HomeMy WebLinkAboutOrdinance 3480 RLED"FOR4R;ECORD
' 90 APR 27 PM 3 90
ORDINANCE NO . 3480 WASHINGTO co aR
e
AN ORDINANCE CALLING A SPECIAL ELECTION FOR tHROkMPOSH
OF SUBMITTING TO THE ELECTORS OF THE CITY OF FAYETTE - �p
VILLE , ARKANSAS , THE QUESTIONS OF ISSUING NOT TO EXCEED
$ 33 , 019 , 000 IN CAPITAL IMPROVEMENT BONDS FOR VARIOUS FQ
CAPITAL IMPROVEMENTS AND PLEDGING ALL OR A PORTION OF
THE PROCEEDS OF THE CITY ' S EXISTING ONE PERCENT ( 1 % )
LOCAL SALES AND USE TAX TO RETIRE SAID CAPITAL IMPROVE-
MENT BONDS ; PROVIDING PROCEDURES FOR THE ELECTION ; AND
DECLARING AN EMERGENCY
WHEREAS , the Board of Directors of the City of Fayetteville ,
Arkansas ( the " City " ) , has determined that it would be in the best
interest of the City to issue bonds to finance , with any other
available funds , the costs of acquiring , constructing , reconstruc-
ting , improving , renovating , expanding and equipping the various
capital improvements described in Section 3 hereof ( the " Improve-
ments " ) ; and
WHEREAS , the Board of Directors of the City has heretofore
levied a one percent ( 1 % ) local sales and use tax pursuant to
Ordinance No . 3381 , adopted on October 4 , 1988 , which tax was
approved by the electors of the City in an election held on
November 8 , 1988 ; and
(J WHEREAS , the City can , pursuant to Amendment 62 to the
Constitution of the State of Arkansas ( "Amendment 6211 ) and Act 871
of the General Assembly of the State of Arkansas for 1985 , as
amended ( " Act 871 " ) , issue capital improvement bonds in principal
amount not to exceed $ 33 , 019 , 000 to finance , with any other avail -
able funds , the costs of acquiring , constructing , reconstructing ,
improving , renovating , expanding and equipping the Improvements
and related costs of issuance and secure the retirement of such
bonds with the proceeds of the City ' s existing one percent ( 1 % )
local sales and use tax ;
NOW , THEREFORE , BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF FAYETTEVILLE , ARKANSAS THAT :
Section 1 . ( a ) The Board of Directors hereby authorizes the
issuance of capital improvement bonds under Amendment 62 , as
implemented by Act 871 , in principal amount not to exceed
$ 33 , 019 , 000 ( the " Bonds " ) , to finance , with any other available
funds , the acquisition , construction , reconstruction , improvement
renovation , expansion and equipment of the Improvements and
related costs of issuance ; provided , however , that the question of
issuance of the Bonds shall be submitted to the electors of the
City at a special election as hereinafter provided .
( b ) If approved by the electors of the City and issued , the
retirement of the Bonds shall be secured by a pledge of all of the
i18ER1364PAGE243
proceeds of the City ' s existing one percent ( 1 % ) local sales and
use tax levied pursuant to Ordinance No . 3381 , adopted on October
41 1988 , which tax was approved by the electors of the City at an
election held on November 8 , 1988 , or such portion of such
proceeds as shall be determined by the City to be adequate to
obtain satisfactory ratings or insurance on the Bonds . In
addition , such proceeds may be pledged to secure the retirement of
not to exceed $ 10 , 000 , 000 of educational facilities bonds of the
City approved by the electors of the City at the election held on
November 8 , 1988 .
( c ) The Mayor and the City Clerk are hereby authorized to
execute a trust indenture which defines the terms and provisions
of the Bonds and the rights of the owners of the Bonds and
provides for the appointment of a trustee for the Bonds .
( d ) The Board of Directors may negotiate and approve , in its
sole discretion , bond insurance or other credit enhancement
devices with respect to the Bonds .
Section 2 . A special election shall be , and the same is
hereby , called to be held in the usual polling places in the City
on May 29 , 1990 , at which election there shall be submitted to the
electors of the City the questions of issuing the Bonds to be
secured as described in Section 1 above for each of the
Improvements and in the respective amounts specified in Section 3
hereof .
Section 3 . The questions shall be placed on the ballot for
the election in substantially the following form :
There is hereby submitted to the qualified electors of
the City of Fayetteville , Arkansas , the issuance of capital
improvement bonds under Amendment No . 62 to the Arkansas
Constitution , as implemented by Act 871 of 1985 , as amended ,
in the principal amount set forth in each question below , for
the purpose of financing , with any other available funds , the
costs of acquiring , constructing , reconstructing , improving ,
renovating , expanding and equipping capital improvements for
the City as described in the respective question below and
related costs of issuance , such improvements including ( i )
streets and bridges , ( ii ) water transmission and distribution
facilities , ( iii ) drainage improvements , ( iv ) solid waste
collection , disposal , compacting and recycling facilities ,
( v ) public parks and playgrounds , ( vi ) police equipment ,
apparatus and facilities , ( vii ) firefighting vehicles ,
equipment , apparatus and facilities , ( viii ) emergency medical
service vehicles , equipment and facilities , ( ix ) the City
Youth Center swimming pool and related facilities , ( x )
parking facilities for the Dickson Street area and ( xi )
maintenance and storage buildings and facilities . The City
has levied a one percent ( 1$ ) local sales and use tax within
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the City pursuant to Ordinance No . 3381 , adopted on October
41 1988 , to be levied and collected to a maximum of $ 25 . 00 on
each single transaction . The retirement of the bonds shall
be secured by a pledge of all of the proceeds of such tax or
such portion of such proceeds as shall be determined by the
City to be adequate to obtain satisfactory ratings or
insurance on the bonds . In addition , such proceeds may be
pledged to secure the retirement of not to exceed $ 10 , 000 , 000
of educational facilities bonds of the City approved by the
electors of the City at an election held on November 8 , 1988 .
In the event that the electors shall approve only a portion
of the bonds proposed to be issued , there shall only be
issued bonds for the purposes approved by the electors . The
bonds that are approved may be combined into one or more
issues of bonds , which may be issued at one time or in series
from time to time .
Vote on each question by placing an " X " in one of the
squares opposite the question , either for or against :
Question One
FOR bond issue in principal amount not to exceed
$ 12 , 326 , 000 for the purpose of constructing ,
reconstructing and improving City streets
and bridges . L/
AGAINST bond issue in principal amount not
to exceed $ 12 , 326 , 000 for the purpose of
constructing , reconstructing and improving
City streets and bridges . L/
Question Two
FOR bond issue in principal amount not to
exceed $ 11 , 615 , 000 for the purpose of
acquiring , constructing and equipping
water transmission and distribution
facilities . L/
AGAINST bond issue in principal amount not
to exceed $ 11 , 615 , 000 for the purpose of
acquiring , constructing and equipping
water transmission and distribution
facilities . L/
LIBERU PAGE245
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Question Three
FOR bond issue in principal amount not to
exceed $ 1 , 773 , 000 for the purpose of
acquiring , constructing and reconstructing
drainage improvements . V
AGAINST bond issue in principal amount not to
exceed $ 1 , 773 , 000 for the purpose of
acquiring , constructing and reconstructing
drainage improvements . U
Question Four
FOR bond issue in principal amount not to
exceed $ 1 , 179 , 000 for the purpose of acquiring ,
constructing and equipping solid waste
collection , disposal , compacting and
recycling facilities . L/
AGAINST bond issue in principal amount not to
exceed $ 1 , 179 , 000 for the purpose of acquiring ,
constructing and equipping solid waste
collection , disposal , compacting and
recycling facilities . L/
Question Five
FOR bond issue in principal amount not to
exceed $ 561 , 000 for the purpose of acquiring ,
constructing and equipping public parks and
playgrounds . V
AGAINST bond issue in principal amount not to
exceed $ 561 , 000 for the purpose of acquiring ,
constructing and equipping public parks and
playgrounds . L/
Question Six
FOR bond issue in principal amount not to
exceed $ 213 , 000 for the purpose of
acquiring , constructing and equipping
police equipment , apparatus and facilities . L/
AGAINST bond issue in principal amount not to
exceed $ 213 , 000 for the purpose of
acquiring , constructing and equipping
police equipment , apparatus and facilities . L/
IIBu 1364PAGE246
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Question Seven
FOR bond issue in principal amount not to
exceed $ 1 , 697 , 000 for the purpose of
acquiring , constructing and equipping
firefighting vehicles , equipment , apparatus
and facilities . L/
AGAINST bond issue in principal amount not to
exceed $ 1 , 697 , 000 for the purpose of
acquiring , constructing and equipping
firefighting vehicles , equipment , apparatus
and facilities . L/
Question Eight
FOR bond issue in principal amount not to
exceed $ 69 , 000 for the purpose of
acquiring , constructing and equipping
emergency medical service vehicles , equipment
and facilities . U
AGAINST bond issue in principal amount not to
exceed $ 69 , 000 for the purpose of
acquiring , constructing and equipping
emergency medical service vehicles , equipment
and facilities . U
Question Nine
FOR bond issue in principal amount not to
exceed $ 998 , 000 for the purpose of expanding
and renovating the City Youth Center swimming
pool and related facilities . U
AGAINST bond issue in principal amount not to
exceed $ 998 , 000 for the purpose of expanding
and renovating the City Youth Center swimming
pool and related facilities . L/
Question Ten
FOR bond issue in principal amount not to
exceed $ 2 , 013 , 000 for the purpose of acquiring ,
constructing and equipping parking facilities
for the Dickson Street area . L/
AGAINST bond issue in principal amount not to
exceed $ 2 , 013 , 000 for the purpose of acquiring ,
constructing and equipping parking facilities
for the Dickson Street area . L/
LIBER 1364-ZPM 247
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Question Eleven
FOR bond issue in principal amount not to
exceed $ 575 , 000 for the purpose of acquiring ,
constructing and equipping City maintenance
and storage facilities and buildings . L/
AGAINST bond issue in principal amount not to
exceed $ 575 , 000 for the purpose of acquiring ,
constructing and equipping City maintenance
and storage facilities and buildings . L/
In order to retire the bonds , the City shall pledge all of
the proceeds its one percent ( 1 % ) local sales and use tax
previously approved by the electors of the City or such portion of
such proceeds as shall be determined by the City to be adequate to
obtain satisfactory ratings or insurance on the Bonds .
Section 4 . The election shall be held and conducted and the
votes cast and the results declared in the manner provided for
municipal elections under the election laws of the State of
Arkansas as then in effect . Only qualified electors of the City
shall have the right to vote at the election . The City Clerk is
hereby authorized and directed to give notice of the election by
one advertisement in a newspaper having a general circulation
within the City , the publication to be not less than ten ( 10 ) days
prior to the date of the election .
Section 5 . A certified copy of this ordinance shall be
furnished to the Washington County Board of Election Commissioners
so that it may place the questions on the ballot for the election ,
provide the necessary election officials and supplies , and canvass
the votes on the questions . A certified copy of this ordinance
shall also be provided to the Director of the Department of
Finance and Administration of the State of Arkansas and to the
Treasurer of the State of Arkansas .
Section 6 . The results of the election shall be proclaimed
by the Mayor . The Mayor ' s proclamation shall be published one ( 1 )
time in a newspaper having general circulation within the City .
The results as proclaimed shall be conclusive unless suit is filed
in the Circuit Court of Washington County within thirty ( 30 ) days
after the date of publication of the proclamation .
Section 7 . The aforesaid pledge of sales and use tax
proceeds shall continue until the bonds secured thereby shall have
been retired in full .
Section 8 . All ordinances and parts thereof in conflict
herewith are hereby repealed to the extent of such conflict .
EIBEB 136 A PAGE24O
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Section 9 . The Board of Directors hereby determines that the
City is in dire need of additional capital funds in order to
provide essential capital improvements ; that an appropriate way to
provide such funds is by the issuance of bonds as authorized by
Amendment No . 62 to the Arkansas Constitution and the implementing
legislation therefor ; and that this ordinance shall be given
immediate effect so that the essential capital improvements may be
acquired , constructed and equipped as soon as possible .
Therefore , an emergency is hereby declared to exist and this
ordinance being necessary for the immediate preservation of the
public health , safety and welfare shall be in full force and
effect from and after its passage and approval .
� JtJIIMHN",,P#1SSED AND APPROVED this aTR day of April , 1990 ,
N � GARY/'u' By ; lf/.leg�,,
• • oeo �,.
May6r
• • T
A TF{S�P
UBER1 �3PAGE-249 ' • a ?4
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CERTIFICATE OF RECORD I, Alma r V..r, ayar. Ci--uft C'sAc and
p��� � ���.. fx-cF;ddo '.uccr^�;' `_-' " *'. rcann Cauntyr
state of 8 AbaMti:, ` : HR]i Kffm%,C,ioryr!c1o0irnae5r'
fFiiett`evill' Cgty erk and Er. S'P :PE l t sa ::r 'YdM .n ta' Off 09
asi 'ad horeon r.�et ::x: .^me `.Jw
for the City of , ^y t
Fayetteville, do hereby certify that the accra 3ook and
annexed or foregoing is of record In m5 and cer:";ran :?,^_w
Fara cs indL.otca m.acson.
office and the Same appear8 In 1: f y. : . : aWr,_K._F i havo F'reunto
Ordinance & Resolution bookk
page a m ° Witness my ayLind sot my hand and affixed the seul of soid
Seal tturs— y of C :art en L':e date indicated hereon.
19 Z� o:'.'neyer
E=Atficto $BCAYdCC. C:cult io re and
Cle[.c G..oi"':io recorder
by
$ 33 , 019 , 000
City of Fayetteville , Arkansas
Sales and Use Tax Capital Improvement Bonds
Series 1990
September 13 , 1990
BOND PURCHASE AGREEMENT
On the basis of the representations , warranties and
agreements and upon the terms and conditions contained herein ,
the undersigned , Llama Company ( the " Underwriter " ) , hereby
offers to purchase the $ 33 , 019 , 000 Sales and Use Tax Capital
Improvement Bonds , Series 1990 ( the " Bonds " ) , to be issued by
the City of Fayetteville , Arkansas ( the " City " ) , a political
subdivision organized and existing under the laws of the State
of Arkansas , under and pursuant to an Ordinance adopted by the
City on September 13 , 1990 ( the "Authorizing Ordinance " ) , and a
Trust Indenture , dated as of October 15 , 1990 ( the " Indenture " ) ,
between the City and Mcllroy Bank & Trust , in Fayetteville ,
Arkansas ( the " Trustee " ) . The Bonds are to be issued by the
City pursuant to and in accordance with the provisions of
Amendment No . 62 to the Constitution of the State of Arkansas ,
as implemented by Act No . 871 of the General Assembly of
Arkansas for the year 1985 , as amended ( the " Act " ) . The Bonds
will constitute special obligations of the City secured by a
pledge of revenues received by the City from a one percent ( 1 % )
local sales and use tax ( the " Tax Receipts " ) in amounts
sufficient to provide for debt service on the Bonds and to
maintain a debt service reserve . The levy of the one percent
( 18 ) local sales and use tax was approved by a majority of the
qualified electors of the City voting on the question at a
special election held November 8 , 1988 . The issuance of the
Bonds and the pledge of the Tax Receipts were approved by a
majority of the qualified electors of the City voting on the
question at a special election held May 29 , 1990 . The Indenture
irrevocably pledges a sufficient portion of the Tax Receipts to
the payment of the principal of and interest on the Bonds .
The Bonds shall be issued in the forms and denominations set
forth in the Indenture ; shall be dated October 15 , 1990 ; shall
be numbered as provided in the Indenture ; shall mature annually
on November 15 of the years 1991 through 2002 , inclusive , and on
November 15 , 2005 and November 15 , 2008 , as set forth in Exhibit
A hereto ; shall bear interest payable semiannually on May 15 and
November 15 of each year commencing May 15 , 1991 , at the rates
set forth in the Authorizing Ordinance and in Exhibit A hereto ;
and shall be subject to redemption prior to maturity upon the
terms and conditions set forth in the Indenture and the
Authorizing Ordinance . The issuance of the Bonds will not
result in an excess of indebtedness of the City within the
meaning of any constitutional or statutory limitation .
The proceeds from the sale of the Bonds are to be used ,
along with other available moneys , to finance costs of
acquiring , constructing and equipping certain capital
improvements for the City and to pay the costs of issuance of
the Bonds .
SECTION 1 , REPRESENTATIONS , WARRANTIES , COVENANTS AND
AGREEMENTS .
By execution hereof , the City hereby represents to , and
agrees with , the Underwriter that :
( a ) The City is a city of the first class and
political subdivision duly organized and existing under the
Constitution and laws of the State of Arkansas . The City is
authorized by the provisions of the Act and the Authorizing
Ordinance to issue , sell and deliver the Bonds for the purposes
specified above , to adopt and perform its obligations under the
Authorizing Ordinance , the Indenture and this Bond Purchase
Agreement ( this " Agreement " ) , and to irrevocably pledge a
portion of the Tax Receipts to the payment of the principal of
and interest on the Bonds as provided in the Indenture .
( b ) The City has full power and authority to
consummate all transactions contemplated by this Agreement , the
Bonds , the Authorizing Ordinance , the Indenture and any and all
other agreements relating thereto to which the City is a party .
( c ) The City has duly authorized all action necessary
under the Act or otherwise to be taken by it or on its behalf
for : ( i ) the issuance and delivery of the Bonds upon the terms
set forth in the Act , the Authorizing Ordinance , the Indenture ,
this Agreement and the Official Statement ( as hereinafter
defined ) ; ( ii ) the execution and delivery by it of the Indenture
and this Agreement ; ( iii ) the pledge of a portion of the Tax
Receipts ; and ( iv ) the adoption of the Authorizing Ordinance and
the performance of its duties thereunder .
( d ) The City has previously provided the Underwriter
with copies of its Preliminary Official Statement , including the
cover page , dated September 7 , 1990 , relating to the Bonds ( the
" Preliminary Official Statement " ) . As of its date , the
Preliminary Official Statement has been " deemed final " by the
City for purposes of SEC Rule 15c2 - 12 ( b ) ( 1 ) . The Preliminary
Official Statement , as amended to conform to the terms of this
Bond Purchase Agreement , including Exhibit A hereto , and with
such other changes and amendments as are mutually agreed to by
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the City and the Underwriter , is herein referred to as the
" Official Statement . "
( e ) Except as described in the Official Statement ,
there is no . action , suit , proceeding , inquiry or investigation
at law or in equity or before or by any court , public board or
body pending or , to the knowledge of the City , threatened
against or affecting it ( or , to its knowledge , any basis
therefor ) wherein an unfavorable decision , ruling or finding
would adversely affect the transactions contemplated by this
Agreement or would adversely affect the validity of the Bonds ,
the Authorizing Ordinance , the Indenture , this Agreement or any
agreement or instrument to which the City is a party and which
is used or contemplated for use in the consummation of the
transactions contemplated hereby .
( f ) The descriptions and information contained in the
Official Statement relating to the City , its organization ,
properties , operations and financial condition and the
descriptions of the Bonds , the Indenture and the Tax Receipts
are , and at the Closing Date ( as defined in this Agreement and
used hereinafter ) will be , true and do not contain , and at the
Closing Date will not contain , any untrue statement of a
material fact or omit to state a material fact necessary in
order to make the statements made therein , in light of the
circumstances under which they were made , not misleading .
( g ) Since December 31 , 1969 , there has not been any
material adverse change in the properties , financial position or
results of operations of the City , whether or not arising from
transactions arising in the ordinary course of business , other
than any such changes which are disclosed in the Official
Statement , and since such date the City has not entered into any
transaction or incurred any liability material as to the City ,
except as disclosed in the Official Statement .
( h ) The City will not take or omit to take any action
which will in any way result in the proceeds from the sale of
the Bonds being applied in a manner inconsistent with the
provisions of the Authorizing Ordinance and the Indenture .
( i ) The Bonds , when executed and delivered by the
City , will constitute special obligations of the City
enforceable in accordance with their terms , except to the extent
that enforcement thereof may be limited by bankruptcy ,
insolvency or other similar laws affecting creditors ' rights
generally and by the application of general principles of equity .
( j ) The Authorizing Ordinance , the Indenture and this
Agreement , when executed and delivered by the City , will be the
legal , valid and binding obligations of the City enforceable in
accordance with their respective terms , except to the extent
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that enforcement thereof may be limited by bankruptcy ,
insolvency or other similar laws affecting creditors ' rights
generally and by the application of general principles of equity .
( k ) The execution and of the Bonds , the
Indenture and this Agreement , the adoption of the Authorizing
Ordinance , and the performance by the City of its obligations
under the aforementioned , do not and will not violate the Act or
any court order by which the City is bound , and such actions do
not and will not constitute a default under any existing
resolution , agreement , indenture , mortgage , lease , note or other
obligation or instrument to which the City is a party , and no
approval or other action by any governmental authority or agency
other than the State Treasurer is required in connection
therewith .
proposed listing City
tnotified has not been ofany
listinor
that it is a bond issuer whose arbitrage certifications may not
be relied upon .
SECTION 2 , PURCHASE , SALE , AND DELIVERY OF THE BONDS .
On the basis of , and in reliance upon , the warranties ,
representations and agreements of the City contained herein and
in the other documents and agreements referred to herein and
subject to the terms and conditions herein set forth , at the
Q Closing Time , the Underwriter agrees to purchase from the City
and the City agrees to sell to the Underwriter the Bonds at a
/ price of of the principal amount thereof )
plus accrue7nteres(
t fr the date of the Bonds to the date of
payment and thereo
, 76, 585
The Bonds shall be issued under and secured as provided in
the Authorizing Ordinance and the Indenture , and the Bonds shall
have the maturities and interest rates and be subject to
redemption as set forth in the Authorizing Ordinance .
Payment for the Bonds shall be made by certified or official
bank check or draft , wire transfer , or otherwise in funds
immediately available to the City on the same day , at the
offices of Brown & Wood , in New York , New York , at 10 : 00 a . m . on
October 18 , 1990 , or at such other place , date and hour as shall
be mutually agreed upon between the City and the Underwriter .
The date of such delivery and payment is herein called the
" Closing Date , " and the hour and date of such delivery and
payment is herein called the " Closing Time . "
The Bonds shall be printed or lithographed on steel engraved
borders , shall bear CUSIP numbers , shall be . prepared and
delivered as fully registered bonds in denominations of $ 5 , 000
or integral multiples thereof ( except for one Bond in the
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