  the obligations of the City as the court shall direct. (2) By suit, action, or proceeding in any court of competent jurisdiction to require the
  City to account as if it were the trustee of an express trust. Any such resolution
  shall constitute a contract between the City and the owners of bonds of such issue. (k) The powers conferred by this section shall be in addition and supplemental to the
  power conferred by any other law or by any other section of this City charter or the
  related laws of the City. Bonds may be issued hereunder for the improvement of a revenue
  producing facility and/or the airport, notwithstanding that any other law may provide
  for the issuance of bonds for the like purpose and without regard to the requirements,
  restrictions, or procedural provisions contained in any other law. Nothing in this
  section shall be construed to preclude the City from issuing general obligation bonds
  or notes in accordance with applicable law to finance improvements to a revenue producing
  facility or to the airport. Such financing shall not be governed by the provisions
  of this section. It shall not be necessary for the City proceeding under this charter
  to obtain a certificate of convenience or necessity, franchise, license, permit, or
  other authorization or approval from any bureau, board, commission, or other instrumentality
  of the State of Vermont or the City for the issuance of bonds hereunder except as
  expressly provided in this section. (l) This section is remedial in nature and the powers hereby granted shall be liberally
  construed to effectuate the purposes hereof, and to this and the City shall have power
  to do all things necessary or convenient to carry out the purposes hereof in addition
  to the powers expressly conferred in this section. (m) It is hereby declared that the subsections, clauses, sentences, and parts of this
  section are severable, are not matters of mutual essential inducement, and any of
  them shall be exscinded if this section would otherwise be unconstitutional or ineffective;
  it is the intention to confer upon the City the whole or any part of the powers in
  this charter provided for, and if any one or more subsections clauses, sentences,
  and parts of this section shall for any reason be questioned in any court, and shall
  be adjudged unconstitutional or invalid, such judgment shall not affect, impair, or
  invalidate the remaining provisions thereof, but shall be confined in its operation
  to the specific provision or provisions so held unconstitutional or invalid, and the
  inapplicability or invalidity of such subsection, clause, sentence, or part of this
  section in any one or more instances shall not be taken to affect or prejudice in
  any way its applicability or validity in any other instance. (n) The powers granted to the City hereunder shall be exercised by its City Council. No
  provisions hereof shall be deemed to permit the exercise or any power in violation
  of the rights of bonds or note owners.