Alabama Const. art. 12, § 225 — Alabama Constitution / Article 12 / Section 225
Indebtedness of municipal corporations — Limitation; ex ception as to Sheffield and Tuscumbia; limitation not applicable to obligations or indebtedness exempted by Constitution or amendments thereto. 
Status: in_force

Sec. 225. Indebtedness of municipal corporations — Limitation; ex ception as to Sheffield and Tuscumbia; limitation not applicable to obligations or indebtedness exempted by Constitution or amendments thereto. No city, town or other municipal corporation having a population of less than six thousand, except as hereafter provided, shall become indebted in an amount, including present indebtedness, exceeding twenty per centum of the

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assessed value of the property therein, except for the construction of or purchase of waterworks, gas or electric lighting plants, or sewerage, or for the improvements of streets, for which purposes an additional indebtedness not exceeding three per centum may be created; provided, this limitation shall not affect any debt now authorized by law to be created, nor any temporary loans to be paid within one year, made in anticipation of the collection of taxes, not exceeding one fourth of the annual revenues of such city or town. All towns and cities having a population of six thousand or more are hereby authorized to become indebted in an amount, including present indebtedness, not exceeding twenty per centum of the assessed valuation of the property therein, provided that there shall not be included in the limitation of the indebtedness of such last described cities and towns the following classes of indebtedness, to-wit: Temporary loans, to be paid within one year, made in anticipation of the collection of taxes and not exceeding one fourth of the general revenues, bonds, or other obligations already issued, or which may hereafter be issued for the purpose of acquiring, providing, or constructing school houses, waterworks, and sewers; and obligations incurred and bonds issued for street or sidewalk improvements, where the cost of the same, in whole or in part, is to be assessed against the property abutting said improvements; provided, that the proceeds of all obligations issued as herein provided in excess of said twenty per centum shall not be used for any purpose other than that for which said obligations were issued. Nothing contained in this article shall prevent the funding or refunding of valid obligations existing at the time of such funding or refunding. This section shall not apply to the cities of Sheffield and Tuscumbia. The limitations specified in this section shall not be applicable to any obligations or indebtedness that may be exempted from the said limitations by the provisions of any portion of this Constitution, including any amendment thereto at any time adopted.

Sec. 225.01. Certain obligations of municipality having less than 6,000 inhabitants not indebtedness within meaning of Section 225. Obligations hereafter incurred and securities hereafter issued for any of the following purposes and under the following circumstances by a municipality having a population of less than six thousand inhabitants shall not be deemed to constitute indebtedness of such municipality within the meaning of section 225 of this Constitution: (a) for the purpose of acquiring, providing or constructing sanitary or storm water sewers, or street or sidewalk improvements, the cost of which, in whole or in part, is to be assessed against the property drained, served or benefited by such sewers or abutting such improvements; or (b) for the purpose of acquiring, providing or constructing 229

school houses, provided that there shall be pledged for payment of the principal of and interest on such obligations or securities a tax which the governing body of such municipality shall have determined, upon the basis of its estimate of the revenues from said tax, will be sufficient to pay said principal and interest at their respective maturities.