HomeMy WebLinkAboutOrdinance 2880 %c
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ORDINANCE NO .
AN ORDINANCE AUTHORIZING IMPROVEMENTS TO THE
FAYETTEVILLE MUNICIPAL AIRPORT , DRAKE FIELD ;
AUTHORIZING THE ISSUANCE OF AIRPORT REVENUE
BONDS ; PROVIDING FOR THE SECURITY AND PAYMENT
OF THE BONDS ; PRESCRIBING OTHER MATTERS
PERTAINING THERETO ; 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 portable one - airplane
hangars ( hereafter referred to as " T - Hangars " ) should be acquired
by the City and held for rent to Airport users ; and
WHEREAS , the City has outstanding $ 575 , 000 in principal
amount of Municipal Airport Revenue Bonds , Series 1979 , dated May
1 , 1979 ( the " 1979 Bonds " ) , as authorized by Ordinance No . 2524 of
the City , adopted and approved April 17 , 1979 , as amended by Ordi -
nance No . 2533 , adopted and approved May 29 , 1979 ( collectively
the " 1979 Ordinance " ) ; and
WHEREAS , the total estimated cost of two ( 2 ) T -Hangars .
( the " improvements " ) is approximately $ 42 , 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 $ 42 , 000 ; and
WHEREAS , the City has entered into a contract for the
sale of its Municipal Airport Revenue Bonds in the aggregate
principal amount of $ 42 , 000 to First National Bank , McIlroy Bank
and Northwest National Bank , all of Fayetteville , Arkansas ( the
" purchasers " ) at a purchase price of 100 cents on the dollar plus
accrued interest from the date of the Bonds to the date of delivery
to the purchasers ;
NOW , THEREFORE , BE IT ORDAINED by the Board of Directors
of the City of Fayetteville , Arkansas :
Section 1 . The acquisition of the improvements is
hereby authorized .
= N71 520
Section 2 . The sale of the bonds to the purchasers 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 , dated
January 1 , 1983 , in the aggregate principal amount of $ 42 , 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 issued as fully registered Bonds ,
registered as to principal and interest . The Bonds shall be
executed on behalf of the City by the Mayor and City Clerk ( one
signature may be facsimile , but one must be manual ) and shall have
impressed thereon the seal of the City . Payment of the Bonds shall
be made at the principal office of First National Bank ,
Fayetteville , Arkansas ( the " Trustee " and " Paying Agent " ) .
r 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 , as specified in detail hereinafter in this Ordinance .
The lien , pledge and security of the Bonds are subordinate to the
lien , pledge and security of the 1979 Bonds . 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 , "
created and to be maintained pursuant to the provisions of this
Ordinance , to pay the principal of , interest on and Trustee ' s and
Paying Agent ' s fees in connection with the Bonds as due and
payable .
Section S . The Bonds will be dated January 1 , 1983 , and
interest on the Bonds will be payable semiannually on January 1
and July 1 of each year , commencing July 1 , 1983 . The Bonds shall
bear interest at the rate of 10% per annum . The Bonds will be
numbered , and will be in the denominations as follows : Bond No . R-
1 - $ 16 , 800 ; Bond No . R- 2 - $ 16 , 800 ; and Bond No . R- 3 - $ 8 , 400 . The
Bands shall mature in installments on January 1 of each year as set
forth in Section 9 hereof .
Section 6 . The Bonds 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 ) :
2 = 1 ; 71 521
( Form of fully registered bond )
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
MUNICIPAL AIRPORT REVENUE BOND
No . R- $
KNOW ALL MEN BY THESE PRESENTS :
That the City of Fayetteville , Washington County ,
Arkansas , a municipality under the laws of the State of Arkansas
( the " City " ) , for value received , promises to pay to the
registered owner hereof the principal sum of
DOLLARS
in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and
private debts , and to pay in like coin or currency interest on the
unpaid balance of said principal amount from the date hereof until
paid at the rate specified below , such interest to be payable on
January 1 and July 1 of each year commencing July 1 , 1983 .
Principal shall be payable in installments as follows :
Date
( January 1 ) Amount
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
Principal shall be payable at the principal office of First
National Bank , Fayetteville , Arkansas ( the " Trustee " and " Paying
Agent " ) . Payment of interest shall be by check or draft to the
registered owner as shown on the bond registration books of the
City maintained by the Trustee .
The Bonds shall bear interest at the rate of 10% per
annum .
3 �x',71 522
This Bond , designated " City of Fayetteville , Arkansas
Municipal Airport Revenue Bond , " is one of an issue of Bonds in the
principal amount of Fortv- two Thousand Dollars ( $ 42 , 000 ) , dated
January 1 , 1983 , and numbered R- 1 , R- 2 and R- 3 , all of like tenor
and effect except as to number , denomination , maturity and right
of prior redemption , issued for the purpose of financing - the cost
of improvements to the Fayetteville Municipal Airport , Drake
Field ( the " Airport " ) .
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 •
lien , pledge and security of the Bonds are subordinate to the
lien , pledge and security of the Municipal Airport Revenue Bonds ,
Series 1979 , dated May 1 , 1979 . The Bonds are authorized by and
issued under Ordinance No . a g&) of the Ordinances of the City ,
duly adopted and approved on the 7tk day of 1982 ( 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 issu -
ance of parity bonds , of the nature and extent of the security , and
of the rights and obligations of the City , the Trustee and the
holders and registered owners of the Bonds . An amount of the
revenues of the Airport sufficient to provide for the payment of
the principal of , interest on and Trustee ' s 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 expensees of
operation and maintenance of the Airport , to provide for the
payment of the principal of , interest on and Trustee ' s and Paying
Agent ' s fees in connection with all outstanding 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 , at a price of
the principal amount of the Bonds being redeemed plus accrued
interest to the date of redemption .
4 �1 x',71 523
The Trustee , at the expense of the City , shall mail
notice of the call for redemption by first class mail placed in the
mails not less than fifteen ( 15 ) days prior to the date fixed for
redemption to the registered owner of any Bond called for
redemption , in whole or in part , addressed to such registered
owner ' s registered address . Each notice shall specify the Bond
numbers , the maturity dates and amounts of principal installments
being called , and the date on which the Bonds shall be presented
for payment . After the date specified in such call , the principal
amounts so called will cease to bear interest provided funds for
their payment have been deposited with the Trustee . The
registered owner of each Bond so called shall surrender his Bond -
to the Trustee for payment of the principal amount being redeemed .
and endorsement of such redemption payment hereon and notation on
the registration books or for cancellation if redeemed in full .
The holder of this Bond shall have no right to enforce
the provisions of the Indenture or to institute action to enforce
the covenants therein , or to take any action with respect to any
event of default under the Authorizing Ordinance , or to institute ,
appear in and defend any suit or other proceeding with respect
thereto , except as provided in the Authorizing Ordinance . In
certain events , on the conditions , in the manner and with the
effect set forth in the Authorizing Ordinance , the principal of
all the Bonds issued under the Authorizing Ordinance and then
outstanding may be declared and may become due and payable before
the stated maturity thereof , together with accrued interest
thereon .
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 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 Revenue Bond Fund for the
payment of the principal of , interest , and Trustee ' s and Paying
Agent ' s fees on the Bonds .
IN WITNESS WHEREOF , the City of Fayetteville , Arkansas ,
has caused this Bond to be executed by its Mayor and City Clerk ,
thereunto duly authorized ( one signature may be facsimile but one
must be manual ) , and its corporate seal to be affixed , all as of
the first day of January , 1983 .
5 mm2l71 524
CITY AYE mE ' r L ARKANSAS
By �C/ !/ F.F / j
'Mayor
ATTEST :
City Clerk
( SEAL )
-fIIYc" fl , .
._r
r .
6 ® �X71 525
TRUSTEE ' S CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds issued under the
provisions of the within mentioned Ordinance .
FIRST NATIONAL BANK
Fayetteville , Arkansas
TRUSTEE
By
Authorized Signature -
1f'$ 71 526
PROVISIONS FOR REGISTRATION AND TRANSFER
This Bond may 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 . The principal of and interest on
this Bond shall be payable only to or upon the order of the
registered owner or his legal representative .
Signature of
Date of Registration : Name of Registered Owner Bond Registrar
i
52-7
Section 7 . That the City hereby covenants with the
holders and registered owners of the Bonds that there will be
imposed and collected such charges for the use of the Airport and
its facilities as will at all times produce sufficient revenues to
provide for the operation , maintenance and repair of the Airport ,
to provide for the payment of the principal of and interest on all
outstanding bonds to which Airport revenues are pledged ,
including the 1979 Bonds and the Bonds , as the same become due , to
provide for Trustee ' s and Paying Agent ' s fees , make required
deposits into the Depreciation Fund and to maintain all funds
provided for in ordinances and resolutions authorizing and
securing all such Bonds at required levels . The above covenants _
shall include the agreement and obligation to increase the charges
from time to time as and to the extent necessary to produce
sufficient revenues to meet the above requirements .
Section 8 . That the provisions , covenants ,
undertakings , and stipulations of the City set forth in the 1979
Ordinance , pursuant to which the 1979 Bonds were issued and
secured and are presently outstanding , as such Ordinance may , at
any time , be amended , shall inure and appertain to the Bonds of
this issue to the same extent and with like force and effect as if
set forth herein in full , except only insofar as the same may be
expressly inconsistent with the provisions of this Ordinance ,
including among other things , and without limitation , the
provisions of the 1979 Ordinance whereby there has been created
and is being maintained ( 1 ) an " Airport Fund " and for the payment
into that fund of all the income and revenue derived from the
operation of the Airport , disbursements therefrom and the per -
mitted use of surplus at any time remaining therein , ( 2 ) an
" Airport Operation and Maintenance Fund " and for the payment into
that fund of the required amounts and permitted disbursements
therefrom , and ( 3 ) an " Airport Depreciation Fund " and for the
payment into that fund of the required amounts and disbursements
therefrom , all as specified in the applicable sections of the 1979
Ordinance , are hereby continued , ratified and confirmed .
Section 9 . Airport Revenue Bond Fund . ( a ) There
shall be paid from the Airport Fund ( created by the 1979
Ordinance ) into a special fund which is hereby created and
designated " 1983 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 Trustee ' s and
Paying Agent ' s fees . The Bonds shall mature in principal
installments as follows :
9
X71 528
Date of Amount of Installment
Installment Bond Number
( January 1 ) R- 1 R- 2 R- 3 Total
1984 $ 1 , 200 $ 1 , 200 $ 600 $ 3 , 000
1985 1 , 200 11200 600 31000
1986 1 , 200 11200 600 31000
1987 11400 11400 700 31500
1988 1 , 600 1 , 600 800 4 , 000
1989 11600 1 , 600 800 41000
1990 11800 11800 900 41500
1991 2 , 000 2 , 000 1 , 000 50000 -
1992 2 , 200 2 , 200 11100 51500 ,
1993 2 , 600 2 , 600 1 , 300 6 , 500
( 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 interst thereon have been paid in full or provision
made for such payment , a sum equal to one - sixth ( 1/6 ) of the next
installment of interest and one - twelfth ( 1/ 12 ) of the next
installment of principal ( 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 Trustee ' s and Paying
Agent ' s fees , on all outstanding Bonds .
( c ) If the revenues of the Airport are insufficient to _
make the required payment on the first business day of the
following month into the Bond Fund , then the amount of any such
deficiency in the payment made shall be added to the amount
otherwise required to be paid into the Bond Fund on the first
business day of the next month .
( d ) When the moneys held in the Bond Fund shall be and
remain sufficient to pay the principal of and interest on all
Bonds then outstanding and the Trustee ' s and Paying Agent ' s fees ,
there shall be no obligation to make any further payments into the
Bond Fund .
( e ) All moneys in the Bond Fund shall be used solely for
the purpose of paying the principal of and interest on the Bonds
and the Trustee ' s and Paying Agent ' s fees , except as herein
specifically provided . If a surplus shall exist in the Bond Fund
over and above the amount required for making all principal and
interest payments when due and paying the Trustee ' s and Paying
Agent ' s fees , such surplus may be applied only to the payment of
the principal of and interest on any Bonds that may be called for
redemption prior to maturity or for the construction or equipment
of improvements to the Airport .
10
= 1x;71 529
( £ ) There shall be withdrawn from the Bond Fund at
least ten ( 10 ) days before the due date of any Bond , at maturity or
redemption prior to maturity , and deposited with the Paying Agent ,
an amount equal to the amount of sudh Bond for the sole purpose of
paying the same , together with the Paying Agent ' s fee , and no
withdrawal of funds from the Bond Fund shall be made for any other
purpose except as otherwise authorized in this Ordinance .
( g ) The Bonds of this issue shall be specifically
secured by a pledge of all the revenues required to be placed into
the Bond Fund . The pledge in favor of the Bonds is hereby
irrevocably made according to the terms of this Ordinance , and the -
City and its officers and employees shall execute , perform and
carry out the terms thereof in strict conformity with the
provisions of this Ordinance .
Section 10 . The City hereby agrees that all payments on
the Bonds and interest shall be made only as provided herein . All
Bonds paid or purchased either at or before maturity shall be can -
celled when such payment or purchase is made .
Section 11 . As long as any of the Bonds authorized and
issued under and pursuant to the provisions of this Ordinance are
outstanding , the City shall not issue or attempt to issue any
Bonds claimed to be entitled to a priority of lien on the revenues
of the Airport over the lien securing the Bonds of this issue ,
including the herein authorized and any and all future
improvements .
Nothing in this Ordinance shall be construed to prevent
the issuance by the City of additional bonds to finance or pay the
cost of constructing any future improvements to the Airport ;
provided , however , the City shall not authorize or issue any such
additional bonds payable from the revenues derived from the
operation of the Airport and ranking on a parity of security with
these Bonds , except that :
( a ) Additional parity bonds in the principal amount of
not to exceed $ 250 , 000 in aggregate principal amount may be
issued , at one time or from time to time , on or before December 31 ,
1986 , for the purpose of financing additional T-Hangars .
( b ) Additional parity bonds may be issued from time to
time if there shall have been procured and filed with the City
Clerk and the Trustee a statement by an independent certified
public accountant not in the regular employ of the City reciting
the opinion based upon necessary investigation that the amount of
the net annual revenues of the Airport for the last completed
fiscal year , plus the amount of any increase in the net annual
revenues estimated to be derived , during the next succeeding
11
X71 5^0
I
fiscal year , from the proposed improvements and any increase in
the net annual revenues estimated to be derived , during the next
succeeding fiscal year , from any increase in the rates and charges
to be charged for the services and facilities of the Airport will
be equal to at least 150% of theaverage annual debt service
( principal , interest and Trustee ' s and Paying Agent ' s fees ) for
all the bonds payable from Airport revenues then outstanding , and
j the bonds then proposed to be issued . " Net annual revenues " are
defined as gross revenues less operating expenses , as determined
in accordance with recognized accounting practices .
I
In making the statement provided for by this Section
the certified public accountant may rely upon the written opinion .
of an independent qualified consulting engineer , not in the
regular employ of the City , as to the net annual revenues of the
Airport from the proposed improvements , and from any adjustment in
the rates and charges to be charged for the services and
facilities of the Airport for the next ensuing fiscal year .
The City reserves the right to issue bonds or other
obligations the security and source of payment of which is
subordinate to the pledge of revenues to these Bonds , without
regard to the restrictions set forth in this Section .
Section 12 . The Bonds shall be subject to redemption
prior to maturity in accordance with the terms set out in the Bond
form .
Section 13 . The City covenants that so long as any
Bonds authorized hereby are outstanding , it will not mortgage ,
pledge or otherwise encumber the Airport , or any part thereof , or
any revenues derived from the operation thereof , except as herein
specifically provided , and will not sell or otherwise dispose of
any substantial portion of the same .
Section 14 . The City covenants that it will not take
any action or suffer or permit any action to be taken or condition
to exist which causes or may cause the interest payable on the
Bonds to be subject to federal income taxation . Without limiting
the generality of the foregoing , the City covenants that the
proceeds of the sale of the Bonds will not be used directly or
indirectly in such manner as to cause the Bonds to be treated as
" arbitrage bonds " within the meaning of Section 103 ( c ) of the
Internal Revenue Code .
Section 15 . When the Bonds have been executed and the
seal of the City impressed thereon , they shall be delivered to the
Trustee and the Trustee shall authenticate them and deliver them
to the purchasers upon payment in cash of the purchase price of
$ 42 , 000 , plus accrued interest from the date of the Bonds to the
12
X1971 531
date of delivery ("total sale proceeds"). The Trustee shall
handle the total sale proceeds as follows:
(1) Deposit the accrued interest in the Bond Fund.
(2) Pay the expenses incidental to sale and issuance of
the Bonds as instructed by a Letter of Delivery Instructions
signed by the Mayor.
(3) The balance of the total sale proceeds shall be
deposited in a special account in the name of the City designated
"Airport Construction Fund" ("Construction Fund") which shall be -
established and maintained in a bank that is a member of the
Federal Deposit Insurance Corporation. The moneys in the
Construction Fund shall be disbursed solely in payment of the
costs of accomplishing the improvements, paying necessary ex-
penses incidental thereto and paying expenses of issuing the Bonds
not paid by the purchasers. Disbursements shall be on the basis of
checks or requisitions which shall contain at least the following
information: the person to whom payment is being made; the amount
of the payment; and the purpose by general classification of the
payment. Each check or requisition must be signed by the
individual occupying the top managerial position of the Airport.
In the case of requisitions, the depository shall issue its check
upon the Construction Fund payable to the person, firm or cor-
poration designated in the requisition. The depository of the
Construction Fund shall be required to keep records as to all
payments made on the basis of checks.
When the improvements have been completed and all
required expenses paid and expenditures made from the
Construction Fund for and in connection with the accomplishment of
the improvements and the financing thereof, this fact shall be
evidenced by a certificate signed by the person occupying the top
managerial position of the Airport, which certificate shall
state, among other things, the date of the completion and that all
obligations payable from the Construction Fund have been
discharged. A copy of the certificate shall be filed with the
Trustee, and upon receipt thereof the Trustee shall transfer any
remaining balance in the Construction Fund to the Bond Fund.
Section 16. The Trustee shall only be responsible for
the exercise of good faith and reasonable prudence in the execu-
tion of its trusts. The recitals in this Ordinance and in the face
of the Bonds are the recitals of the City and not of the Trustee.
The Trustee shall not be required to take any action as Trustee
unless it shall have been requested to do so in writing by the
holders of not less than 10% in principal amount of the Bonds then
outstanding and shall have been offered reasonable security and
indemnity against the costs, expenses and liabilities to be
Lw
z1fl71 532
incurred therein or thereby. The Trustee may resign at any time by
ten (10) days' notice in writing to the City Clerk and the majority
in principal amount of the holders of the outstanding Bonds may
appoint a new Trustee, such appointment to be evidenced by a
written instrument or instruments filed with the City Clerk. If
the majority in principal amount of the outstanding Bonds of this
issue fail to fill a vacancy within thirty (30) days after the same
shall occur, then the City shall forthwith designate a new Trustee
by a written instrument filed in the office of the City Clerk. The
original Trustee and any successor Trustee shall file a written
acceptance and agreement to execute the trust imposed upon it or
them by this Ordinance, but only upon the terms and conditions set -
forth in this Ordinance and subject to the provisions of this
Ordinance, to all of which the respective holders of the Bonds
agree. Such written acceptance shall be filed with the City Clerk
and a copy thereof shall be placed in the Bond transcript. Any
successor Trustee shall have all the powers herein granted to the
original Trustee. In the event of a change in the office of the
Trustee, the old Trustee which has resigned or been removed shall
cease to be Paying Agent.
Section 17. The provisions of this Ordinance are
hereby declared to be severable and if any provision shall for any
reason be held illegal or invalid, such holding shall not affect
the validity of the remainder of the Ordinance.
Section 18. It is hereby ascertained and declared that
the improvements must be accomplished as soon as possible in order
to make the Airport adequate for the needs of the City and its
inhabitants, without which the life, health, safety and welfare
thereof are jeopardized, and the issuance of the Bonds and the
taking of the other action authorized by this Ordinance are
necessary for the accomplishment thereof. It is, therefore,
declared that an emergency exists and this Ordinance being
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: 1260874619C7 , 1982.
ATTEST: AP ROVED:
>Y F�jCity Clerk Mayor
C 4t't
!.ISEAt) '
U J
• yC.
C'
14
••4.n
... ? X71 533
CERTIFICATE
STATE OF ARKANSAS
)ss.
COUNTY OF WASHINGTON)
The undersigned, City Clerk of the City of
Fayetteville, Arkansas, hereby certifies that the foregoing pages
are a true and compared copy of an Ordinance passed at a ,e
session of the Board of Directors held at the regular meeting
place of the Board in the City at 73O p.m. on the Z day of --
December, 1982, and that the Ordinance is of record in Ordinance
Record Book No. _, page _, now in my possession.
GIVEN under my hand and seal this 9i`j day of December,
1982.
City Clerk
(SEAL)
CIFJ 11rfCATE OF RECORD
CERTIFICATE OF RECORD
State of Arkansas (
City of Fayetteville ( SS
I, Suzanne C. Kennedy, City Clerk and
E"Officio recorder for the City of Fayettevilt0,
do hereby certify that the annexed or fore.
is of record in my office and the stn e np.
nears in Ordinance & Resolution book
page aa.7l=viGfe^s mi•
hand
.-,4., of
l9_$3
tty Clerk and -ci (o teiozd
STATE OF ARKANSAS
Washington County ) SS.
I, Alma L. Koar.,; 3-, Circuit Clark and Ex -Officio Recorder for
Washington County. do hereby certify that the annexed or fore-
going instrument stwas filed # tO ifor recn•in my office on the hay
ofGLrLC1 l ca'clockq.M, and thf same is
duly recorded in /Ds. ee ,_recordZO %L at page 0
Witness my hand and seal this/S day of 19.
rcud Clerk and
E .Officio Recorded O
Deputy Clerk
5 q71 534
Legal Notices Legal Notices Legal Notices
ORDlNANC NO. 2S80 Arkansas fine "Trustee" and By —_
A N O R D I N A N C E "Paying Agent"). Payment of Aumor Iltl3lpnelure
\UTHORIZING IMPROVE- interest shell be by check or PROVISIONS FOR REGIS'
VENTS TO THE FAYET- draft to the registeredowner as TRATION AND TRANSFER
f E V I L L E MUNICIPAL shown on the bond registration This Bond may be trans
',I RPORT, DRAKE FIELD; books of the City mainlalneo by ferred only upon an assignment
\UTHO R I Z I NG THE the Trustee.
The Bonds Shall bear interest
SSUANCE OF AIRPORT duly axe, used by the registered
' at thereto of 1O% per annum. owner or his attorney or legal
EVENUE BONDS; PRO DING FOR O DS; PITY Thi% Bond, designated "City representative in such form as
/(
/i D PAYMENT OF THE of Fayetteville, Arkansas Shall be satisfactory to the
\NND5; PRESCRIBING Municipal Airport Revenue Bond Registrar, such transfer
IOHER MATTERS PER Bond," is one of an issue Of to be made on such books and
Bonds In the pprincipal amount endorsed hereon by the Bond
rAINING THERETO: AND of Forty-two T housand Dollars Reglstra'. The principal of and
J E C L A R I N G A N ($42,000), dated January 1. Interest on this Bond shall be
MERGENCY. 1983, and numbered R-1, R-2 payable only to or upon the
WHEREAS, the Fayetteville and R-3. all of like tenor and order of the registered owner
Aunicipal Airport, Drake Field effect except as. to number, or his legal representailve.
Ihe "Airport') Is operated on Cemonlnation, maturity and
'ehalf of and for the mutual right or prior redemption,
Issued for the purpose of fh Data of Registration:
•chests of Ihe City of Feyet
nancing the cost of improve.
ents
'vile, Arkansas (the "City") rn
and the citizens and inhabi- manta to the Fayetteville
Municipal Airport, Drake Field - Name ow f Regis ed Owner
ants thereof, by the City.
• (the Airport").
ursuant to Act No. 175 of the
The Bonds are issued
'cis of Arkansas of 1959, as pursuant to and in full comply Signature of Done Registrar
,mended; and once with the Constitution and
WHEREAS, upon necessary laws of the State of Arkansas,
nvestlgation it has been found including particularly Act No. Section 7. .That the City
+y the Board of Directors of the 175 of'the Act% of Arkansas of hereby covenant$ with the
:Icy that portable one -airplane 1959. at- amended,- and holders and registered owners
(angers (hereafter referred to pursuant to an ordinance of the
H "T Hangars") should be Board at -Directors of Inc City, of the Bonds that there will be
:cquired the City and held, duly- adopted and 'approved, imposed and collected such
or tine to by the l and and do not constitute an lndebl- charges toe the use of the
WHEREAS, Air the users;ty has out ednecs of the City within any Airport and ifs/acililles as will
landing AS, the
In principal constitutional or statutory limn at all times produce sufficient
'mount S Municipal Airport cation. The Bonds are not gem revenues to provide for the
eral obligations of the City but operation,. maintenance and
t avenue Bonds, Series 1979. are spec al obligations secured'.repalrof the Airport. to provide
aced May 1, 1979 (the "1979 by and payable solely from the for the payment of Inc prim
tends'), as authorized by Or' prop revenues derived from cipal of and interest on all.
l inane No. 2524 of the City, the operation of the Airport, outstanding bonds to which
dopted and approved April 17, The lion, pledge and Security 01 Airport are pledged,which
979, as amended by Ordinance the Bonds are subordinate to Aportthe revenues aBand
Io. 2533, adopted and approved the lien, pledge and security of including
Aay 29, 1979 (collectively the the Municipal Airport Revenue the Bonds, as the same become
'1979 Ordinance"); and Bonds, Series 1979, delea May due, to provide for Trustee's
WHEREAS, the total 1, 1979. The Bonds are and Paying Agent's fees, make
stimaeed cost of two (2) ;T- luthorlgd by and issued under required deposits Into the De.
rangers (the "Improve Ordinance no. 2b80of the. ;ti predation Fund and to main
nenla') is approximately ordinances of the Cifle'duly.9aln 111 funds provided for in
adopted and approved OMthR lordinancea and resolution$
42,000; and 7th day of December. 1992, (thll authorizing end securing all
WHEREAS, the City can . , A..
obtain sufficient funds to pay A If I, n 0 r I 1 1 n g' "'such Bonds at required levels,
the total ient cost of the Ordinance' ), to which refer The abate covenants shall in
the tovemsestimated the Iawanhe ence may be made for a de- elude tie agreement end Ob'
01 prove Dl)rev-
improvements by in the tailed statement of the terms ligation to Increase the charges
of airport
amount of bonds in$4200 and conditions upon which the from Circe to time as and to the
Bonds are issued, of the re e41ent Pecessary to produce
and strict Ions and cond Ilion% for the sufflclerJ revenues to meet the
WHEREAS, the City has en ' Issuance of parity bonds, of the above requirements.
terud Into a contract for the nature and extent of the setur4
Secti , B. That the pro,
sale of its in
Airport ty, and of the, rights and ob vision,. covenants, -un•
Revenue Bonds in the ag Ilgetlons of the City, the Trust dertakings, and stipulations of
$42,00gregaa principal amount of ee and the holders and regis. the City Set forth in the 1979
$42,000 to First National Bank, threrd owners of the Bonds, An Ordinance, pursuant to which
Mcllroy Bank and Northwest amount Of the revenues of the the 1979 Bonds Were Issued and
National Benk, all of FayeP Airport sufficient to provide for secured and are presently out-
levile Arke nS85 (the Me payment of the principal Of, standing, as Such Ordinance
"purchasers") at a purchase Interest on and Trustee's and may atanytime, be amended,
price of 100 cents on the dollar Paying Agents fees in conned shall Inure and appertain 10 the
plus accrued interest from the flon with the Bonds as the same Bonds of this issue to the same
date of the bonds to the date became due and Payable is to extent and With like force and
delivery to the purchasers; be set aside and paid Into a effect as if set forth herein in
NOW, THEREFORE, BE IT special fund,. designated full, except only insofar as the
ORDAINED by the Board M „Airport Revenue Bond same may be expressly In -
Directors
teirof Arkansas:theCity of Fayet-' Fund," Craned by the Consistent With the provisions
Section 1. The acquisition 0/ Authorizing Ordinance. Toe of this Ordinance, Including
the 1. improvements hereby City nas fixed and has cove- among other things, and
impro nanted 10. maintain rates and without limitation, the proaut-
Shorize 2. The sale of the charges for the Services and visions at the 1979 Ordinance
on . Purchasers upon facilities of the Airport which whereby Ihera has been
the bonds tine setrcabove in shall be sufficient M all times createn end Is Ming main
the :.i aypet forth and Con, to prndnre reVw'raV*! .::fa.l•.f g.a ld,rt i an -'Airport F unu'
firmed, in amount for the proper and. and for the payment Into that
reasonable expenSe. of opera' fund of all the Inc a and
Section 3. To finance the toss ton and maintenance of the revenue derived - from' the
of the Improvements, Including Airport, to provide tot the reparation of the Airport, dis•
costs Incidental thereto and payment of the principal of, '•,r$eMU'ds therefrom and the
Incidental to the financing, Interest on and Trustee's and permitter:UNMsurplus at any
there are hereby authorized Paying Agent's fees in conned time remaining therein, (2) an
and ordered Issued City of lion with all outstanding Bones' "Air rt':Operation and Main
Municipal
, Arkansas, as clue and payable and to tenanncce Fund" and for the
Municipal Airport Revenue provide for the maintenance Of
Bonds, dated January 1, 1903. required reserves, and to make req u I r hen that fund of the
in
ent aggregate
$42,00rin0 (the tree required deposits for de• permlttad disbursements
"Bonds"). preclation of theAlr,ert ;herefrom, and 131 an 'Airport
Bonds are authorized The Bonds we subject to Depreclailon Fund" and for In
and The Bo under the authority redemption prior to maturity, payment Into that fund of th
of the uer and laws at the option of ins City. In required amounts and dis'
the Stale of Arkansas, inclutl whole or in part, with }here to bursemerts therefrom, all a
ing particularly Act No. 175 of be no partial redempflen of any specified in iM applicable sac
1959, as amended. none, In Inverse numerical dons 01 ran 1979ordlnance, an
The Bonds shall be issued as order, from funds- from any. tler'by Ccnfinucd, ratified an
fully registered Bonds, Iegi s source,' en any (Merest payino cbnflrmec:.
tared pro Principal and inter, date, at a price of the principal Section 9. Airport Revenu
eat, The Bonds shall be amount of the Bond$ being Mgn( rend. (a) There shall b
executed on behalf of the City redeemed plus accrued .Inter paid f•,- the Airport Fun
by the Matter and City Cler.t to tree sate otneemPNon. ([reeled bit the 1979 Ore
(one signature may balaCHmk The Trustee, at the expense fence) l Ito a special fun
le, but one must manual) 0f the City. shall mail notice of which Is hereby crested In
and shall have be man setl the call for redemption by first deslgnate1 "1983 Airport Azov
class mail placed in the malls und" the on
thereon the seal of the .CITY.'not less than fifteen (15) days'' ehve�-pin_r
Payment of the Bonds $hall be tt Fund )' 1lfsal' at the
r t
made at the principal office of prior to the date fixed for Bmoats ■ stated
'at tturn
First National Bank, Fayet ownredemption, to the register
for ed hers) f Stated in alibi
tev!Ile, Arkansas (the "Trusty e7 of any Mond called lion (b) ' for the purges
es" and "Paying Agent'), redemption in whole or in part, providing eu r't for the Pay'
Section 4. The Bonds shall not addressed to such registered moot of the Bonpal Of inc
be general obligations of the owner's registered address. IMBSet ou the Bonds and en
City and shall not constitute an Each notice shall specify thetrustee's and Paying Agent'
Indebtedness of the City within Bond numbers, the feethmaturity fridge Flood, shall mature I
the meaning of any conatltu• date% and amounts of principal principal installments 'a
clonal or statutory limitation, Installments being called, end follows;
but shah be special obligations. the tl on winch the Bonds Date of
Secured by a Pledge of and shall be presented for pay installment
payable solely from gross rev. Mont. After the date specified (January 1)
enues derived from the opera- in such cell, the princlpal 1914
'Ion of the Airport, as specif l led amounts so called will Cease to 1915
bear Interest Provided funds
in detail hereinafter in this
for their payment have been 1967
Ordinance. The lien, pledge deposited with the Trustee, The 1987
and security of the Bonds are registered owner of each Bond 1988
subordinate to the lien, pledge 1989
and security of the 1979 bonds. Bond
hod shall trustee
for y 19"
A Sufficient amount of the rev-
enues derived from the opera- anent of the principal amount 1992
lion of the Airport shill be set being redeemed and en- 1993
aside and deposited in the Porsement of such redemption Amount of Iry!ailment
''Airport Revenue Bond payment heraen and' na/allots __.._,._..,.,
Inn. ir �....., -. . ..._ _.
•ointelnetl pursuant to the cancellation if reseemeC IA
full. 12 1, R-3 Total
ovisions of this Ordinance, to The holder of this Bond shall $I.00 $1,200 8 600 $3,000
wthe pstee's andof. interestonhave no right to enforce the 1'200 1.200 600 3,000
id Trustee's and Paying ',200 1.200 60 3,000
gent's fees in connection with provisions of the indenture or
to institute action to enforce the 1,400 1,600 700 3,500
Seonds 5. due Bondsnd will convenants therein, or to take 1.600 1.600 900 4.000
Sectlo Ia u The Bonds , l be any action with respect to any 1,600 1,600 800 4,5V0
fled January 1, 1983. and event of default under th1,000 1,000 900 4,500
detest on the Bonds will be Authorizing Ordinance, or to 1,000 1,000 1.000 5,
t gable semiannually on institute, appear in and defend 2,200 7,200 1,100 $.SIX
musty 1 and July 1 of each
2.600 2,600 (,3W 4,SC
'ar, commencing July 1. 1983any suit or other proceeding
'ie bonds shell bear interest at with respect thereto, except as 1
'e rate of 10% par annum. The provided in the Authorizing (b) There (hell be tied Ins
the Bond Fund on the fir
onds will be numbered, and Ordinance. In certain events,
ill be in the denomination as on the conditions, in the business day of each Mont
flows: Bond No. R 1 . manner and with the affect set until all outstanding bonds
16,800; Bond No, R 2 _ forth in the Authorizing oral' this Issue with Interest there
6,800; and Bond No, R 3 — nonce, the principal of all the have been paid in full or or
,400. The Bonds Mall mature Bonds Issued under the vision made for such paymen
Installments an January lot Authorizing Ordinance and a sum equal to one -sixth (1 /
then outstanding may be de- of the next installment of Into
,ch year as sat forth in Sea' est and one -twelfth (1 /12)
thereof. dlaced and may become due the next in tallment of pre
Sec Section 6. The Bonds shall be and payable eof,te the statetl
(plus
substantially the follow log maturity thereof, Together With amount that may be netesaa
ran (and the Mayor and City accrued Interest thereon. together with soured Inters
'ark are hereby expressly This Bond Shall not be valid received at the time Of t
dhoti antl and directed to until It shall haw been autharo delivery of the bonds fully
eke all recitals contained ticated by the Trustee.
•-oln)provide for the first Inter
: I T 1 S H E R E B D
ayment on the Bonds, ❑ a
legal Notices legal Notices
(101 days before the due date of Each check or requisition roust
any Bond, at maturity or re b 51900 by Ian Individual
demotion prior to maturity, occupying IM top managerial
and deAosited with the Paying p014110n of me Airport. In the
Agent, an amount equal to the caw a requisitions, the deposi•
amount of Such Bond for the terry Mall its"e its check upon
sole purpose of paying the the Cpnsttucllon Fund payable
same, together with the Paying l0 the ears". firm or corpora
Agent's fee, and no withdrawal lion,dn•enaled in the requite
of funds from the Bond Fund rlpn The depository of IM
Mall be made for any other Construction Fund Mall be
purpose except as otherwise required to keep records as to
authorized in thisOrdinanceail payments made on the basis
(d) The Bonds of this issue cwcne.Ys.
shall be specifically Secured by When Inc Improvements
a pledge of all the revenues have been completed and all
required to be placed into the required expenses paid and
Bond Fund. The pledge in favor expendlfures made from the
of the Bonds is hereby it Construction Fund for and in
revocably made according to connection with the AC -
the terms of this Ordinance, cornplisnments of the fin
and the City and ItSGffc*rs end provemenls and the financing
employees shall execute, tMrsol, this fact Mall be fvi
perform and carry out the dinced by a certificate signed
terms thereof in strict conby the person occupying the top
formlty with the provisions of managerial position of the
this Ordinance. Airport. which cMlfKate snail
Section 10. The City hereby stale. among other things, the
agrees that all payment-. on the oate of the completion and that
Bonds and interest Mall be all Obligations payable from
made only as provided herein, the Construction Fundhave
All Bonds paid or purchased been discharged. A Copy of the
either at or before maturity certificate shall he filed with
shall be cancelled when such the Trustee, and upon receipt
payment or purchase is made thereof the Trustee shall front.
Section 11. As long as any of for any remaining balance In
the Bonds authorized and the construction Fund to that
issued under and pursuant to Bond Fund.
the provisions of this Ordi Section 16. The Trustee shall;
trance are outstanding, the City only be responsible for Mail
shall not Issue or attempt to exercise of flood faith and rest
issue any Bond& Claimed to be tunable prudence In the execu•+1
entitled to a priority lien on the tips of its trusts, The recitals Ile
revenues of the Airport over this Ordinance and In the face
the lien securing the Bonds of of the bonds are the recitals of
this Issue, Inci' ding the herein the City and not of the Trustee.
authorized and any and all The Trustee shill hot be re
future Improvements quired to take any action as
Nothing in this Ordinance Trust" unless It shall have
shall be construed to prevent been requested to do SO In
the Issuance by the City of writing by the holders of not
addinonnl bonds to finance or lass than 10% In principal
pay the cost of constructing a m o P n I
any future Improvements to of the Bonds than outstanding-
the Airport; provided, howev' and shall have been offered`
Cr, the City shall not authorize reasonebM security and In•
or tissue any such additional demur against the cOsts,'
:-.,nds payable from the rev. -expenses and liabilities 10 Si
nuts derived from the opera- incurred therein or thereby.,
-lion of the Airport and ranking The Trustee may resign at any,
on a parity of security with time by ten (10) days' notice In
these Bonds, except that: writing to the City Clerk and
(a) Additional parity bonds the majority in principal
in the principal amount of not amount of the holders of the
to exceed $250,000 in aggregate outstanding Bonds may cep-
principal amount may be point a now trustee, such ap'
issued, at one time or from polntment to be evidenced by a
time to time, on or before written instrument or Inotru-'.
December 31, 1986, for the metee filed with the City Clerk.
purpose of financing additional if the majority in principal
T -Hangers. amount of the outstanding
Ib) ACditionii parity bon' Bonds of this issue fall to fill a
may be Issued Irom time to vacancy within thirty (30) days
after the same shall occur, then
time If there shalt have been
procured and flied with the City the CITY !hall forthwith by eeslu�
Clark and the trustee a state. hate a new Trustee in
the a written
meht by an . Independent the Ct leek In office al
l
Certified public accountant not Ind City and drk. The succeoriginssor
In the regular employ of the Trustee any aitw itten
City reciting the opinion based Trustee shall file a written
upon necessary Investigatico acceptance trust aud agreement to
that IM amount of the tie! execute n, imposed ,
annual revenues of me Airport but
then, obthe terms and
for the last Completed fiscal conditions
ot only upon in terms and
year• plus the amount of any conOn a ands.forth ct this Or
plMnco this Ord to the
increasetieses intheto annual red, all of ofthe respective
Ordinance,
o
durin e%tlee to su tle eding ae Of which d..
during the next succeeding Such
Of the Bptan ag fiscaall
improvements
vem, from the any
In- be py with of City Clerk and
-real. sestimatedannual rplaced to derived, in the Bond l" ll Any
during the Mkt succeedingasllsuccessor Trustee in g hay&
in the year, and any increase all the rovrenl herein granted
in the fo and Charges to nd toe' the 04 0 original ge Inh. In ice
charged for the services l and at tryl u t". the In the office
faCilltle& of the A.! port will be W ins Trust", old Trusee
equal to at least 150% of the whir" No resigned or been
avenge annual debt service "moved Mall Cerete to be
iprincipal, Intere3• and Trust Paying Agent.
se's and Paying Agent's fees) 'y_•^•" ----_
for all the bonds payable from Section 17. The provisions
Airport 'revenues then out. this Ordinance are hereby I,
standing, and the bonds then Glared to he severable and
proposed to be issued. "Net any provision shall for at,
annual revenues" are defined reea1n be held illegal or Inve
as Oros& revenues less operat Id, such holding shall not after
ing ^Rpeneea, as determined In the validity of the remainder
aCcofOam& with recognized the Ordinance.
accounting practices. Section 18. It Is beret
In. making the statement ascertained and declared th,
provided for by this Section, the improvements must t
me-Yarniled'QUbIFrvtoumenF-. KeempNland as soon
mayt&Y upon the written dpi- possible in order to make h
nlon of an Indepenoent avail Airport adequate for the nee,
fled tonsolilno engine,.', not in of the City and Its Inhabltanl
the regular employ of the City, wlthout'.whi[n the life, heels
as to the net annual rev<nUes of safety and welfare thereof a;
the Airport from the t. oposed leopardlzed, and the Issuan,
improvements, and from any of the Bonds and the taking
adjustment in the rates and the other action autherlted t.
char.! to be Charged for the this Ordinance are nece» ar
services and faclllfies of the: for the aCCompllshmer
`port lot the next ensuing thereof. It is, therefore. 0
fiscal year;.. dared that an emergen,
The City reserves the right to exists and this Ordinance bein
Issue bond&or Other Obligations necessary for the Immedia:
the security and source of preservation of the pubs,
payment of which is sub- peace, health and safety sha
ordinate to the pledge of rove take effect and be in forte fro'
flues to these Bonds, without and after Its passage.
regard to the restrictions set PASSED: December 7, 1987
forth in this Section. ATTEST: Olivia S. Kelly
Section 12. The Bonds shah City Clerk
be /ublect 10 redemption prior APPROVED:
to maturity In accordance with Paul R. Noland
the terms set out in the Bond MAYOR
uc ,
Section o the City Bore
aunts that so long ry any Bondsut-
aulMrlted hereby are out-
standing, it will not mortgage.
pledge or otherwise encumber
the Airport, of any part
thereof, or any revenue% Oe
rived from the operation
thereof• except at herein
specifically provided, and will
not sell or otherwise dispose of
any substantial portion of the
Same
Section 14. The City cove-
nants that If will not take any
action or Soifer 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 10
federal Income laaation.
Without limiting the generality
of the foregoing, the City cove-
nants toot The proceeds of the.
sale of the bonds will not be
use* directly or indirectly in
Such manner as 10 cause the
■ands 1a be treated as
"arbitrage bonds" within the
meaning of section 103 (c) Of
the internal Revenue Code.
c.s Ieosy-/i1a �1,
STATE of ARKANSAS . ( ..
f
Qounty of Washington
is :Y�sJQerVc�Ory
I' hereby certify that I
am the publisher of THE NORTHWEST ARKANSAS TIMES, a daily newspaper
having a second class mailing privilege, and being not less than four pages of
five columns each, published at a fixed place of business and at a fixed (daily)
Intervals continuously in the City of Fayetteville, County of Washington, Arkansas
for more than a period of twelve months, circulated and distributed from an
established place of business to subscribers and readers generally of all classes
In the City and County for a definite price for each copy, or a fixed price per
annum, which price was fixed at what is considered the value of the publication,
based upon the news value and service value it contains, that at least fifty percent
of the subscribers thereto have paid cash for their subscriptions to the newspaper
or Its agents or through recognized news dealers over a period of at least six
months; and that the said newspaper publishes an average of more than forty
percent news matter.
I further certify that the legal notice hereto attached in the matter of
was published in the regular daily issue of said newspaper for
consecutive insertions as follows: 3 qn�
The first insertion on the [ / 3.11, day of Ale. 19 Q>
the
second insertion on the
day of
19
the
third insertion on the
day of
_ 19
and the fourth insertion on the day
� N c �J
Sworn to and subscribed before me on this i,5" day of
9 ^
Nola11''� Public
My Commission Expires:
b0t3
Fees for Printing _ S O
Cost of Proof — 1 —
Total ___ ___ /V