The City shall have the power to buy, own, construct, maintain and operate utilities and to manufacture and distribute electricity, gas or anything else that may be needed or used by the public, and shall have such further powers that may now or hereafter be granted under the Constitution and laws of the State of Texas.
All municipally owned utilities shall be operated by the City in such a manner as to be self-sustaining insofar as is practical, and shall not be converted into general revenue producing agencies of the City. The City Council may transfer funds of municipally owned utilities to the general fund of the City, provided, however, that the amount so transferred shall not exceed annually 20% of the gross revenue of said utilities for the previous fiscal year. Such sums so transferred to be in lieu of taxes, street rentals or other contributions to general administrative expenses of the City; provided, however, nothing herein is to apply to the operation of charitable and educational facilities operated by the City. Such transfers shall be made annually and shall be non-cumulative.
Accounts shall be kept for each public utility owned or operated by the City in such manner as to show the true and complete financial results of such City ownership and operation, including all assets appropriately subdivided into different classes, all liabilities subdivided by classes, depreciation reserve, other reserves and surplus; also revenues, operating expenses including depreciation, interest payments, rental and other distribution of annual income. The accounts shall show the actual capital cost to the City of each public utility owned, also the costs of all extensions, additions and improvements and the source of the funds expended for such capital purposes. They shall show as nearly as possible the cost of any service furnished to or rendered by any such utility to any other city or governmental department. The City Council shall annually cause to be made and published a report showing the financial results of such City ownership and operation, giving the information specified in this section and such additional data as the City Council shall deem expedient.
No public utility or park and/or swimming pools owned by the City of Beaumont shall ever be sold or leased for a period longer than five (5) years until such sale or lease is authorized by a majority vote of the qualified voters of the City; nor shall same be encumbered for more than $5,000.00 except for purchase money or to refund any existing indebtedness lawfully created, until authorized in like manner.
When properties named in Section 4 of this Article are to be sold or leased for a period of more than five (5) years or encumbered for more than $5,000.00 as provided in said section, the City Council shall, by ordinance, call an election submitting said proposition to the qualified voters of the City of Beaumont; the time and places of holding the election shall be designated in said ordinance and said election shall be held not less than fifteen (15) nor more than thirty (30) days from the passage of said ordinance. Notice of said election shall be given by posting a copy of said ordinance in each of the election precincts in the City and at the City Hall; such ordinance shall also be published on the same day in each of two (2) successive weeks in a newspaper of general circulation published within the City of Beaumont, the date of the first publication to be not less than fourteen (14) days prior to the date set for the election.
The question to sell, lease or mortgage shall be submitted on ballots which shall describe the property to be sold, leased or mortgaged, and the terms of the sale, lease or mortgage, and shall have printed below the description and terms:
“For the sale (lease) (mortgage)”
“Against the sale (lease) (mortgage)”
No special election shall be called within sixty (60) days of a general municipal election for the submission of a proposition to sell, lease or mortgage such property but same shall be submitted as herein provided at said general election.