In keeping with the Constitution of the State of Texas and not
contrary thereto, the City of Coleman 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 and other evidence of indebtedness
as now authorized, or as may hereafter be authorized to be issued
by cities and towns, by the laws of the State of Texas.
No bonds, warrants, revenue warrants, notes, or other evidence
of indebtedness, except for certificates of obligation, shall ever
be issued for any purpose except for the purpose of refunding bonds
of the City of previous issues, unless such action is approved by
a majority of the qualified voters of the City at an election called
for such purpose, and provided further that with the exception of
certificates of obligation, no debt of any nature shall ever be contracted
by the City, and no bond, revenue warrant, note, or other evidence
of indebtedness maturing more than one year from the date of its issuance,
shall ever be contracted or issued, unless such action is approved
by a majority of the qualified voters of the City, at an election
called for such purpose.
No bonds, warrants, or certificates of indebtedness shall be
made, and the City shall not become obligated for same, to be used
for the operation of the regular administrative and operating budgets
of the City of Coleman.
No bonds issued by the City of Coleman 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 authorization 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 purpose other than to
pay the interest and principal on all such bonds issued by the City
of Coleman. 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. City monies may also be deposited
in any state or nationally chartered bank in interest bearing accounts.
The City shall have power to borrow money for the purpose of
construction, purchasing, improving, extending, or repairing of public
utilities, recreational facilities, or any other function not now
or hereafter prohibited by the general laws of the State, and 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.
Revenue bonds issued by the City, shall be submitted for approval
by a majority of qualified voters, voting at an election held for
such purpose. The Council shall have authority to provide for terms
and force of any purchase agreement, contract, mortgage, bond, or
document desired or necessary for the issuance of revenue bonds, and
the acquisition and operation of any property or interest.
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 places as may be fixed; not more
than thirty (30) years from their issue 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., on all bonds or other
indebtedness surrendered, and other transactions of the Council having
reference to the refunding of the indebtedness of said City.