The City of DeSoto shall have the power to borrow money on the credit of the City in accordance with the Constitution and laws of the State of Texas, for permanent public improvements, for any public purpose not now or hereafter prohibited by the Constitution and laws of the State of Texas, including the funding of economic development programs permitted by the Constitution and laws of the State of Texas. The City shall have the right to issue general obligations bonds, revenue bonds, funding and refunding bonds, time warrants, certificates of obligation, notes and other evidence of indebtedness permitted by the Constitution and laws of the State of Texas as now authorized or as may hereafter be authorized to be issued by the Constitution and laws of the State of Texas applicable to the City. In accordance with the Constitution and laws of the State of Texas, the City shall have the right to refund any outstanding bonds or obligations by the issuance of refunding bonds.
(Ordinance 2324-23 adopted 7/18/2023)
Any proposition to issue general obligation 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 the Constitution and laws of the State of Texas, as the same may be amended from time to time.
(Ordinance 2324-23 adopted 7/18/2023)
No bonds issued by the City of DeSoto 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. In the event the City shall have received authorizations for the issue of bonds but shall not have issued said bonds within ten (10) years from the date of voter authorization, such authorization shall become null and void.
It shall be the duty of the Council to levy an annual tax sufficient to pay the interest on and approve the necessary sinking fund required by law on all outstanding general obligation bonds 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 issued by the City of DeSoto. The sinking fund maintained for the redemption of any debt may be invested in any interest bearing bonds of the United States Government, and/or secured bonds of the State of Texas as may be provided by the laws of this State. Investment 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 DeSoto. The Council may also deposit City monies in any state or national chartered bank on time deposit interest.
Editor's note–Former § 5 pertaining to revenue bonds, was deleted in its entirety by Ordinance 2324-23 adopted 7/18/2023.
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, 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 Attorney General of the State of Texas for approval and for registration by the Comptroller of Public Accounts.
The Director of Finance or other officer of the City designated by the City 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 and certificates of indebtedness issued, the date and amount thereof, the rate of interest, maturity, etc. of all bonds or other indebtedness surrendered and other transactions of the Council having reference to the refunding of the indebtedness of said City.