Sec. 122-37. Review and approval of certain actions of title 32 districts.
(a) Generally. When any title 32 district has territory wholly or partially within the City, and where the City is the district's approving authority, the district may elect to be subject to this section and agree to file its proposed and final annual budgets with the finance director, for review in the manner prescribed by the district's service plan, and to submit any proposed tax-advantaged obligations to the city for review and approval in the manner provided in this section. For this purpose the term "tax-advantaged obligations" shall include any obligations of a district, the interest on which is intended to be excludable from gross income for federal income tax purposes, whether or not such exclusion is limited in the case of particular taxpayers, or any obligations of a district that are otherwise intended to be federally tax-advantaged.
(b) Written request requirements. To be subject to this section, the title 32 district shall file with the finance director a written request for classification as a tax-advantaged governmental issuer, which shall be effective upon filing with the finance director and approval by resolution of the council as provided in this section. Such written request shall contain:
(1) An express waiver and indemnity, in the form prescribed by the finance director, with respect to any losses, damages, expenses (including costs of defense) or liabilities incurred by such district, its residents or landowners or developers, as the result of any action or inaction by the City in connection with such request; and
(2) An agreement by the district and/or, in the discretion of the finance director, its principal landowners or developers, to indemnify, save and hold harmless the City, its council members, officers, agents and employees (the "indemnified parties") from all such losses, damages, expenses (including costs of defense) or liabilities incurred by such indemnified parties as a result thereof.
(c) Review. The finance director shall review such written request and notify the title 32 district in writing, within 15 days of submission or resubmission, either:
(1) That such request is incomplete, in which case the district shall have 15 days to supply any additional information requested by the finance director. After 15 days, or when the additional information is provided, whichever occurs first, the request will be referred to the council for their consideration; or
(2) That such request is accepted as complete and will be referred to the council for their consideration.
(d) Approval. The finance director shall cause any written request that has been accepted to be placed on the next available council agenda for action at a regular meeting of the council, and shall make a recommendation to council as to such action. At such meeting, council may, in its discretion, approve such request by resolution. Any such resolution may also include the approval of the service plan of such title 32 district or an amendment thereto.
(e) Post-approval filing requirements. All title 32 districts that have received such approval shall, in the manner prescribed by the district's service plan:
(1) Promptly file each of their proposed and final annual budgets with the finance director; and
(2) File substantially final drafts of the principal financing documents associated with such obligations, including, without limitation, the proposed forms of authorizing resolution, trust indenture, if any, and offering document, if any, together with a written request for the approval of such obligations by the finance director.
(f) Post-approval determination. Upon review of these materials, the finance director is authorized to:
(1) Make objections to or approve the district's annual budget, on behalf of the City, to the extent permitted in the district's service plan; and
(2) Approve the tax-advantaged obligations proposed to be issued.
(g) No obligation. The city shall not incur any debt, indebtedness or multiple fiscal year financial obligation whatsoever as the result of any such approval or disapproval. Any tax-advantaged obligations issued by such title 32 district following such approval, and any offering document used in connection therewith, shall bear a clear and conspicuous notation stating that such securities are not the obligations of the city and that the city has no responsibility for either the payment of such obligations or the state or federal tax treatment of such obligations or the interest thereon. (Ord. No. 2016-02, § 1, 1-25-2016)