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Home My WebLink AboutOrdinance 1001 1 ORDINANCE N0* u a 1 . AN ORDINANCE PROVIDIWY FOR THE CONSTRUCTION OF BETTERMENTS AND IMPROVEMENTS TO THE MT. SEQUOYAH RESERVOIR OWNED AND OPERATED BY THE CITY OF FAYETM7111E, ARKANSAS ; PROVIDING FOR THE ISSUANCE OF WATERWORKS REVENUE IMPROVEMENT BONDS, AND FOR OTHER PURPOSES . WHEREAS, the Board of Health of the State of Arkansas has recommended to the City of Fayetteville that its water storage reservoir on Mt. Sequoyah be covered, and the City Council of the City of Fayetteville, Arkansas has elected to comply with the requirements of the State Board of Health with respect to the covering of said reservoir and to finance the construction thereof pursuant to the terms of Act No. 131 of 1933 as amended subject only to the provisions of Ordinance No. 943 of the City of Fayetteville . Arkansas; and , WHEREAS, the Council has caused to be made by a duly qualified engineer estimates of the costs of construction of such betterments and improvements as hereinabove mentioned, including- engineering, adainistrative and legal expenses and all other expenses incidental thereto , which ?at the Council finds to be the sum of Fifteen Thousand ( ;15,000.00) Dollars; and, WHEREAS, in order to obtain sufficient funds to finance said better- ments and improvements the Council has decided to issue waterworks revenue improvement bonds hereinafter authorised to be paid solely from the revenues of the waterworks system subject only to a prior pledge of revenues as set forth in Ordinance No. 943 of the ordinances of the City of Fayetteville. Arkansas; and , WHEREAS, the Council has caused to be made an estimate of the present value of the existing waterworks system now awned and operated by the said City and an estimate of the value of the waterworks system after the contem- plated construction of said betterments and improvements; NOW, TfflMEF0RE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS : SECTION 1. That the present value of the waterworks system now owned and operated by the City of Fayetteville , Arkansas is found and declared to be the Sim of One Million Seven Hundred One Thousand and Three Hundred ( $1, 701, 300.00) Dollars and that the total value of said waterworks system after such proposed improvemmts and betterments as hereinabove set forth have been made, is the sum of One Million Seven Hundred Sixteen Thousand and Three Hundred (51, 716, 300.00) Dollars and consequently that the value of such improvements and betterments is the sum of Fifteen Thousand ( 5115,000.00) MICROFILM&D 0A TE OCT F 1978 REEL �-- Dollars. SECTION 2. That under the authority of Act No. 131 of 1933 as amended waterworks revenue improvement bonds of the City, hereinafter call "bonds" be issued in the total amount of Fifteen Thousand ($15, •00) Dollars, the proceeds of the sale of which are necessary to provide sufficient funds to pay the costs of the construction of the betterments and improvements to the waterworks system described herein, including engineering, legal and other expenses incidental thereto; that said bonds be designated City of Fayetteville three 0%) per cent Mt. Sequoyah Waterworks Revenue Improvement Bonds, be dated September 1, 1951, be of the denominations as hereinafter set out, numbered from one (1) to five ( 5 ) inclusive and mature in numerical order on the first day of September in each of the following years and the follow ing amounts, respectively, but callable as hereinafter set forth : Bond Numb Denomination and Amount Year 1 $ 29800 1954 2 22900 1955 3 3, 000 1956 4 3,100 1957 5 3, 200 1958 That said bonds bear interest at the rate of Three ( 3%) Per Cent per annum from date to maturity, payable on March 1, 1952 and semi-annually thereafter on the first days of March and September of each year ; that said bonds be signed by the Mayor and City Clerk and sealed with the corporate seal of the City and that the interest on the bonds be evidenced by coupons thereto attached, the coupons to be signed by said Mayor and City Clerk; that the bonds and coupons be payable in such funds as at the time of the respective payments are legal tender for the payment of debts due the United States of America , at the office of the City Treasurer of the City of Fayetteville, Arkansas. The bonds, together with interest thereon shall be payable solely out of the Mt. Sequoyah Waterworks Revenue Bond Fund as hereinafter defined and dh&n be a valid claim of the holder thereof only against such funds and the amount of the revenues pledged to such fund which amount of said revenues is hereby pledged and mortgaged for the equal and ratable payment of the bonds as they severally mature and shall be used for no other purpose than to pay the principal of and interest on the bonds , subject only to the prior pledge of revenues as provided in Ordinance No. 943 of the ordinances of the City of Fayetteville ; that said bonds and coupons be in substantially the follow- ing form: N0. 8 UNITED STATES OF ANERI CA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE 3% MT. SEQUOYAH WATERWORKS REVENUE IMPROVEMENT BOND KNOW ALL MSN BY THESE PRESENTS3 That the City of Fayetteville, in the County of Washington and State of Arkansas, for value received, hereby promises to pay to bearer, solely from the special fund provided therefor as hereinafter set forth, the principal sum of DOLLARS on the first day of September 195_, and to pay, solely from said special fund, interest hereon at the rate of three per cent ( 3%) per annum from date, semi-annually on the first days of ' March and September in each year, beginning March 1, 1952, upon presentation and surrender of the annexed coupons as they severally become due. Both principal hereof and merest hereon shall be payable in such funds as at the time of the respective pay- ments are legal tender for the payment of debts due the United States of America, at the office of the City Treasurer of Fayetteville, Arkansas. This bond is one of a series of five bonds, aggregating Fifteen Thousadd ( ;15, 000,00) Dollars, dated September 1, 1951, numbered from 1 to 51 both inclusive, ail of like tender and effect except as to maturity, and issued for the purpose of providing for the payment of the coat of the construction of betterments and improvements to the waterworks system of the City of Fay- etteville, Arkansas (hereinafter called the %terworks System" ) . This bond and the series of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, particularly Act No. 131 of the regular session of the General Assembly of the State of Arkansas for the year 1933, as amended, and pursuant to an ordinance of the City Council of the City of Fayetteville, duly adopted; and do not constitute an indebtedness of said City of Fayetteville within any constitutional or statutory limitations. Said bonds are payable solely from a fixed amount of the groes revenues from the waterworks system, which amount shall be sufficient to pay the principal of and interest on the bonds as the same become due and payable. Said amount has been duly set aside and pledged as a special fund for that purpose and identified as the 'Mt. Sequoyah Revenue Bond Fundn created by Ordinance No. 10 61 duly adopted by the City Council of the said City of Fayetteville on the iZ o daffy of August, 1951 under which this bond is authorised to be issued, and in said ordinance the said City of Fayetteville has fixed and has covenanted and agreed to main- tain rates for water services which shall be sufficient at all times to provide for the payment of the principal of and interest on the bonds as the saw become due and payable, to provide for the creation of separate deprec- iation funds for necessary replacements to said waterworks system, and to provide for the payment of the reasonable expenses of operation and mainten- ance of said waterworks system. This bond is expressly made negotiable under said Act No. 131 and is issued with the intent that the laws of the State of Arkansas shall govern the construction thereof. By virtue of the authority of said Act No. 131 of the General Assembly of the State of Arkansas for the year 1933 , there is granted and created a statutory mortgage lien on the betterments and improvements to said water- works system to and in favor of the holders of said bonds and each of them, and to and in favour of the holders of each of the coupons evidencing the interest on said bonds ; and said betterments and improvements to said water- works system shall remain subject to such statutory mortgage lien until the payment in full of all of said bonds, both principal and interest, shall have been made subject only to a prior pledge and statutory mortgage lien created by the terms of ordinance No. 943 of the Ordinances of the City of Fayetteville. The City, at its option, may call for redemption before maturity, in lawful funds of the United States of America, in inverse numerical order, at par and accuiJ,� ed interest, any bond or bonds of this issue, at any interest paying date. Notice of the call for the redemption shall be published by the City Clerk once a week for two weeks before the date of such redemption in a newspaper of general circulation published in the City of Fayetteville, Arkansas , and after the date mentioned in said call, the bond or bonds so called will cease to bear interest; provided funds for the payment are on deposit at that time . IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions , and things required to exist, happen, and be performed precedent to and in the issuance of this bond have existed, have happened, and have been performed in due time, form and manner, as required by law; that the indebtedness repres- ented by this bond and the issue of which it forma a part does not exceed any constitutional or statutory limitations ; and that sufficient of the income and revenue which is deemed to be derived from the operation of said water- works system has been pledged to and will be set aside into said special fund for the payment of the principal of and interest on said bonds. IN WITNESS WHEREOF, the City of Fayetteville, Arkansas, by its City Council, has caused this bond to be signed by the Mayor and City Clerk there- of and sealed with the corporate seal of said City, and has caused the coupons thereto attached to be executed by the Mayor and City Clerk, all as of the first day of September, 1951. Mayor of the City of ( SEAL) Fayetteville, Arkansas City Clerk (FORM OF COUPON) No. March On the first day of September' 195_, the City of Fayetteville, Washing- ton County, Arkansas promises to pay to bearer the sum of ( E ) Dollars, this solely out of the fund specified in the bond to which/coupon appertains, at the office of the City Treasurer of the City of Fayetteville, Arkansas, in such funds as at the time of payment hereof are legal tender for the payment of debts due the United States of America, being interest then due on its three ( 3$) per cent Mt. Sequoyah Waterworks Revenue Improvement Bond, dated the first day of September, 1951, and numbered ; unless the bond to which this coupon appertains is sooner called for payment. Mayor City Clark SECTION 3. All money paid as accrued interest on the bonds issued here- under shall be paid to the City Treasurer and by him placed in the Mt. •Sequoyah Waterworks Revenue Bond Fund (hereinafter created) , and applied to the pay- ment of interest payable on such bonds on the next interest paynsnt date. SECTION 4. Mt. Sequoyah Waterworks Revenue Bond Fuad. (1) After payment of all sums required under the teams of Ordinance No. 943 from the waterworks find as defined in Section 10 of said Ordinance No. 943, the City Treasurer shall pay from the waterworks fund into a fund which is hereby created and designated Mt. Sequoyah Revenue Bond Fund the sums in the amounts and at the times hereinafter stated in sub-section (2) for the purpose of providing funds for the payment of the principal of and interest on the bonds as they mature according to the following schedules Year Principal Interest September 1 March 1 September 1 Tota 1952 $ 225.00 $ 225.00 $ 450.00 1953 225.00 225.00 450.00 1954 20800.00 225.00 225.00 32250.00 1955 29900.00 183.00 183.00 3 , 266.00 1956 3,000.00 139. 50 139. 50 31279.00 1957 3, 100.00 94. 50 94. 50 31289.00 1958 3, 200.00 48.00 48.00 3, 296.00 (2) There shall be paid by the City Treasurer from surplus existing in the waterworks fund after meeting all of the requirements of Ordinance No. 943 on the first business day of each month, after the delivery of the bonds, an amount equal to one-sixth (1/6) of the next installment of interest and, beginning on October 1, 1953, one-twelfth (1/12) of the next installment of principal into the Mt . Sequoyah Revenue Bond Fund. (3 ) All moneys in the Mt. Sequoyah Revenue Bond Fund shall be used solely for the purpose of paying the interest on and the principal of the bonds issued under this ordinance. SECTION 5. The City Treasurer shall pay bonds and coupons as they become due and no withdrawal from the Mt. Sequoyah Waterworks Revenue Bond Fund shall be made for any other purpose except for payment of principal and interest on said bonds. SECTION 6. The Waterworks System Depreciation Fund set up under the terms of Ordinance No. 943 is hereby found and declared to be sufficient to take care of depreciation in connection with the improvements contemplated in this ordinance. SECTION 7. All bonds paid, either at or before maturity, shall be can- celled when such payment is made, together with all unmatured coupons apper- taining thereto , and held by the City Treasurer. An unpaid interest coupons maturing on or prior to the date of such payment shall continue to be payable to the respective bearers thereof. u SECTION 8. The City, at its option, may call for redemption before maturity, in lawful funds of the United Staten of America, in inverse numerical order, at par and accrued interest, any bond or bonds of this issue, at any interest paying date. Notice of the call for the redemption shall be published by the City Clerk once a geek for two weeks before the date of such redemption in a newspaper of general circulation published in the City of Fayetteville, Arkansas, and after the date mentioned in said call, the bond or bonds so called will cease to bear interest; provided, funds for the payment are on deposit at that time. SECTION 9. The bonds, together with interest thereon , shall be payable solely out of the Mt. Sequoyah Waterworks Revenue Bond Fund as hereinbefore defined and shall be a valid claim of the holders thereof only against said Fund, and the amount of the revenues pledged to said Fund, which amount of said revenue is hereby pledged for the equal and ratable payment of the bonds and shall be used for no other purpose than to pay the principal of and interest on the bonds as the same accrue. SECTION 10. It is covenanted ani agreed by the City with the holder or holders of the bonds, or any of them, that it will faithfully and punctually perform all duties with reference to the waterworks system required by the Constitution and Statutes of the State of Arkansas, including making and collect- ing of reasonable and sufficient rates lawfully established for services rendered by the waterworks system. SECTION 11. The Mayor is hereby directed to publish for one insertion in the Northwest Arkansas Times, which is hereby found and declared to be a news- paper published in Fayetteville and of general circulation in the City of Fayetteville, Arkansas, this ordinance, to which is attached a notice signed by him in substantially the following form: "NOTICE Notice is hereby given that the City Council of the City of Fayetteville, Arkansas, has adopted the ordinance hereinafter set out; and that said City contemplates the issuance of bonds described in said ordinance ; that any person interested may appear before the Council on the / f) _ day of September, 1951 at 8:00 o ' clock P. M. , at the usual place of meeting at the City Nall, and present protests. At such hearing all objections and suggestions will be heard and the said Council will take such action as is deemed proper in the premises. Dated this 'I L day of August , 1951. Attest : City Clerk Mayor of Fayetteville, Arkansas SECTION 12. If any provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. SECTION 13. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 14. It is ascertained and declared that the lack of an adequate covering for the Mt. Sequoyah Reservoir of the Waterworks System of the City of Fayetteville , Arkansas greatly endangers the life, health and property of the inhabitants of the City of Fayetteville , Arkansas and it is necessary that the City of Fayetteville , Arkansas immediately construct the betterments and improvements as hereinabove described to protect and preserve the life, health and property of its inhabitants. It is , therefore, declared that an r emergency exists and this ordinance is necessary for the preservation of the public peace, health and safety and this ordinance shall take effect and be in full force from and after its passage and approval. PASSED and APPROVED this �In day of August, 1951. ATTEST: Mayor J. W. McGehee City Clerk (SEAL)