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Section 1. (a) Pursuant to Article VII, Section lO(a) C2) of the 1970 Constitution of Virginia, and Chapter 5 of Title 15.1 of the Code of Virginia~ in order to make certain capital improvements, extensions and additions to the water and sewage system, which constitutes a revenue producing undertaking of the City, it is expedient_ that the City of Portsmouth shall borrow the su~ of Eiqht Million Dollars ($8,000,000.), and there shall be issued in the na~e of and on behalf of the City of Portsmouth, Virginia, Eight Million Dollars ($8,000,000.) of Public Utility Bonds, and the proceeds ar!sing from the sale of said bonds, or any of them, shall be applied to the payment of the costs of such improvements, extensions and additions and to no other pur- pose. (b) The said bonds shall be issued at one time, or part thereof from time to time as the City Council shall direct, and each issue shall be payable not exceeding forty years from its date and said bonds shall bear interest at the rate or rates to be hereafter determined by the City Council, upon the sale of said bonds, provided that the maximum rate of i~terest shall not exceed-the maximum rate of interest authorized b~ law at the time of sale of the bonds. (c~ The principal and interest of said bonds shall be payable from ad ~alorem taxes without l±mitation of rate or amount, insuffic±ent for that purpose. Said bonds are to be issued pursuant to'~ticle VII, Section lOfa) (2) of the Constitution of Virginia, and are not to be included in determining the power of the C±ty to incur indebtedness within the limitation prescribed by Article VII, Section lO[a) of the Constitution of virginia, but from and after five years from the date of the election on-tke question~of the issuance of said bonds, whenever and for so long as such r~venue pro- ducing undertaking fails tOproduce s~fficlent revenue to pay for cost of operation and ad~lnistration fincluding interest on bonds issued therefor~ and the cost of insurance ~gainst loss by injury to persons or~p~operty and an annual amount to be placed into a sinking fund sufficient to pay, at or before maturity~ all bonds issued on account of said under- taking, all such bonds outstanding shall-be include~ in determining the limitation of the power of the City to incur indebtedness.