The City of Cuero shall have the right and power to borrow money
on the credit of the City for permanent public improvements or for
any other public purpose not prohibited by the Constitution or Statutes
of the State of Texas. The City shall also have the power to borrow
money against the revenues of any municipally-owned utility and to
mortgage the physical properties of such utilities in payment of such
debt. In no event, however, shall revenue bonds be considered an indebtedness
of the City nor repaid with funds secured by taxation.
The Chief Financial Officer shall prepare, maintain and cause
to be filed in his/her office a complete bond register, showing all
bonds, the date and amount thereof, the rate of interest, a schedule
of maturity dates and a record of all bonds and all other transactions
of the City Council having reference to the refunding of any indebtedness
of the City of Cuero. When bonds or their coupons are paid, their
payment or cancellation shall be noted in the register.
Any officer or employee of the City of Cuero who shall willfully
or knowingly divert or use any funds arising from the issuance of
any bond or sinking fund for any other purpose than that for which
the fund is created or as herein otherwise authorized, shall be subject
to prosecution as provided by the Laws of the State of Texas on the
diversion and conversion of funds belonging to any other municipalities
of the State of Texas.
