Subject to the applicable provisions of State law and this Charter,
the Council, by proper ordinance or resolution, may authorize the
borrowing of money for any purpose within the scope of the powers
vested in the City and the issuance of bonds of the City or other
evidences of indebtedness therefor, and may pledge the full faith,
credit, and resources of the City for the payment of the obligation
created therefor.
The City may not incur indebtedness by the issue of bonds or
otherwise, in any sum which, including existing indebtedness, shall
exceed 10% of the assessed valuation of the real and personal property
within the City subject to taxation as shown by the last preceding
assessment roll of the City; provided, however, that in the case of
fire, flood or other calamity requiring an emergency fund for the
relief of the inhabitants of the City or for the repairing or rebuilding
of any municipal building, works, bridges or streets, the legislative
body of the City may borrow money due in not more than five years
and in the amount not exceeding 3/8 of 1% of the assessed valuation
of all the real and personal property in the City, notwithstanding
such loan may increase the indebtedness of the City beyond the limitation
fixed in this Charter; Provided, further, that in computing the net
bonded indebtedness for the purposes hereof, bonds issued in anticipation
of the payment of special assessments, even though they are also a
general obligation of the City, mortgage bonds which are secured only
by a mortgage on the property or franchises of the public utility,
and bonds issued to refund moneys advanced or paid on special assessments
for water main extensions, shall not be included, and the resources
of the sinking fund pledged for the retirement of any outstanding
bonds shall also be deducted from the amount of the bonded indebtedness.
Each bond or other evidence of indebtedness shall contain on
its face a statement specifying the purpose for which the same is
issued and it shall be unlawful for any officer of the City to use
the proceeds thereof for any other purpose, and any officer who shall
violate this provision shall be deemed guilty of misconduct in office.
All bonds and other evidences of indebtedness issued by the City shall
be signed by the Mayor and countersigned by the Clerk, under the seal
of the City. Interest coupons may be executed with the facsimile signatures
of the Mayor and Clerk. A complete and detailed record of all bonds
and other evidences of indebtedness issued by the City shall be kept
by the Clerk. Upon payment of any bond or other evidence of indebtedness,
the same shall be marked "cancelled".
No unissued bonds of the City shall be issued or sold to secure
funds for any purpose other than that for which they were specifically
authorized.