Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Ordinance 1166
oIL3lxANCS Foe170 l f0 AN ORDINANCE AUTHORIZINE TIM ISSUANCE OF WATZR- WOW AND SEWER REMUS BONDS BY THE CITY OF FAYSTMOVILi3, ARIUNSAX F!t THE PURPOSZ OF RSA FUNDING CERTAIN 0VTSTANDINN SEWER RSMUS EONDs AND WATER RZVZIWZ SMS AND FOR TO PORPOSS C/' CONSTRUCTING EXTENSICNS, UTTURKWS AND IM• PROVININTS TO THE WATWOIt1G5 AND SZWZR SYSTZN j MAX= PLUM AND CSS To INiDIIRZ To PAYMENT a THE B0KDS j PMSCXIWM OIHIRt MATTERS RELATING TKZRZTO j AND MLARING AN EMlIR6WCY . WHEREAS the Waterworks and Sewer Systems presently serving the City of Fayetteville , Arkansas (which are and are to be operated as one system and which will be hereinafter referred to as the " System" ) are inadequate for the needs of the inhabitants of the C1tyj and WHEREAS the City Council has determined that the System should be imprevod and extended and has had prepared by duly quali- fied consulting engineers preliminary reports and estimates of cost of the needed extensions , betterments and improvements, which re- ports are on file with the City Clerk and to whieh reference may be made by any interested persona, and whish in general call for the following extensions , betterments and improvementsi Construction of a dam on the White River, a pumping station, ZO" or larger pipe line from the dam, and additions to the filter plant ; extensions , betterments and improvements to the water distribution system; and extensions , bettermoats and improvements to the sewage golloetlon system and the sewage treatment fasilitles (whish will be herein- after referred to as she "im4prevements^ ) , all at an estimated cost of ¢4 , 150,000, including engineering, legal and other necessary sx- poises incidental to the construction of the 110"vememts and to the issuance of revenue bonds ] and WHOUS the City does not have funds available to under- take and complete the improvements , but can obtain the same by the Issuance of revenue bonds ; and WHEREAS in connection with the fIr m ing of the cost of the Improvements , it will be necessary for the City to refund the out" PAFce 2 standing bonds of an Issue of Sewer Revenue Bonds dated January 1 , 1946, there being $73,000 in principal amount of said bonds out- standing, an issue of water Revenue Bonds dated December 1 , 1948, there being $646, 000 In principal smcunt of said bonds outstanding, and an issue of Water Revenue Bonds dated December 1 , 1952, there being $431 , 000 in principal amount of said bonds outstanding; NOW, THEW=* BE IT ORDAIM by the City Council of the City of Fayetteville , Arkansaso Section 1 . That the necessary steps be taken to refund the outstanding bonds of the Sewer Revenue Bond Issue dated Janu- ary 1 , 19460 the outstanding bonds of the Water Revenue Bond Issue dated December 1 , 1948, and the outstanding bonds of the Water Revenue Bond Issue dated December 1, 1952, and that the above des- cribed lasprovements to the System be constructed . Section 2 . That the City Council hereby finds and de- clares that the period of usefulness of the System after the com- pletion of the Improvements will be more than forty (40) years, which is longer than the teras of the proposed revenue bonds . Section 3 . That under the authority of the Constitution and laws of the State of Arkansas , particularly Act No . 131 of the Acts of Arkansas of 19330 as mended, Act No . 132 of the Acts of Arkansas of 1933 , and Act No . 297 of the Acts of Arkansas of 1937 , as amended, and the decision of the Supreme Court of the State of Arkansas in the case of City of Harrison v . Draswell , 209 Ark . 1094, Waterworks and Sewer Refunding and Construction Revenue Bonds of the City of Fayetteville,. Arkansas are hereby authorized and ordered sold In the total principal amount of *5 , 300, 000, the proceeds of the sale of which are necessary to provide funds to refund the out- standing bonds of the City ' s Sewer Revenue Bond Issue dated Janu• ary 1, 1946, the City4s Water Revenue Bond Issue dated December 1 , 19480 and the Cityls Water Revenue Bond Issue dated December 1 , 1952, A" to pay the cost of constructing the Improvements , including an&Ueering, legal and other necessary expenses incidental thereto and to the issuance of the bonds and including a aum for interest durin& the construction period , Tile bonds bhall be sold at public same , aciall be dated June 1, 19581 shall bear Interest at such rate or rates as are fixed In the bid accepted at the sale, with the intareut on that portion of the pr1no1pal amount of oald bonds issued for the purpose of refunding the outstanding January 1, 1946, Decen- bcr 1 , 1948 and December 1 , 19j2 bonds not to exceed the Intere6t borne by said outstanding bonds , with t e intaraat to be payable ueml annually on June 1 and December 1 of each year commencing Decvmber 1 , 19,8 . The Interest shall be evidenced by Interest cou- pons and the principal and interest shall be payable in lawful money of the United States of America upon presentation of the bond or prover coupon at the office of tue Paying Agent desisnated by the purciiaaer, Tice bonds shall be negotiable coupon bonds payable to bearar and shall mature on December 1 of each year as follow:,, but shall be callable for payment prior to maturity as hereinafter set forthe YEAR ANOUXT 1959 800WO 960 9x61 83 000 1 , 000 1962 86 ; 000 19641 91 ; 0000 19G4" 94 , cavo 1977 g7, 0 19G8 10,000 19G9 1o7, Cit)() 1970 1110000 1971 115,o0i) MOOW 197 23 126,OW 1974 133382, WG 1000 1976 1410OW 197 q 471 1j1 ,000 e 1979 165 , 00© 1581) 1720000 1981 1$5000000 1982 188,x00 198, 197,00 206,000 Page 4 YEAR AMOUNT 1985 216OOO 19Wg� 225; 000 1388 24767* 0 1989 2 9, 000 1990 1991 2�'d 9000 1992 253 ,0OO The Mayor shall prepare or cause to be prepared a notice Of public $ale of the bonds and shall publish the same In succi news - paper or other publications in and outside of the State of Arkaneas as shall be determined by him to be in the best interest of the City . Zn addition to the usual provisions , the notice shall provide that the purchaser may name the Trustee and Paying Agent and that all ex• Penes of the issue , Including, but not limited to, the printing of the bonds , the Truatests fee and the fee of bond counsel , will be paid by the City ' s fiscal agents that the purchaser shall have the Privilege of converting the bonds to an issue bearing a lower rate or rates of interest , with the conversion to be In accordance with the Universal Bond Values Tables and upon such terms that the City receive no less and pay no more than it would receive and pay If the bonds were not converted, and upon such terms that the average rate of the converted bonds is not more than 3i4 of 1% leas than the average rate set forth in the bid of the purchaser, and ttjat the average Maturity cannot be shortened by mare than 12 months ; and the Mayor shall speer that the City reserves the right to re - jeat any and all bids . Section 4 . That the terms of the gale of the bonds , the conversion thereof , If Snys and the designation of the Trustee and Paying Agent shall be submitted to the City Council for approval , The bonds , so far as possible, shall be in the denomination of 410OU0 each, at,all be numbered consecutively beginning with No , 1 and in Its resolution the City Council shall set forth a schedule reflect» Ing the maturity of the bonds in numerical order on December 1 of each of the yes iu 1959 to 1992, inclusive, which schedule shall re- J • ♦ e • age fleet the yearly prinoipal maturities, the segd4=ual interest re- qulraments and the total requirewente , Thereafter the bonds of the luaus so approved ;shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City. Interest cottons attached to each of said bonds way have tine facuiwile mature of the Mayor littiograp sed or 1:rintsd thereon, VrAch signature shall have the saws force and effect as if lie had personally signed eaoh of said coins, The bonds, together with Interest tiureon, shall be payable solely out of the Waterworku and ljewer Revenue Bond Fund, as k*reinafter set forth, and shall be a valid clalw of the huiders thereof only against suoh fund, and the amount of revenues ?ledged to aucin fund, which amount of said revenues in hereby pledged and mortgaged for trio equal and ratable 9a ;1ment of the bonds of trAs luaus and shall be used for no other purpose than to pay the prinoiyal of and interest on said boandu and the Paying Agent ' s tees , excesyt " ' nnereinafter ayecifically provided. The bonds and Interest thereon shall not constitute an indebtedness of tris City within any constitutional or statutory i1mitatioa . lection 3 . That the bonda and coupons ahall be In cutn utnntially the followinea foss, and the Mayor and City Clerk are hereby euresaly authorized and directed to make all recitals con- talned t' Areiao Pale 6 UXr= STATU W AURRICA SPATS OF AN 4RRAR COU119lY W WASSIIIiNM CITY Q lAT1@T7WI= WA21RMiWJ13 AND 37C M RI7'IrHi IW AND COIN.STIMCTIOM FAWNUO am 77 OV ALL MN Sir TIMS PRFs s I'Aat the City of layetteville, County of Wash3n,Rton, and 3tato of Ax4cans s , aeianowl"ps itselt to on w4 for value received IMreby promises to Ar to bearer solely from the special tlmd prof vl4ed as berotaafter set forth the prlaol sl sun of Df3LtM In lawftl mosey of .tbo fasted states of America on the first day of December, 19 and to pay solely from Bald special fund late"*% hennas at the late of per cent L��) per coma, from date, acid-enf►wIly to the first 4418 of sofas and Doeembdr, camoescind December 1, 19580 upon presentstion cad sur• render of the annemed ceupoas as tinny senroraliy beaome 4w « Roth 9riMU42 and Interest of tats revenue band acre made payable at This bond is am of a dories of { ) revonnus boldo, adreatind E4 ) , dated June 1, 1958, sus bored from we (1) to laolwsivo, an of Isles tenor amd effect, exesps as to number, dew nomination, rate of Interest and maturity, and ars iseuea for ttje purpose of refunding the outstandln4 sewer Rebmann Bads of an issue Of the City dated January 1, 19", Yater Rovonue Bonds of on issue of the City dated December 1, 1948, Water Rovenwn Hands of an issue of the City dated December 1, 19571, sad for the purpose of proVidinnd for tine payment of the cost o[ Oftstraatum esNnslons , betterments and is`provema►ts to the watearwerlcs and sewer Systems (which are and A" to be operated as ore system and whleh will be hereinafter re- Tic bona is exprsssir Reds negotiable under tars i Wa of the Jtate or ArkMM) and is iasUed With the intent VAt the Iowa of Wo :Mate of AricaW &L &hall govorA the conatruction thereof. The.Pbond4 of this nasus aiwu be callable for waxeat Prior to maturity ir►r►�a WMMVIOa_ order ae,4ArJW AL=V Qd-4Atererot cin any intsrss ing date from the proceeds of the zals of the bonda not reauired ,for the Quojlstlon of ttta 3ayiroVeeunto and from autplus revenues derived from the operation of the agstma, After June 1, 3 , the bonds shall be callable for payment prior to maturity in Inverse numerical order on any interest ;laying date with funds from arw source at the prinoipal amount of the bow to be redsom", -together witi► "Cried interest theaton to the dots of re- dvwA41oi, plus a javaium of 2�:% if reddened on or Prior t to June 10 19rA, 2% if redssmed ti*reafOr and on or prior to June 1, liif), 2.P 3f redeemed thereafter and an or prior to June 2, 1966, 1% if redeemed thereafter and on or prior to June 1, 19670 ;% if radsqmad thovWter and on or prior to am i, 19689 sad no Prod ma if re- deemed thereafter, 3intice of the Cali for redemption shall be gub« liz 44od once a week for two wsakis barons tics date for suer redpei tlon In a MW64 aysr yubllsttsd In the City of Little Mock, Arkan asp and itaving a general circulation thmWiout the itate of Aftanaas, &wing tits number and eeturity of each bond being called, the first publioa- tirn to be at least fifteen (19) days prior to tine rsdsmltion date, and after the date fixed for redemption, each bond so called shall cea3e to bear Interest, provided funds for Stu Payment ars on deposit with tits P&JU 6 Agent at tiAt tide, Tim bond stall not be valid until it shall have been authenticated by tit* certificate hereon duly signed by It is hereby csrtifisd, recited and declared "t all autw, conditions and t tingta rseiuired to exlat, ha pan and be joarramood, ,jereeedent to and in tits Ittsuawe of this bond, have existed, Have . piet+ 9 , l hsypaned and have been garformed in duo tima , form and manner, W re- quired by law; that true indebtednaso represented by thio bond and the icsaue of wi4oh .it forma a Part does not exceed any constitutional or statutory limitation; and Wat sufficient of the ince and revenue wipich la decaamed to be derived from tits cparation of the dyatem lase boon Wled„ed to and will be Det aside into said ayeoiai fund for the payment of We principal of and interest on said bonds . IN WT'=Eja W4EREW# the City of VayettevIlle ,* Arkanaau , by Itz City Council , case caused this bond to be signed by tine Payor and City Clerk thoraof and sealed with tips cotporato , asal of said City, and has caused tine coupona into attached to be executed by We facsimile aiputura of oaid Payor, all as of tre first day of June„ 198. CITY OF PAYEE"TEVILLEt APMR;A:i 'j %y cleric . (aLQ (Form of coua!; ) 4uno On Uri flrat dW of Deoemboro lg tl'.3 City aS &ayottevilles €ashln3t= County, ArI£t=oaaaa, unlc:aa tho borne tQ wkUcla tUz cQu,, ]n to attack" lu paid grior tliaritos 1;3raby p8'Z.79loou W Paiv to bc;aror, U©1Qly haat of the fw4o oP00291ed in tla3 bond to wiAeia WAo coupon is €attoo4d In Xatif"csl mo=: y of Wo b'nite$ 3tatau of America at tha offiara of A bclrk; ola (G) Mcnts'aae inUeMat than dUO cn tart Watorocorku and :Weer E.0t xndi�;; and 0cwtoruotien V'wanaaa Bond, dated Juno 1, lV3$, and numbarod .. .... • �I tea eaett bo ad olzll appoar tho foll©wUi: , auraby cavWXlea tLat Baia Iz one of a oeriea of bonda 8eaorlb::d l:erain 0, . rumbored Zrom 1 to ln€slualv;:�, all of like tenor ana effoat except ej to number, denanInatUms rates oP latc roIIt and maturity. Ysdre 11 9+ctio 6. (a) That the City has heratotore Mod rates to be sharged for the sorvicss of the ttystsa by ttrdinanoe Noe �llD passed and approved on the _i vi` w or 793Q, to whish refsronoe 1s hereby IMAGO for the said rates and other prow visions of said OxMinaase portauum thearste, Which sshedule of rates a" provisions dare horsby oeantiirmod and coaatimsad. (b) That in the eve at watermarks and Sower ttevenue bo"* to refund the Outstanding Sower am outstanding water llevew" auris of the city aa " to oeasstaust the Improvements ars issuod, the MY covonrlunts aM agroos that tris nates established by said Oddi- AN"* its * l 14 � shall Seger lie, arodueed, trine MW W&UPMoarks Mad Sewer lcoveaue so"" are outstanding, ualess there is obtained from SM 1"O"Ndeat eoartlf1e4 publis aesountaat a oertifloato that the mot rovsxaos of the System for each of the two preceding fine" Years (est rovomms beift defined as Voss revomes less the rsasen- able up"Wes of operatisa a" mainton moo of trio SystoA, ineludleg all eaepense iteaao preperly att3Pibut4ble to operation and Maintenance WINO: goaserally aceepted socrosntiat praetioss applisabie to *Xalci- pal nratsrwearkS and sower systme) were, egaal to the aaeuat reatairod to be set aside for a deprosiatioh fund by the ordinance authsriting the iseuaatce of watsrwn►rics and .sewer lovome Sands plus at least I" of the maxims aroawt that wi11 booms due is any year for principal, iater"t a" sorviso sharges on all watorworks and :sewer tteveeas ROMs then outataaMing, t oothor with a writtoaa opudoa from said "Wepo adlnat certified public aesomt"t that the prap000d new rates will ,pr+oduse suffialo%% 00% arovem", as above defused, to Make the required deposit into the s014 deparosiatiM fmrA saws to leave a ba] snoe OWAPI to at least 2%)$ of the arauIMN mount that Will bee=* due in attar year for prlawipsi, Interest and service *barges an all watorwerks and Sewer Revenue )tends then outstaaaaaaliang , t►al40 the City revenants sad apses that said rates eha11, Wam necessary, frow tlaas to UM be increased in sa sweunt suffieLomt to ,provide total rrveanues t0V the hAWOIPabeve set loath requira Mts and to asaintain Pago ' 18 , all funds provided for herein. Seetiom T , That name of the Mollities or services afforded by the System shall be furnished without a sharge being node therefor , In the event that the city or any department, agency or instrumentality thereof shall avail itself of the facilities and services afforded by the systems the reasonable value of the services or raeilitiss no afforded shall be shamed against the City or such department, agency or instrurentality and shall be paid for as the charges therefor aeorue . The rev Me 60 received shall be deemed to be revenue de- rived from the operation of the system and ewall be used and aacomated for in the same wanner as any other revenue derived frac the opera- tion of the said System, provided, hOwevers that nothing herein shall be construed as requiring the City or any department, agency or in• strumentality thereof to avail itself of the faeilities or services afforded by the System. 4 Sectign 8 That the City Treasurer shall be Custodian of the gross revenues deMved from the operatiam of the system and shall give bond for the faithful disehargf of his duties As such austodian . The amount of the hood shall be S 25 000 . 00 and shall be ap- proved by the Trustee . From and after the delivery of my bonds issued under the ppevisions of this ordinance the System shall be saatinuowly apenated as a rrvawe producing undertaking. All **goys received by the Treasurer shall be deposited by him in such depository or depositories for the City as may be lawfully designated from tine to time by the City Council, subject , however, to the giving of security as now or as hereafter way be required by laws and provided that such depository or depositories shall hold membership in the Federal Deposit Insursnee Corporatism. All deyosits shall be in the nose of the City and shall be se designated As to indieate the par- tioulav fund to whieb the revenues belong . Any deposit in excess of the amount secured by the Federal Deposit Insurance Corporation shall be secured by bond or other direct or fully guaranteed obligations^ of the Muted States . Page 13 Section 9 , Waterworks and Sewer Bund, All revenues de- rived from the operation of the System, including the herein authorized extensions , betterments and igprovsments after their completion, shall be paid into a special fund, which In hereby created and desig- nated "Waterworks and Sewer Fund" . Such revenues so deposited in the Waterworks and Sewer Fund are hereby pledged and shall be applied to the payment of the reasonable and necessary expenses of operation and maintenance of the System* to ti3e yayment of the principal of and interest on the bonds of this Iseult apj! to the roviding of an ade- quate depreciation funds L LAW ser par r set forth, Section lO. Waterworks and SewerrJveration and XlLlntenance Fund , There shall be paid by the Treasurer from the Waterworks and Sewer Fund into a fund which is hereby created and designated "Water- works and Sewer Operation and Maintenance Fund" , beginning on the first business day of the month immediately following the month in Which the bonds are delivered and continuing on the first business day of each month thereafter while any of the bonds of this issue small be outstanding, an amount sufficient to pay the reasonable and necessary monthly expenses of operation, repair and maintenance of the System for such month and from which disbursements shall be pada only for those purposes , Pixed annual charges such as insurance Premiums and the cost of major repair and maintenance expenses may be computed and set up on an annual basis and one-twelfth (1/12) of the amount thereof may be Paid into the Waterworks and Sewer Opera" tion and Maintenance Fund each month, If in any montn for any reason there shall be a failure to transfer and pay the required amount into said fund, the amount of any deficiency scall be added to the amount otherwise required to be transferred and paid into said fund in the next succeeding month, If in any fiscal year a surplus shall be accumulated in the Water. works and Sewer Qk)eratlon and Maintenance Fund over and above the amount which sluall be necessary to defray the reasonable and necessary Page 14 coxit of oaeration, repair and maintenance of the F;y©tea during the year, uuob surplus main be transferred and deposited Sn the i,ateruorho and sewer Revenue Bond Fund (hereinafter created) or to tha Waterworks and jewer Depreciation Fund (hereinafter created) as the City may deaaijnate j provided, however, that any sucta transfer into the Water- works and Sewer Revenue Bond Fund shall be Sn addition to all osier Section 11. Waterworks= sal Sewer Revenue Bond Fund. (a) After making the montxaly de:,osit Sn trap Waterworks and Sewer Caeration and Maintenance Fund, tats Treasurer a shall trans - far and p from t a Waterworks and taxer Fund into a asocial fund, which So hereby created and designated "Waiterwurke and Serer Revenue Bond Fund" taae suns In the amounts and at tile times hereinafter a stated In snub-aeotion (b) for the purpose of providing funds for the ;ayaent of the principal of and Interest on the bonds iierein_authorized and tine Paying Agent' ss roes, as they mature according to a schedule to be a set up and ap arovad by the City Council after tie terms of tine sale of tUe bonds and the conversion ttieroof, If any, have been a e- yrcved by the City Counoil, and as a reserve for oontingenole3. (b) TAat there ahSll be paid by the Treasurer trta the Waterworks and Newer Fund Into the wateraorka and Gower Revenue Bend Fund, beginning on tiao first business day or tila month Immediate1 following the month In wbioh the bonds are delivered, and ci,ntanuing can the first busineus day of each month thereafter until an out- standing bonds of t14 Issue with interest tiaereon have been Bald In full, or provision made for ssuoia payment, a Bum equal to one- fiftii (1/5) of the next installment of interest and one -tenth (1/1©) of the next inatal3aent of principal, and an amount suffictunt to a° - vide for the Paying Agent's fees, on all outstanding bondz j provi ed, iaoarever, tiiat when there aiaall aave been accumulated In said Waterworks and Cewa3r Revenue Bond Fund a resserve for continVIncloss in tia amount of $300,COD, sca long at; said reserve for contInJ;Gncles is maintained Page 15 in that amount the monthly payments may be reduced to one -sixth (1/6) of the next. Installment of interest and one -twelfth (1/12) or the next installment of principal, and an amount sufficient to provide for the Paying Agent's tees, on all outstanding bonds. (a) If the revenues of the Waterworks and Sewer System are insufficient to make the required payment cn the first business day of the following month into the Waterworks and Sever Revenue Bond Fund, then tine amount of any such deficiency in the payment made shall be added to the amount otherwise required to be paid into the Voter - watts and Sewer itevercue Bond Fund an the first business day of the next month. (6) If for any reason the Treasurer stall fail at time to make any of the required ysyssnts into the Waterworks and sewer Revmas Bond Fund, any Suss then held as a reserve for contingencies shall be used to the extent necessary in the payment of the principal of and interest on the beads, but such reserve shall be reimbursed frc. the Waterworks and Sewer Pumd before any of the moneys in the Waterworks and Sewer Fund shall be used for any other purpose except for asking the palmate hereinabove required to be made into the Water- works and Sewer Operation and Neixtenance Fund and into the Waterworks and Sewer Revenue Bond Fund. Said reserve for contingencies shall be used solely as herein provided. (e) When the moneys held in the waterworks and Sewer Revenue Bond Pund, including the reserve for cuntingenclea, shall be and remain sufficient to pay the principal of and Interest on all the bonds then outstanding, and the Paying Agent's fees, the Treasurer shall not be obliged to snake any further payments into the Said Waterworks and Sewer Revenue Bond Pund. Fund shall be used solely for the purpose of paying the principal of and interest on the bonds of this issue and tie Paying Agent's fees, except as herein Specifically provided, If a surplus shall exist in r • a • I. a f • • • .. S payments .• • 1. C t u♦ i • ♦ a •a•i • bonds , r.i t •.. S a may •. .• .• •i • Y •+ .Ni .f I f• r I'1 rf. • ♦ • f t • • ... • .I •:.i •d I Y • L . t (R) It shall be the duty oP the Treasurer to withdraw from • • r. i , i "t. • I Y Y t i 'J coupon .) Y • 1 l♦ } ! to i :• rn 1 1 • 0 ryi } '5.. i i s .t •: 1 T� fy d V f• rt• `. 1 J • ♦ • by a pledge of all the revenues required to be placed into the Water- works and Sewer Revenue Bond Fund. Said pledge in favor of the bonds is hereby irrevocably maae according to the terms of this ordinance, and the City and its officers and employees shall execute$ perform and carry cut the terms thereof in strict conformity with the provisions of ti4a ordinance. Section 12. Waterworks and Sewer Depreciation Fund. After making the required payments into the Waterworks and Sewer Operation and liaintenance Fund end the Waterworks and Sewer Revenue Bond Fund, there shall be paid by the Treasurer ftar the Waterworks and Sewer Fund into a fund, wr.'$lob is hereby created and designated "Waterworks and Sewer Depreciation Fund', on the first business day of the month imaediately following the month in which the bands are delivered and p. page 17 continuing on the tint business day of each month thereafter while any of the bands of this issue are outstanding, 3% of the revenues of the Watt n arks and Sewer System which remain after the required payment Into the Waterworks and Sewer Operation and Maintenance Fund has been made. The moneys in the Waterworks and Sewer Depreciation Fund &hall be.used s01ely for the purpose of paying the cost of replaaenents made necessary by the depreciation of the Waterworks and Sewer system• It in any fiscal year a surplus shall be accumulated in the Waterworks and sewer Depreciation Fund ant and above the amt necessary to defray the cost of the probable rsplacoments during the then current fiscal year, and the ant ensuing fiscal year, such sur- plus nay be transferre4 and paid into the Waterworks and Sower Revenue Bond Fund= provided, howwer, that such payments into the Waterworks and Sewer Revenue Bond Fund shall be in addition to all other payments hen inbefore required to be made into the said Waterworks and Sewer Revenue Bond Fund. Section 13. That any surplus in the Waterworks and Sower Fund att.: kind full provision for the other funds herein provided shall be used as follows: (a) There &hall be paid from the Waterworks and Sewer Fund into a special account which is hereby created and designated "Water.. work* and Sower Imergenoy Account", beginning on the first business day of the month immediately following the month In which the bonds an delivered sad continuing on the tint business day of each month thereafter, the sum of $1,250.00, which deposits shall continue until the principal amount in the said mnergency Account shall equal $150,000,00. It in any month for any reason there *hall be a failure to transfer and par the required amount into said nasrgenoy Account, the amount of the def1oienoy shall be ad4ed to the amount otherwise required to be transferred and paid into said Imergency Account in the next succeeding month. Naneys in the Bsergency Account shall be used Page 18 to the extent necessary to most any emergency arising out of or affecting the continuous operation of the System aa.a revenue pro- ducing undertaking for which there are no other funds available or for the preventing of a default in the payment of principal and in- terest or performing any covenant of the City herein contained for which there are no other funds available. However, in the event of any such use, the said Emergency Account shall be reimbursed from the waterworks and Sewer Fund from the first moneys therein avail- able therefor, The said Emergency Account shall be maintained in at least the amount of ,150,000.00 while any bonds of this issue are outstanding. Any surplus in excess of the $150,000.00 may be transferred to the Waterworks and Sewer Revenue Bond Fund, but any such transfer shall be in addition to all other payments required to be made into said Waterworks and Sewer Revenue Bond Fund, (b) After complying fully with the provisions of subtpara- graph (a) of this section 13, the remaining revenues may only be used, at the option of the City, for calling bonds for payment prior to maturity in accordance with the provisions herein set forth for call and payment prior to maturity or for making extensions, better- ments an, improvements to the System. Section 14. That payments from 'an funds except the Water- works and Sewer Operation and Maintenance Fund shall be made by check or voucher signed by the Treasurer and the Myor, and payments from the Waterworks and Sewer Operation and JMintenance Fund shall be made by check or voucher signed by the Treasurer and the Waterworks and Sewer Superintendent. The checks or voucher* shall be drawn on the de- pository with which the moneys in the particular fund $hall have been deposited and each such check or voucher shall briefly specify the purpose of the expenditure. Section 13. That the City hereby agrees that all payments on the bonds and interest shall be made only through the Paying Agent. Al]. bonds paid or purchased either at or before maturity shall be can - called when such payment or purchase is made, together with' all unm matured coupons appertaining thereto, and held by the Treasurer and shall not be reissued. All unpaid interest coupons maturing on or prior to the date of such payment or purchase shall continue to be lags 19 payable to the respective bearers thereof. year Sag_ Section 16. That That System shall be operated on a fiscal and mid - authorized hereby and issued hereunder shall be callable for payment prior to maturity in as- oerdanee with the terms set out in the bond tom. Section 3a. That as long as any of the bonds authorised hereby are outstanding, the City shall not issue or attempt to issue any bonds claimed to be entitled to a priority of lien on the revenues of the System over the lien assuring the bonds of this issue, in- cluding the herein authorised and any and all future extensions, betterments and igrovemsats. Nothing in this ordinance shall be construed to prevent the issuance by the City of >myretteville of additional bonds to finance or pay the cost of contracting any future extensions, betterments or improvements to the Systeaj provided, however, the City shall not authorize or issue any such additional bonds ranking an a parity with the outstanding bonds of this issue, unless and until there shall have been procured and filed with the Trustee a statement by an in- dependent certified public aoeountsnt not in the regular employ of the City reciting the opinion based upon necessary investigation that net revenues (in this paragraph defined as the gross revenues of the System less the required depreciation tables and the operation and maintenanes expenses as determined by the independent certified public accountant)ln any two of the three fiscal years immediately pre - coding the fiscal year in which it is proposed to issue such addi- tional bonds shall equal 150% of the assists amount that will become due in any year thereafter for principal, Sateres; and service charges on the bonds then outstanding and the bonds then proposed to be issued. Section 19. That it is covenanted SM agreed by the City with the holder or holders of the bonds, or lair of this, that it will ffegew 20 faithfully and punotuaily perform all duties with reference to titre System required by the Constitution and laws of the State of Arkansaa, Including making and collecting of reasonable and sufficient votes lawfully established for services rendered by the System, segregating the revenues of the System and applying them to the respective funds herein created. Section 20. Vat the City will keep proper books of accounts and records (separate from all other records and accounts) in which complete and correct entries shall be made of all transactions relating to the operation of the System, and such books shall be available for inspection by the holder of any of the bonds at reasonable time and under reasonable circumstances. The City agrees to have these records audited by an independent certified public accountant at least once each year, and a copy of the audit shall be delivered to the Trustee and to the original purchaser of the bonds and made available to in- terested bonds`holders. In the event the City fails or refuses to make the audit, the Trustee, or any holder of the bonds may have the audit made, and the cost thereof shall be charged against the Waterworks and Sewer Operation and )Maintenance Fund. Section 21. That the City covenants and agrees that it will maintain the System In good condition and operate the same in an efficient manner and at reasonable cost. While any Revenue Bonds are outstanding, the City agrees that it will Insure and at all times keep Insured, In the amount of the actual value thereof, in a re - spans ibis insurance company or companies authorized and qualified under the laws of the state of Arkansas to assume the risk thereof, all properties of the System against loss or damage thereto from fire, lightning, tondo, winds, riot, strike, civil commotion, maittioua damage, explosion, and against loss or damage from any other causes customarily Insured against by private companies engaged in a similar type of business. The insurance policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its Interest my+ appear, and 2aG0 21 are eitefer to be placa4 in tiuz�euat� of ti?o Trurtea or uatiotactory evidence or eaid Snauranoe &all be flied uitci t Tnuteu. In the event of 1QS, ti13 Lroccodc ur au ,i insurance d.zall be applied solely toward tine ve unatruaticn, ro,)iacas2nt or ro,Osir or the 3ycztan, and In such event the city WSll$ witA reasonaiale ramptnecs, cauaa to be co'ancee4 and cusplated tie reconstruction, reaaeemant arA repair work. If such proceeds are *ore than sufficient for aucbz purpoyea, the baance remaining ehall be de,zoaited to te orsdit of the ¶ater- worke and ;,ewer Fund and If azuoii QrooeedAl esAall be insufficsent for sucza purpuces tie defloicancy csilall be cuyplied, first, fro mane u in We WaterwoPV end Zeter De oatlon Fund, and second, from moneyu in ' ateraorica and Geer C,,>ssration and Maintenance Fund, and tizird, from available monuyss In the ' gterworks and U carer Fund, and fourth, roans moneys in t1 a tutarrarks and Gower Emergency Account. Not4ng iereSn stall be construed au requiring the City to expend any Amdc for co?eration and maiatenanco of tae Gya teas or for premiums on Ito insurance winch are derived fro* uourcea other four the operation uP `Gzzee Uye 42, but ncitEli,ng twin stall be construed as preventing ti,e City' fuss doing cu. weoti in 22. Tizat eio long An any of the bonds are outotandiln$, the city covenanto and agrees that It will not mortgage, pledze, or citi►arsize enouaaber Us sofam or as>ir ;part tizereeof, Including say and all bettermacnta and Uwi`raveuaanta thereto cr any revenues is from, exCept as ilereein a'r vlded, and will not cell, lease, or otherwSae dSs,yosa of as r substantial portion of toe saw. To the end that a reaurd of the pludi a cef the revenuua and of the agreement not to mrsrtgage the 3y�tom am► r be prouerved, tA0 City Clergy: ict hereby autrorized and directed to the with the Recorder of Wactisigtcn County, Arkauseaa a copy of tinicz ordinance duly certified, with in- ctructiunfo that the t a o be recorded In tA0 otfico of ca14 County Recorder as In the cane of deeds and urtiace. "action 23. Tiaat We owner or oar a at all iaaprcvcc property lying, within tiz® area that will be Gerved by the ;sewer Z;y©- • Ipy �. `C 2 tea, after the proposed S ?rovementl and extension have been made, era hereby directed and required to connect all toilet and waoto water faoilitica of uch SmArovvd.property witiaid aewar Lystem as aocn au the.service is availablej and the owners of property that lu Sm arovad after t o ooapletion of the SaprOVeWnta and aXtenaiona to the said Sower Lyatom small Saadiateiy connect the toilet and waste water faoilSties of cuot ,voperty with the sewer Sy€atem, 3oction 24. Teat tas City shall send or cause to be cent a twit ten notice to any owner of Sayrovad property that can be sorvad by tics L3earar Lyutera but Is not connected to make such connection within tidrty (30) days from the date of said notica. If, after maid notice, the poverty owner fails to wake sucks connection the City agra©en to Institute appropriate action Sn a court of ocwapetent jurlcdiotion to CCza1 such connCction. more, an yaro tarty owner wixe failu or refuses to connect i4$ Stgproved iroperty with the Liowar L;atea after being notified to do eo shall be guilty of a miodemeancr and upon conviction shall be fined in any sum not to than Two D llara ($2.Co) and not more tan Tan tallax ($1Q,00), and each day'o failure or r tw)al after the expiration of the time fixed in ti`'a notice to make the connection shall be a oaparate offensoj provided, however, that tine yrovSsiona of trim Qontenco avail be effective to make quota failura a mi .demeanor only Sn th3 event tha City Ueealth 0f2icar, or otiar duly designated individual or board, iris found and dotertn3ned that such failure an the part of any particular property ow.enar cOu3- utStutea a hazard to to y'ubllc talth and safety of tiro inhabitants of the City. Lectlon 2�. Tat t+:cro oa«all be a ©tatutory mQr*sa.e lien upon the Waterworks, which shall exist in favor of the holdora ox trio bonda, and eacia of them, and in favor of the holders of tip cou- pun3 attached to tea bondti, and the aaterworzca Qt' 1. remain cubjaet to sauetz Gtatutory more , .GO lien until payment Sn full of tLe Sn- turout on and prine i*;a1 of the bonds, provided, however, tiat cocas cstatutory mort oge lien shall be interpreted S000$SDLJ to ti za do- Vaao 23 oioion or file Crean -Court of ttie State of Arkans as in a of aarri- o9XA a Braswell, oWra, ;,cation 26, (a) That the City covenant3 and ado© taat the C.oldero of toe r;'ater&or1w and $Ewer Revenue Bondu &aall Lava the protection of tole aroviaiona or Lisotion 13 of Act 132 of to Alta of Arkanuau of 1933 (Ark. State. 19-4113), and that the City sai11 diligent: 3 Qroc eed to enforce the Zion or unpaid cower of tea against the prarmiuea aarvad by to t$atem anti to collect the aunt due tosether with t~.e penalty and eienaea auttsorized by said Act 132. And, if tree City 1all fail to proceed within thirty (30) days after written request ciiall have been filed by the Truwtee, tta Trustee may, and ui%on the written r0que3t of the holdera of not 1030 than ten per cent (1C%) in principal amount of use pateroorIto end Cower Revenue Bondi t;:en outstanding csivan„ Proceed to entopce said lien in accorQan o with and s+urtuant to the autfaorixation of acid Act 132, (b) T?at if there be any default in the payaent of tae BrinoUal of or interest on any Watenorka and sewer Revenue Bond, or if tafl City defaults in any W'aterworka and sewer Revenue Bund Funs requirement or in the performance or any of the other covenants acantained and set forty in toms ordinance, tole Truwt0e miry, and uj on tine written requa:1et of tT.e twldera of not lesu than ten per cent (AC) in s rinotpal mount of Waterworks and Sewer Revenue Benda then cutcstanding shall, by prow suit coxdel the perlormanae of tre duties of the officialo of trte city au c.et fort" in Act 331 of tie Acts or Armen a3 of 1933, as amended, Act 132 of ttae A3tu of Arkannaes of 1933 and Act 297 of tze Acts; of Arkanwac of 1937, as amended, and, in ts`.e cage of a default in tae payment of to principal of and intereot on any of the cut3tandinz Waterwork3 and Cewer Revenue Bondi, or if the City fade to complete any other obllsation which it iaereln UtJ3WAQ3, and ouch aesault o4all continue for thirty (30) daayo tla'e- ater, tine Tru3te3 matt', and upon the written request of Bsaldero of not 1e o than ten per cent (lam) in ;principal amount of the Water- Page 24 r works and 3 wee Revenue Bonds then outstanding shall, apply in a proper action to a court of competent Jurisdiction for the appointment of a receiver to adainister-the , rstem on behalf of the City and the bondholders with power to charge and collect (or by mandatory in- junction or otherwise to causes to be oha�rged and collected) rates sufficient to Provide for the payment of the expenses of operation, repair and maintenance and to pay any bonds and interest outstanding and to apply the revenue in conformity with the provisions of said Act 131 of 1933, as amended, Act 132 of 1933, and Act 297 of 1937, as amended, and with this ordinance. When all defaults in principal and interest payments have been cured, the custody and operation of the System shall revert to the City. (o) No holder of any of the outstanding Waterworks and Sewer Revenue Bonds shall have any right to institute any suit, action, mandaaaa or other proceeding in equity or in law for the protection or enforcement of any right under this ordinance or under said Act 131 of 1933, as amended, Act 132 of 1933, and Act 297 of 1937, as amended, unless such holder previously shall have given to the Trustee written notice of the default on account of which such suit, action or proceeding is to be taken, and unless the h lders of not 1026 than ten per cent (10%) in principal amount of the Waterworks and Sewer Revenue Bonds then outstanding shall have made written re quest of the Trustee after the right to exercise such powers or right of action, as the case may be, shall lows accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers herein granted or granted by said Act 131 of 1933, as amended, Act 132 of 1933, and Act 297 of 1937, as amended, or by the laws of the State of Arkansas, or to institute such action, suit or proceeding in its name, and unless, also, there shall haw been offered to the Trustee reasonable security and indad ty against the costs, expenses and liabilities to be incurred therein or thereby and the Trustee shall have refused or neglected to comply wM such v 23 rust wttt:.ln arcaccnablo time, and ouch notification, requeat and otter of indemnSty are imraby declared in every such aa'ae, at tae nation, of ta Trustee, to be condltiono crecedent to tiro execu- tion of the goweri -r•J• t eta of this ordinance or to any other roaady heretmder. It So understood and intended that nt cue or more u.olderc of tr7z torts hereby cecured ehall have any riz?at in any amie r'zatover b;r Plo or their action to atfect,dieturb or prejudice tha cecurity of tUo ordinanco, or to enforce arty right ttereun ter oxce,t in the manner ierein pravlded, tLat all 3'oceud1nzjo at law or in equity z all be instituted, had and maintained. in the canner herein provided anti for tim benefit of all WIdera of the outstanding bonds anti oou, zua, and that any individual ri to of action or other ri t divan to one or more of ouch :oldera by ].asp are restricted by this ord4nonco to to rIaLto cna roaediea herein lrovided. (a) b`at all rishto of action under tt4c crdinanco or under any of the bores secured Vereby,•onforclble by the Trustee, l3? be enforced by it wSt.%out tc`.e posceacion of any of tt•.e bondo or eouvona ajarta2nSn3 thereto, and am; sects oust, action or proceadinv, in- stituted by the Tructoe ohall be brow it in Ito name for t$ benefit of all t..e t.olderz of cuci bonds and coupuna, cubseot to the pro- vlaic of thin ordinance, (e) Tat no remedy conferred upon or reserved to to t .. . j.: !. t .4 . ii • 1 * •# ,au 1 . e e m (C) T•'iat no delay or omiaulon of t€≥e Vhruatee or of any Pass 26 (g) That the Trustee may, and upon the written regUest of the holders of not less than ten per cent (10%) in principal amount of Waterworks end Sewer Revenue Bonds then outstanding shall, waits any default which shall have been ramsdied betore the entry of final judgment or decree in any.suit, action or proceeding instituted under the provisions of this ordinance or before the completion of the enforcement of any other reaedy, but no seen waiver shall extend to or affect any other existing or amt subsequent default or defaults or impair any rights or remedies consequent thereon, section 27.. That the Trustee shall only be responsible for the exercise of good faith and reasonable pradence in the execution of its trust. The recitals in this ordinance and in. the face of the bonds an the recitals of the city and not of the Trustee. The Trustee shall not be required to take any action as Trustee unless. St shall have been requested to do so in writing by the holders of not less than ten per cent (10%) in principal amount of the Water- works and Sewer Esteems Scads them Outstanding and shall have been offered reasowFbie security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby, The Trustee any resign at any ties by ten (10) days' notice in writing to the City and tine majority in value of the holders of the outstanding Water- works and Sewer Revenue Bonds at any time, with or without cause, any 'reeave the Trustee + In the event of a vacancy in the attics of Trustee, either by resignation or by removal, the majority in value of the Holders of the outstanding Waterworks and Sewer Revenue Bonds say appoint a new Trustee, such appolntsent to be evidenced by a written instrument 'Jr instruments filed with the City Clerk. It the aajority in value of the holders of the outstanding Waterworks and Sewer Revenue Sands shall tail to fill a vacancy within thirty (30) days after the sane shall occur, than the City shall forthwith desig- nate a new Trustee by a written instrument filed in the office of the City Clerk. The original trustee and any successor Trustee shall Pale 27 the a written acceptance and sgreewent to execute the trust iaposed upon it or thew by this ordinance, but only upon the teas and con- dibsona set forth in this ordinance and subject to the provisions of this ordinance, to all of which the respective holders of the bonds ease. Such written acceptanoe shall be filed with, the City Clerk and a copy tleereof shall be placed in tin bond transcript, Any successor Trustee shall have all the powers $tereln granted to the original trustee. 5eoton 8s That when the bonds herein authorized to be issued have been executed by the lhyor and City Clerk and the seal of the City Sayressed, as herein provided, they Shall be delivered to the Trustee, which shall authenticate thew and deliver thus to the purchaser upon delivery to tin Trustee of the outstanding bonds of the January 1, 1946 issue, the December 1, 1948 issue end the December 1, 1952 issue with all unwatured coupons attached thereto, or the waking of an escrow deposit with the Trustee sufficient to pay the principal and interest and all other charges necessary to fully pay and discharge said outstanding bonds with interest at the next interest paring date and said outstanding bonds are duly called for psrysent prior to maturity at their aid next interest paying date, and the payment of the balance of the purchase price and accrued interest tram June 1, 195$. A suss sufficient to pair the first six (6) months' interest shall be remitted to the Treasurer for deposit in the Wstsrworks and Sewer Revenue Bond Fund and the balance shall be raitted to the Treasurer and deposited in trust with a bank that is a somber of the Federal Deposit insurance Corporation, said deposit to be secured by bonds or other direct or fully guaranteed obligations of the United States of Msrica, or by a corporate surety bond satisfactory to the Trustee, and said deposit shall be disbursed solely In payment of the cost of constructing the extensions, bettermsnte and iwproveerents to the System, including enginesrSng, legal and other necessary ex- pasta incidental thereto, but only on warrants, checks or vouchers i• c i it S 1 1 .' 5 L y i. di: <. i it s • St ♦ !r . I 1 • .t : t FYI i 's • ♦ a construction : . 1 fb': 111t d' ; :'♦ :1 • - _ _p 1, t.1 and f i - .!4 bettermuata and Swa ravcaentu to thle byatemm tae been conwieted, ti4Q fact shall be evidenced by the tiling with tfe Trustee and with the depository Sn w171oh tto aontnaotign fund Is deposited of a certificate signed by tine City Treasurer and by the engineer in charge of tie ccmttrunticn. Upon receS t of tf a above described certificate, tie depucitory with welch the construction fund is deposited oc'iail pay or transfer any recnSnhszj balance yurcuant to t*7e written direction or c:ieck signed by the Treasurer and the one other person deal zated by tam City for signing cfeoks on the construction fund, and any such remaining balance may be used for the calling of the bona of t 4s issue for payment prior to maturity or may be transferred to the WaterWorko and Bower Revenue Bond Fund, aecticn 29, (a) Tsat moneys ild for the credit of tlo Construction Fund uball, as nearly as may be practicable, be con- tinuously invested and reSnverted by tjle City Sn direct obligations of, or obligations, tIe &+rinclpal of and Interest on wi.lch, are uncon- ditionally cuarante®d by, the United Staters Government, which tzhall mature, or willoia shall be subject to redemption by the iuslder tereof at file option of such :.older not later tian six (G) months after the date of such Investment. (b) funeya Liield for tae credit of the reserve for con- ia.I J _ .1... � : i • .. • 1 I I I V • : continuously ditionally Guaranteed by, the United $tatea Government, which shall mature, or which shall be subject to.redcsmytion by tiie holder thereof, at the option of such holder, not later than twelve (12) yaara after the date of ouch investment. (c) Moneys held -for the credit of any Other Fund say, at the option of the City, be invested and reinvested by the City in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United Utatca govern- ment, Which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates w:ten the moneys held for the credit of the particular fund will be required for the purposes intended. (d) Obligations ao purchased as an investment of moneys in any ouch fund shall be placed in the custody of the City usurer and shall be deemed at all times to be a part of such fund and the interest acs thereon and any profit realized from such invest- ment shall be credited to such fund, and any 103s resulting from such investment shall be oi.aru;ed to such fund. Section JO1 That in the ©vent the,pffiee of Mayor, City Clark, City Treasurer or City Council shall be abolished, or any two or more of such Offices shall be merged or consolidated, or in tizu event the duties of a particular office shall be transferred to another office or officer, or in the event of a vacancy in any such office by reason of death, resignation, removal from office or other- wise, or in the event any such officer shall become incapable of perfor2Snj the duties of his office by reason of uicknesu, absence from the City or otherwise, all powers conferred and all obligations and duties impoced upon such office or officer ah`.all be gerform0d by the office or officer succeeding to the principal functions thareot, or by the office or officer upon whom such powers, obligationand duties shall be imposed by law, iflO 30 ueotion 1. Twat tie Maeor for cans SnzertSon 4n tSc;a So taerebby £Galan+ and declared to v'ayotteville, Atkannaa and of General ordSnance, to cata4cua ceiaU be attacked ctantially tite roUziSnz foray lfs taereby/� directed to ab1 t a Ou CQGl� c�9 Gtr ' be a noWupasar bub1L od Sn circulation ti:oreSn, t► o a notice cal ned by 6asa in cub- MUCO JA6l YCn that YB(D CSt' CGUDCU of Wo Qttv' an Va i1"itaii al4.1' y eaD1 3fl3J %tacae ad% tc'a t*io oz " n=u k v nattep cat cut; ra' t to 2fl Ccaat teJ t&ae tOuaanto of' ta'.i' t t-u=Q$° 633123 2e -c$? Ee4wvna and C=tMitUn omentalonQa Caer=4 In taus c n=uo; tt at ap I r cn Sn- bz2Qre We ozafl q. to O°C1l4Yax2k 1t, at t20 uuWait place of / / €. cm4u told l J Q�........... (/' l�fitst on Via'czvt D t : to. A atcta £tearSnj all Qb scot& nz an C cc ztSGna if4, Do ftcarC, tt Ci.a Cz uu eil win teto Q L act Qn £L) $o @U6.'1'M3 A -C, ".an t ca, tits tt C3J CL uTa 7k c, a • Lae 32 $eatiun 32, T+.at t1au ceAllranco ;y2.nl:l nvt ©reat3 a r tog onr nz1 and no r.4.t cab any 11n aall arise L n'ei ei' iJursuant to it until tie b©ndu aute'.c:rIzed by trsiu; ordinance o ' l be l ued and dollverad. eoticn 33, That t:a j rovSaiana ujta4s ordinance are eereby declared to be se, uvuble and St ravizion U311 tcd any reason be Geld ille l or Invalid, it acall not affect Was validity Qf t:l re cinder o tm Ordinance. weotlon 34. T.zt tall erdinane vQfl6maGlut3Qm and Arta e ware L in canfliot £ erowitib are aeriaby x'caaled to the extent o2 cuoi .eenflSot. OabtUn 33_. Taat it is .oreb�' aecertaiaed anti deo .az'ea Oat to ZatcncirkD and ilenP 3yatem uexl2n8 the City or Fayetteville, Asciamze3 Su w11w inadequate for the neet:c or t .o City and tLe Sn" tsabitant© trereal', tiara endangerins, the IWo, iiealt a and aat'aty or t23 Snisabitanta and tiSir iro; rty, and tt*t Em eaten3iana, batter- t:nta and lz,; uvaz=ZD required to alleviate acid bazanki can be ob- taSned only by t.e 4cauaneo Qt t1.a revenue bw4a aauthor' zed .LJ)rob el. It lu, teipreVcro, Cco1ered tat an ever noy eSSGtz and ti4a ordinance beSnZ. nece: nary fcr fete Ssuaodsate ; ervatSon cf tl:e subliss 6 cc, Licath and :;cay'" ety oafl tae often and be in eoreo From and after its hacaeazs. pap 7 4 fined to as the `":raters" ). Thle bon sad the series of which it fcta a part are isrsued pursuant to and 3n fun compliance with the Constitution and lama of the state of Arkuuusas, particularly Ant No. 131 of the Acts of Arkansas of 1933, as sanded, Act No► 132 of the Acts of Arkansas of .19;:3, Act Hog 297 of the Act$ of Arkansas of 1937, as amended, and the de - vision of the auprw Court of the Mate of Arkansas in Qj of as - ax. rs4, 209 AS, 1094, and pursuant to an ordinance of the City Colascil of the City of layettevilie, Arkansas duly adopted and ape proved, and do not constitute an indebtedness of the City of Say.tte- ville within any constitutional or statutory liaritatian. said bonds are not general obligations of the City of Bayettevine„ but are 0903a1 obligations tale solely tics an amomt or the nvesuem derived from the operation of the Systems which ado mt has been duly set aside acrd pledged as a special fund for that purpoas and identified as time Waterworks and sewer ann. Bond ptstd, created by Ordinance soil of the City of igettevl.Z,ie, Arkansas duly Passed an tae _____ day of _ . 19584 undf which this bond is autnorired to be inusd. The City of Fayetteville has fixed and has covenanted and agreed to maintain rates for rater and newer aervicea which Mall be sufficient at all times to provide tar the proper and reasonable exysnses of operation and maintenance of the aymtes, for the yaym. nt of the ytrinci t of and interest on the bands as they Mature, and the Paying Agent's tees, and to = m ass auate ,provision for the depreciation of the ,stem. There In a statutory mortars. lien uj as the Waterworks$, which bAsil east in favor of the holders of the bonds, and each of times, and in favor of the holders of the coupons attached to thi bonds, and the Waterworks shall remain subject to such statutory mortals. lien until payant in full of the interest on and ?rincipal of the bonds, provided, rzawevor, that such statutory mortgaao 3iet shall be interpreted according to time decision of the Supreme Court of tae state of Arkansan In "iy of Harridan v. Hrrpxall, ttiy ra, 4 PURFLE • ORDINANCE' NO 1166 1 '.N ORDINANCE AUTHORIZING THE ISSUANCE OF. WATER-• W ORKS AND SEWER REVENUE BONDS BY THE C rY OF FAYETTEVILLE, ARKANSAS FOR THE PRUPOEE OF RE- C . FUNDING CERTAIN OUTSTANDING SEWER REVENUE BONDS AND WATER REVENUE BONDS AND FOR THE PURPOSE OF CONSTRUCTING EXTENSIONS, BETTERMENTS AND IMPROVE- MENTS TO THE WATERWORKS AND SEWER SYSTEM; MAKING PLEDGES AND COVENANTS TO INSURE THE PAYMENT OF THE • BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY., • WHEREAS the Waterworks and Sewer Systems -presently serving the1City of Fayetteville, Arkansas (which are and are to be operated as one syst and which will be hereinafter referred to as the "System") are inadequate for the • needs of the inhabitants of the City; and ' M1 • WHEREAS the City Council has determined that the System should be im- • proved and extended and has had prepared by duly qualified consulting engineers preliminary reports and estimates of cost of the needed extensions, betterments • and improvements, which reports are on file with the City Clerk and to which reference, may be made by any interested person, and which in general call for the following extensions, betterments and improyements: Construction of a dam on the White River, a pumping station, 20" or larger pipe line from the dam, and additions to the filter plant; extensions, betterments and improvements to the water distribution system; and extdnsions, betterments and improvements to the sewage collection systni and the sewage treatment facilities ( which will be hereinafter referred to as the "improvements"),all at an estimated cost of $4,150,000, including engineering, legal and other necessary expensesincidentalc to the construction of the improvements and to the issuance of revenue bonds; and' J`; WHEREAS the City does not have funds available to undertake and complete the improvements, but can obtain the same by the issuance of revenue bonds; and WHEREAS in connection with the financing of the cost of the improvements, it will be necessary for the City to refund the outstanding bonds of an issue of $ewer Revs"nue Bonds dated January 1, 1946, there being $73, 000 in principal amount of said bonds outstanding, an issue of Water Revenue Bonds dated December 1, 1948, there being $646, 000 in principal amount of said bonds outstanding, and an issue of Water Revenue Bonds dated December 1, 1952, there being $432' 000 in principal amount of said bonds outstanding; NpW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas MICROFILMED DATE 0Cr 9 ..1978 REEL .,may.. Ml: t'I.1-{ i V�^..•--^.^Yr^..J1T--/ RUFFLE P FU f t E. RUfiFL_.E 1 _t•' .. .. '. 1,.,\Nvlt':�LV Y• r... Y. 1,T1iyi .d fi: Se �, Page 2 1 Section 1. That the necessary steps be taken to refund the outstanding bonds' ;. of the Sewer Revenue Bond Issue dated January 1, 1946, the outstanding bonds of -the' Water Revenue Bond Issue dated December 1, 1948,and the 'outstanding bonds. of the Water Revenue Bond Issue dated December 1, 1952, and that the above des- cribed improvements to the System be constructed. • Section 2. That the City Council hereby finds and declares that the period of usefulness of the System after the completion of the improvements will be more than forty (40) years, which is longer than the .term of the proposed revenue bonds. Section 3. That under the authority of the Constitution and laws of the State of'Arkansas, particularly Act No. 131 of the Acts of Arkansas of 1933, as amended; Act No. 132 of the' Acts of/Arkansas of 1933, and Act No. 297 of the Acts of Ark= ansas of 1937, as amenddd, and the decision of the Supreme Court of the State of Arkansas in the case of City of Harrison v. Braswell, 209 Ark.. 1094, Waterworks and Sewer Refunding and Construction Revenue Bonds of the City of Fayetteville, Arkansas are hereby authorized and ordered sold in the total principal amount of $5, 300, 000, the proceeds of the sale of which are necessary to provide funds to • refund the outstanding bonds of the City's Sewer Revenue Bond Issue dated Janu ary 1,. -1946., the City's Water Revenue Bond Issue dated.December 1, 1948, and • the�City's Water Revenue Bond Issue&dated December 1, 1952, and to pay the. coat of constructing the improvements, including engineering, legal and other .necessary expenses incidental thereto and to the issuance of the bonds and dinclud - ing a -sum for interest during the construction period. The bonds shall be sold at public sale, shall be dated June 1, 1958, shall bear interest at such rate or rates.. as are fixed in the bid accepted at the sale, with the interest on that portion of the • principal amount of:said bonds issued for the purpose. of refunding the outstanding January 1,. 1946, December 1, 1948 and December 1, 1952 bonds not to exceed the interest borne by said outstandtg bonds, with the interest to be payable semi-- annually on June 1 and December ib of each year commencing December 1, 1958. The interest shall be evidenced by interest coupons and the principal and interest: " .shall be payable in lawful money of the United States of America upon present- -ation of the bond or proper coupon at the office of the. Paying Agent designated by the purchaser. The bonds shall be negotiable coupon bonds payable to bearer. rand shall mature on December 1 of each year as follows, but shall be callable. for payment prior to maturity as hereinafter set forth: YEAR AMOUNT • 1959 1960 • 1961. 1962 1963 1964 1965. 1966 1967: • 1968, $ 80,000' 81,000 83,000 - 86,000 ' 89,000' 91,000 94,.000 • 97,000: 100; 000' 103,000 ; - . • .- •:;-' . -4 �- FIPPLE 1'UPCLE. PURf i 1969 •. 107,000 1970 -. :111, 000 1971 115,000 1972 120,000 1973 126,000 •. 1974 132,000 1974V 138,000 1976 144,000 1977. . 151,000 - • 1978 158,000 1979 165,000. 1980 -172,000 1981' • 180,000 1982 .. 188,000 1983 1 ✓ t1198,000 1984 ✓ 206,000 1985 216,000. •• •, 1986 . 215,000 •- - 1987 236,000 • 1988 247,000 • -. 1989 - 258,000 1990 269,000 ; 1991 Z82,000 , 1992 253,000 - ✓. • The Mayor shall prepare or cause to be prepared a notice of public stile - • of the bonds and shall publish the same in such newspaper or other publications •in and outside of the State of Arkansas as. shall be determined by him to be in the best interest of the City. In addition to the usual provisions, the notice shall • provide that the purchaser may name the Trustee and Paying Agent and that all expenses of the issue, including, but not limited to, the printing of the bonds, the Trustee's fee and the fee of bond counsel, will be paid by the City's fiscal agent; that the purchaser shall have the'privilege of cniverting the bonds to an issue bearing a lower rate or rates of interest, with the obnversion to be in accord-.` ante with the Universal Bond Values Tables and upon such terms that the City re- • ceive no less and pay no more than it, would receive and pay if the bonds were not converted, and upon such terms that the average rate of the converted bonds is not more than 3/4 of 1% less than the average rate set forth in the bid of the pur- chaser, and that the average maturity cannot be shortened by more than 12 months; - and the Mayor shall specify that the City reserves the right to reject any and all • bids - Section 4. That the terms of the sale of -the bonds, the conversion thereof, if any, and, the designation of the Trustee and Paying Agent shall be submitted to the City Council for approval. The bonds, so far as posstii4e, shall be in the denom- �M1�+K Y - -��I���✓ . .11�'v °UFci.E . F%JRE LE PURPLE. Page..4 ination of $1,000 each, shall be numbered consecutively beginning with No. 1 and in its resolution the City Council shall set forth a schedule reflecting, the maturity of the bonds in numerical order on December 1 of each of the years 1959 to 1992, inclusive, which ,schedule shall reflect the yearly principal mat- urities, the semi-annual interest requirements and the total requirements, Thereafter the bonds of the is$ue so approved shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the real of the City. Interest coupons attached to each of said bonds may have the facsimile sig- nature of the Mayor ligh'bgraphed or printed thereon, which signature shall have the same force and effect as if he had personally signed each of said coupons. The bonds, together with interest thereon, shall be payable solely out of the Water- works and Sewer Revenue Bond Fund, as hereinafter set forth, and shall be a valid claim of the holders thereof only against such fund, and the amount of rev- enues pledged to such fund, which amount of said revenues is hereby pledged and' mortgaged for the equal and ratable payment of the bonds of this is,s a and shall be' used for no other purpose than to pay the principal of and inters t on said bonds and the Paying Agent's fees, except as hereinafter specifically provided. The bonds and interest thereon shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 5. That the bonds and coupons shall be in substantially the following form, and the Mayor and City Clerk are hereby expressly authorized and directed' to make all recitals cont fined therein: i I. 41 • • • S. curer LL , ,:-,S I age -5. UNITED STATES OF AMERICA STATE. OF ARKANSAS COUNTY 'OF WASHINGTON CITY OF FAYETTEVILLE WATERWORKS AND SEWER REFUNDING AND CONSTRUCTION REVENUE BOND No. KNOW ALL MEN BY THESE PRESENTS: That the City of Fayetteville, County of Washington, and State of Arkansas',.' acknowledges itself to owe and for value received hereby prom ses to pay to bear .er solely from the special fund provided as hereinafter set forth the principal sum of. - DOLLARS in lawful monelg of the United States of America on the first day of December, 19 .and to pay solely from said special fund interest hereon at the rate of per cent ( %) per annupi, from date, semi=-, annually on the first days of June and December, commencing December 1; 1958; upon presentation and surrender of the annexed coupons as they severllly become due. Both principal and interest of this revenue bond are made payable at,' This •bond is one of a series'of ( )revenue bonds, aggregating ($ - ); dated June I, 1958, num- bered from one (1) to (• inclusive, all of like tenor and effect, except as to number, denomination, rate of interest and maturity, and are issued for the purpose of refunding the outstand ing Sewer Revenue Bonds of an issue of the City dated January 1, 1946, Water. Revenue Bonds of an issue of the City dated December 1, 19.48, Water Revenue Bonds of an issue of the City dated December 1, 1952,. and for the purpose. of providing for the payment of the cost of constructing extensions, betterments and improvements to the Waterworks and Sewer Systetns (which are and are to be operated as one system and which will be hereinafter referred to as the I'S�fetern"). •'This bond and the series of which it forme a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, partic- urlarly Act No. 131 of the Acts of Arkansas of 1933, as amended, Act No. 132 of the Acts iaf Arkansas of 1933, Act No. 297 of the Acts of Arkansas of 1937, ,as amended, and the decision of the Supreme Court of the State of Arkansas in .City of Harrison v. Braswell, 209 Ark. 1094, and pursuant to an ordinance of'the City Council of the City of Fayetteville, Arkansas, duly adopted and approved, and- , c F'LE FLiRFL:"• Page 6 PURPLE. do not constitute an indebtedness of, the City of, Fayetteville within any constitut- ional or statutory limitation.. Said bonds are not general obligations of the City of Fayetteville, but are special obligations payable solely from an amount of 'the revenues derived from the operation of the System, which amount has been duly set aside and pledged as a special fund for that purpose and illentified as the. Waterworks and Sewer Revenue Bond F'und, created by Ordinance No. (p of the City of Fayetteville, Arkansas duly passed on the Jday of ,. 1958, under which this bond is authorized to be issued, The City o5 ayetteville. has fixed and has covenahted and agreed to maintain rates for water and sewer services which shall be sufficient at all times to provide for the proper and reason able expenses of operation and maintenance of the System,Ifor the payment of the principal of and interest on the bonds as they mature, and the Paying Agent's fees, and to make adequate provision for the depreciation of the System. There is a statutory mortgage lien upon the Waterworks, which shall exist in favor of the holders of the bonds, and each of them, and ii favor of the holders of the coupons attached to thej,onds, and the Waterworks shall remain subject to such statutory mortgage Han until payment in full of the interest on and principal of the bonds, provided, however, that such statutory mortgage leen shall be inter- preted according to the decision of the Supreme Court of the State of Arkansas in City of Harrison v. Braswell, supra. This bond is expressly made negotiable under the laws of the State of Arkansas and`is issued with the intent that the laws of the State of Arkansas shallgovern •the construction thereof. • The. bonds of this issue shall be callable for payment prior to maturity n. in- verse numerical order at par and accrued interest on any interest paying date 'from the proceeds of the sale of the bonds not required for the completion of the.. improvements and from surplus revenues derived from the operation of the ,System.. After. June.1, 1963, the bonds shall be' callable for payment prior to maturity in inverse numerical order on any interest paying date with funds from any source at the principal amount of the bonds to be redeemed, together with accrued interest` thereon to the date of redemption, plus a premium of. 2-1/2% if redeemed on or prior to June 1, 1964, 2% if redeemed thereafter and on or prior to June 1, 1965, 1-1/2% if redeemed thereafter and on or prior to June 1, 1966, 1% if redeemed thereafter. and on or prior to June 1, 1967, 1/2% if redeemed thereafter and on or prior to June 1, 1968, and, no premium if redeemed thereafter. Notice of the call for redemption shall be published once a week for two weeks before the date for such redemption in a newspaper published in the City of Little Rock, Arkansas. .and having a general circulation throughout the State of Arkansas, giving the number and maturity of each bond being called, the first publication to be at least 'fifteen.(15).days prior to the redemption date, and after the date fixed for•redempt= ion,.; each bond so called shall cease to bear interest, provided funds for its pay ment are on depositwith the Paying Agent at thattime. . • rt1Pc.f RURELE•:•: Page 7 This :bond shall not be valid until,it shall. have been authenticated by the. certificate hereon duly signed by 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, is suance. of this bond, have existed, have happened and have been performed, in due time, form and manner, as required bylaw; that the indebtedness represented by this -bond and the issue of which it forms a part does not exceed any constitut- ional'or statutory limitation; and that sufficient of the income and revenue which is deemed to be derived froxn the operation of the System has been pledged.to and, • 'will be set aside into said pecial fund for the payment of the principal of and interest or said bonds. 1N WITNESS WHEREOF, the City of Fayetteville; Arkansas, by its City Council, has caused this bond to be signed by. the Mayor and City Clerk thereof sand sealed with the corporate seal of said.City, and has caused the coupons hereto attached to. be executed'bythe facsimile signature of said Mayor, all as .of;the first day of -June, 1958. CITY OF FAYETTEVILLE, ARKANSAS Clerk '.. (SEAL) :--: � A CUFILr FURfL�. ` _ PURPLE page: 8 (Form of Coupon) I. No; $ June • On the first day of December, 19 , the City of Fayetteville, Wash- • ington County, Arkansas"unless the bond to which this coupon is attached is paid •.prior thereto, hereby promises to pay to bearer, solely out pf the funds specified in the, band to which this coupon is attached DOLLARS 'in lawful money of the United States of America•at the. office of being six (6) months' interest then due on its Waterworks and Sewer Refuddl.ng and Construction Revenue Bond, dated June 1, 1958, and numbered 7 CITY OF'FAYETTEVILLE. ARKANSAS By • On each bond shall appear the following • CERTIFICATE hereby certifies that. this is one of a series of bonds described herein aggregating $• • , numbered from 1 to -•. ,,inclusive, all of like tenor and effect excppt as to number, denomination, rate'of interest and maturity. By,. • :.t$,..,. Page 9 ;Section 6. (a) That the City has heretofore fixed rates to be charged. for the services of the System by.Ordinance No. 1165 passed and approved on the 18th day of April, 1958, to which reference is hereby made for the said rates, and other provisions of said ordinance pertaining thereto, which schedule of rates and provisions are hereby confirmed and continued. .'(b) That in the event Waterworks and Sewer Revenue Bonds to refund the outstanding Sewer and outstanding Water Revenue,I Bonds of the City and to con struct the improvements are issued, the City costenants and agrees that the rates established by said Ordinance No. 1165 shall' never be reduced, while any. Water- works and Sewer Revenue Bonds are outstanding, unless there is obtained from an independent certified public accountaht a certificate that the net revenues of 'the System for each of the two preceding fiscal years (net revenues being defined as gross revenues less the reasonable expenses of operation and maintenance of the System, including all expense items properly attributable to, operation and maintenance under generally accepted accounting practices applicable to munici- pal. waterworks and.sewer systems) were equal to the amount required to be set aside for a depreciation fund by the ordinance authorizing the issuance of Water- works and Sewer Revenue Bonds plus at least 150% of the maximum amount that will become due in any year for principal, interest and service charges on all .Waterworks and Sewer Revenue Bonds then outstanding, together with a written .opinion from said independent certified.pubiic accountant that the proposed new rates will produce sufficient net revenue, as above defined, to make thi6 required • deposit into the said depreciation fund and to leave a balance equal to at least,150% of the maximum amount that will become due in any year for principal, interest and service charges on all Waterworks and Sewer Revenue Bonds then outstanding,, And, the City covenants and agrees that said rates shall, when necessary, from time to time be increased in an amount sufficient to provide total revenu✓✓es for the hereinabove set forth requirements and to maintain all funds provided for here- in.. Section 7. ' That none of the facilities or services afforded by the System shall be furnished without a charge being made therefor. In the event thit the City or any department, agency or instrumentality thereof shall avail itself of the facilities and services afforded by the System, the reasonable value of the services or facilities so afforded shall be charged against the City or such depart- ment, agency or instrumentality and shall be paid for as the charges therefor accrue. The revenue so received shall be deemed to be revenue derived'-(rom the operation. of the System and shall be used and accounted for, in the same manner as any • other revenue derived from the operation of the a id System, provided, however.,. • that nothing herein shall be construed as requires gtbe City or any department, • agency or instrumentality thereof'to.avail itself of the facilities or services- afforded' by the System. 'Section 8. That the City Treasurer shall be custodian of the gooss revenues derived from the operation of the System and shall give bond for the faithfuldis I1 ..M..i:.-l..c. u..ct..Y^, _t_ "f^ .1 ;-7- '......-... r._..,-...�....-.l.` ....�ir.%.r.+��-. cUFr'LE FURf PURPLE Page. 10: charge of his duties as such custodian. The amount of the bond shall bg $25; 000::00;. and shall be approved by the Trustee. From:and after the deliver of any bonds' issued under the provisions of this ordinance the System shill be continuously op erated as a revenue producing undertaking. All moneys reeived by the Treasurer • shall be deposited by him in such depository or depositories for t9e City as may be lawfully designated from time to time by the City Council, subject, however, to the giving of security as now or as hereafter may be required by law, and pro- • vided that such depository or depositories shall hold membership in the Federal Deposit Insurance5orporation. All deposits shall be in the name of the City and. shall be so designtated as to indicate the particular fund to which the revenues be- long. Any deposit in excess of the amount secured by the FederalDeposit Insur- ance Corporatioyshall be se tired by bond or other direct or fully guaranteed • obligations of the United States. Section 9. Waterworks and Sewer Fund. All revenues derived from the operation of the System, including the herein authorized extensions, betterments and improvements after their completion, shall be paid into a'special fund, which is hereby created and designated "Waterworks and Sewer Fund". Such revenues so deposited in the Waterworks and/Sewer Fund are hereby pledged and shall be applied to the payment of the reasnable and' necessary Axpenses of operation and maintenance of the System, to the payment of the principal of and interest on the bonds of this issue, and to the providing of an adequate depreciation fund, and such other funds as are hereinafter set forth. Section 10. Waterworks and Sewer Operation and Maintenance Fund. There shall be paid by the Treasurer from the Waterworks and Sewer Fund into a fund which is hereby created and designated "Waterworks and Sewer Operation and Maintenance Fund", beginning on the first business day of„the month immediately. following the month in which the bonds are delivered and continuing on the first_ business day of each month thereafter while any of the bonds of this issue shall be outstanding, an amount sufficient to pay the reasonable and necessary monthly expenses of operation, repair and maintenance of the System for such month and - from which disbursements shall be made only for those purposes. Fixed annual charges such as insurance premiums and the cost of major repair and maintenance - expenses may be computed and setup on an annual basis and one -twelfth (1/12) of the amount thereof shay be paid into the Waterworks and Sewer Operation and. Maintenance Fund each month. 7 If bnyany'month foray reason there shall be a failure -to transfer,ai$ pay, • • the required amount into s` d fund, the amount of any deficiency shallblis added to the amount otherwise required to be transferred and paid into said fund in the 7 • next succeeding month. If in any fiscal year a surplus shall be accumulated in th6. Waterworks and Sewer Operation Rd Maintenance Fund over and above the amount • which shall be necessary to defray the reasonable and necessary cost of operation., repair and maintenance of the System during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred and deposited in the Waterwokke and Sewer Revenue -Bond Fund (hereinafter created) PUF.FL£ _-, PU R f C=. RPLE 'i Page. 11. • or to the. Waterwo rks. and Sewer Depreciation ,Fund. (hereinafter created) as the City may designh.te; provided, however, that any: such transfer into the Water- works and Sewer Revenue Bond Fund shall be in addition to all other payments -required to be made into said fund.: Se'ction.11. Waterworks and Sewer Revenue Bond Fund. (a) After making the monthly deposit in the Wateeworks and Sewer. Operation, and Maintenance Fund, the Treasurer shall transfer and pay -from the Waterworks '• - : and Sewer Fund into a special fund, which is hereby creatdd and designated"!'Water= works and Sewer Revenue Bond Fund" the sums in the amounts and at the time. • hereinafter stated in sub -section (b) for the purpose of providing funds for the payment of the principal of and interest on the bonds herein authorized and the Paying Agent's fees, as they mature accordigg to a schedule to be set up and approved by the City Council after the terms of the sale of the bonds and the con • version thereof, if any, aIIve been approved by the City Council, and as a reserve. for contingencies. (b) That there shall be paid by the Treasurer from the Waterworks and Sewer Fund into the Waterworks and'Sewer Revenue Bond Fund, beginning on the first business day of the month immediately following the month in whodih the bonds are delivered, and continuing on the first business day of each month thereafter until all -outstanding bonds of this issue with interest thereon have been paid in full, or provision made for such'paymeat, a sum equal to one -fifth (1/5.) of the next, installment of interest and one -tenth (1/10). of the next installment of princi t pal, :and an amount sufficient to provide for the Paying Agent's fees, on all out- standing bonds; provided, however, that when there shall have been accumulated in said Waterworks and Sewer Revenue Bond, Fund atireserve for contingencies -in the.amount of $300,000, so long as said reserve for contingencies is maintained: in that amount the monthly paymentsmay be reduced to one -sixth (1/6) of the next, •installment of interest and one -twelfth (1/12) of the next installment of principal, and an amount sufficient to provide for the Paying Agent's fees, on all outstanding„ .. /. -(c) If the revenues of the Waterworks -and Sewer System are'insuffjcient to make the required payment on the first business day of the following �month into the Waterworks and Sewer Revenue Bond Fund, then the amount of any: such deficiency in the payment. made shall be added to the amountotherwise required to be paid into the Waterworks and Sewer Revenue Bond Fund on the first business." ;:r day, of the' next month. ' v . (d) If for any reason the Treasurer shall fail at any time to make any'of •,the required payments into the Waterworks and; Sewer Revenue Bond Funcv, .any' `-sums then held as a reserve for contingencies shall be used to the extenffnecessary- in the payment of the, principal of and' interest on the bonds, but such reserve shall, be reimbursed from the Waterworks and Sewer Fund before any of the moneys , • in the .Waterworks and Sewer Fund shall be used for any her purpose except. CUr �z FU PURPLE• Rf`Lc Page..12 • foz making the payments hereinabove required to be made into the Waterworks and ,Sewer Operation and Maintenance, Fund andiuto:the Waterworks and Sewer' Revenue Bond Fund. Said reserve for contingencies shall be used solely as here- in provided. p (e) When the moneys held in -the Waterworksand Sewer Revenue Bond Fund, anciuding the reserve.for contingencies, shall be and remain sufficient to pay the principal of and interest on all the bonds then outstanding,. and the Paying Agent's • fees, the Treasurer shall not be obliged to make any further payments into the said Waterworks and Sewer Revenue. Bond Fund.. (f) All moneys in the Waterworks. and Sewer Revenue Bond Fund shall be-i used solely for the purpose of paying the principal of and interest on the bonds of this issue and the Paying Agent's fees, except as herein specifically provided: If a surplus shall exist in the Waterworks and Sewer Revenue Bond Fund over and above the amount f1equired for mkllcing all principal and interest payments during. 'the succeeding twelve (12) months on all outstanding bonds and the Paying Agent's • fees and over and above the reserve for contingencies, such surplus maybe applied only to the payment of the principal of and interest on any bonds that may be called for redemption prior to maturity or for the construction of extensions, better- ments and improvements to the System. •. (g) It shall be the duty of the Treasurer to withdraw from the Waterworks:_ and Sewer Revenue Bond Fund at least ten (10) days before the maturity date of any bond or interest coupon issued hereunder and to deposit with the Paying Agent an amount equal to the amount of such bond or coupon for the sole purpose of paying. the same, together with the Paying Agent's fee, and no withdrawal of funds from said Waterworks and Sewer Revenue Bond Fund shall„be made for any other. purpose except as otherwise authorized in this ordinance. Such deposit shall be :at the sole risk of the City and shall not operate as, a payment of the bonds. or -:coupons until so applied. (h) The bonds of this issue shall be specifically secured by a pledge of all, the, *evenues required to be placed into the Waterworks and Sewer Revenue Bond Fund. Said pledge in favor of the bonds is herebyjirrevocably made according to the terms of this. ordinance, and the City and its officers and employees, shall • execute, perform and carry out the terms thereof in strict conformity with the provisions of this ordinance: J Section 12. Waterworks and Sewer Depreciation Fund. Af04r making-ihe' • equieed payments:into the Waterworks and Sewer Operation and Maintenance Fund' and the Waterworks and Sewer Revenue Bond Fund, there shall be paid by the Treasurer from the Waterworks and Sewer Fund into a fund, which is hereby, created and designated 'Waterworks and Sewer Depreciation Fund", on the first • business day of the.month immediately following the month in which the bonds are: delivered and continuing on the first business day of each month thereafter while any c ' the. bonds of this issue are outstanding, 3% of the revenues of the Waterworks; and $fewer System which remain after the required payment into the Waterworks •-and Sewer' Operation and Maintenance Fund has been made. The moneys in the .w -9 -n.'.:.+. w .. rr ..r--- --- w .n. .,a .,n. �_ •a.. rUFCLE Nsy », .. t t ^<. �r PUF'PLE. FURf C'c, Page .13 Waterworks and Sewer Depreciation Fund shall be, used solely for the purpose of paying the, cost of replacements madetmecessary by the depreciation of the, Waterworks and Sewer System. If in any fiscal year a surplus shallbe accumulated in the Waterworks and Sewer Depreciation Fund over and above the amount necessary to defray the• cost of the probable/'replacements during the then current fiscal year, and the next ensuing fisckryear, such surplus may be transferred and paid into the Water-- • works and Sewer Revenue Bond Fund; provided, however, that such payments into the Waterworks and Sewer Revenue Bond Fund shall be in addition to all other payments hereinbefore required to be made into the said Waterworks and Sewer Revenue Bond Fund.. Section 13. That any surplus in the Waterworks and Sewer Fund after making full provision for the other funds hereinprovided shall be used as follows: (a) There shall be paid from the Waterworks and Sewer Fund into'a special account which is hereby created'and designated "Waterworks and Sewer Emergency Account", beginning on the first business day of the month immediately' following the, month in which the bonds are delivered and continuing on the first business day of each month thereafter, the' sum of $1, 250.00., which deposits shall con- tinue until the principal amount in the said Emergency Account shall equal $150, 000.00. If in any month for any reason there shall be a failure t9,transfer and pay the required amount into said Emergency Account, the amoufit of the de- ficiency shall be added to the amount otherwise required to be transferred and paid into said Emergency Account in the nexy succeeding month. Moneys in the Emergency Account shall be used to the extant necessary to meet any emergency arising out of or affecting the continuous operation of the System as a revenue producing undertaking for which there are no other funds available .or for the preventing of a default in the' payment of principal and interest or performing any covenant of the City herein contained for which there are no other funds adail- able. However, in the event of any such use, the said Emergency Account 9411 be reimbursed from the Waterworks and Sewer Fund from the first moneys khere- in available therefor. The said Emergency Account shall be maintained in at least the amount of $150, 000.00 while any bonds of this issue are outstanding. Any surplus in excess of the $150,000'1x00 may be:transferred to the Waterworks' .and Sewer Revenue Bond\Fundbut ahy such traksfer shall be in addition to all other payments required?to be made into said Waterworks and Sewer Revenue Bond Fund. (b) After complying fully with the provisions of sub -paragraph (a) of this: Section 13, the remaining revenues may only. be used, at the option of the City, for calling bonds for payment prior to maturity in accordance with the provisions herein set forth for call and payment prior to maturity or for making extensions; 'betterments and improvements to the System: Section 14. That payments from all funds except the Waterworks and Sewer Operation and Maintenance Fund shall be made by check or voucher signed,- by the Treasurer and the ylayor, and payments from the Waterworks and Sewer 4 .-—. c-. 'V... JAR.• J\MST �, FUR Page 14 Operation and Maintenance Fund shall be mdde by check or voucher sig9'ed',by She Treasurer and the Waterworks and Sewer Superintendent. The cheh�ks or vouchers shall be drawn on the •depository with which the moneys in the particular fund s,hallhhave been deposited and each such check or voucher shall' briefly specify . , the purpose of the expenditure. Section 15.. That the City hereby agrees ,that all payments on the bonds and interest shall be made oy through the Paying Agent. All bonds paid or pair. chased either at or before m turity shall be cancelled when such payment or purr • chase, is made, together with all unmatured coupons appertaining thereto, and held' by. the Treasurer and shall not be reissued. All unpaid interest coupons maturing on. or prior to the..date of such payment, or purchase shall continue to be. payable to the respective bearers thereof. Section 16.. That the System shall be operated on alfiscal year basis be- ginning the first day of January and -ending the thirty-first day of December. Section 17. That the bonds authorized hereby•and issued hereunder, shall be callable for payment prior to maturity in accordance with the terms setout in; the bond form. Section 18. That as long as any of the bonds authorized hereby a'be out- standing, the City shall not issue or attempt to issue any bonds claimed to be en& titled to a priority of lien on the revenues of the System over the lien securing the bonds of this issue, including the *herein authorized and, any and all future ex- tensions, betterments and improvements.. Nothi�ig in this &ldinance shall be construed to prevent the issuance by the City of Fayetteville of additional bonds to finance or pay the cost of constructing any -future extensions, betterments, or improvements to the System; provided, however, the City shall not authorize or issue any such additional bonds ranking on a parity with the outstanding bonds of this issue, unless and until there shall, have been procured and filed with the Trustee a statement by an independent certified public accountant not in the regular employ of the City reciting the opinion- based upon necessary investigation that net revenues (in this paragraph defined as the qoss revenues of the System less the required depreciation tables and the operatimn and maintenance expenses as ,'determined by the independent certified' f -public accountant) in any two.of the three fiscal years immediately preceding'the fiscal year in'ehich it is proposed to tissue such additional bonds shall equal 150% of the maximum amount that will become due in any year thereafter for principal; 'interest and service charges on the bonds then outstanding and the bonds then proposed to be issued. • Section 19. That it is covenanted and agreed'by the City with the holder .or holdees� of the bonds, .or any of them. that it will faithfully and punctually per.- -form all duties with reference to the System required by the Constitution and laws. •of the State of Arkansas, including making and collecting of reasonable and sufficient. rates lawfully established for services .rendered by the System, segregating the 'revenues of the System ad¢ applying them to the respective funds herein created; r.—.n...^..i: v�•r f'1:.. }. �.r:.iYY�'„rM1's.te),.'�... r� .N�r•��+.- • � ' °UFc� i1RFL_'. '• 'l c ; PUFPLF • Page. 15' Section 20. That the City will keep proper books of accounts and records, (sepirate from all other records and.accounts) iswhich complete and correct, entries shall be made of all transactions relating to the operation of the System, 'and such books shall be available for inspection by the holder of any of the bonds, at reasonable times and under reasonable circumstances, The City agrees to have these records audited by an independent certified public accountant at least.," once each year, and a copy of the audit shall be delivered to the Trustee and to the original purchaser of the bonds and made. available to interested bondholders In the event the City fails or refuses to make, the audit, the Trustee, or any holder-. of the bonds may have the audit made, and the cost thereof shall be charged against the Waterworks and Sewer Operation. and Maintenance Fund. Section 21. That the City covenants and agrees that it will maintai the System in good condition and operate the same in an efficient manner and at reasonable cost. While any Revenue Bonds are outstanding, the City agrees that it will insure and at all times keep insured, in the amount of the actual value, thereof, in a responsible insurance company or companies authorized and gtialified under the laws of the State of Arkansas to assume the risk thereof, all jroperties of the System against loss or damage thereto from fire, lightning, torn1do, winds, riot, strike, civil commotion, malicious damage, explosion, and against loss or damage from any other causes customarily insured against by'private companies engaged in a similar type of business. The insiiia≥ce policies are to be taken with a'bmpanies approved by. the Trustee, are to carry a clause making them pay- able to the Trustee as its interest may appear, and are either•to be placed'in the custody of the Trustee or satisfactory evidence of said insurance shall. be, filed with the Trustee. In th event of loss, the proceeds of such insurance shall be applied solely toward the reconstruction. replacement or repair of the System. and in such event the City will, with reasonable promptness, cause to be com- menced and completed the reconstruction, replacement and repair work. If such proceeds are more than sufficient for such pnnposes, the balance remaining shall be deposited to the credit of the Waterworks and Sewer Fund and if such proceeds shall be insufficient for such pnnposes the deficiency shall be supplied, first, from moneys :in the Waterworks and Sewer Depreciation Fund, and second, • from moneys in th Waterworks and Sewer Operation and Maintenance Find, an• d third, from avaiiable moneys in the Waterworks and Sewer Fund, and fourth, from moneys in the Waterworks and Sewer Emergency Account. Nothing herein shalh.be construed as requiring the City to expend any funds for operation and maintenance of the System or for premiums on its insurance which. are derived. from sources other .than the operation of the System, but nothing herein shall. be construed as preventing the City from doing so. .• jill Section 22. That so long as any of the bo?•�ds are outstanding, the. City '• covenants and agrees that it will not mortgage. phdge. or otherwise encumber - the System or any part thereof, including any an4 all betterments and improvements: thereto or any revenues therefrom, except as he yin.pr.ovided, and will of sell, lease, or otherwise dispose of any substantial pottion of the same.. Tot a end •.+, . that a record of the pledge of the revenues n4 of the agreement not to.mortgage the System may be, preserved, the City Clerk is hereby authorized and; directed 1y. . 1 -., •` PURPLE. Page 16' .to file with the Recorder of Washington. County; Arkansas a copy of this ordinance duly' certified, with instructions that the same be recorded in the. office of said County Recorder as in the case of deeds and' mortgages', Section 23. That the owner or owners of all improved property lying with- in the area that will be served by the Sewer System, after the proposed improve- ments and extensions have been made, are hereby directed and required to cdh- • nect all toilet and waste water facilities of such improved property with said Sewer System as soon as the service is.available; and the owners of property that is improved after the completion of the improvements and extensions, to the said Sewer System shall immediately connect the toilet and waste water facilities of such property with the Sewer System. Section 24. That the City shall send or cause to be sent a written notice to any owner of improved property that can be served by the Sewer System but is not connected to make .such connection within thirty (30) days from the date of said notice. If, after said notice, the property owner fails to rrIake such connect- ion the City agrees to institute appropriate action in a court'of competent juris- diction to compel such connection. Furthermore, any property owner who fh11ls or refuses to connect his improved property with the Sewer System after being notified to do so shall be 'guilty of a misdemeanor and upon conviction shall be fined in any sum not less than Two Dollars ($2.00) and not more than Ten Dollars ($10.00); and each day's failure or refusal after the expiration of the time fixed in the notice to make the connection shall be a separate offense; provided, however, that the provisions of this sentence shall be• effective to make such failure a misdemeanor only in the event the City Health Officer, or other duly designated individual or board, has found and determined that such failure on the part of any particulars✓ property owner constitutes a hazard to the public health and safety of the inhabit= an53 of the City. • Section -25. That there shall be a statutory mortgage lien upon the Water- works, which shall exist in favor of the holders of the bonds, and each of them.. and in favor of the holders of the coupons attached to the bonds, and the Waterworks shall remain subject to such statutory mortgage lien until payment in full of the in- terest on and principal of the bonds, provided, however, that such statutory mort- gage lien shall be interpreted according to the decision of the Supreme Court of the State of Arkansas in City of Harridon v. Braswell, supra. Section 26. (a) That the City covenants and agrees that the holders of the Waterworks and Sewer Revenue Bonds shall have the protection of the pro- visions of Section 13 of Act 132 of the Acts of Arkansas of 1933 (Ark. Stats. 19 4113), and that the City will diligently proceed to enforce the lien of unpaid sewer' charges against the premises served by the System and to collect the amount due together with the penalty and expenses authorized by said Act 132. Andif the City shall fail to proceed within thirty (30) days after written requedt shall have been filed by the Trustee, the Trustee may, and upon the written request of the holders of not less than ten per cent.(10%) in principal amount of toe Waterworks and Sewer. Revenue Bonds then outstanding. shall, proceed to enforce aid lien in accordance with and pursuant to the authorization of.said Act 132. Gti.�+�u�..vvQ....%{.r�J'F�Y .iY.rl�+.rl..J-wr�.w. rv...+�fwnn{- _. .. • • •.•.V• :\� .• .•1... PURPLE ,..—...�.�.—..�.�..r�AN..-✓1�+..-V�.h.r�%J�Iti.'+..K..�.wM�..LV FURFLc.. Page 17 (b) That if there be any default in the payment of the principal of or: in- terest on any. Waterworks and Sewer Revenue Bond, or -if the City defaults in any Waterworks and Sewer Revenue Bond Fund requirement or in the performance of any of the other covenants contained and set forth in this ordinance, the Trustee may, and upon the written request of the holders of not less than ten per -cent (10%) in principal amount of Waterworks and Sewer Revenue Bonds then outstand • ing shall, by proper suit compel the performance of -the duties of the officials of. the City as set forth in'Act 131 of the Acts of Arkansas of 1933, as ae'ended, Act 132 of the Acts of Arkansas of 1933:and Act 297 of the Acts of Arkansas of 1937,. as amended. And, in the case of a default in the payment of the principal of and interest on any of the outstanding Waterwos and Sewer Revenue Bonds, or if the City fails to complete akiy other oblig6 ion which it herein assumes., and such default shall continue for thirty (30) days thereafter, the Trustee may. and upon the written request of holders of not less than ten per cent (10%) in principal • amoant of the Waterworks and Sewer Revenue Bonds then outstanding shall, apjdy in a iiproper action to a court of competent jurisdiction for the appointment of a receiver to administer the System on behalf of the City and the bondholders with power to charge and collect (or by mandatory injunction or otherwise to cause, to be chargedfand collected) rates suffp1ent to provide for the payment of the expenses of operation, r4pair and maintenance and to pay any bonds and interest outstanding and to apply the revenue in conformity with the provisions of said Act 131 bvf 1933, as amended, Act 132 of 1933, and Act 297 of 1937, as amended, and with this ordinance. When all defaults in principal and interest payments have been. cured, the custody and operation of the System shall revert to the City. (c) No holder of any of the outstanding Waterworks and Sewer Revenue Bonds shall have any right to institute any suit, action, mandamus or other proceeding. in equity or in law for the protection or enforcement of any right under this ord- inance or under said Act 131 of 1933, as amended, Act 132 of 1933, and Act 297 of 193g}'' as amended, unless such holder previously shall have given to the Trust- ee written notice of the default on account of which such suit, action or proceed- • ing is to be taken, and unless the holders of not less'than ten per cent (10%) in principal amount of the Waterworks and Sewer Revenue Bonds then outstanding shall have made written request of the Trustee after the right to exercise such powers or right of action, as the -case may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the • powers herein granted or granted by said Act 131 of 1933, as amended, Act 132 of 1933, and Act 297 of 1937, as amended, or by the laws of the State of Arkansas-,. or to institute such action, suit or }proceedin in its name, and unless, also, • there shall have been offered to the Trustee reasonable security and indemnity against the costs, expenaes and liabilities to .e incurred therein or thereby and the Trustee shall have refused or neglected to comply with such request within a reasonable time, and such notification, request and offer of indemnity are heree• by declared in every such case, at the option of the Trustee, to be conditibns• ,precedent to the execution of the powers and trusts of this ordinance or to any - other remedy hereunder. It is understood and intended that no one or more holders; ltipci.E • H:': ; PUP • I t Page. 18 of the bonds hereby secured shall have any right in .ay manner whatever y.his or their action to affect, disturb or prejudice -the security of ,this ordinance,or to enforce any right hereunder except in the manner. herein provided, that'all proceedings at law or in equity shall be instituted,, had and maintained in the manner. herein provided and for the benefit of all holders of the outstanding bonds and .coupons, and that any individual rights of action or other right given to one pr more of such holders by law are restricted by this ordinance to the rights a4id- -'remedies herein provided. (a) That all rights of action under this ordinance or under any of the bonds, .secured hereby, enforcible by the Trustee, may be enforced by it without the possession of any of the bonds or coupons appertaining thereto, and any such suit, action or proceeding instituted by the Trustee shall be brought in its name for the benefit of all the holders osuch bonds and coupons, subject to the provisions of .this ordinance. °u• (e) That no remedy conferred upon or reserved to the Trustee or to the holders of the bonds is intendedtto be exclusive of any other remedy or remedies, and each and eveyy such remedy shall, be. cumulative and shall be in, addition, to every other remedy given hereunder. :(f) That no delay or omission of the Trustee or of any holders of the bonds to exercise any right or ppwer accrued upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy given by this ordinance to -'the Trustee and to the.holders•of the bonds, respectively, may be exercised from 'time. to time and aoften as may be deemed expedient.. (g) That the Trustee may, and upon. the written request of the •holders of not less than ten per cent (10%) in principal amount of Waterworks and Sewer • Revenue Bonds then outstanding shall, waive any default which shall have been., remedied before the entry of final judgment or decree in any suit, action or pro-' ceeding instituted under the provisions. of this ordinance or before the completion of the enfotcement'of any other remedy, .but no such waiver shall extend to or ,affect, any bther existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. - Section 27. That the Trustee shall onl a responsible for the exercise • of good faith and reasonable prudence in the exeeution of its trust. The recitals' in this ordinance and in the, face of the bonds are the recitals of the City, and not of the Trustee. The Trustee shall not be required to take any action as Trustee, unless it shall have\been requested to dw'\so in writing by the holders of not less than tenyper cent (10%) in principal amoguit of the Waterworks and Sewer Revenue'• Bonds then outstanding and shall have been offered reasonable security and in- demnity againstthe'costs, expenses and liabilities to be incurred therein or thereby: The Trustee may resign at any by ten (10) days' notice in writing to the City' and the majority in value of the holders of the outstanding Waterworks and Sewer. •Revenue Bonds at anytime, with Silrwithout cause, may remove the Trustee. R... -.....—.+•i_:r•TY•s+..+r t.w— - —�.i•�)j�1•LJ{-.k.•.�CK.f'Vr•s.L •+ti?e�'Arir -.—a.i.... - v+ .r. C'UFCL.E . PURf°l.. Y` PURPLE • - y Page 19' t:. • • In. the:eventof a vacancy in the office of Trustee, either by resignation or by removal, the majority. in.value of the holders°of the outstanding Waterworks and Sewer Revenue Bonds. may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. If •the majority in value of the. holders of the outstanding Waterworks and Sewer Revenue Bonds shall fail to fill a vacancy within thirty (30) days after the same. shall occur, then the City shall forthwith designate a new Trustee by a written instrument\filed in the office of the City Clerk. The original Trustee and any successor Trustee shall file -awritten acceptance.and agreement to execute the: trust impos%d upon it or them by this ordinance, but only upon the terms and con did�ns set forth in this ordinance and subject to the provisions of this ordinance, to all of which the respective holders of the bonds agree. Such written acceptance' shall be filed with the City Clerk and a copy thereof shall be placed in the bond transcript. Any successor trustee -shall have all the powers herein granted to the original Trustee. Section 28. That when the bonds herein authorized to be issued have been executed by the Mayor and City Clerk and the seal of the City impressed, as tiere- in provided, they shall be delivered to the Trustee, which shall authenticate them and deliver them to the purchaser upon delivery to the Trustee of the outstanding. bondspf, the January 1, 1946 issue, the December 1, 1948 issue and the December - .1, 1992 issue with all unmatured coupons attached thereto, or the making of an escrow deposit with the Trustee sufficient to pay the principal and interest and all other charges necessary to fully pay and discharge said outstanding bonds with. interest at the next interest paying date and said outstanding bonds are duly called for payment prior to maturity at their said next interest paying date, and the pay- ment 6fthe balance of the purchase price and accrued interest from June 1, 1958; A sum sufficient to pay the first six (6) months' interest shall be remitted• to the Treasurer for deposit in the Waterworks and Sew,r .Revenue Bond Fund and the balance shall be remitted to the Treasurer and deposited in trust with a bank that is a member of the Federal Deposit Insurance Corporation, said deposit. to be secured by bonds or other direct or fully guaranteed obligations of the United .,•. - States of America, or by a corporate surety bond satisfactory to the Trustee, and. 1/ said depostt shall be disbursed solely in payment of the cost 9Qf' constructing the extensions, betterments .and improvements to the System, inEluding engineering, legal and other necessary expenses incidental thereto, but only on warrants, checks. or voiichers signed by the Treasurer and one other person designated by the City brieflyspecifying the nature of the disbursement or expenditure, and accompanied by a certificate signed by the engineer for such construction that an obligation in a. stated amount has been incurred and to whom such obligation is owed, except that no such certificate shall be required before payment of engineering fees, legal fees and the expenses of issuing the bonds. When the construction of the herein authorized extensions, betterments and improvements to the System has been completed, this fact shall be evidenced by the. filing with the Trustee and with the depository in which the construction. fund is deposited of a certificate" signed by the City .Treasurer and by the engineer in charge of the construction. Upon receipt of the, above described certificate, the depository with which the construction fund is deposited. shall pay or transfer -any remaining balance pursuant to the written;direction or check s ned by the , .FURf:. LE Pa§e,'20 1• the construction fund, and any such remaining balance. may be used for the • -calling of the bonds of this issue for payment prior to maturity or may be trans• = ferred to the Waterworks and Sewer Revenue Bond Fund, •Section 29. (a) That moneys held for the: credit of the Construction Fund • shall,, as nearly as may be practicable, be continuously invested and reinvested 'by the City in direct obligationsof, or obligations, the principal of and interest - Ott which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than. six (6) months after the d4ie of such in- vestment. (b) Moneys held for the. credit of, the reserve for contingencies in the • Waterworks and Sewer Revenue Bond Fund and moneys in the Waterworks. and :Sewer Emergency Account shall be continuously invested and reinvested by the City in direct obligations of, or obligations, the principal of ancfinnterest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than twelve (12j1years after the date of such invest-- ment. (c) Moneys held for the credit of any other Fund may, at the option of the City, b,qq' invested and reinvested�Ilby the City in direct obligatigns of, or obligations, W the, principal of and interest on hich, are unconditionally guaranteed by, the. United States Government, which sh' mature, or which shall be subject to re- •• demptionI by the holder thereof, at tee option of such holder, not later than the date. or Elates when the moneys held for the credit of the particular fund will be required for the purpose intended. (d) Obligations so purchased as an investment of moneys in any such fund • shall' be placed in the custody of the City Treasurer and shall be deemed at all times to be a part of such fund, and the interest accruing thereon and any profit realized from such investment shall be, credited to such fund, and any loss re - suiting from such investment shall be charged to such fund. Section 30. .That in the event the office of Mayor, City Clerk, City-.treas.- urer or City Council shall be abolished, or any tJo or more of such offices shall` be merged or consolidated, or in the event the duties of a particular office shall be transferred to anotl er office or officer, or in the event of a vacancy in any such office by reason of death, resignation, removal. from officerbr otherwise, or in the event any such officer shall become incapable of performing the -duties' of his office by reason of sickness,/absence from the City or otherwise, all powers -conferred and all obligations and duties imposed upon such office or officer shall be performed by the office or officer succeeding to the principal functions thereof$ or by .the office or officer upon whom such powers, obligations and duties vihall .be imposed by law. Section 31. That the, Mayor is hereby directed to publish for one insertion in the Northwest Arkansas Times, which is hereby found and declared to be a newspaper published in Fayetteville. Arkansas and of general circulation therein, this ordinance, to which shall be attached a notice signed by him in substantially the following form: Ij •i FURFLE Page'21' NOTICE V.IV.. IV PURPLE Notice is hereby; given that the City Council of the City of Fayetteville, Arkansas has .adopted the ord- inance hereinafter set out; that the. City contimplates the issuance of the Waterworks and Sewer Refunding and Construction Revenue Bonds •described in the ord- inance; that any person interested may appear before the Council on the 1st day of , 1958 at 7:30 o'clock p.m. at the usual meeting pfstce. of the Council held in • City Administration Building and present p�otests. At such hearing all, objections and suggestions will he heard, and the Council will take such action as is deemed- proper, in the.premises. Dated this.2lst day of April,' 1958 Mayor_ -!-u�..-w..-.w-•.Y±c...�,.1,�-,_.wul..•r--_. •_.w.-.-...-•..-..t�/,wgy•,�...-n-r l�rrl -.•-,• .♦� •. :.•_..-.._ . •.r -z. 'n ,. ... nuei_c. _ ... FURrrL . Page :2Z.'• • Section 32. That this ordinance shall not crea%'any right of any kind and no right of any kind shall arise hereunder pursuat{t to it until the bonds authorized by this ordinance shall be issued and delivered. Section 33. That the provisions of this ordinance.are hereby declared to be separable and if any provision shall for any'reasonbe held illegal or invalid, ' it shall not affect the validity of the remainder of the ordinance. 4 Section 34. That all ordinances and resolutions and parts thereof in -con - • /bfsuch conflict. fl ct herewith are hereby repealed to the extend Section 35. That it is hereby ascertained and declared. that the Waterwokks and Sewer System serving the City of Fayetteville. Arkansas is wholly in&dequate •;• =1• for the needs of the City and the inhabitants thereof, thus endangering the life, health and safety of the inhabitants and their property, and that the extensions, betterments and improvements required to alleviate said hazards Can be obtained only by the issuance of the revenue bonds authorized hereby. It is, therefore,. • declared that an emergency exists and this ordinance being necessary for the immediate preservation of the public peace, health and safety shall take effect • and be in force. from and after its passage. Passed: the 18th day of April, 1958. APPROVED: • Ma or ' ATTEST: •n . ♦ 'City Clerk .. ♦ 1