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<br />}O <br /> <br />l'UESDAY <br /> <br />AuarST 13. 1957 <br /> <br />Section 3. The Council has ascertained and hereby determines <br />that the probable life of each of the improvements to ssid <br />sewage disposal system, hereinbefore described, is a period <br />of thirty years. <br /> <br />Section 4. The principal of and interest on said bonds shall <br />be payable from ad valorem taxes levied without limitation <br />of rate or amount, if the revenues of said sewage disposal <br />system are insufficient for that purpose. Sajd bonds shall <br />be issued under and in compliance with the provisions of <br />Clause (b) of Section 127 of the Constitution of Virginia, <br />and, subject to the conditions prescribed by said clause, <br />shall not be included within the otherwise authorized <br />indebtedness of said City; provided, however, that from and <br />after five years from the date of the election authorizing <br />said bonds, whenever and for so long as such sewage disposal <br />system fails to produce sufficient revenue to pay for the cost <br />of operation and administration, including the interest on such <br />bonds, and the cost of insurance against loss by injury to <br />persons or property, and an annual amount to be covered into <br />a sinking fund sufficient to pay at or before maturity, all such <br />bonds, then all such bonds outstanding shall be included in <br />determining the limitation of the power to incur indebtedness. <br /> <br />Section 5. Said bonds shall bear interest at a rate which shall <br />not exceed six per centum (6%) per annlJlll. The maxiInum period <br />within which said bonds shall mature shall not exceed thirty years <br />from the date of their issue. <br /> <br />Section 6. Acting pursuant to said Article 3.1 of the Code of <br />Virginia, the Council of said City shall contract and agree with <br />the purchaser of said bonds, and with each person, firm or <br />corporation which mRY hereafter become the holder of any of said <br />bonds or of any of the interest coupons representing interest <br />payable thereon, that, urti1 all of said bonds have been fully <br />paid and discharged in accordance with their terms, (1) said <br />City will charge rates or fees for services rendered by said <br />sewage disposal system; and (2) such rates or fees shall be <br />fixed and maintained at a level which will produce sufficient <br />revenues under the requirements of Clause (b) of Section 127 of <br />the Constitution of Virginia, to prevent said bonds from being <br />included in determining limitations of the power of said City <br />to inCl..:T indebtedness, that is to say, slJfficient revenues to <br />pay for the cost of operation and administration of said sewage <br />disposal system (including interest on bonds issued therefor) <br />and the cost of insurance against loss by injury to persons and <br />property, and an annual amount to be covered into a sinking fund <br />sufficient to pay, at or before maturity, all bonds issued to <br />finance said sewage disposal system; and (3) the revenues which <br />the City derives from said sewage disposal system in each fiscal <br />year shall, to the extent necessary, be first applied to the <br />payment of such cost of operation and administration during such <br />fiscal year and to the payment of such annual amount payable <br />in such fiscal year; and (4) in order to give guarantees for the <br />faithful observance of such stipulations, said City shall <br />segregate and keep segregated, from all other funds, all revenues <br />