CHAP. 336.—An ACT to amend and re-enact an act approved March 13,
1908, entitled ‘“‘an act providing the method by which cities and towns
in this commonwealth may vote upon the issuance of bonds contem-
plated by clause ‘B’ of section 127 of the constitution.”

Approved March 14, 1912.

1. Be it enacted by the general assembly of Virginia, That
an act of the general assembly of Virginia, approved March thir-
teenth, nineteen hundred and eight, entitled ‘an act providing
the method by which cities and towns in this commonwealth may
vote upon the issuance of bonds contemplated by clause ‘B’ of
section one hundred and twenty-seven of the constitution,” be
amended and re-enacted so as to read as follows:
That when it is proposed by any citv or town in this com-
monwealth, now or hereafter existing, to borrow money and issue
bonds contemplated by the provisions of clause “B,” section one
hundred and twenty-seven of the constitution, not to be included
within the otherwise authorized indebtedness of such munici-
pality, it shall be the duty of the council or the board of control,
if there be one, to adopt an ordinance reciting the expediency of
borrowing money and the issuance of bonds therefor to a specific
amount by the municipality for the purpose or purposes ¢ontem-
plated by the provisions of clause “‘B,”’ section one hundred and
twenty-seven of the constitution, which ordinance, if passed by a
council, shall be upon recorded affirmative vote of a majority of
all of the members elected to the council, or to each branch
thereof, where there are two branches; and if such ordinance be
vetoed by the mayor, it may be adopted, notwithstanding such
veto, in the manner prescribed by section one hundred and
twenty-three of the constitution. After the adoption of such or-
dinance a certified copy thereof shall be forthwith presented to
the corporation or circuit court having jurisdiction over such city
or town, or to the judge thereof in vacation, which court or judge
shall, by an order entered in term time or vacation, direct the
proper election officers of such municipality to take such steps
and prepare such means as may be necessary to submit to the
qualified voters of such municipality for determining the question
whether such bonds shall be issued, and the court or judge shall
make such order as may be proper to give due publicity to such
election.

Such election shall be conducted, in the manner prescribed by
law for the conduct of regular elections, by the regular election
officers of such municipality. The election shall be by secret bal-
lot, and the ballots used shall contain the following: On one line
the words ‘“‘for bond issue,” and on another line the words
“against bond issue.”’ Returns of such election shall be forth-
with made to the court having jurisdiction over such city or town,
or to the judge thereof in vacation; and if it shall appear that a
majority of the qualified voters voting at such election shall be
against such proposed bond issue an order shall be entered of re-
cord accordingly, and no other election for a similar purpose shall
be held within one year after such election. But if a majority of
the qualified voters at such election shall be for such bond issue
the court or judge thereof shall enter an order accordingly, a copy
of which shall be forthwith certified by the clerk of such court to
the council, or to the board of control, and the municipal authori-
ties shall be thereupon fully authorized and empowered to prepare
and issue and to sell or negotiate bonds upon the faith, credit and
property of such municipality to the amount as authorized. Such
bonds may be negotiated or sold for the purpose or purposes of
such municipality constructing, purchasing, acquiring or other-
wise controlling a work or works, plant or plants, svstem or sys-
tems of a public utility character, whether wholly within, or
partly within and partly without, such municipality, in such man-
ner and upon such terms as may be determined by the recorded
affirmative vote of a majority of all of the members elected to the
council, or to each branch thereof, where there are two.

2. In order to facilitate the sale of said bonds, and to render
them desirable to purchasers, the council of the city or town pro-
posing to issue same shall have the power to contract with the
purchasers thereof that the rates to be charged for water or other
commodity, for or in connection with the supply of which the
bonds are to be issued, shall be fixed and maintained at a level
that will produce sufficient revenue under the requirements of
clause “‘B” of section one hundred and twenty-seven of the con-
stitution, to prevent said bonds from being included in determin-
ing the limitation of the power of said city or town to incur in-
debtedness; and said council shall have the power to give guar-
antees for the faithful observance of such a contract, including
the establishment of a commission, to be selected in any manner
desired by the said council, vested with such powers as to the
management of the said water system, or other undertaking, or
the fixing of rates therefor, or both, as to the said council may
seem proper.

3. Nothing in this act shall repeal, amend, impair or in any
wise affect any special rights, privileges, restrictions or limita-
tions now contained inyany city or town charter of this common-
wealth, or in any act or acts amendatory thereof.