54 THE FISCAL PROBLEM IN MISSOURI 
erty. Such bonds are limited to 209% of the value of the 
taxable property in the city, and the principal may not 
constitute an obligation enforcible out of the funds raised 
by taxation. However, there is nothing to prevent the issue 
of city bonds other than public utility bonds for the purpose 
of obtaining such public utilities, provided the 10%, and 
other requirements are met. Although it is provided that 
the principal and interest on public utility bonds shall be 
paid out of the earnings or the sale of the utilities, a city 
may provide by ordinance for the payment of the interest 
or principal falling due in any year out of the revenue raised 
by means of general taxation. 
Section 12a of Article X provides that, by a two thirds 
referendum vote, cities having a population of not more than 
30,000 inhabitants may become indebted to an amount not 
exceeding an additional 10%, of the taxable valuation for 
the purpose of purchasing or constructing certain utility 
plants, to be owned exclusively by the city. The usual 
provision concerning arrangement for the necessary receipts 
from taxation for debt services is included. Bonds issued 
under this section must also be retired within twenty years. 
Section 13 of Article X provides that “private property 
shall not be taken or sold for the payment of the corporate 
debt of a. municipal corporation.” This section, while not 
significant from the standpoint of debt limitation, is impor- 
tant in that clear recognition is given to the fact that in- 
debtedness of a governmental entity is dependent on the 
taxing power for interest and principal payments and is not 
to be construed in any circumstances as a direct obligation 
of property owners within the debt-incurring jurisdiction. 
Two sections® of Article 14, which were the result of 
amendments approved in November, 1924, refer specifically 
to the indebtedness of Kansas City. These amendments 
gave Kansas City the power to issue serial bonds for public 
improvements and to assume the cost of several sewer proj- 
ects and to refund the special assessments that had been 
made or might later be made. 
1Sections 14 and 15.