§ 16. Improvement Districts.

The city council may, and upon petition shall, divide the city or any portion of the corporate territory thereof, into "Improvement Districts", clearly defining the limits and boundaries of each district; and shall have the right, and is hereby authorized to borrow money on the credit of any improvement district so created in the city, and issue bonds therefor for the purpose of constructing and laying permanent sidewalks improvements, or permanent street paving improvements, or both, in such district, but every proposition to borrow money on the credit of any improvement district for permanent sidewalk improvements or street improvements, or both, therein shall be submitted to the qualified taxpaying voters living within and owning property in such district, and shall distinctly specify the purpose for which the loan is desired, and the permanent sidewalk or street improvements, one or both, proposed to be constructed. If said proposition be sustained by a majority of the votes cast in such election in such district, such loan shall be lawful. All bonds shall specify for what purpose they are issued, shall bear interest at a rate not greater than six per cent per annum, and, when sold, shall net not less than par value, with accrued interest to date of payment of the proceeds into the city treasury, and such bonds may be negotiated in lots, as the City Council may direct. No debts shall be contracted for the payment whereof such bonds are issued until such bonds shall have been disposed of, and no debts shall ever be created against any such improvement district, unless at the same time provision be made to assess and collect annually upon the property in such improvement district a sum sufficient to pay the interest on such bonds and create a sinking fund of at least two per cent, thereon; or if a certain portion of said bonds are payable each year, then a sufficient amount shall be assessed and collected to pay each of said bonds as they mature and pay the interest on all unpaid bonds. The interest and sinking fund shall be kept separate by the city from other funds, and shall not be diverted or used for any other purpose than to pay interest and principal on such bonds, and the city comptroller shall sing [sic] no draft or warrant on said fund, except to pay the interest and redeem the bonds for which it was provided. The sinking fund for such bonds shall be invested as provided in section 1, Article IV of this Charter, or in bonds of such improvement district; provided, however, that all property situated within any improvement district which may be created under the authority of this section shall participate to its full extent in, and be equally improved in its just proportion by said sidewalk or street improvements. (Act of 1905; amended October 15, 1913)