§ 4.
Debt limitations for municipalities and political subdivisions.
The debt of any county,
city, town or civil township shall never exceed five per centum upon the assessed valuation of the
taxable property therein, for the year preceding that in which said indebtedness is incurred. The
debt of any school district shall never exceed ten per centum upon the assessed valuation of the
taxable property therein, for the year preceding that in which said indebtedness is incurred. In
estimating the amount of the indebtedness which a municipality or subdivision may incur, the
amount of indebtedness contracted prior to the adoption of the Constitution shall be included.
Provided, that any county, municipal corporation, civil township, district, or other subdivision
may incur an additional indebtedness, not exceeding ten per centum upon the assessed valuation of
the taxable property therein, for the year preceding that in which said indebtedness is incurred, for
the purpose of providing water and sewerage, for irrigation, domestic uses, sewerage and other
purposes; and
Provided, further, that in a city where the population is eight thousand or more, such city may
incur an indebtedness not exceeding eight per centum upon the assessed valuation of the taxable
property therein for the year next preceding that in which said indebtedness is incurred for the
purpose of constructing street railways, electric lights or other lighting plants.
Provided, further, that no county, municipal corporation, civil township, district or subdivision
shall be included within such district or subdivision without a majority vote in favor thereof of the
electors of the county, municipal corporation, civil township, district or other subdivision, as the case
may be, which is proposed to be included therein, and no such debt shall ever be incurred for any of
the purposes in this section provided, unless authorized by a vote in favor thereof by a majority of
the electors of such county, municipal corporation, civil township, district or subdivision incurring
the same.
History: Amendment proposed by SL 1895, ch 35, approved Nov., 1896; amendment proposed by SL 1901, ch 89, approved Nov., 1902; amendment proposed by SL 1909, ch 139, rejected Nov., 1910; amendment proposed by SL 1920 (SS), ch 34, rejected Nov., 1920; amendment proposed by SL 1949, ch 238, rejected Nov., 1950; amendment proposed by SL 1953, ch 312, approved Nov., 1954.
