The City of El Campo shall have the right and power to borrow money on the credit of the city for permanent public improvements or for any other public purpose consistent with the constitution and laws of the State of Texas. The city shall also have the power to borrow money against the revenues of any municipally-owned utility and to mortgage the physical properties of such utilities in payment of such debt. In no event, however, shall revenue bonds be considered an indebtedness of the City of El Campo nor repaid with funds secured by taxation.
The city shall authorize the issuance of bonds by a bond ordinance passed by an affirmative vote of a majority of all members of the City Council, and approved by a majority of the qualified voters voting at an election called for the purpose of authorizing the issuance of such bonds. The bond ordinance shall provide for proper notice, the calling of the election, and the propositions to be submitted. The latter shall distinctly specify:
(1) 
The purpose for which the bonds are to be issued and, where possible, the probable period of usefulness of the improvements for which the bond funds are to be expended.
(2) 
The amount thereof.
(3) 
The rate of interest.
(4) 
The levy of taxes sufficient to pay interest and sinking fund.
(5) 
That the bonds to be issued shall mature serially within a given number of years not to exceed twenty-five (25).
The bond ordinance and the manner of conducting the election shall in all respects conform to the general laws of this State and the provisions of this Charter.
All bonds shall be serial bonds and shall specify for what purpose they are issued. Such bonds shall never draw interest in excess of ten percent (10%) per annum and shall never be sold at less than par value and accumulated interest, exclusive of commissions. All bonds shall contain a redemption provision making them callable at the option of the city upon or after the expiration of fifteen (15) years from the date of issuance, or such redemption provision may be for a lesser period than fifteen (15) years if such provision will not materially affect their marketability or a favorable rate of interest.
All bonds of the city, after having been authorized and issued in accordance with the provisions of this Charter and the laws of the State, shall be advertised once a week for two (2) consecutive weeks, the first publication to be at least fourteen (14) days prior to the time set for the sale, and shall be sold at public sale for the best bid, either at auction or upon sealed bids, and upon such other terms and conditions not inconsistent with express provisions of law and of this Charter, as the City Council may order. The City Council shall have the right to reject any or all bids.
The ordinance authorizing any bonds to be issued shall provide for the creation of a sinking fund sufficient to pay the bonds or warrants at maturity, and make provision for the payment of the interest thereon as it matures, and any money in any sinking fund or any general fund may be invested in bonds of the State of Texas, or in securities of the United States, or such funds may be used for the purchase of the bonds or warrants of the City of El Campo which are not yet due; provided, however, that the price paid for said bonds or securities shall not exceed the market value at the time of purchase and the accrued interest provided for in said bonds or securities, and provided further that no such bonds or securities shall be purchased which, according to their terms, mature at a date subsequent to the time of maturity of the bonds for the payment of which such sinking fund was created. Neither interest nor sinking fund shall be devoted to any other purpose whatsoever.
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 El Campo 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 therefor shall be joint and several.
In no instance may the proceeds of any bonds be diverted to any other purpose other than that called for in the bond ordinance, without first properly calling and holding an election, stating the disposition to be made, and receiving an affirmative vote of a majority of the qualified voters voting at said election for the proposition.