HomeMy WebLinkAboutOrdinance 1560 d o',1 / ORDIN-;MCE N0 , 1560 GVAA,
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF SANITATION ISR M01T REV34UE BONDS ;
SETTING U^ CERT/.IN FUNDS; PRESCRIBING OTHER iiATTERS RELATING THER-TO ; AND DECLARING
AN EMERGENCY
WHEREAS it has been found by the Board of Directors of the City of Fayetteville ,
Arkansas ( called "City" ) that the garbage and rubbish collection, hauling and disposal
service ( called "Sanitation System" or "System" ) presently serving the City is in-
adequate for the needs of the City and its inhabitants ; and
WHEREAS the Board of Directors has determined that the Sanitation System should
be improved and extended and has accepted a special report and estimates of costs
of the needed improvements and extensions , which report is on file with the City
Clerk and to which reference may be made by any interested person, and which in
general calls for the following improvements " purchase of tracks , trailers ,
containers and other equipment necessary for the collectionand disposal of garbage
and rubbish, construction of expanded facilities at the City Shop to be used in
the operation of the Sanitation System, purchase of trucks and other equipment
necessary for the supervision of the Sanitation System (which will be hereafter
referred to as the "improvements " ) , all at an estimated cost of $50,000, in-
cluding legal and other necessary expenses incidental to the purchase and
construction of the improvements and to the issuance of revenue bonds ; and
V1HEREAS3the City can obtain funds with which to pay for said improvements
by the issuance of revenue bonds to be repaid from sanitation service fees ; and
WHEREAS the 6ity has made arrangements for the sale of its $50, 000 City of
Fayetteville 4 . 64% Sanitation Improvement Revenue Bonds dated October 1 , 1967
and due on July 1 in each of the years 1968 to 1980, inclusive, to T . J . Raney
& Sons , Little Rock, Arkansas ( called "purchaser" ) , and the purchaser has elected
to convert said bonds to an issue of $52, 075 in bonds bearing interest at the
rate of 4% per annum, and maturing as hereafter set forth;
NOV, THERRFDRE, BE IT ORDAINED by the Board of Directors of the City of
Fayetteville , Arkansas :
SECTION 1 . That the purchase and erection of said improvements be , and the
same are hereby approved, ratified and confirmed .
SECTION 2 . That the sale of $50,000 in bonds bearing interest at thexate of
4 .64%, maturing as set forth above , to T . J . Raney & Sons , Little Rock, Arkansas,
and the conversion of said bonds to an issue of $52,075 in bonds bearing interest
at the rate of 4% per annum, as set forth below, be, and the same are hereby,
approved and confirmed .
SECTION 3 . The City has outstanding an issue of Sanitation Improvement
Revenue Bonds , dated July 1 , 1965 ( called 111965 Bonds " ) , authorized by Ordinance
No . 1449 of the ordinances of the City adopted and approved on June 21 , 1965 .
The applicable provisions of Ordinance No . 1449 ( referred to above ) permit the
issuance of adc.itional parity bonds ( Section 16 thereof) . It is hereby found
and declared that the conditions set out in Section 16 of Ordinance No . 1449 have
been fully met and complied with and that, therefore, th bonds now being issued
are issued on a parity of pledge, lien and security on the Sanitation System
Revenues with the outstanding 1965 Bonds . FniC.:UFIUTA D
y DATE. ��9
Page 2
SECTION 4 . That there are hereby authorized and ordered issued City of
Fayetteville, Arkansas , Sanitation Improvement Revenue Bonds Series 1967, in the
total amount of $52, 075, the proceeds of the sale of which are necessary to pay
for said improvements . The bonds shall be dated October 1 , 1967, tend interest
shall be payable semiannually on January 1 and July 1 of each year commencing
January 1 , 1968. The bonds shall be numbered consecutively from 1 to 53 ,
inclusive, and shall be in the denomination of $1 , 000 each, except Bond No . 4
which shall be in the denomination of $75, shall bear interest at the rate of
4% per annum, whicb shall be evidenced by interst coupons , and the principal
and interest shall be payable in lawful money of the United States of America
upon presentaion of the bond or proper coupon at the office of Worthen Bank &
Trust Company, Little Rock, Arkansas , The bonds shall be negotiable coupon
bonds payable to bearer and shall mature on July 1 of edach year as follows ,
but shall be callabe for payment prior to maturity as hereafter set forth :
YEAR BOND NO , AMOUNT
1968 1 - 4 $3 ,075
1969 5 - 7 3, 000
1970 8 -11 43000
1971 12 -15 4,000
1972 16 -19 43000
1973 20 -23 4,000
1974 24 -27 4,000
1975 28 -31 41000
1976 32 -35 4, 000
1977 36 -39 4,000
1978 40 -43 4,000
1979 44 -48 5 ,000
1980 49 -53 5 , 000
SECTION 5 . That the City has examined the computation by which an issue of
$50, 000 in bonds bearing interest at the rate of 4 . 64% maturing in the pears 1968
through 1980 has been converted to ar. issue of $52,075 in bonds bearing interest
at the rate of 4% per annum, as above set forth, and has found that by virtue
thereof the City will receive no less and pay no more than it would receive and
pay if the bonds were not converted .
SECTION 6 . That the bonds shall be executed on behalf of the City by the
Mayor and City Clerk (with either the facsimile or manual signature of the
Mayor and the manual signature signature of the City Clerk) and shall have
impressed ther on the seal of the City. Interest coupons attached to the bonds
shall be signed by the facsimile signature of the Mayor, and the facsimile
signa.tuseof the Mayor lithographed or printed on the bonds or coupons shall have
the same force and effect as if he had signed each of said bonds and coupons .
The bonds together with interest thereon shall be payable solely out of the Sanitation
Revenue Bond Fund, as hereafter set forth, and shall be valid claim of the holders
thereof only against such fund and the amount of revenues pledged to such fund,
which revenues are hereby pledged and mortgaged in an amount sufficient to provide
for the equal and ratable payment of said bonds . The bonds and interest . thereon
shall not constitute an indebtedness of the City within any constitutional or
statutory limitation .
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SECTION 7 . That the bonds and coupons shall be in substantially the following
form, and the Mayor and City Clerk are hereby expressly authorized and directed to
make all recitals contained therein :
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
4% SANITATION IMPROV&,,1ENT REVENUE BOND, 1967 SERIES
No . $
KNOW ALL MEN BY THESE PRESENTS :
That the City of Fayetteville, County of Washington, State of Arkansas,
acknowledges itself to owe , and for value received , hereby promises to pay to
bearer, solely from the special fund provided as hereinafter set forth, the
principal sum of
DOLLARS
in lawful money of the U nited States of America on the first day of July,
19 , and to pay solely from said special fund interest hereon at the rate of
four per cent ( 4%) per annum from date, semiannually on the first days of
January and July, commencingJanuary 1 , 1968, upon presentation and surrender of the
annexed coupons as they severally become due . Both principal an( interest on this
bond are made payable at the principal office of Worthen Bank & Trust Company,
Little Rock, Arkansas .
This bond is one of an issue of fifty-three ( 53) revenue bonds , aggregating
Fifty-Two Thousand Seventy-Five Dollars ( $52,075 ) , dated October 1 , 1967, and
numbered from one ( 1 ) to fifty-three ( 53 ) , inclusive, all of like tenor and
effect except as to number, denomination , rate of interest , maturity and right of
prior redemption, issued for the purpcPe of acquiring and constructing Sanitation
System improvements ( described in the authorizing ordinance) and paying necessary
expenses incidental thereto( called the "bonds " ) .
The bonds are issued in full compliance with the Constitution and laws of the
State of Arkansas , , and pursuant to Ordinance No . of the Board of Directors of
Fayetteville , Arkansas , duly adopted anC approved on the day of ,
1967 ( called "auth6rizing ordinance" ) , and do not constitute an indebtedness
of the City of Fayetteville within any constitutional or statutory limitations .
The bonds are not general obligations of the City but are special obligations
payable solely from net revenues derived from the Sanitation System( defined in the
authorizing ordinance) which have been duly pledged to the payment of the principal
of and interest on the bonds . The bonds are issued on a parity as to lien, pledge
and security with the outstanding Sanitation Improvement Revenue Bonds of the City,
dated July 1 , 1965 ( called 111965 Bonds " ) . A sufficient amount of the net revenues
are to be set aside in the special fund being maintained for the payment of the
principal of, interest on and pa yingagent ' s fees in connection with the to nds and
identified as the Sanitation Revenue Bond Fund . Reference is hereby made to the
authorizing ordinance for a detailed statement of the revenues pledged for the
payment of the fonds , the nature and extent of the security for the bonds , and
the rights and obligations of the City, the Trustee and the bondholders .
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The City has fixed and has covenanted and agreed to maintain rates for the services
of the Sanitation System which shall be sufficient at all times to provide for the
proper and reasonable expenses of operation end maintenance of the Sanitation
System, the maintenance of a separate Depreciation Fund for necessary replacements
to the Sanitation System, and to provide 150% fo the maximum amount that will
become due in any year for principal, interest and paying agents ' s fees on all
outstanding bonds payable from the revenues of the Sanitation System ( being the
1965 Bonds, these bonds and any subsequently issued parity bonds ) .
The bonds shall be negotiable under the laws of the State of Arkansas and are
issued vath the intent that the laws of the State of Arkansas shall govern the
construction thereof.
The bonds shall be callable for payment prior to maturity in inverse numerical
order at par and accrued interest as follows : from the unexpended proceeds from the
sale of the bonds of this issue and from surplus revenues of the Sanitation System
on any interest payment date; from funds from any source on any interest payment
date on and after July 1 , 1972 • Notice of the call for redemption shall be published
one time i:, 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 pond being called, with the publication to be at least fifteen ( 15 ) days
prior to the redemption date, and after the date fixed for redemption :,Rch bond
so called shall cease to bear interest , provided funds for its payment are on
deposit with the paying agent at that time .
The bonds shall not be valid until they shall have been authenticated by
the certificate hereon duly signed by Worthen Bank & Trust Company, Little Rock,
Arkansas , Trustee.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts , conditions and
things required to exist , happen and be performed in due time, form end manner, as
required by law; that the indebtedness represented by the bonds does not exceed
any constitutional or statutcry limitations ; and that sufficient revenues derived
from the operation of the Sanitation System have been pledged to and will be set
aside into said special fund for the payment of the principal of and interest on the
bonds .
IN WITNESS WHEREOF the City of Fayetteville , Arkansas , by its Board of Directors
has caused this bond to be signed by the facsimile signature of the Mayor and the
manual signature of the City Clerk, and sealed with the corporate seal of said City,
and has caused the interest coupons hereto attached to be executed by the facsimile
signature of the Mayor, all as of the first day of October , 1967 .
CITY OF FAYETTEVILLE, ARKANSAS
BY ( facsia,ile signature )
ATTEST : Mayor
CITY CLERK
(SEAL)
Page 5
(Form of Coupon)
$ No .
January,
On the first day of July, 19. the City of Fayetteville , Washington
County, Arkansas , unless the bond to which this coupon is attached is paid prior
thereto , hereby promises to pay to bearer, solely out of the funds specifie d in the
bond to i•hich this coupon is attached .
DOLLARS
in lawful money of the United States of America at the principal office of Worthen
Bank & Trust Company, Little Rock, Arkansas , Paying Agent, being six ( 6 ) rponths '
interest then due on its Sanitation Improvement Revenue Bond ' Series 1967 , dated
October 1 , 1967, and numbered
CITY OF FAYETTEVILLE, ARKANSAS
By facsimile signature )
Mayor
On each bond shall appear the following :
CERTIFICATE
Worthen Bank & Trust Company, Little Rock , Arkansas , hereby certifies that this
is one of a series of bonds described herein aggregating $52,075 numbered from
1 to 53 , inclusive, all of like tenor and effect except as to number, denomination,
rate of interest , maturity and right of prior redemption .
WORTHEN BANK & TRUST COMPANY
LITTLE ROCK , ARKANSAS
By
Authorized Signature
SECTION 8. That the rates to be charged for services furnished by the Sanitation
System heretofore fixed by Ordinance No . 1555 of the ordinances of the City, passed
and approved on the 17th day of July, 1967 , and the conditions , rights and obligations
pertaining thereto set out in said Ordinance No . 1555 are hereby ratified and confirmed .
The said rates shall never be reduced below an amount which i:rill produce sufficient
revenues at all times to provide for the proper and reasonable expenses of operation
and maintenance of the Sanitation System , the maintenance of a separate Depreciation
Fund for necessary replacements to the Sanitation System, and to provide 150% of the
maximum amount that will become due in any year for principal, interest amid paying
agent ' s fees on all outstanding bonds payable from the revenues of the Sanitation
System ( being the 1965 Bonds , the bonds of this issue and any subsequent issued
parity bonds ) . And, the City covenants and agrees that it will maintain rates
for the services of the system so that the revenues produced therefrom will always
be sufficient for the above set forth purposes .
SECTION 9 • Inasmuch as the bonds are issued on a parity of security with the
1965 Bonds all provisions of Ordinance No . 1 "9 adopted and approved on the 21st day
Page 6
of June, 1965 , ( authorizing and securing the 1965 Bonds ) shall, except in those
instances that the provisions deal specifically with the 1965 Bonds , inure to the
benefit of an be applicable to these bonds to the same extent as though set forth
herein . To that end the provisions of Ordinance No . 1449 are incorporated herein
by reference and shall continue to be applicable to the bonds of this issue even
though the 1965 Bonds might be paid or payment provided for prior to the final
payment or the making of provisions for the payment of these ponds .
Specifically,
( a ) the Sanitation Fund created and being maintained pursuant to the provisions
of Section 9 of Ordinance it 1449 shall continue ;
( b) the Sanitation System Operation and Maintenance Fund created by and being
maintained pursuant to the provisions of Section 10 of Ordinance No . 1449 shall con-
tinue .
( c ) the Sanitation Revenue Bond Fund created by and being maintained pursuant
to the provisions of Section II of Ordinance No . 1449 shall continue; and
( d ) the Sanitation Depreciation Fund created by and being maintained pursuant
to the provisions of Section 12 of Ordinance No . 1449 shall continue .
With particular reference to the Sanitation Revenue Bond Fund, the required
monthly deposits therein shall be increased by the amount necessary to provide
for the payment of principal of, interest on and paying agent ' s fees in connection
with the bonds and to increase the dept service reserve to the sum of $22 , 000 and
maintained at that level . To this end the principal of and interest on the bonds
mature according to the following schedule :
Interest
YEAR BOND NOS . AMOUNT JANUARY 1 JULY I TOTAL
1968 1 - 4 $3 ,075 . 00 $ $ 1 , 562 . 25 $43637. 25
1969 5 - 7 3 , 000 . 00 980 . 00 980 . 00 42960 .00
1970 8 - 11 4,000 .00 920 .00 920 . 00 5 , 840. 00
1971 12 - 15 4, 000 .00 840 .00 840 .00 5 , 680 .00
1972 16 - 19 4,000 .00 760 .00 760. 00 5020 .00
1973 20 -23 42000 . 00 680 .00 680.00 5 , 360 .00
1974 24 -27 4, 000 . 00 600, 00 600.00 5, 200.00
1975 28 -31 49000 . 00 520 .00 520 . 00 5, 040.00
1976 32 -35 45000 . 00 440 .00 440 . 00 4, 880 .00
1977 36 -39 4 ,000 . 00 360 . 00 360 .00 4, 720 .00
1978 40 -43 4,000 . 00 280 .00 280 . 00 4, 560 ,00
1979 44 -48 5 ,000 . 00 200 .00 200 .00 5 , 400 .00
1980 49 -53 5,000.00 100000 100 . 00 5 , 200 ,00
The required monthly payments into the Sanitation Revenue Bond Fund shall be
increased by one-fifth ( 1 /5 ) of the next installment of interest and one-tenth ( 1 /10)
of the next installment of principal, plus the amount sufficient to provide for
the paying agent ' s fees , until the reserve for contingencies is increased to the
required level , and thereafter, so long as the reserve is maintained in the required
amount , the additional payments into the Sanitation Revenue Bond Fund shall be
one-sixth ( 1 /6 ) of the next installment of the interest and one-twelfth ( 1 /12 ) of
the next installment of principal, plus the amount to provide for the paying
agent ' s fees ,
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Without limiting the genFrality of the foregoing, all provisions set forth in
Ordinance No . 1449 pertaining to the handling, investing, and disbursing of moneys
in the various funds shall inure and be fully applicable to these bonds .
SECTION 10 . With reference to the issuance of additional bonds , the pro-
visions of Section 16 of Ordinance No . 1449 shall be applicable to these bonds
as aforesaid, with the language "the bonds then outstanding" to include the
1965 Bonds and these bonds .
SECTION 11 . That the bonds authorized hereby and issued hereunder shall be
callable for pay4Lent prior to maturity in accordance with the terms set out in
the bond form.
SECTION 12. ( a) That when the bonds have been executed by the Mayor and
City Clerk and the seal of the City impressed as herein provided, they shall be
delivered to the Trustee, which shall authenticate them and deliver them to the
purchaser upon payment of cash to the Trustee of the purchase price and accrued
interest from Octrober 1 , 1967 to date of delivery.
( b) The Trustee shall deposit the accrued interest in the
Sanitation Revenue Bond Fund .
( c) The Trustee shall remit the remaining balance of the proceeds
of the sale of the bonds for deposit in a special account designated 111967 Construc-
tion Fund" with a depository that is a member of the Federal Deposit Insurance
Corporation to be designated in a letter of instructions delivered to the Trustee,
signed by the Mayor, at the time of the . Closing of the bond issue . The moneys
in the 1967 Construction Fund in excess of the amount insured by the Federal
Deposit Insura ce Corporation shall be continuously secured by bonds or other
direct or fully guaranteed obligations of the United States of America, except
that any moneys invested as hereafter authorized need not be so secured.
( d) The moneys in the 1967 Construction Fund shall be disbursed
solely in payment for the improvements as hereinabove defined, including expenses
necessary and incidental thereto and to the issuance of the bonds .
( e ) That when the construction of the improvements shall have
been completed, as evidenced by a letter so stating, signed by the Mayor and
City Clerk, th6 depository with which the 1967 Construction Fund is deposited
shall pay or transfer any remaining balance pursuant to said letter for the
sole purpose of calling the bonds of this issue for payment prior to maturity,
or if insufficient to call one or more bonds , for transfer into the Sanitation
Revenue Bond Fund .
SECTION 13 . Moneys held for the credit of any fund referred to in this
ordinance may, at the option of the City, be invested and reinvested pursuant to
direction of the City in direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States
Government , which shall mature, or which shall be subject to redemption by the
holder thereof at the option of the holder, not later than the date or dates when
the moneys held for the credit of the particular fund will be required for the
purpose intended . Obligations so purchased as an investment of moneys in any
such fund shall be placed in the custody of the Treasurer and shall be deemed
at all times to be a part of such fund, and the interest accruing thereon and any
profit realized from such investment shall be credited to such fund, and any
loss resulting from such investment shall be charged to such fund .
• 1 .. .. .-
Page ti
SECTION 14 . That the provisions of this ordinance shall constitute a binding
contract between the City and the holders of the outstanding bonds and coupons
issued hereunder , and the City will utrictljr adhere to the provisions hereof . The
holders of not less than seventy-five per cent ( 75% ) in aggregate principal amount
of the bonds then outstanding shall have the right from time to time to consent to
and approve the adoption by the City of such ordinance supplemental hereto as shall
be necessary or desirable for the purpose of modifying, altering, amending, adding
to or rescinding in any particular any of the terms or provisions contained in
this ordinance or in any supplemental ordinance ; provided , however, that nothing
herein contained shall permit or shall be const-Med as permitting ( a) an extension
of the maturity of the principal of or the interest on any bond ipsued hereunder,
or, ( b) a reduction in the principal amount of any bond or the :ate of interest
therein, or ( c ) the creation of a lien upon or a pledge of revenues other than
as expressly authorized by th@ appropriate provisions of this ordinance as now
adopted, or ( d) the creation of a privilege of priority of any bond or bonds over
any other bond or bonds , or ( e ) a reduction in the aggregate principal amount of
the bbnds required for consent to s:ch supplc-neaial ordinance
SECTION 15 , That the Trustee of the bonds irs•:ed hereunder shall be Worthen
Bank & Trust Company, Little Rock, Arkansas , The Trustee shall only be responsible
for the exercise of good faith and reasonable prudence in the execution of its
trust . The recitals in this ordinance and in the face of the bonds are the
recitals of the City and not of the Trustee . The Trustee shall not be required to
take any action as Trustee unless it shall have been requested to do so in writing
by the holders of not less than ten per cent ( 10% ) in principal a mount of the bonds
of this issue then outstanding and shall have been offered reasonable security
and indemnity against the costs , rxpenses and liabilities to be incurred therein
or thereby. The Trustee may resign at any time by ten ( 10 ) days ' notice in
writing to the Mayor, and the majority in value of the holders of the outstanding
bonds of this issue at any time , with or ::_i' hout cause, may remove the Trustee .
In the event of a vacancy in the office of Trustee, either by resignation or by
removal, the majority in value of the holders or the outstanding bonds of this
issue may appoint a new Trustee, such appointment to be evidenced by a written
instrument or instruments filed with the Cit;; Clerk . If the majority in value of
the holders of the outstanding bonds of this issue shall fail to fill a vacancy
within thirty ( 30 ) days after the same shall occur, then the City shall forthwith
designate a new Trustee by a uTitten instrument filed in the office of the City
Clerk . The original Trustee and any successor Trustee shall file a written
acceptance and agreement to execute th:. trust imposed upon it or them by this
ordinance, but only upon the torms and conditions set forth in this ordinance
and subject to the provisions of this ordinance , to all of which the respective
holders of the bonds agree . Such written acceptance shall be filed with the City
Clerk, and a copy thereof shall be placed in the bond transcript . Any successor
Trustee shall have all the po::= herein gtanted to the original Trustee . The
old Trustee upon resignation or removal shall cease to be Paying Agent and this
successor trustee shall automatically beccze Paying Agent .
SECTION 16 . That the provisions of this ordinance are hereby declared to
be separable , and if any provision shall for any reason be held illegal or invalid
such holding shall not affect the validity of the remain3er of the ordinance .
SECTION 17 . That all ordinances and parts of ordinances in conflict herewith
are hereby repealed to the extent of such con-flict .
SECTION 18. That it is herebv ascertaind and declared that eaid improvements
are necessary to the health and safety of the inhabitants of the City, and that
the construction of said improvements is necessary in order to alleviate an
unhealthy and unsafe condition which exists in the City. 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 30 , 1967
APPROVED : 2)
1
ATTEST : L o DON TRUMB02 MAYOR
s 'UGr�r_�tiv`��
GEORGEW 6ZAVIS , CITY CLERK
( SEAL )
CERTIFICATE
The undersigned, Clerk of the City of Fayetteville , Arkansas ,hereby certifies
that the foregoing pages numbered 1 to 18, inclusive, are a true and correct copy
of Ordinance No . 1560, adopted at a Special session of the Board of Directors of
the City of Fayetteville, Arkansas , held at the regular meeting place of the Board
in said City at 44:30 o ' clock , P .M. CDST, on the 30th day of August , 1967,
and that said ordinance is of record in Ordinance Record Book H , Page ,
now in my possession 22
GIVEV under my hand and seal this d� day of 1967.
CITY CLERK