The City shall have the power, except as prohibited by law, to borrow money by whatever method it may deem to be in the public interest.
The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for the acquisition of property for permanent public improvements or for any other public purpose not now or hereafter prohibited by the Constitution and laws of the State of Texas. Except for the refunding of bonds previously issued, any proposition to borrow money and to issue such bonds shall first be approved by a majority of the qualified electors voting at an election called for the purpose of authorizing the issuance of such indebtedness. The resolution calling such election and the manner of conducting the election shall conform in all respects to the General Laws of the State of Texas.
The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending, or repairing of public utilities, recreational facilities, or facilities for any other self-liquidating municipal function not now or hereafter prohibited by any general law of the State of Texas, and to 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. The City Council shall have authority to provide for the terms and form [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 such property or interest.
No bond issued by the City shall be sold for less than par value and accrued interest. Nor shall any bonds, except refunding bonds, be sold until bids, submitted in response to public advertisement therefor, have been received and considered by the Council. Refunding bonds may be sold by negotiation without public advertisement. The Council shall have the right to reject any or all bids. Proceeds from the sale of bonds may be invested in direct obligations of the United States Government, maturing not more than six (6) months after date of making the investment.
It shall be the duty of the Council to levy an annual tax sufficient to pay the interest on and provide 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 such bonds. The sinking fund maintained for the redemption of any debt may be invested in any interest-bearing bonds of the United States Government, the State of Texas, the County of Yoakum, or the City of Denver City.
In any fiscal year, in anticipation of the collection of the property tax for such year, whether levied or to be levied in such year, the Council may by resolution authorize the borrowing of money in a sum not in excess of the unencumbered net of anticipated tax receipts, by the issuance of negotiable notes of the City, each of which shall be designated “Tax Anticipation Note for the Year ________________” (stating the budget year). Such notes shall mature and be payable not later than the end of the fiscal year in which the original notes shall have been issued.
In any fiscal year, in anticipation of the collection or receipt of other revenues of that budget year, the Council may by resolution authorize the borrowing of money in a sum not in excess of the unencumbered net of anticipated tax receipts, by the issuance of negotiable notes of the City each of which shall be designated “Special Revenue Note for the year ________________” (stating the budget year). Such notes may be renewed from time to time, but all such notes together with the renewals, shall mature and be payable not later than the end of the fiscal year in which the original notes shall have been issued.