§ 3. No municipal or other corporation (other than a county, city,
town, village, school district or fire district, or a river improvement,
river regulating, or drainage district, established by or under the
supervision of the department of conservation) possessing the power (a)
to contract indebtedness and (b) to levy taxes or benefit assessments
upon real estate or to require the levy of such taxes or assessments,
shall hereafter be established or created, but nothing herein shall
prevent the creation of improvement districts in counties and towns,
provided that the county or town or towns in which such districts are
located shall pledge its or their faith and credit for the payment of
the principal of and interest on all indebtedness to be contracted for
the purposes of such districts, and in ascertaining the power of any
such county or town to contract indebtedness, such indebtedness shall be
included, unless such indebtedness would, under the provisions of this
article, be excluded in ascertaining the power of a county or town to
contract indebtedness. No such corporation now existing shall hereafter
contract any indebtedness without the consent, granted in such manner as
may be prescribed by general law, of the city or village within which,
or of the town within any unincorporated area of which any real estate
may be subject to such taxes or assessments. If the real estate subject
to such taxes or assessments is wholly within a city, village or the
unincorporated area of a town, in ascertaining the power of such city,
village or town to contract indebtedness, there shall be included any
indebtedness hereafter contracted by such corporation, unless such
indebtedness would, under the provisions of this article, be excluded if
contracted by such city, village or town. If only part of the real
estate subject to such taxes or assessments is within a city, village or
the unincorporated area of a town, in ascertaining the power of such
city, village or town to contract indebtedness, there shall be included
the proportion, determined as prescribed by general law, of any
indebtedness hereafter contracted by such corporation, unless such
indebtedness would, under the provisions of this article, be excluded if
contracted by such city, village or town.