What is the primary purpose of a bond ordinance?

The primary purpose of a bond ordinance is to provide a framework for authorizing the issuance of municipal bonds or notes, and as part of that process, it outlines the estimated costs associated with these bonds or notes. This includes specifying the amount of money that will be borrowed, the expected interest rates, and how the proceeds will be used. By detailing these financial aspects, the bond ordinance ensures that both the governing body and the public are informed about the financial obligations being undertaken and the intended expenditures of the funds raised.

The other options, while related to municipal finance, do not capture the core function of a bond ordinance. Amending the capital budget, for example, may occur in conjunction with bond issuance but is not its primary focus. Issuing assessment searches pertains more to property assessments rather than the issuance of bonds. Defining the period of usefulness does relate to bond ordinances in the sense that it might include projections about how long the funded projects will benefit the municipality, yet it is not the main purpose of the ordinance, which is primarily concerned with the financial implications and authorization for borrowing funds.