§ 7.11. Power to incur indebtedness.

The bonded indebtedness of the City may not in the aggregate exceed the sum of fifteen (15%) percent of the total assessed valuation of property within the City, with the exception of any indebtedness that has been or may hereafter be incurred for the purposes of acquiring, constructing, extending, replacing, or maintaining municipally owned utilities, for which purposes a further indebtedness may be incurred by the issuance of bonds, subject as to amount only to the provisions of the constitution and laws of the State of California.

The council may, after authorization by the affirmative vote of a majority of the electors voting on the proposition at any regular or special election, issue revenue bonds or any other evidence of indebtedness authorized by state law. Neither such revenue bonds, nor the interest accruing thereon, shall be, or evidence, indebtedness of the City. Such bonds, and the interest accruing thereon, shall be a charge upon, and payable solely from the revenues derived from the operation of such works, facilities or property, and shall not be a charge, lien, encumbrance, legal or equitable, upon, nor shall any recourse on account thereof be had against any other income, receipts, revenues or funds of the City, and neither the credit nor the taxing power of the City shall be deemed to be pledged to, or charged with, such payment, nor shall the holder of any such bond have any right to compel the exercise of any taxing power of the City. (Amended by General Municipal Election on November 2, 2010)