§ 7.20. Debt service funds.

There shall be a general services district debt service fund and an urban services district debt service fund for the amortization of general bonds and urban bonds respectively, including bonds issued prior to the effective date of this Charter by the County of Davidson and the City of Nashville which have been allocated to such districts under the provisions of this article. Such debt service funds shall consist of the cash and securities in the debt service funds for bonds issued by the County of Davidson and the City of Nashville prior to the effective date of this Charter and such funds hereinafter required to be paid into such funds and the interest earned on the investment thereof. The debt service funds for the bonds heretofore issued by the County of Davidson and the City of Nashville shall be transferred to the debt service fund of the district to which such bonds are allocated by this article. Nothing contained herein, however, shall affect any debt service funds for any revenue bonds or other bonds which are required by the proceedings which authorized any bonds to be maintained as separate and segregated debt service funds for such bonds, and such sinking funds shall be transferred to the metropolitan government and segregated and maintained in the manner provided in the proceedings which authorized the issuance of such bonds.

All such debt service funds may be invested only in bonds which are full faith and credit general obligations of the metropolitan government, the State of Tennessee, the County of Davidson, the City of Nashville, the United States of America, or in such securities as may be provided in the proceedings which authorized such bonds.

There shall be included in the annual tax levy ordinances for the general services district and the urban services district, over and above all other taxes assessed therein, a sum sufficient to meet the interest and redemption charges on all tax bonds due or to be paid in the ensuing year and issued for or allocated to such districts respectively, together with a sum sufficient to reimburse the general fund for any appropriation made or to be made therefrom for the payment of any such interest or redemption charges.

All moneys paid into any debt service fund shall be used exclusively for the purchase, retirement or payment of the outstanding bonds for which such debt service funds are created and maintained, and the metropolitan treasurer shall keep a record of all receipts and disbursements of the debt service funds and shall report the same to the mayor and council quarterly in each fiscal year.

Should any levy for debt service fund purposes, except in the case of bonds payable solely from revenues, fail for any reason whatsoever to provide sufficient funds to meet the redemption and interest charges for bonds in any year, sufficient amounts shall be paid from either the general fund of the general services district or the urban services district for such redemption and interest charges, subject to reimbursement from subsequent levies in the general services district or the urban services district, as the case may be.

If either the general services district debt service fund or the urban services district debt service fund shall accumulate a surplus sufficient to retire bonds callable and chargeable to such funds, the metropolitan treasurer, with the approval by resolution of the mayor and council, may purchase any of such bonds at a price not exceeding the redemption price thereof on the next ensuing redemption date or may call for prior redemption any of such bonds on the next ensuing redemption date in the manner provided in the proceedings which authorized the issuance of such bonds.

The metropolitan treasurer shall deduct monthly, or cause to be deducted monthly, the amounts realized from the inclusion in the annual tax levy ordinances of the general services district and the urban services district of the necessary sums in conformity with the subject to the above debt service fund provisions and shall deposit, or cause to be deposited, the same in the metropolitan government depositories to the credit of the appropriate district debt service fund accounts, which funds shall be kept separate and apart from all other funds of the metropolitan government.

All bonds issued prior to the effective date of this Charter by the County of Davidson, and all bonds authorized but unissued by the County of Davidson at the effective date of this Charter and thereafter issued by the metropolitan government, shall be allocated to the general services district and the principal of and interest on such bonds shall be paid from ad valorem taxes or other revenues collected in the general services district.

All bonds issued prior to the filing date of this Charter by the City of Nashville, except for the bonds described in the next paragraph, shall be allocated to the general services district and the principal of and interest on such bonds shall be paid from ad valorem taxes or other revenues collected in the general services district, and it is hereby found and determined that all such bonds were issued to finance all or part of the cost of improvements or properties which render or will render services or benefits to all or substantially all the inhabitants of the general services district. All debt service funds for such bonds shall be transferred to the general services district debt service fund.

The following described bonds issued prior to the filing date of this Charter by the City of Nashville shall be allocated to the urban services district and the principal of and interest on such bonds shall be paid from ad valorem taxes or other revenue collected in the urban services district:

CITY OF NASHVILLE BONDS—URBAN SERVICES DISTRICT

Fire Department

Original Date of Issue	Final Maturity	Principal Outstanding Title of Issue       June 30, 1962
12-4-33	12-1-63	Fire Hall Improvement Bonds of 1933 .....	$ 10,000
6-15-57	6-15-57	Fire Department Improvement Bonds of 1957 .....	85,000
6-15-60	6-15-90	Fire Department Construction, Improvement and Equipment Bonds of 1960 .....	985,000
			_____
		Total .....	1,080,000
		Street, Alley and Sewer
6-1-45	6-1-74	Street, Alley and Sewer Bonds of 1945-A .....	795,000
6-1-45	6-1-74	Street, Alley and Sewer Bonds of 1945-B .....	795,000
6-1-48	6-1-78	Street, Alley and Sewer Bonds of 1948-A .....	795,000
6-1-48	6-1-78	Street, Alley and Sewer Bonds of 1948-B .....	795,000
6-1-48	6-1-78	Street, Alley and Sewer Bonds of 1948-C .....	795,000
6-1-48	6-1-78	Street, Alley and Sewer Bonds of 1948-D .....	795,000
			_____
		Total .....	3,411,000
		Sewers
4-1-26	4-1-66	Sanitary Sewer Bonds of 1925 Series A .....	44,000
11-1-27	11-1-67	Sanitary Sewer Bonds of 1925 Series B .....	65,000
11-1-28	11-1-68	Sanitary Sewer Bonds of 1925 Series C .....	108,000
8-1-29	8-1-69	Lateral Sanitary Sewer Bonds of 1929 .....	77,000
12-4-33	12-1-63	Sewer Extension Bonds of 1933 .....	33,000
9-1-47	9-1-77	Sewer Bonds of 1947 .....	260,000
5-1-53	5-1-93	Sewer Bonds of 1953 .....	420,000
3-1-54	3-1-64	Sewer Construction and Improvement Bonds of 1954 .....	20,000
11-1-54	11-1-85	Sewer Bonds of 1954 .....	770,000
5-1-56	5-1-86	Sanitary Sewer Bonds of 1956 .....	750,000
7-1-58	7-1-78	Airport Sewer Construction Bonds of 1958 .....	220,000
7-1-58	7-1-88	Sanitary Sewer Bonds of 1958 .....	960,000
6-15-60	6-15-90	Sewer and Utility Relocation and Land Acquisition Bonds of 1960 .....	485,000
6-15-61	6-15-00	Sewer Bonds of 1961 .....	5,500,000
			_____
		Total .....	9,709,000
		Capitol Hill
9-1-50	9-1-90	Capitol Hill Improvement Bonds of 1950 .....	775,000
9-1-55	9-1-95	Capitol Hill Improvement Bonds of 1955 .....	2,050,000
			_____
		Total .....	2,825,000
		Waterworks
8-1-29	8-1-69	Water Extension Bonds of 1929 .....	61,000
12-4-33	12-1-63	Waterworks Extension Bonds of 1933 .....	20,000
6-1-45	6-1-74	Waterworks Bonds of 1945-A .....	135,000
6-1-45	6-1-74	Waterworks Bonds of 1945-B .....	135,000
4-1-48	4-1-68	Waterworks Bonds of 1948 .....	70,000
12-1-48	12-1-88	Waterworks Bonds of 1948-A .....	1,525,000
12-1-48	12-1-88	Waterworks Bonds of 1948-B .....	1,525,000
1-1-52	1-1-92	Combined Water and Sewer Bonds of 1952 .....	920,000
			_____
		Total .....	4,391,000
		Miscellaneous
5-1-24	5-1-64	T. C. Railroad Refunding Bonds of 1924 .....	64,000
4-1-42	4-1-64	Public Improvement Repair and Replacement Bonds of 1942 .....	20,000
6-15-57	6-15-77	Garbage Collection and Disposal System Bonds of 1957 .....	107,000
6-15-57	6-15-77	Equipment and Improvements Bonds of 1957 .....	130,000
1-15-60	1-15-90	Urban Renewal Bonds of 1960 Series A-1 .....	1,375,000
1-15-60	1-15-90	Urban Renewal Bonds of 1960 Series A-2 .....	950,000
			_____
		Total .....	2,646,000
		Grand Total .....	$24,062,000

 

Any bonds issued by the City of Nashville after the filing date of this Charter and before the effective date of this charter, and any bonds authorized but unissued by the City of Nashville at the effective date of this Charter and thereafter issued by the metropolitan government, shall be allocated either to the general services district or the urban services district in such manner and amounts as the council shall determine, consistent with the allocation of functions between the general and the urban services districts, and the principal of and interest on such bonds shall be paid from ad valorem taxes or other revenues collected in the district so determined by the council.

Any revenue bonds issued prior to the effective date of this Charter by the County of Davidson or the City of Nashville, and any revenue bonds authorized but unissued by said county or said city at the effective date of this Charter and thereafter by the metropolitan government, shall be payable as to principal and interest from the revenues or other sources and in the manner provided in the proceedings which authorized the issuance of such revenue bonds.

Neither the allocation of bonds to the general services district or the urban services district nor any of the other provisions of this charter shall impair or diminish any of the rights, remedies or security and sources for payment of any of such bonds or revenue bonds issued by the County of Davidson or the City of Nashville prior to the effective date of this Charter, or authorized but unissued by the County of Davidson or the City of Nashville at the effective date of this Charter and thereafter issued by the metropolitan government, and such holders of such bonds or revenue bonds shall have and be entitled to enforce any and all rights, remedies and security and sources for payment granted such holders by the proceedings which authorized the issuance of such bonds or revenue bonds as fully and to the same extent as if this Charter had not been adopted.