The Council shall have the power to incur, create, refund and
refinance indebtedness and borrow money for public purposes; to issue
special or general obligation bonds, revenue bonds, funding and refunding
bonds, time warrants and other evidences of indebtedness and to secure
and pay the same in the manner and in accordance with the procedures
provided and required by state law.
The City shall have the power to borrow money on the credit
of the City and to issue general obligation bonds for permanent public
improvements or for any other public purpose not prohibited by law
and this Charter and to issue refunding bonds to refund outstanding
bonds previously issued. All such bonds shall be issued in conformity
with the laws of the State of Texas and shall be used only for purposes
for which they were issued. Any bond, excluding refunding bonds, to
be issued under the provisions of this section shall not be issued
without an election held in accordance with the provisions of state
law.
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 any other self-liquidating
municipal function not prohibited by the Constitution and Laws of
the State of Texas, and to issue revenue bonds to evidence the obligation
created thereby. Such bonds shall be a charge upon and payable from
properties, or interest therein pledged, or the income therefrom,
or both. The holders of the revenue bonds shall never have the right
to demand payment thereof out of monies raised or to be raised by
taxation. All such bonds shall be issued in conformity with the laws
of the State of Texas.
All bonds of the City having been issued and sold and having
been delivered to the purchaser thereof, shall thereafter be incontestable
and all bonds issued to refund in exchange for outstanding bonds previously
issued shall and after said exchange, be incontestable.
In any budget year, the Council may, by resolution, authorize
the borrowing of money in anticipation of the collection of the property
tax for the same year whether levied or to be levied. Notes may be
issued for periods not exceeding one (1) year and must be retired
by the end of the budget year in which issued.
Any and all bond funds approved by a vote of the citizens of
Red Oak will be expended only for the purposes stated in the bond
issue.
All certificates of obligation issued by the City shall be approved
by ordinance and issued in accordance with the laws of the State of
Texas.
No bonds issued by the City 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.