237. Section 1. The city may borrow money within the limits of legal indebtedness of the city and issue its general obligation bonds therefor for the purpose of paying a part or all of the cost of any general public improvement authorized by chapter XIV of this charter or by law; and also for the purpose of paying part or all of that portion of a special assessment improvement, not exceeding forty (40) per cent of the entire cost of such improvement, which the council shall have determined that the city shall pay; and also for the portion of a special assessment to be paid by taxes levied upon a special assessment improvement district in anticipation of the collection of such special assessment taxes; and shall pledge the full faith and credit of the city for the full and punctual payment of such general obligation bonds; provided that no general obligation bonds, except special assessment bonds, bond for the city portion of local improvements not to exceed forty (40) per cent of the cost of such improvement, refunding bonds and bonds for relief from fire, flood or calamity or for payment of judgments, shall be issued unless approved by three-fifths of the electors voting thereon at a general or special election. At no time shall the bonded indebtedness of the city exceed eight (8) per centum of the assessed valuation of all real and personal property in the city; provided, that school bonds, bonds issued to defray costs of improvements to be paid by special assessments and bonds issued to defray the cost of purchasing or installing, improving or extending public utilities which are issued in accordance with section 18 of this chapter shall not be included in the aforesaid limitation.
Statutory reference:
City authority to borrow money on credit of city and issue bonds therefor, see M.C.L.A. § 117.4a(l)