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.

SEC. 8. EXECUTION OF BONDS.

   All bonds must be signed by the mayor and countersigned by the city manager or the city manager’s designee and must have the seal of the city impressed on each bond; provided, that the bond ordinance or ordinances may provide for the bonds and any attached interest coupon to be signed by facsimile signatures and for the seal of the city on the bonds to be a facsimile as provided by the laws of the State of Texas. Such bonds shall mature serially or otherwise not to exceed 40 years from their date. (Amend. of 4-2-83, Prop. No. 6; Amend. of 5-1-93, Prop. No. 7)

SEC. 9. SINKING FUND FOR GENERAL OBLIGATION BONDS.

   It shall be the duty of the city council each year to levy a tax sufficient to pay the interest and provide the necessary sinking fund required by law on all general obligation bonds outstanding, and if a deficiency appears at any time in such fund the council shall, for the next succeeding year, levy an additional tax sufficient to discharge such deficiency.

SEC. 10. BOND REGISTER.

   The city council shall keep or cause to be kept for and on behalf of the city a complete bond registry and set of books, showing all bonds issued, the date and amount thereof, the rate of interest, maturity, type, etc., of all bonds or other indebtedness incurred under the provisions of the Charter, and all other transactions of the city council having reference to the refunding of the indebtedness of the city. When bonds or their coupons are paid, their payment or cancellation shall be noted in said registry, and the books so required shall be safely kept among the records of the city manager. (Amend. of 6-12-73, Prop. No. 35)