Pursuant to the authority vested in the council to do so under and pursuant to the provisions of that certain act of the Legislature of the state entitled: "An Act to Provide for the Levy and Collection of Taxes and Assessments for the Purpose of Creating a Fund for Capital Outlays by Cities, Counties, Cities and Counties, or Districts" (Statutes 1937, page 1995; Act 8496a, Deerings General Laws of California, 1944 Edition), as amended and as the same may hereafter be amended, the council creates a certain fund in and for the city to be known and designated, and which is established, named and designated as the "capital outlays fund."
(Prior code § 8-1.01)
As authorized in such act of the Legislature, the council at the time of making the regular tax levy for general and special municipal purposes each year hereafter may levy and thereafter collect for the purposes contemplated under such act of the Legislature assessments or taxes for capital outlays which assessments or taxes shall not exceed the limitation upon its right to impose taxes as is now, or may hereafter be, prescribed by the general laws of the state without the assent of two-thirds of the qualified electors of the city voting at any general or special election at which such proposition may be submitted. The proceeds of any and all such assessments or taxes levied and collected shall be placed in such fund and the council may, as provided in such act, transfer to such fund any unencumbered surplus funds remaining on hand in the city at the end of any fiscal year.
(Prior code § 8-1.02)
As provided in such act under which such fund is created, such fund shall remain inviolate for the making of any capital outlays, and no moneys shall be disbursed therefrom excepting for such a purpose, except as provided in such act.
(Prior code § 8-1.03)
As provided in such act, "capital outlays," as used in this chapter, shall not be construed to include the construction, acquisition, extensions of, or additions to utilities, other than utilities for the furnishing of a water supply.
(Prior code § 8-1.04)