§ 60. Temporary and funded debts. (a) Whenever the finance board, as that term is defined in section 2.00 of the local finance law, shall authorize the issuance of bonds or notes, it shall do so by ordinance.

(b) Provision shall be made for the payment of each annual installment of a funded debt and accrued interest on such funded debt in the year in which such principal and interest shall become due by the insertion of the proper sum in the annual estimate for the year in question. Bonds issued to provide for the supply of water may be paid out of water rents received by the city.