(a) The current revenues of the City shall consist of money raised by taxation, from fines and other lawful sources, and such revenues shall constitute the entire sum from which appropriations and payments are to be made, according to law, by or under the authority of the City Council. The credit of the City, other than by temporary loans, not exceeding $3.50 on the dollar of the grand list of the City for the time being shall not be pledged except by authority of the legal voters of the City. Such temporary loans and all debts incurred by the City Council shall be deemed expenditures and shall be paid by the City Council during the fiscal year in which they are contracted.

(b) All appropriations for specific purposes made at any annual or special meeting in said City shall, unless otherwise directed by the voters, be paid out of current revenues for that year, and shall be deemed as expenditures by the City Council.

(c) The City Council shall not exceed in expenditures except by express authority of the legal voters of the City, said current revenues of the City during any year. If it should happen that said current revenues of the City shall have been expended before the end of any fiscal year, and there remain necessary or desirable expenditures to be met, the City Council shall call a special meeting of the legal voters of the City to consider what shall be done.

(d) The Mayor and Board of Aldermen, without special direction of the voters of said City, shall not draw, sign, or approve warrants to pay expenditures or appropriations in excess of current revenues. The City Treasurer, without special direction of the voters of said City, shall not honor or pay warrants in excess of current revenues. Any official violating the provisions of this section shall be liable to refund to the City the full amount of all warrants so drawn, signed or approved or so honored or paid.