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.