Minutes 09/19/1957 - Laserfiche WebLink

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THURSDAY SEP'TIMBER 19, 1957 Section 3. The the probable life of system, hereinbefore Council has ascertained and hereby determines that each of the improvements to said sewage disposal described, is a period of tJlirty years. Section 4. The principal of and interest on said bonds shall be payable from ad valorem ta.'Ces 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 cOI:"lpliance 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 other1<vise authorized indebtedness of said City; prov:i.ded, however, that from and after five years from the date of the election authorizing said bonds, ~Vihenever and for so long as such sewage disposal systeEl fails to produce sufficient revenue to pay for the cost of operation and administration, includinG the interest on such bonds, a.nd the cost of insurance against loss by injury to persons or property, and an annual amo1mt to be c overed into a sinking fund sufficient to pay at or before maturity, all such bonis, 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 vrhich shall not exceed six per centlilll (6%) per annUlTl. 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 of the Code of Virginia, the Council of said City shall contract and agreo with the purchaser of said bonds, and V[itJl each person, firm or corporation ",rhich may hereafter become the holder of any of said bonis or of any of the interest coupons representing interest payable thereon, that, until all of s,-,id bonds have been fully paid and discharged in accordal1ce with their terms, (1) s3j.d 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 requirements of Clause (b) of Section 127 of the Constitution of Virginia, to prevent said bO~lds from bein::: 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 sewace disDosal 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 or before maturi~, al180nds issued to finance said sewage disposal system; and (3) the revenues 'which the City derives from said sevlage disposal systeYIl in each fiscal year shaD., to the extent necessary, be first applied to the pa~l111ent of such cost of operation and administration during such fiscal ye;:'r cmd to the payrrent of such annual amount payable in such fiscal yea:~; and (4) in order to give guarantees for the faithful observance of such stipulations, s2id City shall secregate and keep segregated, from 211 other funds, all revenues derived by the City from its operation and ownership of said sewage disposal system. Section 7. None of the bonds hereby authorized shall be issued until all of s aid bonds shall have been approved by the affirrik'ltive vote of a majority of the qualified voters of scdd City voting on the question of issuing said bonds, at an election called for that purpose, which majority shall imlude a majority of the qualified registered voters ~ming real estate in said City and voting in such election on such question.