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
4
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payment of the reasonable expenses of operation and maintenance 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.
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 coupon 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 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 publiaation 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 the deposit with the Paying Agent at that time.
This bond may be registered as to principal alone and may be discharged
from such registration, in the manner, with the effect and subject to the
terms and conditions endorsed hereon and set forth in the authorizing
ordinance. Subject to the provisions for registration endorsed hereon and
contained in the authorizing ordinance, nothing in this bond or the authoriz-
ing ordinance shall affect or impair the negotiability of this bond and
this bond shall be deemed a negotiable instrument under the laws of the
State of Arkansas and is issued with the intent that the laws of the
State of Arkansas will govern its construction.
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.
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IN WITNESS WHEREOF, the City of Fayetteville, Arkansas has caused
this bond to be executed in its name by its iiayor and City Clerk (with
the facsimile signature of the Mayor 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)
On each bond shall appear the following:
CERTIFICATE OF AUTHENTICATION
This is one of the exchange coupon bonds that is part of an issue
of the 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 Interest Coupon)
$I
No.
June
On the first day of December, 19 , the City of Fayetteville,
Arkansas, unless the bond to which this coupon is attached is paid prior
thereto, hereby promises to pay to bearer, solely out of the special
fund specified in the bond to which this coupon is attached,
DOLLARS
in such coin or currency as at the time of payment is legal tender for the
payment of debts due the United States of America, being six (6) months'
interest then due on its Waterworks and Sewer Revenue uond, Series 1966,
dated September 1, 1966, and numbered R- - .
CITY OF FAYETTEVILLE, ARKANSAS
By (facsimile signature)
Mayor
I
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PROVISIONS FOR REGISTRATION AND
This bond may be registered as to principal alone on books of the
City, kept by the Paying Agent as bond registrar, upon presentation hereof
to the bond registrar, which shall make mention of such registration in
the registration blank below, and this bond may thereafter be transferred
only upon an assignment duly executed by the registered owner or his attorney
or legal representative in such form as shall be satisfactory to the bond
registrar, such transfer to be made on such books and endorsed hereon by
the bond registrar. Such transfer may be to bearer and thereafter transfer—
ability by delivery shall be restored, but this bond shall again be subject
to successive registrations and transfers as before. The principal of this
bond, if registered, unless to bearer, shall be payable only to or upon the
order of the registered owner or his legal representative. Notwithstanding
the registration of this bond as to principal, the coupons shall remain
payable to bearer and shall continue to be transferable by delivery.
Payment to the bearer of the coupons shall fully discharge the City in
respect of the interest therein mentioned whether or not this bond be
registered as to principal and whether or not any such coupons be overdue.
Date of Name of Signature of
Registration Registered Owner • Bond Registrar
-16 -
Section 5. That it is hereby expressly found and declared that the
provisions of Section 19 of Resolution 7-63 pertaining to the issuance
of parity bond: have been fully met and complied with and that, therefore,
the bonds of this issue shall rank on a parity of security with the out-
standing bonds issued under Resolution 7-63. In this regard, the required
Certificate of the independent certified public accountant will be filed
in the office of the city Clerk prior to the delivery of the bonds of this
issue.
Section 6. The City covenants, reaffirms and agrees that all revenues
derived from the operation or ownership of the System shall be kept
separate and apart from other funds of the City. To that end the followin&
special Funds have heretofore been created and are hereby reaffirmed:
(a)
Waterworks and Sewer
Fund
(b)
Waterworks and Sewer
Revenue Refunding Bond Fund (hereinafter
called "Bond Fund")
(c)
Waterworks and Sewer
Revenue Refunding Bond Reserve Fund
(H ereinafter called
"Reserve Fund")
(d)
Waterworks and Sewer
Contingency Reserve (hereinafter called
"Contingency Fund")
(e)
Waterworks and Sewer
Repair and Replacement Fund (hereinafter
called "Repair and Replacement Fund")
(£)
Waterworks and Sewer
Surplus Revenue Fund (hereinafter called
"Surplus Revenue Fund")
• Section 7.. The City covenants, reaffirms and agrees that so long as
the bonds or outstanding bonds or interest on either remain outstanding
and unpaid, the entire income and revenues derived from the operation or
ownership of the System shall be set aside as collected and deposited in
the special Fund known as the "Waterworks and Sewer Fund" and there sha111
be disbursed therefrom each month such sums as are reasonable and proper
for the cost of operation and maintenance of the System. All revenues of
the System not actually required to pay the costs incurred as permitted by
this Section shall be deposited in the other Funds heretofore created and
herein reaffirmed, each of which shall have priority thereto in order
listed in the preceding Section.
Section B. On the first business day of each month, there shall be
set aside and deposited into the Bond Fund not less. than (a) the amounts
required to be paid into such fund by the resolution authorizing the
outstanding bonds plus (b) the amounts required to pay the principal,
interest, and paying agent's charges on the bonds as the same shall
respectively come due, such principal and interest requirements being as
follows:
0
•
.
- 17 -
INTEREST
1966
$ 44,075.00.
$ 44,075.00
1967
$ 88,150.00
88,150.00
176,300.00
1968
88,150.00
88,150.00
176,300.00
1969
88,150..00
88,150.00
176,300.00
1970
88,150.00
96,750.00
184,900.00
1971
96,750.00
96,750.00
19,-;,500.00
1972
96,750.00
96,750.00
193,500.00
1973
96,750.00
96,750.00
193,500.00
1974
96,750.00
96,750.00
193,500.00
1975
96,750.00
96,750.00
193,500.00
1976
96,750.00
96,750.00
193,500.00
1977
96,750.00
96,750.00
193,500.00
1978
96,750.00
96,750.00
193,500.00
1979
R -
1
25,000
96,750.00
96,187.50
217,937.50
1980
R. -
2
25,000
96,187.50
95,625.00
216,812.50
1981
R -
3
25,000
95,625.00
95,062.50
215,687.50
1982
R
4
25,000
95,062..50
94,500.00
214,562.50
1983
R -
5
25,000
94,500.00
93,937.50
213,437.50
1984
R -
6
25,000
93,937.50
93,375.00
212,312.50
1985
R -
7
25,000
93,375.00
92,812.50
211,187.50
1986
R -
8
25,000
92,812.50
92,250.00
210,062.50
1987
R -
9
25,000
92,250.00
91,687.50
208,937.50
1988
R -
10
25,000
91,687.50
91,125.00
207,812.50
1989
R -
11
25,000
91,125.00
90,562.50
206,687.50
1990
R -
12
25,000
90,562.50
90,000.00
205,562.50
1991
R -
13
325,000
90,000.00
82,687.50
497,687.50
1992
R -
14
345,000
82,687.50
74,925.00
502,612.50
1993
R -
15
355,000
74,925.00
66,937.50
496,862.50
1994
R -
16
365,000
66,937.50
58,725.00
490,662.50
1995
R -
17
385,000
58,725.00
50,062.50
493,787.50
1996
R -
18
405,000
50,062.50
40,950.00
496,012.50
1997
R -
19
425,000
40,950.00
31,367.50
497,337.50
1998
R -
20
445.000
31,387.50
21,375.00
497,762.50
1999
R -
21
465,000
21,375.00
10,912.50
497,287.50
2000
R -
22
485,000
10,912.50
495,912.50
For greater clarity, not less than the following amounts shall be
deposited into the Bond Fund in addition to those required to be made therein
by Resolution 7-63:
(a) On the first business day of September, October and
November in the year 1966: 1/3 of the interest and
Paying Agent's fees scheduled to become due on the
bonds on December 1, 1966; on the first business day
of each month beginning December 1, 1966: 1/6 of the
next succeeding interest and Paying Agent's fees to
become due on the bonds;
(b) On the first business day of each month beginning June 1,
1978: 1/12 of the next maturing principal payment and Paying
Agent's fees on the bonds.
No further payments need be made into the Bond Fund when the amount
contained therein and in the Reserve Fund is at least equal to the aggregate
principal amount of the bonds and outstanding bonds then outstanding, plus
the amount of interest then due or thereafter to become due on all such
bonds. All moray paid into the Bond Fund shall be held by the City in trust
for the holder or holders of the bonds, the outstanding bonds, and the
coupons appertaining thereto, and the City shall not have any beneficial
interest or right in such money.
All money deposited in the Bond Fund shall be used solely for the
purpose of paying interest on and the principal of the bonds, the outstanding
bonds, together with the Paying Agent's fees, and for no other purpose.
Section 9. In accordance with Resolution 7-63, there is now on deposit
in the Reserve Fund the sum of not less than $300,000.00. Upon the delivery
of the bonds, the City Treasurer is directed to deposit into said Fund the
additional sum necessary to bring siad sum to $500,000.00.
The Reserve Fund shall be maintained at $500,000.00 and shall be used
for no purpose other than to prevent a default in the payment of the
principal of and interest on the bonds and the outstanding bonds as the
same shall respectively come due. In the event moneys from the Reserve
Fund are utilized for the aforesaid purpose, the Fund shall be restored to
$500,000.00 from the first moneys in the Waterworks and Sewer Fund
available for the purpose.
Section 10. In accordance wit a Resolution 7-63, there is now on
deposit in the Contingency Fund the sum of not less than $100,000.00,
which said Contingency Fund shall be maintained at the said figure and shall
be used only to the extent necessary to meet any emergency arising out
of or affecting the continuous operation of the System as a revenue
producing undertaking for which there are no other funds available or
for preventing the default in the payment of principal of or interest
on the bonds or outstanding bonds, or performing any covenant of the
City for which there are no other funds available, and in the event moneys
from the said Contingency Fund are expended for the said purposes, or any
of them, the Contingency Fund shall be restored to $100,000.00 from the
first funds available in the Waterworks and Sewer Fund.
Section 11. In accordance with Resolution 7-63, there is now on
deposit in the Repair and Replacement Fund the sum of not less than
$50,000.00. The money in the said Repair and Replacement Fund shall
be used solely for the purpose of paying the costs of replacements made
necessary by the depreciation and/or obsolescene of the System and in
the event moneys from the Repair and Replacement Fund are expended for
the said purposes, or any of them, the Repair and Replacement Fund shall
be restored to $50,000.00 from the first funds available in the Waterworks
and Sewer Fund.
-19 -
Section 12. Any and all deposits required to be made into the
Reserve, Contingency, or the Repair and Replacement Funds by virtue
of the preceding sections shall be made on the first business day of
each month. If in any month the city shall for any reason fail to
pay into the Funds, the amounts required by Sections 8, 9, 10 and 11,
the full amounts stipulated, amounts equivalent to such deficiency shall
be set apart and paid into said Funds from the first available and un-
allocated revenues of the System for the following month or months
(having the priority of application in which said Funds are listed in
Section 6), and such payments shall be in addition to the amounts
hereinabove provided to be otherwise paid into s-2id Funds during such
month or months.
Section 13. Any revenues remaining in the Waterworks and Sewer
Fund after the payments required by Sections 7 through 12 hereof shall be
set aside and deposited into the Surplus Revenue Fund and may be used to
call bonds and outstanding bonds for redemption or for the construction
of improvements and betterments to the Systems, or for any lawful purpose.
Section 14. The provisions of Sections 4, 10 through 20 and 23 of
Resolution 7-63 are hereby made applicable to the bonds and shall inure
and appertain to the bonds to the same extent and with like force and
effect as if set forth in full except that a financial statement (required
by Section 16) shall also be filed with the Paying Agent. Any reference
to "bonds" or "Water and Sewer Revenue Refunding Bonds" as contained in
said Sections shall mean the outstanding bonds and the bonds of this issue.
The intended effect of incorporating of said provisions of Resolution
7-63 herein, shall be to make those provisions fully applicable to the
bonds of this issue and the language of Resolution 7-63 shall be construed
and interpreted to accomplish that intended effect. In this regard,
however, it is expressly covenanted:
(1) So long as any of the outstanding bonds, or any of the bonds
of this issue, or any bonds subsequently issued on a parity herewith, are
outstanding and unpaid, principal and interest, the City shall alwaya
continuously and efficiently operate the System as a revenue producing
undertaking and shall always charge and maintain in effect (and shall
increase the same from time to time if and to the extent necessary) rates
for the services of the System which will produce revenues at least
adequate for the operation and maintenance expenses of the System, for
making the required deposits into the Bond Fund for the purpose of paying
the principal of, interest on and Paying Agent's fees in connection with
the bonds, and the outstanding bonds, maintaining the Reserve Fund at
the required level ($500,000.00), maintaining the Waterworks and Sewer
Contingency Reserve at the required level, maintaining the Waterworks
and Sewer Repair and Replacement Fund at the required level, and discharging
all other monetary and other obligations of the City under Resolution
7-63 and under the authorizing ordinance;
(2) The provisions of Section 19 of Resololution 7-63 pertaining
to the issuance of additional bonds shall be applicable with the result
that the bonds of this issue shall be included with the outstanding bonds
and with any bonds then proposed to be issued insofar as the 133-1/3%
coverage requirement for parity bonds is concerned; and
(3) The investment provisions of Section 23 of Resolution 7-63 are
intended to be applicable to any funds available for investment (except
moneys in the Construction Fund created by Section 9 of this ordinance
which contains express provisions) and shall be considered part of the
particular fund out of which moneys are invested, with earnings credited
to the fund and losses charged against the fund, except, of course, when
earnings in the Reserve Fund, the Contingency Reserve and the Repair and
Replacement Fund increase the amount in the particular fund in excesa of
the required level of the particular fund the excess may be transferred
into the Waterworks and Sewer Fund.
Section
15.
That
the bonds shall
be subject
to
redemption
prior to
maturity as
set
forth
in the bond forms
appearing
in
Section 4
hereof.
-20 -
In this regard it is expressly understood that the redemption of the out—
standing bonds and the redemption of the bonds of this issue is entirely
separate so that there need be no proportionate or pro rata redemption of
the bonds of both issues and that the bonds of either issue may be redeemed,
in accordance with tie applicable redemption provisions pertaining to the
particular issue, in whole or in part without any redemption of any of the
other issue.
Section 16. That when the bonds have been executed and the seal of
the City impressed as herein provided, they shall be delivered to the
paying Agent, which shall authenticate them and deliver them to the order
of Republic National Bank of Dallas, Dallas, Texas upon receipt by the
Paying Agent, on behalf of the City, of the sum of Four idillion Three
Hundred Thousand Dollars ($4,300,000) plus accrued interest from September 1,
1966 to the date of delivery of the bonds (called "total sale proceeds").
The Paying Agent shall disburse the total sale proceeds as follows:
(a) The amount of the accrued interest shall be deposited into
the Bond Fund;
(b) The amount necessary to
of $500,000.00 shall be deposited
Republic National Bank of Dallas,
an eligible depository for all or
this designation being made pursu
Resolution 7-63); and
increase the Reserve Fund to the level
into the Reserve Fund (in this regard
Dallas, Texas is hereby designated as
any portion of the Reserve Fund with
ant to the provisions of Section 4 of
(c) The balance of the total sale proceeds shall be paid into a
special fund of the City which is hereby created and designated "Water
and Sewer Construction Fund" (sometimes called "Construction Fund").
The Construction Fund shall be maintained in a depository or depositories,
designated from time to time by the Board of Directors of the City,
that is a member of the Federal Deposit Insurance Corporation (Republic
National Bank of Dallas, Dallas, Texas is hereby designated as one of
the depositories which shall be eligible for the deposit of all or any
portion of moneys in the Construction Fund). The moneys in the Construction
Fund in excess of the amount insured by the Federal Deposit Insurance
Corporation, unless invested as hereafter specified, shall be continuously
secured by bonds or other direct or fully guaranteed obligations of the
United States of America, or bonds issued by the City, including this
Series. The moneys in the Construction Fund shall be disbursed for the
payment of the cost of accomplishing the improvements, paying necessary
expenses and making necessary expenditures incidental thereto, paying
engineering fees, paying legal fees, and paying the expenses of the City
incurred in the authorization and issuance of the bonds. Each disburse-
ment shall be by check or warrant signed by the City Treasurer and the
Manager of the System which shall reflect in respect of each payment:
(1)
The name of the person,
firm or corporation to
whom payment
is due;
(2) The amount to be paid; and
(3)
The
purpose
by
general classification
for which the obligation
to
be paid
was
incurred.
When the improvements have been completed and all authorized
expenditures from the Construction Fund have been made, if there be any
remaining balance in the Construction Fund, the City Treasurer and the
Manager of the System shall file a Certificate with the depository of
the Construction Fund, with a copy of the Certificate to be filed in the
office of the City Treasurer, stating that the improvements have been
accomplished and that all authorized expenditures have been made and
specifying the disposition to be made of the remaining balance in the
Construction Fund. In this regard, any remaining balance may be used
for redeeming bonds or may be transferred to the Bond Fund. Upon receipt
of the Certificate the depository of the Construction Fund shall transfer
or disburse the remaining balance as directed in the Certificate.
Y
- 21 _
Moneys in the Construction Fund may be invested and reinvested, as
directed by the City Treasurer or Manager of the System, in direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America, or in
Certificates of Deposit of the Paying Agent which shall mature not later
than the dates that the moneys in the Construction Fund will be needed
for the accomplishment of the improvements , as shall be determined by
the City in its sole discretion. Investments shall be deemed at all
times a part of the Construction Fund and any earnings shall be credited
to the Construction Fund and any losses shall be charged to the Construction
Fund.
Section 17. Title to any exchange coupon bond (references in this
Section 17 to "bond" shall mean exchange coupon bonds), unless such bond
is registered in the manner herein provided, and to any interest coupon
shall pass by delivery in the same manner as a negotiable instrument
payable to bearer. The City shall cause books for the registration and
for the transfer of the bonds as provided in this Ordinance to be kept
by the Paying Agent as Bond Registrar. At the option of the bearer,
any bond may be registered as to principal alone on such books, upon
presentation thereof to the Bond Registrar, which shall make notation of
such registration thereon. Any bond registered as to principal may there-
after be transferred only upon an assignment duly executed by the registered
owner or his attorney or legal representative in such form as shall be
satisfactory to the Bond Registrar, such transfer to be rode on such
books and endorsed on the bond by the Bond Registrar. Such transfer may
be to bearer and thereafter transferability by delivery shall be restored,
subject, however, to successive registrations and transfers as before.
The principal of any bond registered as to principal alone, unless
registered to bearer, shall be payable only to or upon the order of the
registered owner or his legal representative, but the coupons appertaining
to any bond registered as to principal shall remain payable to bearer
notwithstanding such registration. No charge shall be made to any bond
holder for the privilege of registration and transfer hereinabove granted,
but any bond holder requesting any such registration or transfer shall
pay any tax or other governmental charge required to be paid with respect
thereto, if any be applicable under governing laws to the particular
registration or transfer. As to any bond registered as to principal,
the person in whose name the same shall be registered shall be deemed
and regarded as the absolute owner thereof for all purposes, and payment
of or on account of the principal of any bonds shall be made only to or
upon the order of the registered owner thereof, or his legal representative,
and neither the City, the Paying Agent not t„e Bond Registrar shall be
affected by any notice to the contrary, but such registration may be changed
as herein provided. All such payments shall be valid and effectual to
satisfy and discharge the liability upon such bond to the extent of the sum
or sums so paid. The City, the Bond Registrar and the Paying Agent may
deem and treat the bearer of any bond which shall not at the time be
registered as to principal, and the bearer of any coupon appertaining
to any bond, whether such bond be registered as to principal or not, as
the absolute owner of such bond or coupon, as the case may be, whether
such bond or coupon shall be overdue or not, for the purpose of
receiving payment thereof and for all other purposes whatsoever, and
neither the City, the Bond Registrar nor. the Paying Agent shall be
affected by any notice to the contrary.
Section 18. That this ordinance shall not create any right of any
kind, and no right of any kind shall arise hereunder pursuant to it
until the bonds authorized by this ordinance shall be issued and delivered.
Section 19. That if any provision of this ordinance shall for any
reason be held illegal or invalid, such holdings shall not affect the
validity of the remainder of t,ie provisions of the ordinance.
Section 20. The City agrees to pay the following Paying Agent's fees:
(1) A semiannual fee of $50.00 for the payment of principal
and interest of all fully registerd bonds;
-22--
(2) A fee of 12-1/2 cents per coupon and :;.1.25 per bond
for the payment of principal and interest of $5,000
denomination exchange coupon bonds; and
(3) For services as registrar as to principal only
(effective upon submitting of initial bond for
registration):
(i) A minimum annual charge of $25.00 £or
the registration of not to exceed 25 bonds
in any one year and
(ii) 50 cents for each additional bond
registered or discharged from registration
in any one year.
Section 21. That the Mayor is hereby directed to publish for one
insertion in The Northwest Arkansas Times which is hereoy found and
declared to be a newspaper published in Fayetteville, Arkansas, and of
general circulation therein, this ordinance, to which shall be attached
a notice signed by him in substantially the following form:
NOTICE
Notice is hereby given that the Board of Directors of the City
of Fayetteville, Arkansas, has adopted the ordinance hereinafter set
out; that the City contemplates the issuance of the Waterworks and
Sewer Revenue Bonds described in the ordinance; that any person
interested may appear before the Board on the 22nd day of August,
1966, at 7:30 o'clock p.m., at the usual meeting place of the Board
held in Fayetteville, Arkansas and present protests. At such hearing
all objections and suggestions will be heard, and the Board will
take such action as is deemed proper in the premises.
DATED this 8th day of August, 1966.
C'
Mayor
Section
22. That
all
ordinances, resolutions
and parts
thereof in
conflict
herewith
are
hereby repealed to the
extent of
such conflict.
Section 23. That it is hereby ascertained and declared that the
waterworks and sewer facilities of the City are inadequate for the
present and for the foreseeable future and that by reason of such
inadequacy the lives, property and welfare of the City are in jeopardy.
The hazard can be alleviated by the construction of the improvements
but the bonds must be issued in order to obtain necessary funds for
accomplishing the improvements. It is, therefore, declared that an
emergency exists, and this ordinance being necessary for the immediate
preservation of the public peace, health and safety, shall take effect
and be in force from and after its passage;.
PASSED: August 8, 1966.
APPROVED:
Mayor
ATTEST:
CiyCclerk
(SEAL)
• •
ORDINANCE NO. _�
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
WATERWORKS AND SEWER REVENUE BONDS, SERIES
1966, BY THE CITY OF FAYETTEVILLE, ARKANSAS FOR
THE PURPOSE OF FINANCING THE COST TO THE CITY
OF CONSTRUCTING EXTENSIONS, BETTERMENTS AND
IMPROVEMENTS 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
financing them, all from the standpoint 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 improve-
ments reflected by the Engineering Reports (copies of the Reports being 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 of Waterworks and Sewer Revenue
Bonds, Series 1966 (herein referred to as the "bonds" or the "bonds of this
issue"); and ��OFILM�L910
Page 2
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 7-63, adopted and approved on April 8, 1963,
(called "Resolution 7-63"); and'
WHEREAS 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 the outstanding 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, and 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, Waterworks 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
each year. The bonds shall be initially issued as fully registered bonds
Page 3
(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 1, 1970 and at the rate of
4-1/2% per annum there-
after 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
25,000
1982
R- 4
25,000
1983
R- 5
25,000
1984
R- 6
25,000
1985
R- 7
25,000
1986
R- 8
25,000
1987
R- 9
25,000
1988
R-10
25,000
1989
R-11
25,000
1990
R-12
25,000
1991
R-13
325,000
1992
R-14
345,000
199,3
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 obliga-
tions 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
S
Page 4
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 resdlt Cdelivered to it under the provisions of this Section.
The coupon bonds received in 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 -l" 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 City by the
Mayor and City Clerk and shall have impressed thereon the seal of the City.
..
•
Page 5
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 bondholders 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:
Page 6
(Form of fully registered bond)
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
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 sum 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, inclusive, and at the
rate of 4-1/2% thereafter until paid, payable on December 1, 1966, and semi-
annually 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
Page 7
of the Payment Record as to all payments theretofore made. Upon final pay-
ment 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 Million Three
Hundred Thousand Dollars ($4,300,000) in principal amount, issued initially
as fully registered bonds, designated "City of Fayetteville, Arkansas Waterworks
and Sewer 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 adopted and approved on the 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 System sufficient to pay the principal of and interest on
• . •
.
Page 8
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 maintenance 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
Page 9
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
coupon 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 pay-
ment 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
Page 10
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 regis-
tration 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.
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 WHEREOF, 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 Mayor 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)
Page 11
CERTIFICATE
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
(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
Page 12
PAYMENT RECORD
Principal
Principal Balance
Due Date Payment Due
Name of Paying
Agent Authorized
Interest Official and
Payment Date Paid Title
December 1,
1966
June 1,
1967
Decemberl,
1967
June 1,
1968
December 1,
1968
June 1,
1969
December 1,
1969
June 1,
1970
Decemberl,
1970
June 1,
1971
December 1,
1971
June 1,
1972
December 1,
1972
June 1,
1973
December 1,
1973 -
June 1,
1974
December 1,
1974
Page 13
Due Date
Principal
Principal Balance
Payment Due
Name of Paying
Agent Authorized
Interest Official and
Payment Date Paid Title
June 1,
1975
December
1,
1975
June 1,
1976
December
1,
1976
June 1,
1977
December
1,
1977
June 1,
1978
December
1;
1978
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
Page 14
Name of, Paying
Principal
Agent Authorized
Principal Balance Interest
Official and
Due Date Payment Due Payment Date Paid
Title
June 1,
1985
December 1,
1985
June 1,
1986
December 1,
1986
June 1, -
1987
December 1,
1987
June 1,
1988
December 1,
1988
June 1,
1989
December 1,
1989
June 1,
1990
December1,
1990
June 1,
1991
December 1,
1991
June 1,
1992
December 1,
1992
June 1,
1993
December 1,
1993
June 1,
1994
Page 15
Name of Paying
Principal
Agent Authorized
Principal Balance
Interest Official and
Due Date
Payment Due•
Payment Date Paid Title
December
1,
1994
June 1,
1995
December
1,
1995
June 1,
1996
December
1,
199'6
June 1,
1997
December
1,
1997
June 1,
1998
December
1,
1998
June 1,
1999
December
1,
1999
June 1,
2000
Page 16
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:
1
I
Page 17
UNITED STATES OF AMERICA
• STATE OF ARKANSAS
COUNTY OF WASHINGTON
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 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 legal tender for the payment of public and private debts,
and to pay in like 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 ($4,300,000) in principal amount, designated "City
of Fayetteville, Arkansas Waterworks and Sewer Revenue Bonds, Series 1966",
dated September 1, 1966 (called the "bonds"). The bonds were initially issued
as fully registered bonds but this 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) .
• 4
Page 18
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. 16"* adopted and approved on the _L'day
of August, 1966 (herein called the Lauthorizing 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 System 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 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 maintenance 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.
Page 19
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 coupon
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 specify-
ing 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
Page 20
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.
This bond may be registered as to principal alone and may be
discharged from such registration, in the manner, with the effect and subject
to the terms and conditions endorsed hereon and set forth in the authorizing
ordinance. Subject to the provisions for registration endorsed hereon and
contained in the authorizing ordinance, nothing in this bond or the authoriz-
ing ordinance shall affect or impair the negotiability of this bond and this
bond shall be deemed a negotiable instrument under the laws of the State
of Arkansas and is issued with the intent that the laws of the State of
Arkansas will govern its construction.
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 authoriz-
ing ordinance or be valid or become obligatory unless it shall have been
authenticated by the Paying Agent completing the Certificate appearing
hereon.
2•
Page 21
IN WITNESS WHEREOF, 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 Mayor 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)
Page 22
On each bond shall appear the following:
CERTIFICATE OF AUTHENTICATION
This is one of the exchange coupon 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.
s
REPUBLIC NATIONAL BANK OF DALLAS
DALLAS, TEXAS
(Authorized Signature)
Form of Interest Coupon)
$ No.
June,
On the first day of December, 19_, the City of Fayetteville,
Arkansas, unless the bond to which this coupon is attached is paid prior
thereto, hereby promises to pay to bearer, solely out of the special fund
specified in the bond to which this coupon is attached,
DOLLARS
in such coin or currency as at the time of payment is legal tender for, the
payment of debts due the United States of America, being six (6) months'
interest then due on its Watennaks and Sewer Revenue Bond, Series 1966,
dated September 1, 1966, and numbered R- -
CITY OF FAYETTEVILLE'. ARKANSAS
By (facsimile signature)
Mayor
Page 23
PROVISIONS FOR REGISTRATION AND RECONVERSION
This bond may be registered as to principal alone on books of the
City, kept by the Paying Agent as bond registrar, upon presentation hereof
to the bond registrar, which shall make mention of such registration in the
registration blank below, and this bond may thereafter be transferred only
upon an assignment duly executed by the registered owner or his attorney
or legal representative in such form as shall be satisfactory to the bond
registrar, such transfer to be made on such books and endorsed hereon by
I the bond registrar. Such transfer may be to bearer and thereafter transfer-
ability by delivery shall be restored, but this bond shall again be subject
to successive registrations and transfers as before. The principal of this
bond, if registered, unless registered to bearer, shall be payable only to
or upon the order of the registered owner or his legal representative. Not-
withstanding the registration of this bond as to principal, the coupons shall
remain payable to bearer and shall continue to be transferable by delivery.
Payment to the bearer of the coupons shall fully discharge the City in
respect of the interest therein mentioned whether or not this bond be
registered as to principal and whether or not any such coupons be overdue.
Date of
Name
of
Signature of
Registration
Registered
Owner
Bond Registrar
Page 24
Section 5. That it is hereby expressly found and declared that the
provisions of Section 19 of Resolution 7-63 pertaining to the issuance of
parity bonds have been fully met and complied with and that, therefore, the
bonds of this issue shall rank on a parity of security with the outstanding
bonds issued under Resolution 7-63. In this regard, the required Certificate
of the independent certified public accountant will be filed in the office of
the City Clerk prior to the delivery of the bonds of this issue.
Section 6. •The City covenants, reaffirms and agrees that all
revenues derived from the operation or ownership of the System shall be kept
separate and apart from other Funds of the City. To that end the following
special Funds have heretofore been created and are hereby reaffirmed:
(a) Waterworks and Sewer Fund
(b) Waterworks and Sewer Revenue Refunding Bond Fund
(hereinafter called "Bond Fund")
(c) Waterworks
Fund (hereii
(d) Waterworks
after called
(e) Waterworks
(hereinafter
(f) Waterworks
after called
and Sewer Revenue Refunding Bond Reserve
rafter called "Reserve Fund")
and Sewer Contingency Reserve (herein -
"Contingency Fund")
and Sewer Repair and Replacement Fund
called "Repair and Replacement Fund")
and Sewer Surplus Revenue Fund (herein -
"Surplus Revenue,Fund")
Section 7. The City covenants, reaffirms and agrees that so long as
the bonds or outstanding bonds or interest on either remain outstanding and
unpaid, the entire income and revenues derived from the operation or owner-
ship of the System shall be set aside as collected and deposited in the special
Fund known as the "Waterworks and Sewer Fund" and there shall be disbursed
therefrom each month such sums as are reasonable and proper for the cost of
operation and maintenance of the System. All revenues of the System not
actually required to pay the costs incurred as permitted by this Section shall
Page 25
be deposited in the other Funds heretofore created and herein reaffirmed,
each of which shall have priority thereto in the order listed in the preceding
Section.
Section 8. On the first business day of each month, there shall
be set aside and deposited into the Bond Fund not less than (a) the amounts
required to be paid into such fund by the resolution authorizing the outstand-
ing bonds plus (b) the amounts required to pay the principal, interest, and
paying agent's charges on the bonds as the same shall respectively come
due, such principal and interest requirements being as follows:
YEAR
BOND
NOS.
Page 26
PRINCIPAL JUNE
INTEREST
1 DECEMBER 1
TOTAL
1966
$
$ 44,075.00
$ 44,075,00
1967
$88,150.00
88,150.00
176,300.00
1968
88,150.00
88,150.00
176,300.00•
1969
88,150.00
88,150.00
176,300.00
1970
88,150.00
96,750.00
184,900.00
1971
96,750.00
96,750.00
193,500.00
1972
96,750.00
96,750.00
193,500.00
1973
96,750.00
96,750.00
193,500.00
1974
96,750.00.
96,.750.00
193,500.00
1975
96,750.00
96,750.00
193,500.00
1976
96,750.00
96,750.00
193500.00
1977
96,750.00
96,750.00
193,500.00
1978
96,750.00
96,750.00
193,500.00
1979
R -
1
25,000
96,750.00
96,187.50
217,937.50
,1980
R -
2.
25,000
96,187.50
95,625.00
216,812.50
1981
R -
3
25,000
95,625.00
95,062.50
215,687.50
1982
R -
4
25,000
95,062.50
94,500.00
214,562.50
1983
R -
5
25,000
94,500.00
93,937.50
213,437.50
1984
R -
6
25,000
93,937.50
93,375.00
212,312.50
1985
R -
7
25,000
93,375.00
92,812.5O
211,187.50
1986
R -
8
25,000
92,812.50
92,250.00
210,062.50
1987
R-
9
25,000
92,250.00
91,687.50
208,937.50
1988
R-.
10
25,000
91,687.50
91,125.00
207,812.50
1989
R-
11
25,000
91,125.00
90,562.50
206,687.50
1990
R -
12
25,000
90,562.50
90,000.00
1991
R -
13
325,000
90,000.00
82,687.50
,205,562.50
497,687.50
1992
R-
14
345,000
82,687.50
74,925.00
502,612.50
1993
R -
15
355,000
74,925.00
66,937.50
496,862.50
1994
R -
16
365,000
66,937.50
58,725.00
490,662.50
1995
R-
17
385,000
58,725.00
50,062.50
493,787.50
1996
R-
18
405,000
50,062.50
40,950.00
496,012.50
• 1997
R-19
425,000
40,950.00
31,387.50
497,337.50
1998
R -
20
445,000
31,387.50
21,375.00
497,762.50
1999
R -
21
465,000
21,375.00
10,912.50
497,287.50
2000
R-
22
485,000
10,912.50
495,912.50
Page 27
For greater clarity, not less than the following amounts shall be
deposited into the Bond Fund in addition to those required to be made therein
by Resolution 7-63:
(a) On the first business day of September, October and
November in the year 1966: 1/3 of the interest and
Paying Agent's fees scheduled to become due on the
bonds on December 1, 1966; on the first business day
of each month beginning December 1, 1966: 1/6 of
the next succeeding interest and Paying Agent's fees
to become due on the bonds;
(b) On the first business day of each month beginning
June 1, 1978: 1/12 of the next maturing principal
payment and Paying Agent's fees on the bonds.
No further payments need be made into the Bond Fund when the amount
contained therein and in the Reserve Fund is at least equal to the aggregate
principal amount of the bonds and outstanding bonds then outstanding, plus
the amount of interest then due or thereafter to become due on all such bonds.
All money paid into the Bond Fund shall be held by the City in trust for the
holder or holders of the bonds, the outstanding bonds, and the coupons apper-
taining thereto, and the City shall not have any beneficial interest or right in
such money.
All money deposited in the Bond Fund shall be used solely for the
purpose of paying interest on and the principal of the bonds, the outstanding
bonds, together with the Paying Agent's fees, and for no other purpose.
Section 9. In
accordance with
Resolution 7-63, there
is now on
deposit in the Reserve
Fund the sum of
not less than $300,000.00.
Upon the
delivery of the bonds, the City Treasurer is directed to deposit into said Fund
the additional sum necessary to bring said sum to $500,000.00.
The F₹eserve Fund shall be maintained at $500,000.00 and shall be
used for no purpose other than to prevent a default in the payment of the
principal of and interest on the bonds and the outstanding bonds as the same
shall respectively come due. In,the event moneys from the Reserve Fund are
' I1
Page 28
utilized for the aforesaid purpose, the Fund shall be restored to $500,000.00
from the first moneys in the Waterworks and Sewer Fund available for the
purpose.
Section 10. In accordance with Resolution 7-63, there is now on
deposit in the Contingency Fund the sum of not less than $100,000.00, which
said Contingency Fund shall be maintained at the said figure and shall be
used only to the extent necessary to meet any emergency arising out of or
affecting the continuous operation of the System as a revenue producing
. Undertaking for which there are no other funds available or for preventing
the default in the payment of principal of or interest on the bonds or out-
standing bonds, or performing any covenant of the City for which there are
no other funds available, and in the event moneys from the said Contingency
Fund are expended for the said purposes, or any of them, the Contingency
Fund shall be restored to $100,000.00 from the first funds available in the
Waterworks and Sewer Fund.
Section ll. In accordance with Resolution 7-63, there is now on
deposit in the Repair and Replacement Fund the sum of not less than $50,000.00.
The money in the'said Repair and Replacement Fund shall be used solely for
the purpose of paying the costs of replacements made necessary by the
depreciation and/or obsolescence of the System and in the event moneys
from the Repair and Replacement Fund are expended for the said purposes, or
any of them, the Repair and Replacement Fund shall be restored to $50,000.00
from the first funds available in the Waterworks and Sewer Fund.
Section 12. Any and all deposits required to be made into the
Reserve, Contingency, or the Repair and Replacement Funds by virtue of the
preceding sections shall be made on the first business day of each month.
If in any month the City shall for any reason fail to pay into the Funds, the
amounts required by Sections 8, 9, 10 and 11, the full amounts stipulated,
amounts equivalent to such deficiency shall be set apart and paid into said
Funds from the first available and unallocated revenues of the System for
the following month or months (having the priority of application in which
said Funds are listed in Section 6), and such payments shall be in addition
to the amounts hereinabove provided to be otherwise paid into said Funds
during such month or months.
Section 13. Any revenues remaining in the Waterworks and Sewer
Fund after the payments required. by Sections 7 through 12 hereof shall be
set asideand deposited into the Surplus Revenue Fund and may be used to
call bonds and outstanding bonds for redemption or for the construction of
improvements and betterments to the Systems, or for any lawful purpose.
Section 14. The provisions of Sections 4, 10 through 20 and 23
of Resolution 7-63 are hereby made applicable to the bonds and shall inure
and appertain to the bonds to the same extent and with like force and effect
as if set forth in full except that a financial statement (required by Section 16)
shall also be filed with the Paying Agent. Any reference to "bonds" or
"Water and Sewer Revenue Refunding Bonds" as contained in said Sections
shall mean the outstanding bonds and the bonds of this issue. The intended
effect of incorporating of said provisions of Resolution 7-63 herein, shall
be to make those provisions fully applicable to the bonds of this issue and
the language of Resolution 7-63 shall be construed and interpreted to accomplish
that intended effect. In this regard, however, it is expressly covenanted:
(1) So long as any of the outstanding bonds, or any of the bonds
of this issue, or any bonds subsequently issued on a parity herewith, are
outstanding and unpaid, principal and interest, the City shall always contin-
uously and efficiently operate the System as a revenue producing undertaking
and shall always charge and maintain in effect (and shall increase the same
I '
.
Page 30
from time to time if and to the extent necessary) rates for the services of the
System which will produce revenues at least adequate for the operation and
maintenance expenses of the System, for making the required deposits into
the Bond Fund for the purpose of paying the principal of, interest on and
Paying Agent's fees in connection with the bonds, and the outstanding bonds,
maintaining the Reserve Fund at the required level ($500, 000.00), maintaining
the Waterworks and Sewer Contingency Reserve at the required level, maintain-
• ing the Waterworks and Sewer Repair and Replacement Fund at the required
level, and discharging all other monetary and other obligations of the City
under Resolution 7-63 and under the authorizing ordinance;
(2) The provisions of Section 19 of Resolution 7-63 pertaining to the
issuance of additional bonds shall be applicable with the result that the bonds
of this issue shall be included with the outstanding bonds and with any bonds
then proposed to be issued insofar as the 133-1/3% coverage requirement for
parity bonds is concerned; and
(3) The investment provisions of Section 23 of Resolution 7-63
are intended to be applicable to any funds available for investment (except
moneys in the Construction Fund created by Section 9 of this ordinance which
contains express provisions) and shall be considered.part of the particular
fund out of which moneys are invested, with earnings credited to the fund
and losses charged against the fund, except, of course, when earnings in
the Reserve, Fund, the Contingency Reserve and the Repair and Replacement
Fund increase the amount in the particular fund in excess of the required level
of the particular fund the excess may be transferred into the Waterworks and
Sewer Fund.
Section 15. That the bonds shall be subject to redemption prior to
maturity as set forth in the bond forms appearing in Section 4 hereof. In this
Page 31
I
regard it is expressly understood that the redemption of the outstanding bonds
and the redemption of the bonds of this issue is entirely separate so that
there need be no proportionate or pro rata redemption of the bonds of both
issues and that the bonds of either issue may be redeemed, in accordance
with the applicable redemption provisions pertaining to the particular issue,
in whole or in part without any redemption of any of the bonds of the other
issue.
Section 16. That when the bonds have been executed and the seal
of the City impressed as herein provided, they shall be delivered to the Paying
Agent, which shall authenticate them and deliver them to the order of Republic
National Bank of Dallas, Dallas, Texas upon receipt by the Paying Agent, on
behalf of the City, of the sum of Four Million Three Hundred Thousand Dollars
($4,300,000) plus accrued interest from September 1, 1966 to the date of
delivery of the bonds (called "total sale proceeds"). The Paying Agent shall
disburse the total sale proceeds as follows:
(a) The amount of the accrued interest shall be deposited into the
Bond Fund;
(b) The amount necessary to increase the Reserve Fund to the level
of $500,000.00 shall be deposited into the Reserve Fund (in this regard
Republic National Bank of Dallas, Dallas, Texas is hereby designated as an
eligible depository for all or any portion of the Reserve Fund with this desig-
nation being made pursuant to the provisions of Section 4 of Resolution 7-63);
and
(c) the balance of the total sale proceeds shall be paid into a
special fund of the City which is hereby created and designated "Water and
Sewer Construction Fund" (sometimes called "Construction Fund"). The
Construction Fund shall be maintained in a depository or depositories,
designated from time to time by the Board of Directors of the City, that is a
Page 32
member of the Federal Deposit Insurance Corporation (Republic National Bank
of Dallas, Dallas, Texas is hereby designated as one of the depositories
which shall be eligible for the deposit of all or any portion of moneys in the
Construction Fund). The moneys in the Construction Fund in excess of the
amount insured by the Federal Deposit Insurance Corporation, unless invested
as hereafter specified, shall be continuously secured by bonds or other direct
or fully guaranteed obligations of the United States of America, or bonds
issued by the City, including this Series. The moneys in the Construction
Fund shall be disbursed for the payment of the cost of accomplishing the
improvements, paying necessary expenses and making necessary expenditures
incidental thereto, paying engineering fees, paying legal fees, and paying the
expenses of the City incurred in the authorization and issuance of the bonds.
Each disbursement shall be by check or warrant signed by the City Treasurer
and the Manager of the System which shall reflect in respect of each payment:
(1) The name of the person, firm or corporation to whom
payment is due;
(2) The amount to be paid; and
(3) The purpose by general classification for which the
obligation to be paid was incurred.
When the improvements have been completed and all authorized
expenditures from the Construction Fund have been made, if there be any
remaining balance in the Construction Fund, the City Treasurer and the Manager
of the System shall file a Certificate with the depository of the Construction
Fund, with a copy of the Certificate to be filed in the office of the City
Treasurer, stating that the improvements have been accomplished and that
all authorized expenditures have been made and specifying the disposition
to be made of the remaining balance in the Construction Fund. In this regard,
any remaining balance may be used for redeeming bonds or may be transferred
to the Bond Fund. Upon receipt of the Certificate the depository of the
•
Page 33
Construction Fund shall transfer or disburse the remaining balance as directed
in the Certificate.
Moneys in the Construction Fund may be invested and reinvested, as
directed by the City, Treasurer or Manager of the System, in direct obligations
of, or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America, or in Certificates of Deposit of
the Paying Agent which shall mature not later than the dates that the moneys
in the Construction Fund will be needed for the accomplishment of the improve-
ments, as shall be determined by the City in its sole discretion. Investments
shall be deemed at all times a part of the Construction Fund and any earnings
shall be credited to the Construction Fund and any losses shall be charged to
the Construction Fund.
Section 17. Title to any exchange coupon bond (references in this
Section 17 to "bond" shall mean exchange coupon bonds)., unless such bond
is registered in the manner herein provided, and to any interest coupon shall
pass by delivery in the same manner as a negotiable instrument payable to
bearer. The City shall cause books for the registration and for the transfer
of the bonds as provided in this Ordinance to be kept by the Paying Agent as
Bond Registrar. At the option of the bearer, any bond may be registered as to
principal alone on such books, upon presentation thereof to the Bond Registrar,
which shall make notation of such registration thereon. Any bond registered
as to principal may thereafter be transferred only upon an assignment duly
executed by the registered owner or his attorney or legal representative in
such form as shall be satisfactory to the Bond Registrar, such transfer to be
made on such books and endorsed on the bond by the Bond Registrar. Such
transfer may be to bearer and thereafter transferability by delivery shall be
restored, subject, however, to successive registrations and transfers as
before. The principal of any bond registered as to principal alone, unless
Page 34
registered to bearer, shall be payable only to or upon the order of the
registered owner or his legal representative, but the coupons appertaining
to any bond registered as to principal shall remain payable to bearer notwith-
standing such registration. No charge shall be made to any bond holder for_
the privilege of registration and transfer hereinabove granted, but any bond
holder requesting any such registration or transfer shall pay any tax or other
governmental charge required to be paid with respect thereto, if any be
applicable under governing laws to'the particular registration or transfer..
As to any bond registered as to principal, the person in whose name the same
shall be registered shall be deemed and regarded as the absolute owner.
thereof for all purposes, and payment of or on account of the principal of
any bond shall be made only to or upon the order of the registered owner
thereof, or his legal representative, and neither the City, the Paying Agent
nor the Bond Registrar shall be affected by any notice to the contrary, but
such registration may be changed as herein provided. All such payments
shall be valid and effectual to satisfy and discharge the liability upon such
bond to the extent of the sum or sums so paid. The City, the Bond Registrar
and the Paying Agent may deem and treat the bearer of any bond which shall
not at the time be registered as to principal, and the bearer of any coupon
appertaining to any bond, whether such bond be registered as to principal or
not, as the absolute owner of such bond or coupon, as the case may be,
whether such bond or coupon shall be overdue or not, for the purpose of
receiving payment thereof and for all other purposes whatsoever, and neither
the City, the Bond Registrar nor the Paying Agent shall be affected by any
notice to the contrary.
Section 18. That this ordinance shall not create any right of any
kind, and no right of any kind shall arise hereunder pursuant to it until the
bonds authorized by this ordinance shall be issued and delivered.
Page 35
Section 19. That if any provision of this ordinance shall for any
reason be held illegal or invalid, such holdings shall not affect the validity
of the remainder of the provisions of the ordinance.
Section 20. The City agrees to pay the following Paying Agent's fees:
(1) A semiannual fee of $50.00 for the payment of principal
and interest of all fully registered bonds;
(2) -A fee of 12-1/2 cents per coupon and $1.25 per bond
for the payment of principal and interest of $5,000
denomination exchange coupon bonds; and
(3) For services as registrar as to principal only
(effective upon submitting of initial bond for
registration) :
(i) A minimum ahnual charge of $25.00 for
the registration of not to exceed 25 bonds
in any one year and
(ii) 50 cents for each additional bond
registered or discharged from registration
in any one year.
Section 21. That the Mayor is hereby directed to publish for one
� fJ
insertion in �f'A-
which is hereby found and declared to be a newspaper published in Fayetteville,
Arkansas, and of general circulation therein, this ordinance, to which shall be
attached a notice signed by him in substantially the following form:_
Page 36
NOTICE
Notice is hereby given that the Board of Directors of the City
of Fayetteville, Arkansas, has adopted the ordinance hereinafter set
out; that the City contemplates the issuance of the Waterworks and
Sewer Revenue Bonds described in the ordinance; that any person
interested may appear before the Board on the fr0"- -day of
1966, at 3'0 o'clock ?_.m. ; at the usual meeting place of
the Board held in Fayetteville, Arkansas and present protests. At such
hearing all objections and suggestions will be heard, and the Board -will
take such action as is deemed proper in the premises.
DATED this Y" day of 1966.
Mayor
t.
Page 37
Section 22. That all ordinances, resolutions and parts thereof in
conflict herewith are hereby repealed to the extent of such conflict.
Section 23. That it is hereby ascertained and declared that the
waterworks and sewer facilities of the City are inadequate for the present
and for the foreseeable future and that by reason of such inadequacy the
lives, property and welfare of the City are in jeopardy. The hazard can be
alleviated by the construction of the improvements but the bonds must be
issued in order to obtain necessary funds for accomplishing the improvements.
It is, therefore, declared that an emergency exists, and this ordinance being
necessary for the immediate preservation of the public peace, health and
safety, shall take effect and be in force from and after its passage.
PASSED: , 1966.
APPROVED:
ATTEST:
Ci Clerk .
(SEAL)
M
,.
CERTIFICATE
The undersigned, City Clerk of the City of Fayetteville, Arkansas,
hereby certifies that the foregoing pages, numbered 1 to 37j inclusive, are
a true and perfect copy of Ordinance No./gadopted at a�
session of the��Board of Directors
off�the City of Fayetteville, Arkansas,
held 8e4. dA. • nrll l/ in said City, at i O o'clock
4. m ♦ , . on the day'of , 1966, and that said
ordinance is of record in Ordinance Record Book No ♦ 4_ at page,
now in my possiession.
GIVEN under my hand and seal on this day of
1966♦
(SEAL)
CY
WHEREAS the municipally own-
ed waterworks and sewer facilities
of the City of Fayetteville, Arkan.
sas (called "City") are operated as
one municipal trader taking and
will be herein sometimes referred
to as the "System": and
WHEREAS extentions, better.
ments and improvements to the
System are necessary said
the City has had prepared by
John E. Mahaffey & Associates,
Inc and L. M. McGoodwin, Con -
suiting Engineers, Fayetteville, Ar-
�kansaa, preliminary plans and esti.
mates (called "Engineering Re-
ports'), and the Board of Directors
and officials of the City and the
Department have studied the En-
gineering Reports, conferrd with
the consulting engineers and other-
-vise investigated the extensions.
betterments and improvements re.
fleeted therein (herein collective-
ly referred to as the "improve.
ments") and the methods of fi-
nancing them, all from the stand -
mint. of the best interest of the
City, Its inhabitants and the users
I of the System: and
WHEREAS it has been, and is
hereby, determined that the im-
provements reflected by the En.
gineering Report (copies of the Be.
ports being 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 of Waterworks and Sewer
Revenue Bonds, Series 1966 (herein
'referred to as the "bonds" or the
bonds of this issue"); and
WHEREAS the City has out.
standing 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 7-63, adopted and ap-
proved on April 8, 1963, (called
"Resolution 7-63'): and
WHEREAS the bonds can be Is-
sued on a parity of security with
the outstanding bonds provided the
conditions set forth in Section 19
of Resolution 7-63 have been com-
plied with and the Board of Direc-
tors has determined that those con-
ditions have been complied with
and that, therefore, the bonds will
be issued on and will rank on a
parity of security with the out-
standing bonds.
NOW. THEREFORE. BE IT OR.
DAINED by the Board of Directors
of the City of Fayetteville, Arkan.
sas
Section I. That the improvements
be acenmpbsb ed in this regard.
the appmprialC' officials of the
City be and they are hereby au-
thorized to execute all contracts
and instruments and take all Ac-
tion 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 Au-
thority of the Constitution and
laws of the State of Arkansas, in-
cluding 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, and Act. No. 297
of the Acts of Arkansas for the
year 1937, as amended, and the de-
cision of the Supreme Court of the
State of Arkansas in Harrises v.
Braswell, 209 Ark. 1094, 194 S.W. 2d
12 (1946), City of r Fayetteville, -
kansas, Waterworks and Seer
Revenue Bonds, Series 1966, re
hereby authorized and ordered is-
sued in the aggregate principal
amount of $4,300.000. The bonds
shall be dated September 1, 1966
and interest thereon shall be pay-
able on December 1, 1966 and s, mi-
annually thereafter on June 1 and
December 1 of each year. The
bonds shall be initially i®ued as
fully regisitered bonds (registered
as to principal and as to interest)
be payable at the principal office
of Republic National Bank of Dal-
las, Dallas, Texas. All of the bond
will bear interest at the rate of
4.10% per annum from date to
June 1, 1970 and at the rate of
4i�% per annum thereafter until
paid. The bonds shall be num-
bered and shall mature as set
forth in the following schedule, un-
less the principal is prepaid se
hereafter provided, and the bonds
shall be in the varying denomina-
tions 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.
(June 1)
1979
R- 1
1980
R- 2
1981
R- 3
1982
R- 4
1983
R. 5
1984
R- 6
85
R- 7
9sf
R- 8
198%
R- 9
9+
R-10
19 ^
R-11
1940
R-12
1991
R-13
1992
R-14
1993
R-1.5
1994
R-16
1995
R-17
1996
H -IS
1997
R-19
1998
R-20
1999
R-21
2000
R-22
of interest and prepay.
principal made in re -
y bond may be made to
led holder thereof or
IeeI Netlees— I Legal Notices—
(CONITNUED FROMM PAGE 201 4. n. '.� nod and n __ ---__ { pprmYd on Apri.
upon request rhr registered nom P- ik:i n'alled " Resolutur. 7.63".
of any bond shall present the sane 1 and the bonds are being issued on
to the Paying Agent so that prop- and shall rank on a parity of se-
re notation of the payment can be curity with the outstanding bonds.
made on the Payment Record at-
Lched 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
expensees to be incurred by it or a
showing to the City, to the sails.
faction of the City, that expenses
will be paid upon request, the City
will prepare and execute negotia-
ble coupon bonds payable to bear-
er but reelsterable as to nrincinal
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 authenti-
cated by Republic National Hank
of Dallas. Dallas, Texas (herein
sometimes called the "Paying
Agent") and delivered to the reg-
letered holder of the fully regis-
tered bond upon surrender and
cancellation of the fully registered
Mad. 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 cer-
tifying the principal amount then
unpaid on the fully registered bond
been fully paid. Any
teed bond ao surre
City. The Paying Agent shall be
fully protected in relying on any
certificate or ordinance or resolu-
tion delivered to it under the pro-
visions of this Section. The coupon
bonds received in exchange shall
contain the designation of the
fully registered bond and in addi-
tion shall be numbered consecu-
tively from I upwards; for ex-
ample. the designation shall be
"R-1-1" etc. There shall be no ex-
change privilege from coupon
bonds to fully registered bonds.
Section 3. The bonds shall be exe-
uted on behalf of the City by the
Mayor and City Clerk and shall
have impressed thereon the seal of
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
he eaecuted by the facsimile signa-
ture of the Mayor. The Mayor's
facsimile signature shall have the
same force and effect as if he had
personally signed the bonds or cou-
pons. The bonds shall be executed
by the manual signature of the
City Clerk. The principal of and
interest on the bonds shall be pay-
able solely out of the Bond Fund
thereafter referred to) and shall be
a valid claim of the bondholders
only against the Bond Fund and
the revenues pledged to the Bond
aund which revenues (being net
revenues derived from the opera-
tion of the Systenu are hereby
pledged and mortgaged for the
equal and ratable payment of the
for no other purpose. The principa
of and interest on the bonds shat
not constitute an indebtedness a
the City within any constitutions
or statutory limitation.
Section 4. The fully registere,
boards shall be in substantially fh
following form:
Form of fully registered bond)
UNITED STATES OF AMERICA
STATE OF ARKANSAS
S1. MIINTY OF WASHINGTON
CITY OF FAYETTEVII.LE.
ARKANSAS
WATERWORKS AND SEWER
REVENUE BOND
SERIES 1966
Provision is made for an amount'
of the net revenues derived from
the operation of the System suffi-
cient 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 be-
ing hereby made to the authoriz-
ing 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, with-
out 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 opera-
tion and maintenance of the System,
the payment of the principal of
interest on and Paying Agent's fees I
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 exchange-
able at the expense of the regis-
tered holder, at any time. upon
notice to the City and upon sur-
render of this bond to the City
at the office of the Paying Agent.
for negotiable coupon bonds, pay-
able to bearer but registerable as!
to principal only, in the denomina-
tion of $1,000 or 15,000 each, in an!
aggregate principal amount equal
to the unpaid principal amount of
this bond, and in the form of cou-
pon bond provided for in the au -I
thorizing ordinance.
The bonds shall be subject to re -I
demption prior to maturity as fol-
(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 im-
provements has been completed
and in the case of surplus rev-
enues 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 inter-
est with the redemption to be in
inverse order of maturity (if leas
than all of a single maturity, that
the principal amount of the fully
registered bond for that maturity
shall be prepaid in multiples of
$1.000. or if there are exchange
coupon bonds for that maturity,
then the exchange coupon bonds
are to be redeemed in inverse nu-
merical order): and
12) In the case of funds from any
other source the bonds shall be
subject to redemption prior to ma-
turity, 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 in-
terest payment date on or after
Jure 1. 1971 at a price of par and
accrued interest plus a premium
of one per cent (l r) of the princi-
pal amount being redeemed.
In the case of registered bonds
(fully registered or registered as
to principal only) notice of re-
demption 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 no-
tice 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 regis-
tered as to principal) theft shall be
published a notice of the redemp-
tion one time in a newspaper pub -
t I lished in the City c1
Arkansas and havinf.
ALL MRN BY TIIFSE . ..•Le ihrnuvioat
WN
the Constitutum ?flu I:.•,p
State of Arkansas (called "Cry"
for value received, promisee to pa
to Republic National Bank of Da
lag. Dallas, Texas or assigns (calle
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 4.100
De annum from date to June 1,
19M, Inclusive, and at the rate of
4'�•r thereafter until paid, payable
an December 1. 1966, and semi-
annually thereafter on June 1 and
December 1 of each year. Pay-
ments of principal and interest
shall be made at the office of Re-
public National Bank of Dallas.
Dallas, Texas (called "Paying
Agent"1. Payments of principal
and interest, including prepay -
melts 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 necessi-
Iy of the Payees surrendering this
bend and all payments so made
shall fully discharge the obligations
of the City to the extent of the
payment, so made. The Paving
Agent shall keep a record of all
payments and the Payee may at
any time submit this bond to the
Paying Agent for completion
at the Payment Record as to all
payments theretofore made. Upon
final payment of principal and in-
terest this bond shall be sub-
mitted to the Paying Agent for
cancellation and surrender to the
City.
This bond is one of an Issue of
hands aggregating Four Million
Three Hundred Thousand Dollars
S43Mq)0) jn principal amount, is-
sued initially as fully registered
bonds, designated "City of Fay-
etteville. Arkansas Waterworks
and Sewer Revenue Bonds. Series
isle", dated September 1, 1966
called the "brands"), The bonds
are being issued for the purpose of
financing the cost of constructing
extensions, betterments and im-
provements 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 inci-
dental thereto and paying the ex-
neraee to the City of Issuing the..
bonds.
The bonds Sr. issued pursuant
to and in full compliance with the
Constitution and laws of the State
or 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 Arkanawg in Harrison v Braswell.
to
on
bonds are not general obligations
of the City, but are special obliga-
tions payable solely from net rev-
enues derived from the operation
of the System. There are presently
outstanding an issue of City of Fay-
etteville Waterworks and Sewer
Revenue Refunding Bonds, dated
.tune L 1963 (called "outstaanding
bonds") Issued under Resolution
tree rr.lemption ,lair. Alter
demption date each bond cal.
redemption (and in the ens,
partial prepayment the arm
the principal being prepaid
cease to bear interest pr
funds for the redemption
deposit with the Paying Ac
that time.
The fully registered bond.
be assigned, and upon asaig
the assignor shall promptly -L'
the City at the office of the Pad.
ing Agent by registered mail s,
the assignee shall surrendg
bond to the Paying Agent fit
exchange for a new regiatere,
for transfer on the regis
records and verification of t
dorsement made on the on
record attached hereto of th
lion of the principal hereof a
terest hereon paid or prepaid.
every such assignee shall take tin,
bond subject to this conditicr.
It is hereby certified ft" t o'
ditions. acts and thi,'
to exist, to have Kapp,
have been performed poi
and in the Issuance of this iw
exist, have happened and hay
performed In regular form
and manner; that the lndeM-:'
represented by the bonds does „-
exceed any constitutional or slat:
tory limitation: and that sufficient
revenues derived from the opera-
tion 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 he valid or become
obligatory unless it shall haor
been completing by the Pq•ba
Agent ng ting the Certifica
appearing hercon.
IN WITNESS WHEREOF
City of Fayetteville, Athis a exec exer:
ksns
caused bond to be t,
its name by its Mayor am
Clerk t with the facsimile sip'
of the Mayor but with the n
signature of the City Clerk),
unto duly authorized, and it:.
poste seal to be affixed, all as of
the fiat day of 9eyptemba, lees.
CITY OF AYtiILVILLE,
ARKANSAS
By (facsimile signature)
Mayor
ATTEST:
City Clerk
(SEAL)
CERTIFICATE
This bond is one of the full
!stared bonds that L part of
sue of City of Fayetteville,
sas Waterworks and Sewer
BAP,
.....o iz d . ...a u .. ...,.
(Form of Assignment) Signature)
falue o[ ed,theeg
For value received, the ells.
mar n listed below sails.
ys, ibond assigns teaand
s this b bond to the assignee
led below:
�gistered Owner Assignee
..................
..............
.................
..............
..................
...............
..................
...............
PAYMENT RECORD
Name of Paying
Principal
Agent
Author
Principal Balance Interest Date
(zed
Official
Due Date
payment Due Payment Paid
and
Title
December
1,
1966
...........
.Rune 1
.......... .......... ..........
.........
1967
........... ............ ...... .... ..........
' ......
NORTHWEST ARKANSAS
TIMES, Fayetteville,
Arkans Th
Legal Notice—
Legal Notices.
December 1,
1967 ........... ............
June 1
.......... ..........
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1968 .... I ...... ............
December 1.
1966
........... ............
June 1
.......... ..........
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1969 ........... ............
December 1,
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1969 ........... ............
June1
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1970
........... ............
December 1,
1970 ...........
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June1
.......... ..........
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1971 •,-,,,.....
December 1, ..........••
••......••
1971
June 1 ............
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1972 ...........
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December 1,
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._.........
1972 ...........
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June 1
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1973 ...........
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December 1,
n
J,..........
une1 ............
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1974 ...........
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December 1,
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1974 ...........
June 1 ............
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1975 ...........
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December 1,
.. .......... ..........
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1975 ...........
June 1 ............
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..
1976 ...........
December 1, ............
.....'.".
1976 ...........
June 1 ............
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1977 ...........
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December 1,
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1977 ...........
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June 1
.......... ..........
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1978 ...........
December 1, ............
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1978 ,..........
June 1 ............
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1979 ...........
December 1, .•..........
•.........
1979 ...........
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June1
.......... ..........
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1980 ...........
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December I.
.......... ..........
....... _...
1980 .....I.....
June1 .........
_. ..........
1981 ...........
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December 1,
... ....... ..........
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1981 ...........
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June1
.......... ..........
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1982 ...........
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December 1.
... ....... ..........
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1982 ...........
June 1 ............
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1983 ...........
December 1. ............
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1913 ...........
June 1 ............
1961 ...........
December 1. .........
... ..........
1984 ...........
June 1 ............
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1985 ...........
December 1, ............
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1985 ...........
June 1 •..........•
December
D 1,
..........
....... ...•
1986
June 1 ............
..........
1987 ...........
............
December 1.
.......... ..........
•......... ..
1987
J...........
June I ............
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1988
...........
December 1, ............
..........
1988 ...........
June I
1989
D..-........
December 1, ............
..........
1989 ,.-,,......
June 1"""'
....... ....
9c ...........
December 1, ............
..........
1990 ...........
June 1 ............
1991
........... ............
December 1.
.......... ..........
1991 ...........
............
June t
..........
1992
De,'...........
December I. ..... .......
..........
1992 ...........
June I .........
... .. ........
1993
December I.
.......... ..........
... ..
1993
_.......
...........
June1 ............
.......... ..........
1994
.. ......
December 1. ..........
......... ... .......
.......... .
1994
June I ....__ ........
1995
December 1. .....
-'........
1995
June 1
1996
December 1,
1996
---- ........... ............
WHERAS the coupon bonds, in-
....... I.. ......I..I .......... ..
7-63 adopted and approved
test coupons to be attached there-
tenetesolu
April 8. 1963 (called "R ion 7
to and the Certificate to be en-
dorsed thereon are all to be in
-
63'•). and the bonds are being it
sub-
stantially the following form, with
sued on and shall rank on aa
of Parity
necessary variations, omissions and
securit ywith
bonds. Prohe visiont dutsfondian
insertions, to -wit:
is made for an
amount of the net revenues derived
UNITED STATES OF
from the operation of the System
STATE OF ARKANSAS
to ny the principal
and
COUNTY OF WASHINGTON
SHINGT
and interest the bonds and
dsandon
CITY OF VILLE.
tnon
the outstanding bonds to be
ARKANSAS
et
in the set
fundfor
WATERWORKSAND SEWER
Purpe ose identifiedl as "Water.
REVENEUE BOND
works and Sewer Rev
SERIES 1966
No. R- .
KNOW ALI.• MEN BY THESE
PRESENTS:
That the City of Fayetteville.
Waahington 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 reg-
istered to the registered owner
hereof, on June 1, 19...., the prin-
cipal spin of
.. .. ..... DOLLARS (S 1
in such in or currency of the
United States of America as at the
tint, of payment shall be legal ten-
der fee the payment of public and
private debts, and to pay in like
coin or currency interest on said
principal amount from the date
here of until July 1, 1970 at the
rate of 4.10%@ per annum and there-
after until paid at the rate of 4 (,3 %
per annum, such interest to be pay-
abe) on December 1, 1966 and semi-
annually thereafter on June I and
December 1 of each year upon
pre&tation and surrender of the
annexed coupons asthey severally
become due. The principal and in-
terest is payable at the principal
office of Republic National Bank
of Dallas. Dallas, Texas (the "Pay -
114 Agent').
This bond is part of an issue of
bonds aggregating Four Million
Three Hundred Thousand Dollars
($4300000)in principal amount,
designated "City of Fayetteville.
Arkansas Waterworks and Sewer
Revenue Bonds, Series 1966". dated
September 1, 1966 (called the
"bonds'). The bonds were initially
issued as fully registered bonds but
this bond is one of several ex-
change coupon bonds issued in ex-
change for and in lieu of a fully
registered bond pursuant to the ex-
change 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 the
year 1933. se emended, 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,
229 Ark, 1094, 194 S.W.2d 12 (1946)
land pursuant to Ordinance No. 1508 the
and approved on e 8th
day of August, 1966 (herein called
the "authorizing ordinance"). The
bonds are not general obligations
of the City, but are special oblige -
I tlone payable solely from net rev-
enues derived from the operation
of the System. There are presently
outstanding an issue of City of Fay-
etteviBe Waterworks and Sewer
Revenue Refunding Bonds, dated
June 1. 1963 felled "Outstandng,
bonSue
d ued under Resolution
unQ
Ing Bond Fund' (created by b Sec-
tion 5 of Resolution 7-63) with ref-
erence being hereby made to then
authorizing ordinance (end to
Resolution 7-63) for a detailed
statement of the nature and ex-
tent of the security, the rights and
obligations of the City and the reg.
isteated owners and holders of the
bonds and the terms and conditions
upon Including,,c without h the bonds
limitation, the
covenant of the City to fix and
maintain rates for water and sew-
er services which shall he sufficient 1
at all times to at least provide for'
the payment of the reasonable ex -I
penses of operation and mainte-
nance of the System, the payment
of the principal of, interest on
and Paying Agent's fees in con-
nection with the bonds and the out -
Standing bonds, as the same be-
came due, and to maintain the oth-
er Funds at the required levels.
The bonds shall be subject to re-
demption prior to maturity as fol-
lows:
(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 rev-
enues 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 in-
verse 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
$1,001, or if there are exchange
coupon bonds for that maturity.
then the exchange coupon bonds
are to be redeemed in inverse nu-
merical order); and
(2) In the case of funds from
any other source the bonds shall he
subject to redemption prior to ma-
turity, 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 seemed interest and on any in-
terest payment date 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 redemp-
tion 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,
redemmed (iq the case of a partial
prepayment of a maturity the no -j
tics shall specify- the bond which
is being partially prepaid and !hel
amount of principal being prepaid.
ursday, August 11, 1%6 -2T
Legal Notices— Legal Notices —
In the case of exchange coupon
deposited in the special Fund
bonds (payable to bearer or reg-
known as the "Waterworks and
istered as to principal) there shall
Sewer Fund" and there shall be
he published a notice of the re-
disbursed therefrom each month
demotion wv time in a newspaper
such sums as are reasonable and
published in the City of Little
proper for the cost of operation and
Rock, Arkansas and having a gen-
maintenance of the System. All
eral circulation throughout the
revenues of the System not actually
State of Arkansas giving the num-
required to pay the coots incurred
her and maturity of each exchange
as permitted by this Section shall
coupon bond being called with the
be deposited in the other Funds
publication being at least 15 days
heretofore created and herein re -
prior to the redemption date. After
affirmed, each of which shall have
the redemption date each bond
priority thereto in the order listed
called for redemption (and In the
in the preceding Section,
case of a partial prepayment the
Section 8. On the first business
amount of the principal being pre-
day of each month, there shall be
paid) shall cease to bear interest
set aside and deposited into the
provided funds for the redemption
Bond Fund not less than (a) the
are on deposit with the Paying
amounts required to be paid into
Agent at that time,
such fund by the resolution au-
his bond may be registered as
thorizing the outstanding bonds
the to
to principal alone and may be dis-
plus (b) amounts required
charged from such registration, in
pay the principal, interest, and
paying agent's charges on the
the manner, with the effect and
subject to the terms
bonds as the same shall respective -
and conditions
endorsed hereon and set forth in
ly come due, such principal and in
the authorizing ordinance. Subject
serest requirements being as fol
Iowa;
to the provisions for registration
endorsed hereon and contained in
the authorizing ordinance. nothing
Year Bond Nod. Principal
in this bond or the authorizing or-
1966 $
dinance shall affect or impair the
1967
negotiability of this bond and this
198
bond s bond shall be deemed a negotiable
1969
Instrument under the laws of the
1970
State of Arkansas and Is leaned with
1971.
the intent that the laws of the
1972
State of Arkansas will govern its
1973
construction.
1974
It is hereby certified that all
1975
conditions, acts and things re-
1976
quired to exist, to have happened
1977
and to have been performed prece-
1978
dent to and In the issuance of this
1979 R- 1 25,000.
bond do exist, have happened and
1980 R- 2 25.000
have been performed in regular
1081 R- 3 25,000
form, time and manner; that the
1982 R- 4 25,000
indebtedness represented by the
1983 R- 5 25,000
bonds does not exceed any consti-
1984 R- 6 25.000
tutional or statutory limitation;
1985 R- 7 25.000
and that sufficient revenues de-
1986 R- R 25,090
rived from the operation of the
1987 R- 9 25.000
System have been pledged for and
1988 R-10 25,000
will be applied to the payment of
1989 R-11 25,000
the principal of and interest on the
1990 R-12 25,000
bonds to make those payments as
1991 R-13 325.000
the same become due.
1992 R-14 345.003
This bond shall not be entitled
1933 R-15 355,000
to any benefit under the authorjz-
1994 R-16 365.000
ing ordinance or be valid or or bebe-
1995 R-17 385,000
come obligatory unless it shall
1996 R-18 405,000
have been authenticated by the
1997 R-19 425.000
Paying Agent completing the Car-
1996 R-20 445.000
tiflcale appearing hereon.
1999 R-21 465,000
IN WITNESS WHEREOF, the
2000 R-22 485.000
City of Fayetteville Ar4nn.n r,....
its name by its Mayor and City
Clerk (with the fascimile signature)
of the Mayor but with the manual
signature of the City Clerk), there-'
unto duly authorized, and its cor-
porate seal to be affixed, al] as of
the first day of September 1966.
CITY OF FAYETTEVILLE,
ARKANSAS
By (facsimile signature)
ATTEST: Mayor
... .....
City Clerk
(SEAL)
On each bond shall appear the
following:
CERTIFICATE
OF AUTHENTICATION
This is one of the exchange cou-
pon bonds that is part of an issue
of City of Fayetteville. Arkansas
Waterworks and Sewer Revenue
Bonds. Series 1966, dated Septem-
ber 1. 1966, aggregating $4,300,000
in principal amount.
REPUBLIC NATIONAL BANK
OF DALLAS
DALLAS. TEXAS
By. . ...
(Authorized Signature)
(Form of Interest Coupon) June
On the first day of December,
19 ..., the City of Fayetteville, Ar-
kansas, unless the bond p which
this coupon Is attached is paid prior
thereto, hereby promises to pay to
bearer, solely out of the special
fund specified in the bond to which
thi scoupon is attached,
. ............... DOLLARS
For greater clarity, not less than
the following amounts shall be de-
posited into the Bond Fund in ad-
dition to those required to be made
therein by Resolution 7-63:
(a) On the first business day of
September, October and No-
vember in the year 1966: la
December 1, 1966; on the first
business day of each month
beginning December 1. 1966:
1/6 of the next succeeding in-
terest and Paying Agent's
fees to become due on the
bonds;
(b) On the first business day of
each month beginning June
1, 1978; 1/12 of the next ma-
turing principal payment and
Paying Agent's fees on the
bonds.
No further payments need be ll
made into the Bond Fund when the
amount contained therein and In
the Reserve Fund is at least equal
to the aggregate principal amount
of the bonds and outstanding bonds!
then outstanding, plus the amount
of interest then due or thereafter
to become due on all such bonds.
All money paid into the Bond
Fund shall be held by the City in
trust for the holder or holders of
the bonds, the outstanding bonds,
-and the coupons appertaining!
thereto, and the City shall not
have any beneficial interest or
right in such money.
All money deposited in the Bond
Fund shall he used solely for the'
purpose of paying interest on and
in such coin or currency as at the
time of payment is legal tender for
the payment of debts due the
United Stated of America, being six
(6) months' interest then due on
By facsimile signature)
Mayor
PROVISIONS FOR REGISTRA-
TION AND RECONVERSION
This bond may be registered as
to principal alone on books of the
City, kept by the Paying Agent as
bond registrar, upon presentation
hereof to the bond registrar, which
shall make mention of such regis-
tration in the registration blank
below, end this bond may there-
after be transferred only upon an
assignment duly executed by the
registered owner or his attorney
or legal representative in such form
as shall be satisfactory to the bond
registrar, such transfer to be made
on such books and endorsed here
on by the bond registrar. Such
transfer may be to bearer and
thereafter transferability by deliv-
ery shall be restored, but this bond
shall again be subject to successive
registrations and transfers as be-
fore. The principal of this bond, if
registered, unless registered to
hearer, shall he payable only to or
upon the order of the registered
owner or his legal representative.
Notwithstanding the registration
of this bond as to principal, the
coupons shall remain payable to
bearer and shall continue to be
transferable by delivery. Payment
to the bearer of the coupons shall
fully discharge the City in respect
of the interest therein mentioned
whether or not this bond be reg-
istered as to principal and wheth-
er or not any such coupons be over-
due.
Date Name of Signature
of Registered of Bond
Registration Owner Registrar
the principal of the bonds, the out-
standing bonds, together with the
Paying Agent's fees, and for no
other purpose.
Section !. In accordance with
Resolution 7-63, there is now on de-
posit in the Reserve Fund the sum
of not less than $300.000.00. Upon
the delivery of the bonds, the City
Treasurer is directed to deposit,
into said Fund the additional sum
necessary to bring said sum to!
$500,000.00.
The Reserve Fund shall be main-
tained at $500,000.00 and shall be
used for no purpose other than to
prevent a default in the payment
of the principal of and interest on
the bonds and the outstanding
bonds as the same shall respective-
ly come due. In the event moneys
from the Reserve Fund are utilized
for the aforesaid purpose, the Fund
shall be restored to $509893.00 from
the first moneys in the Waterworks
and Sewer Fund available for the
purpose.
Section 10. In accordance with
Resolution 7.69, there is now on
deposit in the Contingency Fund
the sum of not less than $100.000.00,
which said Contingency Fund shall
be maintained at the said figure
and shall be used only to the ex-
tent necessary to meet any emer-
gency arising out of or affecting
the continuous operation of the
System as a revenue producing
undertaking for which there are
no other funds available or for
preventing the default in the pay-
ment of principal of or interest on
the bonds or outstanding bonds.
or performing any covenant of the
City for which there are no other
funds available, and in the event
moneys from said Contingency
Fund are expended for the said
purposes, or any of them. the Con-
tingency Fund shall be restored to
$100.000.(10 from the first funds
available in the Waterworks and
Sewer Fund.
Section 11. in accordance with
with Resolution 7-63. there is now
on deposit in the Repair and Re-
placement Fund the sum of not
less than $50,000.01. The money in
the said Repair and Replacement
Section... . ..... . e. ....
lody5. That it flthex-
pressly ns found and declared that the
provisions r Siningn 19 t of Resolu-
tion bonds av to the issuugly met
of parityrbonds have been there-
fore, complied with and that,u thhrel
fare. the bonds of this issue shall
rank is a parity of security under
the utoan7-6g bonds Issued dtee
Resolution rred7-63. ca this regard, the
required Certificate of the inac-
count certified fill public eac-
countantafthe City be filed r the o -
the Clerk prior to the de-
livery of the City t of this issue,
re-
affirms S. The covenants, nussand agrees m that all rev-
enues canon derived from the operation
be owkept separate
of the apart from
all
be kept sdsaof and apart from
other Funds of the City. To that
end the following special Funds
have heretofore been created and
are hereby reaffirmed:
(a) Waterworks and Sewer
(b) Waterworks and Sewer
Revenue Refunding Bond
Fund (hereinafter called
'Bond Fund")
Cc) Waterworks and S e w e r
Revenue Refunding Bond
Reserve Fund (hereinafter
called 'Reserve Fund")
ld) Waterworks and Sewer Con-
tingency Reserve (herein-
after called "Contingency
Fund's
(e) Waterworks and Sewer Re-
pair and Replacement Fund
(hereinafter called "Repair
and Replacement Fund")
(f) Waterworks and Sewer
Surplus Revenue Fund (herein-
after called "Surplus Rev-
enue Fund")
section 7. The City covenants, re-
affirms and agrees that so long as
the bonds or outstanding bonds or
interest on either remain outstantl
ing and unpaid, the entire income
and revenues derived from the op
oration or ownership of the System
purpose of paying the costs of re-
placements made necessary by the
depreciation and/or obsolescence
of the System and in the event
moneys from the Repair and Re-
placement Fund are expanded for
the said purposes, or any of them.
the Repair and Replacement Fund
shall be restored to $50.000.00 from
the first funds available in the
Waterworks and Sewer Fund.
Section 12. Any and all deposits
required to be made into the Re-
serve. Contingency. or the Repair
and Replacement Funds by virtue
of the preceding sections shall be
made on the first business day of
each month. If in any month the
City shall for any reason fail to pay
into the Funds, the amounts re.
quired by Sections 8, 9, 10 and II.
the full amounts stipulated.
amounts equivalent to such defi-
ciency shall be set apart and paid
into said Funds from the first
available and unallocated revenues
of the System for the following
month or months (having the pri-
ority of application in which said
Funds are listed in Section 6), and
such payments shall be in addition
to the amounts hereinabove pro-
vided to be otherwise paid into
said funds during such month or
months.
Section 13. Any revenues re-
maining in the Waterworks and
Sewer Fund after the payments
required by Sections 7 through 12
hereof shall be set aside and de-
posited into the Surplus Revenue
Fund and may be used to call
bonds and outstanding bonds for
redemption or for the construction
of improvements and betterments
to the Systems or for any lawful
purpose.
Section 14. The provisions of
Sections 4, 10 through 20 and 23 of
Resolution 7-63 are hereby made
applicable to the bonds and shall
inure and appertain to the bonds
to the same extent and with like
farce and effect as if set forth n
full except that a financial state-
- ment (required by Section 116) shall
also be filed with the Paying Agent.
Any reference to "bonds" or
Legal Notices—- :_ .. - -- . Nstltees.
'Water and Se4t Rfal6Yl o'te filed' the office cj the
funding Bonds" ai bdntafhEd in - im
said Sections shall man tlN. outf:
standing bonds and till '4w O
eaand a nape df-
I this issue. The iptesso iffeet O tutee ve
incorporating lutionin- of eI �i
incolutlon 7-63 herein, shall be gnY
slake :hose pr1vI61A1$ fully ap. s
the bonds of }his isat lei, remaining balance may be used for
n' P; alb. - !"'rcmh r. her A. ear may he trans
ruff-
"Find
r,1ed.
surer
I dl-
!...•IIIIaL".�h.
n Tilt(, the System as a Ft op
arc, r .during undertaklI I R, _:
oIrsn-
^•d II tys charand n - Ara, . ' it
r r , r t, t and shall increase. it'O, o
F „ rte tent It in time if andforSitft OtAll
r - extent neec96syst tales ich {{hyy11 . 1ur, e
tIF(] of the System which �ila[es that the '.Fur m Rho I
'.'ocher revenues at le2at'struction Fund will be needed for
the accomplishment of( ,jhe im-
Interest prove .as shall be d isoreireed
Fine t December 1 Tatalibv the City in its sole m ed at loll
S t4,(175 0) S 44.375 nn! times a part of the Construction
,n un 8S,15n00 176 356) 00 Fund and may earnings shall be
;3 nn flA150,00 176900.OO credited to the Construction Fund
98,750.00 194 for. 001 and any losses shall be charged to
,u'.a 0675000 193,50000!the Construction Fund.
I I 96 750 00 193,500.001 Section 17. Title any exchange
-.'nn 96759.00 193,50000'coupon bond reference ( in this
-„ 111 96900.00 ]93.501.03, Section 17 to "bond' shall n
r50 n'.l %,755000 193.50000 j exchnn ge coupon bonds), unless
96,750,00 193,500 03! such head is registered in the man -
96,750,00 193.300.00 net herein provided, and to any in-
. -n ill 96,750.00 193,500 001 terest coupon shall pass by deliv-
z-In r3 %.187.57 217,937 50cry in the same marsner as aa ne-
s7.'10 95,6"-5.00 216,812.53 satiable '. The
Glycol payable to
:n 995OO,O' 215,687.53 Dpsrer, The City than cause books
'3,909,90 9N,66t1g0 `r t6r the registration and for the
^3.937.50 ...S1g gas 3 trao ffawerr of the bonds as provided
09133 a 21AMI In S1hr�4a edyiance to be kept by the
1',81$50 211.,1 .50 PSYitip tot as Bend Registrar.
1 u,250.W 80'1 AL the op ton of the bearer. any
"1.187,50 28 .50 pond rbe registered as to n-
'1,125,00 207 1 .53` N*lpsl store on such books, upon
0? Sn2,60 268.569.501 pr.$n$tl$tthcrf to file Bond
0.000.00 205.56250 Registrar. p3vbitch e B make rota-
' 41 82,887.50 497,847,50 A n 1 as,4W h T -flan thereon.
687 So 71.925.00 502.612.59 pal bond, art to terte -
.n5nn 66.937.50 4%,692.50. l - infly t 6 Y he' ttdilly en -
'197.A 55,723.00 493,682.50''. only uptFla tan acs dilly axe-
;25no 30,062.30 493,787.50' cited by the regta rePowfer or
'3:2.Sn 40,950.95e, 01 496,012.59 "a 9tghforrey'teg9T'Y6tft86lY17a ac-
' 050 CO 21,387.00 497.337 591 in ryI to forrry' s�if0, qe oe2Mfac
I75 51 21 M175.00 497,782.591 tray to . �"
:175 00 10.91230 497,287.50 transfer
n-..3 495,912.50 and one
Bond Be
the operation and I he to bt
1o,r ' iii expenses of the Sys- 11,rabllit
fomaking the required, dc.! Stored.
into the Bond Fund for the give rag
,wc of paying the principal of, before.
('St tin and Paying Agent's fees register'
'nil'nil
standing
t ton with the bonds and , leas re
e
nRrld ng benmaintain- payable
he Reserve Fund at the re- of the
mn.000.W1. maintain- legal n
:'works and Sewer I pone ap
Reserve At the re al lstered
maintaining the. payable
' I Sewer Repair and' ouch re
and at -the required be much u
urging ot
her other prlvller
to be:.n dde ",)Sam adoke
a rsedd on the bond by the
Sflstter. h may
in e'andf set y [ frena-
yall be re -
abject, however, to succes-
,strations and transfers as
Ohe ppeini of rely bond
d as to principal a10he, on-
istered to bearer, shall be
only to or upon the order
registered owner' or his
presentative. but the cou-
IS to ping to awy bond reg-
Is to principal "I to bearer notwithstanding
andi
fislration. No charge shall to any bond holder for the
of registration and trans-
nthet Obligatld iS Ot fer hereinabove granted, out any
Resolution 7-73 and bond holder requesting any such
hrtt'zing Ordtneace.- registration or transfer shall pay
song di Section 19 of any tax or other governmental
pe'rtafning to the charge required to be paid with re-
-ittlonal bonds shall, spect thereto, if any be applicable
with the result that, under governing lows to the par -
issue shall be in -I ticular registration.or transfer. An
Ir outstanding bonds to any bond registtt ', as to princf-
b'mds then Proposed i pal. the person 111w ' name the
'Fsofar as the 1331._•';, same shall he registered shall be
uirement for parityF deemed and rygar0 Y the ab.
riled: and solute owner Thereof flat all pur-
lment provisions of, poses. and payment of -or on ac-
Rasolutlon 7.63 are in -',count of the principal of any bond
shall be made only to or upon the
Section
15.
That
the
bonds
shall:
registered
as
to
principal
or
not.
t,,
i..,I,..
,n .,r
,' I ,
,
'tv
,.;, I I I,r
glirh
I I'., x116 k, v. d. ,I'..I ,: F', I: p';se,s
demption of the bonds of this issue, whatsoever, and neither the City.
is entirely separate so that there'( the Bond Registrar nor the Pay -
need b^ no proportionate m' pro u g Agent shall be affected by any
bola redemption of the bonds oflnrhnn to the contrary,
both issues and that the bonds of". Section 16. That this ordinal
either issue may he redeemed, in i shall not create any right of :a'
accordance with the applicable rekind, and no right of any kinr.
demption provisions pertaining to shall arise hereunder pursuant to
the particular Issue, in whole or it until the bonds authorized by
in part without any redemption of this ordinance shall be issued and
,any of the bonds of the other is -'delivered.
sue Section 19. That If any provl-
Section 26. That when the bonds Sion of this ordinance shall for any
have been executed and the seal) rea..on be held illegal or invalid,
of the City impressed as herein such holdings shall not affect the
provided, they shall he delivered ) validity of the remainder of the
I to the Paying Agent, which shall l Provisions of the ordinance,
authenticate them and deliver; Section 20. The City agrees to
'them to the order of Republic Na-' may the following Agent's fees:
lions) Bank of Dalian. Dallas, (l) A scmlonnual fee of $5000 for
Texas upon receipt by the Paying the payment of principal and
Agent, on behalf of the City, of the interest of all fully registered
stun of Four Million Three Run. bonds,
bred Thousand Dollars ($4,300.000) 12) A fee of 1?I] cents per cot, -
pins accrued interest from Sep- Pon and $1.25 per bond for
umber 1, 1986 to the date of de- the payment of principal sad
Ilyeri- of the bonds (called "total interest of $5,000 denomina-
'sale proceeds"). The Paving Agent lion exchange coupon bonds;
shall dfeburse the total sale pro-' and
coeds as follows: F. 3) For services as registrar as
TFr anrtnmi of the ar,'!'11"dl Io principal only )effective
lobost shall n, d(,p„.itrrl IFdn th,•' "pan suhnliltillc of initial
r..nn Fund, 1 vl fur regi.slration):
.hi I'hr nnmllnl nrrv,�.nre 'n ill 'it A minimum annual chargr
arena(' 11,' R,': I.rc„ Fold t,I IL,'' "f 52bn0 nor ibe registrali,..
levi-I "I 3:80 ,•'l,l nn shall 1,. ,'.. of not to exoeerl 25 (Fonds
POgnot iota ,hr ❑'l"1v. Final'al 'n ono %carand
-
this regant Rrpubljc Nutionol honk, 'ii) .1e. cents for garb arld
of Dallas, Dallas, Texas is hcrrityl tional register(d or die.
designated as an eligible depository! charged II'urn regietr atrop In
for all or any portion of the Re- •'^y one' year. y
serve Fund with this designation)' Section 21. That the 'tea
being made pursuant to the provi- hereby directed to publish for n.
sions of Section 4 of Resolution 7- insertion in The Northwest Ark:
631: and gas Times which is hereby in,;
tc) The balance of the total sale Read declared to be a newspa,
proceeds shall be paid into a ape- published In Fayetteville, Ark.
vial fund of the City which is here- gas. and of general circulat„
by created and designated Water therein, this ordinance. to wh'.
and Sewer Construction Fund"] shall he attached a notice signer'
(sometimes called 'Construction by him in substantially the follow -
Fund"). The Construction Fund ing form;
shall be maintained in a deposi- NOTICE
Cory' or depositories, designated' Notice is hereby given that
from time to time by the Board Board of Directors of the Cit;
of Directors of the City, that is a Fayetteville, Arkansas, has ador'
'member of the Federal Deposit In- i the ordinance hereinafter set
suranee Corporation (Republic Na- I that the City contemplates Ito
tionel Bank of Dallas, Dallas, Texas' suance of the Waterworks
is hereby designated as one of the' Sewer Revenue Bonds descril,.
depositories which shall he eligible! in the ordinance: that any perso.,
for the deposit of all or any por-'!interested may appear before the
tion of moneys in the Construction ' Board on the 22nd day of August.
Fund). The moneys in the Construe- 1966, at 7:30 o'clock p.m.. at th,'
tion Fund in excess of the amount usual meeting place of the Board
insured by the Federal Deposit In- held in Fayetteville. Arkansas and
surance Corporation, unless in- present protests, At such hearing
vested as hereafter specified, Ilhall all objections and suggestions will
he continuously secured by bonds be heard, and the Board will take
or other direct or fully guaranteed I such action as is deemed proper
obligations of the United States of in the premises.
America, or bonds issued by the DATED this 8th day of August,
City, including this Series. The! 1966 ,
of the cost of accomplishing the im-
provements, paying necessary ex-
penses and making necessary ex -
the City incurred In the authoriza-
tion and issuance of the bonds.
Each disbursement shall he by
'heck or warrant signed by the City
Treasurer and the Manager of the
System which shall reflect in re-
spect of each payment:
(1) The name of the person. fism
or corporation to whom pay-
ment is due:
(^I The amount to be paid: and
!:d The purpose by general clas-
sification for which the ob-
ligation to be paid was in-
applicable to any
Investment lex-
order of the registered owner there-
When the Improvements
for
the Construction
of, or his legal representative, and
1 been completed and all out'.
nh
by Section 9 of this
nither the City, the Paying Agent
expenditures from the Co
contain exora l
her the Bond Registrar shall be af-
I lion Fund have been made, i
rh
lull be considered
fected by any notice to the con.
I be any remaining balance
fund out of
trary, but such rek^stratiof'fmy be
", Construction Fund, She City
articular
are with
changed as herein provided. All
I urea and the Manner of it
,,.vs .invested,
:gs an diced to the fund and
such payments shall be valid and
!gem shall file a Certificates w
depository the Const.
n,.<e, charged against the fund,;
effectual to satisfy and discharge
of
r<, ant, of ('ourse, when earnings
the liability upon such bond to.
Fund, with a copy of the
- ' r Reserve Fund, the Contln•
the extent of the sum or gulrra r
,cucy Reserve and the Repair and
paid. The City, the Rand Registrar
R,. ran„ Ol.nt Fund Tneresse the
and the Paying Agent may deem
trwlt the benn'er of any bond
„n•I
DON TRUMBO. Mayor
Section 22. That all ordinances,
resolutions and parts thereof in
conflict herewith are hereby re-
pealed to the extent of such con-
flict,
Section 23. That it is hereby as-
certained and declared that the
waterworks and newer facilities of
the City are inadequate for the
present and for the foreseeable fu-
ture and that by reason of such in-
adequacy the lives, property and
welfare of the City are in jeopard'
The hazard can be alleviated by
the construction of the improve-
ments but the bonds must be is-
sued in order to obtain necessary
funds for accomplishing the im-
provements, It is, therefore, de-
clared that an emergency exists.
and this ordinance being necessary
for the immediate preservation of
the public peace, health and safety.
shall take effect and be in force
from and after its bas aEe.
4]ON TRUMBO, Mayor
ATTEST:
GEORGE 3. DAVIS,
City Clerk
I Seal) 11.14
.
+ STATE of ARKANSAS 1 -
)-as.
County of Washington J
w I, __ . -"" `^ ` _ hereby certify that I
am the Genefal Manag ) of THE NORTHWEST ARKANSAS TIMES,
a daily newspaper having a second class mailing privilege, and being not
less than four pages of five columns each, published at a fixed place of
business and at a fixed (daily) intervals continuously in the City of
Fayetteville, County of Washington, Arkansas for more than a period
of twelve months, circulated and distributed from an established place of
business to subscribers and readers generally of all classes in the City
& County for a definite price for each copy, or a fixed price per annum,
which price was fixed at what is considered the value of the publication,
based upon the news value and service value it contains, that at least fifty
percent of the subscribers thereto have paid cash for their subscriptions
to the newspaper or its agents or through recognized news dealers over a
period of at least six months; and that the said newspaper publishers an
average of more than forty percent news matter.
I further certify that the legal notice hereto attached In the matter of
----------------------�.Lc-c--W_!s-----------------------
was published in the regular daily issue of said newspaper for -------1_---.-_
^n=om^u ti p insertiond as follows:
The first insertion on the ----------------------------day of -----------------1944
the second insertion on the --.___ _____ ______ day of --------------------19_
the third insertion on the -..._._. ......._______ day of .--_---___—___. 19--_
and the fourth insertion on the ---------------------- day of ---------------------
p
Sworn to and subscribed before me on this __-----.-..-.-_-___ day of
---(�f(---------------- 19-.4`
No ry Public
My Commission Expires: p.
Fees for Printing I'----3 --
Cost of Proof
• Total -------- $-O-L - 3
Waterworks and Sewer Revenue Bond
$4,300,000.00
Series 1966
Ordinance 1508
Part1ofI
City of Fayetteville, Arkansas
'"ROFILMED
COMMERCIAL
UNION ASSURANCE
COMPANIES
NOTICE OF CANCELLATION OF BOND BY SURETY
Certified Mail J�yU
1980
To: State of Arkansas Date: August 18, 1980
Highway Dept
Capitol Building
Little Rock, Ark 72200
American Employers Insurance Company as Surety, hereby notifies you
that its Bond No. AE 7103027 dated on or about October 1, 1969 on behalf of
City of Fayetteville
as Principal,
in favor of Ark State Highway Dept , asObligee,
described as Guarantee Installations on Ark Highway Right of Way
is hereby canceled effective October 1. 1980
and that as said Surety it shall not be responsible thereunder for any acts or defailts committed or loss occurring after said date.
By
Dorothy W. latkins
OBLIGEE PLEASE ACKNOWLEDGE RECEIPT ON DUPLICATE ORIGINAL WHICH IS ENCLOSED AND RETURN TO:
Commercial Union Assurance Companies
COMMERCIAL UNION
ASSURANCE COMPANIES
P_ C) DRAWFR_P
RUSTON, LOUISIANA 71270
The foregoing Notice of Cancellation was received on
Liability under your bond terminates effective
Surety
Attorney
Obligee
tie
060819-1 (Execute and send to Obligee in Duplicate. Use Registered or Certified Mail asrenuired tw Bond.)
5-71
L
FRIDAY. ELDREDGE & CLARK
HERSCHEL H. FRIDAY
ATTORNEYS AT LAW
OSCAR E. DAVIS. JR.
WILLIAM A. ELDREDGE. JR.
JAMES C. CLARK. JR.
S. CLARK
THE FIRST NATIONAL BUILDING. TWENTIETH FLOOR
THOMAS P. LEGGETT
JOHN DEWEY WATSON
SILLILITTLE
ROCK. ARKANSAS 7??07
LEWIS MATHIS
OSERT V. LIGHT
WILLIAM H. SUTTON
TELEVHONE
HERMANN IVESTER
PAUL B. BENHAM. III
JERRY T. LIGHT
50 1376.2011
OVERTON S. ANDERSON
BOYCE R. LOVE
DAVID A. ORSINI
GEORGE E. PIKE. JR.
LARRY W. BUfl KS
JAMES W. MOORE
WILLIAM L. PATTON, JR.
A. WYCKLIFF NISBET, .11+
JAMES E. HARRIS
BYRON M. EISEMAN, JR.
JOE 0. BELL
March 24, 1978
March
JOSEPH E. KILPATRICK, JR
L
J. PHILLIP MALCOM
MICHAEL G. THOMPSON
DERRELL HOLLAND
GJAMES
ROSS SMITH
JAMES T. SIP. PAON
JAME C. ECHOES
JOHN
IL
MEREDITH P. CATLETT
JAMES A. BUTTRY
FREDERICK S. URSERY
COUNSEL
H. T. LARZELERE. JR
WILLIAM J. SMITH
JOHN T. WILLIAMS
Ms. Kitty Allard Mr. Jerry S. Pierce
Municipal Bond Group First Southwest Company
Republic National Bank of Dallas Mercantile Bank Building
Republic National Bank Building Dallas, Texas 75201
Dallas, Texas 75221
Ms. Darlene Westbrook
City Clerk
City Hall
Fayetteville, Arkansas 72701
Re: City of Fayetteville, Arkansas Waterworks
and Sewer Revenue Bonds, Series 1966,
dated September 1, 1966
City of Fayetteville, Arkansas Waterworks
and Sewer Revenue Bonds, Series 1969,
dated February 1, 1969
Dear Ms. Allard, Mr. Pierce and Darlene:
I am enclosing a new Index for each of the above bond issues,
with the supplemental papers to be inserted at the back of
the transcript furnished when the bonds were initially issued.
Sincerely yours,
(Mrs.) Jo Ann Hancock
/nr
Enc.
• TO: City Manager Gerald G. Fox
FROM: City Controller Albert J. Jones
SUBJECT: Bond Proposal of the Republic National Bank of Dallas
DATE: December 18, 1968
In accordance with your request of December 17, I have contacted the members of
the Board of Directors listed below regarding the bond proposal submitted by
the Republic National Bank of Dallas.
Acceptance or rejection was to be based on clarification of the call provision
and the interest rate to be received by the City on the initial investment
schedule.
Possible Call Provision
The bonds will be callable in inverse numerical order in part at par plus
accrued interest on any interest payment date from excess revenues; and callable
in whole only at par plus accrued interest from funds from any source on any
interest payment date.
• Investment Schedule
Amount Bank Rate Maturity Date Bank
250,000 5 1/2% 6-1-69 $ 4,578.75
250,000 5 1/2% 10-1-69 9,157.50
250,000 5 1/4% 2-1-70 13,125.00
190,000 5 1/4% 6-1-70 13,296.68
940,000 $40,157.93
CJ
Proposed
City 5 1/2% Difference
$ 4,578.75 -0-
9,157.50 -0-
13,750.00 625.00
13,898.50 601.82
41,384.75 $ 1,226.82
The following Board Members were contacted by phone and though each one expressed
dissatisfaction with the interest rate to be received on the City's initial invest-
ment, each one felt that the proposal of the Republic National Bank was still in the
best interest of the City.
Don Trumbo
Arnold Christie
Sylvia Swartz
Dr. Garland Melton, Jr.
James T. Kerlin
Dale Dunn
.-Ot. 2)' 9 .s -A---. a .....t q a. n A ,a t...Qr' 2 P .M i2o i
it A It.
December 13, 1968
lie
•
Honorable Mayor and
Board of. Directors
City of Fayetteville, Arkansas
Gentlemen:
It is our understanding that the City, of Fayetteville is contemplating
the issuance of approximately.$940,000 Water and Sewer Revenue
Bonds. Proceeds are to be used for the extension and improvement
of the Water and Sewer system. In connection with the issuance of
this proposed debt we offer the following proposal:
1. We will buy from you and you will sell to us your
legally. issued Water and Sewer Revenue bonds at
par plus accrued interest. This issue will rank on
an equal parity.with thecurrently outstanding bonds
as provided for by the parity clause in Resolution
• 7-63 of April 8, 1963,.and this will be substantiated
as provided for in that resolution.
2. . We will provide you at the proper time with a sched-
ule of maturities of an issue of approximately $940,000.
3. The bonds will bear interest payable semi-annually
from date of issuance at the rates set forth below:
51/2% for the first six months after date
5 3/4%I for the next six months
• 6% thereafter
The date of issuance, the semi-annual interest pay-
i
• merit date and the annual principal date will be
• determined at the proper time. The bonds.: will not
be subject to conversion.
4. The bonds will be callable in whole only from funds
• from any source on any interest payment date after
• issuance at parc t l't HLSo Irn2 cnl(AbZ l V INn1c25E
?J&sn QgtAL oniDc2 j.'-' i'ARr pT '?AR pt ' -s ACc f(VED iMTCReyT ON
5. The City agrees to designate the Republic National.., PM'! 'LN z.2g;T
dAie. 4tw. ICce .S
Bank of Dallas as the Paying Agent on this issue so geueni0C'y,
long as any of these bonds remain outstanding irre-
gardless of any refunding.
-
-2-
•
•
•
•.
6. The City agrees to• raise the Reserve Fund in the
amount of $60.000. The method of increasing this
fund and other aspects of the Funds will be further
defined in the Ordinance authorizing this Issuance.
7. We agree to pay, all expenses incident to the legal
issuance of these bonds including the following:
A. . Printing of the Bonds
B. Attorney's Fees
C. Travel and Communication
It is understood that the City will pay.necessary publi-
cation and any, litigation costs.
8.: .As re-imbursement for expenses incurred, the City
I
agrees to pay us upon delivery of the bonds a cash
fee of $7, 500 .
.9. This offer is subject to the unqualified approving
opinions of Messrs. Dumas, Huguenin and Booth -
man, Attorneys, Dallas, Texas, and Messrs. Smith,
Williams, Friday. and Bowen, Attorneys, Little Rock,
Arkansas.
This agreement is subject to acceptance or rejection on or. before
December 18, 1968
Respectfully sub pitted,
Republic National Bank of Dallas
By'rit/
ACCEPTANCE
Accepted by the Board of Directors of the City of Fayetteville,
Arkansas this the day of De cn\s Pte. 1968. L
Mayor
Attest
City C1 Ci anager
August 22, 1966
4r. Gerald Fox
City Manager
Fayetteville, Arkansas
Re: Proposed $4,300,000 City of Fayetteville,
Arkansas Waterworks and Sewer Revenue
Bonds dated September 1, 1966
Dear Sir:
As you know, T. J. Raney & Sons, Little Rock, Arkansas (called "Raney") has heretofore
entered into a financial consultant contract with the City of Fayetteville, Arkansas
(called "City"), a copy of which is attached hereto and made a part hereof and referred
to herein as the "existing contract".
The City proposes to issuel$4,300,000 of Waterworks and Sewer Revenue Bonds dated
September 1, 1966 (called ''initial bonds"). Raney has worked with the City in arranging
for the sale of the initial bonds to, and in wording the terms of the purchase contract
with Republic National Bank of Dallas, Dallas, Texas (called "Republic"). It is con-
templated that the initiallbonds may be refunded and it is contemplated that additional
bonds may be issued to complete the construction of the proposed improvements to the
Waterworks and Sewer System (called "additional bonds"), either in addition to the
initial bonds or in connection with the refunding of the initial bonds, and that any
additional bonds may be refunded. The overall transaction is such that the existing
•ontract should be modified and continued and that is the purpose of this letter
greement.
Therefore, in consideration of the work heretofore performed and advice heretofore given
to the City by Raney in connection with the sale of the bonds, of the mutual covenants and
undertakings of the parties, and for other good and valuable consideration, the receipt of
which is hereby acknowledged by the parties hereto, Raney and the City agree as follows:
1. The City shall pay Raney at the time of the delivery of the initial bonds to Republic
a fee of $7.00 per thousand in principal amount of initial bonds, less the $19,325.00
being paid by the City to Republic for expenses.
2. If any refunding bondslare issued to refund the initial bonds, Raney will be paid a
fee of $7.00 per thousand of principal amount of the refunding bonds issued, less what
Raney is paid under Paragraph 1 above.
3. A. If the additional bonds are sold and delivered to Republic pursuant to the terms
of the purchase contract between the bank and the city, the city will pay all costs and
Raney shall be paid no fees and shall have no obligations on expenses.
B. If, on the other hand, the additional bonds are sold and delivered to a purchaser
other than Republic, Raneylshall be paid a fee of five dollars ($5.00) per thousand of
the principal amount of the additional bonds.
4. A. If any refunding bonds are issued to refund additional bonds sold to Republic,
Raney shall be paid a fee of five dollars ($5.00) per thousand of principal amount of
*he refunding bonds issuedto refund additional bonds.
B. If any refunding bonds are issued to refund additional bonds sold to another, Raney
shall not be paid any fee in connection with such refunding bonds and shall have no obli-
gation with reference to expenses.
Mr. Gerald Fox
August 22
• Page 2
5. In connection with
following expenses in
issued:
Ca
(c)
(d)
Cr)
payment with Raney under two, 3B, or 4A, Raney is to pay the
action with the additional bonds or refunding bonds then being
of the bonds;
s fee;
Bond approving attorneys' fee;
Newspaper publication costs of all ordinances
and all resolutions necessary to the issuance
of the proposed water and sewer bonds;
Newspaper publication costs of the Notice of Sale; and
Publication costs of advertising the bonds for sale in
THE DAILY BOND BUYER, the leading trade paper for
municipal bond dealers.
I
6. The existing contract; as modified hereby, is continued in full force and effect. It
is understood that the Contract between Raney and the City applies to Waterworks and Sewer
Revenue Bonds issued to accomplish the construction of the proposed improvements to the
Waterworks and Sewer System (as set out in the 1965 Engineering Reports of John E. Mahaffey
& Associates, Inc. and L.,M..McGoodwin, Consulting Engineers, now on file with the City
Clerk, Fayetteville, Arkansas) and shall include the $4,300,000 sold to Republic, additional
bonds issued to complete the construction of the proposed improvements, and bonds issued
• to refund the initial bonds and any additional bonds.
If the above is satisfactory, please sign below in the indicated space and this will con-
stitute an agreement between the City and Raney, fully binding in accordance with its
terms.
Yours very truly,
T. J. RANEY & SONS
BY 4fl2 [?a,y
ACCEPTED AND AGREED to this AL day of 1966.
CITY OF F , ARKANSAS
BY
ATTEST:
(SEAL)
Mr. Albert J. Jones
City Comptroller
City Administration .Building
Fayetteville, Arkansas
Dear Mr. Jones:
In compliance with your letter dated August 21, 1964, contained in the
Yinancial Report, we would like to submit to the City of Fayetteville an
outline of services that we will perform acting as the Financial Advisor
to the City of Fayetteville in hansdling proceedings in the issuance of
its proposed bond issue.
• There follows a detailed description of the services which we will perform
in our capacity of Financial Advisor to the City of Fayetteville:
I. We will direct and coordinate the entire prcgnmu of contemplated
financing which will include the ru!,equent printing, issuance, approval,
sale and delivery of the proposed bonds, and the investment of funds that
are :sot immediately used.
U. We will male a study of the debt structure of your present Revenue Fond
indebtedness, and on the basis of this study will advise and recommend
for approval a plan of financing to cover the proposed bonds. This plan
would include three possibilities:
(1) General Obligation Fonda icwued under Amendment 13 to the Constitution
of the State of Arkansas (which in all probability will not be recom-
mended).
(2) Revenue Bonds, which type of financing will be utilized after a rate
study has been made. The amount of first lien bonds to be issued or
first end second lien bonds to be issued will be determined on and
after receiving a written opinion from an independent certified publi
accountant that the rates will produce not revenues in either the
fiscal year or the 12 month period immediately preceding the month i.
which it is proposed to issue such additional bonds, to provide a
133 1/3% of the ma:i:nm sums). debt service charges required to servi;-^
the said bonds herein authorized to be issued and then outstanding, and
• to maintain the said Revenue Ftmd continuously reserved and Replacement
F1snd herein provided.
Mr. Albert J. Jones - 2 - September 4, 1964
•
(3) V. will casplete and personally present e.n application to the Raisin..
I. Hens Finance Agency of the Comity Facilities Administration for
a federal grant under the Accellerated Public Works Program. The
Community Facilities Administration is authorized to make grants to
assist in the initiation of public works pro4ects for which federal
grants have not previously been available. (However, it is our
understanding that at the present time l yetteville is not eligible
for such a grant, nor does the government have funds available.)
The necessary steps will have to be taken so that Fayetteville will
beast eligible at the tine that such funds are available. We will
also assist Mr. L. M, McGoodvin, Engineer, in submitting an application
to tLs Health, Education and Welfare Department for funds under Public
Law Jo. 660 for those portions of your sever project that are eligible
to receive these funds.
in. We viii prepare a detailed bond schedule of your currently outstanding water
and sewer bonds by maturities and annual principal and interest requirements,
and a projection of requirements on the various bonds that may be issued now
or over a five year period.
IV. We will submit various maturity schedules on the presently contemplated
issues, and a plan including other terms and conditions such as options c
• prior payment, which viii, in our opinion, result in the issuance of the
bonds under terms and conditions most advantageous to the City of Fbyettevil1
with a minimum effective interest rate.
V. We will work with and assist the City of Fayetteville and its enginer.,y
furnishing information as to the amount and arrangement of funds which will
be feasible now or over a period of five years. Your letter indicates that
the City viii issue a total of $5,000,000 bonds during the period 1964 through
1968. I would like to state that the amount could be more than $5,000,000 in
that period of time if the City so desires. However, until we have rade a
thorough study, I would not be able to give you a definite amount.
VI. We agree to maws the services of Mr. Herschel Friday with the fisn of
Bmith, WiLUssw, iriApr & Bonn, recognized municipal bond attorneys,
ILttle Aoc1y Atlenses, and roller his direction to supervise, assist and advic-
os on steps esssarr to be tsk t for the legal issuance of the proposed bonds.
The services of Mr. YPiday than include his unqualified legal approving
opinion as to the legality of the bonds.
.•
.. .. n.. ....o.: . ., . . .: II I.
..
VIII. We will advise the City of Fayetteville of current market conditions, forth-
o'issu
esnd aother general information and economic data which might
• nonMllly be e,cted to influence interest rates or bidding conditions so that
a favorable date for the sale of the bonds may be set.
Mr. Albert J. Jones . 3 - Septeabsr 4 1964
U. We viii reccmasend the form, itt4us at rates, amounts, maturities and type E;
of bonds to be issued in order that the bonds will be acceptable to the
prospective purchasers, an8 issued to the beat financial interest of the
City of ftyetteville.
X. We rill have Mr. Friday prepccro an official Notice of Bale. We will
prepare a prospectu=s containing financial data and other inform tion of the
sat=* and to the extent orlinarily required by municipal security dealers
in bidding on bonds of the tj contemplated and proper bid fora] all of
which is to be supplied in sufficient nuabers for mailing to lists of
prospective bidders.
XI. We agree to perform other services and aamnae such other exp�naas an may
be watual),y agreed upon and determined advisable under a specific contrac'i
to be acted upon at a later date.
Ne agree
to
aatwac
our own expensos,
such as trawl,
motel, telapuone, postage,
etc.,
which
msy be
incurred by us in
fulfilling our
contract.
... u . • _� ... . ;. .. .
Please call mn collect about any quastions you may have.
Yours very truly,
T. J. RAMY & SONS
JIG/rh
Honorable htyor and City Council
City of P yyetteville
Fayetteville, Arkansas
Gentlemen:
In our proposal dated September b, 1964, addressed to Hr. Albert J. Jones,
City Comptroller, said proposal to become a part of this contract, we out-
lined the services that we will perform acting for the City of Fayetteville
in the capacity of financial advisor. This proposal, with the exception of
the amount of our fee and the expenses we are to assume,was accepted by the
City of E yetteville on September 15, 1964.
•
•
In accordance with said proposal, we hereby agree to act as your financial
advisor and to perform all services outlined therein; and, we agree to pay
the following ercyenseat (1) ?rintini of the bonds; (2) Trustee's fee;
(3) Jbad approving attorneys' fee; (4) Newspaper publication costs of
all ordinances and all resointions necessary to the issuance of the proposed
eater and sewer bonds; (5) Newspaper publication costs of the Notice of
Sale; (6) Publication costs of advertising the bonds for sale in THE DAIL!
H0ND JTER, the leading trade paper for municipal bond dealers.
In consideration of our agreeing to the terms as skated herein, and to the
teats of the proposal described in paragraph o this contract, you agree
to pay us for our services a fee of $ 7 nd. If for any reason
the bonds are not issued, the City of lfayettev be under no obliga-
tion to us for any expenses we may have incurred.
(�� Yours very truly,
II r
y Clerk
1964:
T. J. RATE! EA SONS
% (Jttd
Dallas, Texas
. / / / , 1963
Honorable Mayor and City Council
City of Fayetteville
Fayetteville, Arkansas
Gentlemen:
In connection with the outstanding principal balance of $5,313,000 of
your Waterworks and Sewer Refunding and Construction Revenue Bonds dated June 1,
1958, callable for prior payment at par plus accrued interest December 1, 1968,
or any interest paying date thereafter, we make you this proposal:
1. Subject to your immediately and officially calling for payment as
of December 1, 1968, the $4,624,000 principal amount presently maturing 1969 through
1992, inclusive, we agree to buy and you agree to sell to us at par plus accrued
interest a Waterworks and Sewer Revenue Refunding issue in the total principal
amount of $5,313,000 maturing serially and bearing interest at the rates as in-
dicated by Schedule No. 2 attached hereto and made a part hereof, which reflects
a net effective rate to the City of 3.63886%, such Refunding issue to be dated
April 1, 1963.
2. Simultaneously with delivery to us and our payment for such
Refunding Bonds, the City agrees to invest, or cause to be invested, the proceeds
therefrom in accordance with Schedule No. 4 attached hereto and made a part hereof.
• 3. The City will authorize application of interest proceeds and cash
realized on maturity of such list of investments to retirement of principal and
interest maturities of the June 1, 1958 outstanding issue and to payment for and
cancellation of the $4,624,000 principal amount of the June 1, 1958 outstanding
issue called for payment as of December 1, 1968, the detail of amounts being
reflected in Schedule No. 3 attached hereto and made a part hereof.
4. By correlating Schedule No. 1, attached hereto and made a part
hereof, reflecting principal and interest requirements of the June 1, 1958 issue
with Schedule No. 2 reflecting the requirements of the proposed refunding issue,
such results in a recapitulation of savings to the City as shown by Schedule No. 5
attached hereto and made a part hereof, which indicates a net savings to the City
of $469,778.63.
5. It is understood that the City will provide cash funds needed as
indicated by Schedule 5, to be applied as follows:
Escrow Loss $ 29,389.87
Expense Reimbursement to the Undersigned 42,504.00
Interest due June 1, 1963 on the
June 1, 1958 Revenue Bonds 97.012.50
Total Cash Requirement $ 168,906.37
6. Inasmuch as the City has unencumbered
.amount in the Waterworks and Sewer accounts to meet
recited in Paragraph No. 5 above, it is agreed that
in existence and available for the purpose will be
issue:
a. Bond and Interest Reserve
cash on hand in a sufficient
the cash requirements as
the following amounts already
transferred to the Refunding
$ 300,000.00
b. Contingency Reserve 100,000.00
c. Depreciation and Replacement Fund 50,000.00
. 7. Investments in United States of America obligations used in all
computations included herein are figured at approximately 1/8 of 17. higher cost
than current market in order to attempt to allow for market fluctuation occurring
from this date to expected date of consummation of this transaction anticipated
immediately after April 1, 1963, which could result in an increase or decrease
in the net savings to the City in this transaction.
8. It is agreed that the expense reimbursement to the undersigned
referred to in Paragraph No. 5 above is to be paid simultaneously with our pay-
ment for the proposed Refunding Bonds.
9. You agree to employ the firm of Rose, Meek, House, Barron, Nash
and Williamson, Attorneys, Little Rock, Arkansas, to prepare the necessary
resolution and other documentation incident and necessary to the authorizatic,
issuance and delivery of such proposed Refunding Bonds, to be accompanied by
their unqualified approving legal opinion, with our purchase of such proposed
Refunding Bonds subject to this unqualified approving legal opinion, the fee and
expenses of such firm to be paid by us.
10.
In addition
to expense
to be assumed
by us, as
mentioned in
Paragraph No.
9 above, we
will assume
and pay the
following
expenses:
a. Printing of the bonds;
b. Trustee's fees in connection with custody of investments
and application of proceeds to the retirement of and pay-
ment for the maturities and bonds called for payment of
the June 1, 1958 issue;
c. Bank service charges as approved by us in connection
with issuance and delivery of the proposed Refunding
• Bonds;
d. Travel, communications and out-of-pocket expense incurred
by us necessary to the completion of this transaction.
11. It is mutually agreed that the following revisions in the resolution
authorizing the proposed Refunding Bonds will contain modifications as opposed to
existing covenants in the ordinance pertaining to the 1958 Series of Waterworks and
Sewer Revenue Bonds as follows:
a. Parity bonds may be issued to the extent desired and
possible on the basis of net Waterworks and Sewer earnings
being equal to one and one-third (1 1/3) times the average
annual principal and intarest requirement for a preceding
twelve months period as opposed to the present necessity
of one and one-half (1 1/2) times earnings for two of three
preceding fiscal years immediately prior to the issuance of
additional bonds.
b. Such resolution will release the existing first mortgage and
indenture of trust pertaining to the Waterworks and Sewer
Systems and, in lieu thereof, security of the bonds will be
strictly that of a pledge of the net revenues of the
Systems.
• c. The City will covenant in such resolution not to enter into
any long-term water purchase or other contracts which will
result in the reduction of net earnings below an amount
equal to one and one-third (1 1/3) times the average annual
principal and interest requirement of existing indebtedness.
d. In view of release of the first mortgage on the Systems and
removal of the trusteeship, the City will continue to be
responsible for only fees appertaining to the charges of a
• paying agency bank in the paying of bonds and interest
coupons on the Refunding issue.
12. We agree to direct and coordinate the entire program of financing
herein contemplated and to assume and pay all expenses above enumerated; however,
it is specifically understood and agreed that this obligation on our part shall
not cover the expenses of any litigation should such arise.
- 2 -
13. This agreement shall be terminated by delivery to us of the proposed
Refunding Bonds covered hereby; however, if for any reason bonds have not been de-
livered within sixty days from date hereof, this agreement may be extended by
mutual consent. If for any reason this agreement is not consummated, the City will
have no financial obligation to us, or for any expenses which we will have incurred.
14. Bonds maturing 19 to 19_, inclusive, are to be o,ptional
April 1, 19_, or any interest paying date thereafter, at
15. We agree to cooperate with the bond attorneys as specified in
Paragraph No. 9 above, and the proper City Officials in all things necessary to
accomplish this program as set out herein, and you agree to cause the proper
City Officials to execute all necessary documents in this connection.
This proposal is submitted in triplicate and when accepted by you will
constitute the entire agreement between your City and the undersigned for the
purposes and considerations herein specified. Your acceptance will be indicated
by the signature of your Mayor, attested by your City Secretary, on all copies
and returning two executed copies to us.
• Respectfully submitted,
RAUSCNER, PIERCE & CO., INC.
By
Authorized Representative
A C C E P T A N C E
ACCEPTED, pursuant to resolution adopted by the City Council of the
City of Fayetteville, Arkansas, on this the % t4 day of %%ZOtit.t
1963.
1[ayor
ATTEST:
Y
• SCHEDULE NO. 1
CITY OF FAYETTEVILLE, ARKANSAS
PRINCIPAL AND INTEREST REQUIREMENTS ON
$5,313,000 OUTSTANDING WATERWORKS & SEWER REFUNDING AND CONSTRUCTION REVENUE BONDS
INTEREST
YEAR RATE PRINCIPAL INTEREST TOTAL
1963 3% $ 106,000.00 $ 97,017.50 $ 203,017.50
1964 3% 110,000.00 190,855.00 300,855.00
1965 37 113,000.00 187,555.00 300,555.00
1966 3% 116,000.00 184,165.00 300,165.00
1967 3% 120,000.00 180,685.00 300,685.00
1968 3% 124,000.00 177,085.00 301,085.00
1969 3 1'/4% 128,000.00 173,365.00 301,365.00
1970 3 1/4% 132,000.00 169,205.00 301,205.00
1971 3 1/4% 137,000.00 164,915.00 301,915.00
1972 3 1/4% 141,000.00 160,462.50 301,462,50
1973 3 1/4% 146,000.00 155,880.00 301,880.00
1974 3 1/2% 149,000.00 151,135.00 300,135.00
1975 3 1/2% 154,000,00 145,920.00 299,920.00
1976 3 1/2% 159,000.00 140,530.00 299,530.00
1977 3 1/2% 165,000.00 134,965,00 299,965.00
•1978 3 3/4% 170,000.00 129,190.00 299,190,00
1979 3 3/4% 176,000.00 122,815.00 298,815.00
1980 3 3/4% 182,000.00 116,215.00 298,215.00
1981 3 3/4/, 190,000.00 109,390.00 299,390.00
1982 3 3/4% 197,000.00 102,265.00 299,265.00
1983 3 3/4% 205,000.00 94,877.50 299,877,50
1984 3 3/4% 212,000.00 87,190.00 299,190,00
1985 4% 218,000.00 79,240.00 297,240.00
1986 4% 227,000.00 70,520.00 297,520,00
1987 4% 236,000.00 61,440.00 297,440,00
1988 47 246,000.00 52,000.00 298,000.00
1989 4% 257,000.00 42,160.00 299,160.00
1990 4% 267,000.00 31,880.00 298,880.00
1991 4% 277,000.00 21,200.00 298,200.00
1992 4% 253,000.00 10,120.00 263,120,00
$5,313,000.00 $3,544,242.50 $8,857,242.50
Average Annual Requirement (1964 - 1991) -------- $ 299,682.00
•
•
I.
SCHEDULE NO. 2
CITY OF FAYETTEVILLE, ARKANSAS
PRINCIPAL AND INTEREST REQUIREMENTS ON
PROPOSED WATERWORKS AND SEWER REVENUE REFUNDING BONDS
CI
•
•
PRINCIPAL
INTEREST *
YEARS
DUE: 4-1
DUE: 4-1 AND 10-1
TOTAL
1964
$ 203,000.00
$ 186,315.00
$ 389,315.00
1965
210,000.00
180,225.00
390,225.00
1966
215,000.00
173,925.00
388,925.00
1967
130,000.00
167,475.00
297,475.00
1968
135,000.00
163,575.00
298,575.00
1969
135,000.00
159,525.00
294,525.00
1970
140,000.00
155,137.50
295,137.50
1971
145,000.00
150,587.50
295,587.50
1972
150,000.00
145,875.00
295,875.00
1973
155,000.00
141,000.00
296,000.00
1974
160,000.00
135,962.50
295,962.50
1975
165,000.00
130,362.50
295,362.50
1976
175,000.00
124,587.50
299,587.50
1977
180,000.00
118,462.50
298,462.50
1978
185,000.00
112,162.50
297,162.50
1979
190,000.00
105,225.00
295,225.00
1980
200,000.00
98,100.00
298,100.00
1981
205,000.00
90,600.00
295,600.00
1982
215,000.00
82,912.50
297,912.50
1983
220,000.00
74,850,00
294,850.00
1984
230,000.00
66,600.00
296,600,00
1985
240,000.00
58,090.00
298,090.00
1986
250,000.00
49,210.00
299,210.00
1987
255,000.00
39,960.00
294,960,00
1988
265,000.00
30,525.00
295,525.00
1989
275,000.00
20,720.00
295,720.00
1990
285,000.00
10,545.00
295,545.00
$ 5,313,000.00
$ 2,972,515.00
(*) INTEREST RATES
$ 8,285,515.00
PAR VALUE:
37,
1964 -
1968 $
893,000
3 1/47.
1969 -
1973
725,000
3 1/27,
1974 -
1977
675,000
3 3/47,
1978 -
1983
1,215,000
3.707,
1984 -
1990
1,805,000
S.
CITY OF FAYETTEVILLE, ARKANSAS
PRINCIPAL AND INTEREST REQUIREMENTS
ON OUTSTANDING BONDS TO DECEMBER 1, 1968 PAR CALL DATE
1963
December
1964
June
December
1965
June
December
1966
June
December
1967
June
December
1968
June
December
C1
•
C1
PRINCIPAL
$ 106,000.00
110,000.00
113,000.00
116,000.00
120,000.00
4,748,000.00
$ 97,017.50
95,427.50
95,427.50
93,777.50
93,777.50
92,082.50
92,082.50
90,342.50
90,342.50
88,542.50
88,542.50
$5,313,000.00 $1,017,362.50
SCHEDULE NO. 3
TOTAL
$ 203,017.50
95,427.50
205,427.50
93,777.50
206,777.50
92,082.50
208,082.50
90,342.50
210,342.50
88,542.50
4,836,542.50
$6,330,362.50
(*) Includes $4,624,000 called for payment.
d
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S.
SCHEDULE NO. 5
LJ
TOTAL INTEREST COST ON
TOTAL INTEREST COST ON
TOTAL INTEREST SA
BALANCE IN ESCROW FUND
CITY OF FAYETTEVILLE, ARKANSAS
RECAPITULATION OF SAVINGS
UNDER REFUNDING PLAN
OUTSTANDING BONDS TO MATURITY
PROPOSED REFUNDING BONDS
DINGS
12-1-1968
LESS: ESCROW LOSS $ 29,389.87
EXPENSE REIMBURSEMENT 42,504.00
INTEREST LOSS (2 MONTHS ON REFUNDING BONDS) 31,052.50
NET SAVINGS TO CITY
•ASH ON HAND (PER BOND COVENANTS):
INTEREST (4 MONTHS)
PRINCIPAL
INTEREST PAYMENT DUE 6-1-1963
CASH BALANCE
TOTAL CASH REQUIRED:
ESCROW LOSS
EXPENSE REIMBURSEMENT
INTEREST DUE 6-1-1963
•
0
$ 3,544,242.50
2,972,515.00
$ 571,727.50
997.50
$ 572,725.00
102,946.37
$ 469,778,63
$ 64,678.33
35,333.33
$ 100,011.66
97,017.50
$ 2,994.16
$ 29,389.87
42,504.00
97,012.50
$ 168,906.37
. • -
Form Do:. PROPOSAL FOR WATER SERVICE
(TRIPLICATE)
October 1O- ---- 1949
In accordance with the advertisement as indicated on the reverse hereof. and subject to all the conditions
of same, the undersigned hereby propose to furnish water to the U. S- ___--__P_oft- Offic-e_-B i 1 ding____-____
------ Building at --Fayetteville:_ Arkansas ____________
-----------------------------------------
----------------------
,ys-o
at the following rates during the fiscal year ending June 30, tS12; and thereafter until further notice:
1. Water rates:
Ordinance No. 917
Section 1 That the following be fixed for the rates to be charged for Sewer
Service by the Sewer System of the City so extended and improved, which
• the Council finds are reasonable and -:necessary rates to1be charged.
$1.50 per month for each single story business house having no basement
connected with and served by the System.
$0.75 per month for each basement and each floor of a business house in
excess of one floor connected with and served by' the System.
The rate on u.S.Poatoffice Building will be
„.3.00 per month
2. See paragraph 2 on reverse hereof. Are above rates to be computed on a monthly, quarterly, semiannual,
orannual basis? ------}kcatbly-------------------------------------------------------------------------------------------------------------------
3. Minimum charge, amount of, if any: None
• 4. Meter rent, if any: None
5. Discount, amount of: None
6. Discount period: None
7. Any stipulation in conflict with paragraph 5 on the reverse hereof, as contained in the above proposal, or
in any supplemental form, rules, or regulations hereto attached or submitted as part hereof, is hereby
expressly waived.
THIS PROPOSAL
MUST BE EXECUTED AND FOR-
WARDED IN QUADRUPLICATE
Name of city or company: City of Fayettevillee,, Arkansas-
Signature (see note): - x'71. -----------------
Powell M. Rhea
Official title: ----Mayor_-__------------------__----_--------_-----
NOTE.—Autographle signature is here required of city official or officer of company who is duly authorized
to ececvte this proposal. m —corm
Accepted November 4, 1949 r
r F-
The eonlneI, to pirforming the 04 regohdd 6i Ihh eenheel,
sell nd discriminate ag3msl a„y ei:' itt cr appll:asl for empioymnl
1z -22:s of race, creed, &6'Y' or r..;k '.1 origin. The contractor
shall include in all subcontracts & provision imposing a lb Alk 1ka
0 subconhaclae.
SPECIFICATIONS FOR SERVICE
U.S. ___Poat._Oyffinu__Building____________________________________
----------------------------
Office of the Postmaster,__._QtltQQBr__S--------------------, 19.43
SEALED PROPOSALS will be received at this office until 2 o'clock p.m. -____0ntoher__l5-_________________ 194A
.emu--� .
for furnishing -water in accordance with the following conditions for t]}etiU�5. �_____,___,,;__ ________- _._.___
---------------------PQII f Q---------------------------------- Building -at' ---Eayettexilla,_Arkansas_------__________
INSTRUCTIONS AND CONDITIONS
1. Proposals should be made on the back of this form. Although it is preferred that the rates, dis-
counts, etc., be entered complete herein, supplementary forms, however, may be attached hereto in quadru-
plicate and referred to in the proposal.
2. It is understood that the rates submitted are on a monthly basis unless otherwise expressly stated in
the proposal.
•3. It is understood that the rates submitted in accordance with this proposal shall be, in the case of
public utilities, subject to any changes, increases, or decreases ordered or approved by the State Public Service
or Utilities Commission, or which may be required under an amended franchise, or as may be decided by the
courts; and in the case of municipalities subject to any changes, increases, or decreases to the public during
the term of the contract, it being understood that in no case whatsoever, either in the case of public utilities or
in the case of municipalities, shall the rates charged the Government exceed the rates to the public. It is
understood that new schedules of rates in accordance with the terms of this paragraph shall automatically
supersede the rates herein offered from the date such new rates become effective, copies of the new schedules of
rates, showing the dates the same became effective, to be filed with the Department. In the event, however, of
the rates herein offered being superseded during the term of the contract by higher rates, the right is reserved
to cancel the contract, if deemed to the best interests of the Department.
4.
If the service offered
under
the terms of this proposal is not now being furnished
for the
building
named,
the conditions under
which
service conddetions and meters will
be installed must be
stated,
and sup-
plemental proposal submitted covering the cost, if any, occasioned to the Department thereby.
5. As the Government is prohibited by law from agreeing to any of the following stipulations, proposals
shall be made with the understanding that all such stipulations are waived:
(a) Payment for damage to company's meter and appliances cannot be made,, no appropriation being
available. Due diligence will be exercised to protect the company's property.
(b) Payment of a deposit cannot be made.
(c) Advance payment for service of any kind cannot be made.
(d) Payment for testing or repairing company's meter cannot be made, no appropriation being available.
•(e) If, due to fire or other casualty, the building is rendered unfit for occupancy, or if for any other reason
the building is vacated, payment of a minimum charge or a flat rate can only be made for such portion of
the year as the building is occupied and the service is rendered.
(f) The property of the United States is not subject to liens, and no officer of the Government has
authority to consent thereto by contract or otherwise.
(g) Attention is called to the fact that the sites of Federal buildings are extraterritorial, the States
having ceded jurisdiction over the same by virtue of which they are exempted from all State, county, and
municipal ordinances, taxes, assessments, or regulations, and no official of the Government is authorized to
consent, by agreement or otherwise, to anything that is inconsistent therewith. The consent of municipalities
or water companies is not required to install or remove fixtures, or to change the number or type of fixtures
installed. The Postmaster will, if desired, notify the bidder of any change in the number or type of fixtures
installed.
6. Unless otherwise specified by the bidder, it is understood and agreed that only such unmanufactured
articles, materials, and supplies as have been mined or produced in the United States, and only such manu-
factured articles, materials, and supplies as have been manufactured in the United States substantially all
from articles, materials, or supplies mined, produced, or manufactured, as the case may be, in the United
States, shall be delivered pursuant to a contract awarded as a result of this bid. The term "United States"
includes the United States and any place subject to the jurisdiction thereof.
PAnnNTs.—The contractor shall hold and save the Government, its officers, agents, servants, and em-
ployees harmless from liability of any nature or kind, including costs and expenses, for or on account of any
patented or unpatented invention, article, or appliance manufactured or used in the performance of this
contract, unless otherwise specifically stipulated in this contract.
U.S. •0Vt•N UT PRINTING olllc, 10107.6
THE COMMERCIAL NATIONAL BANK, 81.25
OF LITTLE ROCK, ARKANSAS ,y - i- SSii
-We have received your letters as described below. with stated enclosures.
'4 y
•
THE COMMERCIAL N
BOND TRUSTEE DE
LITTLE ROCK/ARKANSAS
Waterworks Revenue Bonds
surer /
Fayetteville, Arkansas
,BANK
On or before MAY 20, 1949 please remi to
THE COMMERCIAL NATIONAL BANK/LITTLE ROCK, ARKANSAS
Covering the following maturities on your bonded indebtedness:
$827,000 24-3% Issue dated 12-1-48
:.,,1'
Coupons Numbered 1 , detached from $827,000
41onds Numbered 1/827 Due 6-1-49 $11, 895.00
29.74
Paying Bank's charges (1/4 of 1% on coupons and I/s of loo on bonds —minimum fee $1.00) $ -
Add an amount to cover Exchange
where remittance check is not payable
at PAR.__—_$
TOTAL
$11,924.74
NOTE: Warrants issued for the payment
of School Bond Indebtedness must show the
above information on
their face or be
accompanied with a
copy of this statement when presented to the
County Treasurer.
Remittance should be in Little Rock Exchange
or by Warrant or Check payable at PAR. If a
Non Par remittance Is made the amount of
the exchange charge must be added.
• %4,300,000
CITY OF FAYETTEVILLE, ARKANSAS
WATERWORKS AND SEWER REVENUE BONDS,
SERIES 1966, DATED SEPTEMBER 1, 1966
Notice of and Consent to Meeting of Board of Directors . . . 1
Excerpts from Mintues of Meeting of Board of Directors
August 8, 1966 . . . . . . . . . . . . . . . . . . 2
Ordinance No. 1508 (Bond Ordinance) . . . . . . . . . . . . 6
Proof of Publication - Ordinance No. 1508 . . . . . . . . . 44
• Excerpts from Minutes of Meeting of Board of Directors
August 22, 1966 45
Certificate of City Clerk 46
Certificate of Incumbency of Officers, Absence of
Litigation and Identification of Signatures . . . . 47
Non -Litigation Certificate 50
Letter of Instructions 51
Resolution . . . . . 52
Certificate of Mayor re Facsimile Signature . . . . . . . . 53
Exchange Bonds No. R-1 to R-22, Inclusive
Excerpts from Minutes of Meeting of Board of Directors
May 3, 1977 . . . . . 54
Resolution No. 34-77 . . . . . 57
Certificate of Incumbency of Officers, Absence of
Litigation and Identification of Signatures . . . . 61
Delivery Instructions 64
Specimen Exchange Bond 65
•
MICROFILMEE; 19�s
DATE 'JUL
REEL____ --
• EXCERPTS FROM MINUTES Or A MEETING OF THE
FAYETTEVILLE BOARD OF DIRECTORS
HELD MAY 3
, 1977
The Board of Directors of the City of Fayetteville Arkansas,
met in regular
session at its regular meeting place in
Fayetteville
Arkansas at 7;30 _p.m., on the 3 day of May , 1977 . The
• following were present: Mayor Ernest E. Lancaster
City Clerk
Darlene
Westbrook
; and
Aldermen John Todd, Paul'
Noland, Al
Hughes., David
Malone,
Philip Colwell,
and Marion Orton
Absent:
The Mayor stated that consideration should be given to a resolution
authorizing the exchange of fully registered bonds for coupon
bonds
This was a matter with which the Board was familiar and after a discussion,
)MMWJ= The City Attorney introduced a resolution entitled:
• "A RESOLUTION AUTHORIZING THE ISSUANCE AND DELIVERY
OF COUPON BONDS IN EXCHANGE FOR FULLY REGISTERED
BONDS OF THE CITY OF FAYETTEVILLE, ARKANSAS WATER-
WORKS AND SEWER REVENUE BONDS, SERIES 1966, DATED
SEPTEMBER 1, 1966; AND PRESCRIBING OTHER MATTERS
RELATING THERETO.
•
and the City gjj Attorn read the resolution in full.
54
s..
•
I
•
•
•
Page 2
nMxit Director Orton , seconded by XXXD$*)QI
Director Hughes moved that the resolution be. adopted. The question was
put by the Mayor on the adoption of the motion and the roll being called, the
following voted aye:
Todd, Noland, Hughes, Malone, Lancaster, Colwell, Orton
and the following voted nay:
None
The Mayor thereupon declared the resolution adopted and signed the
resolution, which was attested by the City Clerk
and impressed with
the seal of the City. The resolution was given No. 34-%7
(Matters not relating to a resolution authorizing the exchange
There being no further business, the Board adjourned.
ATTEST:
S I. I
(SEAL)
Mayor
are omitted.)
--55
•
CERTIFICATE
The undersigned, City Clerk of the City of Fayetteville
Arkansas, hereby certifies that the foregoing pages numbered 1 and 2, are a
true and correct copy of excerpts of the minutes of a meeting of the Board of
Directors of.Fayetteville , Arkansas, at a regular session held at the
regular meeting place of the Board in the City at 7'30 G .m. , on the 3
day of may , 1977 , and the time and place of the meeting was furnished
to each person who made a request therefor in accordance with the provisions
of Act No. 93of the Acts of Arkansas of 1967.
(SEAL)
•
•
City Clerk
56
0
RESOLUTION NO. 34-77
A RESOLUTION AUTHORIZING THE ISSUANCE AND DELIVERY
OF COUPON BONDS IN EXCHANGE FOR FULLY REGISTERED
BONDS OF THE CITY OF FAYETTEVILLE, ARKANSAS WATER-
WORKS AND SEWER REVENUE BONDS, SERIES 1966, DATED
SEPTEMBER 1, 1966; AND PRESCRIBING OTHER MATTERS
RELATING THERETO.
WHEREAS, pursuant to Ordinance No. 1508, adopted August 8,
1966, the City of Fayetteville, Arkansas (the "City"), authorized
and issued $4,300,000 in principal amount of Waterworks and Sewer
Revenue Bonds, Series 1966 (the "bonds"); and
WHEREAS, the bonds were initially issued as bonds registered
as
to both
principal
and
interest in
various
denominations,
maturing
on
June 1
in each of
the
years 1979
to 2000,
inclusive, and
numbered
from R-1 to R-22, inclusive; and
WHEREAS, Ordinance No. 1508 provides that the bonds may
be exchanged for coupon bonds in the denomination of $1,000 or
$5,000, at the option of the registered owner thereof; and
WHEREAS, the registered owner of Bonds Nos. R-1 to R-22,
inclusive, has notified the City of its election to exchange
these registered bonds for 860 coupon bonds (hereinafter described);
• NOW, THEREFORE, BE IT RESOLVED by the Board of Directors
of the City of Fayetteville, Arkansas:
Section 1. There is hereby authorized the issuance and
delivery of coupon bonds, subject to registration as to principal,
in the denomination of $5,000 each, in exchange for registered bonds,
as follows:
Registered Bond No. R-1 for 5 coupon bonds, numbered
from R-1-1 to R-1-5, inclusive.
Registered Bond No. R-2 for 5 coupon bonds, numbered
from R-2-1 to R-2-5, inclusive.
Registered Bond No. R-3 for 5 coupon bonds, numbered
from R-3-1 to R-3-5, inclusive.
•
_- 57
-2-
0
Registered Bond No. R-4 for 5 coupon bonds, numbered
from R-4-1 to R-4-5, inclusive.
Registered Bond No. R-5 for 5 coupon bonds, numbered
from R-5-1 to R-5-5, inclusive.
Registered Bond No. R-6 for 5 coupon bonds, numbered
from R-6-1 to R-6-5, inclusive.
Registered Bond No. R-7 for 5 coupon bonds, numbered
from R-7-1 to R-7-5, inclusive.
• Registered Bond No. R-8 for 5 coupon bonds, numbered
from R-8-1 to R-8-5, inclusive.
Registered
from R-9-1
Bond No. R-9 for 5 coupon bonds, numbered
to R-9-5, inclusive.
Registered
from R-10-1
Bond No. R-10 for 5 coupon
to R-10-5, inclusive.
bonds, numbered
Registered
from R-11-1
Bond No. R-11 for 5 coupon
to R-11-5, inclusive.
bonds, numbered
Registered
from R-12-1
Bond No. R-12 for 5 coupon
to R-12-5, inclusive.
bonds, numbered
Registered
from R-13-1
Bond No. R-13 for 65 coupon
to R-13-65, inclusive.
bonds, numbered
Registered
from R-14-1
Bond No. R-14 for 69 coupon
to R-14-69, inclusive.
bonds, numbered
Registered
from R-15-1
Bond No. R-15 for 71 coupon
to R-15-71, inclusive.
bonds, numbered
Registered Bond No. R-16 for 73 coupon bonds, numbered
from R-16-1 to R-16-73, inclusive.
• Registered Bond No. R-17 for 77 coupon bonds, numbered
from R-17-1 to R-17-77, inclusive.
Registered Bond No. R-18 for 81 coupon bonds, numbered
from R-13-1 to R-18-31, inclusive.
Registered Bond No. R-19 for 85 coupon bonds, numbered
from R-19-1 to R-19-85, inclusive.
Registered Bond No. R-20 for 89 coupon bonds, numbered
from R-20-1 to R-20-89, inclusive.
Registered Bond No. R-21 for 93 coupon bonds, numbered
from R-21-1 to R-21-93, inclusive.
Registered Bond No. R-22 for 97 coupon bonds, numbered
from R-22-1 to R-22-97, inclusive.
CI
__ 56
-3 -
Section 2. The Mayor and
City
Clerk
are hereby
authorized
and directed to execute and deliver
the
coupon
bonds and
execute
such other and further documents and take such other and further
action as necessary in connection therewith.
Section
3. The
Trustee for the
bonds
is authorized to
deliver the coupon
bonds
to the registered
owner
upon cancellation
of the registered bonds.
UNANIMOUSLY ADOPTED this 3tc.day of -aye / 1977.
CITY OF FAYETTEVILLE, ARKANSAS
ATTEST: �p By K .�C t J� " 1iuU�tB� � Mayor
�• n i r_0,
City Clerk
(SEAL)
i
•
59
•
CERTIFICATE
The undersigned, City Clerk of the City of Fayetteville,
Arkansas, hereby certifies that the foregoing pages are a true
n
Is
•
and compared copy of a
the Board of Directors
at the regular meeting
o'clock p.m., on the
Resolution is of recor,
now in my possession.
1977.
Resolution passed at a regular session of
of the City of Fayetteville, Arkansas, held
place of the Board of the City at 7:30
3 day of May , 1977, 77�i
and that the
I in Resolution Record Book _i, page ICI
GIVEN under my hand and seal this 4 day of May ,
I Its w�.e1-ems
City Clerk )
I-.
(SEAL)
60
4,
-
CITY OF FAYETTEVILLE, ARKANSAS
WATERWORKS AND SEWER REVENUE BONDS,
SERIES 1969, DATED FEBRUARY 1, 1969
Excerpts from Minutes of Meeting of Board
of Directors, February 3, 1969 1
Ordinance No. 1653 (Bond Ordinance) 5
Proof of Publication of Ordinance No. 1653
Notice of Hearing on Bond Ordinance . . . . . . . . 44
Excerpts from Minutes of Meeting of Board
of Directors, February 17, 1969 . . . . . . . . . . 45
Certificate of City Clerk to Transcript . . . . . . . . . . 47
Certificate of Incumbency of Officers, Absence
of Litigation and Identification of
Signatures . . . . . . . . . . . . . . . . . . . . . 48
• Certificate of Mayor re Facsimile Signature . . . . . . . . 52
Non Litigation Certificate 53
Delivery Instructions . 54
0
•
Exchange Bonds No. R-8 to R-32, Inclusive
Excerpts from Minutes of Meeting of Board
of Directors, May 3, 1977 55
Resolution No. 35-77 . . . . . 58
Certificate of Incumbency of Officers, Absence
of Litigation and Identification of
Signatures . . . . . . . . . . . . . .
Delivery Instructions
Specimen Exchanae Bond
. . . . 63
. . . 66
. . 67
MICROBUOR L
DATE
REED
EXCERPTS FROM MINUTES OF A MEETING OF THE
FAYETTEVILLE BOARD OF DIRECTORS
HELD flay a, , 1977
The Board of Directors of the City of FayettevilleArkansas,
met in regular session at its regular meeting place in Fayetteville
Arkansas at 7:30 _pm: , on the 3 day of Kay 19 77 . The
following were present: Mayor Ernest E. Lancaster
City Clerk Darlene Westbrook , ; and ]MMM x Directors John Todd,
•
Absent:
The Mayor stated that consideration should be given to a resolution
authorizing the exchange of fully registered bonds for coupon
bonds
This was a matter with which the Board was familiar and after a discussion,
nXumuax The City Attorney introduced a resolution entitled:
"A RESOLUTION AUTHORIZING THE ISSUANCE AND DELIVERY
OF COUPON BONDS IN EXCHANGE FOR FULLY REGISTERED
BONDS OF THE CITY OF FAYETTEVILLE, ARKANSAS WATER-
WORKS AND SEWER REVENUE BONDS, 1969 SERIES, DATED
FEBRUARY 1,1969; AND PRESCRIBING OTHER MATTERS
RELATING THERETO."
0
and the City (j9X Attorney
•
read the resolution in full.
55
S. •
•
Page 2
n� Director Hughes , seconded by i
Dlractor Colwell, moved that the resolution be adopted. The question was
put by the Mayor on the adoption of the motion and the roll being called, the
following voted aye:
and the following voted nay:
nulls'
The Mayor thereupon declared the resolution adopted and signed the
• resolution, which was attested by the City Clerk and impressed with
the seal of the City. The resolution was given No. 35-77
(Matters not relating to a resolution authorizing the exchange
are omitted.)
There being no further business, the Board adjourned.
Mayor
ATTEST:
.sa►�""_"� ���L�c�,ts d
City Clerk
(SEAL)
56
CERTIFICATE
The undersigned, City Clerk of the City of Fayetteville
Arkansas, hereby certifies that the foregoing pages numbered 1 and 2, are a
true and correct copy of excerpts of the minutes of a meeting of the Board of
Directors of Fayetteville , Arkansas, at a regular session held at the
regular meeting place of the Board in the City at 7:30 P .m. , on the 3
day of , 19 , and the time and place of the meeting was furnished
to each person who made a request therefor in accordance with the provisions
• of Act No. 93 of the Acts of Arkansas of 1967.
City Clerk
(SEAL)
0
RESOLUTION NO. r_
A RESOLUTION AUTHORIZING THE ISSUANCE AND DELIVERY
OF COUPON BONDS IN EXCHANGE FOR FULLY REGISTERED
BONDS OF THE CITY OF FAYETTEVILLE, ARKANSAS WATER-
WORKS AND SEWER REVENUE BONDS, 1969 SERIES, DATED
FEBRUARY 1, 1969; AND PRESCRIBING OTHER MATTERS
RELATING THERETO.
WHEREAS, pursuant to Ordinance No. 1653, adopted February 3,
1969, the City of Fayetteville, Arkansas (the "City") authorized and
issued $940,000 in principal amount of Waterworks and Sewer Revenue
Bonds, 1969 Series, dated February 1, 1969 (the "bonds"); and
WHEREAS, the bonds were initially issued as bonds registered
as to both principal and interest in various denominations, maturing
on August 1 in each of the years 1970 to 2001, inclusive, and numbered
from R-1 to R-32, inclusive; and
WHEREAS, Ordinance No. 1653 provides that the bonds may
be exchanged for coupon bonds in the denomination of $1,000 or
$5,000, at the option of the registered owner thereof; and
WHEREAS, the registered owner of Bonds Nos. R-8 to R-32,
inclusive, has notified the City of its election to exchange these
registered bonds for 202 coupon bonds (hereinafter described);
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors
of the City of Fayetteville, Arkansas:
Section 1. There is hereby authorized the issuance and
delivery of coupon bonds, subject to registration as to principal,
in exchange for registered bonds, as follows:
Registered Bond No. R-8 for 4 coupon bonds, numbered
from R-8-1 to R-8-4, inclusive, and shall be in the
denomination of $5,000 each.
Registered Bond No. R-9 -for 7 coupon bonds, numbered
from R-9-1 to R-9-7, inclusive. Bonds Nos. R-9-1 to
R-9-4, inclusive, shall be in the denomination of $5,000
each. Bonds Nos. R-9-5 to R-9-7, inclusive, shall be
in the denomination of $1,000 each.
58
0
Registered Bond No. R-10 for 2 coupon bonds, numbered
from R-10-1 to R-10-2, and shall be in the denomination
of $1,000 each.
Registered Bond No. R-11 for 1 coupon bond, numbered
R-11-1, and shall be in the denomination of $1,000.
Registered Bond No. R-12 for 1 coupon bond, numbered
R-12-1, and shall be in the denomination of $5,000.
Registered Bond No. R-13 for 4 coupon bonds, numbered
from R-13-1 to R-13-4, and shall be in the denomination
of $1,000 each.
•
0
Registered Bond No. R-14 for
from R-14-1 to R-14-4. Bond
the denomination of $5,000,
to R-14-4, inclusive, shall
$1,000 each.
Registered Bond No. R-15 for
from R-15-1 to R-15-4. Bond
the denomination of $5,000,
to R-15-4, inclusive, shall
$1,000 each.
Registered Bond No. R-16 for
from R-16-1 tD a-16-5. Bond
the denomination of $5,000,
to R-16-5: iclusive, shall
$1,000 each.
Registered Bond No. R-17 for
from R-17-1 to R-17-5. Bond
the denomination of $5,000,
to R-17-5, inclusive, shall
$1,000 each.
4 coupon bonds, numbered
No. R-14-1 shall be in
and Bonds Nos. R-14-2
be in the denomination of
4 coupon bonds, numbered
No. R-15-1 shall be in
and Bonds Nos. R-15-2
be in the denomination of
5 coupon bonds, numbered
No. R-16-1 shall be in
and Bonds Nos. R-16-2
be in the denomination of
5 coupon bonds, numbered
No. R-17-1 shall be in
and Bonds Nos. R-17-2
be in the denomination of
Registered Bond No. R-18 for 3 coupon bonds, numbered
from R-18-1 to R-18-3, inclusive, and shall be in the
denomination of $5,000 each.
Registered Bond No. R-19 for 5 coupon bonds, numbered
from R-19-1 to R-19-5. Bonds Nos. R-19-1 to R-19-3,
inclusive, shall be in the denomination of $5,000 each,
and Bonds Nos. R-19-4 and R-19-5, shall be in the
denomination of $1,000 each.
Registered Bond No. R-20 for 7 coupon bonds, numbered
from R-20-1 to R-20-7, inclusive. Bonds Nos. R-20-1
to R-20-3, inclusive, shall be in the denomination of
$5,000 each, and Bonds Nos. R-20-4 to R-20-7, shall be
in the denomination of $1,000 each.
Registered Bond No. R-21 for 6 coupon bonds, numbered
from R-21-1 to R-21-6, inclusive. Bonds Nos. R-21-1
to R-21-4, inclusive, shall be in the denomination of
$5,000 each, and Bonds Nos. R-21-5 and R-21-6, shall
be in the denomination of $1,000 each.
59.
-3-
Registered Bond No. R-22 for 5 coupon bonds, numbered
from R-22-1 to R-22-5, inclusive. Bonds Nos. R-22-1
to R-22-4, shall be in the denomination of $5,000 each
and Bond No. R-22-5, shall be in the denomination of
$1,000.
Registered Bond No. R-23 for 6 coupon bond's, numbered
from R-23-1 to R-23-6, inclusive. Bonds Nos. R-23-1
to R-23-3, inclusive, shall be in the denomination
of $5,000 each, and Bonds Nos. R-23-4 to R-23-6,
inclusive, shall be in the denomination of $1,000 each.
Registered Bond No. R-24 for 8 coupon bonds, numbered
from R-24-1 to R-24-8, inclusive. Bonds Nos. R-24-1
to R-24-4, inclusive, shall be in the denomination of
$5,000 each, and Bonds Nos. R-24-5 to R-24-8, inclusive,
shall be in the denomination of $1,000 each.
Registered Bond No. R-25 for 8 coupon bonds, numbered
from R-25-1 to R-25-8, inclusive. Bonds Nos. R-25-1
to R-25-6, inclusive, shall be in the denomination of
• $5,000 each,. and Bonds Nos. R-25-7 and R-25-8, shall
be in the denomination of $1,000 each.
Registered Bond No. R-26 for 7 coupon bonds, numbered
from R-26-1 to R-26-7, inclusive. Bonds Nos. R-26-1
to R-26-6, inclusive, shall be in the denomination of
$5,000 each, and Bonds Nos. R-26-7 shall be in the
denomination of $1,000.
Registered Bond Nos. R-27 for 6 coupon bonds, numbered
from R-27-1 to R-27-6, inclusive, and shall be in the
denomination of $5,000 each.
Registered Bond No. R-28 for 7 coupon bonds, numbered
from R-28-1 to R-28-7, inclusive. Bonds Nos. R-28-1
to R-28-6, inclusive, shall be in the denomination of
$5,000 each, and Bond No. R-28-7 shall be in the denomi-
nation of $1,000.
Registered Bond No. R-29 for 8 coupon bonds, numbered
from R-29-1 to R-29-8, inclusive. Bonds Nos. R-29-1
to R-29-6, inclusive, shall be in the denomination of
$5,000 each, and Bonds Nos. R-29-7 and R-29-8, shall
be in the denomination of $1,000 each.
Registered Bond No. R-30 for 7 coupon bonds, numbered
from R-20-1 to R-20-7, inclusive, and shall be in the
denomination of $5,000 each.
Registered Bond No. R-31 for 10 coupon bonds, numbered
from R-31-1 to R-31-10, inclusive. Bonds Nos. R-31-1
to R-31-7, inclusive, shall be in the denomination of
$5,000 each, and Bonds Nos. R-31-8 to R-31-10, inclusive,
shall be in the denomination of $1,000 each.
Registered Bond No. R-32 for 72 coupon bonds, numbered
from R-32-1 to R-32-72, inclusive. Bonds Nos. R-32-1
to R-32-70, inclusive, shall be in the denomination of
$5,000 each, and Bonds Nos. R-32-71 and R-32-72 shall
be in the denomination of $1,000 each.
60
• -4-
Section 2. The Mayor and City Clerk are hereby authorized
and directed to execute and deliver the coupon bonds and execute
such other and further documents and take such other and further
action as necessary in connection therewith.
Section
3. The
Trustee for the bonds
is authorized to
deliver the coupon
bonds
to the registered owner
upon cancellation
of the registered bonds.
UNANIMOUSLY ADOPTED this 3 day of , 1977.
CITY OF FAYETTEVILLE, ARKANSAS
ATTEST: /
Mayor
City Clerk
(SEAL)//
ij
e I i
0
•
CI
CERTIFICATE
The undersigned, City Clerk of the City of Fayetteville,
Arkansas, hereby certifies that the foregoing pages are a true
and compared copy of a Resolution passed at a regular session of
the Board of Directors of the City of Fayetteville, Arkansas, held
at the regular meeting place of the Board of the City at 7•.30
o'clock P .m., on the 3 day of May , 1977, and that the
Resolution is of record in Resolution Record Book .__ , page
now in my possession.
• GIVEN under my hand and seal this 4 day of May
1977.
(SEAL)
•
62
CERTIFICATE OF INCUMBENCY OF OFFICERS, ABSENCE
OF LITIGATION AND IDENTIFICATION OF SIGNATURES
STATE OF ARKANSAS
COUNTY OF WASHINGTON)
We, Ernest Lancaster, Mayor, and Darlene Westbrook, City
Clerk, respectively, of the City of Fayetteville, Arkansas, hereby
certify:
•
•
1. That we are the duly chosen, qualified and acting Mayor
and City Clerk of the City of Fayetteville, Arkansas and are duly
authorized to execute the bonds described in paragraph 2 below.
2. That on the day of 1977, the undersigned
City Clerk executed the exchange coupon bonds of the City of Fayette-
ville, Arkansas Waterworks and Sewer Revenue Bonds, Series 1969,
dated February 1, 1969, numbered R -8-i to R-8-4, inclusive, R-9-1
to R-9-7, inclusive, R-10-1 and R-10-2, R-11-1, R -.12-1, R-13-1 to R-13-4,
inclusive, R-14-1 to R-14-4, inclusive, R-15-1 to R-15-4, inclusive,
R-16-1 to R-16-5, inclusive, R-17-1 to R-17-5, inclusive, R-18-1 to
R-18-3,_inclusive, R-19-1 to R-19-5, inclusive, R-20-1 to R-20-7,
inclusive, R-21-1 to R-21-6, inclusive, R-22-1 to R-22-5, inclusive,
R-23-1 to R-23-6, inclusive, R-24-1 to R-24-8, inclusive, R-25-1 to
R-25-8, inclusive, R-26-1 to R-26-7, inclusive, R-27-1 to R-27-6,
inclusive, R-28-1 to R-28-7, inclusive, R-29-1 to R-29-8, inclusive,
R-30-1 to R-30-7, inclusive, R-31-1 to R-31-10, inclusive, and R-32-1
to R-32-72, inclusive (the "bonds"). The undersigned Mayor examined
all of the bonds and certifies that his facsimile signature appears
on all of the bonds and on the coupons attached to the bonds.
3. That there is no litigation.of any nature pending or
threatened restraining or enjoining the issuance and delivery of
the bonds or in any manner questioning the proceedings and authority
• r�' V) 1. .y:/•
-2 -
under which the bonds are to be issued or affecting .the validity of
the bonds; that neither the corporate existence nor the boundaries
of the City nor the title of the present officers to their respective
offices is being contested, and that no authority or proceedings for
the issuance of the bonds have been repealed, revoked or rescinded.
4. That the corporate seal of the City of Fayetteville,
Arkansas, is affixed to all of the bonds.
5. That on the day of , 1977, we delivered
• all of the bonds to Republic National Bank of Dallas, Dallas, Texas.
Mayor
therk
(SEAL)
Subscribed and sworn to before me, the undersigned Notary
Public within and for Washington County, Arkansas, on this 19
day of 1977.
-4k vy�u
Notary Public'
My Commission expires:
• O -L I /97.9
\' '(SEAL)
•
1. 64
c I, the undersigned, hereby certify that I am
V of -D C0., e l eV, �%, Arkansas, and
that I am personally acquainted with the Mayor and City Clerk of the
•
City of Fayetteville, Arkansas, whose signatures appear above, and I
do hereby identify the signatures as being the signatures of the
Mayor and City Clerk, and I do hereby identify the signatures appearing
on the bonds and coupons as being the true and genuine signatures of
the Mayor and City Clerk.
Subscribed and sworn to betore me, the undersigned Notary
Public within and for Washington County, Arkansas, this 1g day of
1977.
Ii
Notary Public
My Commission expires:
(SEAL)
,,
\ `
•
65
DELIVERY INSTRUCTIONS
Republic National Bank of Dallas
Dallas, Texas
Gentlemen:
We hand you herewith 202 exchange coupon bonds of the City of
Fayetteville, Arkansas Waterworks and Sewer Revenue Bonds, Series 1969,
dated February 1, 1969.
These are exchange bonds which have been requested pursuant to the
provisions of Section 2 of Ordinance No. 1653, adopted February 3,
• 1969. The exchange bonds are more particularly described in the
Certificate of Incumbency of Officers, Absence of Litigation and
Identification of Signatures furnished to you with these Delivery
Instructions.
You are to deliver these exchange coupon bonds to the purchaser,
Republic National Bank of Dallas, Dallas, Texas, upon receipt of
and cancellation of the outstanding bonds as to which they are
delivered in exchange.
Sincerely yours,
CITY OF FAYETTEVILLE, ARKANSAS
By��%/ G.
Mayor
The above elivery Instructions have been complied with this
/,
day of , 1977.
•
•
REPUBLIC NATIONAL BANK OF DALLAS
Dallas, Texas
By
Authoriz d Signature
The fully executed and authenticated exchange bonds have
been delivered to and received by the undersigned this 10th day
of June , 1977,
REPUBLIC NATIONAL BANK OF D LLAS
Dallas T as
By
Kitty Allard, Bond Investment Officer
(title)
R-12- .@0
COUNTY OF WASHINGTON
50
City of Fayetteville
6% WATERWORKS AND SEWER REVENUE BOND
SERIES 1969
Pnafi' Ni film20g tine Fresents:
That the City of Fayetteville, Washington County, Arkansas, a municipality under the laws of the State of Arkansas
(the "City") for value received, promises to pay to bearer, or if this bond be registered to the registered holder hereof, on
August 1, 1981, the principal sum of
FIVE THOUSAND DOLLARS
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
public and private debts, and to pay in like coin or currency interest on the principal amount at the rate of 5i% per annum for
the first six months (due August 1, 1969), at the rate of 5�% per annum for the second six months (due February 1, 1970), and
at the rate of 6% per annum thereafter (commencing with the interest payment due August 1, 1970) until paid, payable
semiannually on February 1 and August 1 of each year. 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 Nine Hundred Forty Thousand Dollars ($940,000) in principal amount,
designated "City of Fayetteville, Arkansas Waterworks and Sewer Revenue Bonds, Series 1969", dated February 1, 1969 (the
"bonds"). The bonds were initially issued as fully registered bonds but this 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
(hereinafter 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 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. 1653 adopted and
approved on the 3rd day of February, 1969 (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 City's combined Waterworks and
Sewer System (the "System"). There is presently outstanding an issue of City of Fayetteville Waterworks and Sewer Refunding
Bonds, dated June 1, 1963, issued under Resolution 7-63 adopted and approved on April 8, 1963 ("Resolution 7.63") and an issue
of City of Fayetteville Waterworks and Sewer Revenue Bonds, Series 1966, dated September 1, 1966, issued under Ordinance No.
1508 adopted and approved on August 8, 1966 ("Ordinance No. 1508") (both outstanding issues being collectively referred to as
the "Outstanding Bonds"), 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 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 Resolutuion 7-63 and Ordinance No. 1508) for a detailed statement of the nature and
extent of the security, the rights and obligations of the City and the registered 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 maintenance 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.
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 coupon 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 at a price of par and accrued interest.
In the case of registered bonds (fully registered or exchange bonds registered as to principal only or registered as to principal
and interest) notice of redemption shall be given at least 15 days before the redemption date by mailing to the registered holder
of each bond a notice specifying the redemption date and the number and maturity of the bonds being redeemed (n 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 bonds (payable to bearer or registered as to principal only) 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.
This bond may be registered as to principal alone or as to principal and interest and may be discharged from such
registration, in the manner, with the effect and subject to the terms and conditions endorsed hereon and set forth in the authorizing
ordinance. Subject to the provisions for registration endorsed hereon and contained in the authorizing ordinance, nothing in this
bond or the authorizing ordinance shall affect or impair the negotiability of this bond and this bond shall be deemed a negotiable
instrument under the laws of the State of Arkansas and is issued with the intent that the laws of the State of Arkansas will govern
its construction.
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 WHEREOF, 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 Mayor 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 February, 1969.
���� fall a 4Igiu n(�l«iinil\ \ • \1vn•Ilu .�u \\\\\X11\\\
1, •/i nn llu m/ /i
/ 111 �y
aII((/$�/�i�%%i/11UK,i/%�rvu/
ti
J
PROVISIONS FOR REGISTRATION AND RECONVERSION
This bond may be registered as to principal alone on books of the City, kept by the Trustee under the within mentioned Indenture as bond registrar, upon presentation
f to the bond registrar, which shall make mention of such registration in the registration blank below, and this bond may thereafter be transferred only upon an assign -
duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the bond registrar, such transfer to be made on such
and endorsed hereon by the bond registrar. Such transfer may be to bearer, and thereafter transferability by delivery shall be restored, but this bond shall again be
•t to successive registrations and transfers as before. The principal of this bond, if registered, unless registered to hearer, shall be payable only to or upon the order of
egistered owner or his legal representative. Interest accruing on this bond will be paid only on presentation and surrender of the attached interest coupons as they
-lively become due, and notwithstanding the registration of this bond as to principal, the appurtenant interest coupons shall remain payable to bearer and shall continue
transferable by delivery; provided, that if upon registration of this bond, or at any time thereafter while this bond is registered in the name of the owner, the unmatured
ns attached evidencing interest to be thereafter paid hereon shall be surrendered to said bond registrar, a statement to that effect will be endorsed hereon by the bond
'ar and thereafter interest evidenced by such surrendered coupons will be paid by check or draft of the bond registrar at the times provided herein to the registered
of this bond by mail to the address shown on the registration books. This bond when so converted into a bond registered as to both principal and interest may be
verted into a coupon bond at the written request of the registered owner and upon presentation at the office of said bond registrar. Upon such reconversion the coupons
renting the interest to become due thereafter to the date of maturity will again be attached to this bond and a statement will be endorsed hereon by the bond registrar
registration blank below whether it is then registered as to principal or payable to bearer.
Date of Registration Name of Registered Owner Manner of Registration Signature of Bond Registrar
z
0
z
E
U
g
to
d
�
Q
t n
CERTIFICATE OF AUTHENTICATION
This is one of the exchange coupon bonds that are part of an issue of City of Fayetteville, Arkansas Waterworks and Sewer Revenue
Bonds, Series 1969, dated February 1, 1969, aggregating $940,000 in principal amount.
REPUBLIC NATIONAL BANK OF DALLAS
DALLAS, TEXAS
(Authorized Signature)
• a • •
• • ••
$150.00 on the panda tt• Au st.19 a a *No. 19
the City of ay rte tq A sn e, nlvvAA5
the bond to which Ibis eau, n 1r to tacyed s pvtd.prlyr M eto. hereby
promisee to pay to bearer at the prineipa office of nepubftc National
Bank of Dallas. Dallas, Texas. solely out of the special fund specified
to the bond seArhi this n vie lta[ d •
ONE R4%at the
100 �eIT it!
In such mrt o$ eurteyy µa[ the ayes of emt-teeid-IseceI lerdbr fur
the payment oS drhatn due.United St(te:}af Smt�rIT Leln¢ olr•tt1)
menthe' dot than due.on its a11�prwII['lend S •Devemt Bon',
Series 1969, datedj'ebruaiy l• 1069. inks • • • a s s
Combated
CM OF FA=PILYVI , ARKANSAS
R-12-.000 By ZO,rmAw>G �1 coos -•.4 a
yet
In
the
OE thel�lr4 dig of•Femuar,d
p1l. No. 24
N•Clb o 6veuvYle.-ka,... uno
rs 196Y, O wd y'9Druar7 1. 1U6f, e➢a •
•ea
• • • aC,I1ef 4A' PAYETAEVIIA.A. TRKANSAR
RI2-0:i lry Ltt*I 'ayef.. MS,a
aCo the fat dd4� Rf Au ue[' l0
me CBa efea6Attett➢? A pptee.�
$150.00 ul$No21
ss a :.
the bond to which *isamuMDov Is Ata4ed C Appel prl!r theeto. hereby
promises to pay to bearer ata{Re IRRrtlpa otice yf epubyc National
Bank of Dallas. Dallas, Te.aaollly Rut I e o[,1 food specified
In the bond to able coapoa•le Rttelhe
ONE HUNDRED FIFTY AND uo/100 DOLLARS
In such min or currency as at the time of Daymentp IFssl leader Rr
the payment ppf. debts ta due 'o•II,ttl stAee Tl Aerkaadd e no .Ia ()
monthr intjrbat t1W¢v Rue.n Its Nalarwkts*a tde1veravenu. it•ne,
Series 1969. dated Ncowln, 4. 1900, and • • . •
numbered o a•'1a
• • •CITY •F .AYSETSEV1Ltr. SRJ 4AS
R-12= 000'1.. k,..a..
Ma or
Qh the flyt de a1 Fo vary. ]f TS s
150.00 m ct n e-en���yyy B ke as II No. 18
the bond to which Itll �coy� vela i!{.0he i4 gala Dr+m jl�rata. hereby
promises to pay to eater dt we tkrr�nwi0 °Qlcesof gteont%Wtic National
Bank of Dallas, D ids, T�x s su 6 out of jho so al f d specified
in me bond to whit this A is a{laeke�
ONE IIUNDR vofl00.OdS.LAHit
In much min or currency as at the time of payment is legal tender for
the payment, of delta due Ne IIvRed 6 tee of Amlrl pPly sir 81
months' i terd6t $!i du Ln- Its ., to orkE nd Btwe 'A6vev�es Bo�d,
Series lobs date.. Fegru�y 1, is9. • �'
numbered ; •• a CITrOF F(EVD1LEA2g
• y ARKSAi:
R-12'- 00(S'. •
zL4/ /Cb• 'M.ym
.No. 23
much cola or currency ee at the time of payment is legal tender
payment of debts due the United States of America, being six
oneinterest then due an Its Waterworks and Sawer Revenue Bo
lee 1969, dated February 1, 1989, and
1D0t°a CITY OF FAYETTEYILLB, ARKANSAS
R-12- 0.00By � � Mam
•
No. 20
eto, hereby
tc National
Ld fDecified
•
fV
•
uuobered,.,. C ... tea.,.,..., 9 .a,,,a.,q a •.
R a C O�•. Bnr o9 F1YETTEVIILLLEARKANSAS
-
• �f,iroq�vm
FMhebond
a byy tlu Itpt .ty Rf �aypat, sari! No. 17
Nd Cldy o oI is viach li to am pSor
promises
o whlct % map fe a ri iibapalA pF,or hereto, hereby
o pay tJ lfcerer Jji {ne eDrlRd, ottt a of special
fund National
ecifie
BankDallas. IMllaei Tgxeq usobbut of the [pmial fund specified
the to wbHN this [dupon le attachedONE urNURED FIFTY AwNNpp /loo ]all ilegsl •n ar cy the Ngtlmebfs of Ain i ete�1 tgde• aFnt-6L debt due @o Ualtes BlRtas o Amarleol . sine al: 'CI
lured 1 • • - a)i FAYssT'IE
R-12-0.00 a��
LE, ARKANSAS
0
„c.
2512 P ... nt Accumulated Total
Accumulated total carrieu forward $ 6,000.00
January 1, 1950 500.00 6,500.00
February 1, 1950 500.00 7,000.00
March 1, 1954 500.00 7,500.00
April 1, 1950 ≥00.00 b,000.J0
May 1, 1950 500.00 8,500.00
June 1, 1950 500.00 9,w0.00
July 1, 1950 500.00 9,500.00
• Aujjxrt 1, 1950 500.00 10,000.00
Septe,ber 1, 1950 5J0.0O 10,500.00
October 1, 1950 530.03 ,:00.CC
November 1, 1950 500.00 11,500.00
December 1, 1950 500.00 12,000.00
• GMT OF F11r. ' '
Waterwor1m Revenue Bond Fund
Schedule of Peymentsi;5
All ia.yment Debit Fund Balance
Fund Balance brought forvard - - - - - - - - - - - w ,374.40
isnnary 1, 1950 $ 4,142.09 $ $ 12,516.49
February 1,1950 4,142,09 16,658.58
March 1, 1950 4,142.`9 20,800.67
April 1, 1950 4,142.09 24,942.76
May 1, 1950 4,11,2.09 29,084.85
May 24, 19`0 11,699.18(+►) '7,385.67
June 1, 1950 4,1k2.09 21,527.76
July 1, 1950 4,142.08 25,669.84
August 1, 1950 4,142.088 ;'9,811.92
Septa:,ver 1, 1950 4,142.08 33,954.00
• October 1, 1950 4,14.^_.08 3d,U96.0e
November 1, 1950 4,142.04 42,238.16
November 24, 1950 29,721.67 (**J .12,516.49
Decemb'3r 1, 1950 4,142.08 16,658.57
(*) Ssmi-annual interest coupons and paying agents Pees
to be paid to The Connercial National Bank of Little hock,
Little Rock, Arkansas, paying agent, for City of Fayetteville
2% and 3 Waterworks Revenue Refunding and im,zovement buds.
(Coupons ,411,670.00, paying egents fees $29.18
('+*) Semi-annual interest coupons, principal and paying
agents fees to be paid as under (*). (Princinal $18,000.03,
coupons, X11,670.0); paying agents fees $51.67).
•
CITY OF FAY' TTEVILLE
kT&XIORKS REVENUE 133ND FUND
SCHEDULE OF PAYL ITS, 1949
Date Payment Debit Fund Balance
Aril 1, 1949 $ 4,191.37 i 15,049.22,E
Lay 1, 1949 4,399.64 19,448.86
Lay 26, 1949 11,924.74 (#) 7,524.12
June 1, 1949 4,399.64 11,923.76
July 1, 1949 4,399.64 16,323.40
Auust 1, 1949 4,399.64 20,723.04
September 1, 1949 4,399.64 25,122.68
October 1, 1949 4,399.64 29,522.32
• November 1, 1949 4,399.64 33,921.96
November 24, 1949 29,947.24 () 3,974.72
December 1, 1949 4,39, 70 (o2 8,374.40
(*) Semi-annual interest coupons and paying agents
fees to be paid to The Commercial National Bank of
Little Rock, Little Rock, Arkansas, paying agent, for
City of Fayetteville 24% and 3% Vaterrrorks Revenue
Refunding and Improvement Bonds. (Coupons $11,895.00,
payi�n¢ agents fees x)29.74).
(*) Semi-annual interest coupons, principal and
paying agents fees to be paid as under (*). (Principal
118,000.00; coupons, $11,895.00; paying agents fees
;x52.24). ;
A.o tL u 2* (I
P.�d.
DICKSON & ESTES
•
ATTORNEYS AT LAW
FAYErFEVILLE. ARKANSAS
PRICE DICKSON
PETER G. EgTE5
Mr. Roy Nix, Treasurer
Fayetteville, Arkansas
Dear Ir. iui.x:
SUITE 1. EVANS BUILOING
February 17, 1949 PHONE 535
Re: Adjustment - Waterworks Revenue
Bond Fund and W;aterv,orks
Depreciation Fund
In view of the deposit to the iiaterworks Revenue Bond Fund
�l
l Ce %, S 5 oftV,jwhich was in payment of the amounts provided by
Ordinance o. 943 for the February Larch 1st o ents
it develops that this deposit was w ,08.2 more than the amount X8.2
required under the schedule pf *aym s o ,?4,399.64 per month.
You are, therefore, directed to deposit out of the :7aterrorks
Fund ^94,191.37 at the time of your April 1st distribution of funds.
• There was deposited to the depreciation fund $1,000.00 which
was supposed to be the payments provided by Ordinance No. 943
for the months of February and Larch. However, since there must
be $6,000.00 deposited in this fund $then the payment of December 1,
1949 is made and payments were not begun until February 1, 1949,
it is evident that the ^91,000.00 for the months of February and
Larch is short, since there will be only eleven months in which
to make this payment. In order to have $6,000.00 in the depreciation
fund by December 1, 1949 and to pro rate the payments on a monthly
basis, it gill be necessary to deposit $545.45 for each month
beginning v:i.th February 1, 1949. This means that the $1,000.00
deposit which was supposed to cover the February and Larch payments
is short $90.90. You are, therefore, directed to deposit out of
the Waterworks Fund into the depreciation fund on your April 1st
settlement the sum of $636.35, which is .. 4 .4`Lfor the Aor.il 1st
payment and $90.90 to catch up on the February 1st and Larch 1st
payments.
After you have paid into the Bond Fund on your Aprillst
payment the sum of *4,191.37 and payment to the Depreciation Fund
of :3636.35 on your April 1st payment, you will then have both funds
on a current basis. The monthly requirements for the remainder o£
the year through the December 1st settlement for the Bond Fund
will be $4,399.64 and for the Depreciation Fund the sum of ."„%545.45
• \monthly, both monthly payments beginning with the Lay 1st settlement
THE COMMERCIAL NATIONAL BANK, 81.25
OF LITTLE ROCK, ARKANSAS
We have received your letters as described below, with stated enclosures.
Year Letter -_- We Credit
_ — Remarks
eceipt is acknow
edged
o
your cheek/
arrant for
$ 29,721.611
connection
ith the 1? -1-
0
iatartttea
on
_
ou_r bond issues
tayetteville
Waters► r
HE C0NYERCIAL NAIU0N
ROCK, ARR
AS
fl
L�
-.2—
and continuing in the same amounts through the December 1st
settlement, at which time monthly payments will be recom?uted
for both funds and you will be advised of the amounts necessary
to meet the requirements of Ordinance No. 943.
Very truly yours,
Price Dick n
PD/lm
cc: bcllroy Bank, Fayetteville, Arkansas
First National Bank, Fayetteville, Arkansas
Dr. Harrison Hale, Fayetteville, Arkansas
Mr. ii. C. tlhitfield, Fayetteville, Arkansas
P. S. Schedules of payments to be made from the ;atervaorks Fund
to the Waterrorkcs Revenue Bond Fund and to the F7aterv:orks Depreciation
Fund are enclosed for your convenience. They will be effective
through the December 1, 1949 settlement. P. D.
o /N.
DICKSON & ESTES
• ATTORNEYS AT LAW
FAYETTEVILLE. ARKANSAS
PRICE
DICKSON
SUITE 1. EVANS BUILOINO
PETER
G. EYTE.
ebruarr.
1, �_y49
PHONE 535
Mr. Roy Nix, Treasurer
Fayetteville, Arkansas
Dear Mr. Nix:
There v:as an error of two cents on the December 1,
1949 payment to the iaterv+orl:s -Revenue Bond Fund. The
schedule shows the December 1, 1949 payment to be
w4,399.70. The payment should be $4,399.68. All other
payments, debits, and fund balances are correct. The
fund balance on the December 1, 1949 payment of $8,374.40
• is correct and the schedule will not be changed on the
fund balances.
I suggest teat you change your schedule on the
December 1, 1949 payment to show the payment of $4,399.68
rather than ;4,399.70. I have made this correction on
my office copy.
Very truly yours
Price kson
PD/lm
cc: Mcllroy Bank, City.
First National Bank, City.
Dr. Harrison Hale, City.
W. C. Whitfield, City.
•
DICKSON & ESTES
•
r51ct DICKSON
PtTtw C. 6.Ttt
Mcllroy Bank,
Fayetteville, Arkansas
First National Bank
Fayetteville, Arkansas
ATTORNEYS AT LAW
FAVE IEVII_LE, ARKANSAS
January 14, 1949
Mr. E. T. Brown, Superintendent,
City ,pater Plant
Fayetteville, Arkansas
Mr. Roy Nix
City Treasurer
Fayetteville, Arkansas
5 unit t. Fvmw SuELO,NG
PHONE 535
Instructions under Ordinance No. 943.
Ordinance No. 943 of the City of Fayetteville, certified copy of
• which is enclosed to each of the two banks above named, creates five
funds of the City of Fayetteville in connection with its $800,000
';eterworks Revenue Bond. These funds are as follows: +�
o
(1). 'Waterworks Construction Accoupt.'�, i, CI,✓
�(2). t}ff•'
:aterworks Fund. L.-I'JAa . o " t° 1
..I(3). Waterworks Revenue Bond Fund..
✓(4): Waterworks System Depreciation Fund. jr6t
(5). 'aterw9rks System Operation and Maintenance Fund.. tot
There has been deposited with the Mcllroy Bank and First National
Bank the sums of $332,071.84 and $332,071.83 respectively. These two
deposits represent the net proceeds of the sale of v800,000 in ..aterworks
• hevenue bonds, plus accrued interest in the sum of $1,850.30, less
4101,205.50, being the principal and interest on the $100,000 Revenue
Notes dated September 10, 1948 c Veterans Hospital Bonds and interest
in the sum of w35,088.0OJ expense and one-half of the attorney fees to
Rose, Dobyns, Meek and house in the sum of $586.13, and the paying agents
fee at The Commercial National Bank of $827.00. Under Section 8 of the
Ordinance the accrued interest in the sum of $1,850.30 must be deposited
in the Waterworks Revenue Bond Fund and should not have been deposited
• in the Waterv,orks Construction Account. It will, therefore, be necessary
that $1,850.30 be withdrawn from the present Construction Account and
placed in the Vlaterworks Revenue Bond Fund. Assuming that an equal anount
will be withdrawn out of the Construction account of each 'of the two banks,
• it will be necessary that each bank pay $925.15 out of the Construction
Account and deposited to the credit of the aterworks Revenue Bond Fund.
4
—2—
C
After withdrawing these amounts, the balance remaining shall be designated
aterz �orksConstruction.Account and is a trust fund as provided under
efon 2t (4) of Ordinance No. 943, and the banks instructed to carry
this as a trust fund and to assign sufficient security to protect said
trust fund. These securities are normally United States Government Bonds
and are in an amount equal to the trust deposit. Funds may be withdrawn
from the Waterworks Construction Account only as provided under Section 26
(4) of Ordinance #943. Specific reference is made to this division and
the banks are instructed to honor vouchers drawn on this account only
upon strict compliance with Section 26 (4). Briefly, this Section requires
the vouc49r to be signed by the Mayor and the City y aspigr brS_efly
specifying the disbursement or expenditure, accompanied by a certificate
signed by the consulting engineer of such construction that an obligation
in the amount shown on the voucher has been incurred on account of the costs
of constructions and to whom such obligation is owed, except that no such
certificate shall be required for the payment of engineering, legal and
other incidental expenses.Q$An account known as the Wjterworks Fund should
immediately be opened into which all revenues of the rater Department should
immediately be placed. This fund is set forth in Section IQ of said
Ordinance No. 943. The Treasurer of the City of Fayetteville is the
custodian of the laterworks Fund.
There should immediately be opened a fund known as ".:aterworks Revenue
• Bond Fund into which should immediately be placed the accrued interest
in the sum of N1,650.30 and there should be paid out of the Waterworks
Fund the sum of w4,399.64 monthly, beginning in January, 1949, and continu—
ing through the mom of November, 1949. Monthly payments from the
,,aterworks fund to the ,,aterv,orks Revenue Bond Fund will be recomputed
beginning with the month of December, 1949, for the next twelve months
period, and the City Treasurer and both banks v:ifl be advised as to the
amount to be deposited monthly. The City Treasurer has the authority to
pay out of the Waterworks Fund upon a proper voucher the amount necessary
to meet the requirements of the Waterworks Revenue Bond Fund.
There shall immediately be created a W.4terworks System Depreciation
Fund into which shall be paid 4500_ monthly beginning with the month
of January, 1949, as provided by Sgtion 13 of said Ordinance No. 943, and
the City Treasurer is authorized to pay this sum into the Waterworks
System Depreciation Fund out of the Waterworks Fund. VV ers drawn on the
'a�aterworks System Depreciation Fund shall be honored only when signed by
the Superintendent or manager of the ''Jaterworks System and the City
Treasurer, and each check or voucher shall briefly specify the purpose
of the expenditure.
There shall immediately be created a ':atervorks System Operation and
siaintenance Fund, into which shall be paid the moneys remaining in the
aterworks Fund after making the paWments to the :raterworks Revenue Bond
Fund and the :.aterworks System Depreciation Fund. Withdrawal from the
.aterworks Fund for deposit in the :..aterv,orks System Operation and
• Laintenance Fund shall be by the City Treasurer as provided by Section 14
-3.-.
of said Ordinance No. 943. Payments from the Yfaterworks System Operation
and Maintenance Fund shall be made only by check or voµthpr signed by the
superintendent or manager of the l,ateruorks System and the City Treasurg;,
which check or voucher shall briefly specify the purpose of the expendi-
ture.
If I can be of further assistance or if any matters contained in
this letter of instruction are not clear, I shall be glad to do whatever
I can to get the plan in operation at the earliest possible time.
Very truly yours,
/ A I // r A: f w A•" I ..
Price Dickso'�
Special Attor ey
PD/lm
•
•
/ F
•
c O a P 61 Ot7I=
PROPERTY OF CITY CLERK
City of Fayetteville, Arkansas
Water and Sewer Department
Special Report on Proposed
Bond Issue at
January 9, 1969
TABLE OF CONTENTS
Exhibit
Page
Opinion on Proposed Bond Issue
1
"A"
Statement of Operations for the fiscal
2
year ended July 31, 1968
Present and Proposed Bond Issues compliance
with the required coverage based upon operating
income for the fiscal year ended July 31, 1968
"B"
Balances of Funds required by Ordinance 1508
3
at July 31, 1968
Waterworks and Sewer Revenue Refunding Bond
Reserve Fund
Waterworks and Sewer Contingency Reserve
Waterworks and Sewer Repair and Replacement Fund
"C"
Bond Issues outstanding at July 31, 1968
4
"D"
Proposed Bond Issue
5
Annual Debt Service Charges for Present Bond Issues
6
and Proposed Bond Issue
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CERTIFIED PUBLIC ACCOUNTANTS
My ;s �cctI k_I �!g{� and gaper
MEMBERS, AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor and Board of Directors
City of Fayetteville
Fayetteville, Arkansas
L
Gentlemen:
MAX MYERS C.P. A.
ROBERT J. BAKER C.P.A.
DALE K. RIFE C.P.A.
EDWIN G. DENHAM C.P.A.
ROBERT L. RICE C.P.A.
JERRY L. DODSON C. P.A.
BOB L. DADDY C. P.A.
ALLEN D. ELLIOTT C. P.A.
HOWARD W. HOGAN C.P.A.
HUGH R. SCARBROUGH C.P.A.
•EMERITUS PLRTNLR
We have read Resolution 7-63 (April 8, 1963), Ordinance 1508 (August 8, 1966)
and information submitted to us on the proposed Water and Sewer Revenue Bonds of
$940,000.00. The purpose of this report is to determine whether the Water and
Sewer Department has met the financial requirements in Resolution 7-63 and Ordinance
1508 to issue the proposed bond issue.
Ordinance 1508 (Section 14) and Resolution 7-63 (Section 19) stipulates that
the net revenues (operating income) of the system from the preceding fiscal year,
or the preceding twelve months period, (net revenues being defined as the gross
revenues less the reasonable expenses of operations and maintenance of the system,
including all expense items properly attributable to the operations and mainten-
ance under generally accepted accounting principles applied to municipal water -
work and sewer systems) will equal at least 133 1/3% of the maximum annual debt
service charge that will become due in any year thereafter on the bonds then out-
standing and the bonds proposed to be issued. Although depreciation ($242,452.15)
is normally considered an operation and maintenance expense under generally ac-
cepted accounting principles, we do not believe it was the intention of Resolution
7-63 or Ordinance 1508 to include depreciation in operations and maintenance.
Ordinance 1508 and Resolution 7-63 require the establishment of the Waterworks
and Sewer Revenue Refunding Bond Reserve Fund ($500,000.00), Waterworks and Sewer
Contingency Reserve ($100,000.00), and.Waterworks and Sewer Repair and Replacement
Fund ($50,000.00).
In our opinion, the financial requirements of Ordinance 1508 and Resolution
7-63 have been met by the City of Fayetteville for the issuance of the proposed
Water and Sewer Revenue Bonds of $940,000.00.
Fayetteville, Arkansas
January 9, 1969
MYERS, SCARBROUGH and BAKER
Certified Public Accountants
City of
Fayetteville,
Arkansas Exhibit 'A''
Water
and
Sewer
Department
Statement of Operations
For the fiscal year ended July 31, 1968
Operating revenues
Water sales
$
732,909.96
Sewer service charges
337,514.85
Fire hydrant and protection charges
19,960.51
Rental income
Water and sewer property
$ 4,248.50
Parking lot
313.00
4,561.50
Construction and maintenance
4,863.30
Miscellaneous
708.45
$
1,100,518.57
Operating deductions
Water supply and treatment
$
93,195.49
Water distribution and transmission
72,360.39
Sewage collection and pollution control
51,041.64
Chemical and laboratory control
5,542.60
Customers' accounting and collection.
75,227.60
Adminstrative and general
59,190.25
$
356,557.97
Operating income
$
743,960.60
Other revenues
Lake recreation $ 5,064.71
Interest on investments - Note "5" 269,021.10 274,085.81
Other deductions
Bond interest $ 339,548.80
Depreciation of fixed assets 242,452.15
Amortization of bond discount and expense 20,412.13
Contractual payments -Beaver Water District - Note "3" 27,260.76 629,673.84
Net income S 388,372.57
Requirements per Resolution 7-63 (Section 19) and Ordinance 1508 (Section 14),
for our -pose of issuing additional bonds.
Maximum annual debt service charge on present bond issues
and proposed bond issue occurs in 1981 - per Exhibit "E" $ 558,043.75
Percentage of coverage required 133 1/3%
Total required coverage based upon operating income 743,872.32
2
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City of Fayetteville, Arkansas
Water and Sewer System
Exhibit "B"
Acquisition
Maturity
Maturity
Date
Date
Cost
Value
U.
S.
Treasury
Bonds
11-21-58
6-15-69
$ 4,478.13
$ 5,000.00
U.
S.
Treasury
Bonds
1-20-59
12-15-69
4,356.25
5,000.00
U.
S.
Treasury
Bonds
3-17-59
3-15-71
4,300.00
5,000.00
U.
S.
Treasury
Bonds
4-14-59
10-01-69
4,975.00
5,000.00
U.
S.
Treasury
Bonds
8-15-59
10-01-69
9,837.50
10,000.00
U.
S.
Treasury
Bonds
10-24-59
6-15-69
8,600.00
10,000.00
U.
S.
Treasury
Bonds
3-10-60
3-15-70
109,656.83
131,000,00
U.
S.
Treasury
Bonds
10-28-60
3-15-70
29,377.76
33,000.00
U.
S.
Treasury
Bonds
11-20-60
3-15-70
68,851.31
"
78,000.00 •
U.
S.
Treasury
Bonds
3-09-62
8-15-71
9,395.31
10,000.00
U.
S.
Treasury
Bonds
3-18-63
11-15-74
9,581.26
10,000.00
U.
S.
Treasury
Bonds
3-18-63
11-15-71
16,860.63
18,000.00
U.
S.
Treasury
Bonds
9-21-66
2-15-70
148,651.91
157,000.00
Fayetteville
Building and Loan
VRC
1-03-68
1-03-69
10,000.00
10,000.00
First
Federal Savings and Loan
VRC
1-09-68
1-09-69
10,000.00
10,000.00
Add:
Investments carried in
the
Waterworks and Sewer•
Contingency Reserve
51,130.70
53,000.00
S500,052.59
5550.000.00
Bond
Ordinance
1508 (Section 9)
Requirement
$500.000.00
Waterworks and Sewer Contingency Reserve
At July 31, 1968
U. S.
Treasury Bonds
11-24-61
U. S.
Treasury Bonds
12-29-61
Fayetteville
Building
and Loan VRC
1-10-68
First
Federal Savings
and Loan VRC
1-09-68
Certificate
of Deposit
- First Nat'l Bank
i-04-68
Certificate
of Deposit
- Mcllroy Bank
1-08-68
Less:
The investments
belonging to
the Waterworks
and Sewer Revenue
Refunding Bond
Reserve Fund
Bond Ordinance 1508 (Section 10) Requirement
First Federal Savings and Loan
'
Fayetteville Building and Loan
Certificate of Deposit - Mcllr
Certificate of Deposit - First
Certificate of Deposit - First
I
it and
11-15-74
$ 42,472.16
$ 43,000.00
11-15-74
68,658.54
70,000.00
1-10-69
10,000.00
10,000.00
1-09-69
10,000,00
10,000.00
1-04-69
10,000.00
10,000,00
1-08-69
10,000.00
10,000.00
(51,130.70)
(53,000.00)
$100.000.00
S100.000.00
$100.000.00
aDlacement
Fund
VRC 1-09-68 1-09-69
VRC 1-10-68 1-10-69
�y Bank 1-08-68 1-08-69
Nat'l Bank 1-04-68 1-04-69
Nat'l Bank 7-13-68 1-13-69
Bond Ordinance 1508 (Section 11) Requirement
$ 10,000.00
10,000.00
10,000.00
10,000.00
10,000,00
S_50.000.00
$ 10,000.00
10,000.00
10,000,00
10,000.00
10.000.00
S_50,000.00
S_50.000.00
171
•
City of Fayetteville, Arkansas
Water and Sewer Department
Summary of Bonds Outstanding
As at July 31, 1968
Waterworks and Sewer Revenue Refunding Bonds (I)
Interest ,
Year Numbered Principal June I December l Total
1969 182-208 $ 135,000.00 $ 79,762.50 $ 77,568.75 $ 292,331.25 ,
1970 209-236 140,000.00 77,568.75 75,293.75 292,862.50
1971 237-265 145,000.00 75,293.75 72,937.50 293,231.25
1972 266-295 150,000.00 72,937.50 70,500.00 293,437.50
1973 296-326 155,000.00 70,500.00 67,981.25 293,481.25
1974 327-358 160,000.00 67,981.25 65,181.25 293,162.50
1975 359-391 165,000.00 65,181.25 62,293.75 292,475.00
1976 392-426 175,000.00 62,293.75 59,231.25 296,525.00
1977 427-462 180,000.00 59,231.25 56,081.25 295,312.50
1978 463-499 185,000.00 56,081.25 52,612.50 293,693.75
1979 500-537 190,000.00 52,612.50 49,050.00 291,662.50
1980 538-577 200,000.00 49,050.00 45,300.00 294,350.00
1981 578-618 205,000.00 45,300.00 41,456.25 291,756.25
1982 619-661 215,000.00 41,456,25 37,425.00 293,881.25
1983 662-705 220,000.00 37,425.00 33,300.00 290,725.00
1984 706-751 230,000.00 33,300.00 29,045.00 292,345.00
1985 752-799 240,000.00 29,045.00 24,605.00 293,650.00
1986 800-849 250,000.00 24,605.00 19,980.00 294,585.00
1987 850-900 255,000.00 19,980.00 15,262.50 290,242.50
1988 901-953 265,000.00 15,262.50 10,360.00 290,622.50
1989 954-1008 275,000.00 10,360.00 5,272.50 290,632.50
1990 1009-1065 285.000.00 5,272.50 290.272.50
Total 1963 issue $ 4.420.000.00 S 1 oc0.5oo.00 g7p,7375p 5 6.441.237.50
Note (Ij Bonds dated June 1, 1963, Resolution, number 7-63
Paying agent: Union Planters National Bank, Memphis, Tennessee
Principal date: June I
Interest rates: Bonds numbered
182-326 3 1/4%
327-462 3 1/2%
463-705 3 3/4%
706-1065 3.7% '
1
1
II
Exhibit "C"
Waterworks and Sewer
Revenue Bond Series 1966 (2)
Interest
Year
Numbered
Principal
June 1
December 1
__ Total
1969
$
$ 88,150,00
$ 88,150,00
$ 176,300,00
1970
88,150,00
96,750,00
184,900,00
1971
96,750,00
96,750.00
193,500.00
1972
96,750,00
96,750,00
193,500.00
1973
96,750.00
96,750,00
193,500,00
1974
96,750.00
96,750,00
193,500,00
1975
96,750,00
96,750,00
193,500,00
1976
96,750,00
96,750,00
193,500,00
1977
96,750,00
96,750,00
193,500,00
1978
96,750,00
96,750,00
193,500,00
1979
R -1
25,000,00
96,750,00
96,187.50
217,937.50
1980
R-2
25,000,00
96,187.50
95,625.00
216,812,50
1981
R-3
25,000,00
95,625,00
95,062,50
215,687,50
1982
R-4
25,000,00
95,062.50
94,500,00
214,562,50
1983
R-5
25,000,00
94,500,00
93,937.50
213,437.50
1984
R-6
25,000,00
93,937.50
93,375.00
212,312,50
1985
R-7
25,000,00
93,375,00
92,812.50
211,187,50
1986
R-8
25,000.00
92,812,50
92,250,00
21.0,062,50
1987
R-9
25,000,00
92,250,00
91,687,50
208,937.50
1988
R-10
25,000,00
91,687.50
91,125,00
207,812,50
1989
R -I1
25,000,00
91,125,00
90,562.50
206,687.50
1990
R-12
25,000,00
90,562,50
90,000,00
205,562.50
1991
R-13
325,000,00
90,000,00
82,687,50
497,687.50
1992
R-14
345,000,00
82,687.50
74,925,00
502,612,50
1993
R-15
355,000,00
74,925,00
66,937.50
496,862.50
1994
R-16
365,000.00
66,937.50
58,725.00
490,662.50
1995
R-17
385,000,00
58,725,00
50,062,50
493.787.50
1996
R-18
405,000.00
50,062,50
40,950.00
496,012,50
1997
R-19
425,000,00
40,950.00
31,387.50
497,337.50
1998
R-20
445,000,00
31,387.50
21,375.00
497,762,50
1999
R-21
465,000,00
21,375.00
10,912.50
497,287,50
2000
R-22
485,000,00
10,912.50
495,912,50
Total
1966 Issue
$_4.300.000.00
$_2.602.137.50
2„513.987
$ 9,416,125.00
Note (2) Bonds dated September 1, 1966, registered as to principal and
as to interest, Ordinance number 1508
Paying agent: Republic National Bank, Dallas, Texas
Principal date: June I
Interest rates: 4.10% from issue date to June 1, 1970;
4 1/2% thereafter until paid
City of Fayetteville, Arkansas Exhibit "D"
Water and Sewer Department
Proposed Issue of Water and Sewer Revenue Bonds (11
Interest
Year
Principal
February 1
August 1
Total
1969
$
$ $
25,850.00
$ 25,850.00
1970
25,000.00
27,025.00
28,200.00
80,225.00
1971
16,000.00
27,450.00
27,450.00
70,900.00
1972
17,000.00
26,970.00
26,970.00
70,940.00
1973
18,000.00
26,460.00
26,460.00
70,920.00
1974
19,000.00
25,920.00
25,920.00
70,840.00
1975
21,000.00
25,350.00
25,350.00
71,700.00
1976
18,000.00
24,720.00
24,720.00
67,440.00
1977
20,000.00
24,180.00
24,180.00
68,360.00
1978
23,000.00
23,580.00
23,580.00
70,160.00
1979
2,000.00
22,890.00
22,890.00
47,780.00
1980
1,000.00
22,830.00
22,830.00
46,660.00
1981
5,000.00
22,800.00
22,800.00
50,600.00
1982
4,000.00
22,650.00
22,650.00
49,300.00
1983
8,000.00
22,530.00
22,530.00
53,060.00
1984
8,000.00
22,290.00
22,290.00
52,580.00
1985
9,000.00
22,050.00
22,050.00
53,100.00
1986
9,000.00
21,780.00
21,780.00
52,560.00
1987
15,000.00
21,510.00
21,510.00
58,020.00
1988
17,000.00
21,060.00
21,060.00
59,120.00
1989
19,000.00
20,550.00
20,550.00
60,100.00
1990
22,000.00
19,980.00
19,980.00
61,960.00
1991
21,000.00
19,320.00
19,320.00
59,640.00
1992
18,000.00
18,690.00
18,690.00
55,380.00
1993
24,000.00
18,150.00
18,150.00
60,300.00
1994
32,000.00
17,430.00
17,430.00
66,860.00
1995
31,000.00
16,470.00
16,470.00
63,940.00
1996
30,000.00
15,540.00
15,540.00
61,080.00
1997
31,000.00
14,64o.00
14,640.00
60,280.00
1998
32,000.00
13,710.00
13,710.00
59,420.00
1999
35,000.00
12,750.00
12,750.00
60,500.00
2000
38,000.00
11,700.00
11,700.00
61,400.00
2001
352,000.00
10,560.00
10,560.00
373,120.00
940.000.00
663.535.00 S 690.560.00
S 2.294.095.00
Note (1)
Paying agent: Republic National Bank,
Dallas Texas
Principal date: August 1
Interest rates: 5
1/2% for the first six
months after
issue date
5
3/4% for the next six
months
6%
thereafter
5
II
Exhibit "E"
rtment
sues and Proposed Bond Issu
1963 Issue
1966 Issue
Proposed Issue
Year
Exhibit ''C'
Exhibit ''C''
Exhibit 'D''
Total
1969 $
292,331.25
$ 176,300.00
$ 25,850.00
$ 494,481.25
1970
292,862.50
•184,900.00
80,225.00
557,987.50
1971
293,231.25
193,500.00
70,900.00
557,631.25
1972
293,437.50
193,500.00
70,940.00
557,877.50
1973
293,481.25
193,500.00
70,920.00
557,901.25
1974
293,162.50
193,500.00
70,840.00
557,502.50
1975
292,475.00
193,500.00
71,700.00
557,675.00
1976
296,525.00
193,500.00
67,440.00
557,465.00
1977
295,312.50
193,500.00
68,360.00
557,172.50
1978
293,693.75
193,500.00
70,160.00
557,353.75
1979
291,662.50
217,937.50
47,780.00
557,380.00
1980
294,350.00
216,812.50
46,660.00
557,822.50
1981
291,756.25
215,687.50
50,600.00
558,043.75
1982
293,881.25
214,562.50
49,300.00
557,743.75
1983
290,725.00
213,437.50
53,060.00
557,222.50
1984
292,345.00
212,312.50
52,580.00
557,237.50
1985
293,650.00
211,187.50
53,100.00
557,937.50
1986
294,585.00
210,062.50
52,560.00
557,207.50
1987
290,242.50
208,937.50
58,020.00
557,200.00
1988
290,622.50
207,812.50
59,120.00
557,555.00
1989
290,632.50
206,687.50
60,100.00
557,420.00
1990
290,272.50
205,562.50
61,960.00
557,795.00
1991
497,687,50
59,640.00
557,327.50
1992
502,612.50
55,380.00
557,992.50
1993
496,862.50
60,300.00
557,162.50
1994
490,662.50
66,860.00
557,522.50
1995
493,787.50
63,940.00
557,727.50
1996
496,012.50
61,080.00
557,092.50
1997
497,337.50
60,280.00
557,617.50
1998
497,762.50
59,420.00
557,182.50
1999
497,287.50
60,500.00
557,787.50
2000
495,912.50
61,400.00
557,312.50
2001
373,120.00
373,120.00
$
S 9.416.125.00
$18.15
S 2.29 .095.00
1.237.50
The maximum annual debt service charge occurs in 1981 - $558,043.75 to Exhibit "A"
6