The Prescott daily news., 1914-06-03
MUNICIPAL BOND AMENDMENT

Proposed Amendment No. IA to the
Constitution of Arkansas to be en-
titled "An Amendment of Section 16
of the Constitution so as to permit
cities and towns under certain condi-
tions to issue interest bearing bonds
and other evidences of Indebtedness.
FOR AMENDMENT NO. IA.
AGAINST AMENDMENT NO. IA.
Be it Enacted by the People of the
State of Arkansas;
That Section ! of Article 16 of the
Constitution of the State of Arkan-
sas be amended so as to read as fol-
| lows:
article 16, Section /. Neither the
State nor any city, county, town or
other municipality in this State shall
ever loan its credit for any purpose
whatever; nor shall any county, city,
town or municipality ever issue any
| Understanding evidences of indebted
ness, except such bonds as may be
authorized by law to provide for and
secure the payment of the indebted
ness existing at the time of the adop-
ton of the Constitution of 1874, and
the State shall never issue any in
terest-bearing treasury warrants or
script.
Provided, that Incorporated towns
of l 900 or more population, as shown
by the next preceding Federal census
or by census taken for that purpose
by the municipal authorities of said
towns, and cities of the first and sec
ond class, may issue, by and with the
consent of a majority of the quail
fled electors of said municipalities vot-
ing on the question at an election held
for that purpose, bonds or other in
terest-bearing evidences of indebted
ness in sums and for the purpose
approved by such majority at such
election as follows, to-wit
For the funding or refundng of any
existing Indebtedness incurred prior
to the adoption of this amendment;
for the requirement, construction, or
maintenance of public highways,
streets, alleys or boulevards; for the
purchase of equipment of parks or
play grounds; for the construction of
sewers; for the purchase or construc-
ton of city or town halls, auditor
| stations or equipment, viaducts or
bridges; and for any and all public
buildings, structures or grounds that
may be required by said municipality
for the proper and economical admin
istration of its government; and for
any other public improvements of a
general nature for the use and bene-
| fit Of said municipality.
Provided, that no municipality shall
ever grant financial aid towards the
construction of railroads or other pri-
vate enterprises operated by any pri-
vate person or corporation; and, pro-
vided further, that any of the afore-
said improvements may be within or
without the corporate limits of said
municipalities.
No money raised for specific pur-
pose shall be used for any other or
| different purpose.
! No bonds or other Understanding
evidences of Indebtedness issued under
the authority of this amendment shall
ever be sold at less than par, and
when issued by cities of the first class
theys hall not bear a greater rate of
interest than five (5) per cent per an
man, and when issued by cities of
the second class and by such incorpo-
rated towns as aforesaid shall not
bear greater rate of interest than
SIX t6) per cent per annum. In or
der to provide for the payment of
bonds and other interest bearing evil
dences of indebtedness, and the in
terest thereon, a special tax, not to ex-
coed seven CD mills on the dollar. in
addition to the rate of taxation now
permitted, may be levied by said mu-
inequalities on the taxable property
therein; and any of the said munich
palltles issuing any bonds or other in
terest-bearlng evidences of indebted
ness, shall before or at the time of
dong So provide for the collection of
a direct annual tax, not exceeding the
amount limited as above, sufficient to
| pay the interest on such bonds or
other Understanding evidences of in
! debtedness as they fall due, and also
to pay and discharge the principal
thereof, within thirty-five (35- years
from the time of issuing the same
Provided further, that bonds or other
Understanding evidences of indebt-
edness shall not be issued for an
amount in the aggregate of more than
seven (7) per cent of the assessed val
uatlon OF all real and personal proper
ty in the municipality proposing to is
sue the same, according to the last
general assessment. Said bonds and
other Understanding evidences of in
debtedness shall be serial, and shall
be paind off as rapidly as the income
derived from said tax will permit.
Provided further, that bonds may be
issued by said municipalities for the
purpose of acquiring, purchasing, ex-
tending, improving, enlarging, build
ing or constructing water works or
lighting plants with the assent of a
majority of the voters of said NUM-
cipalities voting on such question.
Said municipalities shall be authori-
'zed at any time to issue such bonds.