HomeMy WebLinkAboutOrdinance 1653 � • • , f
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ORDINANCE NO ./A
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
WATERWORKS AND SEWER REVENUE BONDS , SERIES
1969 , 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 (the " 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 (the " Engineering Reports " ) , and the Board
of Directors and officials of the City and the Waterworks and Sewer Department
have studied the Engineering Reports , conferred with the consulting engineers
and otherwise investigated the extensions , betterments and improvements re -
flected therein (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 and to which reference may be had for the
details of the improvements and the estimates of cost) should be accomplished ,
and that there should be issued at this time $ 940 , 000 in principal amount of
Waterworks and Sewer Revenue Bonds , Series 1969 (the " bonds " or the " bonds
of this issue " ) ; and
MICROFILMED
DATE OCT 1 1 1978
REEL_
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WHEREAS the City has outstanding at this time $ 4 , 420 , 000 in
principal amount of Waterworks and Sewer Revenue Refunding Bonds dated
June 1 , 1963 issued under and secured by the provisions of Resolution 7 - 63 ,
adopted and approved on April 8 , 1963 ( " Resolution 7 - 63 " ) and $ 4 , 300 , 000
in principal amount of Waterworks and Sewer Revenue Bonds , Series 1966 ,
dated September 1 , 1966 , issued under and secured by the provisions of
Ordinance No . 1508 , adopted and approved August 8 , 1966 ( "Ordinance
No . 1508 " ) (both outstanding issues being collectively referred to as the
" Outstanding bonds " ) ; 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 (and Section 14 ( 2 ) of Ordinance No . 1508 ) 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 accom -
plish the construction of the improvements and to carry out the authority con-
ferred by this Ordinance and 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 ,
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Series 1969 , are hereby authorized and ordered issued in the aggregate
principal amount of $ 940 , 000 . The bonds shall be dated February 1 , 1969
and interest thereon shall be payable on August 1 , 1969 and semiannually
thereafter on February 1 and August 1 of 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 . The bonds will
bear interest at the rate of 5 1/2 % per annum for the first six months (due
August 1 , 1969 ) , at the rate of 5 3/4 % per annum for the next six months
(due February 1 , 1970) , and at the rate of 6 % 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
(August 1)
1970 R- 1 $ 25 , 000
1971 R- 2 16 , 000
1972 R- 3 17 , 000
1973 R- 4 18 , 000
1974 R- 5 19 , 000
1975 R- 6 21 , 000
1976 R- 7 18 , 000
1977 R- 8 20 , 000
1978 R-9 23 , 000
1979 R - 10 21000
1980 R- 11 11000
1981 R- 12 51000
1982 R- 13 41000
1983 R- 14 81000
1984 R- 15 8 , 000
1985 R - 16 91000
1986 R- 17 91000
1987 R - 18 15 , 000
1988 R - 19 17 , 000
1989 R- 20 19 , 000
1990 R - 21 22 , 000
1991 R- 22 21 , 000
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1992 R- 23 18 , 000
1993 R- 24 24 , 000
1994 R- 25 32 , 000
1995 R- 26 31 , 000
1996 R -27 30 , 000
1997 R- 28 31 , 000
1998 R- 29 32 , 000
1999 R- 30 35 , 000
2000 R - 31 38 , 000
2001 R-32 352 , 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 holder 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 registrable as to principal only or as
to principal and interest , 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 the 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 . The City will cause such coupon bonds to be authen -
ticated by Republic National Bank of Dallas , Dallas , Texas (the " Paying Agent " )
and delivered to the registerbd holder of the fully registered bond upon surrender
and cancellation of the fully registered bond . The City shall at the time of
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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 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 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 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 :
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(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 1969
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 Arkan-
sas (the " City " ) , for value received , promises to pay to Republic National Bank
of Dallas , Dallas , Texas or assigns (the " Payee " ) the principal sum of
DOLLARS
on the first day of August , 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 5 1/2% per annum for the first six months (due August 1 , 1969 ) , at the rate of
5 3/4% 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 .
Payment of principal and interest shall be made at the office of Republic National
Bank of Dallas , Dallas , Texas (the " 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 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
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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 Nine Hundred Forty
Thousand Dollars ($ 940 , 000) in principal amount , issued initially as fully re -
gistered bonds , designated " City of Fayetteville , Arkansas Waterworks and
Sewer Revenue Bonds , Series 1969 " , dated February 1 , 1969 (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 " ) and paying necessary expenses incidental thereto .
The bonds are issued pursuant to and in full compliance with the Con-
stitution 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 Arkan-
sas 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 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 System . There is presently outstanding an issue of City of
Fayetteville Waterworks and Sewer Revenue 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
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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 and Ordinance No . 1508) for
a detailed statement of the nature and extent of the security , the rights and obli-
gations of the City and the registered holders of the bonds and the terms and con-
ditions 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 reason-
able 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 or as to principal and interest , in the denomination of $ 1 , 000 or $ 5 , 000
each , in the aggregate principal amount equal to the unpaid principal amount of
this bond , and in the form of coupon bond provided for in the authorizing ordi-
nance .
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
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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 accured 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 (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 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 re-
demption 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 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 authen-
ticated 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 .
CITY OF FAYETTEVILLE , ARKANSAS
By facsimile signature
Mayor
ATTEST:
City Clerk
(SEAL)
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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 1969 , dated February 1 , 1969 , aggregating $ 940 , 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
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PAYMENT RECORD
Name of Paying
Principal Agent Authorized
Principal Balance Interest Official and
Due Date Payment Due Payment Date Paid Title
August 1 ,
1969 _
February 1 ,
1970
August 1 ,
1970
February 1 ,
1971
August 1 ,
1971
February 1 ,
1972
August 1 ,
1972
February 1 ,
1973
August 1 ,
1973
February 1 ,
1974
August 1 ,
1974
February 1 ,
1975
August 1 ,
1975
February 1 ,
1976 _
August 1 ,
1976
February 1 ,
1977
