HomeMy WebLinkAboutOrdinance 1965 T7 n
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ORDINANCE NO . 1965
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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
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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
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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 ;
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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 ,
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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
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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
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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
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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
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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,
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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 " ) ;
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(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
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