HomeMy WebLinkAboutOrdinance 3829 " OR R ` C0RD '
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ORDINANCE NO- 3829 ` " , is I `l G i g ti CO AR
A . KOL " Yt: R
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
WATER AND SEWER SYSTEM REVENUE BONDS , SERIES
19947 IN A PRINCIPAL AMOUNT NOT TO EXCEED
$55500,0005 OF THE CITY OF FAYETTEVILLE,
ARKANSAS; AUTHORIZING THE EXECUTION AND
DELIVERY OF A BOND PURCHASE AGREEMENT IN
CONNECTION THEREWITH; PROVIDING FOR CERTAIN
OTHER MATTERS RELATING THERETO AND DECLARING
AN EMERGENCY .
WHEREAS, the City of Fayetteville, Arkansas (the "City ") , a city of the first class,
owns and operates a public water and sewer utility system (which system, together with all
capital improvements thereto, is herein collectively called the "System"); and
WHEREAS, the City is authorized under the constitution and la of the State,
particularly Arkansas Code Annotated §§ 14-234-201 gl =. ; Arkansas Code A notated §§ 14-
235-201 , eel 5N. ; Arkansas Code Annotated §§ 14- 164-401 egj s-QQ. ; and Arkansas Code
Annotated §§ 19-9-601 e9 e=. (collectively the "Authorizing Legislation"), to acquire,
construct, equip, improve, maintain, operate and repair the System and to issue its revenue
bonds to finance capital improvements to the System; and
WHEREAS, the City Council ("Council ") believes that it is in the best interest of the
City that the City authorize and issue its Water and Sewer System Revenue Bonds, Series 1994,
dated October 1 , 1994, in a principal amount not to exceed $5,500,000 and as further described
in Section 3 of this Ordinance (the " Bonds"), to provide funds, with any other available funds,
to finance the cost of making such capital improvements, to establish a related debt service
reserve and to pay certain expenses incidental thereto; and
WHEREAS, the City has made arrangements for the sale of the Bonds to Llama
Company of Fayetteville, Arkansas (the "Purchaser") and in connection therewith has prepared
and distributed a Preliminary Official Statement, dated September 12, 1994 (the "Preliminary
Official Statement"); and
WHEREAS, there has been submitted to the City a Bond Purchase Agreement, dated
September 20, 1994 (the "Bond Purchase Agreement"), providing for the purchase of the Bonds
by the Purchaser; and
WHEREAS, a final Official Statement, dated September 20, 1994 (the "Official
Statement"), has been prepared and will be distributed in connection with the offer and sale of
the Bonds; and
WHEREAS, copies of the Preliminary Official Statement, Official Statement and Bond
Purchase Agreement have been presented to and are before the Council;
94058930
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Ordinance No . 3829
September 20 , 1994
Page 2
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS, AS FOLLOWS :
Section 1 . Definitions. In addition to the terms defined in the preamble to this
Ordinance the following terms shall have the following meanings:
"Accountant" means a firm of independent certified public accountants of recognized
national standing selected from time to time by the City, which may be the firm of accountants
that regularly audits the books of the City .
"Amortization Requirements " means the amounts required to be deposited in the Series
1994 Bond Fund for the purpose of redeeming prior to their maturity and paying at their
maturity the Term Bonds, the specific amounts and times of such deposits being set forth in
Schedule A attached hereto.
"Budget" means the annual budget of the System adopted in accordance with this
Ordinance.
"Code" means the Internal Revenue Code of 1986, as now or hereafter amended, and
applicable regulations issued or proposed thereunder.
"Government Obligations" means (i) direct obligations of, or obligations for the payment
of the principal of and interest on which is fully guaranteed by, the United States of America;
(ii) obligations issued or guaranteed by any instrumentality or agency of the United States of
America, whether now existing or hereafter organized, including but not limited to those of the
Federal Financing Bank, the members of the Farm Credit System whether individually or
consolidated, Federal Home Loan Banks, the Export-Import Bank, Government National
Mortgage Association and the Tennessee Valley Authority; (iii) evidences of ownership of
proportionate interests in future interest or principal payments on obligations specified in clause
(i) of this definition held by a bank or trust company as custodian, under which the owner of
the investment is the real party in interest and has the right to proceed directly and individually
against the obligor on the underlying obligations described in clause (i) of this definition, and
which underlying obligations are not available to satisfy any claim of the custodian or any
person claiming through the custodian or to whom the custodian may be obligated; (iv)
municipal obligations, the payment of the principal of, interest on and redemption premium,
if any, on which are irrevocably secured by obligations described in clause (i) of this definition
and which obligations have been deposited in an escrow account, which is irrevocably pledged
to the payment of the principal of, interest on and redemption premium, if any, on such
municipal obligations; (v) obligations issued by any state of the United States; and (vi)
94058931
Ordinance No , 3829
September 20 , 1994
Page 3
municipal obligations the payment of the principal of and interest on which are insured;
provided, however, the obligations described in clauses (v) and (vi) of this definition shall also
be rated in one of the top two highest rating categories (without regard to any gradation within
such category) by both Moody's and S&P or, upon the discontinuance of either or both of such
services, any other nationally recognized rating service or services.
"Gross Revenues" means all fees, tolls, rates, rentals and charges levied and collected
in connection with and all other income and receipts of whatever kind or character derived by
the City from the operation of the System. Gross Revenues shall specifically include, but not
be limited to, revenues from water sales, sewer service charges, fire protection charges and
interest income on Revenue Fund balances. Notwithstanding the foregoing, Gross Revenues
shall not include acreage, front-footage, tap-on, assessment and similar fees, charges,
contributions or grants derived by the City in connection with the provision of or payment for
capital improvements constituting a part of the System.
"Guaranteed Investment Contract" means investment agreements with any bank or trust
company which has long-term obligations rated in one of the two highest rating categories by
Moody's and S&P or, upon the discontinuance of either or both of such services, any other
nationally recognized rating service or services.
"Improvements" means the capital improvements to be made to the System described
in Section 2 of this Ordinance, the cost of which is to be financed in part by the issuance of
the Bonds and is more fully described in Section 5 of this Ordinance.
"Interest Payment Date" means February 15 and August 15 of each year beginning
February 15 , 1995 .
"Investment Obligations" means any of the following, to the extent that the same are
legal investments for the investment of public funds under State law :
(a) Government Obligations;
(b) bankers acceptances, certificates of deposit or time deposits of any
bank, trust company or savings and loan association (including any investment in pools
of such bankers acceptances, certificates of deposit or time deposits), which, to the
extent that such obligations are not insured by the Federal Deposit Insurance
Corporation, are collateralized at all times in amounts and by obligations as shall be
permitted by State law;
94058932
Ordinance No . 3829
September 20 , 1994
Page 4
(c) any repurchase, reverse repurchase or investment agreement with
any bank or trust company organized under the laws of any state of the United States
or any national banking association, insurance company, or government bond dealer
reporting to, trading with, and recognized as a primary dealer by the Federal Reserve
Bank of New York and a member of the Security Investors Protection Corporation,
which agreement is secured by any one or more of the securities described in clauses
(i) , (ii) or (iii) of the definition of Government Obligations provided that the City has
a perfected first security interest in the collateral and that the City or its agent has
possession of the collateral, and that such collateral is held free and clear of claims by
third parties;
(d) Guaranteed Investment Contracts; and
(e) any mutual f ind(s) rated AAA by Moody's or S&P consisting
entirely of Government Obligations.
"Maximum Principal and Interest Requirements" means the maximum amount of
Principal and Interest Requirements for any fiscal year of the System.
" Moody's" means Moody's Investors Service, a corporation organized and existing
under the laws of the State of Delaware, its successors and their assigns, and, if such
corporation shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized
securities rating agency designated by the City.
"Net Revenues" means, for any period, Gross Revenues less Operating Expenses for
such period.
"Operating Expenses" means, for any period, all ordinary and necessary expenses of
operation, repair, maintenance and insuring of the System under generally accepted accounting
principles except that they shall not include any allowance for depreciation, any deposits or
transfers to the credit of the Bond Fund and the Series 1994 Bond Fund or any other fund or
account created for the payment of debt service on Parity Indebtedness or subordinated
indebtedness secured by a pledge of Net Revenues as permitted hereunder, the Debt Service
Reserve Fund and the Series 1994 Debt Service Reserve Fund or any other debt service reserve
fund or account created in connection with the issuance of Parity Indebtedness or such
subordinated indebtedness or the Renewal and Replacement Fund, or any payments with respect
to obligations not payable in whole or in part under any circumstances from Gross Revenues.
94058933
Ordinance No . 3829
September 20 , 1994
Page 5
"Parity Indebtedness" means the 1992 Bond and indebtedness of the City issued on a
parity of security with the Bonds in accordance with Section 14 of this Ordinance.
"Principal and Interest Requirements" for any calendar year of the System, as applied
to the Bonds, means the sum of:
(a) the amount required to pay the interest on the Bonds then outstanding
which is payable on February 15 and on August 15 of such calendar year,
(b) the amount required to pay the principal of the Serial Bonds then
outstanding which is payable on August 15 of such calendar year and
(c) the Amortization Requirement for the Term Bonds then outstanding
for the twelve ( 12)-month period ending on August 14 of such calendar year.
In calculating Principal and Interest Requirements there may be excluded any principal and
interest amount of the Bonds which the City covenants to pay or satisfy with moneys in the
Series 1994 Debt Service Reserve Fund which may be used for such purpose. "Principal and
Interest Requirements" for any fiscal year of the System, as applied to any Parity Indebtedness,
means the sum of the amounts required by the ordinance providing for the issuance of such
Parity Indebtedness to pay or to provide for the payment of the interest on and principal of such
Parity Indebtedness then outstanding with respect to such fiscal year.
"Reserve Fund Requirement" means the lesser of an amount equal to (a) ten percent
(10%) of the proceeds of the Bonds determined on the basis of the stated principal amount of
the Bonds, (b) the maximum annual Principal and Interest Requirements on the Bonds, or (c)
125 percent (125 %) of the average annual Principal and Interest Requirements on the Bonds.
"S&P" means Standard & Poor's Rating Group, a division of McGraw-Hill, Inc. its
successors and their assigns, and, if "S&P" shall be dissolved or liquidated or shall no longer
perform the functions of a securities rating agency, "S&P" shall be deemed to refer to any
other nationally recognized securities rating agency designated by the City .
"Serial Bonds" means the Bonds which shall be stated to mature in annual installments
and are so designated in Schedule A attached hereto.
"State" means the State of Arkansas.
"Term Bonds" means the Bonds so designated in Schedule A attached hereto.
94058934
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Ordinance No , 3829
September 20 , 1994
Page 6
"Trustee" means the Trustee serving as such under this Ordinance, whether original or
successor.
Section 2. Financing and Construction of the Improvements. 1 . The City has
constructed a 42-inch water transmission line from the Beaver Water Treatment Plant at Lowell,
Arkansas, to the northern part of the City in accordance with the recommendations in the Water
Master Planning Study and the Overall Design Report prepared for the City by McGoodwin,
Williams and Yates in 1989 and 1991 , respectively, and as specified in plans and specifications
for the work prepared by McGoodwin, Williams and Yates and McClelland Engineers. This
project was commonly known as Phase I of the Water Transmission Line project ("Phase V) .
2. Now the Council hereby determines that it is necessary to construct or otherwise
make additional capital improvements to the System, the cost of which is to be financed in part
by the issuance of the Bonds. The improvements to be made are a continuance of the work
completed under Phase I and will be commonly known as Section I , II, and III of the Water
Transmission Line and Tank Project ("Section 1, Section II, & Section III" or collectively the
"Improvements").
(a) Section I will include the construction of a water connection from two
new water storage tanks to an existing 24-inch water main, in the southwest portion of
the City. Work involved shall include approximately 3 ,470 feet of 36-inch water main,
7,367 feet of 30-inch water main, 526 feet of 24" water main, and related work.
(b) Section II will include construction of two (2) six-million gallon ground
storage reservoirs, related yard piping, access road and related work.
(c) Section III will include construction of a 36-inch water transmission main
and 12-inch distribution main on the west side of Fayetteville. Work involved shall
include approximately 37,995 feet of 36-inch water main, 5 ,620 feet of 12-inch water
main, and related work.
3 . After the proceeds of the Bonds are applied to the funding of the Series 1994 Debt
Service Reserve Fund and the Series 1994 Bond Fund in accordance with the provisions of
Section 22 of this Ordinance, the remaining proceeds of the Bonds will be deposited to the
credit of the Series 1994 Construction Fund created by this Ordinance and applied to pay a
portion of the cost of making the Improvements inclusive of the Bonds' cost of issuance.
94058935
Ordinance No . 3829
September 20 , 1994
Page 7
Section 3 . Authorization and Terms of Bonds. 1 . Under the authority of the
constitution and laws of the State, including particularly the Authorizing Legislation, there is
hereby authorized the issuance of revenue bonds of the City to be designated "City of
Fayetteville Water and Sewer System Revenue Bonds, Series 1994" in a principal amount not
to exceed Five Million Five Hundred Thousand Dollars ($5,500,000) . The Bonds shall be
special obligations of the City and the principal of and the interest and any redemption premium
on the Bonds shall be secured by a statutory mortgage lien upon the water transmission and
distribution portion of the System and a pledge of and payable solely from the Net Revenues
as provided in this Ordinance. The Bonds shall rank on a parity of security with the
$10,000,000 City of Fayetteville, Arkansas Water and Sewer System Refunding and
Improvement Revenue Bonds, Series 1992 (the " 1992 Bonds") . The principal of, the interest
and any redemption premium on the Bonds may also be paid as herein provided from other
moneys in the Series 1994 Debt Service Reserve Fund and certain other funds created hereby,
including any income received from the investment of moneys deposited in such funds.
2. The Bonds shall be dated October 1 , 1994, and interest thereon shall be payable
semiannually on February 15 and August 15 of each year, commencing February 15 , 1995 .
The Bonds shall be issued as fully-registered bonds, numbered consecutively from R- 1 upwards,
and shall be in the denomination of $5 ,000 or any integral multiple thereof. Each Bond shall
bear interest from the interest payment date next preceding the date of authentication thereof
unless it is authenticated as of an interest payment date, in which event it shall bear interest
from such date, or unless it is authenticated prior to the first interest payment date, in which
event it shall bear interest from its date, or unless at the time of authentication interest on the
Bonds shall be in default, in which event it shall bear interest from the date to which interest
has been paid in full.
3 . The Bonds shall be issued in the principal amounts, shall mature, unless sooner
redeemed in the manner set forth in this Ordinance, shall consist of Serial Bonds and Term
Bonds, with the Term Bonds having such Amortization Requirements as set forth herein, and
shall bear interest as set forth in Schedule A attached hereto (which Schedule is incorporated
herein by this reference) .
4. The Bonds shall be subject to redemption prior to maturity in accordance with
the provisions pertaining thereto appearing in the form of Bond hereinafter set forth in this
Ordinance. Bonds shall be redeemed only from and to the extent funds on deposit in the Series
1994 Bond Fund are available and sufficient for such purpose.
5 . The Bonds shall be payable, with respect to principal, premium, if any, and
interest, in any coin or currency of the United States of America that at the time of payment
9405 ®936
Ordinance No , 3829
September 20 , 1994
Page 8
is legal tender for the payment of public and private debts. The principal of and any
redemption premium on each Bond shall be payable to the registered owner thereof or his
registered assigns or legal representative at the corporate trust office of the Trustee upon the
presentation and surrender thereof as the same shall become due and payable. Payment of the
interest on each Bond shall be made by the Trustee on each interest payment date to the person
appearing on the registration books of the City as maintained by the Trustee hereinafter
provided for as the registered owner of such Bond (or the previous Bond or Bonds evidencing
the same debt as that evidenced by such Bond) at the close of business on the record date for
such interest, which shall be the first (1st) day (whether or not a business day) of the calendar
month of such interest payment date, by check mailed to such person at his address as it
appears on such registration books. Payment of the interest on the Bonds shall also be made
by wire transfer to the registered owner of $ 1 ,000,000 or more in principal amount of the
Bonds upon the request of such owner.
6. The Bonds shall bear the facsimile signatures of the Mayor and City Clerk of the
City and a facsimile of the official seal of the City shall be imprinted thereon. In case any
officer a facsimile of whose signature shall appear on any of the Bonds shall cease to be such
officer before the Bonds shall have been delivered, such Bonds may, nevertheless, be delivered
as herein provided and may be issued as if the person whose facsimile signature appears on
such Bonds had not ceased to hold such office. Any Bonds may bear the facsimile signatures
of such persons who at the time of the execution of such Bonds shall be duly authorized or hold
the proper office in the City although at the date of the Bonds such persons may not have been
so authorized or have held such office.
7 . The Bonds may be exchanged and registered and transfers of the Bonds may be
registered in accordance with the provisions pertaining thereto appearing in the form of Bond
hereinafter set forth in this Ordinance.
8. No Bond shall be valid or become obligatory for any purpose or be entitled to
any benefit or security under this Ordinance until it shall have been authenticated by the
execution by the Trustee of the certificate of authentication endorsed thereon.
Section 4. Bond Form. The Bonds and the endorsements thereon shall be in
substantially the following form and the Mayor and City Clerk of the City are hereby
authorized and directed to make all recitals contained therein:
94058937
Ordinance No , 3829
September 20 , 1994
Page 9
UNITED STATES OF AMERICA, STATE OF ARKANSAS
COUNTY OF WASHINGTON
No. R- $
CITY OF FAYETTEVILLE
WATER AND SEWER SYSTEM
REVENUE BOND, SERIES 1994
Rate of Maturity Dated
Interest: Date: Date: October 1 , 1994 CUSIP:
Registered Owner:
Principal Amount: Dollars
THE CITY OF FAYETTEVILLE, ARKANSAS (the "City "), a city of the first class,
duly created under the laws of the State of Arkansas, for value received, promises to pay to the
Registered Owner shown above, or registered assigns or legal representative, upon presentation
and surrender of this bond at the corporate trust office of Bank of Oklahoma, N .A. (the
"Trustee") , in the city of Tulsa, Oklahoma, the Principal Amount shown above on the Maturity
Date shown above (unless this bond shall have been called for prior redemption, in which case
on the redemption date), 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 interest
on said Principal Amount from the Dated Date shown above or from the February 15 or August
15 next preceding the date of authentication to which interest shall have been paid, unless such
date of authentication is a February 15 or an August 15 to which interest shall have been paid,
in which case from such date, such interest to the maturity hereof being payable on February
15 and August 15 in each year, at the Interest Rate per annum specified above, until payment
of said Principal Amount. The interest so payable on any such interest payment date will be
paid to the person in whose name this bond (or the previous bond or bonds evidencing the same
debt as that evidenced by this bond) is registered at the close of business on the record date for
such interest, which shall be the first ( 1st) day (whether or not a business day) of the calendar
month of the interest payment date, by check mailed to such person at his address as it appears
on the bond registration books of the City maintained by the Trustee. Payment of the interest
on this bond shall also be made by wire transfer to the registered owner of this bond upon the
request of such owner if such owner is the registered owner of $1 ,000,000 or more in principal
amount of the bonds of the series of which this bond is one.
94058938
Ordinance No . 3829
September 20 , 1994
Page 10
This bond is one of a series of bonds, designated "City of Fayetteville Water and Sewer
System Revenue Bonds, Series 1994" and aggregating in a principal amount not to exceed Five
Million Five Hundred Thousand Dollars ($5,500,000). The Bonds have been issued for the
purpose of financing a portion of the cost of making certain capital improvements to the System
of the City, funding a debt service reserve and paying certain expenses incidental thereto. The
Bonds have been issued pursuant to and in full compliance with the constitution and laws of the
State of Arkansas, including particularly Arkansas Code Annotated §§ 14-234-201 , eel s. ;
Arkansas Code Annotated §§ 14-235-201 , gi gQ. ; Arkansas Code Annotated §§ 14- 164-401 ,
gl Sgq. ; and Arkansas Code Annotated §§ 19-9-601 , e-1 an. and pursuant to Ordinance No.
3829 of the City adopted by the City Council of the City on September 20, 1994 (the
"Ordinance") . The Ordinance permits the City to issue, under certain circumstances, Parity
Indebtedness (as defined in the Ordinance) that may be on a parity of security with the Bonds
and subordinated indebtedness payable from Net Revenues subordinate to the Bonds and Parity
Indebtedness. Reference is hereby made to the Ordinance and to all ordinances supplemental
thereto for the provisions, among others, with respect to the nature and extent of the security,
the rights, duties and obligations of the City, the Trustee appointed under the Ordinance and
the registered owners of the Bonds, and the terms upon which Bonds are issued and secured.
A copy of the Ordinance is on file at the corporate trust office of the Trustee and, by the
acceptance of this bond, the registered owner hereof assents to all of the provisions of the
Ordinance.
The Bonds are special obligations of the City and the principal of, interest on and any
redemption premium on the Bonds are secured by a statutory mortgage lien upon the water
transmission and distribution portion of the System and a pledge of and payable solely from the
Net Revenues (as defined in the Ordinance) of the City's water and sewer system, as more
particularly described in the Ordinance. In no event shall the Bonds constitute an indebtedness
of the City within the meaning of any constitutional or statutory debt limitation or restriction.
THE TERMS AND PROVISIONS OF THIS BOND ARE CONTINUED ON THE
REVERSE HEREOF AND SUCH CONTINUED TERMS AND PROVISIONS SHALL FOR
ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.
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 this
bond do exist, have happened and have been performed in due time, form and manner as
required by law and that the indebtedness represented by the Bonds, together with all other
obligations of the City, does not exceed any constitutional or statutory limitation.
94058939
Ordinance No . 3829
September 20 , 1994
Page 11
This bond shall not be valid until the Certificate of Authentication endorsed hereon shall
have been signed by the Trustee.
IN WITNESS WHEREOF, the City of Fayetteville, Arkansas, has caused this bond to
bear the facsimile signatures of its Mayor and its City Clerk, thereunto duly authorized, and
its official seal to be imprinted hereon, all as of the Dated Date.
CITY OF FAYETTEVILLE, ARKANSAS
Mayor
City Clerk
[SEAL)
CERTIFICATE OF AUTHENTICATION
This bond is one of the City of Fayetteville, Arkansas Water and Sewer System Revenue
Bonds, Series 1994 described herein.
Bank of Oklahoma, N .A . , Trustee
By:
Authorized Signatory
Date of authentication:
94058940
Ordinance No , 3829
September 20 , 1994
Page 12
[REVERSE OF BOND]
The Bonds are special obligations of the City payable solely from the revenues of the
City's water and sewer system (the "System") , which are transferred to the Series 1994 Bond
Fund established by the Ordinance (the "Series 1994 Bond Fund") in an amount sufficient to
pay the principal of, interest on and any redemption premium on the Bonds after providing for
the payment of operation and maintenance expenses of the System from such revenues. The
Bonds rank on a parity of security with the $ 10,000,000 City of Fayetteville, Arkansas Water
and Sewer System Refunding and Improvement Revenue Bonds, Series 1992. In the
Ordinance, the City covenants to maintain rates for System services sufficient to produce
annually revenues of at least one hundred ten percent ( 110%) of the amount required for such
fiscal year to (i) pay Operating Expenses, (ii) pay Principal and Interest Requirements on all
Bonds and all Parity Indebtedness then outstanding, (iii) pay any Trustee fees, (iv) make
required deposits into any debt service reserve funds associated with the 1992 Bonds and the
Bonds and all Parity Indebtedness outstanding, and (v) make required deposits into the Renewal
and Replacement Fund. The City shall increase System Rates from time to time, as and when
necessary, to produce Gross Revenues in the amount specified above.
The Bonds are further secured by amounts maintained in the Series 1994 Debt Service
Reserve Fund established by the Ordinance (the "Series 1994 Debt Service Reserve Fund") .
Moneys in the Series 1994 Debt Service Reserve Fund may be used only for the payment of
principal of and interest on the Bonds in the event moneys in the Series 1994 Bond Fund are
insufficient for such purposes or to pay the final maturity of and the respective interest on the
Bonds.
Under certain circumstances moneys in the Renewal and Replacement Fund established
by Ordinance Number 3638 and adopted by the City on August 18, 1992, may also be used to
pay principal of and interest on the Bonds if moneys in the Series 1994 Bond Fund and Series
1994 Debt Service Reserve Fund are insufficient for such purposes.
The Bonds may be redeemed from surplus funds remaining in the Series 1994
Construction Fund after completion of the Improvements, in inverse order of maturity, on the
first interest payment date for which the required notice can be given at a price of par plus
accrued interest to the date fixed for redemption.
The Bonds maturing on or after August 15 , 2005, are subject to redemption prior to
maturity, at the option of the City, on and after August 15, 2004, from funds from any source,
in whole or in part at any time, at par plus accrued interest to the date fixed for redemption.
94058941
