The fiscal year of the City of Katy, Texas shall commence on
the first day of October and end on the last day of September for
any and all purposes including taxing and budgeting.
All money received by any department or agency of the City for,
or in connection with, the business of the City shall be paid promptly
into the treasury and shall be deposited with a responsible banking
institution. This institution shall be designated by the Council,
in accordance with such regulations and subject to such requirements
as to security for deposits and interest thereon as may be established
by ordinance. All interest on money belonging to the City shall accrue
to the benefit of the City.
At the close of each fiscal year the Council shall cause an
independent audit to be made of all accounts of the City by a Certified
Public Accountant.
The City of Katy shall be able to borrow monies and execute
all forms of obligations and exercise all rights and powers available
to General Law Cities or Home Rule Cities under the Constitution and
the Laws of the State of Texas and of the United States of America
as they now read and exist, and should these rights and powers be
subsequently enlarged or increased by amendment to said Constitution
or Laws, subsequent to the date of adoption of this Charter, the City
of Katy shall from the date of such amendment possess such additional
rights and powers, including by way of illustration, but not of limitation,
such mechanism of finance as “time warrants.”
It being the intent of this Charter that this provision be liberally
construed in favor of alternate means of financing, that the City
of Katy may thus act in the best interests of the people of this City.
No bonds (other than refunding bonds issued to refund and in exchange of previously issued outstanding bonds) issued by the City shall be sold for less than par value and accrued interest. All bonds of the City having been issued and sold in accordance with the terms of Section
5. of this Article, and having been delivered to the purchasers thereof shall thereafter be incontestable and all bonds issued to refund and in exchange of outstanding bonds previously issued shall, after said exchange, be incontestable.
It shall be the duty of the Council to levy an annual tax sufficient
to pay the interest on and provide the necessary sinking fund required
by law on all outstanding general obligation bonds of the City. The
interest and sinking fund shall be deposited in a separate account
and shall not be diverted to or used for any other purpose than to
pay the interest and principal on such bonds. The sinking fund maintained
for the redemption of any debt may be invested in any interest bearing
bonds of the United States government, the State of Texas, the Counties
of Fort Bend, Harris, Waller or the City of Katy, and the interest
generated from said investments shall be retained in a sinking fund.