Section 18
SEC. 18. Debt limits.&mdashAny other law to the contrary notwithstanding, the city may incur indebtedness or other obligation to the payment of which the faith and credit of the city is pledged at an amount not exceeding twenty per centum of the total assessed value of the taxable real estate in the city. As used in this section, the term "indebtedness" shall be construed to be the net figure obtained by deducting from the total outstanding indebtedness of the city all sinking fund assets and other reserves inviolably pledged or committed to its payment or retirement. The words "total outstanding indebtedness of the city as herein used shall be construed to include all indebtedness contracted in the previous year or years, whether bonded or of any kind whatever, but excluding the budgeted or estimated operating expenses of the city for the current fiscal year. For the purposes of this section, the assessed value of taxable real estate in the city shall be that used as a basis for the city tax levy for the fiscal year next preceding that in which the indebtedness is incurred.