Each elective officer of the City shall be a qualified elector of the City and shall have resided therein or in territory annexed thereto for a period of at least two (2) years and shall continue to reside therein during their term. (S)he shall hold no incompatible office under the national, state or county government, nor shall (s)he have any financial interest in any contract to which the City is a party, or in any expenditure of money by the City other than their fixed compensation and expenses for traveling.