§ 7.08. Limitations on urban bonds.

No urban tax bonds shall be issued pursuant to this article which shall cause the total net bonded indebtedness payable from ad valorem taxes incurred for the urban services district (including all tax bonds theretofore issued for the urban services district and then outstanding, and the amount of any tax bonds theretofore issued by the City of Nashville and then outstanding which are allocated to the urban services district by this article), after deduction of all sinking funds on hand for the payment of principal, to exceed fifteen (15%) percent of the assessed valuation of taxable property in the urban services district as last completed and determined prior to the issuance of such tax bonds. In computing the bonded indebtedness incurred for the urban services district for the purpose of this paragraph there shall be excluded:

(a)

All urban bonds issued in anticipation of the collection of special assessments whether or not such urban bonds are also payable from ad valorem taxes.

(b)

All revenue bonds issued for the urban services district or any part thereof which are payable solely from the revenues derived from the operation of any utility or other revenue producing enterprise or facility.

(c)

All urban bonds payable from both ad valorem taxes and revenues derived from the operation of any utility or other revenue producing enterprise or facility, to the extent that such utility or other revenue producing enterprise or facility was self-liquidating during the immediately preceding fiscal year, in that the revenues derived therefrom, after deducting all current expenses of operation and maintenance, were sufficient to pay all principal of and interest on such bonds due in such fiscal year; or if such utility or other revenue producing enterprise or facility was not fully self-liquidating in such fiscal year, then a part of such bonds shall be excluded, which part shall be the same proportion of the total amount of such bonds which the amount of net revenues derived from such utility or revenue producing enterprise or facility in such fiscal year bears to the amount of net revenues which would have been required to make such utility or revenue producing enterprise or facility fully selfliquidating in such fiscal year.

(d)

Urban bonds issued under the authority of any general law of the State of Tennessee as distinguished from urban bonds issued under sole authority of this article.

(e)

Urban bonds not exceeding two hundred thousand ($200,000) dollars in any year, issued to provide funds to repair or to replace any public building, work or structure rendered unsuitable for use by disaster when determined by the council to be essential to the public health, safety or convenience.

(f)

Urban tax bonds in the aggregate principal amount of three hundred thousand ($300,000) dollars issued for the purpose of acquiring furnishings and equipment for metropolitan government purposes.

No approval of qualified electors at an election shall be required for the issuance of any of the bonds referred to in subparagraphs (a) to (f) above, and the referendum upon petition provisions of this article shall not apply to such bonds.