Minutes 12/22/1959 - Laserfiche WebLink

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14 TUESDAY DECEMBER 22, 1959 Section 2. In order to finance the cost of making said improvenents to said sewage disposal system, the City of Martinsville shall issue its negotiable bonds of the aggregate principal amount of $2,500,000 pursuant to and in accordance with Chapter 193 of the Acts of 1950 of Virginia, and also Article 3.1 of Chapter 22 of Title 15 of the Code of Virginia, 1950. Said bonds shall be issued under and in compliance with the pro- visions of Clause (b) of Section 127 of the Constitution of Virginia, and subject to the corrlitions prescribed by said clause, shall not be included within the otherwise authorized indebtedness of said City. Section 3. The Council has ascertained and hereby determines that the probable life of each of the improvements to said sewage disposal system, hereinbefore described, is a period of thirty years. Section 4. The principal of and interest on said bonds shall be payable from ad valorem taxes levied without limitation of rate or amount, if the revenues of said sewage disposal system are insufficient for that purpose. Said bonds shall be issued under and in compliance with the provisions of Clause (b) of Section 127 of the Constitution of Virginia, and, subject to the conditions prescribed by said clause, shall not be included within the otherwise authorized indebtedness of said City; provided, hmvever, that from and after five years from the date of the election authorizing said bonds, whenever and for so long as such sewage disposal system fails to produce sufficient revenue to pay for the cost of operation and administration, including the interest on such bonds, and the cost of insurance against loss by injury to persons at" property, and an annual amount to be covered into a sinking fund sufficient to pay at or before maturity, all such bonds, then all such bonds outstanding shall be included in determining the limitation of the power to incur indebtedness. Section 5. Said bonds shall bear interest at a rate which shall not exceed six per centum (6%) per annum. The maximum period within which said bonds shall mature shall not exceed thirty years from the date of their issue. Section 6. Acting pursuant to said Article 3.1 df the Code of Virginia, the Council of said City shall contract and agree with the purchaser of said bonds, and with each person, firm or corporation which may hereafter become the holder of any of said bonds or of any of the interest coupons representing interest payable thereon, that, until all of said bonds have been fully paid. and discharged in accordance with their terms, (1) said City will charge rates or fees for services rendered by said sewage disposal system; and (2) such rates or fees shall be fixed and maintained at a level which will produce sufficient revenues under the re- quirements of Clause (b) of Section 127 of the Constitution of Virginia, to prevent said bonds from being included in determining limitations of the power of said City to incur indebtedness, that is to say, sufficient revenues to pay for the cost of operation and administration of said sewage disposal system (including interest on bonds issued therefor) and the cost of insurance against loss by injury to persons and property, and an annual amount to be covered into a sinking fund sufficient to pay, at