Sec. 1033g. Regulating the issue of bonds and other interest-bearing
obligations by cities and towns.
No city or town shall issue any bonds or other interest-bearing
obligations for any purpose, or in any manner, to an amount
which, including existing indebtedness, shall at any time exceed
eighteen per centum of the assessed valuation of the real estate
in the city or town subject to taxation, as shown by the last preceding
assessment for taxes: provided, however, that nothing
above contained in this section shall apply to those cities and
towns whose charters, existing at time of the adoption of the
Constitution, which went into effect July tenth, nineteen hundred
and two, authorize a larger percentage of indebtedness than
is authorized by this section: and provided, further, that in
determining the limitation of the power of a city or town to incur
indebtedness, there shall not be included the following classes
of indebtedness:
(a) Certificates of indebtedness, revenue bonds, or other obligations
issued in anticipation of the collection of the revenue
of such city or town for the then current year: provided, that
such certificates, bonds, or other obligations mature within one
year from the date of their issue, and be not past due, and do
not exceed the revenue for such year.
(b) Bonds authorized by an ordinance enacted in accordance
with section one hundred and twenty-three of the Constitution,
and approved by the affirmative vote of the majority of the qualified
voters of the city or town voting upon the question of their
issuance, at the general election next succeeding the enactment
of the ordinance, or at a special election held for that purpose,
for a supply of water, or other specific undertaking from which
the city or town may derive a revenue; but from and after a
period to be determined by the council, not exceeding five years
from the date of such election, whenever and for so long as
such undertaking fails to produce sufficient revenue to pay for
cost of operation and administration (including interest on
bonds issued therefor and the cost of insurance against loss by
injury to person or property), and an annual amount to be
covered into a sinking fund sufficient to pay, at or before maturity,
all bonds issued on account of said undertaking, all such
bonds outstanding shall be included in determining the limitation
of the power to incur indebtedness, unless the principal and
interest thereof be made payable exclusively from the receipts
of the undertaking.
