HomeMy WebLinkAboutOrdinance 2524 �pP r
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FILED FOR RECORD
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1379 I4AY - 8 PN 3: 01
WASHINGTON COUNTY. ARK.
ORDINANCE NO . a5 `G2 ALMA KOLLMEYER
AN ORDINANCE AUTHORIZING THE CONSTRUCTION AND CIRCUIT CLERK
EQUIPIifrIT OF IMPROVEMENTS TO TT E FAYEITEVILLE
MUNICIPAL AIRPORT , DRAKE FIELD ; AUTHORIZING
THE ISSUANCE OF AIRPORT REVENUE BONDS ; PROVIDING
FOR THE SECURITY AND PAYMENT OF THE BODDS ; PRE-
SCRIBING OTHER MATTERS PERTAINING THEftE-i'0 ; AND
DECLARING AN EMERGENCY .
WHEREAS the Fayetteville Municipal Airport , Drake Field
(the "Airport " ) is operated on behalf of and for the mutual benefit
of the City of Fayetteville , Arkansas (the "City " ) and the citizens
and inhabitants thereof , by the City , pursuant to Act No . 175 of the
Acts of Arkansas of 1959 , as amended ; and
WHEREAS upon necessary investigation it has been found by
the Board of Directors of the City that it is necessary and in
the interest of the City that there be constructed and equipped
improvements to the Airport , in view of the increasing and rapid
growth and development of the City and its environs ; and
WHEREAS there has been prepared by a duly qualified
consulting engineer a report and estimates of costs concerning the
proposed improvements , which report and estimates have been studied
by the Board of Directors and a copy of which is on file in the office
of the City Clerk and to which reference may be had by any interested
party ; and
WHEREAS the total estimated cost of the proposed improvements ,
including payment of expenses incidental thereto and to the financing
thereof ( the "improvements " ) is approximately $1 , 200 ,000 ; and
WHEREAS the City can obtain sufficient funds to pay the total
estimated cost of the improvements by the issuance of airport revenue
bonds in the principal amount of $600 , 000 as the City ' s portion of the
cost ; and
WHEREAS the City has entered into a contract for the sale of its
Municipal Airport Revenue Bonds in the aggregate principal amount of $600 , 000 ,
with Payne , Weber , Jackson & Curtis and Powell & Satterfield ( the "purchasers " )
at a purchase price of 98 cents on the dollar for bonds bearing interest at
6 . 60% 5 6 . 70% , 6 . 80% 3 6 . 90% 3 7 . 00% , 7 . 10% 3 7 . 20% and 7 . 25% per annum, as
described in detail hereinafter .
MI�RoA� ED 19,9 '988 280
DATE
REEL�—
y
NOW , THEREFORE , BE IT ORDAI*IED by the Board of Directors
of the City of Fayetteville , Arkansas :
Section 1 . The construction and equipment of the
improvements is hereby authorized .
Section 2 . The sale of the bonds to the purchaser upon
the terms set forth above is hereby approved and confirmed .
Section 3 . To finance the cost of the improvements ,
including costs incidental thereto and incidental to the financing ,
there are hereby authorized and ordered issued City of Fayetteville ,
Arkansas , Municipal Airport Revenue Bonds , Series 1979 , dated
May 1 , 1979 , in the aggregate principal amount of $ 600 , 000
( the " bonds " ) .
The bonds are authorized and issued under the authority
of the Constitution and laws of the State of Arkansas , including
particularly Act No . 175 of 1959 , as amended .
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 . ( References herein to " holders " or " bond-
holders " shall include the registered owners of bonds registered as
tol,, principal or as to principal and interest . ) 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 and the
interest coupons may be executed by the facsimile signature of the
Mayor , which signature shall have the same force and effect as if
he , had manually signed each of the bonds and coupons , and the bonds
shall be executed by the manual signature of the City Clerk ,
Section 4 . The bonds shall not be general obligations
of the City and shall not constitute an indebtedness of the City
within the meaning of any constitutional or statutory . limitation ,
but shall be special obligations , secured by a pledge of and payable
solely from gross revenues derived from the operation of the Airport ,
aspspecified in detail hereinafter in this Ordinance . A sufficient
amount of the revenues derived from the operation of the Airport shall
be set aside and deposited in the " Airport Revenue Bond Fund
988 281
created and to be maintained pursuant to the provisions of this
Ordinance , to pay the principal of , interest on and Paying Agent ' s
fees in connection with the bonds as due and payable . Such pledge
of , gross revenues is subject to the restriction that the City
shall never in any fiscal year be bound beyond an amount that
would , together with other expenditures and contracts of the City
call for a payment or payments in that fiscal year in excess of the
total revenue for the City for that fiscal year , so that the City
shall never at any time by its contract or pledge of gross revenues
and rentals violate the provisions of Amendment No . 10 to the
Constitution of the State of Arkansas .
Section 5 . The bonds will be dated May 1 , 1979 , and interest
on ' the bonds will be payable semiannually on May 1 and November 1
of each year , commencing November 1 , 1979 . The bonds will be
numbered , will bear interest and ( subject to the provisions set
forth hereinafter pertaining to redemption prior to maturity ) shall
mature as set forth in the following schedule :
Year Rate of
November 1 Amount Bond Nos . Interest '
1982 $ 25 , 000 1 - 5 7 . 00 %
1983 25 , 000 6 - 10 7 . 00 %
1984 30 , 000 11 - 16 7 . 00 %
1985 30 , 000 17 - 22 7 . 00 %
1986 35 , 000 23 - 29 7 . 00 %
1987 35 , 000 30 - 36 7 . 00 %
1988 35 , 000 37 - 43 6 . 60 %
1989 40 , 000 44 - 51 6 . 70 %
1990 40 , 000 52 - 59 6 . 80 %
1991 45 , 000 60 - 66 6 . 90 %
1992 45 , 000 69 - 77 7 . 00 %
1993 50 , 000 78 - 87 7 . 00 %
1994 50 , 000 86 - '97 7 . 10 %
1995 55 , 000 98 - 108 . 7 . 20 %
1996 60 , 000 109 - 120 7 . 25 %
Section 6 . 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 ) :
988 28�
I
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i
( form of bond )
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
% MUNICIPAL AIRPORT REVENUE BOND ,
SERIES 1979
No : $
KNOW ALL MEN BY THESE PRESENTS :
The City of Fayetteville , Washington County , 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 hereafter set forth , the principal sum of
DOLLARS
in ' lawful money of the United States of America on the first day
of November , 19_ , and to pay solely from that special fund interest
hereon at the rate of percent ( °s ) per annum , from date
until paid , semiannually on the first days of May and November ,
commencing November 1 , 1979 , upon presentation and surrender o£
the annexed coupons as they severally become '.due . Payment of
principal and payment of interest when evidenced by coupons shall be
at the principal office of ,
Arkansas ( the " Trustee " and " Paying Agent " ) . Payment of interest ,
when registered as to interest , shall 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 bond is one of an issue of City of Fayetteville ,
Arkansas , Municipal Airport Revenue Bonds , Series 1979 ( the " bonds " ) ,
aggregating in principal amount Six Hundred Thousand Dollars
( $ 600 , 000 ) dated May 1 , 1979 , numbered from one ( 1 ) to one hundred
twenty ( 120 ) , inclusive , all of like tenor and effect except as to
number , denomination , maturity and right of prior redemption , issued
for the purpose of financing a portion of the cost of constructing
and equipping improvements to the Fayetteville . Municipal Airport ,
Drake Field ( the "Airport " ) .
283
The bonds are issued pursuant to and in full compliance
with the Constitution and laws of the State of Arkansas , including
particularly Act No . 175 of the Acts of Arkansas of 1959 , as amended ,
and pursuant to an ordinance of the Board of Directors of the City ,
duly adopted and approved , 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 secured by and payable solely from the gross revenues
derived from the operation of the Airport . The bonds are authorized
by and issued under Ordinance No , of the Ordinance of the City ,
duly adopted and approved on the day of 1979
( the " Authorizing Ordinance " ) , to which reference may be made
for' a detailed statement of the terms and conditions upon which the
bonds are issued , of the restrictions and conditions for the
issuance of parity bonds , of the nature and extent of the security ,
and of the rights and obligations of the City , the Trustee and
the bondholders . An amount of the revenues of the Airport sufficient
to'. ' provide for the payment of the principal of , interest on and
Paying Agent ' s fees in connection with the bonds as the same become due
and payable is to be set aside and paid into a special fund , designated
" Airport Revenue Bond Fund , " created by the Authorizing Ordinance .
The City has fixed and has covenanted to maintain rates and charges
for the services and facilities of the Airport which shall be
sufficient at all times to produce revenues adequate in amount
for the proper and reasonable expenses of operation and maintenance
of ' the Airport , to provide for the payment of the principal of ,
interest on and Paying Agent ' s fees in connection with the bonds
as due and payable and to provide for the maintenance of required
reserves , and to make the required deposits for depreciation of
the Airport .
The bonds are subject to redemption prior to maturity ,
at the option . of the City , in whole or in part , with there to be
no , partial redemption of any bond , in inverse numerical order , from
funds from any source , on any interest paying date on and after
988 X84
i r
November 1 , 1989 , at a price of the principal amount of the bonds
being redeemed plus accrued interest to the date of redemption .
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 , 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
toithe registered owner of any bond registered as to principal at
the address of such owner reflected on the books of the 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
itlshall not be necessary to publish notice of the call for
redemption .
This bond may be registered as to principal or as to
principal and interest and 'may be discharged from such registration
in the manner and with the effect and subject to the terms and
conditions endorsed hereon . This bond is issued with the intent
that the laws of the State of Arkansas will govern its construction .
Subject to the provisions for registration endorsed hereon , nothing
contained in this bond or in the Authorizing Ordinance shall affect
orlimpair the negotiability of this bond , and this bond shall be
deemed a negotiable instrument under the laws of the State of
Arkansas ,
This bond shall not be valid until it shall have been
authenticated by the Trustee .
IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all
acts , conditions 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
988 285
as required by law ; that the indebtedness represented by the bonds
does not exceed any constitutional or statutory limitation ; and
that a sufficient amount of the revenues derived from the operation
of the Airport has been pledged to and will be set aside into the
Airport Revenue Bond Fund for the payment of the principal of and
interest on the bonds ,
IN WITNESS WHEREOF , the City of Fayetteville , Arkansas ,
by the Board of Directors of the City , has caused this bond to be
signed by the facsimile signature of the Mayor and the manual
signature of the City Clerk and sealed with the corporate seal
of the City , and has caused the coupons hereto attached to be
executed by the facsimile signature of the Mayor , all as of the
first day of May , 1979 ,
CITY OF FAYETTEVILLE , ARKANSAS
ATTEST :
By ( facsimile signature )
Mayor
City Clerk
( SEAL )
d'
988 28
( form of coupon )
No : $
May ,
On the first day of November , 19 _ , the City of
Fayetteville , Arkansas , unless the bond to which this coupon is
attached is paid prior thereto , hereby promises to pay to bearer ,
solely out of the funds specified in the bond to which this
coupon is attached ,
DOLLARS
in lawful money of the United States of America at the principal
office of
Arkansas , being ( ) months ' interest then due on '
its Municipal Airport Revenue Bonds , Series 1979 , dated May 1 ,
1979 , and numbered
CITY OF FAYETTEVILLE , ARKANSAS
By ( facsimile signature )
Mayor
On each bond shall appear the following :
CERTIFICATE OF AUTHENTICATION
Arkansas , hereby
certifies that this is one of an issue of bonds described herein
aggregating $ 600 , 000 , numbered consecutively from one ( 1 ) to one
hundred twenty ( 120 ) , inclusive , all of like tenor and effect except
as to number , denomination , maturity and right of prior redemption .
Arkansas
By
(Authorized Signature )
988 287
PROVISIONS FOR REGISTRATION A14D RECONVERSION
This bond may be registered as to principal on a registration
book 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 assignment duly
executed by the registered owner or his attorney or legal repre-
sentative in such form as shall be satisfactory to the Bond
Registrar , such transfer to be made on such book and endorsed 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 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 the Bond Registrar , a statement to that
effect will be endorsed hereon by the Bond Registrar and thereafter
interest evidenced by such surrendered coupons will be paid by
check or draft at the times provided herein to the registered owner
of ', this bond by mail to the address shown on the registration book .
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 request of the registered owner and upon presentation
at the office of said Bond Registrar . Upon such reconversion the
988 2.88
i
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 .
Date of Name of Manner of Signature of Bond
Registration : Registered Owner : Registration : Registrar
988 289
Section 7 . The City covenants that the rates and charges
for the services and facilities of the Airport shall never be reduced
while any of the bonds are outstanding unless there is obtained
from an independent certified public accountant a certificate that
the net revenues of the Airport ( net revenues being defined as gross
revenues less the expenses of operation and maintenance of the
Airport , including all expense items properly attributable to the
operation and maintenance of the Airport under generally accepted
principles of accounting ) with the reduced rates or charges will
always be equal to the amount required to be set aside for the
Depreciation Fund ( established and defined hereinafter ) , and leave
a balance equal to at least 125 % of the aggregate average annual
principal and interest requirements on all outstanding bonds to
the payment of which Airport revenues are pledged . The City further
covenants and agrees that the rates and charges shall when necessary ,
from time to time , be increased in an amount which will produce
revenues at least sufficient to provide for the operation and
maintenance of the Airport and leave a balance equal to at least
the amount necessary for paying principal of and interest when due
on ' all outstanding bonds to the payment of which Airport revenues
are pledged and maintain all funds in connection therewith at
the required levels .
Section 8 . The City covenants that the Airport shall be
continuously operated as a revenue producing undertaking , and all
moneys received from its operation shall be deposited in such
depository or depositories for the City as may be lawfully designated
from time to time by the Board of Directors , subject , however , to
the giving of security as now or as hereafter may be required by
law and provided that such depositories shall hold membership in
the Federal Deposit Insurance Corporation .
Section 9 , Airport Fund . All revenues derived from the
operation of the Airport , including the improvements after their
completion , shall be paid into a special fund , which is hereby
created and designated " Airport Fund " . The revenues in the Airport
Fund are hereby pledged and shall be applied to the payment of the
988 290
principal of and interest on the bonds of this issue , to the payment
of the reasonable and necessary expenses of operation and maintenance
of the Airport , to the providing of the Depreciation Fund , and
otherwise as in this Ordinance expressly authorized .
Section 10 , Airport Revenue Bond Fund . ( a ) There shall
be paid from the Airport Fund into a special fund which is hereby
created and designated "Airport Revenue Bond Fund " ( the " Bond
Fund " ) the sums in the amounts and at the times hereinafter stated
in ' subsection (b ) for the purpose of providing funds for the payment
of the principal of and interest on the bonds and the Paying
Agent ' s fees , as they mature according to the following schedule
and as a debt service reserve :
Year Bond Interest
(N6v . 1 ) Nos . Principal May 1 November 1 .. Total
1982 1 - 5 $ 25 , 000 $ 20 , 963 $ 20 , 963 $ 66 , 926
1983 6 - 10 25 , 000 20 , 088 20 , 088 65, 176
1984 11 - 16 30 , 000 19 , 213 19 , 213. 68 , 426
1985 17 - 22 30 , 000 18 , 163 18 , 163 66 , 326
1986 23 - 29 35 , 000 17 , 113 17 , 113 69 , 226
1987 30 - 36 35 , 000 15 , 888 15 , 888 66 , 776
1988 37 - 43 35 , 000 14 , 663 14 , 663 64 , 326
1989 44 - 51 40 , 000 13 , 508 13 , 508 67 , 016
1990 52 - 59 40 , 000 12 , 168 12 , 168 64 , 336
1991 60 - 68 45 , 000 10 , 808 10 , 808 66 , 616
1992 69 - 77 45 , 000 9 , 255 91255 63 , 510
1993 78 - 87 50 , 000 7 , 680 7 , 680 65 , 360
1994 88 - 97 50 , 000 51930 5 , 930 61 , 860
1995 98 - 108 55 , 000 4 , 155 4 ;. 155 63 , 310
1996 109 - 120 60 , 000 21175 21175 64 , 350
(b ) There shall be paid into the Bond Fund on the first
business day of each month until all outstanding bonds of this issue
with interest thereon have been paid in full or provision made for
such payment , a sum equal to one- fifth ( 1/ 5 ) of the next installment
of interest and one- tenth ( 1/ 10 ) of the next installment of prinicpal
(plus any additional amount that may be necessary together with
accrued interest received at the time of the delivery of the bonds
fully to provide for the first interest payment on the bonds , if
any additional amount be required ) , and an amount sufficient to
provide for the Paying Agent ' s fees , on all outstanding bonds ,
until a debt service reserve shall have been accumulated in the
amount of $ 69 , 500 . .. 1 When the debt service reserve has been
accumulated in the required amount , the monthly payments into the
988 291