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 Kennedale
 Code of Ordinances
 CHARTER HISTORY
 HOME RULE CHARTER
 Article VI. FINANCE

  § 6.05. Indebtedness

Latest version.

  • The City shall have the right to issue and refund general obligation bonds, revenue bonds, and other evidence of indebtedness as is now permitted or as may be hereafter authorized to be issued by a Home Rule City in the State of Texas. All bonds of the City that have been issued, sold, and delivered to the purchaser shall be incontestable. All refunding bonds that have been exchanged shall be incontestable.

    (a)

    General Obligation Bonds. The City shall have the power to borrow money through general obligation bonds, which shall constitute direct and general obligations of the City, payable from ad valorem taxes levied against all taxable property located therein, within the limits prescribed by law or this Charter.

    (b)

    Revenue Bonds. The City shall have the power to borrow money for constructing, purchasing, improving, extending, or repairing public utilities, recreation facilities, or any other self-liquidating municipal function not prohibited by state law. Such borrowing shall be implemented through revenue bonds that are payable, both as to the principal and interest, solely from and secured by a first lien on and pledge of the net revenue derived from the properties, the interest pledged from the income, or both, after deduction of reasonable operating and maintenance expenses as required by law. The holders of the revenue bonds shall never have the right to demand payment thereof from monies raised or to be raised by taxation.

    (c)

    Short Term Borrowing. The City may borrow funds on the credit of the City for a term not to exceed one year. Such obligations must be retired by the end of the budget year in which they were issued.

    (d)

    Certificates of Obligation. The City shall have the power to issue Certificates of Obligation in accordance with the laws of the State of Texas. If, prior to the date tentatively set for the authorization of the issuance of the certificates, a petition signed by five percent (5%) of the qualified voters of the City is filed with the City Secretary protesting the issuance of such certificates, the City shall not be authorized to issue certificates for such purpose unless the issuance thereof is approved at an election called, held, and conducted in the manner provided for bond elections by the laws of the State of Texas.