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HomeMy WebLinkAboutOrdinance 1965 T7 n N R E C 0 3 DEC 13 Pull 3'. 33 ORDINANCE NO . 1965 GTr, ;! CC'J:JTY it I', Y " R L C ,y AN ORDINANCE PROVIDING FOR THE ISSUANCE OF WATERWORKS AND SEWER REFUNDING AND CONSTRUCTION REVENUE BONDS , 1. 974 SERIES A , BY TL-TE CITY OF FAYETTEVILLE , ARKANSAS FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING BONDS AND FINANCING THE COST OF CONSTRUCTING EXTENSIONS , BETTER- MENTS AND IMPROVEMENTS TO THE "ATATERWORKS AND SEWER SYSTEM , TO BE LOCATED WITHIN 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 City of Fayetteville , Arkansas (the " City " ) owns and . operates a municipal Waterworks and Sewer System (the " System " ) ; and WHEREAS , the City has outstanding an issue of Waterworks and Sewer Revenue Refunding Bonds , dated June 1 , 1963 (the " 1963 Bonds " ) , in the original principal amount of $ 5 , 313 , 000 of which $ 3 , 695 , 000 in principal amount are now outstanding , issued under and secured by the provisions of Resolution No . 7- 63 of the City , adopted and approved on April 8 , 1963 ( " Resolution No . 7- 63 " ) ; an issue of Waterworks and Sewer Revenue Bonds , Series 1966 , dated September 1 , 1966 (the " 1966 Bonds " ) , in the original principal amount of $4 , 300 , 000 of which $ 4 , 300 , 000 in principal amount are now outstanding , issued under and secured by the provisions of Ordinance No . 1508 , adopted and approved on August 8 , 1966 (" Ordinance No . 1508 " ) ; and an issue of Waterworks and Sewer Revenue Bonds , Series 1969 , dated February 1 , . 1969 (the " 1969 Bonds " ) , in the original principal amount of $ 940 , 000 of which $ 865 , 000 in principal amount are now outstanding , issued under and secured by the provisions of Ordinance No . 1653 , adopted and approved February 3 , 1969 (" Ordinance No . 1653 " ) ; and WHEREAS , the Board of Directors has determined that it would be in the best interest of the City to refund the outstanding 1969 Bonds ; and WHEREAS , it is necessary that the City construct extensions , betterments and improvements to the System (the " improvements " ) , which improvements will be located within the corporate limits of the City; and MICROFILMED DATE OCT r 3 1978 REEL oin. 862 Page 2 WHEREAS , the estimated cost of the refunding and the improvements and of authorizing and issuing bonds is $ 3 , 370 , 000 ; and WHEREAS , there has been prepared by a duly qualified consulting engineer a preliminary report and estimates covering the improvements , which have been studied by the Board of Directors and a copy filed in the office of the City . Clerk , to which reference may be made by any interested party ; and WHEREAS , in order to finance such costs it is necessary for the City to issue revenue bonds (the " bonds " ) ; and WHEREAS , the City is authorizing , for issuance simultaneously with the issuance of these bonds , bonds (in the principal amount of $ 1 , 330 , 000 ) for the purpose of financing extensions , betterments and improvements to the System outside the corporate limits of the City (called the " City of Fayetteville , Arkansas Waterworks and Sewer Construction Revenue Bonds , 1974 Series B " but herein the " Series B Bonds " ) , and the Series B Bonds shall be secured by a pledge of System revenues on a parity with the pledge securing these bonds ; and WHEREAS , references herein to " outstanding bonds " shall mean the 1963 Bonds and the 1966 Bonds ; and WHEREAS , bonds can be issued on a parity of security with the outstanding bonds provided in the conditions set forth in Section 19 of Resolution No . 7- 63 (and Section 14 (2 ) of Ordinance No . 1508 ) are 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 refunding and improvements be accomplished as soon as practicable . In this regard , the appropriate officials of the City be and they are hereby authorized to execute all contracts and instruments and take all � n D[FC O P;CF199 11i 1R• '�->. �aa.SYr+� °k4> . ' r..' ... . . , .. .. _ . ... . . : . . . . ...i. ..�, . . ..:.3'...!+"' a .�:. 5. -•nr. Page 3 action _ necessary to accomplish the refunding and the improvements and to carry out the authority conferred 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 of 1933 , as amended , Act No . 132 of the Acts of Arkansas of 1933 , as amended , and Act No , 297 of the Acts of Arkansas of 1937 , as amended , and the decision of the Supreme Court of the State of Arkansas in Harrison v . Braswell , 209 Ark , 10941 194 S , W , 2d 12 (1946 ) , City of Fayetteville , Arkansas Waterworks and Sewer Refunding and Construction Revenue Bonds , 19 ,74 Series A , are hereby authorized and ordered sold in the total principal amount of $ 3 , 370 , 000 for the purposes set forth , in the recitals of this Ordinance . The bonds shall be dated Februaiy 1 , 1974 , shall bear interest payable December 1 , 1974 , and semiannually thereafter on each June 1 and December I . The bonds shall be negotiable coupon bonds payable to bearer but shall be subject to registration as to principal or as to principal and interest , shall be in the denomination of $5 , 000 each and shall be numbered consecutively from 1 - A upwards . The bonds shall mature on June 1 of each year as follows : YEAR AMOUNT YEAR AMOUNT 1975 $ 90 , 000 1985 $ 165 , 000 1976 95 , Ooo 1986 175 , 000 1977 105 , 000 1987 185 , 000 1978 110 , 000 1988 195 , 000 1979 115 , 000 1989 205 , 000 1980 125 , 000 1990 220 , 000 1981 130 , 000 1991 235 , 000 1982 140 , 000 1992 245 , 000 1983 145 , 000 1993 260 , 000 1984 1550000 1994 275 , 000 DEk�I � i � P;1CF ��O � Page 4 Section 3 . The Mayor shall cause. a Notice of Sale to be prepared , select a date for the public sale and publish and otherwise distribute copies of the Notice and other information in such manner as lie shall determine (after consultation with bond counsel and the City ' s fiscal agent) will result in the sale of the bonds on the most favorable terns . The Notice of Sale shall con- tain the usual information , including appropriate redemption provisions . After the sale the Board of Directors shall , by appropriate resolution , confirm the sale of the bonds to the successful bidder and in that resolution shall set forth the details of the bonds , including numbering , rate of interest , redemption provisions and the Trustee and Paying Agent . Section 4 . That 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 bonds may be executed by the facsimile signature of the Mayor and the interest coupons attached to the bonds shall be executed by the facsimile signature of the Mayor , with the facsimile signature of the Mayor to have the same force and effect as if personally signed by him . The bonds must be executed by the manual signature of the City Clerk . The bonds , together with interest thereon , shall be payable solely out of the Bond Fund (hereinafter referred to) and shall be a valid claim of the holders thereof only against the Bond Fund and the revenues pledged to the Bond Fund , which revenues (net revenues de- rived from the operation of the System) are hereby pledged and mortgaged for the equal and ratable payment of_the principal of and iriterest on the bonds and the outstanding bonds and shall be used in accordance with the provisions of Resolution No . 7- 63 , Ordinance No . 1508 and this Ordinance . The principal and interest of the bonds shall not constitute an indebtedness of the City within any constitutional or statutory limitation . Section 5 . 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 ; n Dl 862 P CF 211 ' I i UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE WATERWORKS AND SEWER REFUNDING AND CONSTRUCTION REVENUE BOND , 1974 SERIES A No . $ 5 , 000 KNOW ALL MEN BY THESE PRESENTS : That the City of Fayetteville , County of Washington , State of Arkansas (the " City " ) , acknowledges itself to owe , and for value received , hereby promises to pay to bearer , or if this bond be registered to the registered owner hereof , solely from the special fund provided as hereinafter set forth , the principal sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America on the first day of June , 19_ and to pay interest thereon at the rate of percent %) per annum from the date hereof until paid . Interest is payable June 1 , 19_ , and semiannually thereafter on each December 1 and June 1 . Payment of principal and payment of interest evidenced by coupons shall be at the principal office of (the " Trustee " and " Paying Agent " ) . Payment of interest when registered as to interest , may be by check or draft mailed to the registered owner at his address reflected on the registration book of the City maintained by the Trustee . This bond is one of an issue of Waterworks and Sewer Refunding and Construction Revenue Bonds , 1974 Series A , aggregating Dollars ( $ ) in principal amount , numbered from 1 -A to --A , inclusive , all of like tenor and effect , except as to number , rate of interest , maturity and right of prior redemption (the " bonds " ) issued for the purpose of refunding outstanding Waterworks and Sewer Revenue Bonds , Series 1969 , of the City , dated February 1 , 1969 , paying the costs of constructing extensions , ^ 9 DLII! V � j'iJ lllUt (y 0�.i . i i betterments and improvements to the Waterworks and Sewer System (the " System " ) , and paying the expenses of authorizing and issuing the bonds . The bonds are issued pursuant to and in full compliance with the Con- stitution and laws of the State of Arkansas , including particularly Act No . 131 of the Acts of Arkansas of 1933 , as amended , Act No . 132 of the Acts of Arkansas of 1933 , as amended , Act No . 297 of the Acts of Arkansas of 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 ) , and pursuant to Ordinance No . 1965 of the City , duly adopted and approved on the 4th day of December 1973 , and an implementing resolution (collectively referred to as the "Authorizing Ordinance " ) , and do not constitute an indebtedness of the City within any constitutional or statutory limitation . 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 . The bonds are issued on a parity as to lien , pledge and security with an issue of Waterworks and Sewer Revenue Refunding Bonds , dated June 1 , 1963 , issued pursuant to Resolution No. 7- 63 , adopted and approved on April 8 , 1963 (" Resolution No . 7- 63 " ) and an issue of Waterworks and Sewer Revenue Bonds , Series 1966 , dated September 1 , 1966 , issued pursuant to Ordinance No . 1508 , adopted and approved on August 8 , 1966 (" Ordinance No . 150811 ) (collectively the " outstanding bonds " ) . An amount of System revenues sufficient to pay the principal of and interest on the bonds and the outstanding bonds is 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 No , 7- 63 . Reference i -. hereby made to the Authorizing Ordinance , and to Resolution No . 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 , the Trustee and the holders and registered owners of the bonds and the terms and conditions upon which the bonds are issued , including , without OEFu O P,1CF203 , 1 limitation , the covenant of the City to maintain rates for water and sewer services which shall be sufficient at all times to produce revenues for operation and maintenance expenses , for the payment of the principal of .and interest on the bonds and the outstanding bonds and to maintain the other funds (provided for in the Authorizing Ordinance and in Resolution No ,. 7- 63 and Ordinance No . 1508) at the required levels . The bonds are subject to redemption prior to maturity as follows : Notice of the call for redemption shall be published one time in a newspaper published in the City of Little Rock , Arkansas , and having a general circulation throughout the State of Arkansas . The notice shall give the number and maturity of each bond being called , and the publication shall be at least fifteen (15) days prior to the redemption date . In addition , notice by first class mail shall be mailed , fifteen ( 15) days prior to the redemption date , to the registered owner of each bond registered as to principal or as to principal and interest at the address of such owner reflected on the bond registration book of the City maintained by the Trustee and if all outstanding bonds shall be registered as to principal and interest , then notice by first class mail to the registered i owners shall be sufficient ,, and it shall not be necessary to publish notice of the call . This bond may be registered as to principal 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 . Subject to the provisions for registration endorsed hereon , nothing contained in this bond or in the Authorizing ' 1 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 issued with the intent that the laws of the State of Arkansas will govern its construction . This bond shall not be valid until it shall have been authenticated by the Certificate hereon duly signed by the Trustee . IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all acts , con- ditions and things required to exist , happen and be performed precedent to and in the issuance of the bonds have existed , have happened and have been performed in due time , form and manner as required by law; that the indebtedness represented by the bonds does not exceed any constitutional or statutory limitation ; . and that sufficient revenues have been pledged to and will be set aside into the special fund provided in the Authorizing Ordinance for the purpose of paying the principal of and interest on the bonds . IN WITNESS WHEREOF , the City of Fayetteville , Arkansas , has caused this bond to be executed in its name by the facsimile signature of the Mayor , the manual signature of the City Clerk , and its corporate seal to be affixed , and has caused the interest coupons hereto attached to be executed by the facsimile signature of its Mayor , all as of the first day of February , 1974 . CITY OF FAYETTEVILLE . ARKANSAS By (Facsimile Signature ) Mayor ATTEST : City Clerk (SEAL) eIcFzf)5 (Form of Coupon) No . $ June , On . the first day of December , 19_ , the City of Fayetteville , Washington County , Arkansas , unless the bond to which this coupon is attached is paid prior thereto or unless the bond is registered as to interest in accordance with the provisions pertaining thereto set forth in the bond , hereby promises to pay to bearer , solely from the special fund referred to in the bond , DOLLARS in lawful money of the United States of America , at the principal office of , Arkansas , being six (6) months interest then due on its Waterworks and Sewer Refunding and Construction Revenue Bond , 1974 Series A , dated February 1 , 1974 , and numbered CITY OF FAYETTEVILLE , ARKANSAS By (Facsimile Signature ) Mayor (On each bond shall appear the following : ) CERTIFICATE This is one of the bonds of the City of Fayetteville , Arkansas , described herein , designated Waterworks and Sewer Refunding and Construction Revenue Bonds , 1974 Series A . By Authorized Signature w Pilcr2ffi i PROVISIONS FOR REGISTRATION AND RECONVSRSION This bond may be registered as to principal alone on books of the City , kept by the Trustee 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 assign- ment 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 transferability 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 . Interest accruing on this bond will be paid only on presentation and surrender of the attached interest coupons as they respectively become clue , and notwithstanding the registration of this bond as to principal , ' the appurtenant interest coupons shall remain payable to bearer and shall continue to be 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 coupons 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 registrar and thereafter interest evidenced by such surrendered coupons may be paid by check or draft of the bond registrar at the times provided herein to the registered owner 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 re - converted 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 PACE 207 the coupons representing 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 in the registration blank below whether it then registered as to principal or payable to bearer , Manner of Signature of Date of Registration Name of Registered Owner : Registration : Bond Registrar r r, Page 12 I I Section 6 . It is hereby expressly found and declared that the provisions of Section 19 of Resolution No . 7- 63 (and Section 14 (2 ) of Ordinance No . 1508) 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 . In this regard , the required Certi- ficate of the independent certified public accountant shall be filed in the office of the City Clerk prior to the delivery of the bonds . Section 7 . The City covenants , reaffirms and agrees that all revenues derived from 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 (the " Bond Fund " ) ; (c) Waterworks and Sewer Revenue Refunding Bond Reserve Fund (the " Reserve Fund " ) ; (d ) Waterworks and Sewer Contingency Reserve (the " Contingency Fund " ) ; (e ) Waterworks and Sewer Repair and Replacement Fund (the " Repair and Replacement Fund " ) ; i (f) Waterworks and Sewer Surplus Revenue Fund (the " Surplus Revenue Fund " ) . Section 8 . The City covenants , reaffirms and agrees that so long as any of the principal of or interest on the bonds and outstanding bonds remains outstanding and unpaid , the entire revenues derived from the System shall be set aside when received and deposited in the Waterworks and Sewer Fund . There shall be disbursed therefrom each month such sums as are reasonable and proper for the costs of operation and maintenance of the System , and thereafter the remaining revenues shall be deposited in the Funds 0 [ 1 s f,CE 209 Page 13 referred to in Section 7 of this Ordinance and in the order of priority listed in Section 7. Section 9. The deposits in the Bond Fund shall be made on the first business day of each month (a) in the amounts required to be paid into such fund by Resolution No. 7-63 and Ordinance No. 1508 (for the outstanding r bonds) plus (b) the amounts required for the payment of the principal and interest on the bonds and the Paying Agent's fees as the same become due in accordance with the schedule to be set out in the resolution of the Board of Directors adopted after the sale of the bonds (referred to in Section 3 hereof). Such deposits for the bonds shall be as follows: (a) On the first business day of each month 1/6 of the next succeeding interest payment and Paying Agent's fees to become due on the bonds; (b) On the first business day of each month beginning June 1, 1974, 1/12 of the next maturing principal payment and Paying Agent's fees on the bonds; and (c) Such amounts, if any be necessary, to provide sufficient funds for the interest due June 1, 1974. 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 and 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 and the out- standing bonds, together with the Paying Agent's fees, and for no other purpose. X1,1 S1: PAGE 210 Page 14 Section 1.0. The required level of the Reserve Fund shall be increased by an amount equal to the average annual debt service (principal and.ihterest) on the bonds. At the option of the City, all or any portion of the required increase may be deposited into the Reserve Fund out of the proceeds of the sale of the bonds or the increase (or the part not deposited out of bond proceeds) may be deposited out of revenues over the five-year period ending June 1, 1978 with not less than 20% of the increase (or the part not deposited out of bond proceeds) to be deposited during each of such five years. The Reserve Fund shall be maintained at the required level 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. In the event moneys from the Reserve Fund are utilized for the aforesaid purpose, the Fund shall be restored to the required level from the first moneys in the Waterworks and Sewer Fund available for the purpose. Section 11. There is now on deposit in the Contingency Fund the sum of not less than $100,000. The Contingency Fund shall he maintained at. not less than that 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. In the event moneys from the Contingency Fund are expended for those purposes, or any of them, the Contingency Fund shall be restored to $100,000 from the first funds available in the Waterworks and Sewer Fund, as specified in Section 13 hereof. Section 12. There is now on deposit in the Repair and Replacement Fund the sum of not less than $50,000. The money in the Repair and Replace- ment Fund shall be used solely for the purpose of paying the costs of replacements �F'�1 0[Fi, 822 ? 6E.21 Page 15 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 those purposes, or any of them, the Repair and Replacement Fund shall be restored to $50,000 from the first funds available in the Waterworks and Sewer C. Fund, as specified in Section 13 hereof. Section 13. The deposits required to be made into the Reserve, Con - tingency, 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 9, 10, 11 and 12 hereof, amounts equivalent to such deficiency shall be set apart and paid into the Funds from the first available and unallocated revenues of the System for the following month or months (having the priority of application in the order the Funds are listed in Section 7), and such payments shall be in addition to the amounts hereinabove provided to be otherwise paid into the Funds during such month or months. Section 14. Any revenues remaining in the Waterworks and Sewer Fund after the payments required by Sections 7 through 12 hereof, shall be set aside r and deposited into the Surplus Revenue Fund and, at the option of the City, may be used to call the bonds or the outstanding bonds for redemption or for the con- struction of improvements and betterments to the System, or for any lawful purpose. Section 15. The provisions of Sections 4, 10 through 20 and 23 of Resolution No. 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. A financial statement shall also be filed with the Trustee and Paying Agent. Any reference to "bonds" or Waterworks 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 the incorporating of those l� y D[Pd = PACE 212 Page 16 provisions of Resolution No. 7-63 herein, shall be to make those provisions fully applicable to the bonds of this issue and the language of Resolution No. 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 therewith, are outstanding and unpaid, principal and interest, the City shall always 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, maintaining the Contingency Fund at the required level, maintaining the Repair and Replacement Fund at the required level, and discharging all other obligations of the City under Resolution No. 7-63, Ordinance No. 1508 and under this Ordinance; (2) The provisions of Section 19 of Resolution No. 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 No. 7-63 are intended to be applicable to any funds available for investment (except moneys in the Construction Fund created by Section 17 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 i 4 ^ P. JTh OLj e;cE2;3 - Page 17 charged against the fund, except 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 to the Waterworks and Sewer Fund. Section 16. The bonds shall be subject to redemption prior to maturity as shall- be>,set forth in the Notice of Sale of the bonds and in the im- plementing resolution approving the terms of the sale of the bonds. In this 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 bonds and that the bonds of any issue may be redeemed, in accordance with the applicable redemption pro- visions pertaining to the particular issue, in whole or in part without any redemption of any of the bonds of any other issue. Section 17. That when the bonds have been executed 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 the purchase price plus accrued interest from the date of the bonds to the date of delivery of the bonds (the "total sale_ proceeds"). The total sale proceeds shall be disbursed as follows: (a) The amount of the accrued interest shall be deposited into the Bond Fund; (b) There shall be deducted from the total sale proceeds that amount which will be sufficient to provide for the refunding of the 1969 Bonds, which amount shall be deposited in trust with the Paying Agent of those bonds being refunded, with instructions that it be applied solely to the payment and re- demption of the 1969 Bonds; (c) Any amount specified, if any, in a Letter of Instructions signed by the Mayor and delivered to the Paying Agent, as an increase in the Reserve Fund shall be deposited into the Reserve Fund; and or, 0 y;,, FACE2t.4 Page 18 (d) 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" (the "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. 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 these bonds. 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 any 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 r 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 oL 812 P;Icu2.115 I. Page 19 Fund or the Reserve Fund. Upon receipt of the Certificate the depository of the 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 bank Certificates of Deposit or any other securities which constitute lawful investment of municipal funds under the laws of the State of Arkansas which shall mature not later than the dates that the moneys in the Construction Fund will be needed for the accomplish- ment 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 18. The City and the Trustee covenant that neither of them shall take any action or suffer or permit any action to be taken or condition to exist which causes or may cause the interest payable on the bonds to be subject to federal income taxation. Without limiting the generalityIof the foregoing, the City and the Trustee covenant that the proceeds of the sale of the bonds will not be used directly or indirectly in such manner as to cause the bonds to be treated as "arbitrage bonds" within the meaning of Section 103(d) of the Internal Revenue Code of 1954, as amended. Section 19. That the Mayor is hereby directed to publish for one insertion in The Northwest Arkansas Times, Fayetteville, Arkansas, 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: 4 l oeh l� y � PACE ,y_tJ 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 Refunding and Construction Revenue Bonds, 1974 Series A, described in the Ordinance; that any person interested may appear before the Board on the 18th day of December 1973, 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 4th day of December , 1973. Mayor i 4 OEtu O(c._P,ICE,° I Page 21 Section 20. 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 shall be issued and delivered. Section 21. 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 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 presentation of the public peace, health and safety, shall take effect and be in force from and after its passage. PASSED: J IPc mhp.r , 1973. APPROVED: ATTEST: ` Are/I v • �M� � VI .•Y. DEpn Cjy, P„CF18 t. CERTIFICATE 4 The undersigned, City Clerk of the City of Fayetteville, Arkansas, hereby certifies that the foregoing pages, numbered 1 to 21, inclusive, are a true and perfect copy of Ordinance No. 1965, adopted at a session of the Board of Directors of the City of Fayetteville, Arkansas, held at the regular meeting place of the Board of Directors at 7:30 o'clock _p .m. , on the 4th day of December , 1973, and that the ordinance is of record in Ordinance Record Book No. IV at Pages 1-21 , now in my possession. GIVEN under my hand and seal on this 6th day of December 1973. VW City er oEE1 862 r,;cr 2�.9 4 I CERTIFICATE STATE OF ARKANSAS CITY OF FAYETTEVILLE I, HELEN YOUNG, City Clerk within and for the City of Fayetteville, Arkansas, do hereby certify that the annexed and foregoing is a true and correct copy of the Fayetteville, Arkansas, Ordinance No. 1965 , therein set forth, and the same is as it appears of Record in Ordinance and Resolution Book Volume IV at Page 1, 2, 3, thereof. 4, 5, 6,„ 811, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, and 22. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this 13th day of December , 1973 CERTIFICATE OF PEG STATE OF ARKANSAS CITY R SS. Washin-'rn County J A' L. Kollmoyer, Circuit Clerk and Ex -Officio Record ' Washin ;ton County, do hereby certify that the ann.xc'l I ' Eoin,; ins'.rument was tiled for record in my office on the (3 <l 'y of N 'V • 1o73at3 acta, and thl record G� at p = L98 du r^.r_ed in Wicnoss ...y hand and seal this y� day of C ` Circuit erk and ` Ex -Officio Recorded By Denuty Clerk 7 - " OlF1 862 PACE220 k • A CERTIFICATE OF RECORD State of Arkansas ( SS City of Fayetteville I, Suzanne C. Kennedy, Cit Thrk and Ex -Officio recorder for the City _ ,-etteville, do hereby certify that the a or fore- going is of record in my office a'.d ' same ap- pears in Ordinance &Resolutio:1 book \\ m\\ // at page =• %V itness my hand and seal this ---day of City Clcris a;a::. :)ia Rec©YdAC i. J _ J i i . a i n l FHLV VP; r:: . .I m pararularly Act.' endureed here'':'. ndorse to the Prr .ms e d I 1 of t. cuing No. 131 of the Acts of Arkansas of 1933, for registration endorsed hereon, nothing I as amended. Act No. 133 of the Alta contained in this bond or In the Autho- or Arkansas of 1911, as amended, and rizivg Ordinance shell affect or impair I Act. No. 197 of the 'Acts of Atka the vegotlabllity of this bond, and this ,of 1937, es emended, and the decision bond shall be deemed a negotiable instru- 'of the Supreme Court of the State of men[ under the laws of the State of ,.k. n{e, in Harrison V. Braswell, 'ins. Arkansas and issued with the intent that .rV .,•. •'t ,a 0'90., Qev of the ITcc rr Il,e Stets or Ar' t n I R b.•-1 i+n ,r••r he V 't A _ ..n fir -. S. i.. .. . , '-it I,Lti .I i !l •;•fit : h JOlI, 1' .y e.'lllla . p e lS :rIAC r �'• (.a Lands shall be negotiable coupon,happened and hum Is'to pe •ailpayable to bearer but shall be due time, form and manner ' - :'rd to registration as to principal by law; that the indebtedness - •'1 as to principal and interest shall by the bonds does not excee ,n the denomination of $5,999 each stitutional or statutory limit - -H 1 shall be numbered consecutively from that sufficient revenues h . ,\ upwards. The bonds shall mature pledged to and will be set I June 1 of each year as follows: the special fund provided '1e = %K AMT. YEAR AMT Authorizing Ordinance for the purpose c; $ stand 1 1.000 of paying the principal of and interest -;n send 1986 175,000 on the bands. 105,000 L987 ISoa00 IN WITNESS WHEREOF, the City of a 110,006 1988 195.000 Fayetteville, Arkansas, has caused this 71 115.006 1969 3I5,tt9 bond to be executed in its name by the OI 1Sate 1990 xd0a00 facsimile signature of the Mayor, the 'St 1300X) 1991 95,000 manual signature of the City Clerk, and 140.0X0 1993 345,0¢0 its corporate seal to be affixed, and '3 143,010 1493 360.000 has caused the Interest coupons hereto .W 155.000 1991 315.000 attached to be executed by the facsimile ertton 3. The Mayor shall cause a signature or its Mayor, all as of the 'tire of Sale to be prepared, select first day of February. 1971. 'Inte for the public sale and publish CITY OF F A Y E T T E V I L L E, d otherwise distribute copies of the ARKANSAS Inge and other information in such By I Inner as he shall determine (after con- itation with bond counsel and the City's Mayor seal agent) will result in the sale of Attest) bonds on the moat favorable terms. e Notice of Sale shall contain the City Clerk ual information. including appropriate (Seal) 4•mption provisions. After the sale the (Form of Coupon) and of Directors shalt by appropriate on the first day 0 June, Lsat-en8er, on, confirm the sale of the bonds 19—, the City of Fayetteville, Washing- sucessia d bidder and in that ton County, Arkansas, unless the bond en shall set forth the details of to which this coupon is attached is paid Is, Including numbering, rate of prior thereto or unless the bond is reg- redemption provisions and the istered eJ m interest in accordance with and Paying Agent. the provisions pertaining thereto set forth It 4. That the bonds ball be in the bond, hereby promises to pay d an behalf of the City by the to bearer, solely from the special fund and City Cleft and shall have referred to in the bond, sl thereon the seal of the City. DOLLARS de may be ezewted by the twit- in lawful money of the United States mature of the Mayor and the of America. at the principal office of counnns attached to the bonds ___ -- -- ---- - Ark- . r -] !, .—. II2:__ _ A ml ,— Ac 1:, ±el id ,"net as If Perapn llv seie'I 1971 Ser!es£ A, (,tied Febtner; .74. ii. The bends must be executed and numbered 1w the manna) signatwe at the City City eg Fayenetde, Artanfa .. -t.. The bomb, together with interest By (Faalmi a Signature), Mayor a, shell be payable solely out of 'ad Fund (hereinafter referred to) (On each bond tall appear the •I1 be a Valid claim of the holders fouowmg:) nn!v again¢ the Bond Fund and CERTIFICATE -' ., •hn R.d ra.. n. TI -,a ?, rep_ ': .L ,_...,a fit . .ed _ 1➢'t -. ¢Ijr for ' Eefum its t', .:! 1t'L It Ae •I of aria). Ixpmem a the prinei- Bonds, 1974 Series A. ll If and interest an the bonds and If,. -- -, .ling bonds and shall be used in — . lace with the previsions of By— - imNo, 761, Ordinance No. 1508 Authorized Signature s Ordinance. The pdWipal and PROVISIONS FOR REGISTRATION AND] of the bonds shall constitute RECONVERSION btedness of the Cl thin any This bond may be rregistered as to AN OR DIN AISSUANCE: LE FRO Al NF: lac ER a OF \V! 5D SE ER R REVENUE F rRl'CTICN FiE6ENIi F; e AND m 5, That the n ,e in substantia and the Mayor ereby expressly 1 to make all -c.o ALL MEN BY THE,g -:NTS: the City of Fayetteville. Coanty aslington, State of ArkeNap (the acknowledges itself to call and ;line receives, hereby promises In 'n bearer, or if this bond be .red to the registered owner hereof, from the special fund provided ereinafter get form. the principal FIVE THOUSAND DOLLARS wail money of the United Stabs -lcrirn on the first day of Jun. and to pay mbreet thereon et of — per sea cent per anon ftS site r until paid. Interest Is ptyabl. 1, 39—, and semlapauelly there, on each December 1 and Jura 'ayment of principal and peymenl FOR ,I interest evidenced by coupons Shall ORKS he at the principal office of CON ,the "Trustee" and "Paylnt Afenr'). 1974 Payment of interest when registered a. FAY- to interest. may be by check or dap THE mailed to the registered owner at bit LNAINN- of dress oe City maintained by thed on the e Ttration boot rustee. :TAN- ,this bond is one of an issue of Water :TING works and Sewer Refunding and Cog ITER- struetion Revenue Bonds, 1674 Series A O BE ag¢regating CITY; Dollars f3--) Is amount T OF numbered from 1-A S i.memdee REST all of like tenor and auapt Si IBING to number, rate of In matmlIf IERE- and right of pater (iM !MCR.I"bonds") Id for the !Pun e WHEREAS, me City of Fayetteville, Arkansas (the "City") owns and operates a municipal Waterworks and Sewer Sys- tem (the 'System''): and WHEREAS, the City has outstanding an issue o' Waterworks and Sewer Reve- nue Refunding Bonds, dated June 1, 19[0 foe '19M Bonds'', 1n the original mind - pat amount of I.313,eW of w It I c h cludll $3,695,000 in principal amount are now Acts outstanding, issued under and secured Act by the provisional of Resolution No. 7.63 of I! of the City. adopted and approved an the ) April 8, 1983 1"Resolution No. 7-63"1: dad, an issue of Waterworks and Sewer Reve- Court flue Bonds. Series 1966. dated September n, so 1, 1%6 (the "11*6 Bonds"), in the original ] principal amount of $4,300,000 of which Na $4300,00 In principal amount are now app!. outstanding, issued under and secured F by the provisions of Ordinance No. 1508. 1973, adopted and approved on August 8, 1966 "Am ("Ordinance N". 1,508'); and an issue toast of Waterworks and Sewer Revenue Bonds. 4 Series 1968. dated February 1, 1969 (Me pins "1969 Bones"), in the original principal s, amount of $940.0obit 0 of which $865,000 in g principal amount are now outstanding. rove issued under and secured by the provl- the aiona of Ordinance No. 1653, adopted aid a pa approved February 3, 1969 ("OMlnavice with No. 1653"): and Race WHEREAS, the Board of Directors has I. 11 determined that it would be in the best Not Interest of the Cny to refund the out- standing 1911,9 Bonds: and lent WHEREAS. it is necessary that the Bove City construct extensions, betterments and 1, improvements to the System (the "ins- 1305, provements" ), which improvements will A B be located within the corporate limits we of the City, and and WHEREAS, the estimated cost of the I, 1( refunding and the improvements and of ONI sometlrtng and Issuing bonds Is Nt . $3370.014: and Ondl WHEREAS, there hits been prepared tat by a duly qualified consulting engineer we. a preliminary report and estimates inter covering the improvements, which have h0ad been stalled by the Board of Directors for I and a copy filed in the office of the wort City Clerk, to which reference may be Bond made by any Interested party; and Raw WHEREAS. In order to finance such caste it is necessary for the City to issue revenue bonds (the "bonds" ); and WHEREAS, the City is authorizing. for issuance simultaneously with the issuance of mew bonds. fords (in the principal amount of $1,330,00) for the purpose of finandni extensionsbetterments and improvements to the System outside the corporate limits of the City (called the "City of Fayetteville, Arkansas Water- works and Sewer Construction Revenue Bonds, 1971 Series B" but herein the "Sales B Bonds"), and the Series B Bonds Wall be seemed by a pledge of System connotes on a parity with the Series 1989, at the 1, 1969, pymg the extensions. battmm to the Wai nOf (the "System"), an of authorizing and 1 The bows are Is In full complaint and laws of the 8 t td C. pre' mtM4%dy of an lm ileum r referred to as a OrdlNwe"), and r an Indebtedness of IS r constitutional ar slu ly tato pew an to er--- a, tat to be wt aftld fit a IV alone on moof We Clay, STATE of ARKANSAS ty the Trust as bond thlstrar, presentation hereof to the bond ah .PI, .ha', r, e mtnflII 0( County of Washington o , ,'fibe red till' II c,i u , '. duly' bred only upon an as stcuer o tlin$ ///��� id by me registered owner or his Q. ly At legal rgOresepladw m such.. 1, '"^' q'Ej Wall be taatfacloy m the bond hereby certify that I is Sr, such transfer to be made onlm the Pubflaher of N QT ARKANSAS TIMES, a ooks and andmsed bosun by Me,Iewapaper having a second class mailing daily registrar. ash tranSsr may ba privilege, and being not less than livery ndthereateerlorombdbimta'our pages of five columns each, published at a fixed place of business and at 'siggol a a n be =bJeel brore.reet fixed (daily) intervals continuously in the City of Fayetteville, County of sal of this bond. H registered.'�sehington, Arkansas for more than a period of twelve months, circulated t egi nly oe ed I bwoo earer, �l be pof lay- nd distributed from an established place of business to subscribers and ee owner[ oar his legaltheo readers generally of all classes in the City & County for a definite price for t pals cold, on wesevtauon and ch copy, or a fixed price per annum, which price was fixed at what is of respectivelythebecome hed Interest coupons nsldered the value of the publication, based upon the news value and hetandmt me registration of this roles value it contains, that at least fifty percent of the subscribers as to principal, al ibtthe e apb appurtenantne hereto have paid cash for their subscriptions to the newspaper or Its agents it �' and shall continue t ntnue to b ti u through recognized news dealers over a period of at least six months; registration of this bond. or at Id that the said newspaper publishes an average of more than forty percent line thereafter while this bond is sag matter. sad in the name of the owner, Immatured Onoppr0 attached led- further certify g Interest to be thereafter sew that the legal notice hereto attached in the matter of t shall be surrendered to Mid bond l ` :ar, a emm to temathat effect sew `7 qlV ( ,L ey j. turned hereon by the bond registrar J-t�> tersafter Interest evidenced by such dead coupons may be paid by .. - _ `F._ ety1 - .- - A I y N a: . or draft of me bond reUab'an times provided herein to the regis- --- - owner of [Na bond by mail mss published in the regular daily issue of said newspaper for / ddreas grown on the reglstraaoe .,.u_., The bond when so oneverted tab insertion] as follows: ,it registered as to both participial Intnt may be reconverted Into (� % w s at me written request The first insertion on the _ . I? _ day of 4C) L'-"� - 2-S Owner and upon presen- itt. amq of shld bond esistrar, •—.,.Vmslan the couponse second insertion on the •._ ate kl he become due day of __--,_- 19_____-____ -to am daW of maturity will atrmek m mis hand and a3 third Insertion on the Vat will be endorsed hereon by - day of mad eeWtry m the remstratlmI - 19.._....__. pelt "'" '"""" the fourth Insertion on the m bearer, � day of _..._._-. ` _ M OwsO, D" `j` ar oil _� `r' V1 Jere at DOW PAS[sb r-- lma ! B le berebr inn MIY I I l cns d et tthe5 siensd o�,worn to and subscribed before me on this hi- day of of Ordbeence No. 1308) perta in o e booms of parity bonds haw fully met an4 bonds onds led of this leas wpm aed-_______.__... therefore, the pl1t rank on ����p�y of security with tdstammng"1Feds, -m this regard, squired CewMeaes of the indepeod- �/*//// O / eraflad ptttlle acowolant shall a QQIr_,{r�_ Qyt-LQ /[/ In the am" of the City Clerk prim . -- ----- . .-_-__.-.._--__. t delivery of to bonds. No Public HIM 7. The City enamanis. reaffirms aamens that ..nuts derived. the system shall an kept geparete.Y Commission Expires: om ds of the City.e—it epedsle created and_l_l %/ Ga dawergr Revenue (the "Hoed 'h: toes for PrintiB 3I� II Waterworks sad sewer Revenue B i--------- ding Rand Reseal Fund (the eau Fwd"); )at of Proof _-__ Wa iewaks m Bawgr Conunascy --- -.. _-,...._.._- we (the "Coetmnw Ford"): -------_-_.- W erwOes No Seeks Repair and segment F,id (the "Repair and Re- Total --_... ;-��etZ sn2 Re - meat P1md')i.---.-,.-'----„1---,.� Waterworks sad Sever Surplus ame Fund (the "Surplus Revenue ties S. Qty COvanaots, reaffirms aapes s mad any of the pat atYaleet a the bonds meamnAaF IAadd anbbu ads_ �eMsaaafl revenues when recNre and deposited sin VaYnsaki e4 Sower Ford. There be disbursed e..frot each month naing such same as are 5 of for' the costs of sreby fence of the S mass to the AuIi.a g Olelaaete, RI l uton Na 7- Ordinance No. 15 me Berke A ONhultce, for a deft statement of the nature and extent of security, the rights end atigatfons of O3,', the TTnstet and the holden registered owners of the bonds and terms and conditions upon which bonds are Issued, including, wit) limitation, the covenant of the City maintain rates for water and se services which shall be sufficient at times to produce revenues for opera and maintenance expenses, for payment of the principal of and bite: on the bonds and the outstanding be I the the to In Section 7 In the order of The deposits In the Bond be made on the tint bus ins h month (a) in the amt tar. be paid into such funt! by No. 7'63 and Ordinance No me outstanding bonds) pits Iamb required for the payn,en, ipal and Interest on the bonds ring Agent's fees as the same in accordance with the ache set out in the resolution of of Directors adopted after