§ 45-12-2 - Maximum aggregate indebtedness.
SECTION 45-12-2
§ 45-12-2 Maximum aggregate indebtedness.– Except as provided in § 45-12-11, no city or town shall, without specialstatutory authority, or ministerial approval as provided for in §45-12-2.1 incur any debt for money borrowed which would increase its aggregateoutstanding principal indebtedness not excepted by law from the provisions ofthis section to an amount greater than three percent (3%) of the full assessedvalue of the taxable property within the city or town, but the amount of anyborrowing in anticipation of taxes which is authorized or validated by §45-12-4, and the amount of any fund held on account to pay such outstandingindebtedness shall be deducted in computing that indebtedness. In computing thevalue of taxable property for purposes of this section motor vehicles andtrailers shall be valued at full value and without regard to the assessed valuereductions provided for in § 44-34.1-1. Any city or town may, withoutspecial statutory authority, incur debt to an aggregate amount, as with theother outstanding indebtedness of the city or town not deductible under theforegoing provisions, which shall not exceed the limitation contained in thissection.