03 Explanation Packet for Charter Study Com Report

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EXPLANATION: deletes outdated notice requirements for the sale of city bonds and specifies that such bonds shall be advertised and sold in the manner most advantageous to the city and consistent with modern standards, PROPOSITION 40: Section 65. Creation of sinking fund and investments. The ordinance authorizing any bonds to be issued shall provide for the creation of a sinking fund sufficient to pay the bonds or warrants at maturity, and make provision for the payment of the interest thereon as it matures, and any surplus in any sinking fund or any general fund may be invested in bonds of the state of Texas, or in seeurities of the United States, or sueh funds may in accordance with the city's investment policv and the Public Funds Investment Act. Such surplus funds may also be used for the purchase of the bonds or warrants of the city of Paris that are not yet due, provided, however, that the price paid for said bonds or securities shall not exceed the market value at the time or purchase and the accrued interest provided for in said bonds or securities, and provided further that no such bonds or securities shall be purchased which, according to their terms, mature at a date subsequent to the time of maturity of the bonds for the payment of which such sinking fund was created. Neither interest nor sinking fund shall be devoted to any other purpose whatsoever. EXPLANATION: This replaces outdated language regarding the manner that bond funds may be invested with language consistent with current law and practices. PROPOSITION 41: Section 70. Transfers of appropriations. The city manager may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within an office, department or agency. At the request of the city manager and within the last three months of the fiscal year, the council may be resolution transfer any unencumbered 19 --t' r----+""'.""