HomeMy WebLinkAboutOrdinance 892 a
1:'7 GRDii• A1`:Ca PROVIDIN,(1 Ft;n T'3 CDl':STI?ti^`1101.i OF ADDITIOINS , EX'iti?•i3IO'?S , . .idD
lY 1 OV?.1F. TS, TO T3_ ST ;3R SY.`I•_�:6 0 TM CI � ,n_i ,'; L n
T'. 0 'r'hYi•. 1 � i.L': , ,+� ..U!fi' A.`i ;
Tai.; 15SUiu CG OF SIS.EIt R V51� J=' BOidi)S ; PRi;SCIiIPii?G Tri"DUTIES 00; 'r•, CI11 '
T::_
OrF'IC"sL> IN COYNNd ICTION THLi=�A'dTfl ; AND PHOVIDING ICOR TME . .,3CUI'I013: 0" al
Lscr%r'df 1_.C?3.r':V'EMT FOR TIG ? :Yl _i:Id`P OF 'IGi1-aC ; i:it`•.li1.E ri0:i3 mnf. Ci nl (1: per
cent ) SNai1;F? RI-J'7FUiUm 130114D5 Di,!UD P?OVG. I) A 1, 1935 , IN ii;? ;iL,_ __ .' B OF
, 37 , 000.
'?HCR :AS , The public interest and necessity require that certain addi-
tions, e: tensions, and improvee:ents be made to titre Sewer Syste:i ovmed and
operated by the City of Fayetteville ,. 'ransas, and th4t certain Taal
property be acquired for such purpose ; and .
�7iiER13AS, the City Council of said CJfty has uaused to be made by a
duly qualified engineer plans and specifications for said addition, exten-
sions, and improvements, an estimate to of the cost of the construction of
the sac , c�nd of the real Property necoasaiy to be pux�.;hased, and estivate
of the reasonable rates necessary to be charged for service by said System
attar 33rd ei;Idliien^, , ext:: nsions , and ia;)rovo,•aentc have been :rade , and an
estimate of the revenues of : lie , all of which have been heretofore duly
filed •rith the City Clerk; and
Wiff, M ., such plans provide for the construction of .gcsage treatment
plants , pwaping stations , :and other appurtenances incidental thereto.,
reference to such plans avid specifications being Hereby =do for a more
detailed description ; and also for the pumheise of a small tract of real
property on which part of said additions , ext..11sions , and improve_aents
rill be situated; and .
4MMEAS , the City Council has exaed.ned and &' ,:proved :; i:i plans and
estimtes and finds and declvses that it is for the hest inerrst of the
City that said. additions, extensions , and i.aprovements 1>E made and that
said mal property be purchased; and
i'MI2'3iiS , said City rias outstanding non-redeemable four per cent
(11 Ier cent ) set:ver revenue bonds dated November 12 1935, in the principal
sur of ,;37 , 000 number 19 through 55 :aaturinc frau November 15 1946 through
?`IUVU7.1ber 1, 1960, secured by the revenues fro:r the pxe5cntIy e:csting sewer
system, but for which the said City nota holds surplus sewer revenue funds
sufficient for piyvent of principal and interest in full , except fox- the
swa of approximately $7 , 000 and
i%.1L'sii3, Said City of Fayetteville in order to provide sufficient
funds with which to pay all costs of this herein described conteimlated
construction, including the purchase price of tirx said real property,
engineering, le ;al apd oti,.er necessary exnen^es , togeth!ar wit interact
to a date six laonths subsequent to tl:e es til mated da.lte of completion a= the
constructi.ori, 'lid on Januar-j 23, 191;6, offer at public sale its ;?125, 000
of tY.o per cent ( 2 per cont) mel:'C x' re Venae 110!1:.5 PStCi rat S<'i7.d .",F�Ic f , R.
Stephens Inve:tmaLla : ' Coracpanp bid and cffen:d the price of 102 . 30 cents on
the dollar+ and accrued intcre,^t With the privilege of con ,r>rting to an
issue of $133, 000 of l:onds wore :;old i;o 1 . ii. Stephens Invest ant co an
at thaL px•i cc ; and
MICROFILMED.
DATE OCT b 1978
REEL X
i
Gluinance 892--2
1i::Cl'1 : , The maid W. $ii,E;p}u)nr lINOu^ tlUhit :i0A1>fin hw^ eleeted tq '
convert said bonds into a ! issue. of 343, 000 of one and one--half per cent
< 1
bonds Wh1L'h1 tale v14;/ {vlll IAC ' i ✓-3 and pay m ibs anti,111y the snzo
ih a C ^ A L
sena as upon i125, 'C00 of tl';o per cent (2;S ) bonds , ,aid conversion being
according to the Universal ;old Value Tables .
IIGi7 THFIUEFO_n1 pi; ? T F0 :;B L L., �,� � .
_ , , O td IV by th se-i-11 Ci +., CUl .Il� 1 of tho it,T
of F t'!Ynttevilie , ArkansBS a.; fo:atr u .
Section 1. That the cost of the consti^sctfon of said additions ,
exbsneions , and ilorove.-nont:, and t.i � o; shalt of said r:>al property esti—
mated by said engincur, is found and declpred to be the .. wa of w413^., 320.
Section 2 . That said additi c)I-ts , e xtensiom . and 7U2':i'dCC:'3I1t3 tiC
coilsted and said real pI'D[N_'r ty be p),rchaSed accoidi.n„ to ti.:E: plans and
sped :ications hereto ore filed with Cap, City ilerk. Cid construction
and the custody, operation and riaintenance of said Sev;cr System and the
collection of revenues tiiemfrom for the solwice Tendered thereby :0:0111 be
effected and supervised by Lire Seller Coadttce of thlco :r,eWcers composed
of V. W. Adkisson, "Webb e7illi.ams , Allen Danks , appointed by tho layor at a
regular meeting of the. counoil on ripril 1 ' 2 1945, istlich appointrzentu are
hereby ratified and confirhaed. Me Counuil Lay remove .-My n amber of the
Co,'2'tdttee with or aithout ca)1.s^e and r.,ay appoi.n't ills s1iCC3S502' 11'1 Cabe Of
death, removal, or resipiation. The tarsus of the canstr• ,tion and our—
chase shall be fisted by t:le Sesser Coclittec , arld it shall mite all contracts '
or agreements necessary or incidental to the serforvallco of its duties ,
and the execution of its peters .
Section 3. That the rates to be charged for selrer service heretofore
fisted by CvwUnaneo No. 8919 passed and approved on the 4th day of :starch,
1946 shall never be reduced so long as any of the . bonds h rein autloriaed
to be i:; sued are Outstanding and, if necessary, shall be increased•
Sec tion it. . The Treasurer of the City shall be the custodian of the
revenues deriver, frrom the Sy stem arid shall give oond for the faithful
di:scrsarge of his duties as such custodian (such bond to be fixed and .
approved by this `'ouncil ) . Me Trl=urer of the City shall deposit all
revenues 01' the System, as 'collected, in a separate fund, to be ' adIinis—
tored as follows :
(a) Smver 0;)eration anti 711aintenance fund: An amo•:nt :sufficient to
nay the reasonable ;;ont. hly expenseof operatio;i, IepaS. r, and
hairtonance shall c+e (tedueted 'I"01'.1 the monthly =avenues as they
acenie and Sh , i. be 'Used t0 })sly such expenses ;
(b ) Sower Revenue Liond )'und : Sill the revenues rewst nilhc' aft9Z• the
pc;rmint ::et Forel i777) shl-111 , cn;s'tituie the no .lr✓emu .:; of,
the Sys twa and. - 3aall be ,•)i:1;t at !:iehlt!,ly .i T?t(:I•\rpl 5 into t(1(3 .
Sevier Revenue ,`.iond Fund to provi.d(! for "if: payr;::n't of 'tile interest
on and n iic! pal of the SalU U�itG tat Sri T� 'li)i:-•}'<di]c EtiS!<;;�,le foots per
cent (µ`5 ) server revuh'ltte bo::_... an ;ind Lite: e
the extent that the GuIr!)l a-+ ovop?.:{ f holUm due t0
_u:s e!5!, r:. , er.' : fund r!O.: helm by the
City and which will be ,placerj in escro : as hezeinaffier provided
may be insufficient _`or the 7,ai;2 pa;n:tnntg t e Tci
r,rI., ta of 'the
intarest On aid the prl.nCi.pa.i. of tie Lunn . hclYll.hi aut110rized in .
BCCDI•danCe h1tF'i the 1011 J1';i.id SCihedill(: :
C
i N E!'rS T
� �vs
YEAR :fi 117CIrAL JA..TU-AIU' JULY TOT;%T
i -
1
1946 a 3997 .50 r 997 .50
1947 5,000 997 .50 96o. 0o 63557 .50
1948 S,000 960. OU 922. 50 6, 882 .50
19149 52000 922 .50 885 . 00 6, 807 . 50
1950 5, 000 885. 00 847 . 50 6, 732 .50
1951 5,000 t+47 . j0 . 810. 00 6, 6 1 jv
1952 5, 000 810.00 772. 50 63582 . 50
1953 50000 772. 50 735 . 00 6,507 .56
1954 5;000 735• oo 697 :50 6, 432 . 50
1955 5, 000 697 . 50 66o. 00 6, 357 .50
1956 5, 000 660. 00 (-22. 50 6, 282 .50
195'7 5, 000 622 .50 585.00 6, 207 .50
1958 5,000 585. 00 547 . 50 69132 .50
1959 1960 ,,05-47 . 58 c�0 510. 00 <, 057 . 50
5, 000 510. 00 472 . 50 51982 . 50
1961 53000 472 .50 435.00 5, 907 . 50
1962 54000 435. 00 397 .50 5, 832 .50
1963 5, 000 397 . 50 36o. Go 5,757 .50
1964 6, 000 360. 00 315. 00 6, 675. 00
1965 6, 000 315. Ua 274. 40 6, 585 .00
1966 6,000 270. 00 225. 00 6,495 • oo
1967 6,000 225• oo 1x0. 00 6,405. 00
1968 6, 000 150. 00 335. 00 6, 315 . 00
1969 6, 000135.00 90. 00 6, 225.00
1970 6,000 9o. 00 45• oo 6, 135.00
1971 6, 000 45 . 00 6, , 0454;00
the necessary fiscal agency shares for ma'.ing such j:ayments ; and a margin
for safety. Such margin, together with any unused surplus of the same
carried fomard from' Lhe preceding fiscal year, shall in no event exceed
ten porcentun of all other amounts required to be paid into blip Sea,er
revenue world .Fund under the provisions or t_u.s section.;
(c ) Sewer Revenue Surplus Fund . In the event that a surplus
rem eEns a-i�eerhe req:urVments of sub-paragraphs ( a) and ( b )
have been met, such surE�lu:: or zny pait thereof. uw,y be used
at the oltion of the City for the rederaption of the outstand-
ing bonds as hereinafter provided . All bonds redeemed shall
forthwith be cancelled and shall not again be issued. The
City .:lay use suet, surplus or any part thereof in its discretion
to =o•ode a fund for Dirt2;er e:;tenSion:- 9 betiznnents , artt1 add,_
tions to the Syst>m, provilei that an amount reasonably ;u£1'ioi-
ent for , opemtlort repair, :end maintenan.Ce , and for depreciation
for an cnmldnr, peniad of not less than tvelve months ha:; Elis'
been reserved.
Section. Al . soarer rrvc nuea r.Y:ic oj'ved i=;- the City Treas,.rer shall_ be
deposited by him in :S"c11 de �- ositoi or dcpositori.e_ as may )a lamlfi y
designated froe 'Imc- i1) t :Umi : ; suiject, .• Ol'i -Y:.`r, 4,0 t?1F ,JVdnj OI Sc?CL1Z y
of such deposi'ter'y as nc,i ^" -'_�:.� ''t^_= be r'aq '2d by i f�.1
d' 4y, air aw.
posits made by thr<j Tr;aa:. ;.•er a ;w•]?, 4R in a name of the City and be so
designated ao to indicate t :c p-= L_ :ular Bund to which the revenge belong.
�-^ — Ordinance 892--4
rection 6. Ti4at : e `s t ' s: > 11 !.e t d fisc y
y" � C u ?Urt i•: ::il Lai'
basis . The first fiS al ycesar sha11 coriacrtce upon t;_e 1st day of January,
1946 and .hall and one year 't ereefter.
Soction 7 . That revenue bonds of tits City (herein smiled Fonds ) be issued
in the total waount of Cmo Hundred Thaq rty-t`wee Thousand ;lollazs ( ; '73, COO ) i
that said Bonds be desiLnated "City of Fayettcn'ville , i:I_tian5as , Setsor Revanue
Bonds" s be dated January 1, 191,6, be of the derowination of u1, 000 each,
nxubarod and :': itnrinrr on J.11unryr 1St of eanh year Is folloAus :
"OS . OF B014DS YE 1E
\ 1 - 51 Inclusive 51000 1947
6 — 109 It 5, 000 1948
11 - 15, it 5, 000 1949
16 - 20, If 59000 195o
21 — 25, It 5,000 1951
26 - 30; " 53000 1952
31 - 354 520ao 1953
36 - 4o, " 5, 000 1954
41 - 45, " 5,000 1955
46 - . 50, 5, 000 1956
51 - 55, 5, 000 1957
56 - 602, „ 5 , 000 1958
61 - 65,. " 5, 000 1959
66 a 70, 5, 000 1960
71 - 75, 5, 000 1961
76 - 8o, "' 5, 000 1962
81 - 35, " 59000 1963
. 86 - 91 , 6, 000 19614
92 97 ; 63000
98 - 103, 6,000 1966
104 - 1091 " 6, 000 1967
110 - 115, " 6, 000 1968
116 - 121 * " 6, Doo 1.969
° 122 - 127 , " 6,000 1970
128 - 133 ` " 6, 000 1971
that the bonds bear interest at the rate of one and onns-half per cent WOO
per annum, payable semi-annually on the lst day of Januar•)r and July of each
year, be signed by the ::.a,.yor and be sealedAth the corporate seal of t!l
City and attested by the City Wior,L of the City, and that the interest on
the Bonds be evidenced by coupons t^:ereto attached, . the coupons to be Signed
by said :mayor and City Clerk by Meir f8csiilile si ^naturec, and :laid :?a'y'oI'
and City Cleric shall by the e:ecutior. of the Bonds ado?t as and for their
m.-n proper sirn:ltures their f2.0 i .". 1C a7ji3CLring on vvid coupons ; that the
Bonds and coupons '.ra payable in such funds as at the tine ox' the rosoective
payments are legal tender for th<: pay.sent of debts due the Goverment at the
office of the City Tmacurer of is crty vilAc , at ?<ayetceville, Arkansas .
Bonds of this Series sit:11 be stioject to :Y ciertgtior ifoc+c maturity, 1'raa
time to tire , at the o?•tion of the ity, in inverse nu erical order, at ^ar
2nd accrued interest; at 'ny pr?._?C.1!.` J.-7�';�.1.^.;: d .t3 on after J ^nl:alj 17
1949,. only from surplus r'nv4?nucr derivV,:ii frrxn th,x on- r;,t'L or. .;f System
• wa Sys m
in excess of the a^fount rEot;J. 7C(l i:o be i(ai:a .Tito `thp S i:4" eV. f ;:, BO}ta L'L`nd,
Orl?finance
rind oil uld' ziter JaYe,:ary 1, 19563 f1lO slaCh surplus or any available funds .
110tice, of the call for the redealpt'oll sin 1 1:e publ" shed I:y the City, Clan;
of 't}L City once a v{Oeii for tF'!O zeeS W D:m the date of sut,`- l 1'ed�;n7tjon
in a nc rs„ap=r of ganarzl circ zl.c.iion_ in the ity OF Little itoc' , .'l= __ n"a:: ,
and t1aV'i P.(" S Eine Tal Ci r:alb.d!tiCn 'iar041,': ElOut t[le. =}tats: of lirkc'l??u Huy .d at
the date .^.:antfoned in the call , bond or bonds so cV l'l.ed l,i.11 cease to
bear inten;st; };rovidud funds for theiraril` rt aIti on dc2posit at hat time.
The Donds, together frith interest thereon, shall be payac,i.� only out
Of the Sewer Revenue !.ond }•'Mild :AD he1•0i"bel'C.`,'. (Ief1':ed, 277E :ia.11 be valid
claim of t?e hal!ier tho-Inii0f on).v ahai liGt t!w JJIY@1' !«?vCYI`,AC v0R(,`. -uY?:I 8?:a t:1B
a;nount of elle revenue pledged to ; aid funs. :,1: _C: 33 a.",!!i'.iY:'' O ^.:j, -i r•� v .c..,
u
7 1 , e is
hereby pledged for the payrlent of tle said, 'gala?Ice Of a_)prJL;n:>:t:ly ;7 ,000
necessary to retire in full the sa:ld o wstalldlil^ iron:L?CIEe1:ILb1C four ;:C.` L'e7lt
MQ sel,ar ravenue bonds and for tha equal and ratable pa371a3nt of tile. Bonds
and shall lie used for no other purpose than to pay the said balance of
approxi.;nately ;;7 , 000 and to pay the principal of an`r interact on the Bondsas the save accrue .
Section 8 . That said tronas and coupons be in substantially t?la follOv
ing forms :
UNITED STATES OF AI) ERICA �
STATE OF ARK,!ASPS
COUNTY' OF VIASHINGTO19
CIrf OF FAYETTEVILLE
lL YPF.' CENT SM;ER REvBASUB B(>I.;'D
KNOiiV ALL M"7111 BY TlisSr PRESENTS :
That the City of Fayetteville , in the '.1Ounty Of ii sf112 tCn,_ State of
Arkansas , hereb7 ackno}:Zedci e itself to oltie , and for value received promises
to pay to bearer the su✓n of Dollars (,P
on the 1st :jay Of Ja+'marr, ly , rrlth ,interest at the rate of one and one II
he`1f cer cent (l`, per cent ) per ennhca, ;):Mable sclld-annually or. the, 1st day
of Jaru:ary W-1d July of each year, ul)on presentation ,2+!d surn:ndcr of the
annexed C011nJn:> 8N. t1Cy Saver;_11y bccUale (1710 . klOt:"1 !7I'111:;1}i£:_ hereof and
interest hereon shall `_e ;r..l cable i;l coca su :: es at Lht4
tivc paylnents are 1e 311 'tender for the payulent of dcbEs ciuelctne Unitedf VIC II,,oil ii:ih?71Ca at t11E) office Of t e Tr: aSiI,I[:Z' Or the City Of 1Fayett�vi'' lei
at Fayetteville, Arl:a?lsas .
This is one of a series of ane `rrndztd thirty-thee (133 ) lwll%e
aggregating One Hundred thirty-three ^h .>;:,nd l1011zs;l ( s 133, 000) , ; 71 of li to :
tenor except aS t0 denO a?.naiaons ami :.!a turi tiei, and nL` bered `r0^ One (l )
to One Hundred i'i7irty-three (133 ) , both i.ncludsive , dated JsAnunzwy 1, 1946, i
and issued f r the . pl7rposa Of I):'Ov.i..;'ln,^ fOr Rile iiayi7E!nt 01. the Oo:>t Of Con-
struetion 02' addition, extrne'7ons , and j - t4,
t0 t:7. E21,E.' gv-s t•C,r1
Of the City of Fayetteville, Arkansas; .
This bond and the series of 7y17icf1 it fords c Pa
rt are iseued in accbr- '
dance wLth the provisions of Act 132 of tale rerillaL cession of 'Rise Ge7ural
Assembly of the State Of Arkansas fc.• the yea.- 1 1
_9_ 3 and do not con; U:
an indEbteaness o+: seid City ':Ji.thi l :uiy Cat titllt9Onai or statuLOly 1i ti titian,
and are payable solely from the net revenuers from said oils
nED2' System remaining
fi 6 ._.
• GTikinatlCe ;i0 . '�i �
after deduction of i VW, roasonable Ori Ghly iJCnu3u 0� OI)iand
t '3721 rag
as`ld malintsnanCe . said net revenueseav`i?rT11eeen Sordet Gr''und" cr �att d r'ay as
V.
special fund . and identified as
nrclinance k�o. 892 , adopted by the City Comlci ! of said City on the
day of , lrljb under' rrilich U.u.t.. k;oni i.r, au`nn' funds toeld
x. i. ssuedg 'to supplement to the extent of approu lately ar? ; '
in esclror: by First Ida: ionai k3ank., Fayet4eVil7.es e rka_lsa:= , J. Paw tP:ey
inat'drO l:.l'•^ )1'iriQi Ural Of a'1:: i113i.exL'iit of 11071-1Y'-de9iaak)1e fOiil' :t.G T_ CO'Clt
SBYi2 x• rdvsnue bondr: of t14? City Of Neyettevilli: , ilr kanSaS , •Y�'-A�'i}
(4 ) o to fi t ivc ( 5:) both
kdovcuber 1 , 1, 3: s nlunben;ri from nineteen (1it y i to .1960;
;aa.tur? criaL"ly on klove7a er 1 in the years 194 =
inclusive , thI ries of r;kli..^.I"l it f=:Is •:est.
zeld i to pay "this Bond and i11C1U8lve , -
I1 IS ii�Ri?BY CER'i iIF s Risjnj Dg 104D Ji4CLARED that 011 acts, condi. tiorss
and things r ,quired to exist, hanxn, and be perforrned pursuant to and in
�- been oerforxTepi
the issushlce of this Bond have c)d st ulx�dvb, ill a}ixlrled + that snf i iciert of ^Me
in due times form, and manner, as _ q S tem ?:as been
income and revenue to bo derived fraa the orJer. tion of said ys
pledged to and rr
ill be set aside into :aid snegial fund for ";he pavnent of
the princi:ial of and intex^est on said bori.
Bonds =of this series are subject to re.1. t 'ti.on before maturity, fro7n
time to times at the onti_on of the City, in invorse 1111MOaic.a rr crp atcry 1.1r
and accrued interests at ani i:rincipal-payin date on
1949 ,. true fr°"' surplus ravenues derived from file aperrtion Of the System
in excess of tale r.:lount required tc Le paid into the
Sercer u vence 3andL7
E 'und , and on and after J::sluary 1, 1956P irox. such Surplu-- or any Valls- ' .0
fluids * Notice of .the Call for the redemption. SNO., be
published by the
City Clerk of the C'�t4 once a wee"' for tr7o weeks before the date of such
redemption inane:+srJa?er of ,eneral circulat_. on os d in tale �i �y of
Little Rocks Arkansas , and
having a *legal circulation throu? lout the
State of Arkansas , and ai'irr t.".s d °.te -enti. ar..'d 1.n :;rce cal_lg t?le bond or
bonds so called will cease to sear iris=::est5 pro'rided funds to their pay-
ment are on deposit "' t t 1" ' titre '
: ;�rkansas by its City
IPI tI`rk' nJ :'tii`:R Uk g Said City y of aj e'tteville , s lrl ' s : ale:)
Cler't': has e ilLS'Cd tilt )Uliei. to :.'
r>i;,ned by tho ?yon th_ reox
v.itkl the corporate see) of. said }+it}- and att-Bs"Wzdeb! tl;c ,iL r Cler_:, and
has causad . tvie coupons ku:reto av �C .le tC )e �atofntilL�l t da •�ted 1Qtof Janfaca^x-y ,im v
signatures of s id iavcr and City ' ler'r:, all
19460 (k.:ayor)
(Seal)
Attest by City Glerke
(Forel. of Coupon)
_ .� Juiy
the Cit of Fa•�etteville , 'iEashington
on the lst d1Y Of Janaal'y, 19 , y
County, Arkansass promises to pay to beaver oul of the �jy; C City
Treasurer
er .the
bond to which this coupon appertains , at the office Of the City Tx+:asurar of
Fayetteville , at FaYetteville , t?. ra<i??Sas; 111 S;1Cfl flindr> as at t'14' 4JLrn OI nay.
)rant hareof are legal tender for the nay ' eilt °f debts due t1Yie United Sta es
olla. s (6 ) ,
of --:ae:i.ea ) the sum Of er cent)°e: er
being interest due on its one and one-. «Jlf per Cent (12 p
Revenue Bonds dated the: 1st day of January, 19462 and mlmJered 7
Urdinance Ro. Bq) %--7
urtlils:: the Bond to i;;1i Qh it appert: i n� is sooner etdleu for _)ay_aellt
(city jlerk )
( The coupon attau.,wd to eaC4 bond will be for si .i ;a011t:lls interest in tie
sn:a of +07 . 70 )
Section 9• 2ifter the bonds have been excepted as herein provided, they
shall be delivered to 104 it: ;;tephens lnvestrwrht Co:apany of :,i ttl:_ Do ',,
+=r�tL?t]Sa:, upor; the payutiant in cash Uf 'ti:e 3'urc:iase 7I^_ce O.. 4'1') ? P`• 1
accrued interest to date delivery to do Cit a' for� t9F• rs • OQ and
01' ueliv City easu.rer a our1L of
i y all be .] losi d
the It .paid Sll'a :iih ' Oj 'tE3 in the Pil'.•it f?aa:i Unc11 L•an:;, ':'iyette ':il!O ,
Ari<c^S1Sa5, i.n t.rust, recured as its other trust funds aryl s�;:e•Urod , u%Yl dis—
t:urEr= l by it solely in payment of the cost of said addlti or:s , e ten^ion:; ,
and imorove:n :ntsi including eneineeri. rife, alhd Other e;^;onsos ircidr_nt to the
construction, but only on walrant3 or voui:hers 3irned by the Chri+-n�n of the
Sevier *o:a,-aittee anci by the City Treasurer briefly cpeeifyin.-V the Purpose of
the expenditsre , acooiapanied by a certificate signed by the consulting: e.i ;i—
neer for such construction that an obligation in a stated amount has boon
incurred Oil aCi:Ji:t of the dost of the ' construction and to whom such orbliga—
tioll is O::eC.l , except that no such eerz:l.f este v tall IX: D:aq fired before jlay—
went of the engineerini; Sees . Any unexpended balance remaining shall
otd.<1 to the 'amity Trot ;surer for the <;ccount of the City and deposited by
him in the Sevier Rcvenuc bond fund hereinbefore defined. 1-ialert tiie iutlds are
so da_�osi.ted, tale irethsulYrr shall take fro:s the Bank an agreement to apply
tl.e , .rile as pro;r_ded in this Section. j
Section 10. ;dothin;; fir. this ordinance s la).1 be construed to erevenL
the issuance by the City of additional bonds payable fro:a the rev::;:zee Of
the Sys &-nii to finance or payJ the Costs of Constniectinr any f x. ,
anther e-. �„-L...on,
bcttnrmne lt, or addition tothe systeah; provided, howsysr, that the City shall
not authorize or iSS'ue aTW sizell additional bonds so lorl(y as «rY of 'the non—
redeemable i ru er cent (l ) s ster ver rsue bonds dated ?dove ::er 1 , 1 ;35, or
arty of the bonds of this :aeries tu•e outstanding +.unless ti . -rosy revenues
derived from t lc SysV :n for the fisC.
cal year then next precedUnt shall have
been sufficient to provide for all cost:: oz u?:era Lion, reozi. r, and maintenc.nce
of tie System and leave a balance equal to, a.t least 120 per. cent ,• of the
un
ai;(T gate of (a) the prircipal and interest ?a:,ra nt for such ynar.• on total. '
bonds then outstanding and the fiscz-.1 e.i;cncylr: ctlarges therefor; and ( e ) an
amount of principal of issua of 3uc_`1 additional bonds ;txa :*may im � Stan zd;
for one year co^luted by dividirt, Vile i^ tal- e_nount of s ::cil i ^sue b ;: the
number of ears tc the final. nst%Lilty date of such bonds .
Section 11. It is covenanted and 'a,rreod by the City ::it_1 tile• !holcl_�! r or
i older I of t're tends , or any of then, t`—t it :iil.l Yx faig„ifully an.:
punctuhvl ly perform all duties viitlh refeyv: nce to ttl:' 3y;;tot, rcqui.zed by the
Cor> titnti on and Statutes Of t:1- St'tt: Of i -• mnsa9 , including makein�-- avid
collecting of ra;:conable and suff'.cient ra.tias lavif:hll )' established for
services rendered by the ]yStfzm, Oegregatilrlr tale .L'Venue of tale Sy3tem and j •
its appli.catiOn to the rooq octi ve fund herein. Created •
Sedion 12. The City viill :nainteir, the System in good condition and
operate the same in an efficient manner and at a reasonable cost.
a
Section 13 . So long r•.a any of the bonde are outstanding, the City 1;_11
not _aortga�;e : Pledge , Or Otherwise encllaber the Systt.m orreof,
any p�.i•t the ^�
Or any raven, therefrom (e: cit as hereinbefore provided ) , and till not sell
Ordinance 982---5
The Bonds , together vrith interest thereon, shall be payable only out
of the Sevier Revenue Bond Fund as hereinbefore defined, and shall be valid
claim of the molder thereof only against the Sewer Revenue Bond Fund and
the amount o the revenue pledged to said fund, which amount of said revenue
is hereby pledged for the payment of the said balance of approximately
;;7 , 000 necesse:ry to retire in full the said outst€:ndinr nonredeemable four
per cent sever revenue bonds and for the equal and ratable payment of the
Bonds and shall be used for no other purpose than to pay the said balance
of approxiru ely , 7 , 000 and to pay the principal of and interest on the
Bonds as the same accrue .
Be That said bonds and coupons be in substantiLtlly the folloving
forms :
( Page 52 , Council Book 2 )
9 . After the bonds have been exectued as herein orovided , they shall
be delivered to 'ii . P. . Stephens Investment Company of Little Rock , krkansas
upon the payment . in cash of the purchase price of ;;127 , 075 . 00 and accrued
interest to date of delivery to the City 1•reasurer for the account of the
City. Said sura shall be deposited in the First notional flank, Fcyetteville ,
Arkansas , in trust, secured an itsother trust funds are secured , and dis-
burned by itx solely in payment of the cost of said additions , extensions ,
and in.prove;acnts , includinE• ongineering and other expenses incident to the
construction, but only on warrants or vouchers signed by the Chairman of
the Sewer Cocunittee and by the Ci Ly Treasurer briefly specifying the our-
pose of the expenditure , accoaapanied by a certificate signed by the consult-
int; engineer for such construction that an obligation in a stated amount
has been incurred on account of the cost of the construction and to whom
such obliEation is ovred, except that no su :h certificate shall be required '
before payment of the engineoring fees . Any unexpended balance remaining
shall be paid to the City Treasurer for the Account of the Oity of Fayette-
ville and deposited by him in the Sewer revenue Bond Fund hereinVefore
defined . : hen the funds are so deposited, the Treasurer shall take from
the lank an agreement to a?ply the sine as provided - in this Section. - .
10 . Nothing in this ordinance shall be construed to . provent the
issuance by the City of additional bonds pny.:ble from the revenues of the
Systom to finance or lx.y the coots of constructing arty further exyension ,
betterment, or addition to the :'ystd;m; provided , however, that the City
shell not authorize or issue any such additionci bonds so long- as arty of
the nonredeemable four )er cent sever revenue bonds dated November 1 , 1935,
or any of the bons of this series are outstanding- unless the gross revenues
derived from the System for the fiscal year then next preceding- shall have
been sufficient to _provide for all costs of operation , rep;Ar, and maintenance
of the System and leave a balance eaur. l to at least 120 per centum of the
a[. greg-ate of ( a ) the principal and interest payment for such year on total .
bonds then outsLandinr and the fiscal a ency ' s chargees therefor; ( b ) one
year interest on Lhe tot., ]. issue of such additional bonds proposed to be
issued ; ( c ) an amount of principal of such additione: l bonds for one year
computed by dividin ; the total a:aount of such issue by the number of years
to the final maturity dete of such bombs . .
11 . . It is covenanted and at reed by . the City with the holder or holders
0
Ordinance 892- -6
of the Bonds , or any of them, that it will faithfully and punctually perform_
all duties with reference to the System required by the Constitution and
statutes of the State of Arkansas , including making and collecting of reason-
able and sufficient rates lawfully established for services rendered by the
System. SeCregatini, the revenue of the System anti its aoplication to the
respective funds herein created.
12 . The City will maintain the System in good condition and operate
the same in an efficient manner and at . a reasonable cost .
13 . So lone as any of the bonds are outstanding, the City will not
:aortgcge , pledge , or otherwise encumber the System or any part thereof, or
any revenue therefro:a (except as hereinbefore provided) , and will not sell ,
lease , or otherwise dispose of any substantial portion of the same .
fly . The City will keep proper books of records and accounts ( separate
from all other records and accounts ) in which coirplete and correct entries
shall be made of all transactions relatinC to the System. The City will
furnish to any holder or purchaser of any of the Bonds at the time outstand-
ing at the written request of such holder or purchaser, nor more titan 30 days
after the close of each six months ' fiscal period, complete operatint• and
income stateraents of the System in reasonable detail covering such six months '
period, and not more than sixty days after the close of each fiscal year, com-
plete financial statements of the system and the City covering such fiscal
yet:r, certified by the City ' s auditors .
15. Any purchaser of twenty-five per centum in aF•.. ;reg.ate principal
.:mount of tine 13onds at the time then outstandint- or any holder or holders of
twenty-five per centu:a of said "-Mount of outstandin fonds shall have the
right at all reasonable times to, inspect the .":ystcm mid all records , accounts ,
and data of the City rclatinf thereto .
16 . The City further covenants cmd ap.rees that if default is made in
the payment of any bond or coupon or if the Jity fails to meet any )rnkinp
fund requirement, the holder of such bond nay declare that bond irarrediately
due z. nd payable , and such bond sha11 thereupon be im:aediately due and payable
and in default.
17 . If there be any defoult in the payment of either the interest on or
principal of any of the Bonds , the holder or holders of any of the Bonds may
by proper suit compel the perfor:a,nce of the duties of tine officials of the
City, as sat forth in said Act 132 of the regular session of the Ceneral
i.ssembly of the State of :irkansas for tine year 1933• If there be default in
the payment of the principal of or interest on the bonds, any court having
jurisdiction in any proper ation may appoint a receiver to administer the
System on behalf of tine City and the holders of the bonds , witin power to
charCe and collect ( or, by mandatory injunction to cause to be charged and
collecteci ) rates sufficient to provide for the payment of the i;onds and
interest thereon and for the payment of the orperatin, expenses and to apply
the income and orovenues in conformity r. ith said Act and this ordinance pro-
viding for the issuance of such Bonds .
• 16 . That to guarantee payment of the City ' s outstanding, ,'37 , 000 four
per cent Sewer Revenue Bonds dated ?Iovember 1 , 1935, as they mature , the
:'ayor and ::ity :3lerk be and they are hereby authorised to execute for the
Ordinance 892--7
City and in its name an agreement placing moneys and bonds of the United
States of ?mrica all out of surplus sower revenue funds in escrow orth
First T!ati-onal Bank, Fayett,ville , Arkansas as follows :
AGREM, NT PLACING ;'0 *::YS A*!D BOTTDS OF
UNITED STA ES OF A!.M- ICA OUT OF SUR-
PLUS REV^T! E FUNDS Ir! PSCRO:`r f:IT! FT.RtT
HATIOYAL P.ANK , rkYSTTPVILL'i , ARKATTSAS ,
A%D PROVIDI'':C FOR T}P' PP-.Tf7NT OF :37 ,000
40T?RRD7r111AR1j? 4% S'Vv'PZ RT:V'3Ti1T`: OT TDS OF
T1.7 CITY OF FAY7TT711I1,TFr , ARK0SAS DAT?D
TTOV'adBIM 1, 1935 .
K.T`Ou:` i:LL t.F-31 BY T "r.SF PRESENTS :
This Agreement, nade this 1st day of April 1946 by and betv;een the City
of Fayetteville , Arkansas , hereinafter referred to as "City" and First Nat' l .
Bank, bayetteville , Arkansas , hereinafter referred to as "Agent" .
bITNESSTH:
That, VvIFEMA,92 The City has outstanding non-rodeernable 4% Sewer Revenue Bonds
dated November 1 , 1935 in the principal sura of 5937 , 000 numbered 19 through
55 maturing frau November 1, 1936 through November 1 , 1960, as follows :
Bond No . Princioal Amt. Due Date
Novel
19 , 20 22000 1946
21 , 22 29000 1947
23324 2, 000 1948
24;26 2 , 000 1949
27 , 28 20000 1950
29 , 80 2 , 000 1951
3102 2,000 1952
3304 20000 1953
35 , 37 , ince 3,000 1954
38 ,40, inc . 3, 000 1955
41 ,43 3, 000 1956
44-46 " 3,000 1957
47-49 3 , 000 1958
50-52 " 3, 000 1959
53-55 " 3, 000 1960
P.t!D i: !1 :?"i:^: , In order to pay all costs of contemplated additions , extensions ,
and improve.aents to its Setter System, the City ha.s sold an issue of •9125 , 000
two per cent Sewer 24venue L'onds but converted by the purchaser to an issue
Of 1133, 000 one and one-half per cent ^e-ver Revenue Aonds on which the City
rill receive and pay substantially the same sum os upon •;125 , 000 tv. o oer cent
�)onds , said conversion being according to t; Tc Universal "ond. Ve1ue 'Fables ;
end
,MEEP. W! , the City has authorized the Lssu�mce and delivery of the said
1 ;:133, 000 one and one -half Der cent "ev,^r Revenue Bonds , and
Or:linance 892--P,
.11uREAS , The City desires to guarantee the payment of the interest
on and principal of said outstanding ,;37 ,000 nonrodee:aable four per cent
Seraer Revenue bonds a.s they mature from surplus Server revenue runds now
in its hands , and from future collections of sever revenue charges ;
T• M. , THFJZE: OR!: , The City does hereby transfer, assign. L.nd set over
to the j.;rent cash in the swn of ;x7 ,440 . 00 an d the folloviing bonds of the
United States of i.merica, to-r,it :
PAIR VALUS D'3SC11IPTIO'.'
iix 3, 000 J{13729K ) U .S . TMJs,MJ_tY 111011D
#13730L ) Dated April 15, 1943
1113731A ) Due : Sept . 15 , 1952 , Optional 9115150
102000 U . S . P.`MT' BO".1 Scries F
Issued : Nov . , 1945
Due : 12 yrs . from date
Bond T11o , X238545F
59000 U .S . SA '/.T. ,'.rS 13.11;D—Series F
Issued : April 1942
Due : 12 yrs , from date
Bond No . V7(Y)27F
5 ,000 ILS . $AVT'?0S P,0"7-`'eries F
Issued : Sept . , 1943
Jue : 12 yrs . from date
1?ond 1!o . V157826F
5 , 000 U . S . Fi•.'VI 'C S BO'dJ-^cries F
Issued : Sept . , 1943
Jue ': 12 yrs . from date
Bond No . V1578271;'
10,000 U .S ; STAfr'S Pi.VIVGS DON, -Series F
Issued : April , 1943
Due : 12 yrs , from date
Bond No. X147653F
13000 U . .^• . ;.'1T' CS l 0'!D-Series F
Issued : February, 1944
Due : 12 yrs . from de: te
Bond i!o . '.'7101.116F
1, 000 U . . t- VI r^ n0?'J-9ories F
Issued : February, 1944
Due : 12 ,yrs . from date
1.ond "!o . ',r, 7101P31
1 , 000 Mle SAM%Tn!^) I10TID-Series F
Issued : Feb . , 1944
Due : 12 yrs . from date
Mond No . ! '710189P'
1 , 000 U . ` Sf. VINCS F,,)TUD-Series F -
- ^ Issued Feb . 1944
Jue : 12 yrs . from date
Fund Ho. ::1710208F
5, 000 U . S . F-AVIt'!G.`i :Vw
Issued : i,pril , 1942
:Tae : 12 yrs . from d a to
Bond No . V70028F
The City directs the rtCent to pay at maturity and upon oresentation to
it the interest onand principal of the above-des ::ribcd -$37 , 060 of four oer
cent nonredeemable "ever ifevenue Londs ; and in order to orovide sufficient
funds therefor, and for all other payraente provided herein , the City directs
the Arent to use first tine Fula in cash transferred to it hereupder and •r,hen
t: ,at sura beco:aes insufficient to make any payment as directed , then at its
discretion to s 11 sufficient of the bond's of the United States of -merica
assi:•ned and transferred hereunder and out of the proceeds : therefrom to
to :aake such paymont and hold any surplus resultinf- therefforn as a part of
the sum in cash to apply on future pay:.rents as directed herein .
It is contemplated thz• t the sum in cash :end the bonds of the United
States of 4-merica- transferred and assinod hereunder mny ne insufficient
to m..ke all payments a, s directed herein and in order to orovide further for
these pay.nerrts , the City afxees to transfer to the Alront, upon its demand ,
out of the sey.er revenue; of the City , but only out of the sovior revenues
of the 'City, additional sums in cash as needed to enable the AE-rent to pay
at maturity tyre interest on and arincioLl of tine said nonredeemable four
per cert "ewer Revnue i:onds and to azi6 any other pz:y:;:ents directed herein .
The City lAll i::mredi:; ceiy deliver to the t:Fent f'or o::y;aent as above
diret''ted as soon as presented to its amity irez:surer ali coupons and bonds
Of tine .^.aid issue of non redcema:ule four per .cnt ;Serer ievenue :.ends . The
Uent accepts zn holds in trust for ttte payment of interest on z:nd arinci-
pal of the above-described nonwedeemztIL four per cent flower Revenue Bonds
the sum in cash and the !rends of tiro United Stz.tes of •.raerica transferred,
assiUned, z,nd set over unto it ; and the j!uont hereby aCrees to ;gay the
interest on and arincipal of the slid nonredeemable four per cent Sewer
iievonue Bonds at raturity anti upon presentation to it ; to make suoh payments
first from the sum in cash held by it to the e:ctent that the said su:n is
sufficient z.nd „hen it becomes insufficient to make a payment es he ein
directed, then in its best jucd;-lent to sell only enout-h of the bonds of the
United States of r.incrien held by it hereunder to arovide funds necessary to
crake such _ ayaent an: to add to the stun in cash any suralus resultinr from
the sale of the bonds of the United estates of raericz to apply on future
pzsyrrnts a.s heroin directed . The lzCent aCrees to account to the .:ity on each
interest-paying? date for all moneys spent hereunder z ncl for the sun in cash
and for the bonds of the United States: of iimerica held by it hereunder and,
upon payment by it to cancel z nd return to the City all cor.toons and - bornis of
the nonrcdeemairle four nor cert sayer revonue issue .
lror its services hereunder, tine Aron' agrees to nerve without charge .
IN tirITr15"R i.L^.'t 0i , The City hz.s c;:uscd this aF-ree;aent to be executed by
its Payor and attested by :its City C1crk and the ;iC~cnt Inas caused this ar-ree-
:aent to be executed by its Pr•Osident z:ncd 'Sccreta.iry tine clrte first above
written .
CITY OF 1;hY`;TT ;'J . Lt,3 ,
Co G • T. Sander.^, , Liayo
J . �. . 1:IcGehee , City clerk