§ 15-7-109 — Limitations on indebtedness; exceptions

No debt in excess of the taxes for the current year may be
created by any city or town, except local improvements as
provided by law, unless the proposition to create the debt is
approved by a vote of the people. No city or town may create any
indebtedness exceeding four percent (4%) of the assessed
valuation of the taxable property except an additional
indebtedness not exceeding four percent (4%) of the assessed
valuation of the property may be created to build and construct
sewerage systems. This limitation does not apply to the
construction, establishing, extending and maintaining of water
works and supplying water for the use of the city or town and
its inhabitants.