In keeping with the Constitution of the State of Texas and not contrary thereto, the City of Carrollton shall have the power to borrow money on the credit of the city for any public purpose or for permanent public improvements and in evidence of such borrowing, shall have the right and power to issue all bonds, certificates of obligation, notes, time warrants and other obligations or evidences 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. The power to issue or incur indebtedness or obligations pursuant to section 5.03 and this section shall include the power to issue obligations to refund such indebtedness or obligations issued or incurred pursuant to said sections or the laws of the State of Texas.
(Adopted by electorate, 9/19/1961; Am. Ordinance 1361 adopted 4/7/1987; Charter Am. adopted 5/11/2021)
Obligations or evidences of indebtedness of the City of Carrollton shall be sold, authorized, and issued in the manner provided by applicable laws of the State of Texas and, in connection with the issuance of evidences of indebtedness or obligations under either section 5.01 or 5.03 hereof, the city shall have the power to execute loan agreements, revolving credit agreements, agreements establishing a line or lines of credit, letter of credit agreements, reimbursement agreements, insurance contracts, commitments to purchase, purchase or sale agreements, lease agreements or such other contracts or agreements authorized and approved by the council related to the security or liquidity thereof. All such obligations or evidences of indebtedness shall be signed by the mayor, countersigned by the city secretary in the manner provided by general law, and shall be payable at such times and place or places as shall be determined within the discretion of the council.
(Adopted by electorate, 9/19/1961; Am. Ordinance 1361 adopted 4/7/1987)
The city shall have power to issue revenue bonds, notes, or other obligations for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, recreational facilities or facilities for any other self-liquidating function enacted by the council not now or hereafter prohibited by any general laws of the state. Such bonds, notes, or other obligations shall be a charge upon and payable from the properties, or interest therein acquired or the income therefrom, and shall never be a debt of the city. The 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, notes, or other obligations and the acquisition and operation of any such property or interest.
(Adopted by electorate, 9/19/1961; Am. Ordinance 1361 adopted 4/7/1987)
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 a separate fund maintained at a depository of the city, and monies deposited therein shall not be diverted to or used for any other purpose than to pay the interest and principal on general obligation bonds issued by the City of Carrollton.
Moneys deposited to the credit of the interest and sinking fund of the city must be invested in a manner to insure the safety of principal in (a) direct obligations of (including obligations issued or held in book entry form on the books of the Department of Treasury of the United States of America), or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, (b) bonds, notes, debentures or other evidences of indebtedness payable in cash issued by any one or a combination of federal agencies and such obligations by statute, judicial decision or in the opinion of the attorney general of the United States represent the full faith and credit of the United States of America, or (c) in certificates of deposit fully insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation and/or secured, to the extent not insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation, by collateral securities described in (a) and (b) above.
(Adopted by electorate, 9/19/1961; Am. Ordinance 1361 adopted 4/7/1987)
The director of finance or other officer of the city designated by the city manager shall keep, or cause to be kept, for and on behalf of the city, complete, current and accurate records and accounts pertaining to all bonds, warrants, certificates of indebtedness and other obligations issued or incurred by the city and with respect to the payment and cancellation of such bonds, warrants, certificates of indebtedness or other obligations.
(Adopted by electorate, 9/19/1961; Am. Ordinance 1361 adopted 4/7/1987)
All obligations or evidences of indebtedness shall be authorized by ordinance of the city council; provided however, that such ordinance shall not be required to be acted on more than one time or at more than one meeting. No ordinance authorizing the issuance or sale of obligations or evidences of indebtedness shall be subject to referendum.
(Adopted by electorate, 9/19/1961; Am. Ordinance 1361 adopted 4/7/1987; Charter Am. adopted 5/11/2021)