(A) Neither the City Council nor any department or officer of the city shall add to the city expenditures in any fiscal year anything over and above the amount provided for in the annual appropriation bill for that year, except as is hereinafter provided. No expenditure for an improvement to be paid for out of the general fund of the city shall exceed in any fiscal year the amount provided for that improvement in the annual appropriation bill. However, nothing herein contained shall prevent the City Council from ordering, by a two-thirds vote, any improvement, the necessity of which is caused by any casualty or accident happening after the annual appropriation is made. The City Council may, by a like vote, order the Mayor and Finance Committee to borrow a sufficient amount to make such improvements, for a space of time not extending beyond the close of the next fiscal year. The sum and the interest thereon shall be added to the amount authorized to be raised in the next general tax levy, and embraced therein.
(B) Should any judgment be obtained against the city, the Mayor and Finance Committee, under the sanction of the City Council, may borrow a sufficient sum to pay the same, for a space of time not exceeding the close of the next fiscal year. The sum and interest thereon shall in like manner be added to the amount authorized to be raised in the general tax levy of the next year and embraced therein.
(ILCS Ch. 65, Act 5 § 8-1-6) (‘69 Code, § 2-6)