HomeMy WebLinkAboutOrdinance 1508 ORDINANCE N0 . 1508
Alr *0551NAN0E' PROVIDING FOR THE ISSUANCE OF WATERWORKS AND.
SEWER REVENUE BONDS , SERIES 1966y BY THE CITY OF FAYETTEVILIE ,
ARKANSAS FOR THE PURPOSE OF FINANCING THE COST TO THE CITY
OF CONSTRUCTING EXTENSIONS , BETTERMENTS AND IMPROVEITNTS TO
THE WATERWORKS AND SEWER SYSTEM OF THE CITY ; PROVIDING FOR
THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS ;
PRESCRIBING OTHER MATTERS RELATING THERETO ; AND DECLARING AN
EMERGENCY
WHEREAS the municipally owned waterworks and sewer facilities of the
City of Fayetteville , Arkansas ( called " City" ) are operated as one municipal
undertaking and will be herein sometimes referred to as the "System" ; and
WHEREAS extensions , betterments and improvements to the System are:
necessary and the City has had prepared by John E . Mahaffey & Associates,
Inc . and L . M . McGoodwin , Consulting Engineers , Fayetteville , Arkansas,
preliminary plans and estimates ( called "Engineering Reports" ) , and the
Board of Directors and officials of the City and the Department have
studied the Engineering Reports , conferred with the consulting engineers
and otherwise investigated the extensions , betterments and improvements;
reflected therein ( herein collectively referred to as the " improvements" )
and the methods of firiarioing them, All dam the stani*#6int of the best
interest of the City, its inhabitants and the users of the System, and
WHEREAS it has been, and is hereby, determined that the improvements
reflected by the Engineering Reports ( copies of the Reports .beang on
file in the office of the City Clerk to which reference may be had for
the details of the improvements and the estimates of cost and made a
part hereof for all purposes ) should be accomplished, and that there
should be issued at this time $4 ,300 ,000 in principal amount or Water-
works and Sewer Revenue Bonds , Series 1966 ( herein referred to as the
" bonds!' of this issue" ) and
WHEREAS-the City has outstanding at this time $4, 685 ,000 in principal
amount of Waterworks and Sewer Revenue Refunding Bonds dated June 1 , 1963.
( called " outstanding bonds" ) issued under and secured by the provisions
of Resolution 7-61, adopted and approved on April 8, 1963 , ( called
"Resolution 7-6311 ) ; and
SEAS the bonds can be issued on a parity of security with the
outstanding bonds provided the conditions set forth in Section 19 of
Resolution 7-63 have been complied with and the Board of Directors has
determined that those conditions have been complied with and that ,
therefore , the bonds will be issued on and will rank on a parity of
security with theoutstanding bonds .
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the
City of Fayetteville , Arkansas : ,
'
Section 1 . That the improvements be accomplished . In this regard,
the appropriate officials of the City be and they are hereby authorized .
to execute all contracts and instruments and take all action necessary
to accomplish the construction of the improvements and to carry out the
authority conferred by this Ordinance or to evidence the exercise. thereof .
Section 2 . That under the authority of the Constitution and laws
of the State of Arkansas , including particularly Act No . 131 of the Acts
of Arkansas for the year 1933 , as amended , Act No . 132 of the Acts of
. . .Arkansas for the year 1933 , as amended , Act No . 297 of the Acts of
Arkansas for the year 1937 , as amended , and the decision of the Supreme
Court of the State of Arkansas in Harrison v . Braswell, 209 Ark . 1094,
194 S .W . 2d 12 ( 1946) , City of Fayetteville , Arkansas , 11aterworks and
Sewer Revenue Bonds , Series 1966 , are hereby authorized and ordered
issued in the aggregate principal amount of $4,300,000 . , The bonds shall
be dated September 1 , 1966 and interest thereon shall be payable on
December 1 , 1966 and semiannually thereafter on June 1 and December 1 of
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each year . The bonds shall be initially issued as fully registered bonds
(registered as to principal and as to interest ) and 'the principal and
interest shall be payable at the principal office of Republic National
Bank of Dallas , Dallas ] Texas . All of the bonds will bear interest at
the rate of 4 . 10 per annum from date to June 1j 1970 and at the rate of
4-1 /2% per annum thereafter until paid : The bonds shall be numbered
and shall mature as set forth in the following schedule , unless the
principal is prepaid as hereafter provided, and the bonds shall be in
the varying denominations reflected by the schedule ( with there being
one bond for each year in the denomination of the entire principal
maturity for the year) :
YEAR BOND NOS . PRINCIPAL AMOUNT
( June 1
1979 R- 1 $ 25 ,000
1980 R- 2 25 ,000
1981 R - 3 252000
1982 R- 4 25 ,000
1983 R- 5 252000
1984 R- 6 25 ,000
1985 R- 7 25,000
1986 R- 8 25 ,000
1987 R- 9 25 ,000
1988 R-10 253000
1989 R-11 25 ,000
1990 R-12 25 ,000
1991 R-13 325 ,000
1992 R-14 245 , 000
1993 R-15 355 ,000
1994 R -16 365 ,000
1995 R-17 385,000
1996 R-18 405 ,000
1997 R-19 425,000
1998 R-20 445 ,000
1999 R-21 465,000
2000 R-22 485 ,000
Payments of interest and prepayments of principal made in respect of
any bond may be made to the registered holder thereof or his designated
agent , without surrender of the bond, and all such payments shall fully
discharge the obligations of the City in respect of such bond to the
extent of the payments so made . The paying agent is to keep a duplicate
record of all payments made , and upon request the registered owner of
any bond shall present the same to the Paying Agent so that proper
notation of the payment can be made on the Payment record attached to
the bond . The City agrees that as soon as reasonably possible after
the receipt by the City of the written request of the registered holder
of any bond and upon receipt by the City of the expenses to be incurred
by it or a showing to the City, to the satisfaction of the City, that
expenses will be paid upon request , the City will prepare and execute
negotiable coupon bonds payable to bearer but registerable as to
principal only, in the denomination of $ 1 , 000 or $ 5,000 each, as requested
by the registered holder , in substantially the form of coupon bond
hereafter in this Ordinance set forth , in an aggregate principal amount
equal to the unpaid principal amount of the registered bond, with
coupons annexed thereto maturing after the date to which interest on
the fully registered bond shall have been paid , and the City will cause
the coupon bonds to be authenticated by Republic National Bank of Dallas,
Dallas , Texas (herein sometimes called the " Paying Agent" ) and delivered
to the registered holder of the fully registered bond upon surrender and
cancellation of the fully registered bond . The City shall at the time of
any such written request for an exchange of a fully registered bond for
coupon bonds deliver to the Paying Agent a Certificate certifying the
principal amount then unpaid on the fully registered bond and the date
to which interest on the fully registered bond shall have been fully
paid , Any fully registered bond so surrendered shall be cancelled and
delivered to the City . The Paying Agent shall be fully protected in
relying on any certificate or ordinance or resolution delivered to it
under the provisions of this Section . The coupon bonds received in
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exchange shall contain the designation of the fully registered bond and in
addition shall be numbered consecutively from 1 upwards ; for example , the
designation shall be "R-1 -1 " etc . There shall be no exchange privilege
from coupon bonds to fully registered bonds .
Section 3 . The bonds shall be executed on behalf of the Citv by the
Mayor and City Clerk and shall have impressed thereon the seal or- the City .
The facsimile signature of the Mayor may be used upon compliance with the
provisions of Act No . 69 of the Acts of Arkansas for the year 1959 . Interest
coupons attached to the coupon bonds shall be executed by the facsimile
signature of the Mayor . The Mayor ' s facsimile signature shall have the same
force and effect as if he had personally signed the bonds or coupons . The
bonds shall be executed by the manual signature of the City Clerk . The
principal of and interest on the bonds shall be payable solely out of the
Bond Fund ( hereafter referred to ) and shall be a valid claim of the bond-
holders only against the Bond Fund and the revenues pledged to the Bond
Fund which revenues ( being net revenues derived from the operation of the
System) are hereby pledged and mortgaged for the equal and ratable payment
of the principal of and interest on the bonds , and the outstanding bonds
which rank on a parity of security, and the Bond Fund shall be used for no
other purpose , The principal of and interest on the bonds shall not constitute
an indebtedness of the City within any constitutional or statutory limitation .
Section 4 • The fully registered bonds shall be in substantially the
following form:
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(Form of fully registered bond)
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WAuHINGTON
CITY OF FAYETTEVILLE , ARKANSAS
WATERWORKS AND SEWER REVENUE BOND
SERIES 1966
No . R- $
KNOW ALL MEN BY THESE PRESENTS :
That the City of Fayetteville , Washington County, Arkansas , a municipality
duly existing under the Constitution and laws of the State of Arkansas ,
( called " City" ) , for value received , promises to pay to Republic National
Bank of Dallas , Dallas , Texas or assigns ( called " Payee" ) the principal sura of
DOLLARS
on the first day of June , 19 in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of debts due the United States of America , and to pay interest on
the principal amount of this bond from time to time remaining unpaid in like
coin or currency, at the rate of 4 . 10% per annum from date to June 1 , 1970,
n .lusive , and at the rate of 4-1 /2% thereafter untill paid , payable on
December 1 , 1966 , and semiannually thereafter on June 1 and December 1 of
each year . Payment of principal and interest shall be made at the office of
Republic National Bank of Dallas , Dallas , Texas ( called " Paying Agent" ) ,
Payments of principal and interest , including prepayments of principal as
hereafter provided , shall be by check mailed to the Payee and payments other
than the final payment at maturity shall be made without the necessity of the
Payee ' s surrendering this bond and all payments so made shall fully discharge
the obligations of the City to the extent of the payments so made . The
Paying Agent shall keep a record of all payments and the Payee may at any
time submit this bond to the Paying Agent for completion of the Payment
Record as to all payments theretofore made . Upon final payment of principal
and interest , this bond shall be submitted to the Paying Agent for cancellation
and surrender to the City .
This bond is one of an issue of bonds aggregating Four Nillion Three
Hundred Thousand Dallars ($4,300, 000) in principal amount , issued initially
as fully registered bonds , designated "City of Fayetteville , Arkansas
Waterworks and °ewer Revenue Bonds , Series 1966" , dated September 1 , 1966
( called the " bonds" ) , The bonds are being issued for the purpose of financing
the cost of constructing extensions , betterments and improvements to the
Waterworks and Sewer facilities of the City (which are operated as one system
and herein referred to as the " System" ) , paying necessary expenses incidental
thereto and paying the expenses to the City of issuing the bonds .
The bonds are issued pursuant to and in full compliance with the Constitution
and laws of the State of Arkansas , particularly Act No . 131 of the Acts of
Arkansas for the. year 1933 , as amended, Act No . 132 of the Acts of Arkansas
for the year 1933 , as amended, Act No . 297 of the Acts of Arkansas for the
year 1937 , as amended , the decision of the Supreme Court of the State of
Arkansas in Harrison v . Braswell, 209 Ark . 1094, 194 S .W . 2d 12 ( 1946) and
pursuant to Ordinance No . 1508 adopted and approved on the 8th day of August ,
1966 ( herein called the " authorizing ordinance" ) . The bonds are not general
obligations of the City, but are special obligations payable solely from net
revenues derived from the operation of the System . There are presently
outstanding an issue of City of Fayetteville Waterworks and Sewer Revenue
Refunding Bonds , dated June 1 , 1963 ( called " outstanding bonds" ) issued under
Resolution 7-63 adopted and approved on April 8, 1963 ( called "Resolution 7-631 ) ,
and the bonds are being issued on and shall rank on a parity of security with
the outstanding bonds . Provision is made for an amount of the net revenues
derived from the operation of the System sufficient to pay the principal of and
w
J
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interest on the bonds and on the outstanding bonds to be set aside in a
special fund for that purpose identified as the "Waterworks and Sewer Revenue
Refunding Bond Fund" ( created by Section 5 of Resolution 7-63 ) with reference
being hereby made to the authorizing ordinance ( and to Resolution 7-63 ) for
a detailed statement of the nature and extent of the security, the rights
and obligations of the City and the registered owners and holders of the bonds
and the terms and conditions upon which the bonds are issued , including ,
without limitation , the covenant of the City to fix and maintain rates for
water and sewer services which shall be sufficient at all times to at least
provide for the payment of the reasonable expenses of operation and main-
tenance of the System, the payment of the principal of , interest on and
Paying Agent ' s fees in connection with the bonds and the outstanding bonds ,
as the same become due , and to maintain the other Funds at the required levels .
As provided in the authorizing ordinance , this bond is exchangeable at
the expense of the registered holder , at any time , upon notice to the City
and upon surrender of this bond to the City at the office of the Paying
Agent , for negotiable coupon bonds , payable to bearer but registerable as
to principal only , in the denomination of $ 1 , 000 or $ 5, 000 each, in an
aggregate principal amount equal to the unpaid principal amount of this
bond , and in the form of coupon bond provided for in the authorizing ordinance .
The bonds shall be subject to redemption prior to maturity as follows :
( 1 ) In the case of excess funds from the proceeds of the sale of the
bonds in the Construction Fund after the construction of the improvements
has been completed and in the case of surplus revenues derived from the
operation of the System, as set forth in the authorizing ordinance , the bonds
shall be subject to redemption prior to maturity from funds from those
sources , in whole or in part , on any interest payment date , at a price of
par and accrued interest with the redemption to be in inverse order of
maturity ( if less than all of a single maturity, then the principal amount
of the fully registered bond for that maturity shall be prepaid in multiples
of $ 1 ,000, or if there are exchange .,cc'dpon bonds for that maturity, then the
exchange coupon bonds are to be redeemed in inverse numerical order ) ; and
( 2) In the case of funds from any other source the bonds shall be
subject to redemption prior to maturity, in whole but not in part , on any
interest payment date between December 1 , 1968 and December 1 , 1970, inclusive ,
at a price of par and accrued interest and on any interest payment date on
or after June 1 , 1971 at a price of par and accrued interest plus a premium
of one per cent ( 1 % ) of the principal amount being redeemed .
In the case of registered bonds ( fully registered or registered as to
principal only) notice of redemption shall be given at least 15 days before
the redemption date by mailing to the registered owner of each bond a notice
specifying the redemption date and the number and maturity of the bonds
being redeemed ( in the case of a partial prepayment of a maturity the notice
shall specify the bond which is being partially prepaid and the amount of
principal being prepaid) . In the case of exchange coupon bonds ( payable to
bearer or registered as to principal) there shall be published a notice of
the redemption 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 exchange coupon bond being called
with the publication being at least 15 days prior to the redemption date .
After the redemption date each bond called for redemption ( and in the case
of a partial prepayment the amount of the principal being prepaid) shall
cease to bear interest provided funds for the redemption are on deposit with
the Paying Agent at that time .
The fully registered bonds may be assigned, and upon assignment the
assignor shall promptly notify the City at the office of the Paying Agent
by registered mail, and the assignee shall surrender the bond to the Paying
Agent either in exchange for a new registered bond for transfer on the
registration records and verification of the endorsement made on the payment
record attached hereto of the portion of the principal hereof and interest
hereon paid or prepaid, and every such assignee shall take this bond subject
to this condition .
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It is hereby certified that all conditions , acts and things required
to exist , to have happened and to have been performed precedent to and in
the issuance of this bond do exist , have happened and have been performed
in regular form, time and manner ; that the indebtedness represented by the
bonds does not exceed any constitutional or statutory limitation ; and that
sufficient revenues derived from the operation of the System have been
pledged for and will be applied to the payment of the principal of and
interest on the bonds to make those payments as the same become due .
This bond shall not be entitled to any benefit under the authorizing
ordinance or be valid or become obligatory unless it shall have been
authenticated by the Paying Agent completing the Certificate appearing
hereon .
IN WITNESS VHE'REOF , the City of Fayetteville , Arkansas has caused
this bond to be executed in its name by its Mayor and City Clerk (with
the facsimile signature of the i-iayor but with the manual signature of the
City Clerk) , thereunto duly authorized , and its corporate seal to be
affixed , all as of the first day of September , 1966 .
CITY OF FAYETTEVILLE , ARKANSAS
By ( facsimile signature)
Mayor
ATTEST :
City Clerk
(SEAL)
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C E R T I F I C A T E
This bond is one of the fully registered bonds that is part of an
issue of City of Fayetteville , Arkansas Waterworks and Sewer Revenue Bonds ,
Series 1966, dated September 1 , 1966, aggregating $4, 300,000 in principal
amount .
REPUBLIC NATIONAL BANK OF DALLAS
DALLAS , TEXAS
By.
(Authorized Signature
(Form of Assignment )
For value received , the registered owner last listed below sells ,
conveys , transfers , assigns and delivers this bond to the assignee last
listed below:
Registered Owner Assignee
i
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PAY11ENT RECORD
Name of Paying
Principal Agent Authorized
Principal Balance Interest Official and
Due Date Payment Due Payment Date Paid Title
December 1 ,
1966
June 1 ,
1967
December 1 ,
1967
June 1 ,
1968
December 1 ,
1968
June 1 ,
1969
December 1 ,
1969
June 1 ,
1970
December 1 ,
1970
Jane 1 ,
. 1971_ .
Decd' #� '
_ . 1971
June 1 ,
1972
December 1 ,
1972
June 1 ,
1973
__. December i
1973
June 1 ,
1974
December 1 ,
1974
June 1 ,
1975
December 1 ,
1975
June 1 ,
1976
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Name of Paying
Principal Agent Authorized
Principal Balance Interest Date Official and
Due Date Payment Due Payment Paid Title
December 1 ,
1976
June 1 ,
1977
December 1 ,
1977
June 1 ,
1978
December 1 ,
19713
June 1 ,
1979
December 1 ,
1979
June 1 ,
1980
December 1 ,
1980
June 1 ,
1981
December 1 ,
1981
June 1 ,
1982
December 1 ,
1982
June 1 ,
1983
December 1 ,
1983
June 1 ,
1984
December 1 ,
1984
June 1 ,
1985
December 1 ,
1985
June 1 ,
1986
December 1 ,
1986
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Name of Paying
Principal Agent Authorized
Principal Balance Interest Date Official and
Due DatePayment Due Payment Paid Title
June 1 ,
1987
December 1 ,
1987
June 1 ,
1988
December 1 ,
1988
June 1 ,
1989
December 1 ,
1989
June 1 ,
1990
December 1 ,
1990
June 1 ,
1991
December 1 ,
1991
June 1 ,
1992
December 1 ,
1992
June 1 ,
1993
December 1 ,
1993
June 1 ,
1994
December 1 ,
1994
June 1 ,
1995
December 1 ,
1995
June 1 ,
1996
December 1 ,
1996
June 1 ,
1997
Name of Paying
Principal Agent Authorized
Principal Balance Interest Date Official and
Due Date Payment Due Payment Paid Title
December 10
1997
June 1 ,
1998
December 1 ,
1998
June 1 ,
1999
December 1 ,
1999
June 1 ,
2000
and
WHEREAS the coupon bonds , interest coupons to be attached thereto
and the Certificate to be endorsed thereon are all to be in substantially
the following form, with necessary variations , omissions and insertions ,
to-wit :
_ 12 _
UNITED STATES OF AHERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE , ARKANSAS
WATERWORKS AND SEVIER REVENUE BOND
SERIES 1966
No . R- —
KNOW ALL MEN BY THESE PRESENTS :
That the City of Fayetteville , Washington County, Arkansas , a
municipality under the laws of the State of Arkansas ( called " City" ) for
value received , promises to pay to bearer , or if this bond be registered
to the registered owner hereof , on June 1 , 19 , the principal sum of
DOLLARS $ ( )
in such coin or currency of the United States of America as at the time of
payment shall be lagal tender for the payment of public and private debts ,
and to pay in li ^ coin or currency interest on said principal amount from
the date hereof until June 1 , 1970 at the rate of 4 . 10% per annum and
thereafter until paid at the rate of 4-1 /2% per annum, such interest to be
payable on December 1 , 1966 and semiannually thereafter on June 1 and
December 1 of each year upon presentation and surrender of the annexed
coupons as they severally become due . The principal and interest is
payable at the principal office of Republic National Bank of Dallas ,
Dallas , Texas ( the " Paying Agent" ) .
This bond is part of an issue of bonds aggregating Four Million
Three Hundred Thousand Dollars (w4, 300 ,000) in principal amount , designated
" City of Fayetteville , Arkansas Waterworks and Sewer Revenue Bonds , Series
19600, dated September 1 , 1966 ( called the " bonds" ) . The bonds were
initially issued as fully registered bonds but tris bond is one of several
exchange coupon bonds issued in exchange for and in lieu of a fully
registered bond pursuant to the exchange privilege contained in .the .._
authorizing ordinance (hereafter identified) .
The bonds are issued pursuant to and in full compliance with the
Constitution and laws of the State of Arkansas , particularly Act No . 131
of the Acts of Arkansas for theyear 1933 , as amended , Act No . 132 of the
Acts of Arkansas for the year 1933 , as amended , Act No . 297 of the Acts
of Arkansas for the year 1937 , as amended , the decision of the Supreme
Court of the State of Arkansas in Harrison v . Braswell, 209 Ark . 1094,
194 S .W . 2d 12 ( 1946) and pursuant to Ordinance No . 1508 adopted and
approved on the 8th day of August , 1966 ( herein called the " authorizing
ordinance" ) . The bonds are not general obligations of the City , but
are special obligations payable solely from net revenues derived from the
operation of the System . There are presently outstanding an issue of
City of Fayetteville Waterworks and Sewer Revenue Refunding Bonds , dated
June 1 , 1963 ( called " outstanding bonds" ) issued under Resolution 7-63
adopted and approved on April 8 , 1963 ( called Resolution 7-63" ) , and the
bonds are being issued on and shall rank on a parity of security with the
outstanding bonds . Provision is made for an amount of the net revenues
derived from the operation of the Svstem sufficient to pay the principal
of and interest on the bonds and on the outstanding bonds to be set aside
in a special fund for that purpose identified as the "Waterworks and Sewer
Revenue Refunding Bond Fund " ( created by Section 5 of Resolution 7-63)
with reference being hereby made to the authorizing ordinance ( and to
Resolution 7-63 ) for a detailed statement of the nature and extent of the
security, the rights and obligations of the City and the registered
owners and holders of the bonds and the termer and conditions upon which
the bonds are issued , icluding , without limitation , the covenant of the
City to fix and maintain rates for water and sewer services which shall
be sufficient at all times to at least provide for the payment of the
reasonable expenses of operation and maintenance of the System, the