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HomeMy WebLinkAboutOrdinance 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