The municipality may borrow money and issue such evidence thereof (herein called "obligation") as the assembly may determine necessary.
(a) 
General Obligations of the Municipality. No general obligation bonded indebtedness may be incurred unless authorized for capital improvements by the assembly and ratified by a majority vote of those in the municipality voting on the question.
(b) 
General Obligations of Service Areas. No obligation secured by a pledge of taxes to be levied in a service area may be issued unless authorized for capital improvements by the assembly and ratified by a majority of the qualified voters in the service area voting on the question. In a service area where there are no qualified voters to vote on the question, voter ratification shall not be required. Obligations secured by a pledge of taxes to be levied in a service area may be additionally secured by a pledge of the full faith and credit of the municipality when so provided by the assembly and ratified by a majority of the qualified voters voting on the question.
In calling any election required by this article, the assembly shall cause a notice to be published at least once a week for at least three consecutive weeks in a newspaper of general circulation in the municipality. The notice shall contain the following information:
(1) 
The amount of the bonds, purpose of their issuance, and length of time within which the bonds shall mature.
(2) 
The estimated annual debt service on the proposed bonds.
(3) 
The current total general obligation indebtedness of the municipality, including authorized but unsold general obligation bonds.
(4) 
The current year’s debt service on the outstanding general obligation bonds of the municipality.
(5) 
The current total assessed valuation within the municipality.
For bonds secured by a pledge of taxes to be levied in a service area the notice shall also contain the information required in (3), (4) and (5) relative to the service area. Errors contained in information required in (2), (3), (4) and (5) with regard to the municipality or a service area shall not invalidate any election unless such errors are substantial. Actions challenging the sufficiency of any notice of election must be brought within the time provided in Section 12.06 of this charter.
General obligation bonds and bonds secured by a pledge of taxes to be levied in a service area must be sold at public sale. Notice of the public sale shall be given at such time and in such manner as the assembly shall prescribe. All other obligations may be sold in such manner as the assembly shall provide. Nothing in this section shall be construed to prevent a negotiated purchase by the state or federal government of municipal bonds or notes, provided that the fact of the negotiation is made public; and nothing in this section shall be construed to prohibit the negotiated sale to private parties in the event that a public sale produces no bids acceptable to the assembly.
No person retained by the municipality to perform services relating to financial programming or the issuance and sale of obligations may bid on such obligations, directly or indirectly. Violation of the provisions of this section shall not invalidate the obligations.
No action challenging the authority or proceedings for or the validity of, the issuance of obligations, a bond ratification election, or the levy of taxes to pay obligations, may be commenced or maintained unless instituted within thirty days from the date of certification of the results of the election ratifying the issuance, or of the adoption of the ordinance or resolution authorizing the issuance when ratification is not required.