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 Granite Shoals
 Code of Ordinances
 Part I. Charter
 Article VII. Financial Procedures

  § 7.14. Borrowing  

Latest version.

  • (1) The City shall have the right and power, except as prohibited by law or this Charter, to borrow money by whatever method it may deem to be in the public interest.

    (2) General Obligation Bonds and Certificates of Obligation.

    (A) The City 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 any other public purpose not prohibited by law and this Charter and to issue refunding bonds to refund outstanding bonds previously issued. All such bonds and certificates of obligation shall be issued in conformity with the laws of the State of Texas and shall be used only for purposes for which they were issued.

    (B) When state law requires an election to issue any bond, the City Council shall prescribe the procedure for calling and holding such elections, shall define the voting precincts and shall provide for the return and canvass of the ballots cast at such elections.

    (C) If, at such elections, a majority of the vote shall be in favor of creating such a debt or refunding outstanding valid bonds of the City, it shall be lawful for the City Council to issue bonds as proposed in the ordinance submitting same. However, if a majority of the voted polled shall be against the creation of such debt or refunding such bonds, the City Council shall be without authority to issue the bonds. In all cases when the City Council shall order an election for the issuance of bonds of the City, it shall, at the same time, submit the question of whether or not a tax shall be levied upon the property within the City for the purpose of paying the interest on the bonds and to create a sinking fund for their redemption.

    (3) Revenue Bonds. The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, or any other self-liquidating municipal function not prohibited by the Constitution and the laws of the State of Texas. With an affirmative vote of at least five (5) Council Members, it shall have the power to issue revenue bonds and to evidence the obligation created thereby. Such bonds shall be a charge upon and payable from the properties, or interest therein pledged, or the income therein gained from, 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 they were issued.

    (4) Emergency Funding. In any budget year, the City Council may, by affirmative vote of at least five (5) Council Members, authorize the borrowing of money. Notes may be issued which are repayable not later than the end of the current fiscal year.

(Amend. of 5-10-2005, § 7.14(2)(B))

refstatelaw

Authority of home rule municipalities to issue bonds, V.T.C.A., Government Code § 1331,052.