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HomeMy WebLinkAboutOrdinance 2074 I )LE ID FOR i � EC, t 2074 ,; Lh' ` : I •� P. ORDINANCE NO . 1. 1 ' ,. 0 CIL � ;( 7 7 11 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF WATERWORKS AND SEWER REVENUE BONDS, BY THE CITY OF FAYETTEVILLE . ARKANSAS FOR THE PURPOSE OF FINANCING THE COST OF CON - STRUCTING EXTENSIONS , BETTERMENTS AND IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM ; PROVIDING FOR TI£ PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS ; PRESCRIBING OTHER MATTER RELATING THERETO; AND DE - CLARING AN EMERGENCY . I� f WHEREAS , the City of Fayetteville , Arkansas (the " City " ) owns and operates a municipal. Waterworks and Sever System (the " System " ) ; and WHEREAS , the City has outstanding an issue of Waterworks and Sewer Revenue Refunding Bonds , dated ;un^ 1 , 1963 (the " 1963 Bonds " ) , in the original principal amount of $ 5 , 313 , 000 of whi .:11 $ 3 , 535 , 000 i ,l 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- 6316 ) ; 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 , . 10. 69 (the " 1969 Bonds " ) , in the original principal amount of $ 940 , 000 of which $ 824 , 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 , it is necessary that the City construct extensions , betterments and improvements to the System (the " improvements " ) ; and QQ VOL vvo ' 925 MICROFILMED DATE OCT 1 e 978 REELS— Page 2 WHEREAS , the estimated cost to be borne by the City of accomplishing the improvements and of authorizing and issuing bonds is $4 , 000 , 000 (the remainder will be supplied from other available funds and from grant funds from the United States of America) ; and WHEREAS , there has beeny a . dul ared re b p p y qualified consulting _ ��• " . engineer a 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 authorize Waterworks and Sewer Revenue Bonds in the principal amount of $4 , 000 , 000 (the " bonds " ) to be issued in series; and WHEREAS , references herein to " outstanding bonds " shall mean the 1963 Bonds , the 1966 Bonds and the 1969 Bonds; and WHEREAS , bonds can be issued on a parity of security with the outstanding bonds provided i.Frthe conditions set forth in Section 19 of Resolution No . 7- 63 (and Section 14 (2) of Ordinance No . 1508 and Section " 14 (1 ) of Ordinance No . 1653) can be complied with and the Board of Directors has determined that those conditions will be met at the time 'of the issuance of each series and that , therefore , the bonds that are issued will rank on a parity of security with the outstanding bonds and the bonds of previously issued series; . NOW , THEREFORE , BE IT ORDAINED by the Board of Directors of the City of Fayetteville , Arkansas : Section 1 . That the 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 action necessary to accomplish the improvements and to carry out the authority conferred by this Ordinance and to evidence the exercise thereof . Page 3 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 the decision of the Supreme Court of the State of Arkansas in Harrison v . Braswell , 208 Ark . 1094 , .! 194 S . W. 2d 12 (1946) , City of Fayetteville , Arkansas Waterworks and Sewer Revenue Bonds are hereby authorized and ordered sold in the total prinicpal amount of up to $4 , 000 , 000 for the purpose of financing costs of accomplishing the improvements . The bonds may be sold and issued from time to time in series as funds are needed with the series designated in alphabetical order beginning with Series A. The bonds of each series shall be dated on such date , interest thereon shall be payable semiannually on such dates and the principal shall mature on such date or dates (and be subject to redemption on such dates and pursuant .4o such1.terms) cas shall :be subsequently specified by resolution of the Board of Directors , but in any event , the latest maturity of any series shall not be later than the year 2010 . The bonds of each series shall be negotiable coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest and may be serial bonds or term bonds , or a combination of both . Payment of principal and interest coupons shall be made at the principal office of the Paying Agent . Payment of interest when registered as to interest may be by check or draft mailed to the registered owner at the address shown on the registration book of the City maintained by the Trustee . The bonds of each series shall be sold at public sale after advertise- ment in such publications as the City Manager (after consultation with bond counsel and the City ' s fiscal agent) shall determine will insure adequate notice and opportunity for bidding. The maturity schedule of the series being sold shall be set forth in the Notice of Sale . Each Notice of Sale shall contain such terms and provisions as the City Manager (after consultation with bond counsel and the fiscal agent) shall determine ought to be included in order to obtain the most favorable bids . : VOL 880 921 Page 4 The terms of the sale of each series and the designation of the Trustee and Paying Agent must be approved by the Board of Directors by resolution . In each such resolution the Board of Directors shall set forth (in addition to other pertinent matters) the details of the bonds as they are being issued , including principal amount , date of the bonds , interest payment dates , principal payment dates , numbers , denominations , rates of interest , a schedule reflecting the annual principal maturities , the semiannual interest requirements and the total requirements , and applicable redemption provisions . All such details may vary among the different series but the bonds of all series , regardless of when sold and delivered and regardless of such differing terms shall rank on a parity of security . In connection with determining the overall amount of bonds to be sold and issued and the amount to be sold and issued in each series , the City covenants that bonds of the respective series will be sold and issued only if , at the time of the sale and issuance of each series , revenues to be derived from the operation of the System from the rates then in effect (the present rate structure is that fixed by Ordinance No . 1760 , adopted and approved. on September 9 , 1970) will be sufficient as determined by the Board . of Directors at the time (which determination shall take into consideration projections by an independent consulting engineer of revenues to be derived from any new customers by virtue of improvements to be constructed and revenues to be derived from any increases in water and sewer rates) to pay operation and maintenance expenses and leave a balance reflecting such coverage of debt service requirements of outstanding bonds and the bonds then proposed to be issued as shall be determined by the Mayor (after consultation with bond counsel and the fiscal agent ) to be necessary for favorable marketability of the bonds . A minimum coverage shall be specified in the Notice of Sale of the Series A Bonds and later determinations to be inserted in subsequent Nct ices of Sale may exceed but cannot be lower than that specified in the initial Notice of Sale . Also , as a condition precedent to the issuance of each series , the Board must determine and find in the implementing resolution that the requirements for parity bonds are satisfied . VOL OHOO f Page 5 Section 3 . 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 interest on the bonds (of all series) and the outstanding bonds and shall be used in accordance with the provisions of Resolution No . 7 - 63 , Ordinance No . 1508 , Ordinance No . 1653 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 4 . That .the bonds and coupons shall be in substantially the following form (the form is for Series A and there will be appropriate changes to reflect the details of the various series ) , and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: pp VOL UUO Ow iJNJ '19' D S'1'AT1. S OFAIAIERIGA STArfl ' OF ARKANSAS COUN 'iY OF WASHINGTON CITY OF FAY]XTEVILLE . % WATERWORKS AND SEWER REVENUE BOND , SERIES A No , 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 19_, and to pay interest thereon at the rate of percent ( %) per annum from the date hereof until paid , Interest is payable 19_ , and semiannually thereafter on each 1 and 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 a series of Waterworks and Sewer Revenue Bonds , Series A , aggregating Dollars ($ ) in principal amount , numbered from 1 -A to _A , inclusive , all of like tenor and effect , except as to number , denomination , rate of interest , maturity and right of prior redemption (the " Series A Bonds " ) , issued for the purpose of paying the costs of constructing extensions , betterments and improvements to the Waterworks and Sewer System (the " System " ) , and paying the expenses of authorizing and issuing the bonds . The Series A Bonds are part of a total t Vt)L Mo 930 t k Page 7 authorized amount of up to $ 4 , 000 , 000 (the " bonds " ) being issued in series , all of which will rank on a parity of security , The bonds are issued pursuant to and in full compliance with the Coir stitution and laws of. the State of Arkansas , including particularly Act No . 131 of the Acts of Arkansas of 1933 , as amended , and Act No . 132 of the Acts of Arkansas of 1933 , as amended , and the decision of the Supreme Court of the State of Arkansas . in Harrison v . Braswell , 208 Ark . 1094 , 194 S . W . 2d 12 (1946) , and pursuant to Ordinance No . 2074 of the City , duly adopted and approved on the 23rd day of December 19 74, and an implementing resolution or resolutions (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 . 1508 " ) and issued pursuant to Ordinance No . 1653 , adopted and approved on February 3 , 1969 ( " Ordinance No . 1653 " ) (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 "Waterworks and Sewer Revenue Refunding Bond Fund " created by Section 5 of Resolution No . 7 - 63 , Reference is hereby made to the Authorizing Ordinance , and to Resolution No . 7 - 63 , Ordinance No . 1508 and Ordinance No . 1653 , 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 g I VOL Uau` O 931 Page 8 the bonds are issued , including , without 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 , Ordinance No . 1508 and Ordinance No . 1653 ) at the required levels . The Series A Bonds are subject to redemption prior to maturity as follows : Notice of the call for redemption shall be published one time in a news - paper of general circulation throughout the State of Arkansas published in the City of Little Rock , Arkansas , giving the number and maturity of each bond being called , with the publication to be at least fifteen ( 15) days prior to the redemption date , and 'after the date fixed for redemption each bond so called shall cease to bear interest , provided funds for its payment are on deposit with the Paying Agent at that time . In addition , notice shall be given by certified or registered mail 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 as bond registrar and if all outstanding bonds shall be registered as to principal then notice by certified or registered mail to the registered owners thereof as aforesaid shall be sufficient , and it shall not be necessary to publish notice of the call , h VOL 8u0 G32 Page 9 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 Ordinance shall affect or impair the negotiability of this bond , and this bond shall be deemed a negotiable i. nstrumcnt 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 Series A Bonds have existed , have happened and have been performed in due time , form and manner as required by law; that the indebt - edness 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 1g ' CITY OF FAYETTEVILLE , ARKANSAS ATTEST: By (Facsimile Signature ) %��niwc-n.v Mayor City Clerk (SEAL) VOL SU20 ZIQJ i (i'orm Of Coupon ) No , $ On the first day of ' 19_, the City of: Fayetteville , Washington County , Arkansas , unless the bond to which this coupon is attached is paid prior thereto , hereby promises to pay to bearer , solely 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 Revenue Bond , Series A , dated 19 and numbered i CITY OF FAYETTEVILLE , ARKANSAS By (Facsimile Signature ) Mayor r _ (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 Revenue Bonds , Series A . I By Authorized Signature VOL 8FU ; PROVISIONS F'Olt RCG:IST1U110N AND REGOiNVERS1.0N This bond may he registered as to principal alone on boo'r. s 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 bea ler , shall be payable only to or upon the order of the registered owner or his tlegal representative , Interest accruing on this bond will be paid only on presentation and surrender of the attached interest coupons as they respectively become due , and notwithstanding the re.gistration 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 t .VOL UUQ �7w .. t , i. the coupons repre ::c: nting the int<: rest to becomo duo ' Lhercafte: r to Lh(1 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 is then registered as to principal or payable to bearer , Manner of Signa Lure of Date of. Registration n Name of. Registered Owner : Registration Bond Registrar .. VOL Ko 9136 Page 13 Section 5. 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 and Section 14(1) of Ordinance No. 1653) pertaining to the issuance of parity bonds have been fully met and complied with and that, therefore, the Series A Bonds rank on a parity of security with the outstanding bonds. In this regard, the required certificate of the independent certified public accountant shall be filed in the office of the City Clerk prior to the delivery of the Series A Bonds. Section 6. 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"); (f) Waterworks and Sewer Surplus Revenue Fund (the "Surplus Revenue Fund"). Section 7. 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 :.VOL 880. 97.1 Page 14 referred to in Section 6 of this Ordimutce and in th•e order of priority listed in Section 6. Section 8. 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, Ordinance No. 1508 and Ordinance No. 1653 (for the oustanding bonds) plus (b) the amounts required for the payment of the principal and interest on the bonds and the Trustee's and 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 2 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 Trustee's and Paying Agent's fees to become due on the bonds; (b) On the first business day of each month beginning one year prior to the first maturity, 1/12 of the next maturing principal payment and Trustee's and Paying Agent's fees on the bonds; and (c) Such amounts, if any be necessary, to provide suf- ficient funds for the first interest due. 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 Trustee's and Paying Agent's fees, and for no other purpose. VOL oUO t1U Page 15 Section 9. The required level of tic Reserve Fund shall be increased by an amount egtal to the average annual debt service (principal and interest) 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 five years from the date of the bonds 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 10. There is now on deposit in the Contingency Fund the sum of not less than $100,000. The Contingency Fund shall be 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 12 hereof. Section 11. 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 p ,VOL LJ0 939 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 Fund, as specified in Section 12 hereof. Section 12. 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 8, 9, 10 and 11 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 :as listed in Section 6), 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 13. Any revenues remaining in the Waterworks and Sewer Fund after the payments required by Sections 6 through 11 hereof, shall be set aside 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 14. 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 V0L 8S0 y� 9 �t1O SI Page 17 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 payingthe 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, Ordinance No. 1653 and under this Ordinance; (2) The provisions of Section 19 of Resolution No. 7-63 pertaining to the issuanceof 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 a s 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 16 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 ,V0L 8&0 941 Page 18 charged against the hind, except when e.drnings in the Resorvo 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 15. The bonds of each series 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 16. That when the bonds or the bonds of any series 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) Any amount specified, if any, in a Letter of Instructions signed by the Mayor and delivered to the Trustee, as an increase in the Reserve Fund shall be deposited into the Reserve Fund; and 4 I V0L CL S' Page 19 (c) The balance of the total sale proceeds shall hip 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 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 V0L 880 943• Page 20 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 maybe 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 17. 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 federalincome taxation. Without limiting the generality of the foregoing, the City. and the Trustee covenant that the proceeds of the sale of the bonds will .tpth not be used directly or ind J?ily 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 18. 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: OL 880 944 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 VJatervrorks and Server Revenue Bonds, described in the Ordinance; that any person interested may appear before the Board on the 7th day of January 19. 7 at 7 : 30 o'clock ___.m., at the usual meeting place of the Board held in Fayetteville, Arkansas and present protests. At such hearing all objections and suggestions will be heard, and the Board will take such action as is deemed proper in the premises. DATED this 23rd day of December $ 19 74 M I" Ir 4. ,VOL 880 Page 22 Section 19. That tins -Ordinance shall not create any right of any kind, and no right of any hind shall arise hereunder pursuant to it until the bonds shall be issued and delivered. Section 20. That if any provision of this Ordinance shall for any reason be held iilec;al or invalid, such holdings shall riot affect the validity of the remainder of the provisions of the ordinance. Section 21. That all ordinances, resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict, including in particular, Ordinances Nos. 1965 and 1966, adopted and approved December 4, 1973. Section 22. 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, •V I" 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 i.s, therefore, declared that an emergency exists, and this ordinan'^:heing'necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage. PASSED: 23rd December , 1974 APPROVED: APTEST: .. r0` f A ri,,;N Mayor wrilty ct6r , . : VOL 880 9w CERTIFICATE The undersigned, City Clerk of the City of Fayetteville, Arkansas, hereby certifies that the foregoing pages, numbered 1 to 22, inclusive, are a true and perfect copy of Ordinance No.2074 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 4:00 o'clock P •m., on the 23rd day of December 19 74, and that the ordinance isof record in Ordinance Record Book No. IV at Page 234-25S now in my possession. GIVEN under my hand and seal on this 24th day of December 19,74. • CERTIFICATE OF RECORD STATE OF ARKANSAS 1 95. Washington County 1 I, Alma L. Koumeyer, Circuit Clerk and Ex -Officio Recorder for Washington County, do hereby certify that the annexed orr fore - :going instrument was filed for rec%rd in my office on the YZ day •19RCatclocktM, and the same is duly recorded in record 8 at page2f Wit:iess my hand an seal this Vday of ALMA K0LL EYER Circuit Clerk and Ex -Officio Recorded Deputy Clerk CERTIFICATE OF RECORD State • of Ark:ms s City of Fayet :' f S4 I, Suzanne C. ICS ey. Ct (' -' Es -Officio recor-e:: I t o C::) . f 1' :J do hereby ce:•iif} ti t the going is of record ir• !ny f'f''i'c , ' d pears in Ordinai j'1e ;'.l;i n ' at I' ':c- lV{moss and ff! my hand and sell this _._.__------day .1N , of ,V0L 880 947 City Clerk City Clerk and IL't•Ulficio Re©Ardor ' NOTICE STATE of ARKANSAS Notice is hereby given that the Board ss or ❑ i r e c t o r s of the City County of Washington n! Fgtlteville. A r it an s e I. has' adopted the Ordinance hereinafter set out: that the Cav contemplates the issuance of the Waterworks and Sewer /^y,� �n� r�,, �,, Revenue Bonds. person to the Olmim I, 1 /�C,p /1,�.(9k. - � '!"rF'v - hereby certify that I Reve: that any person Interested may `-',l'tp-A^'Ft k�11 appear before the Board on the 7th am th Pu isher of HE NORTHWEST ARKANSAS TIMES, a daily da' of January, 1975, at 7'30 o'clock p a '!v usual meeting pia rP of, newspa er having a second class mailing privilege, and being not less than the Board held in Fayetteville, Arkansas four pages of five columns each, published at a fixed place of business and at and present protests. At such hearing, all objections and suggesuone will he, a fixed (daily) intervals continuously in the City of Fayetteville, County of heard. and the eas will take such Washington, Arkansas for more than a period of twelve months, circulated aetion a! is deemed proper in the g premi.ec. and distributed from an established place of business to subscribers and this Mid day of December. readers generally of all classes in the City & County for a definite price for RUSSELL T. MAYOR each copy, or a fixed price MAYOR per annum, which price was fixed at what is considered the value of the publication, based upon the news value and ORDINANCE NO. '2074 —�� service value it contains, that at least fifty percent of the subscribers SU N CE PROVIDING FOP thereto havepaid cash for their subscriptions to the newspaper or its agents .DANCE OF WADING FOP g WER REVENUE BONDS, B\ or through recognized news dealers over a period of at least six months; rev OF FA Y .i rl\Rid F:, AR R;Ns45 FOR THE PURPOSE OF, and that the said newspaper publishes an average of more than forty percent FrN4%(i1NG THE COST OF CON S£Pl'(TING EXTENSIONS• BETTER news matter. >IENTS AND IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM: I further certify that the legal notice hereto attached in the matter of PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST s CN THE BONDS: PRESCRIBING OTHER MATTER RELATING THERETO: AND DECLARING AN 7 / EMERGENCY. --- -------------_- -- .- --.---._------------ ----"-------4-.SG-------- ---__-___.-----__---- WHEREAS. the Clay of Fayeftevilk. Arkansas (the "City") owns and nperatea was published in the regular daily issue of said newspaper for -----/ P I ape temworka and Sewer--- 1 :A the C'I; aced oa�trAMe►insertlonB as follows: .d HF!' ':AS ., the (ilv has overt a Have- '7 one R:,,''1 3 Bonds, dated June I. The first insertion on the __-_-Q/---`..- day of .__Q..S .-.-.- 19-..7 -- pr, pier "1964 Bondi'., to the origina prr.cral amount of $5,313,000 of which L+,:.n.tm to Principal amount arc now the second insertion on the ,. ----- day of ......_...._.._-----_ 19----___- nrru�tl'g. Issued under and secured - br he provisions of Resolution No. 7-43 of he car. adopted and nd approved p on fart I". "Resolutionthe third insertion on the ------------------------19 day of No, 7-e o ' an issue of Waterworks and Sewer Reve- nue Bonds, Series 1988, dated September n"s 'me 'sees Bonds', of me aria,. and the fourth insertion on the day of -----.-_— ----_--- 1'""► w nrnoipal amount of p,310 nt of rnM '- '1l ndi ra Pn ed amernt art L' [IP ndl ng I[£;IPd tinder r" and ,r of Ii,.. care L Sworn toandbefore •. 4. -- subscribed b scefore me on t �. _day of --------- ------- J eY y Public Commission Expires: /Ol9%� ...¢,relied party -. and 1 ` IEREAS, In Order to finance such it is neeessaq' for the City- to -io nu Waterworks and Sewer Revenue ia In the prhlcipel amount of I'fl i•_i. .bon, q to he ssue4 Fees for Printing Cost of Proof Total WHEREAS bonds can he issued al e panty of teellrlty with the 0UL-tand.nw bonds p"nvlded in the conditions set fore in Section 19 of Resolution No. 7€ (and Section 14(2) of Ordinance No. LY and Section 11(1) of Ordinance Nn_ l65 can be complied with and the Boar of Directors has determined that thin conditions cadbe met at the time the issuance of each aeries and th therefore, the bonds that are issued w/ rank on a perils or security with U' outstanding bonds and the bends previously +ed series. NOW. THEREFORE. BE IF 0: [AWE]) M the Board of INre('wn the Ciro of Fayetteville, Arkansas: Section 1. That the improvements accomplished as soon as predicable. this recd rd. the appropriate officals the Qty be and they are here autborbad n, eserute all ronttens a' instruments and take all action neeesse to accomplish the improvements and carry out the authority conferred this Ordinance and to evidence the ex else thereof. t Section 2. That under the Authority of the Constitution and laws of the Stets of Arkansas, including particularly Act No. 131 of the Acts of Arkansas of 1933 as amended. Act. No. 132 of the ACnI Of Arkansas of loi, as amended, and the decision of the Supreme Court of the State of Arkansan In Harrison V. Braswell, tag Ark. lint ml S. W. 'd4 14 (1!461, City of Favetleville, ArkA'sAs W'a' lerworks and 'ewer Revenue Bonds are hereby authorized and ordered sold in the Vital pnndpel amount or up to $4000,dB for the purpose of financing dusts of ac- conpllting the Improvements. The b0414, may be 'old and issued from time 10 time In series as funds an needed with the series designated in alphabetical order beginning with Serlea A. The bonds of each series shall be dated on such date, interest thereon shall be payable semiannually on such dates and the prin- cipal shall mature on such date or dates (and be subject to redemption on ,urh dates and pursuant to such ter'r,s e' shall be subsequently specified ley, mw' o' non of the Board of Director', em 'n ay event the latest naturit' 'C a:, series shall not he later than the year X110. The bonds of each series shall be negotiable coupon bonds payable to hearer but subject to registration as n pre net pal or at to ptlm'ipal and nter- it and may be serial bonds or term rinds or a combination of both. Pay- . ant of principal and interest coupons -'tall he made At the principal office if the Paying Agent. Payment of Interest -en roc's' -=d As to interest rlav be n me d in such publications as the City Manager ,after consultation with bond counsel and the City's fiscal agent) shall determine will insure adequate notice and opportunity :or bidding. The maturity schedule at the series being sold shall be set forth in the Notice of Sale- Each Notice Of sale cha!1 contain such terms and pnCs- inns as the City Manager (after consulta- tion with bond counsel ate •J ' fiscal agent) shall detemtlne aught to be in cluded in order to obtain the most favor- able bids. The terms of the sale of each series and the designation of the Trustee and Paving Agent must be approved by the RIatM of Directors by resolution. In each All resolution the Board of Direc4ors ,all set forth fin additlon to other pertinent matters) the details of the bonds as they are being issued. Including. principal amount, date of the bends.i merest payment dates, principal pay-li ment dates, numbers, denominations, rates of interest, a schedule reflecting the annual principal maturities, the semiannual interest'requiremenls and the total requirements. and applicable! redemption provisions. All such details may vary among the different series but the bonds of all' series, regardless < when sold and delivered and'regard- less of such differing terms shall rank on a parity of security. In connection with determining the m'erab amount Of bends to be sold and issued and the ansomt to be sold - and 'sued in each series, the City covenants that bonds of the respective series will be sold and issued only If. at the time' or the sale and issuance of each series, essential to be derived from the opera - ion of the System from the rates then n effect (the Present rate structure is that fixed by ' Ordinance No. 1760. adopted and approved on September 9. 1970) will be sufficient as determined by the Bard of Directors at the time (which determination shall take into con- sideration projections by an Independent rMrylting engineer of, revenues to be red from any new customers by .iue of Improvements to be conarumed did revenues to be derived frdm any 'rereeses in water and sewer rates, to pay operation and maintenance ex. penses and leave a balance reflecting such coverage of debt service require- ments of outstanding bonds and the bonds then proposed to be issued as shall be determined by the Mayor (after consultation with bond counsel and the fiscal agent to be neceaaary for favor -1 able marketability of the bonds. A mini mum coverage shall be specified in the Notice of Sala of the Series A Bonds and later determinations to be Inserted in subsequent Notices d sate may exceed but ceanol be lower Than that specified in the initial Notice of Sale. Also, as a' condition precedent to the issuance of each series, the Board must determine and find in the Imple mining resolution that the requirements in" parity bonds are satisfied. Section 3. That the hands shall be executed an behalf 'Of tla City by the 'savor and City Clerk and shafl have n'' ' - hrrenn to veal if •'.= f•.,' 'ie d rue g attire h. be e Xla d b. :ben t -i tote ' mileurs w the ]usher, Mayor far the s e orce the as to have the sema force and him. person- ally sired by he The bonds must or executed by the manual to tsignaturerwith of the interest h Clerk. sha band{ yableer with' uto thereon. Mall be payable solely out of the darts libihereinarter of the of and reo be a agaclaim of the holders thereof eve against lthe • Bond Fund and ,he rrucsave es (net ged to the Bond Fund, which revenues (net i revenues danced from the operation of mo eysedf are hereby dodged- and payment for the equal and manta on of of all of and Interest on the bonds bonds all series) and the accordance e And shall be used in aati n No. with the i provisions N1 of Or naNo. 163, Oramrdi rice, Ordinance hepiN0. 1653 and this t Ordinance. The principal and I' anei of the sonde hell not withhinula an indebtedness or na City vmiihin any constitutional or tatutorv ion I.' lea t t, Sly bei su to ti a bonds and coupons -bee! be in s sis the foA lbwg form the beam is for Series a and there ey be s ofpt the changes i rifled the demob of yarllers are h and re Mayor and City Clerk are hereby au','- M nod d'.-r^M l0� ',!TED STATES OF AMERICA I STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE —PER CENT WATERWORKS AND SEWER REVENUE BOND, SERIES A. Nn KNOW ALL MEN BY THESF. PRESENTS: That the City of Fayetteville, County of Washington. State of Arkansas (the "City',, acknowledges itself to owe, and (or value received. hereby promises to pay to bearer, or if this bond be regts- lcrest 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 , 14-, and to pay Interest thereon at the rate M' - per cent (—per rent) per annum. from the date hereof until paid. Interest is payable 19—, and semiannually there- after on each I and 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 rFglsteredas to interest.: may be by cheek or draft mailed to the regis- tered owner at his address. reflected on the registration book of the City main-.. psi nM by .t be. Tluatee. This bond ta-ene of a series of Water- works and Sewer Revenue Bonds, Series I A. aggregating — Dollars (e—) in prin- Olpal amount, nurAlwred frem 1-A to' —A. inclusive, all of like lemur and' effect except as to number, 'denomi- nation, rate -of Interest, maturity and right of prior redemption (the "Series A Bonds"), issued for the purpose of paying the Ask of constructing exten- sions. betterments and Improvements to the Waterworks and Sewer System the "System"), and paying the expenses of authorizing and issuing the bonds. The Series A Bonds are part of a total euthorized amount of up to $4.099.990 (We "bons') being Issued in a series. all of which will rank on a parity of security. The bonds an issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas. Including particularly Act No. 131 of the Acts of Arkansas of 1933, as amended and Act. No. 132 of the Acts of Arkansas of 1913 as amended, and the decision of the Supreme Court of the State of Arkansas in Harrison v. Braswell, 208 Ark, 1094, 194 S.W. ' 2d 12 (1946). and pursuant to Ordinance No. 2074 of the City; duly adopted and approved on the 23rd day of Deeemink rw, and an Implementing IesolnRan or resolutions (Collectively . referred 'to as the "Authorizing' Ordinance"l, and do not constitute an indebtedness of the City within any constitutional or statu-'. Cory lImltation, libe bonds are not general obligations of the City but are special -obligations payable solely from net revenue, derived from the operation of the System. The bonds are issued on a parity ae to lion, pledge and secur- ity with an issue of Waterworks and'. Sewer Revenue kerunding Bonds, dated June 1, 19®, issued pursuant to ResoluUan No. 7-C. adopted and ap- proved an April 8, 1963 ("Resolution No. 7-") and an Issue of Waterworks and Sewer Revenue Bonds, Series 1984, dated September 1, 1868, issued pursuant to Ordinance No, 1508, adopted and approved on Augmt 8, 1966 ("Ordinance No. 1508") and issued pursuant to Ordin- ance No, 1653 adopted and approved on seebrary -3, 1969' ('Ordinance: No. 16539 (collectively the- "outstanding hnnds''E An amount of System revenues sufftcimt' to pay the principal of and interest on the bonds and the outstanding bones is to be set aside in a special fund for that purpose identified as Works and Sewer Revenue Riling Bond Fund" created by Section 5 of Resolution No, 7.0. Refer- ence is hereby made to the Authorizing Ordinance, and to Resolution No. 7.63, Ordinance No. 1508 and Ordinance No. 1653, 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, [wihotd. Bmiytion, the covenant of the Chy to outloo fn rates Mr water and sewer servloes-whict, shall be sufficient for W Borg As produce revenues for Operation add maintenance expenses, for the payment of the prinel- pal 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 Nn. 7-63 Ordinance No, 1.508 and Ordin- nnre No. 1653; at' the required levels. The Series A Bonds An subject All redemption prior to maturity At follows- NoliCe Of the -... 1"r "0 .e. c she r published one time in a new - rat of amend rvrulat nn thmn7a^'t the sole " drkonIa, published 'u, ('it) little fleck . Arkan.aa, clvru numb, r and maturity or rarh bond hei" Call( I with the publ iranm) to be a. lean' 'ifteen .iii da• . prior I rede:_ptimt dal,. and Alter the dot' ^' for redemption each bond an called shall ,ease to bear interest, provided funds for its payment are on deposit with the Paying Agent at that time. In ad' hition, notice shall be given by certified or registered mail 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 as bond registrar and if all outstanding bonds shall be registered as to principal thin notice by certified or registered mall 1 the registered owners thereof as taforesaid shall be tosufficient, and itti sshall ht be necessary to publish notice of the cell. This bond may be registered as to principal or as to red principal and Interest and maybe a annefwit such the regio- and, the manner, with the etiont and subject re the terms and rood Minna sin nrwfo hereon, So ion en n tpeon. nlone for ntained in endorsed bon hrrenn, nothing contained di this shot a in lit \olio thing otiabiity fhthi� bondt or impair the hall be ebiof a V bons, and this me Shan deemed l : no 1O ste instrument under the laws of the state of Arkan,cas and issued with the int ent that the laws of the State of Ar- kansas n shin its tone valet This bond been not be vain l u Ira it shall have been duly signedtl by ❑ie Trustee, hereon dal.. simM by the Trustee, 1S HER E C Y CERall .RECITED acts, AND required that all exist conditionseand things ert mad pr m deist happen and be peteoomM Acr pre' - dent to and in eihr pen'.ed A Bonds have existed, have happened and have been performed r due time, than and manner as required by law; that the sotindebtedness recar'. by the bonds statutory not exceed any nor, Iut Iona. or alareven son ila a and led! cWa- aind revenues have hem hedgee m and will be set the Into the Ordinl - hind provided in se f Plad• -.it Ordin- ance of r the pnepese of thing the prin- cipal N and interest WHEREOF, the IN WITNESS Cis bpd toil by Arkaexecutes, has caused am this be bond tofacsimile be a signatu In Ile name or, the mannsignature nnh a the Mayor, the manual xlsn more of r I, C City Clerk. and its corporate real to ct-eo Ans h sod has eaused the into net coupons hereto attached to be es emir. by thete facsimile t do% of Its alnynr, all as of the FT din . Ip CITY OF FAYFBY (Facsimile ARKANSAS By lF'acsimlle Signal Maor Nly ur ATTEST: DARLENE WESTBROOK City Clerk (Seal) (Form of Coupon) No. - - 5— .. On the first day of 10—, the ( .f Fayrttrva.e. n'ashington fbunty, Arkansas, unless the bond to which Ile coupon is attached is paid prior there,o. hereby pr niseb l0 Val to bears soli'* from the special fund referred to in the bond. DOLLARS in lawful money of the United Slates of America, at Me principal office of ---- -- -, --, Arkansas, being six (6) months interest then due on its Waterworks and Sewer Revenue Bond, Series A. dated 19 and numbered CRT) OF FAYEITE:VnJ.E, ARKANSAS By (Facsimile Sign a turn Slayer (On each bond shall appear the following:) CERTIFICATE T4•Is is on( of twe bonds of the 6'ity of Fayetteville. Arkansas, described herein, designated Waterworks and Sewer Revenue Bonds, Series A. rte. a. 111P nn Monkrf Re ni'. d rO¢.� •• ).n In rin • :1 1 . L. ..1 'i i k -n :1 Lin erg-rem'�n I. he- np!l rl ,i•('. n 1 n) I ti'.. r, rr Lrrl r:; IT '- rvd,r o..rm ,,,.n In ire arC Ihe• rpis F.,vr 'I Ace Ifl( 'A era' s ^It be I ',,ern nun l or his legal represru „ I, In: evening oil to a F. u I Iv'1 in presets tatck l:' "1 `I In- n . a'laohed rntcre>i ioA I. tively became clue pint 'lIt it,ren I the rrn':,Iral .m Of Ih , iii n In pr 'e wl iL, t, nn tn'll r hNII rl list 1 pA Attic In 1 nr1 TII I,:,. .'. d, p i t scroll IhAt If atom 1 u rr r n .n ln. Mond I At ang Llnr ,!car rfl l'•r .wade ins bond is mg'... name or the nver inn '.i 'ntercod r.. pons attached evidencing ell beat to he thereafter paidihereon shall be sure -n. dto edthat to bond red end, as de temnr, to LIIeffectbon WI: endorsed i the A aft the Fest registrarevieand thr"n- surre interest evidenced by Auril check ored aft ors may be paid to, check or draft or the hone registrar t at ttlr Imes provided herein to teregistered owner of this bond by mail to the akfrnb shown on the nn . books. 'iris band when se convert into a found ehe Assured air a rbothecd velar, pal and interest may rec read, I rn:a athe rnapen bond at the wr111M pre. o- ta t the office caner and upon presr- tetloa At Ihe ofrlee of said bond rest, Oar. Upon such reconversion the coupone npnafte. the Interest W become due thereagain het to the date of naa WI' again be a ill be to this bond and a Statement will he endorsed hereon by the bond registrar in the registration blank below whether it is then elstered as to pctr es' or payable to bearer. Oats M Rsl racial: NeryM e Registered Owner: Manner gIof RPgitentlea; Signalers Of Bond Registrar Section 5. It is hereby expressly found and declared that the provisions of Sec. tion 19 or Resolution No. 763 (and Section i , of Ordinance No. 1313 and Section 14(l) of Ordinance No. 1663) pertaining to the Issuance of parity bonds have been fully met and complied with and Thal, Iheretpre. the Series A R(otlI e rank on A party or security with the Outstanding bonds. In this regard, the required or" •fledge of the in depeadrns certified public accountant shall be filed in the office of the City Clerk Prior to the delivery of the Series A Bonds. Section 6. The City covenants. rear. firms and agrees that all revenues derived tram the System shall he kept separate and apart from other funds of the City, To that end the follow rig special Funds have heretofore been created and are hereby reaffirmetl; lap Walcrwo ks and sewer Fund (b) Waterworks and Sewer Revenue Refunding Bond Fund (the "Bond (N Waterworks and Sewer Revenue Refunding Band Reserve Fund (the ••Reserve Fund •); (d) Waterworks and Sewer Contincc Reserve Ithe 'Con Mngen(y Fund' cep %vaterwartc and Sewer rep,1 Replacement Fund (the "Repel- '— Replacement Fund") Cr) Waterworks and Sewer Si.' Revenue Fund (the ''Surplus Re'.. Fund"). Section 7. The rite rnvenantc rims and asrees that so long as of the principal of or Interest in I bonds and outstanding bonds rein l'.' outstanding and unpaid, the en lee nues derived from the System shall he set aside when received and (lepa,'tad in the %Vaterworks and Sewer Fund Them shall be disbursed therefrom each month such sums are are reasonable and proper for the costa of operation bud maintenance of the System, and thereafter the remaining revenues shell be deposited In the Funds retained In in Section 6 of this Ordinance and In tthe order at priority listed in Secion Vc„t inn 8. The deposits In Ihe Boo- ,d ,1.11l he made on the first busdne of each moth (a) in the amour '. to be cold nto sun:: '.cud n No, 763, Ordinance No. 1,5- AIII (,-Inane No. 1653 ([or the Orly ar.u'd1og bonds) plus (b) the annul, -A mgmn•d for the payment of the pmncpa .I 'e nn the bond, and the T . IP 2I:{ Paying Agent's fee, as t"` "a r•e •epome due in accordance w'I, 1^e schedule to be set out in of Ve Boa nt I• After the Sae of "1r 1 1 to In Section t herwot at; 's for the bonds shelf be as an the first business day of ea,, 16th of the next succeeding in- "' ps>men[ and Trustee's and Paine Ave -.'s fees to become due on Ib On the first business day of net r beginning one year prior to the L' a maturity, 1 -12th of the flex! r rig p-incpal payment and Tres I, And Paling Agent's fees on the b nt. and im, amounts, If any be necessary to provide sufficient funds for the first In'=r-st due. Nn further payments need be made Into the Bond Fund when the amount contained therein and in the Reserve I'. - at can; coital to the aggregate pr.r. ,Pat Amount of the bonds and out - 1 hl Is then outstanding, plus me amount of interest then due or there- an.r to become due on all such bonds. Al money paid Into the Bond Fund I' be held by the City In trust fair -older or holders of the bonds and utstanding bonds, and the coupons r::.r-telling thereto, and the City shall r rave any beneficial interest or right le .0 .h money. i.1 money deposited in the Bond Fund abslI be used solely for the purpose a' le ying interest on and the principal Of b bonds and the outstanding bonds. I... e- w:ih the Trustee's and Paying A.. I feet and for no other purpose. Sr Ion 9. The required level of the Be•e Is Fund shall be increased by Sr :. fount equal to the average annual den• ervice (principal and interest) on ire rods. At the option of the City. a arI portion of ;he man red cress may be deposited into the Beef a Fund out of the proceeds of the le of the bonds or the Increase m • part In, deposited out of bond proceeds) may be deposited out of reve- sues over the five-year period ending f:. r • ears from the date of the balls w " nn • Iris than 20 per cent of the In'reise (or the part not deposited out of bond proceeds) to be deposited during ea' of such five years, T Reserve Fund shall be maintained at 11'.• required level and shell be used for 1 a purpose other than to prevent A del ult In the payment of the principal of and Interest on the bonds and the our.:,iding bonds. In the event moneys from :he Reserve Fund are utilized for the aforesaid purpose, the Fund Mall be re'tored to the required level from The f st moneys In the Waterworks And Sewer Fund avallablo for the pur- pose. Section 10. There is now on deposit In the Contingency Fund the sum of no' less than $100,000. The Co,tingenev Find shall be maintained at not has than that fi me and lip be asked eely to 'he extent necessary to meet any •mergeney arising out of or artecti the continuous apemtbn of the System as a revenue producing nndartaking for which then are an other Rinds available or for preventing the default to the payment oOr�nd� of or intend an the outstanding bowie, or per tonulng any covenant of the City for wltidt there are no other funds available. In the !rent moneys from the Cantln- geney Fund an enpended for than ph 5, or any of them the Cootin- Aency Fund Map be restored to $100,000 1mm the first funds available in the Relerwork, and Sewer Fund, as sped. fled in Section 12 hereof. Section 11. There is now on deposit bl the Repair and Replacement Fund Ih1' sum of not less than $50,000 The money in the Repair and Replacement F .rod shall be used solely for the purpose Of Paying the costs of replacements made necessary by the depreciation and. Or Obsolescence of the System and in the event moneys from the Repair and Replacement Fund are expended for throe purposes, or any of them, the Repair and Replacement Fund shall he resrnnd to $5O,%o from the first funds evadable in the Waterworks and Sewer, Fund as specified in Section 12 hereof. i I Section 15. The bonds of earn I shall be object m redempt to maturity as shelf he ,.'t the Notice of Sate or .qn mplementing r' s Of :he Faye n 1 . I' -,. ''••P••.• tK tD and unallocated re' - flues of the System for the following month or months (having the priority Of ..„n :n the order the F'unne ;t sr -r .� r' I • tuitt any reds npLue a- A ..^s t lie cs of olu any other issue s Ifi. Test ones ill ter:: l lint i r he used to call thA standing bonds for rel.^:npli I -r 1 the construction of improvements apnt betterments to the System, or far any lawful purpose. Section 14. The provlslms of Sections 4, 10 through 20 and 23 of Resolution INo. 7-63 are hereby made applicable to the bonds and shall inure and apper tale to the bonds to the same extent and with like force and effect as Is 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 n said Sections shall mean the oulstand. Ong bonds and the bonds of this issue. The Irbi ll offer! of the nrorporatln¢ of those previsions of Resolution No. 7'63 herein, shell be to make those pmv1 alone fully applicable to the bonds of :this issue and the language of Resolution No. 763 shall be construed and Inter prated to accomplish that Intended effect I In this regard, however, it is expressly canvenanted: SO Ion: a; an" of the ol,ls'a'1 nR bonds, or any of the bonds of this issue, or any bonds subsequently issued on a parity therewith, are outstanding and unpald. print'pal and nter1.t -,r , b shall always continuously and efficiently operate the System as a revenue pro. during undertaking and shall always charge and maintain in effect (and Nell 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 ex. penes of the System, for making the required deposits Into the Bond Fund for the purpose of paying the principal of, Interest an and Paying Agent's fees In comectlDn with the bonds and me outstanding bonds, maintaining the Reserve Fund at the regafred lent, I maintaining the (bntlnRency Fund at the required level, maintaining the Repair and Replacement Fund at the required level, and discharging all other obli- gations of the City under Revolution No. 7N, Ordinance No, 1506, Ordinance No. 1653 and under this Ordinance; (2) The provlsbn of Section 19 of Resolution No. 762 pertaining to the issuance of additional bonds shall he applicable with the result that the bonds of this Issue shall be included with the outstanding bonds end with any bonds then proposed to be issued Insofar as the 133 and one-third per cent courage requirement for parity bonds Is con_ ceroed; and (3) The Investment provisions of Section M of Resoution No. 7. are intended to be applicable to any funds available for investment (except moneys 'th the Construction Fund created by Section 16 of this Ordinance which contains express provisions) and shall be considered part df We particular fund out of which moneys art Invesmd with earnings credited to the Fund and losses charged against the Fund, except when earnings in Me Reserve Fund, the Con- tingency Reserve and the Repair and Repkcen,ent Fund increase the amount :n the particular fund in excess of the required level of the particular fund the excess may be transferred to the Waterworks and Sewer Fund. amount of the accrued interest shall � b) Any exhtinstted n t stthe Bond specified. if Any, In a Letter of Instructions signed by the Mayor and delivered to the Trustee, as an Increase In the Reserve Fund shall be deposited into the Reserve Fund; and Ic) T3te be coeds shall t of the C and de;— stru F;. nay., by the - that is e Insurance the Conn amount l5uma as here, - uously s. or fully - United issued issued b' The mot shall be the cost merits, r oak nx I Pone. .a -a a':'r- eg fee. legal fees, and paying any if Cue (` •-: incurred in the out' and issuance of the bonds. F. bursement shall be by check or signed by the City Treasurer Manager of the System whir reflect in respect of each paym (1) The.name of the person, or corporation to whom payment. (2) The amount to be paid; an,, (3) The purpose by general clasvfl cation for which the obligation to be paid was incurred. When the improvements have been completed and all authorized expendi- tures from the Construction Fund hair been made, It there be any remaining balance to the Thins l n,clu on sunlit " City Treasurer and this Manager of the System shall file a Certificate with the depository of the Construction Fund, wdh a cagy of the Certificate to be tiled In the office of the City Treasurer stating that the improvements have beer aceomplisbed and that all authorized e. penditures have been made and -- fying the disposition to be ma' remaining balance In the r. Find, In this regard .- balance may be used for bonds or may be Iran='' Hosed FDnd of the Riser.. receipt of the Certificate of the Construction Fund or disburse the remain,l directed in the Certificate. Moneys in the Construction n coal be invested and reinvented, as directed by the City Treasurer or Manager of the System, In direct obligations if, or obligations the principal of and interest on which are uncondltbnally guaranteed by, Me 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 Slate of Arkansas mr" ' :. ^ mature not later than the d_ the moneys in the Construe w'1! I•., ..neded in' the spent 1 C(, Mru,:taor Fund and any losses All he charged to the Cooknrctioe Fund.