In keeping with the Constitution of the State of Texas and not contrary thereto, the City of Midlothian shall have the power to borrow money on the credit of the City for any public purpose not now or hereafter prohibited by the Constitution and laws of the State of Texas, and shall have the right to issue all tax bonds, revenue bonds, funding and refunding bonds, time warrants, certificates of obligation and other evidence of indebtedness as now authorized or as may hereafter be authorized to be issued by any City under and in accordance with the restrictions, conditions and laws of the State of Texas.
No bonds issued by the City of Midlothian shall be valid unless they are sold for par value and accumulative interest exclusive of commission. The Council shall have the right to reject any or all bids.
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, time warrants, and certificates of obligation 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 all such bonds, time warrants, and certificates of obligation issued by the City of Midlothian. The sinking fund maintained for the redemption of any debt may be invested in any interest-bearing security authorized by the laws of this State. Investments of all sinking funds for interest shall mature at least fifteen (15) days prior to the date of payment due on bonds issued by the City of Midlothian. The Council may also invest any other City funds in any state or national chartered bank in interest-bearing certificates of deposit secured by pledged securities as required by state law.
The City shall have 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 in accordance with State 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 therein. 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 Finance Officer or other officer of the City designated by the City Manager shall keep, or cause to be kept, for and on behalf of the City a complete bond registry and books showing all bonds, warrants and certificates of indebtedness issued, the date and amount thereof, the rate of interest, maturity and other information pertinent thereto, 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 registry. The books shall be safely kept among the records of the City.