§ 21-03-04 — Grant of power to borrow - General limitations of indebtedness

1. A municipality may borrow money and issue municipal obligations for the purpose
specified and by the procedure provided in this chapter, and for no other purpose and
in no other manner, except as otherwise provided in section 21-03-02. A municipality
may not incur indebtedness in any manner or for any purpose in an amount which,

with all other outstanding indebtedness of the municipality, exceeds five percent of the
assessed value of the taxable property in the municipality, except:
a. An incorporated city, by a two-thirds vote of the qualified voters of the city voting
upon the question at a primary or general election, may increase the limit of
indebtedness three percent on the assessed value beyond the five percent limit,
and a school district, by a majority vote of the qualified voters of the school district
voting upon the question at a primary or general election, may increase the
limitation of indebtedness five percent on the assessed value beyond the five
percent limit.
b. A county or city, when authorized by a majority vote of the qualified voters of the
county or city voting upon the question at a primary or general election, may
issue bonds upon any revenue-producing utility owned by a county or city, for the
purchase or acquisition of the utility, or the building or establishment of the utility,
in amounts not exceeding the physical value of the utility, industry, or enterprise.
c. An incorporated city, if authorized by a majority vote of the qualified voters of the
city voting upon the question at a primary or general election, may become
indebted in any amount not exceeding four percent of the assessed value,
without regard to the existing indebtedness of the city, for the purpose of
constructing or purchasing waterworks for furnishing a supply of water to the
inhabitants of the city or for the purpose of constructing sewers, and for no other
purposes, but the aggregate of the additional indebtedness for waterworks and
sewers may not exceed four percent over the limitations of indebtedness in this
section.
2. All bonds or obligations in excess of the amount of indebtedness permitted by this
chapter, given by any municipality as defined in this chapter, are void.