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WHEREAS, Article VII, Section 10 (a) (2) of the Constitution of Virginia, 1971, requires the ordinance authorizing the issuance of such bonds to be approved by the affirmative vote of the majority of the qualified voters of the City voting upon the question of their issuance at the general election next succeeding the enactment of the ordinance, or at a special election held for that purpose; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA: SECTION 1. (a) Pursuant to Article VII, Section 10 (a) (2) of the Constitution of Virginia, 1971, and Chapter 5.1 of Title 15.1 of the Code of Virginia, 1950, it is necessary and expedient that the City shall contract a debt and issue, and there are hereby authorized to be issued, Twenty-two Million Nine Hundred Thousand and 00/100 Dollars ($22,900,000.00) principal amount of City of Portsmouth, Virginia, General Obligation Public Utility Bonds (the "Bonds") in order to finance the costs of capital improvements, extensions and additions to the water and sewer system of the City, which constitutes a revenue-producing undertaking of the City. The proceeds arising from the sale of the Bonds shall be applied to the payment of the costs of capital improvements, extensions and additions to the water and sewer system of the City and to no other purpose. (b) As determined by resolution of the Council, or determined by the Director of Finance of the City which determination shall be approved or ratified by resolution of the Council adopted prior to or at the time of sale of the particular Bonds: the Bonds may be sold in their entirety at one time, or in part from time to time, and the Bonds of each issue shall be in such form, be of such denominations, be payable at such time or times not exceeding forty (40) years from their date, bear interest at a maximum rate of interest not exceeding the maximum rate authorized by law at the time of the sale of the Bonds, be sold in such manner and have such other details as are deemed necessary or advisable. The City may sell all or part of the Bonds alone or contemporaneously with any other general obligation bonds or with any general obligation bond anticipation notes of the City. (c) The full faith and credit of the City are irrevocably pledged to the punctual payment of the principal of and premium, if any, and interest on the Bonds as the same become due. In each year while the Bonds, or any of them, are outstanding and unpaid, there shall be assessed, levied and