Sec. 10.11.2.

Obligations payable from the proceeds of revenue-producing projects, including, but not limited to, revenue bonds for the construction, extension and improvement of the water supply system of the city. Any resolution authorizing such revenue bonds may contain such covenants and provisions to protect and safeguard the security of the holders of such bonds as shall be deemed necessary to assure the prompt payment of the principal thereof and interest thereon, including limitations and restrictions upon the safekeeping and application of the proceeds of such bonds, the issuance of additional bonds, the safekeeping and investment of the revenues of the project and other matters relating to the operation and maintenance of the project and the security of the bonds. The council shall impose, maintain and collect rentals, rates and charges for the use of the project and for the services rendered thereby at least sufficient to produce adequate revenues to pay the cost of operation, repair and upkeep of the project and the principal of and interest on the revenue bonds and to provide reserves therefor and may secure the bonds by a pledge of an lien upon the revenues of the project.

NOTE. City council may, for the years 1976—1979, issue capital improvement bonds without a referendum, by resolution adopted by five (5) votes, authorized by Chapter 234, Laws of Minnesota for 1976.