§ 2-8-4. CONTRACT FOR REAL PROPERTY TRANSACTION; CERTIFICATES OF OBLIGATION.

(A)

The city council may execute, perform, and make payments to a person under a contract to use, acquire, or purchase real property. The city council shall determine the appropriate terms and conditions for a contract under this section, including a lease, a lease with an option or options to purchase, an installment purchase, or other form.

(B)

A contract in which the council retains a continuing right to terminate at the expiration of each budget year during the contract term is a commitment of the City's current revenues only.

(C)

The council may authorize the payment of interest on unpaid contract amounts at a fixed or variable rate, a prepayment provision, a termination penalty, and other appropriate provisions.

(D)

The city council may authorize the issuance of certificates of obligation in conjunction with the execution of a contract by a majority vote of five members of the city council. Before the council authorizes the issuance of certificates of obligation under this section, the city council shall:

(1)

at a regularly scheduled public meeting, give notice of the proposed issuance of the certificates of obligation, including the details of the real property acquisition and an appraised value determined by an independent appraisal; and

(2)

schedule a public hearing on the proposed issuance of the certificates of obligation to be held at regularly scheduled public meeting not earlier than seven days after the meeting at which notice is given under Paragraph (1).

(E)

Not later than the seventh day after a public hearing under Subsection (D) and after five members of the city council approve the issuance of certificates of obligation, a person may file a sworn statement with the city clerk indicating the person's intent to contest the issuance of the certificates of obligation through the collection of signatures for a petition for referendum on the authorization to issue certificates of obligation.

(F)

If a sworn statement under Subsection (E) is not filed during the period prescribed in Subsection (E), the city council may authorize the execution of the contract, funded by the issuance of certificates of obligation.

(G)

If a statement is filed as prescribed in Subsection (E), on or before the 30th day after the date the statement of contest was filed, the person who filed must acquire signatures on the referendum petition from not fewer than five percent of the qualified voters of the City.

(H)

On or before the 15th day after the signed referendum petition is filed, the city clerk shall examine the petition to determine if the petition includes the requisite number of signatures. The city clerk shall certify receipt of a valid petition to the council.

(1)

If the city clerk finds the number of signature on the petition to be insufficient, the clerk shall notify the person filing the petition that the petition may be amended with a supplementary petition not later than the tenth day after the date of the notice. If a supplementary petition is filed, the clerk shall examine the amended petition and may certify it if it includes the requisite number of signatures.

(2)

If a petition is certified by the city clerk, the city council may:

(a)

terminate the contract including the certificates of obligation; or

(b)

call an election on the issuance of certificates of obligation to be held not earlier than the 45th day or later than the 90th day after the date the petition was certification to the council.

(I)

If a referendum petition is certified under Subsection (H), the city council may not proceed with a contract for the acquisition of real property including issuance of certificates of obligation until after an election approving the use of certificates of obligation.

Source: 1992 Code Section 5-1-5; Ord. 031204-9; Ord. 031211-11.