The Vermont Statutes Online

Title 24 Appendix : Municipal Charters

Chapter 003 : City of Burlington

Subchapter 009 : RELATED LAWS

• § 421. Issuance of bonds authorized

  In case of any purchase that the City Council may approve and determine to make of any existing electric or gas plant and distribution system and any gas or electric business and the goodwill thereof and any franchises and rights-of-way in connection with such business, said City Council may by ordinance or resolution authorize the issuance of bonds for the purpose of providing funds for such purpose, and for the purpose of constructing improvements and additions to the present electric plant and system of said City and for the integration of the existing system with any system so acquired, and for the payment of all expenses incurred in connection with the issuance of such bonds and the acquisition and construction of such properties. Such bonds shall bear interest at not exceeding six per annum and shall be in such form and tenor and executed in such manner and shall be payable at such time or times as the City Council shall determine and may be made registerable as to principal only, or as to both principal and interest. Such bonds shall state upon their face that they are payable solely from the revenues of the electric light system and gas plant and distribution system of said City, and said bonds 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 electric light plant and system and said gas plant and system, and said bonds shall not be within any statutory limitation upon the power of said City to issue bonds. Said bonds shall be sold at such time or times, and in such manner, and at such price or prices as the City Council may determine. The ordinance or resolution authorizing the issuance of said bonds may contain covenants of the City to protect and safeguard the security and rights of the holders of said bonds, limiting the amount of additional bonds or obligations payable from said revenues that may be issued thereafter and the terms and conditions upon which said additional bonds or obligations may be issued; for the creation of a special fund into which all or any part of said revenues shall be paid and the terms and conditions on which such special fund is to be collected, held, and disposed of; the establishment and maintenance of adequate rates and charges for electric energy and gas, and other services, facilities, and commodities sold, furnished, or supplied by said electric plant and system and gas plant and system; the operation, maintenance, management, accounting, and auditing of the said electric plant and system and gas plant and system; the terms and conditions upon which the properties or any part thereof of said electric plant and system and said gas plant and system may be sold, mortgaged, leased, or otherwise disposed of by the City and the use and disposition of the proceeds of any such sale, mortgage, or lease; the pledging of all or any part of the revenues derived from the operation of said electric plant and system and gas plant and system to the payment of such bonds and the creation of special funds into which payment shall be made from said revenues for the purpose of providing for the payment of the principal of and interest on such bonds, and ample reserve funds therefor, and funds for working capital to be used in the operation of said electric plant and system and gas plant and system, and for renewals and replacements thereto, and such other covenants as may be deemed necessary to ensure a successful and profitable operation of said electric plant and system and said gas plant and system. The provisions of this article and of any such ordinance or resolution authorizing bonds hereunder shall constitute a contract with the holders of such bonds and the provisions thereof shall be enforceable by any owner or holder of such bonds by mandamus or any other appropriate suit, action, or proceeding at law or in equity in any court of competent jurisdiction.