HomeMy WebLinkAboutOrdinance 1226 BOOK 533 219
ORDINANCE N0 .
FcrO 2 Fi7 ,
AN ORDINANCE AUTHORIZING THE ISSUANCE OF BONDS
FOR THE PURPOSE OF REFUNDING THE OUTSTANDI'N! ,"rCO 'J;r�
BONDS OF THE CITYIS HOSPITAL AND FIRE FIGH=d ,_ � , ALL
APPARATUS BONDS DATED SEPTEMBER 1 , 1947; DEVELOPI }
AND IMPROVING THE !MUNICIPAL FLYING FIELL; ACQUIRING
A SITE FOR, CONSTRUCTING AND EaUIPPING A CITY
LIBRARY ; LEVYING A TAX SUFFICIENT TO PAY THE PRINCI-
PAL AND INTEREST ON THE BONDS ; PRESCRIBING OTHER
MATTERS RELATING THERETO ; AND DECLARING AN EMERGENCY .
WHEREAS the City of Fayetteville is a city of the
first class ; and
I:'HEREAS by Ordinance No . 1217 there was submitted to
the electors of the City the following questions :
The issuance of $250 ,000 of bonds for the purpose
1 � of developing and improving the municipal dying
field;
The issuance of $225, 000 of bonds for the purpose
of acquiring the site, constructing and equipping
a city library ;
The issuance of refunding bonds in the amount of
$75 , 000 for the purpose of refunding the outstand-
Ing bonds of the City ' s Hospital and Fire Fighting
Apparatus Bonds dated September 1 , 1947 , which
refunding bonds will be issued only in the event of
the approval at the election of bonds for either or
both of the above purposes ; and
ITHEREAS pursuant to the appropriate provision in said
Ordinance 1217 and in the ballot the bonds have been combined into
a single issue of $550 , 000 and said bonds were offered for sale,
after due advertisement as required by law, on the a / $day
of , 1959 and at said sale the best bid was
par and accrued interest for bonds with a net interest cost of 3 . 735
per cent per annum , which bid was submitted by Dabbs Sullivan Company
and 2 . L . Villareal & Company of Little Rock, Arkansas ; and
I-IMEAS the purchasers have prepared a schedule of said
$550 , 000 in bonds with the bonds maturing in the years 1963 to 1980 ,
inclusive , bearing interest at the rate of Q15,por annum; the bonds
maturing in 1981 bearing interest at the rate of 3 3/4% per annum;
the bonds maturing in 1982 and 1983 bearing interest at the rate of
34% per annum and the bonds maturing in 1984 and 1985 bearing interest
at the rate of 2% per annum, and upon examination the Council has
determined that with a premium to the City of \ $825 . 55' the net interest
cost of the schedule so prepared is 3 . 735 per cent per annum; and
Page 2
l•.'HMEAS pursuant to the authorization in the Notice
of Sale the purchaser has elected to convert the $550 , 000 of
Vt 34;x, 3 3/4% and 4aw bonds to an issue of $570, 000 of 2%4* 3NO
3 3/4% and 40 bonds , hereinafter described in detail , and the
Council has determined that said conversion is proper and within
the provisions of the Notice of Sale and that by virtue of which
the City will pay no more and receive no loco than it would pay and
receive if the bonds were not converted ;
rO'.•' , THMWORE, DE IT OPXAIDTM by the City Council of
the City of rrayettoville, Ar'cana=,
Section 1 . That the above described refunding and improve-
r
ments approved by the electors at said special eleotion be made and
constructed .
Section 2 . That under the authority of the Constitution
and laws of the State of Arkanaac, including particularly Amendment
No . 13 to tho Constitution of tho State of Artcansas and Act 103
of the Acts of the General Asaembly or the State of Arkansas for
the year 1945s the City of 'eRettovillo General Obligation Mfunding
and Improvement Bonds are hereby authorized and ordered icsued in
the total principal amount of $570, 000 , thcproeceds of the vale
of Mitch are necessary to provide sufficient funds for rofrnding
the City 's outstanding boada dated Scpt=ber 1 , 1;47 , developing
and improving the municipal flyirAG field, onLI acculaing a site for,
construoting and earinping a city library, inclviC9.rr?; foieoessary
expenses incidental thereto and to the iscuanceor the bonds , and
including an amount sufficient to pay interest on the bonds until
twc collections are available . Tho bonds shall be numbered conseou-
tively from 1 to 578, inclusive , and all ponds shall be in the
denomination of $1 , 000 each . The bonds shall bo dated November 1 ,
1959 . Bonds Nims . 1 to 166, inclusive , which mature in the years
FOOK 533 "' 1
Page 3
1963 to 1970, inclusive, shall bear interest at the rate of 30
Per annus; Bonds Was , 167 to 229, inclusive, which mature in the
Years 1971 to 1973s inclusive, shall bear interest at the rate
of 3 3/4% per annum; Bonds !lose 230 to 376, :inelusive, which
mature in the years 1974 to 197"y , inclusive, shall bean interest
at the rate of 4% per annum; Bonds los . 377 to 5020 inclusive, which
mature in the years 1980 to 1983, inclusive , shall bear interest
at the rate of 30 per annUM; and Bonds Nos . 503 to 578, inclusive,
which mature in the years 1984 and 1985 shall bear interest at
the rate of 2% per annum . Interest shall be parable seal-annually
on January 1 and July 1 of each year commencing July 1 , 1960 .
The principal and interest shall be payable in lawful money of the
United states of America upon presentation of the bond or proper
coupon at the office of the First National Bank, Bort Smith,
Arkansas . The bonds shall mature on January 1 of each year as
follows , but are callable as hereinafter set forth :
YEAR BOND NOS . AMOUNT
19� 1 - 20 $20 ,000
1966+51 k1 - 6 ;p p
19676 632 832 21 , 000
1968 104 - ill! 21 ,000
1969 123 - 145 210000
1971 166 - 166 21 , 000
7 81 ,000
1972 188 - 80 21 , 000
197 209 229 21 , 000
_
7 230 - 251 220000
19 6 22975 75- 298 24 ;000
000
1 80 99 323 25A00
1978 35 376 27349 ,000
1981 4066 _ 44035 29, 000
1982 469 s 450628 30, 000
3 33, 000
1984 503 - 540 3348;000
1985 t41 - 57b AM
BUUK 533
Page 4
Section 3 . That the bonds 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 coupons attached to each of
the bonds may have the facsimile signature of the Mayor of the City
lithographed or printed thereon, which signature shall have the
same force and effect as if he had personally signed cash of said
coupons .
Station 4 . That the bonds and coupons shall be in sub-
stantially the following forms
BOOK 533 223
Page 5
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COMM OF VASHINGTON
C1TY OF PAYE'1 MLLE
_)6 GMMAL OBLIGATION RE MMING AND ZlMOVEMENT BOND
N0 , $1 ,000
? WN T ALL MEN BY THESE PRVIENTS t
That the City of Fayetteville in the County of "ashington
and State of Arkansas acknowledges itself to owe and for value
received promises to pay to bearer the sura of
ONE THOUSAND DOLLARS
in Zawful money of the United States of America on the first day
of January, 19 and to pay interest hereon at the rate of
(„_ ")) per annum from date, seml-wally
on Jamaary I and July 1 of each year, commencing July Is 1960, upon
presentation and surrender of the annexed coupons as they severally
become date.
Both principal and interest of this bond are hereby made
payable at the First National Bank, Fort Smith, Arkansas .
This is one of a series of five hundred seventy-eight
( 578) bonds , aggregating Five ffundred Seventy Plight Thousand Dollars
( $578,000) dated November 1 , 1959, and rntmbered from one ( 1 ) to
five hundred seventy-eight ( 578) , inclusive, all of like tenor
and effect except as to number, rate of interest and maturity, and
the bonds are issued for the purpose of refunding the City ' s out-
standing bonds dated September 1 , 1947, developing and improving
the municipal flying field, and acquiring a site Por, constructing
and equipping a city library,
This bond and the series of which it forms a part are issued
pursuant to and in full compliance with the Constitution and laws of
the State of Arkansas , particularly Amendment No, 13 to the Constitu-
tion of the State of Arkansas , Act 103 of the Acts of the General
Assembly of the State of Arkansas for 1945 and pursuant to
ordinances of the City Council of said City and an election duly
souk 533 224
Page 6
held at which the majority of the legal voters of said City voting
on the question voted in favor of the issuance of the bonds , This
bond and the series of which it forms a part are general obligations
of the City of Fayetteville, Arkansas, payable from the proceeds of
a three and one-half ( 34) mills special tax levied by the City
Council under the authorl r sMendmsnt No . 13 to the Constitution
of the State of Arkiuwas , and the City of Fayetteville hereby
pledges its full faith , credit and taxing power, including the
said three and one-half {3+ mill special tax, for the payment of
this bond and the series of which it forms a part ,
The City has agreed that all revenues derived from said
tax in excess of the amount necessary to insure the prompt payment
of the principal of and interest on the bonds as they mature, and
the haying Agent ' s fees , must be used to call the bonds of this
Issue for payment prior to maturity at the times and in the manner
provided herein for call and payment prior to maturity.
The bonds of this issue will be callable for payment
prior to maturity in inverse numerical order at par and accrued
interest from surplus tax collections on any interest paying Hate .
They will be callable in inverse numerical order at par and accured
Interest with funds from any source on any interest paying date on
or after January 1 , 1965. Notice of the call for redemption shall
be published once a week for two (2) weeks in a newspaper published
in the City of Little Rock, Arkansas, and having a general circula-
tion 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 redemption each bond so called shall cease to bear
Interest , provided funds for its payment are on deposit with the
Paying Agent at that time .
EItO1
IT I3 HEREBY CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required to exist, happen and be per=
formed, under the Constitution and laws of the State of Arkansas,
particularly Amendment No . 13 to the Constitution of the State of
Arkansas and Act 103 of the Acts of the General Assembly of the
State of Arkansas for 1945, precedent to and in the issuance of
this bond have existed, have happened and have been performed in
flue time, form and manner as required by law; that the indebtedness
represented by this bond and the issue of which it forms a part
does not exceed any constitutional or statutory limitation, and
that a tax sufficient to pay the bonds and interest thereon has
been duly levied in accordance with said Amendment No. 13 to the
Constitution of the State of Arkansas and made payable annually
until all of the bonds and interest thereon have been fully paid
and discharged .
This bond shall not be valid until it shall have been
authenticated by the certificate hereon duly signed by The Merchants
National Bank, !port with , Arkansas .
M ;TrnMS F?HEREOP, the City of Fayetteville, Arkansas
has executed this bond by the hands of its Mayor and City Clerk
and attested it with its corporate seal and has caused the coupons
hereto attached to be authenticated by the facsimile signature of
Its Mayor, all as of the first day of November, 1959 .
CITY CR FAYSRTZV=nt ARKANSAS
Mayor
ATTM t
MY- UrRr=
(R?AL)
BOOK 533 ;218
Pace a
(Form of Coupon)
January
On the first day of July , 29__,_, the city of
Fayetteville, "Uhington County, Arkansas, unless the bond to
which this coupon is attached is paid prior thereto , hereby
Promises to pay to bearer
DOLLARS
In lawful money of the United States of America at the office of
First National Hank, Bort :with, Arkansas, being six (6) months #
Interest then due on its General Obligation Refunding and Mnprove-
ment Bond, dated November 1 , 1959, and numbered
C= OF FAYERTE7jTuT4E, ARKANSAS
B9'
r
(the first coupon will be for eight (8) month3 ' interest )
On each bond shall appear the following .
CMZFZOATE
This is to certify that this is one of the five hundred
seventy eight ( 578 ) bonds of the Issue mentioned and described
within ,
THE MERCHANTS NATIONAL BANK
MOAT SM=, ARKANSAS
B9
Fort Smith , Arkansas
l
souk 533 227
Page 9
Section 5 . That to order to pay the bonds as they
mature , with interest thereon, there is hereby levied upon all
taxable real and personal property within the City of Fayetteville,
Arkansas , a continuing special tax of three and one-half ( 3} ) mills
on each dollar of assessed valuation to be collected with ' the taxes
collected in the year 1960 and continuing through the year 1985
and as long thereafter as may be necessary to pay the principal of
and interest on the bonds authorized by this ordinance, being a
sum sufficient to pay the principal of and interest on the bonds as
they mature, with more than Five per cent ( 5%) added f= unforeseen
contingencies ; and the City Clerk is directed to transmit a copy of
this ordinance to the County Clerk of Washington County, Arkansas to
the end that said tax may be extended on the tax books of the County
and collected annually along with the other taxes until the bonds
and interest thereon are paid in full . The City covenants and
agrees that all of the revenues from the said three and one-half
OD mill tax shall be placed in a separate fund which is hereby
created and designated "1959 General obligation Refunding and
Improvement Bond Fund" , and shall be used solely for the payment of
the principal of and interest on the bonds of this issue , and the
Paying Agent ' s fees , as set forth in this ordinance . The amount
of said deposit in excess of that insured by the Federal Deposit
Insurance Corporation must be continuously secured by bonds or
other direct or fully guaranteed obligations of the United States
of America . The City covenants that all revenues derived from said
special tax in excess of the amount necessary to insure the prompt
payment of the principal of and interest on the bonds as they mature,
and the Paying Agent ' s fees , must be used to call the bonds of this
Issue for payment prior to maturity at the times and in the manner
provided herein for call and payment prior to maturity .
Section 6 . That for the prompt payment of the bonds of
this issue with interest , the City of Fayetteville , Arkansas hereby
pledgee its full faith , credit and taxing power, including the
bDuK cJc iy
Page 10
tax levied in Section 5 .
Section 7 . That in order to pay the principal of and
interest on said bonds as they mature, there are hereby appropriated
out of the proceeds of the tax herein levied, and if such proceeds
be not sufficient , then out of the general revenues of the City,
the foilomaing sums
INTEREST
YEAR BOND NOS . PRINCIPAL JANUARY 1 JULY 1 TOTAL
1960 $ $ 13, 321 . 66 $13 , 321 . 66
1961 9 , 991 . 25 9 , 991 . 25 19 , 982 . 50
1962 90991 . 25 9 , 991 . 25 19, 982 . 50
1963 1 - 20 200000 9 , 816 . 25 9 , 816 . 25 39, 632 . 50
1964 21 - 4o 200000 9 , 466 . 25 9 , 466 . 25 38. 932 . 50
1965 41 - 61 210000 9 , 107 . 50 9 , 107 . 50 390215 . 00
1965 62 - 82 21 , 000 8 , 74o . o0 8 , 740 . 00 38, 480 . 00
1967 83 - 103 210000 8, 372 . 50 8 , 372 . 50 37 , ¢45. 00
1951 104 - 124 21 , 000 8 ,005. 00 8 ,005 . 00 37 , 010 , 00
1959 125 - 145 212000 7 , 637 . 50 7 , 637 . 50 36 , 5 .00
1970 146 - 166 210000 ip
, 27o . 0a 7 , 270 . 00 35, 5 +0 . 00
1971 167 - 187 210000 889 . 37 6 , 889 . 38 34 , 778 . 75
1972 188 - 208 21 , 000 , 495 . ? 6 , 495 . 63 33, 991 . 25
197 209 - 229 210000 6, 101 . 6 , 101 . 88 33, 203 . 75
197 230 - 251 223, 000 55 , 685 .00 5 , 685 . 00 33,70 . 00
1976 275 - 298 24, 000 4 ; 765 . 0 , 765 . 00 33, 530 .00
1978 324 -M7 29� 349 26, 00 3 , 765.00 3 , 765 . 0 33, 553500 . oa
19779 350 - 376 27 , 000 3 , 235. 00 32235 . 00 33 , 470 . 00
10(10 377 - 405 29, 000 2, 711 . 25 20711 . 25 340422 . 50
1981 406 - 435 30 , 000 20195 .00 20195 . 00 34, 390 .00
1982 436 - 468 3 , 000 11643 . 75 1 , 643 . 75 36, 287 . 50
1983 469 - 502 34 , 000 1 ,057 . 50 1 , 057 . 50 36, 115 . 00
1984 503 - 540 38,000 570 .00 570 . 00 39 , 140 . 00
1985 541 - 578 38 , 000 380 .00 38, 380 .00
Section 8 . That the bonds of this issue shall be callable
for payment prior to maturity in accordance with the terms set out
in the face of the bond foam in Section 4 of this ordinance . .
Section 9 . That the Treasurer of the City of Fayetteville ,
Arkansas is hereby ordered and directed to place on deposit with
Pirat National Bank, Fort Smith , Arkansas , the Paying Agent , at
least five ( 5) days before the maturity Hate of any bond or interest
coupon issued hereunder, an amount from the funds herein appropriated
equal to the amount of such bonds or coupons , for the sole purpose
of paying the same , together with the customary Paying Agent ' s fee .
SOUK '5J3 229
Page 11
Such deposit shall be at the risk of the City and shall not
operate as a payment of the bonds or coupons until so applied .
This instruction to the Treasurer is irrevocable and may be enforced
by mandamus .
Section 10 . That Pirst National Bank, Fort Smith , Arkansas ,
is designated as Paying Agent . The holders of a majority in value
of the outstanding bonds at any time may by an instrument duly
executed and recorded in the office of the City Clerk aproint a
new Paying Agent , who shall have all of the powers of the Paying
Agent originally named , and the Paying Agent herein named may resign
at any time upon ten ( 10) days ' notice in writing mailed to the City
Clerk . In the event of a vacancy in the office of Paying Agent and
the failure of the holders of a majority in value of the outstanding
bonds to tako the necessary action to appoint a new Paying Agent
within thirty ( 30 ) days after such vacancy occurs , the City shall
forthwith designate a new Paying Agent .
Section il . That if default is made and continues for
thirty (30 ) days in the payment of any interest coupon , the holder
of the bond to which it is attached may declare the same immediately
dile and payable , and the failure of the holder to exercise this
option upon any default shall not be a waiver of his right to
exercise the option upon any subsequent default ,
Section 12 . That when the bonds herein authorized to be
executed have been executed by the Nnyor and City Clerk and the
seal of the City impressed as herein provided, they shall be de-
livered to The Merchants National Bank, Port Smith , Arkansas , which
shall authenticate them and deliver them to Dabbs Sullivan Company
and B . L . Villareal Company , Little Rock, Arkansas , or order,
upon payment in cash of the purchase price plus accrued interest .
The accrued interest plus such amount of the proceeds of the sale
of the bonds as shall be sufficient to pay the interest on the
bonds until proceeds of the special tax are available shall be
deposited in the ° 1959 General Obligation Refunding and Improvement
UOUK 533 2'2 ®
Page 12
Bond Fund" (heretofore created) .
The balance of the proceeds of the bonds shall be deposited
in trust in a special account designated "Refunding and Improvement
Fund" and used for no other purpose than making the improvements
authorized hereby and refunding the bonds hereby authorized to
be refunded , paying necessary expenses incidental thereto and pay-
ing the expenses of issuing the bonds . The City expressly reserves
the right to pay into the "Refunding and Improvement Fund" out of
the first available proceeds of the special tax not required for
meeting bond principal and interest payments an amount equal to
the amount of the proceeds of the bonds used to pay interest
before the proceeds of the special tax were available . Any un-
expended balance remaining in the fund after the completion of said
refunding and improvements may be used to call the bonds of this
issue for payment prior to maturity, but , if not so used , shall
be deposited in the " 1959 General Obligation Refunding and Improve-
ment Bond I+und" .
Section 13 . That the terms of this ordinance shall con-
stitute a contract between the City of Fayetteville , Arkansas and the
holder or holders of the bonds and no variation or change in the
undertakings herein set forth shall be made while any of these
bonds are mitstanding except as hereinafter set forth in this
lection 13 , and the holder of any bonds may at any time for and on
his own behalf or for and on behalf of all bondholders enforce the
obligations of the City by a proper suit for that purpose .
Subject to the terms and provisions contained in this
section and not otherwise , the holders of not less than seventy-
five per cent ( 75%) in aggregate principal amount of the bonds
then outstanding shall have the right, from time to time, anything
contained in this ordinance to the contrary notwithstanding, to
consent to and approve the adoption by the City of such ordinance
supplemental hereto as shall be necessary or desirable for the
purpose of modifying, altering, amending, adding to or rescinding,