2352                                    MUNICIPAL CHARTERS

money as may be necessary, provided that the total outstanding long-term
indebtedness does not exceed at any one time a total of five per centum (5%) of the
assessed valuation of the taxable real property in the City.

B. APPROVAL OF BORROWING. The Council is prohibited from borrowing
money for any purpose, except for improvements for which a benefit assessment
has been or will be levied to recover the entire cost of said improvements, unless
first approved by a majority vote at a regular or special municipal election. If the
money to be borrowed is to be used for more than one specific purpose, each such
purpose and the amount of money proposed for each shall be listed as a separate
question on the ballot.

SECTION 17. SETTLEMENT OF CLAIMS.

The Council may settle in its discretion, claims and suits, either at law or in
equity, or whether such claim may be based upon a suit already instituted or not,
whenever the cause of action or claim arises out of the negligence or wrongful act,
whether of commission or omission, of any officer or employee of the City, for
whose negligence or acts the City, if a private individual, would be prima facie
liable to respond to damages, irrespective of whether such negligence occurred or
such acts were done in the performance of a municipal or a governmental function
of the City. In the settlement of any claim under the provisions of this Section, the
City shall not pay to any claimant an amount in excess of Five Hundred Dollars
($500.00), and any settlement so authorized may be paid out of any money which
the City may have in its general funds. Nothing herein contained shall be
construed as depriving the City of any defense it may have to any suit whether at
law or in equity, which may be instituted against it or to give any person,
corporation, partnership or association, any right to institute any suit against the
City which did not exist prior to June 1, 1953. No action taken by the City in an
effort to effectuate a settlement of any claim or suit authorized to be settled by the
provisions of this Section shall be taken as an admission of liability on the part of
the City, or otherwise used against the City respecting its liability or asserted to be
any liability of the City in any suit instituted by a claimant to enforce his claim.

SECTION 18. PURCHASING AND CONTRACTS.

The Mayor shall be responsible for all purchases made by or on behalf of the
City. The Council shall, by ordinance, provide procedures for the purchase or all
supplies, materials, equipment, contractual services, and capital improvements for
the City. Sealed competitive bids, solicited by advertising in at least one newspaper
having general circulation within the City, shall be obtained for all purchases which
are estimated to cost in excess of one thousand dollars ($1,000), provided that
emergency purchases and purchases for which competitive bids cannot be obtained
may be made without regard to this procedure.

SECTION 19. REFERENDUM.

A. PETITION. If, before the expiration of twenty (20) calendar days following
approval of any ordinance or resolution, a petition is filed with the Board of
Elections containing the signatures of not less than fifteen per centum (15%) of the
registered voters of the City and requesting that the ordinance or resolution, or any
part thereof, be submitted to a vote of the registered voters of the City for their
approval or disapproval, the Council shall have the ordinance or resolution or the
part thereof requested for referendum, submitted to a vote of the registered voters
of the City at the next regular City election or, in the Council's discretion, at a
special election occurring before the next regular election. Each person signing the
petition shall indicate thereon both his name and residence address. Upon receiving
the petition, the Board of Elections is directed to verify that it has been signed by