Borrowing. Except as prohibited by law,
the Council shall have the power to borrow money by whatever method
it may deem to be in the public interest.
General Obligation Bonds and Certificates of Obligation. The Council 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.
Revenue Bonds. The Council 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 the [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.
Bonds Incontestable. All bonds of the
City having been issued and sold and having been delivered to the
purchaser thereof shall thereafter be incontestable. All refunding
bonds issued in exchange for outstanding bonds previously issued shall
and after said exchange be incontestable.
Ordinance Required. The procedure for
adoption of any ordinance relative to borrowing for capital expenditures
shall be:
(1)
A copy
of the proposed ordinance shall be furnished to: (1) each Councilman,
(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 first considered.
