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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, eooK 533 231 Pace 13 in any particular, any of the terms or provisions contained in this ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any bond issued hereunder, or (b) a reduction in the principal amcunt of any bond or the rate of interest there- in, or (e) the creation of a lien upon or a pledco of revenues other than the lien and nledce created by this ordinance, or (d) a orlvilego of Priority of any bond or bonds over any other bond or bonds, or (e) a reduction in the aggregate principal amount of the borxs required for consent to ouch supplemental ordinance. Section 14. That the provisions of this ordinance are separable and in the event that any section or part hereof shall be held to be invalid, such invalidity shall not affect the re- mainder of this ordinance. Section 15. That all ordinances and resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 16. That this ordinance shall not create any right of any character and no right of any character shall arise under or pursuant to it until the bonds authorized by this ordinance shall be issued and delivered. Section 17. That it is hereby ascertained and declared that the above described refunding and improvements authorized hereby are Immediately needed for the preservation of the public peace, health, safety and welfare. Said improvements and refundingcannot be carried out without the issuance of these bonds, and, therefore, it is declared that an emergency exists and this ordinance being necessary for the preservation of the public peace, health, safety and welfare shall be in force and take effect Immediately upon and GOOK 533 232 Page 14 APPROVED: ATTT: lnn■T) •, K .. At `I a•s l•OUK 533 233 CERTIPICATE The undersigned, Clark of the City of Fayetteville, Arkan3a3, hereby certifies that the foregoing pages, numbered 1 to i4, Inclusive, are a tree and correct copy of Grdinance rio. /PP6 adcpted at a G!y� 4 session of the Council of t:;e City of F€yettevillo, Arlo ncas, hold at the regular meeting place of the Council in said City at '4e o'clock on the day cf , 1959, and that said ordinance $ s of record in Ordinance Record Book n.f__, ._, page ,S2-o3o�r�/now in may possession. Given under my hand ant? Seal this �9 day of 1959• CERTIFICATE OF RECOR® '+LTttm Laana. } n' l U' i p.^tom s+rs l CR23i G zr�C aad Eft OYn a , tar W'thbKoa r�Waan= vrar:If Th3tt to uxt.cttere• $*riat.7t7fl a as E tm eat ? my dog .:r. 19.nJat�DCW�.,envCA�sa7neda say exoaclz�a�............... cm,.°�a3.awas+a'f C. ORDINANCE NO. 1226 AN ORDINANCE AUTHORIZING THE ISSUANCE OF BONDS FOR THE PUR- POSE OF REFUNDING THE OUTSTANDING BONDS OF THE CITYS HOSPITAL AND FIRE 1FIGUTING APPARATUS BONDS DATED SEPTEMBER 1, 1947; DEVELOPING AND IMPROVEING THE MUNICIPAL FLYING FIELD; ACQUIR- ING A SITE FOR, CONSTRUCTING AND EQUIPPING A CITY LIBRARY; LEVYING A TAX SUFFICIENT TO PAY THE PRINCIPAL 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 WHEREAS, 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 of developing and improving the municipal flying 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 outstanding bonds of the Cityts 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 WHEREAS, 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 27th day. of November, 1959, and at said sale the beat 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 Corr,- pany and E. L. Villareal & Company of Little Rock, Arkansas; and WHEREAS, 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 4-1/27a per annum; the bonds r.?aturing 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 3-1/217, per annum and the bonds maturing in 1984 and 1985 bearing., interest at the rate of 2' , Tier annum, and upon' e:casr:ination 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 . WHEREAS; pursuant to the authorization in the Notice of Sale the pur- chaser has elected to convert the $550,000 of 2%, 3-1/2%, 3. 31 1,u and 4-1/2% bonds to an issue of $578,000 of 2%1, 3-1/2170, 3-3/4% and 4% 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 Council will pay no more and receive no leas than it would pay and MICROFILMED - ..• E OCT 9 C DAT - RE;L .. -2- receive if the bonds were not converted; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas; Section 1. That the above described refunding and irr;proverr,ents approved by the electors at said special election be made and constructed. Section 2. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Amendment No. 13 to the Constit- ution of the State of Arkansas and Act 103 of the Acts of the General Assembly of the State of Arkansas for the year 1948, the City of rayetteville General Obligation'Refunding and Improvement Bonds are hereby authorized and ordered issued in the total principal amount of $578, 000, ther proceeds of the sale of which are neceasary'to provide sufficient funds for refunding the City's outstanding bonds dated September 1, 1947, developing and improving the municipal flying field, and acquiring a site for, constructing and equipping a city library, including necessary expenses incidental thereto and to the issuance of the bonds, and including an amount sufficient to pay interest on the bonds until tax collections are available. The bonds shall be numbered consecu- tively from 1 to 578, inclusive, and all bonds shall be in the denomination of $1,000 each. The bonds shall be dated November 1, 1959. Bonds Nos. 1 to 166. inclusive, which mature in the years 1963 to 1970, inclusive, shall bear interest at the rate of 3-1/2% per annum; Bonds Nos, 167 to 229, inclusive, which mature in the years 1971 to 1973, inclusive, shall bear interest at the rate of 3-3/4% per annum; Bonds Nos. 230 to 376, inclusive, which mature in the years 1974 to 1979. Inclusive, shall bear interest at the rate of 4% per annum; Bonds Nos. 377 to 502, inclusive, which mature in the years 1980 to 1983, inclusive, shall bear inferest at the rate of 3-1/2% 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 shallbe payable semi=annually on January l and July I 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, Tort Smith, Arkansas. The bonds shall mature on January id each year as follows, but are callab.,le as hereinafter set forth: YEAR BOND NOS. AMOUNT 1963-, - 1 2.0 .. $20,000 1964_: .... 21 40 20,000 •.:1965 41.- 61 2l, 000 1966: 62- 82 21,000 • :1967 83 - 103. 21,000 • 1968: :104- 124 21,000 •1969.. 125 - 145 21,000 1970 -146 - 166 219000 1971 167- 187 219000 1972 188 - 208 21,000 1973 209 - 229 21000 1974 230 - 251 22, 000 1975 252 - 274 23,000 1976 275 - 298 24.000 1977 299 - 323 25, 000 1978 324-349 26,000 1979 350 - 376 27.000 1980 377 - 405 29.000 1981 406 - 435 30,000 1982 436 - 468 33,000 1983 469- 502 34,000 1984 503 - 540 38,000 1985 541 -'578 38,000 • Section 3, That the bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have iir..pressed 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 each of said coupons. Section 4. That the bonds and coupons shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILL,E 7o GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BOND NO. $1,000 KNOW ALL MEN BY THESE PRESENTS: That the City of Fayetteville in the County of Vlashington and State of Arkansas acknowledges itself to owe and for value received promises to pay to bearer the sum of ONE THOUSAND DOLLARS in lawful 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, semi-annually on January 1 and July 1 of each year, commencing July 1, 1960, upon presentation and surrender of the annexed coupons as they severally become due; 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 Hundred Seventy ?might Thousand Dollars ($578,000) dated November 1, 1959, and numbered 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 outstanding bonds dated September 1, 1947, developing and improv- ing the municipal flying field, and acquiring a site for, constructing and equipp- ing 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 Arkaansas, particularly Amendment No. 13 to the Constitution 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 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 (3-1/2) mills special tax levied by the City Council under the authority of Amendment No. 13 to the Constitution of the State of Arkansas, and the City of -Fayetteville hereby pledges its full faith, credit and taxing power, including the said three and one-half (3.1/2) 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 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. 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 date. They will be callable in inverse nurrierical.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 (Z) 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 date1 and after the date fixed for re'derr:ption each bond so called shallcease to bear interest, provided funds for its payment are on deposit with the Paying Agent at that time. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions- and things required to exist,, happen and be performed. 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 due tisr e, 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 o€ Arkansas and rnade 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, Fort Smith, Arkansas. IN WITNESS WHEREOF, the City of Fayetteville, Arkansas has executed this bond by the hands of its Mayor and City Cleric and attested it with its cDrporatei seal and has caused the coupons hereto attached to be authenticated V,y the facirimile signature of its Mayor, all, as of the first day of November, 1959. CITY OF FAYETTEVILLE, ARKANSAS By Mayor ATTEST: Cit; Clerk (SEAL) (Form of Coupon) NO.• $ January On'Ihe first day of. July 19 , the City of Fayetteville, Washington County;:.Ark&nose, unlase S:he boat to which this coupon is attached is paid prior:thereto, hereby promises to'pay to bearer DOLLARS • in lawful:thoney'of the United Statas of America 'at the office of First NationAl'Bank, Fort Smith, Arkansas,' being six (6j months° interest then due on its General Obligation Refunding and Iinproven:ent Bond, dated November 1, 1959, and numbered Y Y • • \, • ♦ , I I C r • CITY OF FAYTTEVILLa, ARKANSAS By Mayor (the first coupon will be for eight (8) months' interest) On each bond 'shall appear the following CERTIFICATE This is to certify that this is one of the five hundred seventy--ei3ht (578) bonds of the issue mentioned and described within. • THE MERCHANTS NATIONAL BANK FORT SMITH, ARKANSAS By Fort Smith, Arkansas 19 Section 5. That in 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=1/2) mills on•each dollar of assessed valuation to be col- lected 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 morethanfive per cent (5%) added for 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 ex= tended 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 eonvenants and agrees that all of the revenues frost' the said three and one- half (34/2) 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 tin 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 continuously secured by bonds or other direct or fully guaranteed obligatio;m of the United States of America, t -- The CL.ty covenants that all revenues derived from said special tai: 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 pricr to maturity. Section 6. That for the prompt payment of the bonds of this issue with interest, the City of Fayetteville. Arkansas hereby plddges its full faith, credit and taxing power, including the tax lievied in Section 5. Section 7. That in order to pay the principal of and interest on said bonds as they mature, there are hereby appropriat•ad but 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 following sums: INTERSST 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 9,991.25 9,99112 19,982.50 1963 1 - 20 20,000 9,816.25 9,816.25 39,632.50 1964 21 - 40 20,000 9, 466.25 9,466.25 38,932.50 1965 41- 61 21.000 9,107.50 9.107.50 39,215.00 1966 62- 82 21,000 8,740.00 8,740.00 38,480.00 1967 83 - 103 21,000 8,372.50 8,372.50 37,745.00 1968 104 - 124 21,00O 8,005.00 8,005,00 37,010.00 1969 125- 145 21,000 7,637.50 7,637.50 36,275.00 1970 146 - 166 219000 7,270.00 ),270.00 35,540.00 1971 :167 - 187 21.000 6,889.37 x3889.38 34,778.00 1972 188 -208 21,000 6,495.62 6,495.62 33,991.25 1973 209 -229 : 21,000 6,101..87 6,101.88 33,203.75 1974 230 -,251 22,000 5,685.00 5,6.85.00 .33,370.00 1975 252 -.274 '. 23,000 5,235.00 5,235.00 33,470.00 1976 275 - 298 24,000 4,765.00 4,765.00 33,530.00 1977 299- 323 25,000 4,275.00 4,275.00 33,550.00 1978 324 -:3,49 26,000 - 3,765.00 3,765,)0 33, 530.00 1979 35O- 376 27,000 3,235.00 3,235.00 33,.470.00 1980 3'77 - 405 29,000 2711.25 2,71102L\ 34, 422.50 1981 406-435. 30,000 2,195.00 2,195.00 34,390.00 1982 . 436- 468 33,000 1,643,75 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 -3 - 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 th•-Z bond form 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 First National Bank, Fort Smith, Arkansas, the Paying Agent, at least five (5) days before the maturity date of any bond or interest coupon issued hereunder, an amount from the funds herein appropriated equal to the amount of such bonds or cou- pons, for the sole purpose of paying the same, together with the customary Paying Agent's fee. 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 First 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 appoint a now 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 take the nec- essary 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 11. 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 due 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 Mayor and City Clerk and the seal o€ the City impressed as herein provided, they shall be delivered to The Merchants National Bank, Fort Smith, Arkansas, which shall authenticate them and deliver them to• Dabbe Sullivan Company and E. L. Villareal & C bmpany. Little Rock, Ark-. ansas, or order, upon payment in cash of the purchase price plus accrued interest. The accrued interest plus such amount o€ the proceeds of the sale of the bonds as shall be sufficient to pay the interest on the bonds until pro- ceeds of the special tax are available shall be deposited in the "1959 General Obligation Refunding and Improvement BondFund" ;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 ex= penses incidental thereto and paying 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 I- ,.II� T,'. w.'. • . t • I. i C meeting bond principal and interest payrteato an amount equal to the amount of the proceeds -of the bonds usedJo 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 i_aiprove:'nente may be used to call the bends'of this issue for payrn3nt prior to :naturity, but, if not so used, shall be deposited in the "1959 General Obligation Refunding and Improvement Bond Fund". Section 13. That the terms of this ordinance shall constitute 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 outstanding e3;cept as hereinafter set forth in this Section 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.Cityty 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 (75/0) in aggregate principal.a`mount 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 ouch ordinance supple - mental hereto as shall be necessary or desirable for the purpose of modifying, altering, ainenaing, adding to or rescinding, in, any particular, any of the term©or provisions contained In this ordinance or in any supplemental ordin= ante; provided, however, that nothing herein . contained ohall permit or be construed as permitting (a) an ektegsion of the maturity of the principal of or the interest on any bond issued hereunder.' or (b) a reduction in the prim= cipal amount of any bond or the rate of interest tharein, or (c) the creation of a lien upon or a pledge of revenues other than the lien and pledge created by this ordinance, or (d) a privilege of priority of any bond or bonds over any other bond: or bonds, or (e) a reduction, in the aggregate principal amount of. the bonds required for consent to such supplemental ordinance. Section 14. That the provisions of this ordinance are separable and in the eventthat any section or part hereoi shall be held to be invalid, ouch invalidity'shall:not affect the remainder of.:this'ordinanee. V Section 15. That all ordinances and resolutions and parts thereof in con= flict herewith are hereby repealed to.the extent of such conflict. :Section 16.- That this ordinance shall not create any right of any character and:ao right of any character shall arise under or pursuant to it until the bonds -authorized by .this ordinance shall be issued and delivered. -Section 1.7._. That it is hereby ascertained and declared that the above described. refunding and improvements authorized hereby are immediately needed- for, the:prbservation of the public peace, health, safety and welfare. Said-imprtrverents and refunding- cannot be carriad out without the issuance yi. of'theee'bonds, and, therefore, it is declared than an emergency exists and this'ordinance being necessary for the pres-arvation of the public peace, health, safety and welfare "shall be in force and take effect immediately upon and after its. -passage. L -10c. (SEAL) PASSED: . d-/ 1959. APPROVED: CERTIFICATE The undersigned, Clerk of the City of Fayetteville. Arkansas, hereby certifies that the foregoing pages, numbered 1 to 1P inclusive, are a true and correct copy of Ordinance No, adopted at a session of the Council of the City of Fayetteville, Arkansas, held at the regular meeting place of the Council in said City at o'clodk .m., , on the day of 1959, and that said ordinan a is of record in Ordinance Record Book No. , page , now in my possession. Given under my hand and seal this day of .1959. (SEAL) City Clerk