HomeMy WebLinkAboutOrdinance 2438 L ED
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ORDINANCE NO , 2438 , RK Nq S
AILH4 �`Ol h1EYER
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION IMPROVEMENT BONDS FOR THE PURPOSE OF
FINANCING THE COST OF CONSTRUCTING AN EXPANSION
TO THE CITY LIBRARY ; ACQUIRING A SITE OR SITES
FOR AND CONSTRUCTING A14D EQUIPPING THE CITY ' S
J PARKS INCLUDING CONSTRUCTING AND EQUIPPING
SOFTBALL AND FOOTBALL FIELDS , PICNIC SHELTERS
AND FACILITIES , ALL WITH APPROPRIATE FIXTURES
AND APPURTENANCES ; LEVYING A TAX SUFFICIENT TO
PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS ;
PRESCRIBING OTHER MATTERS RELATING THERETO ;
AND DECLARING AN EMERGENCY .
WHEREAS , the City of Fayetteville , Arkansas , is a city of
the first class ( the " City " ) ; and
WHEREAS , by Ordinance No . 2388 , duly passed by the Board
of Directors of the City , and approved on the 20th day of October ,
1977 , there was submitted to the qualified electors of the City the
question of issuing , under Amendment No . 13 to the Constitution of
the State of Arkansas , General Obligation Improvement Bonds in the
principal amount of $ 800 , 000 ( the " bonds " ) for the purpose of
financing the cost of constructing an expansion to the City Library ,
acquiring a site or sites for and constructing and equipping the
City ' s parks including constructing and equipping softball and foot-
ball fields , picnic shelters and facilities , all with appropriate
fixtures and appurtenances ( the " improvements " ) , paying necessary
expenses incidental thereto and paying the expenses of issuing the
bonds ; and
WHEREAS , at a special election held November 29 , 1977 , a
majority of the electors voting on the question approved the issuance
of the bonds ; and
WHEREAS , the results of the election were announced by the
Mayor by a Proclamation duly published on December 7 , 1977 in a news -
paper of bona fide circulation in the City ; and
RFFL�
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WHEREAS , after due advertisement for the time and in the
manner required by law , bonds in the amount of $ 800 , 000 were offered
for sale on sealed bids on April 18 , 1978 , and at the sale T . J , Raney &
Sons , Inc . , and Hill , Crawford & Lanford , Inc . ( the " purchasers " ) bid and
offered the price of par and accrued interest from January 1 , 1978
to date of delivery for bonds bearing interest at the rates of 5 . 0 $ �
per annum , plus a premium of $5 . 00 for a net effective rate of 4 , 99993% , and this
being the best bid , the bonds were sold to. the purchasers at that price ;
NOW , THEREFORE , BE IT ORDAINED by the Board of Directors
of the City of Fayetteville , Arkansas :
Section 1 . That the improvements be accomplished .
Section 2 . That the sale of the bonds to the purchasers
set forth above be , and the same are hereby , approved and confirmed .
Section 3 . That under the authority of the Constitution
and laws of the State of Arkansas , including particularly Amendment
No . 13 to the Constitution of the State of Arkansas , City of Fayette -
ville , Arkansas General Obligation Improvement Bonds are hereby autho-
rized and ordered issued in the total principal amount of $ 800 , 000 ,
the proceeds of the sale of which are necessary to provide sufficient
funds for accomplishing the improvements . The bonds shall be numbered
consecutively from 1 to 160 , inclusive and shall be in the denomination
of $ 5 , 000 each , 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 . Payment of the bonds and interest coupons
shall be made at the principal office of the Trustee and Paying Agent .
The Trustee and Paying Agent will be designated by the purchasers and
the City will approve by resolution of the Board of Directors , Pay -
ment 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
shall be dated January 1 , 1978 and shall mature on January 1 of each
year , as follows , but are callable for redemption prior to maturity
as hereinafter set forth :
® 35� 767
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YEAR BOND NOS - AMOUNT
1981 1 - 10 50 , 000
1982 11 - 20 50 , 000
1983 21 - 31 55 , 000
1984 32 - 43 60 , 000
1985 44 - 55 60 , 000
1986 56 - 68 65 , 000
1987 69 - 82 70 , 000
1988 83 - 96 70 , 000
1989 97 - 111 75 , 000
1990 112 - 127 80 , 000
1991 128 - 143 80 , 000
1992 144 - 160 85 , 000
Section 4 . That the bonds shall be executed on behalf of
the City by the Mayor and City Clerk ( with the facsimile signature
of the Mayor and the manual signature of the City Clerk ) 'and shall
have impressed thereon the seal of the City . Interest coupons shall
be executed by the facsimile signature of the Mayor , The facsimile
signature of the Mayor on the bonds and coupons shall have the same
force and effect as if he had personally signed each of the bonds
and coupons .
Section 5 . That the bonds and coupons shall be in substan -
tially the following form :
® 959 768
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
% GENERAL OBLIGATION IMPROVEMENT BOND
No . $ 5 , 000
KNOW ALL MEN BY THESE PRESENTS :
That the City of Fayetteville , Washington County , Arkansas
( the " City " ) , acknowledges itself to owe and for value received pro -
mises to pay to bearer , or if this bond be registered , to the registered
owner hereof , the sum of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America on the first day of
January , 19_ , and to pay interest hereon at the rate of
percent ( 8 ) per annum from date until paid . Interest is payable
semiannually on January 1 and July 1 of each year , commencing January 1 ,
1979 . Payment of principal , and payment of interest when evidenced by
coupons , shall be made upon presentation of the bonds and coupons
at the principal office of ,
Arkansas ( 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 as Bond Registrar .
This is one of an issue of 160 bonds , aggregating $ 800 , 000 ,
dated January 1 , 1978 , and numbered from 1 to 160 , inclusive , all of
like tenor and effect except as to number , rate of interest , maturity
and right of prior redemption . The bonds are issued for the purpose
of financing the cost of constructing an expansion to the City Library ,
acquiring a site or sites for and constructing and equipping the City ' s
parks including constructing and equipping softball and football fields ,
picnic shelters and facilities , all with appropriate fixtures and
appurtenances ( the " improvements " ) , paying necessary expenses inci-
dental thereto and paying the expenses of issuing the bonds .
059 709
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The bonds are issued pursuant to and in full compliance with
the Constitution and laws of the State of Arkansas , particularly
Amendment No . 13 to the Constitution of the State of Arkansas , and
pursuant to Ordinance No . of the City , passed and approved on
the day of 1978 ( the " Authorizing Ordinance " ) ,
and an election duly held at which the majority of the legal voters
of the City voting on the question voted in favor of the issuance of
the bonds . The bonds are general obligations of the City to the
payment of the principal of and interest on which the City pledges
its full faith , credit and taxing power including a continuing annual
tax of two ( 2 ) mills ( the " special tax " ) on the dollar of the assessed
valuation of all taxable real and personal property of the City levied
under the provisions of Amendment No . 13 . The City reserves the
right to suspend the collection of the tax on an annual basis only
in accordance with certain terms and conditions set forth in the
Authorizing Ordinance which are designed to insure that sufficient
moneys must be on hand to cover debt service during any period
for which collection is suspended . Reference is hereby made to
the Authorizing Ordinance for such terms and conditions and for
the details of the nature and extent of the security and of the
rights and obligations of the City and the holders and registered
owners of the bonds .
The City reserves the right , at its option , to redeem bonds
maturing January 1 , 1987 through January 1 , 1992 , both inclusive , in
whole , or in part in inverse numerical order , on January 1 , 1986 ,
or any interest payment date thereafter , at a redemption price of
the principal amount being redeemed plus accrued interest to the
date fixed for redemption .
UUJ 770
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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 , giving the number and maturity of each bond being
called , 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 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 Bond Registrar and if all outstanding
bonds shall be registered as to principal and interest , then
notice by first class mail to the registered owners thereof 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
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 is issued with the intent that
the laws of the State of Arkansas will govern its construction .
IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all
acts , conditions and things required to exist , happen and be
performed , under the Constitution and laws of the State of Arkansas ,
particularly Amendment No . 13 to the Constitution of the State of
Arkansas , precedent to and in the issuance of this bond have
existed , have happened and have been performed in due time , form
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and manner as required by law ; that the indebtedness represented
by this bond and the issue of which it forms a part does not
exceed any constitutional or statutory limitation ; and that a tax
sufficient to pay the bonds and interest thereon has been duly
levied in accordance with Amendment No . 13 to the Constitution of
the State of Arkansas and made payable annually until all of the
bonds and interest thereon have been fully paid and discharged .
This bond shall not be valid until it shall have been
authenticated by the Certificate hereon duly signed by the Trustee .
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 coupons
hereto attached to be executed by the facsimile signature of its
Mayor , all as of the first day of January , 1978 ,
CITY OF FAYETTEVILLE , ARKANSAS
ATTEST :
By ( facsimile signature )
Mayor
City Clerk
( SEAL )
r: � 9 77'
( form of coupon )
No . $
On the first day of ( January ) ( July ) , 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 on the bond , hereby promises to pay
to bearer
DOLLARS
in lawful money of the United States of America at the principal
office of being
six ( 6 ) months interest then due on its General Obligation Improvement
Bond , dated January 1 , 1978 , and numbered
CITY OF FAYETTEVILLE , ARKANSAS
By ( facsimile signature )
Mayor
On each bond shall appear the following :
CERTIFICATE
This is to certify that this is one of the City of Fayette-
ville , Arkansas General Obligation Improvement Bonds , dated January 1 ,
1978 , mentioned and described within .
By
Authorized Signature
959 773
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PROVISIONS FOR REGISTRATION AND RECONVERSION
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 regis -
tration in the registration blank below , and this Bond may thereafter
be transferred only upon an assignment 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 reg-
istrations 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
due , 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 reconverted into a coupon bond at the written re -
quest of the registered owner and upon presentation at the office of
said bond registrar . Upon such reconversion 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 is
then registered as to principal or payable to bearer .
nb 4 7.7
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Manner of Signature of
Date of Registration : Name of Registered Owner • Registration : Bond Registrar
775
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Section 6 . That in , order to pay the principal of and
interest on the bonds as the same mature there is hereby levied a
tax of two ( 2 ) mills ( the " special tax " ) , on each dollar of assessed
valuation of the taxable real and personal property within the City ,
which special tax is hereby pledged to the payment of the principal
of , interest on and Trustee ' s and Paying Agent ' s fees in connection
with the bonds . The special tax shall be collected in 1979 and ,
unless the collection is suspended as hereinafter set forth ,
annually thereafter until all of the principal of and interest on
the bonds are paid in full or provision is made therefor by there
being on deposit in the Bond Fund an amount sufficient to pay , at
maturity or earlier redemption , the principal of , interest on ,
Trustee ' s and Paying Agent ' s fees in connection with and expenses
of redemption , if any . In determining the sufficiently of- the
amount on deposit in the case of redemption , interest need be in-
cluded only to the redemption date provided the necessary redemption
notice is given and other steps necessary for accomplishing the
redemption are taken or arranged for .
The collection of the special tax may be suspended in whole
( but not in part ) on an annual basis only in accordance with the
conditions hereinafter set forth , it being understood and covenanted
that unless such conditions occur the collection shall automatically
take place and there shall be no suspension . An annual suspension
shall occur if and only if there is filed with the County Clerk
of Washington County on or before the first day of November of the
year immediately preceding the year in which the special tax is to
be collected a certificate signed by the Mayor of the City and an
authorized officer of the Trustee certifying that there is then on
deposit in the Bond Fund ( hereinafter created ) an amount sufficient
to pay the principal of , interest on and Trustee ' s and Paying Agent ' s
fees and expenses in connection with maturing principal and interest
on the bonds until the day after the latest date under the law on
which the special tax can be paid on the basis of the collection
thereof being reinstated the following November 1 . The . certificate
shall set forth the necessary details justifying the suspension
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on the basis of the above conditions , including , without limitation ,
the amount then on deposit in the Bond Fund and the amounts that
will become due for maturing principal , interest and Trustee ' s and
Paying Agent ' s fees until the day after the latest date under the
law on which the special tax can be paid on the basis of the col -
lection thereof being reinstated the following November 1 . In
this regard , the City may at its option deposit moneys into the
Bond Fund from lawful sources other than collections of the special
tax . The County Clerk shall be guided solely by the filing of such
certificate and shall be entitled to rely upon the certificate in
effecting any annual suspension of collection .
All collections from the special tax shall be deposited , as
and when received , into a special fund in the name of the City
designated " City of Fayetteville , Arkansas General Obligation
Interest and Sinking Fund - 1 /1/ 78 Bonds " ( the " Bond Fund " ) , which
fund shall be maintained in a bank to be selected from time to time
by the City but which must be a member of the Federal Deposit Insurance
Corporation , and all moneys in the Bond Fund shall be used solely
for the payment of the principal of , interest on and Trustee ' s
and Paying Agent ' s fees in connection with the bonds at maturity
and at redemption prior to maturity . The amounts on deposit in
the Bond Fund at any time in excess of that insured by the Federal
Deposit Insurance Corporation must be continuously secured by
bonds or other direct or fully guaranteed obligations of the United
States of America , except that moneys invested as hereinafter pro -
vided need not be so secured . Moneys in the Bond Fund may be
invested in direct obligations of , or obligations the principal of
and interest on which are guaranteed by , the United States of
America , which mature or are subject to redemption at the option
of the holder at or prior to the date the moneys will be needed
to meet debt service requirements on the bonds . All such investments
shall be considered a part of the Bond Fund from which made and all
earnings and profits credited to , and all losses charged against ,
such fund .
959 777