(El. of 5-2-1998; El. of 11-5-2013)
(a) 
General obligation and revenue bonds.
The city has the power to borrow money on the credit of the city for permanent public improvements or for any other public purpose not prohibited by the constitution and laws of the state. The city shall also have the power to borrow money against revenues of the facility for the financing of:
(1) 
any municipally-owned utility and to mortgage the physical properties of utilities in payment of the debt; and
(2) 
any other revenue-producing municipally-owned facility.
(b) 
Repayment of revenue bonds.
Revenue bonds are not an indebtedness of the city, and ad valorem taxes may not be pledged for the repayment of revenue bonds without a vote of the citizens at an election called for the purpose.
(El. of 5-2-1998)
(a) 
Approval.
The city shall authorize the issuance of general obligation bonds by ordinance passed by an affirmative vote of a majority of the members of the entire city council and approved by a majority of the qualified voters, voting at an election called for the purpose of authorizing the issuance of the bonds. The bond ordinance shall provide for proper notice, the calling of the election, and the proposition to be submitted. The proposition shall distinctly specify:
(1) 
the purpose for which the bonds are to be issued;
(2) 
the amount of the bonds;
(3) 
the levy of taxes sufficient to pay the principal and interest for retirement of the bonds; and (4) that the bonds will mature within a given number of years not to exceed 40.
(b) 
State law.
The bond ordinance and the manner of conducting the election shall conform to the constitution and general laws of the state.
(El. of 5-2-1998)
The city may issue serial or other type bonds as authorized by state law, and the bonds shall specify for what purpose they are issued. Terms for call provisions and maturity times will be determined at the time of bond issuance based on market conditions.
(El. of 5-2-1998; El. of 11-5-2013)
Bonds of the city, after having been authorized and issued in accordance with the provisions of this Charter and the constitution and laws of the state, may be sold using any of the methods authorized by state law which is determined by the city council to be in the best interests of the city. The bonds may be sold upon such other terms and conditions not inconsistent with state law or this Charter, as the city council may order. In connection with the issuance of bonds, the City may execute any contract upon such terms and conditions not inconsistent with state law or this Charter, as the city council may order to provide additional security for the bonds.
(El. of 5-2-1998)
An ordinance authorizing the issuance of bonds shall provide for the creation of a sinking fund sufficient over time to pay the principal of the bonds at maturity and to pay the interest as it matures. Surplus in a sinking fund may be invested in accordance with the Texas Public Funds Investment Act and the city policies for the investment of funds, adopted pursuant to that act.
(El. of 5-2-1998)
An officer of the city who diverts or uses a sinking fund for any purpose other than that for which the fund is created or for which investments are authorized, shall be personally liable and responsible to the city in the full amount, with statutory interest, of the unlawful diversion or use. If the diversion or use is made or participated in by more than one officer of the city, the liability and responsibility is joint and several.