Any city of the second class, shall have power to issue and sell negotiable short term promissory notes of the city, payable not more than three years from the date thereof, for the purpose of raising funds for any one or more of the following purposes: (a) To pay judgments against the city; (b) to pay claims for damages finally determined against the city in connection with municipal improvements; (c) to pay other items of floating indebtedness to the city; (d) to pay the engineering, architectural and other expenses incurred, or to be incurred in connection with contracts for municipal improvements; and (e) to pay for the construction of public improvements within the city and the preliminary expenses in connection therewith.