JOHN WALTER SMITH, ESQ., GOVERNOR.

and for one year thereafter, and the expense of preparing
plans and specifications and of superintendence of construc-
tion shall be paid from the proceeds of the sale of the bonds
hereby authorized.

747

SEC. 5. That water shall be furnished in said town for
domestic and other uses, at rates to be agreed upon; that the
net proceeds from the water service herein provided for shall
be applied, first, to the payment of the interest on the bonds
hereby authorized to be issued and sold; that in case the pro-
ceeds from said water service shall at any time be estimated
by the Mayor and Council to be insufficient for the pay-
ment of the interest on bonds as aforesaid for the
ensuing year, the estimated deficiency in said inter-
est shall be assessed pro rata against all taxable
property within the limits of the town, according to its assessed
valuation, including all improvements, and shall be levied
and collected as other taxes against such property; that as
soon as there shall be a surplus in the funds received from

Water rates.
How proceeds
applied.

water service, after the payment of interests on bonds as herein
provided, said surplus shall be held in reserve as a sinking-
fund, and shall be applied to the redemption of the bonds
herein authorized to be issued and sold; that in case no such
surplus shall have been created at the end of a period of four
years from the issue of bonds as herein provided, or in case
such surplus shall be less than four (4) per cent, of the prin-
cipal of bonds then outstanding, the Mayor and Council shall
cause to be assessed against all property within the corporate
limits of the town, according to its assessed valuation, exclu-
sive of all improvements, a pro rata amount which, with the
estimated amount of receipts from water service, will be suf-
ficient to pay the interest on the bonds then outstanding and
four (4) percent, of the principal thereof; and the amount thus
assessed shall be levied and collected as other taxes against
such property, and with any surplus from water service, shall
be held in reserve as a sinking fund, or applied to the redemp-
tion of the funds hereby authorized.

Redemption of
bonds.

SEC. 6. That in any case the income or revenue from water
service in said town shall at any time exceed the amount
required to pay the interest on the bonds which may for the
time be outstanding, and four (4) per cent, of the principal
thereof annually as a sinking or redemption fund, the said
surplus may be applied, at the discretion of the Mayor and
Council, to the extension or improvements of the water ser-
vice.

Extension of
water service.