1. The total of all general obligation bonds and other general obligation securities constituting a debt (but excluding revenue bonds and other securities constituting special obligations) issued to finance any undertaking authorized in NRS 710.160 to 710.280, inclusive, must be in a principal amount not to exceed 2 percent of the assessed valuation of all property in the county for the year in which the bonds are issued. Such general obligation securities constitute a separate classification of debt of the county and do not exhaust its debt-incurring power for other purposes under any other statutory debt limitation.

2. No revenue bonds or other securities constituting special obligations of the county payable from the revenues of the system may be issued for any undertaking authorized in NRS 710.160 to 710.280, inclusive, unless the earnings derived from the operation of the system for the fiscal year immediately preceding the date of the issuance of such revenue bonds or other securities has been sufficient to pay the operation and maintenance expenses of the system for the fiscal year, and, in addition, sufficient to pay an amount representing 125 percent of the average annual principal and interest requirements of the outstanding bonds and other securities of the county payable from the revenues of the system and the bonds or other securities proposed to be issued.

3. This section does not prevent the county from funding, refunding or reissuing any securities of the county appertaining to the system as provided in the Local Government Securities Law, except as therein limited.

[Part 3:127:1923; NCL § 2019] — (NRS A 1969, 1608; 1985, 322)