The City of Garland shall have the right and power to borrow money on the credit of the City, in accordance with state law and the Texas Constitution, for permanent public improvements or for any other public purpose not prohibited by state law and the Texas Constitution, including but not limited to the funding of economic development projects or programs.
The City shall have the power to issue general obligation bonds, revenue bonds, funding and refunding bonds, time warrants, certificates of obligation, notes and other evidences of indebtedness permitted by state law and the Texas Constitution. However, in no event shall revenue bonds be considered an indebtedness of the City of Garland nor to be repaid from funds secured by taxation.
The City shall have the right to fund any maturing bonds by the issuance of new bonds in lieu thereof at the same or a lower rate of interest, and may apply thereto the sinking fund belonging to any series of bonds so funded, and may pay and retire any bonds by using the sinking fund thereof if there is no danger of causing default in other bonds for which that sinking fund was created.
(Ordinance 6991, prop. W, adopted 5/15/18)
This City may enter into an agreement with the United States of America or any agency thereof, the State of Texas or any political subdivision thereof to acquire, improve, pay for, maintain, control and operate any or all of the following:
(1) 
Any water system, including riparian rights, water supply reservoirs, watersheds, dams, water pumping and filtration systems, rights-of-way and all appurtenances and facilities useful in furnishing the inhabitants of this City an abundant supply of wholesome water;
(2) 
Sewage disposal plants and systems, rights-of-way, sewer lines and all other sewage facilities useful in properly serving this City;
(3) 
Parks and playgrounds;
(4) 
Incinerators and garbage disposal plants;
(5) 
Streets, boulevards, alleys and other public ways serving inhabitants of the City of Garland;
(6) 
Hospitals;
(7) 
Drainage systems;
(8) 
Gas systems;
(9) 
Electric light and power systems;
(10) 
Any other public utility;
within or outside the City of Garland, or may alone acquire, improve, maintain, control and operate any or all such projects wholly or partially outside this City for the benefit of the residents of the City.
To finance any such project or projects, separately or jointly with any other governmental unit, the City may incur indebtedness, evidenced by notes, warrants, bonds or revenue certificates of this City; provided, however, that any such agreement with other governmental unit or units shall not become effective until twenty (20) days after such agreement be embodied in an ordinance of the Council authorizing its execution, and such ordinance has been published at least two (2) times in a newspaper having a circulation in Garland.
Before submitting a proposition to issue new or additional bonds for approval by the voters, the Council shall first convene a Bond Study Committee, composed of not less than nine (9) residents of the City, to make recommendations to the Council on all such propositions. The Council shall establish the Bond Study Committee at a regular meeting preceding an election. Any proposition to issue new or additional bonds, payable from the ad valorem taxes as authorized herein, shall be first submitted to a vote of the qualified voters of the City at an election to be held for that purpose. Any such election shall be held and conducted in accordance with state law and the Texas Constitution. .
After an issue of bonds has been ordered, the Council shall have power to issue bonds payable serially or otherwise as in its opinion the Council may deem best. All bonds shall be issued in accordance with the procedures provided for and required by state law. When any bonds are issued by the City a fund shall be provided to pay the interest and create a sinking fund sufficient to pay the bonds at maturity, and said sinking funds may be invested in accordance with state law.
(Ordinance 6095, sec. 2, adopted 3/20/07; Ordinance 6131 adopted 5/21/07; Ordinance 6991, prop. X, adopted 5/15/18)
All bonds, warrants, certificates of indebtedness and assignments of revenue shall be signed by the Mayor, countersigned by the City Secretary, and sealed with the seal of the City, and shall be payable at such times and place or places as may be fixed, not more than forty (40) years from their date.
It shall be the duty of the Mayor, when such bonds are issued, to forward the same to the Comptroller of Public Accounts of the State of Texas for submission, with all information he may have relating thereto, to the Attorney General of the State of Texas.
It shall be the duty of the Mayor, at the time of forwarding such bonds for registration, to furnish the same comptroller with a statement of the amount of taxable property, real and personal, in the City, and the amount of tax levied for the payment of interest and the creation of a sinking fund on such bonds.
It shall be the duty of the Council each year to levy a tax sufficient to pay the interest on and provide the necessary sinking fund, required by law on all bonds outstanding, and if a deficiency appears at any time in such fund, then the Council shall, for the next succeeding year, levy an additional tax sufficient to discharge such deficiency.
The Council shall keep, or cause to be kept, for and on behalf of the City a complete bond registry and books, showing all bonds, warrants, certificates of indebtedness and assignments of revenue 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 registry. The books shall be safely kept among the records of the City.
Any officer of the City who shall willfully 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 [fund] 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.
Each bond proposition shall expressly state all information required by state law, the purpose of the proposition and the amount thereof by project or category, as the Council may direct, so that the voters may pass upon each proposition separately and apart from another in order that each voter may vote “for” or “against” any proposition or propositions without voting “for” or “against” all such propositions.
The revenues resulting from an approved bond proposition shall only be used for the project, projects or category of projects, as the case may be, specified in such proposition for or retiring bonds issued for that proposition, as determined by the City Council.
(Ordinance 4953 adopted 3/19/96; Ordinance 4968 adopted 5/7/96; Ordinance 5807 adopted 2/17/04; Ordinance 6991, prop. Y, adopted 5/15/18)