Section X-26: Indebtedness of political subdivisions - Assent of voters - Limitation of amount - Annual tax.

    (a)  Except as herein otherwise provided, no county, city, town,
township, school district, or other political corporation, or
subdivision of the state, shall be allowed to become indebted, in any
manner, or for any purpose, to an amount exceeding, in any year, the
income and revenue provided for such year without the assent of
three-fifths of the voters thereof, voting at an election, to be held
for that purpose, nor, in cases requiring such assent, shall any
indebtedness be allowed to be incurred to an amount, including
existing indebtedness, in the aggregate exceeding five percent (5%)
of the valuation of the taxable property therein, to be ascertained
from the last assessment for state and county purposes previous to
the incurring of such indebtedness:  Provided, that if a school
district has an absolute need therefor, such district may, with the
assent of three-fifths of the voters thereof voting at an election to
be held for that purpose, incur indebtedness to an amount, including
existing indebtedness, in the aggregate exceeding five percent (5%)
but not exceeding ten percent (10%) of the valuation of the taxable
property therein, to be ascertained from the last assessment for
state and county purposes previous to the incurring of such
indebtedness, for the purpose of acquiring or improving school sites,
constructing, repairing, remodeling or equipping buildings, or
acquiring school furniture, fixtures or equipment; and such assent to
such indebtedness shall be deemed to be a sufficient showing of such
absolute need, unless otherwise provided by law.  Provided further,
that if a city or town has an absolute need therefor, such city or
town may, with the assent of three-fifths of the voters thereof
voting at an election to be held for that purpose, incur indebtedness
to an amount, including existing indebtedness, in the aggregate
exceeding five percent (5%) but not exceeding ten percent (10%) of
the valuation of the taxable property therein, to be ascertained from
the last assessment for state and county purposes previous to the
incurring of such indebtedness, and such assent to such indebtedness
shall be deemed to be a sufficient showing of such absolute need
unless otherwise provided by law.  Provided, further, that any
county, city, town, school district, or other political corporation,
or subdivision of the state, incurring any indebtedness requiring the
assent of the voters as aforesaid, shall, before or at the time of
doing so, provide for the collection of an annual tax sufficient to
pay the interest on such indebtedness as it falls due, and also to
constitute a sinking fund for the payment of the principal thereof
within twenty-five (25) years from the time of contracting the same,
and provided further that nothing in this section shall prevent,
under such conditions and limitations as shall be prescribed by law,
any school district from contracting with:
    (1)  certificated personnel for periods extending one (1) year
beyond the current fiscal year; or
    (2)  a school superintendent for periods extending more than one
(1) year, but not to exceed three (3) years beyond the current fiscal
year.
    (b)  If a county approves an exemption of household goods of the
heads of families and livestock employed in support of the family
from ad valorem taxation pursuant to the provisions of subsection (b)
of Section 6 of this article, the percentage limitations on
indebtedness as specified in subsection (a) of this section for
political subdivisions or political corporations located in any such
county shall be adjusted by multiplying the percentage levels
specified in subsection (a) of this section by the millage adjustment
factor as specified in subsection (b) of Section 8A of this article.
    (c)  If approved by the people, the amendment to this section
shall become effective January 1, 1993.