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The said bonds shall be serial bonds and 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 twenty-five years from its date and said bonds shall bear interest at a rate or rates to be hereafter determined by the City Council, upon the sale of said bonds, provided that the maximum rate of interest shall not exceed six per centum per annum. The principal and interest of said bonds shall be payable from ad valorem taxes without limitation of rate or amount, if the revenue of the sys- tem of water works is insufficient for that purpose, and said bonds are to be issued pursuant To Section One Hundred and Twenty-seven, Clause B, of the Con- stitution of Virginia, and are not to he'.included in determining the power of the City to incur indebtedness within the limitation prescribed by Section One Hundred and Twenty-seven, Clause B, of the Constitution of Virginia~ provided, however, that from, and after five years from the date of the election authoriz- ing the bonds, whenever and for so long as such system of water works fails to produce sufficient revenue to pay for the cost of its operation and administra- tion, (including interest on bonds issued therefor) and the cost of insurance against loss by injury to persons or property, and an annual amount ~o be covered into a sinking fund sufficient to pay, at or before maturity, all bonds issued on account Of said system of water works, then all such bonds outstand- ing shall be included in determining the limitation of the power of the City to incur indebtedness. Section II. No bonds shall be issued under this ordinance unless and until this ordinance shall have been approved by the affirmative vote of a majority of the qualified voters of the City of Portsmouth, voting mpon the question of their issuance under the applicable provisions of the Code of Virginia, and acts amendatory thereof and supplemental thereto. Should the said bonds be issued they shall be subject to no ~axation by the City of Portsmouth, and the coupons shall be received in payment of all dues, taxes and assessments due to the said City. The net revenue of said system of water works is hereby irrevocably pledged To the payl~ent of the principal and interest of said bonds as they severally become due, and the fees, rents and charges for the use of said system shall be maintained at $ level which will produce net revenue sufficient for the payment of said principal and interest and for any reserve fund deemed necessary for the efficient administration of said system and for the protection of the holders of said bonds. A sufficient amount of the revenue derived from the said system of water works, after deducting the cos~ of operation and administration, including interest on said bonds and the cost of insurance against the loss by injury to persons or property (if any) shall be set aside~annua~y and covered into s sink- ing fund to pay as they ma~ure all bonds issued under this ordinance. -2-