(a) The City indebtedness by the issue of unlimited and limited tax bonds or other unlimited or limited tax evidences of indebtedness, including existing indebtedness, shall not exceed 10% of the assessed valuation of the real and personal property within the City. However, any moneys on hand reserved for the payment of indebtedness to that extent may be considered as a reduction of the City’s indebtedness.
(b) In the event of fire, flood, or other calamity requiring an emergency expenditure to provide relief to City residents to repair or rebuild city facilities, the Council may borrow an amount equal to three-eighths of 1% of the assessed valuation of the City, notwithstanding that the loan may exceed the limitation on indebtedness established by this Section and State law. Such indebtedness shall be due in not more than five years from the date of issuance.