In keeping with the Constitution of the State of Texas and not contrary thereto, the City of Glenn Heights shall have the power to borrow money on the credit of the City for any public purpose not now or hereafter prohibited by the Constitution and laws of the State of Texas, and shall have the right to issue all tax bonds, revenue bonds, funding and City refunding bonds, time warrants and other evidence of indebtedness as now authorized or as may hereafter be authorized to be issued by cities and ices towns by the laws of the State of Texas.
No bonds, warrants or certificates of indebtedness shall be made and the City shall not become obligated for same, to be used for the operation of the regular administrative and operating budgets of the City of Glenn Heights.
Bonds and warrants of the City of Glenn Heights shall be issued in the manner provided by the general laws of the State of Texas.
No bonds issued by the City of Glenn Heights shall be invalid because they are sold for less than par value and accrued interest. The Council shall have the right to reject any or all bids. In the event the City shall have received authorization for the issue of bonds but shall not have issued said bonds within ten (10) years from the date of voter authorization, such authorization shall become null and void.
It shall be the duty of the Council to levy an annual tax sufficient to pay the interest on and approve 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 in shall not be diverted to or used for any other purpose than to pay the interest and principal on all such bonds issued by the City of Glenn Heights. The sinking fund maintained for the redemption of any debt may be invested in any interest bearing bonds of the United States Government, and/or secured bonds of the State of Texas as may be provided by the laws of this State. City monies may also be deposited in any state or nationally chartered bank in interest bearing accounts.
The City shall have power to borrow money for the purpose of construction, purchasing, improving, extending, or repairing of public utilities, recreational facilities or any other function not now or hereafter prohibited by the general laws of the State, and issue revenue bonds to evidence the obligation created thereby. Such bonds shall be a charge upon and payable solely from the properties, or interest therein acquired and the income therefrom, and shall never be a debt of the City.
Revenue bonds issued by the City may, within discretion of the City Council, be submitted for approval by a majority of qualified voters, voting at an election held for such purpose. The Council shall have authority to provide for the terms and force of any purchase agreement, contract, mortgage, bond or document desired or necessary for the issuance of revenue bonds, and the acquisition and operation of any property or interest.
All bonds, warrants and certificates of indebtedness shall be signed by the Mayor, countersigned by the City Secretary, and sealed with the seal of the City in the manner provided by general law, and shall be payable at such times and place or places as may be fixed, not more than forty (40) years from their date. It shall be the duty of the Mayor, when such bonds are issued, to forward the same to the Attorney General of the State of Texas for approval and for registration by the Comptroller of Public Accounts.
The Director of Finance or other officer of the City designated by the City Council shall keep, or cause to be kept, for and on behalf of the City a complete bond registry and books, showing all bonds, warrants and certificates of indebtedness issued, the date and amount thereof, the rate of interest, maturity, etc., of all bonds or other indebtedness surrendered and other transactions of the Council having reference to the refunding of the indebtedness of said City.