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 taxpaying voters 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 the 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 laws 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, mortgage, bond or document desired or necessary for the issuance of revenue bonds and the acquisition and operation of any such property or interest.
(Ordinance 2020-35, prop. KK, adopted 11/10/20)
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 as provided by general law.
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.
(Ordinance 910, sec. 1, adopted 5/11/99; Ordinance 2020-35, prop. OO, adopted 11/10/20)
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 council shall keep, or cause to be kept, for and on behalf of the city a complete financial record of all bonds and certificates of indebtedness issued, the date and amount thereof, the rate of interest, maturity, etc., of all bonds or other indebtedness surrendered and all other transactions of the council having reference to the refunding of the indebtedness of said city. When bonds or their coupons are paid, their payment or cancellation shall be noted in said financial record. Said record shall be maintained and updated on a contemporaneous basis and shall be audited at the close of each fiscal year as provided for in section 3.13.
(Ordinance 910, sec. 1, adopted 5/11/99)
Any officer of the city who shall wilfully or knowingly divert or use any funds arising from the issuance of any bonds or any sinking fund for any other purpose, except that for which the funds is created or is herein otherwise authorized, shall be deemed guilty of a misapplication of public funds and be subject to prosecution as provided under the laws of the state for the diversion and conversion of funds belonging to any of the municipalities of the state.