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.
a. 
General Obligation Bonds -
The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or for any other public purpose not prohibited by the Constitution and the Laws of the State of Texas and to issue refunding bonds to refund outstanding bonds of the City previously issued. All such bonds shall be issued in conformity with the Laws of the State of Texas.
b. 
Revenue Bonds -
The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, recreational facilities or any other self-liquidating municipal function not prohibited by the Constitution and the Laws of the State of Texas and to issue revenue bonds to evidence the obligation created thereby, and to issue refunding bonds to refund outstanding revenue bonds of the City previously issued. All such bonds shall be issued in conformity with the Laws of the State of Texas.
a. 
No funds of the City shall be expended nor shall any obligation for the expenditure of money be incurred, except in pursuance of the annual or interim period appropriation ordinance provided by this Charter. At the close of each fiscal year any unencumbered balance of an appropriation shall revert to the fund from which appropriated and may be reappropriated by the City Council. The Council may transfer any unencumbered appropriation balance or portion thereof from one office, department, or agency to another.
b. 
The revenues of the water and sewer systems of the City shall be used only for such systems and approved water and sewer bonded indebtedness, and shall not be transferred to any other office, department, or agency for any other purpose.
a. 
Limitation on Borrowing -
The City shall not borrow money and/or issue certificates of obligation created thereby unless first submitted to all of the qualified voters in the City for their approval at an election duly called and held for such purposes with the exception of the borrowing authorized by subsection b. and c. of this Section.
b. 
Borrowing to Meet Emergency Appropriations -
In the absence of unappropriated available revenues or other funds to meet emergency appropriations under the provisions of the preceding Section, the Council may, by resolution, authorize the borrowing of money to meet such deficit by the issuance of notes, each of which shall be designated “Emergency Note” and may be renewals thereof, shall mature and be payable not later than the Last day of the fiscal year in which the emergency appropriation was made, as provided in the last preceding Section.
c. 
Borrowing in Anticipation of Property Taxes -
In any fiscal year, in anticipation of the collection of the ad valorem property tax for such year, whether levied or to be levied in such year, the Council may by resolution authorize the borrowing of money, not to exceed in any fiscal year an amount equal to ten percent (10%) of the budget for that fiscal year. Such borrowing shall be by the issuance of negotiable notes of the City, each of which shall be designated “tax anticipation note for the year,” (stating the tax year.) Such notes shall mature and be payable not later than the end of the fiscal year in which issued and may be secured by the pledge of the ad valorem property taxes for such year.
d. 
Time Warrants.
Time Warrants shall not be subject to the terms of Section 6.
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.