a)
Borrowing.
The City Council shall have the power, except as prohibited
by law, to borrow money by whatever method it may deem to be in the
public interest.
b)
General
Obligation Bonds and Certificates of Obligation.
The
City shall have the power to borrow money on the credit of the City
and to issue general obligation bonds and certificates of obligation
for permanent public improvements or for any other public purpose
not prohibited by the Constitution and laws of the state of Texas,
and to issue refunding bonds to refund outstanding bonds of the City
previously issued. All such bonds or certificates of obligation shall
be issued in conformity with the laws of the State of Texas and shall
be used only for the purpose for which they were issued.
c)
Revenue
Bonds.
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 the 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 and shall be used only for the
purpose for which issued.
d)
Bonds
Incontestable.
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.
e)
The
procedure for adoption of any ordinance relative to borrowing for
capital improvements shall be:
1)
A copy of the proposed ordinance shall be furnished to (1) each Member
of the City Council, (2) the City Attorney, and (3) any citizen of
the City for inspection upon request to the City Secretary, at least
three (3) days before the date of the meeting at which the ordinance
is to be considered.
2)
Any ordinance relative to borrowing for capital improvements may
be adopted and finally passed at the meeting at which it is introduced.
(Amended May 6, 2017; Amended May 1, 2021)
