It shall be the duty of the council of the city of New Orleans, or its successor, as the governing body of said city of New Orleans, to levy and collect for the year 1951, and annually thereafter for a term of fifty years, a special ad valorem tax of three mills on the dollar, upon all taxable property, real, personal and mixed, in the city of New Orleans.  The proceeds of said three mills tax shall be paid over to the Board of Liquidation, City Debt, day by day as the same is collected by the proper officials of the city of New Orleans and such proceeds shall be used solely and exclusively for the construction and extension of the sewerage, water and drainage systems of the city of New Orleans and shall be deposited with the fiscal agent banks of the Board of Liquidation, City Debt, to the credit of a special fund called “Construction and Extension Fund of the Sewerage and Water Board”.  The Board of Liquidation, City Debt, may, in its discretion, invest any of the proceeds of said special tax in bonds, treasury certificates, and general obligations of the United States whenever the sewerage and water board of New Orleans, by resolution, designates such proceeds as idle funds, designates the date when such funds will be needed for authorized purposes and requests the investment of such funds by the Board of Liquidation, City Debt.

Provided, should the tax authorized to be levied by the city of New Orleans in any one year for bonded debt purposes under the provisions of Act 4 of 1916, as amended, and Act 3 of the Extra Session of 1927, as amended, exceed seven mills, the tax hereby authorized shall be reduced in proportion to the excess, and when the levy of said tax for bonded debt purposes under the said two acts above referred to (which acts as amended now form part of the constitution of Louisiana) reaches or exceeds ten mills, the tax hereby authorized by this amendment shall be suspended.  The intention of this act is that if the tax levied by the city of New Orleans in any one year for bonded debt purposes, plus the tax of six and one-half mills authorized to be levied by the city of New Orleans for general municipal purposes as authorized by said Act 4 of 1916, as amended, shall exceed in the aggregate thirteen and one-half mills in any one year, the tax hereby authorized shall be reduced or suspended so as to remain within the limitation of sixteen and one-half mills as provided by Section 15 of Act 4 of 1916, and provided further, that this amendment, if adopted as part of the constitution of Louisiana, shall not affect the right, power and authority of the city of New Orleans to levy a tax on all taxable property in the city of New Orleans sufficient to pay the principal and interest on any bonds of the city of New Orleans now issued and outstanding or which may be issued in the future under the provisions of said Act 4 of 1916, as amended, and said Act 3 of the Extra Session of 1927, as amended, which said acts now form part of the constitution of Louisiana; and provided further, that this amendment, if adopted, shall not affect the right, power and authority of the city of New Orleans to issue bonds in the future as is provided for in said Act 4 of 1916, as amended, and Act 3 of the Extra Session of 1927, as amended, and which said Acts as amended now form part of the Constitution of Louisiana, and provided further that if this amendment is adopted as part of the constitution of Louisiana, that the tax authorized herein shall be in addition to the tax now authorized by Act 197 of the Regular Session of the Legislature of Louisiana for the year 1938, which said act was adopted and now forms part of the constitution of Louisiana.  All disbursements made by the sewerage and water board out of the proceeds of said fund shall be in the form of warrants or drafts on the Board of Liquidation, City Debt, setting forth the amount thereof, the persons to whom payable, and the purpose for which the payment is made; and the Board of Liquidation, City Debt, is charged with the duty of taking care that no irregular or improper or unlawful payments are made out of said special tax fund.  The Board of Liquidation, City Debt, as now organized and created and with the powers, duties and functions prescribed by existing laws and by this amendment shall be continued as long as said special tax is levied and collected under this amendment.

The provisions hereof are self-operative and the city of New Orleans and the several boards and bodies herein referred to shall carry the same into effect.

Added by Acts 1976, No. 167, §1.