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15.1 of the Code of Virginia, 1950~ in order to make certain capital improvements, extensions and additions to the water and sewerage system, which constitutes a revenue producing under- taking of the City. it is expedient that the City of Portsmouth shall borrow the sum of Eight Million ($8,000,000.) Dollars, and there shall be issued in the name of and on behalf of the City of Portsmouth, 'Virg!nia, Eight Million ($8,000,000.) Dollars of Public Utility Bonds, and the proceeds arising 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 purpose. (b) The said bonds shall be issued at one time, or a 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 interest shal! not exceed the maximum rate of interest authorized by law at the time of sale of the bonds. (c) The principal and interest of said bonds shall be payable from ad valorem taxes without limitation of rate or amount~ if the revenues of the water and sewerage system undertaking are insufficient for that purpose~ Said bonds are to be issued pur- suant to Article VII, Section 10(a) (2) of the Constitution of Virginia, and are not to be included in determining the power of the City to incur indebtedness within the limitation prescribed by Article VII, ~ection 10(a) of the Constitution of Virginia~ but from and a~ter five years from the date of the election on the question of the issuance of said bonds, whenever and for so long as such revenue producing undertaking fails to produce sufficient revenue to pay for cost of operation and administration (includ- ing interest on bonds issued therefor) and the cost of insurance against loss by injury to persons or property and an annual amount to be covered into a sinking fund sufficient to pay, at or before maturity, all bonds issued on account of said undertaking, all such bonds outstanding shall be included in determining the limita- tion of the power of the City to incur indebtedness. Section 2. No bonds shall be issued under this ordinance unless and until their issuance shall have been approved by the af- firmative vote of a m~jority of the qualified voters of the City of Portsmouth, voting upon the question of their issuance under the applicable provisions o~ the Code of Virginia~ and acts amenda- tory thereof and supplemental thereto. -2-