The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for the acquisition of property for permanent public improvements or for any other public purpose not now or hereafter prohibited by the Constitution and laws of the State of Texas. Except for the refunding of bonds previously issued, any proposition to borrow money and to issue such bonds shall first be approved by a majority of the qualified property tax paying voters voting at an election called for the purpose of authorizing the issuance of such indebtedness. The ordinance calling such election and the manner of conducting the election shall conform in all respects to the General Laws of the State of Texas.
The City shall have power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, recreational facilities or facilities for any other self liquidating municipal function not now or hereafter prohibited by any general law of the State, and to 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. All revenue bonds issued by the City shall first be authorized by a majority of the qualified electors voting at an election held for such purpose. The Council shall have authority to provide for the terms and form of any purchase agreement, contract, mort; gage, bond or document desired or necessary for the issuance of revenue bonds and the acquisition and operation of any such property or interest.
No bond issued by the City shall be sold for less than par value and accrued interest. Nor shall any bonds be sold until bids, submitted in response to public advertisement therefore, have been received and considered by the Council. The Council shall have the right to reject any or all bonds.
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 County of Terry, or the City of Brownfield.
Any officer of the City who shall divert or use the interest or sinking funds for any purpose except that for which the fund is created or is expressly authorized to be invested, shall be liable and responsible to the City of Brownfield in the full amount of such diversion and/or use, with lawful interest; and in case such diversion or use is made or participated in by more than one officer of the City the liability and responsibility therefore shall be joint and several.