HomeMy WebLinkAboutOrdinance 1449 CANT\r
ORDINANCE NO .
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
SANITATION IMPROVEMENT REVENUE BONDS ; SETTING
UP CERTAIN FUNDS ; PRESCRIBING OTHER MATTERS
RELATING THERETO ; AND DECLARING AN EMERGENCY .
WHEREAS it has been found by the City Council of the
City of Fayetteville , Arkansas ( called "City" ) that the garbage
and rubbish collection , hauling and disposal service ( called
" Sanitation System" or "Sys"tem" ) presently serving the City is
inadequate for the needs of the City and its inhabitants ; and
WHEREAS the City Council has determined that the
Sanitation System should be improved and extended and has accepted
a special report and estimates of costs of the needed improve-
ments and extensions , which report is on file with the City Clerk
and to which reference may be made by any interested person , and
which in general calls for the following improvements : purchase ' of
trucks , containers and other equipment necessary for the collec -
tion of garbage and rubbish , construction of an incinerator for
the disposal of garbage and rubbish , purchase of equipment for
leaf pick- up and disposal , purchase of equipment for insecticidal
fogging for the control of flies and other insects , construction
of an animal shelter , purchase of trucks , vehicles and other
equipment necessary for the supervision of the Sanitation System
( which will be hereinafter referred to as the " improvements " ) ,
all at an estimated cost of $ 200 , 000 . 00 , including legal and
other necegsary expenses incidental to the purchase and construction
MiCXFILMED
DATE OCT 1 0 1978
REEL
of the improvements and to the issuance of revenue bonds ; and
WHEREAS the City can obtain funds with which to pay
for said improvements by the issuance of revenue bonds to be
repaid from sanitation service fees ; and
WHEREAS the City has made arrangements for the sale
of its $200 , 000 City of Fayetteville 3 1 / 2% Sanitation
Improvement Revenue Bonds dated July 1 , 1965 and due on July 1
in each of the years 1966 to 1980 , inclusive , to T . J . Raney
& Sons , Little Rock , Arkansas ( called " purchaser " ) , and
the purchaser has elected to convert said bonds to an issue
of $ 205 , 400 in bonds bearing interest at the rates of 3 and
3 1 / 4% per annum , and maturing as hereafter set forth ;
NOW , THEREFORE , BE IT ORDAINED by the City Council
of the City of Fayetteville , Arkansas :
X
Section 1 . That the purchase and erection of said
improvements be , and the same are hereby , approved , ratified
and confirmed .
Section 2 . That the sale of $ 200 , 000 in bonds bearing
interest at the rate of 3 1 / 2% , maturing as set forth above , to
T . J . Raney & Sons , Little Rock , Arkansas , and the conversion of
said bonds to an issue of $ 205 , 400 in bonds bearing interest at
the rates of 3% and 3 1 /4'/o per annum , as set forth below, be ,
and the same are hereby , approved and confirmed .
Section 3 . That there are hereby authorized and
ordered issued City of Fayetteville , Arkansas , Sanitation Improve-
ment Revenue Bonds in the total amount of $ 205 , 400 , the proceeds
of the sale of which are necessary to pay for said improvements .
The bonds shall be dated July 1 , 1965 , and interest shall be pay-
able semiannually on January 1 and July 1 of each year commencing
January 1 , 1966 . The bonds shall be numbered consecutively from
1 to 206 , inclusive , and shall be in the denomination of $ 1 , 000
each , except Bond No . 11 which shall be in the denomination of $400 .
Bonds Nos . 1 to 125 , inclusive , shall bear interest at the rate
of 3% per annum and Bonds Nos . 126 to 206 , inclusive , shall bear
interest at the rate of 3 1 /4% per annum , which shall be evidenced
by interest coupons , and the principal and interest shall be pay-
able in lawful money of the United States of America upon presenta-
tion of the bond or proper coupon at the office of Worthen Bank
& Trust Company , Little Rock , Arkansas . The bonds shall be
negotiable coupon bonds payable to bearer and shall mature on
. July 1 of each year as follows , but shall be callable for pay-
ment prior to maturity as hereafter set forth :
YEAR BOND NOS , AMOUNT
1966 1 - 11 $ 10 , 400
1967 12 - 22 11 , 000
1968 23 - 34 122000
1969 35 - 46 12 , 000
1970 47 - 58 . 12 , 000
1971 59 - 71 132000
1972 72 - 84 13 , 000
1973 85 - 97 13 , 000
1974 98 - 111 14 , 000
1975 112 - 125 14 , 000
1976 126 - 140 15 , 000
1977 141 - 155 152000
1978 156 - 171 16 , 000
1979 172 - 188 172000
1980 189 - 206 182000
Section 4 . That the City has examined the computation
by which an issue of $200 , 000 in bonds bearing interest at the
rate of 3 1 /2% maturing in the years 1966 through 1980 has been
converted to an issue of $ 205 , 400 in bonds bearing interest at
the rates of 3% and 3 1 /4% per annum , as above set forth , and
has found that by virtue thereof the City will receive no less
and pay no more than it would receive and pay if the bonds were
not converted .
Section 5 . That the bonds shall be executed on behalf
of the City by the Mayor and City Clerk (with either the facsimile
or manual signature of the Mayor and the manual signature of the
City Clerk) and shall have impressed thereon the seal of the City .
Interest coupons attached to the bonds shall be signed by the
facsimile signature of the Mayor , and the facsimile signature
of the Mayor lithographed or printed on the bonds or coupons shall
have the same force and effect as if he had signed each of said
honk` and coupons . The bonds together with interest thereon shall
be payable solely out of the Sanitation Revenue Bond Fund , as
hereafter set forth , and shall be a valid claim of the holders
thereof only against such fund and the amount of revenues
pledged to such fund , which revenues are hereby pledged and
mortgaged in an amount sufficient to provide for the equal
and ratable payment of said bonds . The bonds and interest
thereon shall not constitute an indebtedness of the City within
any constitutional or statutory limitation .
Section 6 . 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
contained therein :
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
SANITATION IMPROVEMENT REVENUE BOND
No . $
KNOW ALL MEN BY THESE PRESENTS :
That the City of Fayetteville , County of Washington ,
State of Arkansas , acknowkdges itself to owe , and for value
received , hereby promises to pay to bearer , solely from the special
fund provided as hereinafter set forth , the principal sum of
DOLLARS
in lawful money of the United States of America on the first day
of July , 19 , and to pay solely from said special fund interest
hereon at the rate of per cent ( %) per
annum from date , semiannually on the first days of January and
July , commencing January 1 , 1966 , upon presentation and surrender
of the annexed coupons as they severally become due . Both princi-
pal and interest on this bond are made payable at the principal
office of Worthen Bank & Trust Company , Little Rock , Arkansas .
This bond is one of an issue of two hundred six ( 206 )
revenue bonds , aggregating Two Hundred Five Thousand Four Hundred
Dollars ( $205 , 400) , dated July 1 , 1965 , and numbered from one ( 1 )
to two hundred six (206 ) , inclusive , all of like tenor and effect
except as to number , denomination , rate of interest , maturity and
right of prior redemption , issued for the purpose . of acquiring
and constructing Sanitation System improvements ( described in the
authorizing ordinance) and paying necessary expenses incidental
thereto .
This bond and the issue of which it forms a part are
issued in full compliance with the Constitution and laws of the
State of Arkansas , and pursuant to Ordinance No . / 4+3 of the
City Council of Fayetteville , Arkansas , duly adopted and approved
in x1n
on the Z&A day of 1965 ( called "authorizing ordinance" ) ,
and do not constitute an indebtedness of the City of Fayetteville
within any constitutional or statutory limitations . / The bonds are
not general obligations of the City but are special obligations
payable solely from net revenues derived from the Sanitation System
( defined in the authorizing ordinance ) which have been duly pledged
to the payment of the principal of and interest on the bonds . A
sufficient amount of the net revenues are to be set aside as a
special fund identified as the Sanitation Revenue Bond Fund ,
created by the authorizing ordinance , and used solely for the'
payment of the principal of , interest on and paying agent ' s fees
in connection with the bonds . Reference is hereby made to the
authorizing ordinance for a detailed statement of the revenues
pledged for the payment of the bonds , the nature and extent of
the security for the bonds , and the rights and obligations of the
City , the Trustee and the bondholders . The City has fixed and has
covenanted and agreed to maintain rates for the services of the
Sanitation System which shall be sufficient at all times to provide
for the proper and reasonable expenses of operation and maintenance
of the Sanitation System , the maintenance of a separate Depreciation
Fund for nepessary replacements to the Sanitation System , and to
provide 150% of the maximum amount that will become due in any year
for principal , interest and paying agent ' s fees on all outstanding
bonds payable from the revenues of the Sanitation System .
This bond shall be negotiable under the laws of the
State of Arkansas and is issued with the intent that the laws of
the State of Arkansas shall govern the construction thereof .
The bonds shall be callable for payment prior to maturity
in inverse numerical order at par and accrued interest as follows :
from the unexpended proceeds from the sale of the bonds of this
issue and from surplus revenues of the Sanitation System on any
interest payment date ; from funds from any source on any interest
payment date on and after July 1 , 1970 . Notice of the call for
redemption shall be published one time 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 , with the 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, pro-
vided funds for its payment are on deposit with the paying agent
at that time .
This bond shall not be valid until it shall have been
authenticated by the certificate hereon duly signed by Worthen
Bank & Trust Company , Little Rock , Arkansas , Trustee .
IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all
acts , conditions and things required to exist ; happen and be per-
formed precedent to and in the issuance of this bond have existed ,
have happened and have been performed in due time , form and manner ,
as required by law ; that the indebtedness represented by this bond
and the issue of which it forms a part does not exceed any constitu-
tional or statutory limitations ; and that sufficient of the
revenues derived from the operation of the Sanitation System have
been pledged to and will be set aside into said special fund for
the payment of the principal of and interest on the bonds .
IN WITNESS WHEREOF the City of Fayetteville , Arkansas ,
by its City Council , has caused this bond to be signed by the
facsimile signature of the Mayor and the manual signature of
the City Clerk , and sealed with the corporate seal of said City ,
and has caused the interest coupons hereto attached to be executed
by the facsimile signature of the Mayor , all as of the first day
of July , 1965 .
CITY OF FAYETTEVILLE , ARKANSAS
By. ( facsimile signature )
Mayor
ATTEST :
City Clerk
(SEAL)
Section 7 . That the rates to be charged for services
furnished by the Sanitation System heretofore fixed by Ordinance
No . 1443 of the ordinances of the City , passed and approved on the
26th day of April , 1965 , and the conditions , rights and obligations
pertaining thereto set out in said Ordinance No . 1443 are hereby
ratified and confirmed .
Section 8 . That the Treasurer designated by the City
shall be custodian of the gross revenues derived from the operation
of the Sanitation System and shall give bond for the faithful
discharge of his duties as such custodian and all references
herein to "Treasurer " shall mean the person so designated . If the
City Treasurer be so designated as Treasurer of the funds herein
referred to , then no additional bond shall be required ; otherwise ,
the amount of the bond shall be in the sum of $ 10 , 000 and shall be
approved by the Trustee . From and after the delivery of any bonds
issued under the provisions of this ordinance , the System shall be
continuously operated as a revenue producing undertaking . All
moneys received by the Treasurer shall be deposited by him in
such depository or depositories for the System as may be lawfully
designated from time to time by the City , subject however to the
giving of security as now or as hereafter may be required by law ,
and providing that such depository or depositories shall hold
membership in the Federal Deposit Insurance Corporation . All
deposits shall be so designated as to indicate the
p g particular fund
to which tale revenues belong . Any deposits in excess of the amount
secured by the Federal Deposit Insurance Corporation shall be
secured by bonds or other direct or fully guaranteed obligations
of the United States of America .
(Form of Coupon)
$ No .
January
On the first day of July , 19 , the City of
Fayetteville , Washington County , Arkansas , unless the bond to which
this coupon is attached is paid prior thereto , hereby promises to
pay to bearer , solely out of the funds specified in the bond to
which this coupon is attached
DOLLARS
principal
in lawful money of the United States of America at the /office
of Worthen Bank & Trust Company , Little Rock , Arkansas , Paying
Agent , being six (6 ) months ' interest then due on its Sanitation
Improvement Revenue Bond dated July 1 , 1965 , and numbered
CITY OF FAYETTEVILLE , ARKANSAS
By ( facsimile signature )
On each bond shall appear the following
CERTIFICATE
Worthen Bank & Trust Company , Little Rock , Arkansas ,
hereby certifies that this is one of a series of bonds described
herein aggregating $205 , 400 numbered from 1 to 206 , inclusive ,
all of like tenor and effect except as to number , denomination ,
rate of interest , maturity and right of prior redemption .
WORTHEN BANK & TRUST COMPANY
LITTLE ROCK , ARKANSAS
By
(Authorized Signature)
Section 9 . Sanitation Fund . All revenues derived from
the operation of the Sanitation System , shall be paid into a
special fund which is hereby created and designated "Sanitation
Fund " . Such revenues so deposited in the Sanitation Fund shall
be applied to the Operation and Maintenance Fund , the Sanitation
Revenue Bond Fund and the Sanitation Depreciation Fund and shall
be used only as authorized by this ordinance .
Section 10 . Sanitation System Operation and Maintenance .
Fund . There shall be paid by the Treasurer from the Sanitation
Fund into a fund which is hereby created and designated "Sanitation
System Operation and Maintenance Fund" (sometimes called ' Operation
and Maintenance Fund" ) , beginning on the first business day of the
month immediately following the month in which the bonds are deliver-
ed 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 set up
on an annual basis and one - twelfth (1 /12 ) of the amount thereof
may be paid into the Sanitation System Operation and Maintenance
Fund each month .
If in any month for any reason there shall be a failure
to transfer and pay the required amount into said fund , the amount
of any deficiency shall 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