§8-16-11. No municipality is to incur any obligation not payable
from proceeds of bonds; exemption from taxation.
Nothing in this article contained shall be so construed as to
authorize or permit any municipality or municipalities to make any
contract or incur any obligation of any kind or nature, except such
as shall be discharged or payable solely from the funds provided
under the authority of this article. Funds for the payment of the
entire cost of the works shall be provided by the issuance of
revenue bonds of the municipality or municipalities, the principal
and interest of which bonds shall be payable solely from the
special fund for such payment herein provided for, and said bonds
shall not in any respect be a corporate indebtedness of such
municipality or municipalities. All such bonds and the interest
thereon, and all properties and revenues and income derived from
such municipal public works, shall be exempt from all taxation by
this state, or any county, municipality, political subdivision or
agency thereof. All of the details of such bonds and the issuance
thereof shall be determined by ordinance of the governing body or
bodies.