SEC. 1. AUTHORITY TO BORROW.

   The city shall have the right and power, except as prohibited by law, to borrow money by whatever method the city council may deem to be in the public interest.

SEC. 2. GENERAL OBLIGATION BONDS (TAX SUPPORTED BONDS).

   The city shall have the power to borrow money on the credit of the city and to issue general obligation bonds for making public improvements or for other public purposes not prohibited by the Constitution and laws of the State of Texas, and to issue refunding bonds to refund outstanding bonds of the city previously issued. All such bonds shall be issued in accordance with state law. For bonds requiring voter approval, the city shall indicate on the ballot proposition the amount of bond issuance authorization, estimated amount of repayment including principal and interest based on current market conditions, and the purpose of the bonds. (Amend. of 11-4-14, Prop. No. 1)

SEC. 3. LIMITATIONS ON BONDED INDEBTEDNESS PAYABLE FROM TAXES.

   (a)   The maximum bonded indebtedness of the city outstanding at any one time, and payable from taxation, shall not exceed 10 percent of the total assessed valuation of property shown by the last assessment roll of the city.

   (b)   The city may not issue general obligation bonds or property-tax-supported certificates of obligation, other than refunding bonds, with a maturity in excess of 10 years unless the bonds have first been authorized by a majority vote of the participating voters at an election held for that purpose. (Amend. of 5-1-93, Prop. No. 7)

SEC. 4. REVENUE BONDS.

   The city shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, recreational facilities, off-street parking facilities or any other self-liquidating municipal function not prohibited by the Constitution and laws 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, pledged, or the income therefrom, or both, and shall never be a debt of the city. All such bonds shall be issued in conformity with the laws of the State of Texas.

SEC. 5. REFUNDING OUTSTANDING BONDS.

   The city shall have the right to refund any outstanding bonds by the issuance of new bonds in lieu thereof, at the same, higher or a lower rate of interest, and may apply thereto the sinking fund belonging to any series of bonds so refunded, and may pay and retire any bond by using the sinking fund thereof. The city shall have the same right to refund any bonds assumed as a result of annexations.

SEC. 6. BONDS PREVIOUSLY AUTHORIZED.

   All unissued bonds previously authorized by any election or by any provisions in a former city charter may be issued and are hereby validated.

SEC. 7. BONDS INCONTESTABLE.

   All bonds of the city having been approved by the attorney general and registered by the comptroller of the public accounts shall be incontestable, except for forgery, fraud or exceeding the limit fixed by the Charter.