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HomeMy WebLinkAboutOrdinance 3829 " OR R ` C0RD ' S f SLP 29 AIS 9 y0 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 r 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 1 1 } 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 Ordinance No. 3829 September 20, 1994 Page 13 Bonds maturing on August 15 in the years 1995 to 2004, inclusive, are designated Serial Bonds. Bonds maturing on August 15 in the years 2005 and 2008 are designated Terms Bonds. The Term Bonds mature August 15, 2008, and are subject to mandatory redemption in part by lot on any August 15 on and after August 15, 2005, at the principal amount thereof plus accrued interest to the date of redemption, from sinking fund installments which are required to be made in amounts sufficient to redeem on August 15, of each year the principal amount of such Bonds specified for each of the years shown below: YEAR AMOUNT 111 111 11� :1 111 PI 1 II 11: 41 1H If less than all of the Bonds of any one maturity shall be called for redemption, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot by the Trustee in such manner as the Trustee in its discretion may determine; provided, however, that the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some multiple thereof and that, in selecting Bonds for redemption, the Trustee shall treat each Bond as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000. If less than all of the Bonds stated to mature on different dates shall be called for redemption, the particular Bonds or portions thereof to be redeemed shall be called in inverse order of their maturities. Not more than sixty (60) nor less than thirty (30) days before the redemption date of any Bonds to be redeemed, whether such redemption be in whole or in part, the City shall cause a notice of such redemption to be filed with the Trustee and the Trustee shall mail, postage prepaid, such notice to the registered owner of each Bond to be redeemed in whole or in part at his address appearing upon the registration books of the City. Such notice may also be given to such national depositaries and wire services used to distribute information relating to municipal bonds in such manner and at such time as the Trustee may deem appropriate. Failure so to mail or give such notice or any defect therein shall not affect the validity of the proceedings for such redemption as regards registered owners to whom such notice was given as required. Each such notice shall set forth the date designated for redemption, the redemption price to be paid, the maturities of the Bonds to be redeemed and, if less than all of the Bonds of any one maturity then outstanding shall be called for redemption, the distinctive numbers and letters, if any, of such Bonds to be redeemed and, in the case of any Bond to be redeemed in part only, the portion of the principal amount thereof to be redeemed. If any Bond is to be 94058942 Ordinance No. 3829 September 20, 1994 Page 14 redeemed in part only, the notice of redemption shall state also that on or after the redemption date, upon surrender of such Bond, a new Bond or Bonds in principal amount equal to the unredeemed portion of such Bond will be issued. On or before the third (3rd) business day preceding the date fixed for redemption for any of the Bonds outstanding, the City shall deposit money with the Trustee to pay the principal of and the redemption premium, if any, on the Bonds or portions thereof called for redemption as well as the interest accruing thereon to the redemption date thereof. On the date fixed for redemption, notice having been given in the manner and under the conditions hereinabove provided, the Bonds or portions thereof called for redemption shall be due and payable at the redemption price provided therefor, plus accrued interest to such date. If moneys sufficient to pay the redemption price of the Bonds or portions thereof to be redeemed, plus accrued interest thereon to the date fixed for redemption, are held by the Trustee in trust for the registered owners of Bonds or portions thereof to be redeemed, interest on the Bonds or portions thereof so called for redemption shall cease to accrue, such Bonds or portions thereof shall cease to be entitled to any benefits or security under the Ordinance or to be deemed outstanding, and the registered owners of such Bonds or portions thereof shalt have no rights in respect thereof except to receive payment of the redemption price thereof, plus accrued interest to the date of redemption. If a portion of a Bond shall be selected for redemption, the registered owner thereof or his attorney or legal representative shall present and surrender such Bond to the Trustee for payment of the principal amount thereof so called for redemption and the redemption premium, if any, on such principal amount, and the Trustee shall authenticate and deliver to or upon the order of such registered owner or his legal representative, without charge therefor, for the unredeemed portion of the principal amount of the Bond so surrendered, a new Bond or Bonds of the same maturity, of any authorized denominations and bearing interest at the same rate. The Bonds are issuable in fully registered form in the denomination of $5,000 or any integral multiple thereof. Upon surrender thereof at the corporate trust office of the Trustee together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Trustee, Bonds may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Bonds of the same maturity, of any authorized denominations and bearing interest at the same rate. The Trustee shall keep at its corporate trust office the books of the City for the registration of transfer of Bonds. The transfer of this bond may be registered only upon such books upon the surrender hereof to the Trustee together with an assignment duly executed by 94058943 Ordinance No. 3829 September 20, 1994 Page 15 the registered owner hereof or his attorney or legal representative in such form as shall be satisfactory to the Trustee. Upon any such registration of transfer, the Trustee shall deliver in exchange for this bond a new Bond or Bonds, registered in the name of the transferee, of any authorized denominations, in an aggregate principal amount equal to the unredeemed principal amount of this bond, of the same maturity and bearing interest at the same rate. In all cases in which Bonds shall be exchanged or the transfer of Bonds shall be registered as provided above, the Trustee shall authenticate and deliver at the earliest practicable time Bonds in accordance with such provisions. All Bonds surrendered in any such exchange or registration of transfer shall forthwith be cancelled by the Trustee. The City or the Trustee may make a charge for shipping and out-of-pocket costs for every such exchange or registration of transfer of Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer, but no other charge shall be made for exchanging or registering the transfer of Bonds. The Trustee shall not be required to exchange or register the transfer of any Bond during a period beginning at the opening of business fifteen (15) days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or of any Bond called for redemption in whole or in part pursuant to the Ordinance. The registered owner of this Bond is required to give the Trustee written notice of ownership hereof and of the address to which interest payments are to be mailed. The City and the Trustee may deem and treat the person in whose name this bond is registered as the absolute owner hereof (whether or not this bond shall be overdue) for the purpose of receiving payment of, or on account of, principal hereof and interest due hereon and for all other purposes, and neither the City nor the Trustee shall be affected by any notice to the contrary. In certain events, on the conditions, in the manner and with the effect set forth in the Ordinance, the principal of all the Bonds then outstanding under the Ordinance may become or may be declared due and payable before the stated maturities thereof, together with the interest accrued thereon. This bond is declared to be a negotiable instrument within the meaning of the negotiable instruments law of the State of Arkansas under the provisions of Title 14, Chapter 164, Subchapter 4 and is issued with the intent that the laws of the State of Arkansas will govern its construction. No covenant or agreement contained in this bond or the Ordinance shall be deemed to be a covenant or agreement of any past, present or future alderman, director, officer or employee of the City in his individual capacity, and no officer thereof executing this bond shall 94058944 Ordinance No. 3829 September 20, 1994 Page 16 be liable personally on this bond or be subject to any personal liability or accountability by reason of the issuance of this bond. [Form of Assignment] FOR VALUE RECEIVED, the undersigned, hereby sells, assigns, and transfers unto (Please insert Social Security or other identifying number of assignee) the within bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: NOTICE: The signature(s) to this assignment must correspond with the names appearing upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or a trust company. Section 5. Series 1994 Construction Fund. 1. The City hereby creates and establishes the Series 1994 Construction Fund, which shall be maintained by the City as a segregated fund and to the credit of which there shall be deposited proceeds of the Bonds as directed in this Ordinance. Ordinance No. 3829 September 20, 1994 Page 17 2. The cost of the Improvements shall be paid from the Series 1994 Construction Fund as herein provided. For the purposes of this Section, the cost of the Improvement's shall include, without intending thereby to limit or to restrict or to extend any proper definition of such cost under the provisions of this Ordinance, the following: (a) obligations incurred for labor and materials and to contractors, builders and materialmen in connection with the construction of enlargements, improvements and extensions or other work, for machinery and equipment, and for the restoration of property damaged or destroyed in connection therewith; (b) all direct costs of the Improvements described in the plans and specifications for the Improvements; (c) the cost of acquiring by purchase, if such purchase shall be deemed expedient, and the amount of any award or final judgment in any proceeding to acquire by condemnation, such land, property rights, rights -of -way, franchises, easements, and other interests in lands as may be deemed necessary or convenient in connection with the Improvements, and the amount of any damages incident thereto; (d) expenses of administration properly chargeable to the work constituting the Improvements, legal, architectural and engineering expenses and fees, cost of audits and of preparing and issuing the Bonds, fees and expenses of consultants, financing charges, taxes or other governmental charges lawfully assessed during such work, premiums on insurance in connection with such work, premiums for bond insurance, initial set-up fees and annual fees for letters of credit, lines of credit, standby bond purchase agreements or other similar credit enhancement or liquidity enhancement devices and all other items of expense not elsewhere in this Section specified, incident to the work constituting the Improvements and the placing of the same in operation; and (e) any obligation or expense hereafter incurred by the City for any of the foregoing purposes, including the cost of materials, supplies or equipment furnished by the City in connection with the work constituting the Improvements and paid for by the City out of funds other than moneys in the Series 1994 Construction Fund. 3. Before any such payment shall be made, there shall be filed with the Administrative Services Director of the City or one or more other officers or employees of the City designated for such purpose by the City (collectively the "Administrative Services 94058946 Ordinance No. 3829 September 20, 1994 Page 18 Director") a requisition, signed by the City Engineer or one or more other officers or employees of the City designated for such purpose by the City (collectively the "City Engineer"), stating: (a) the item number of such payment, (b) the name of the person to whom such payment is due, (c) the amount to he paid including any applicable sales tax, (d) the purpose by general classification for which the obligation to be paid was incurred, (e) that the obligation in the stated amount has been incurred, is presently due and payable and constitutes a proper charge against the Series 1994 Construction Fund that has not been paid, (f) that there has not been filed with or served upon the City notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the money payable to any of the persons named in such requisition, which has not been released or will not be released simultaneously with the payment of such obligation, and (g) that such requisition contains no item representing payment on account of any retainage that the City is entitled to retain at the date of such requisition. Upon receipt of each requisition, the Administrative Services Director shall pay the obligations set forth in such requisition out of money in the Series 1994 Construction Fund. 4. When the work constituting the Improvements shall have been completed, which fact shall be evidenced by a certificate stating the date of such completion, signed by the City Engineer, the balance in the Series 1994 Construction Fund not reserved by the City for the payment of any remaining part of the cost of the Improvements shall be transferred, in the discretion of the City, to the credit of the Series 1994 Bond Fund for the payment of principal of and interest on the Bonds or for the extraordinary redemption of Bonds at par plus accrued interest in accordance with the Ordinance or retained in the Series 1994 Construction Fund to pay the cost of additional capital improvements, within the meaning of the Ordinance, which have been approved by the City. 94058947 • I Ordinance No. 3829 September 20, 1994 Page 19 Section 6. Rate Covenants. The City covenants that: (a) It will continue in effect the present schedules of rates for water and sewer services established by Ordinance No. 3491, adopted by the City on July 17, 1990, and by Ordinance No. 3637 adopted by the City on August 18, 1992 (which ordinances are incorporated herein by this reference and which rates are herein collectively called the "System Rates"). (b) Application of the System Rates will produce during each fiscal year of the System Gross 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 the 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. Section 7. Other Funds. 1. The City hereby incorporates by reference City Ordinance No. 3638, passed on August 18, 1992 (the "1992 Ordinance"), which authorized the issuance of the 1992 Bonds, and established and created the following funds: (a) Construction Fund (b) Revenue Fund (c) Operation and Maintenance Fund (d) Bond Fund (e) Debt Service Reserve Fund (f) Renewal and Replacement Fund. The City hereby creates and establishes the following funds: (a) Series 1994 Bond Fund (b) Series 1994 Debt Service Reserve Fund (c) Series 1994 Construction Fund The Construction Fund, Revenue Fund, Operation and Maintenance Fund, Renewal and Replacement Fund, and Series 1994 Construction Fund shall be maintained by the City as segregated funds. The Series 1994 Bond Fund and Series 1994 Debt Service Reserve Fund shall be maintained by the Trustee as segregated funds. 94058948 Ordinance No. 3829 September 20, 1994 Page 20 Moneys deposited in each of such funds shall be expended only as set forth in this Ordinance. 2. The City may, in connection with the issuance of Parity Indebtedness, create other funds under this Ordinance as may be necessary or convenient. Section 8. Revenue Fund. 1. The City shall cause all Gross Revenues to be promptly deposited to the credit of the Revenue Fund. 2. Commencing on the day following the delivery of the Bonds and thereafter not later than the fifth (5th) business day preceding the fifteenth (15th) day of each month, the City shall transfer from the Revenue Fund to the following funds, in the order indicated, the amounts set forth below: FIRST: As required by Ordinance No. 3638, a deposit into the Operation and Maintenance Fund of the amount necessary to cause moneys therein to equal the System's anticipated Operating Expenses, as shown by the Budget of proposed operating expenses adopted by the City for the then current fiscal year, for the next succeeding two months; SECOND: To the Trustee, for deposit into the Series 1994 Bond Fund, an amount equal to one -sixth (1/6th) of the interest due on the outstanding Bonds on the next Interest Payment Date plus one -twelfth (I/12th) of the principal due on the outstanding Bonds on the next principal or sinking fund redemption payment date (provided, however, that the first payments hereunder shall be prorated from the date of the Bonds' issuance), after taking into account amounts held in the Series 1994 Bond Fund for the payment of such principal and interest, and, for deposit into a separate account, such amount as is required to make the amount in each other fund or account created for the payment of debt service on Parity Indebtedness equal to the amount then required to be in such debt service fund or account; THIRD: To the Trustee, for deposit into the Series 1994 Debt Service Reserve Fund, beginning in the month following the month in which a deficiency in the Series 1994 Debt Service Reserve Fund was created by a withdrawal, valuation or otherwise, an amount at least equal to one -twelfth (1/12th) of the amount of such deficiency until the amount in the Series 1994 Debt Service Reserve Fund is equal to the Reserve Fund Requirement, and, for deposit into a separate account, such amount as is required to make the amount in each other debt service reserve fund or account created in connection with the issuance of Parity Ordinance No. 3829 September 20, 1994 Page 21 Indebtedness equal to the amount then required to be in such debt service reserve fund or account; and FOURTH: For deposit into the Renewal and Replacement Fund, to the extent moneys are available in the Revenue Fund, the amount necessary to cause the amount therein to equal $300,000 (as required by the 1992 Ordinance), or such greater amount as the City may determine from time to time to be appropriate, provided that the amount to be transferred from the Revenue Fund and deposited into such fund in any month need not exceed one -twelfth (1/12th) of the amount then required to be held for the credit of such fund. 3. If in any month there shall be a failure to transfer the required amount into any of the funds or accounts as described above, then the amount of any deficiency shall be added to the amount otherwise required to be transferred into said funds or accounts in the next succeeding month. 4. Any moneys remaining in the Revenue Fund immediately following the transfers required by the 1992 Ordinance and this Ordinance, and before additional deposits of Gross Revenues are made into the Revenue Fund, may be used, at the option of the City, for any lawful purposes. 5. On or before the third (3rd) business day preceding each redemption date for any Bonds called for redemption prior to maturity, the City shall transfer to the Trustee for deposit into the Series 1994 Bond Fund from any available funds of the City an amount sufficient, together with any other funds in the Series 1994 Bond Fund available for such puipose, to pay the interest on, the principal of and any premium on the Bonds to be redeemed pursuant to such call. Section 9. Operation and Maintenance Fund. 1. The City shall deposit to the credit of the Operation and Maintenance Fund moneys received therefor pursuant to Section 8 of this Ordinance and the 1992 Ordinance. 2. Moneys in the Operation and Maintenance Fund shall he expended solely for the purpose of paying Operating Expenses. Section 10. Series 1994 Bond Fund. 1. The Trustee shall deposit to the credit of the Series 1994 Bond Fund and any separate account with respect to a debt service fund or account created in connection with the issuance of Parity Indebtedness moneys received therefor pursuant to Section 8 of this Ordinance. 94058950 Ordinance No. 3829 September 20, 1994 Page 22 2. On or before the third (3rd) business day preceding each interest payment date or redemption date for any of the Bonds outstanding, the Trustee shall withdraw from the Series 1994 Bond Fund and deposit in trust in immediately available funds an amount sufficient to enable the Trustee to remit by mail or wire transfer, as the case may be, to the registered owners of the Bonds the amounts required to pay interest on the Bonds due on such date and Trustee fees, and such amount shall be so applied. 3. On or before the third (3rd) business day preceding each principal or sinking fund redemption payment date for any of the Bonds outstanding, the Trustee shall withdraw from the Series 1994 Bond Fund and deposit in trust in immediately available funds the amount required to pay principal of the Bonds due on such date and Trustee fees, and such amount shall be so applied. 4. Additional moneys held in the Series 1994 Bond Fund may be applied at the option of the City as a credit toward the required payments into the Series 1994 Bond Fund pursuant to Section 8 hereof or at the option of the City to the retirement of the Bonds as follows: (a) At the direction of the City the Trustee shall endeavor to purchase any Bonds secured hereby and then outstanding, whether or not the bonds shall then be subject to redemption, on the most advantageous terms obtainable with reasonable diligence, the price not to exceed the principal of and interest on the Bonds plus the amount of the redemption premium, if any, which might on the next redemption date be paid to the registered owners of the Bonds under the provisions of this Ordinance regarding redemption if the Bonds should be called for redemption on the date from moneys in the Bond Fund. However, no such purchase shall be made by the Trustee within the period of forty-five (45) days next preceding any Interest Payment Date on which the Bonds are subject to call for redemption under the provisions of this Ordinance, except from moneys other than moneys set aside or deposited for the redemption of Bonds. (b) Bonds which are subject to extraordinary redemption at par plus accrued interest up to the date fixed for redemption pursuant to the Ordinance shall be called for redemption on the first Interest Payment Date for which the required notice can be given in the inverse order of their maturities. (c) Subject to the provisions of this Ordinance regarding redemption, the Trustee may call for redemption, in inverse order of maturity, on each date on which Bonds are subject to redemption as provided in this Ordinance such amount of such Bonds as, with the redemption premium, if any, will exhaust the moneys which will be held for the credit of 94058951 Ordinance No. 3829 September 20, 1994 Page 23 the Series 1994 Bond Fund on such date as nearly as may be; provided, however, that no less than fifty thousand dollars ($50,000) principal amount of Bonds shall be called for redemption at any one time unless a lesser amount shall retire all outstanding Bonds. On or before the third (3rd) business day preceding each redemption date, the Trustee shall withdraw from the Series 1994 Bond Fund and set aside in separate accounts the respective amounts required for paying the interest on, the principal of and redemption premium of, the Bonds so called for redemption. Upon the retirement of any Bonds by purchase or redemption the Trustee shall file with the City Clerk a statement briefly describing such Bonds and setting forth the date of their purchase or redemption, the amount of the purchase price or the redemption price of such Bonds and the amount paid as interest thereon. The Trustee shall cancel said Bonds in which event they will no longer be deemed outstanding obligations of the City. The expenses in connection with the purchase or redemption of any Bonds shall be paid by the City or the Trustee from Revenues after the application of the Revenues as required by subsections 2 and 3 of Section 8 hereof. 5. All moneys that the Trustee shall have withdrawn from the Series 1994 Bond Fund or shall have received from any other source and deposited with the Trustee for the purpose of paying any of the Bonds hereby secured, either at the maturity thereof or upon call or redemption, or for the purpose of paying any interest or redemption premium on any of the Bonds hereby secured, shall be held in trust for the respective registered owners of such Bonds. But any moneys that shall be so set aside or deposited by the Trustee and that shall remain unclaimed by the registered owners of such Bonds for the period of three (3) years after the date on which such Bonds, the interest or any redemption premium thereon shall have become due and payable shall be remitted to the State Treasurer or to such other officer, board or body as may then be entitled by law to receive the same, and thereafter the registered owners of such Bonds shall look only to the State Treasurer or to such other officer, board or body, as the case may be, for payment and then only to the extent of the amounts so received without any interest thereon, and the Trustee shall have no responsibility with respect to such moneys. 6. If there shall be insufficient moneys in the Series 1994 Bond Fund, after all required transfers thereto have been made, to pay in full interest on, principal of and any premium due on any interest payment date or principal payment date the Trustee shall, on the second (2nd) business day prior to such date, withdraw from the Series 1994 Debt Service Reserve Fund and deposit in immediately available funds an amount equal to such deficiency. 7. If there shall still be insufficient moneys on deposit with the Trustee, after all required deposits thereto have been made as provided above in this Section, to pay in full the 94058952 Ordinance No. 3829 September 20, 1994 Page 24 interest on, principal of and any premium due on any interest payment date or principal payment date or redemption date the City shall immediately withdraw from the Renewal and Replacement Fund and deposit in trust with the Trustee in immediately available funds an amount equal to such deficiency. 8. Moneys credited to a separate account with respect to a debt service fund or account created in connection with the issuance of Parity Indebtedness shall be transferred by the Trustee in accordance with the terms of the ordinance providing for the issuance of such .Parity Indebtedness. Section 11. Renewal and Replacement Fund. 1. In accordance with the provisions of the 1992 Ordinance, if deductions are made therefrom, the Renewal and Replacement Fund shall be replenished in accordance with the provisions of the 1992 Ordinance. 2. Subject to the provisions of Section 10 of this Ordinance, moneys in the Renewal and Replacement Fund shall be used solely for the purpose of paying the cost of necessary repairs or replacements due to the depreciation of the System and not paid for with moneys in the Operation and Maintenance Fund and costs of damage caused to the System by unforeseen catastrophes. Section 12. Series 1994 Debt Service Reserve Fund. 1. The Trustee shall deposit to the credit of the Series 1994 Debt Service Reserve Fund and any separate account with respect to a debt service reserve fund or account created in connection with the issuance of Parity Indebtedness moneys received therefor pursuant to Sections 8 and 22 of this Ordinance. 2. Moneys credited to the Series 1994 Debt Service Reserve Fund shall be transferred as necessary, pursuant to Section 10 of this Ordinance, to provide for the payment of the principal of, interest on and premium, if any, on the Bonds when due. Moneys credited to the Series 1994 Debt Service Reserve Fund may also be transferred, at the option of the City, to the Series 1994 Bond Fund to provide for the payment of the final maturity of the principal of the Bonds and the respective interest thereon after all other principal of and interest on the Bonds has been paid, except as may be otherwise provided in connection with any refunding of the Bonds. 3. Moneys credited to the Series 1994 Debt Service Reserve. Fund in excess of the Reserve Fund Requirement and investment earnings on moneys credited to the Series 1994 Debt Service Reserve Fund in excess of the Reserve Fund Requirement may be transferred to the Series 1994 Bond Fund. 94058953 Ordinance No. 3829 September 20, 1994 Page 25 4. Moneys credited to a separate account with respect to a debt service reserve fund or account created in connection with the issuance of Parity Indebtedness shall be transferred by the Trustee in accordance with the terms of the ordinance providing for the issuance of such Parity Indebtedness. Section 13. Investment of Moneys. 1. At the direction of the City or absent such direction, the Trustee shall invest moneys in funds or accounts in Investment Obligations with maturity or redemption dates consistent with the times at which said moneys will be required for the purposes provided in this Ordinance. Moneys in separate funds or accounts may be commingled for the purpose of investment. 2. Obligations purchased as an investment of moneys in any fund or account created by this Ordinance shall be deemed at all times to be a part of such fund or account, and any income or loss due to an investment thereof shall be charged to the respective fund or account for which the investment was made except as otherwise provided in this Ordinance. 3. Investments in any fund or account shall be evaluated at least annually by the City or the Trustee, as may be appropriate. For the purpose of determining the amount in any fund or account, the City and the Trustee shall value all Investment Obligations credited to such fund or account at the price at which such Investment Obligations are redeemable by the holders or owners thereof at their option if so redeemable, or, if not so redeemable, at the lesser of (i) the cost of such Investment Obligations minus the amortization of any premium or plus the amortization of any discount thereon and (ii) the market value of such Investment Obligations, provided that Investment Obligations credited to the Series 1994 Debt Service Reserve Fund, if not so redeemable, shall be valued at the cost thereof minus the amortization of any premium or plus the amortization of any discount thereon. Section 14. Parity Indebtedness. 1. The City shall be entitled to issue and incur indebtedness secured on a parity with the Bonds to refund any outstanding Bonds or Parity Indebtedness or to finance the cost of constructing any future extensions, betterments or improvements to the System. The amount of any Parity Indebtedness may provide for the funding of interest for such period as the City may determine, the funding of a debt service reserve in such amount as the City may determine and the payment of certain expenses in connection with the issuance of such Parity Indebtedness. 2. Prior to issuing Parity Indebtedness the City shall obtain an Accountant's or Consulting Engineer's certificate to the effect that Net Revenues for each of the two fiscal years preceding the year in which such indebtedness is proposed to be issued were not less than one hundred twenty percent (120%) of the Maximum Principal and Interest Requirements on all 94058954 Ordinance No. 3829 September 20, 1994 Page 26 Bonds and any Parity Indebtedness then outstanding and the proposed Parity Indebtedness. In addition, the City may issue Parity Indebtedness to refund any outstanding Bonds or Parity Indebtedness without obtaining such certificate if the average annual Principal and Interest Requirements until final maturity for the Parity Indebtedness proposed to be issued are not greater than the average annual Principal and Interest Requirements until final maturity for the Bonds or the Parity Indebtedness proposed to be refunded. Net Revenues may be adjusted for the purpose of the test described above by including a Consulting Engineer's estimate of additional Net Revenues to be derived from existing customers of the System (or existing customers of any facilities to be acquired in connection with any extension, betterment or improvement to the System described in clause (ii) of this paragraph) resulting from (i) System Rate increases adopted before the Parity Indebtedness is issued and (ii) contemplated extensions, betterments, and improvements to the System to be financed in whole or in part with the proceeds of the Parity Indebtedness proposed to be issued or to be constructed during the then current or next succeeding fiscal year with any other available funds of the City (as if completed and placed in service). 3. Nothing in this Ordinance shall prohibit the City from issuing or incurring indebtedness secured by the Net Revenues subordinate to the Bonds and any Parity Indebtedness. Section 15. Insurance. While any Bonds are outstanding, the City covenants and agrees to insure and at all times keep insured, in the amount of the actual value thereof, by a responsible insurance company or companies authorized and qualified under the laws of the State to assume the risk thereof, all properties of the System other than water storage tanks, mains and lines for the transmission, distribution or collection of water or wastewater against loss or damage from fire, lightning, tornado, winds, strike, malicious damage, explosion, and against loss or damage from any other causes customarily insured against by private companies engaged in a similar type of business. In the event of loss, the proceeds of such insurance shall be applied solely toward the reconstruction, replacement, or repair of the System, and in such event the City shall, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement, and repair work. If such proceeds are more than sufficient for such purposes, the balance remaining shall be deposited to the credit of the Series 1994 Construction Fund, if needed, or the Series 1994 Bond Fund and, if such proceeds shall be insufficient for such purposes, the deficiency shall be supplied, first, from moneys in the Renewal and Replacement Fund and, second, from any available moneys in the Revenue Fund pursuant to subsection 4 of Section 8 hereof. 94058955 Ordinance No. 3829 September 20, 1994 Page 27 Section 16. Records. The City shall keep or cause to be kept proper books of accounts and records (separate from all other records and accounts of the City) in which complete and correct entries shall be made of all transactions relating to the operation of the System and its revenues. Such books shall be available for inspection by any registered owner of the Bonds at reasonable times and under reasonable circumstances. The City agrees to have these records audited by an Accountant at least annually, and a copy of the audit shall be delivered to any registered owner of the Bonds who shall request the same in writing and reimburse the City a reasonable amount for the cost thereof. Section 17. Other Covenants. The City hereby covenants that: (a) The City will promptly pay or cause to be paid the principal of and the interest on each and every Bond and all other indebtedness issued or incurred under the provisions of this Ordinance at the places, on the dates and in the manner specified herein and in the Bonds and such indebtedness any premium required for the retirement of the Bonds and such indebtedness by purchase or redemption, according to the true intent and meaning thereof. Such principal, interest and premium will be payable solely from the Net Revenues and the Net Revenues are hereby pledged to the payment of such principal of and interest and premium on the Bonds and such other indebtedness secured on a parity with the Bonds through the pledge of Net Revenues hereunder, and then such other indebtedness not so secured in the manner and to the extent hereinabove particularly specified. The City is not obligated to pay the principal of and interest and any premium on the Bonds and such other indebtedness except from the Net Revenues pledged hereunder, and such principal and interest shall not constitute an indebtedness of the City within the meaning of any constitutional or statutory debt limitation. (b) The City will construct the Improvements in accordance with plans and specifications theretofore approved by the City and otherwise as required by law. The City further covenants that any contract with any person for any work constituting a part of the Improvements shall provide for such performance and payment bonds or security in lieu thereof and for such retainages as shall be in compliance with the laws of the State and the normally established practices of the City from time to time in effect. (c) All Bonds paid or purchased either at or before maturity shall be canceled when such payment or purchase is made and held by the Trustee or the City and shall not be reissued. 94058956 Ordinance No. 3829 September 20, 1994 Page 28 (d) The System shall be operated on a fiscal year basis beginning January I and ending December 31 of each year. (e) The City will faithfully and punctually perform all duties with reference to the System required by the constitution and laws of the State, including the charging and collecting of reasonable and sufficient rates lawfully established for services rendered by the System, the segregating of the Gross Revenues as herein required, and the applying of Net Revenues to the respective funds and accounts herein created and referred to. (f) The City will maintain the System in good condition and operate the same in an efficient manner and at reasonable cost. (g) Except for water service for the purposes of street washing and fire fighting, none of the facilities or services afforded by the System shall be furnished without a charge being made therefor. In the event that the City or any department, agency, or instrumentality thereof shall avail itself of the facilities and services afforded by the System, the reasonable value of the service or facilities so afforded shall be charged against the City or such department, agency, or instrumentality and shall be paid for as the charges accrue, except as hereinabove otherwise provided. The revenues so received shall be deemed to be Gross Revenues and shall be used and accounted for in the same manner as the other Gross Revenues. (h) So long as any Bonds or Parity Indebtedness is outstanding, the City will not mortgage, pledge or otherwise encumber the System or any Gross Revenues and will not sell, lease or otherwise dispose of all or any substantial portion of the same except as provided in Section 14 of this Ordinance and except for such replacements, substitutions or other dispositions of properties of the System as shall be necessary or incidental to the efficient operation of the System as a revenue producing enterprise. (i) In the event the offices of the Mayor, City Clerk or Alderman of the City Council shall be abolished, or any two or more of such offices shall be merged or consolidated, or in the event the duties of a particular office shall be transferred to another office or officer, or in the event of a vacancy in any such office by reason of death, resignation, removal from office, or otherwise, or in the event any such officer shall become incapable of performing the duties of his office by reason of sickness, absence from the City, or otherwise, all powers conferred and all obligations and duties imposed upon such office or officer or body shall be performed by the office or officer or body succeeding to the principal function thereof, or by the office or officer or body upon whom such powers, obligations and duties shall be imposed by law. 94058957 Ordinance No. 3829 September 20, 1994 Page 29 (j) The City shall cause a Budget of proposed System capital costs and Operating Expenses to be prepared for each fiscal year of operation. The Budget for any fiscal year shall be completed no later than February 1 of said fiscal year and shall be available for inspection by the registered owner of any of the Bonds outstanding. (k) Periodically the City shall cause a Consulting Engineer to prepare a report on the status of the System's assets and compliance with the terms and provisions of this Ordinance and the 1992 Ordinance. Such report shall be prepared no less frequently than every three (3) years. The next such report shall be prepared prior to September 1, 1996. (1) The City covenants that it will not, and it will direct the Trustee not to, take any action that will, or fail to take any action, that failure will, cause the interest on Bonds to be includable in the gross income of the registered owners thereof for federal income tax purposes. Section 18. Event of Default and Acceleration of Maturities. If there be any default in the payment of the principal of, or premium, if any, or interest on, any Bonds or Parity Indebtedness, or if the City defaults in the performance of any of its other covenants or agreements contained in this Ordinance and such default shall continue for thirty (30) days after written notice specifying such default and requiring the same to be remedied shall have been given to the City by the Trustee, or if there shall be filed by the City a petition in bankruptcy, then upon the continuance of any such event (an "event of default") the Trustee may, and upon the written request of the registered owners of not less than twenty percent (20%) in aggregate principal amount of the Bonds then outstanding shall, by a notice in writing to the City, declare the principal of all of the Bonds then outstanding (if not then due and payable) to be due and payable immediately, and upon such declaration the same shall become and be immediately due and payable, anything contained in the Bonds or this Ordinance to the contrary notwithstanding; provided, however, that if at any time after the principal of the Bonds shall have been so declared to be due and payable, and before the entry of final judgment or decree in any suit, action or proceeding instituted on account of such event of default, or before the completion of the enforcement of any other remedy under this Ordinance, moneys shall have accumulated in the Series 1994 Bond Fund and each fund or account created for the payment of debt service or Parity Indebtedness sufficient to pay the principal of all matured Bonds and Parity Indebtedness and all arrears of interest, if any, upon all of the Bonds and Parity Indebtedness then outstanding (except the principal of any Bonds and Parity Indebtedness not then due and payable by their terms and the interest accrued on such Bonds and Parity Indebtedness since the last interest payment date), and the charges, compensation, expenses, disbursements, advances and liabilities of the Trustee and all other amounts then payable by the City hereunder shall have been paid or a sum sufficient to pay the same shall have been deposited with the Trustee, and every other event of default known to the Trustee in the observance or 94058958 Ordinance No. 3829 September 20, 1994 Page 30 performance of any covenant, condition, agreement or provision contained in the Bonds or this Ordinance (other than a default in the payment of the principal of such Bonds and Parity Indebtedness then due and payable only because of a declaration under this Section) shall have been remedied to the satisfaction of the Trustee, then and in every such case the Trustee may, and upon the written request of the registered owners of not less than twenty percent (20%) in aggregate principal amount of the Bonds not then due and payable by their terms and then outstanding shall, by written notice to the City, rescind and annul such declaration and its consequences, but no such rescission or annulment shall extend to or affect any subsequent default or impair any right consequent thereon. Section 19. Enforcement of Remedies. 1. Upon the happening and continuance of any event of default specified in Section 18 hereof, then and in every such case the Trustee may and upon the written request of the registered owners of not less than ten percent (10%) in aggregate principal amount of the Bonds then outstanding shall, proceed to protect and enforce the rights of the registered owners of the Bonds under the Authorizing Legislation or other applicable State law and this Ordinance by such suits, actions or special proceedings in equity or at law, either for the specific performance of any covenant or agreement contained herein or in aid or execution of any power herein granted or for the enforcement of any proper legal or equitable remedy, as the Trustee, being advised by counsel, shall deem most effectual to protect and enforce such rights. 2. Among such remedies the Trustee may, and upon the written request of the registered owners of not less than ten percent (10%) in aggregate principal amount of the Bonds then outstanding shall, apply in the proper action to a court of competent jurisdiction for the appointment of a receiver to administer the System on behalf of the City and the registered owners of the Bonds, with power to charge and collect (or by mandatory injunction or otherwise to cause to be charged and collected) rates sufficient to provide for the payment of Operating Expenses, to pay principal of and interest on the Bonds and Parity Indebtedness outstanding, and to apply the Gross Revenues in conformity with the provisions of the Authorizing Legislation and this Ordinance. When all defaults in principal, premium, and interest payments have been cured, the custody and operation of the System shall revert to the City. 3. It is hereby declared and intended that no one or more registered owners of the Bonds shall have any right in any manner whatever by his, her, or their action to affect, disturb, or prejudice the security of this Ordinance, or to enforce any right hereunder except in the manner herein provided, that all proceedings at law or in equity shall be instituted, had, and maintained in the manner herein provided and for the benefit of all registered owners of the outstanding Bonds, and that any individual rights of action or other right given to one or 94058959 Ordinance No. 3829 September 20, 1994 Page 31 more of such owners by law are restricted by this Ordinance to the rights and remedies herein provided. 4. No remedy conferred upon or reserved to the Trustee or to the registered owners of the Bonds is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or hereafter existing or available at law or in equity. 5. No delay or omission of the Trustee or any registered owners of the Bonds to exercise any right or power accrued upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy given by this Ordinance to the Trustee or the registered owners of the Bonds may be exercised from time to time and as often as may be deemed expedient. 6. The Trustee may, and upon the written request of the registered owners of not less than fifty percent (50%) in principal amount of the Bonds then outstanding shall, waive any default that shall have been remedied before the entry of final judgment or decree in any suit, action, or proceeding instituted under the provisions of this Ordinance or before the completion of the enforcement of any other remedy, but no such waiver shall extend to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. Section 20. Trustee. 1. Bank of Oklahoma, N.A., in the City of Tulsa, Oklahoma, is hereby appointed as Trustee under this Ordinance. The Trustee shall file with the City a written acceptance of the duties and obligations and agreement to execute the trusts imposed upon it by this Ordinance, but only upon the terms and conditions set forth in this Section and subject to the provisions of this Ordinance, to all of which the registered owners of the Bonds agree. Unless an event of default of which the Trustee shall have notice pursuant to the provisions of this Ordinance has occurred and is continuing, the Trustee shall not be responsible except for the performance of those duties that are expressly set forth in this Ordinance, and no implied covenant or duty shall be read into this Ordinance against the Trustee. 2. The Trustee shall be responsible for the registration, registration of transfer and exchange of Bonds within a reasonable time according to then current commercial standards and for the timely payment of principal, interest and any redemption premium with respect to the Bonds. The Trustee such shall keep the books of the City for the registration, registration of transfer, exchange and payment of the Bonds as provided in this Ordinance. 94058960 Ordinance No. 3829 September 20, 1994 Page 32 3. The Trustee shall be under no obligation to institute any suit, or to take any remedial proceeding under this Ordinance, or to enter any appearance or in any way defend in any suit in which it may be made defendant, or to take any steps in the execution of the trusts hereby created or in the enforcement of any rights and powers hereunder, until it shall be indemnified to its satisfaction against any and all costs and expenses, outlays and counsel fees and other reasonable disbursements, and against all liability; the Trustee may, nevertheless, begin suit, or appear in and defend suit, or do anything else in its judgment proper to be done by it as such Trustee, without indemnity, and in such case the City shall reimburse the Trustee for all costs and expenses, outlays and counsel fees and other reasonable disbursements properly incurred in connection therewith, provided that the Trustee will inform the City of any such action that might require the City to reimburse the Trustee before commencing such action and that such reimbursement shall be subject to the provisions of the second paragraph of subsection 6 of this Section. If the City shall fail to make such reimbursement, the Trustee may reimburse itself from any moneys in its possession under the provisions of this Ordinance and shall be entitled to a preference therefor over any of the Bonds outstanding hereunder. 4. The Trustee shall be under no obligation to effect or maintain insurance or to renew any policies of insurance or to inquire into the sufficiency of any policies of insurance carried by the City or to report, or make or file claims or proof of loss for, any loss or damage insured against or which may occur, or to keep itself informed or advised of the payment of any taxes or assessments, or to require any such payment to be made. The Trustee shall have no responsibility in respect of the validity or sufficiency of this Ordinance or the due execution or acknowledgment thereof, or in respect of the validity of the Bonds or the due execution or issuance thereof. The Trustee shall be under no obligation to see that any duties herein imposed upon the City, any Trustee or any party other than itself, or any covenants herein contained on the part of any party other than itself to be performed, shall be done or performed, and the Trustee shall be under no obligation for failure to see that any such duties or covenants are so done or performed. 5. The Trustee shall not be liable or responsible because of the failure of the City or of any of its employees or agents to make any collections or deposits or to perform any act herein required of the City or because of the loss of any moneys arising through the insolvency or the act or default or omission of any other depository in which such moneys shall have been deposited under the provisions of this Ordinance. The Trustee shall not be responsible for the application of any of the proceeds of the Bonds or any other moneys deposited with it and paid out, withdrawn or transferred hereunder if such application, payment, withdrawal or transfer shall be made in accordance with the provisions of this Ordinance. The immunities and exemptions from liability of the Trustee hereunder shall extend to its directors, officers, employees and agents. 94058961 Ordinance No. 3829 September 20, 1994 Page 33 6. Subject to the following paragraph, the City shall, from moneys lawfully available therefor, pay to the Trustee reasonable compensation for all services performed hereunder and also all its reasonable expenses, charges and other disbursements and those of its attorneys, agents and employees incurred in and about the administration and execution of the trusts hereby created and the performance of its powers and duties hereunder and, to the extent permitted by law and from moneys lawfully available therefor, shall indemnify and save the Trustee harmless against any liabilities which it may incur in the exercise and performance of its powers and duties hereunder. If the City shall fail to make any payment required by this subsection, the Trustee may make such payment from any moneys in its possession under the provisions of this Ordinance and shall be entitled to a preference therefor over any of the Bonds outstanding hereunder. The City shall not be required to indemnify the Trustee against any liabilities which the Trustee may incur as a result of negligent or wrongful acts or omissions of the Trustee. The City shall pay to the Trustee compensation for its services as described in this subsection in accordance with a separate agreement between the City and the Trustee, provided that such compensation, together with all expenses, charges and other disbursements of the Trustee and its attorneys, agents and employees and all reimbursements to the Trustee for all costs and other disbursements as described in subsection 3 of this Section, shall not exceed $2,200 annually without the prior written approval of the City, which approval shall not be unreasonably withheld. If the Trustee wishes to consult with or retain counsel for any purpose hereunder whose anticipated fees, together with all other compensation, disbursements and reimbursements of the Trustee and its attorneys, agents and employees to be paid by the City hereunder, shall exceed $12,200 annually, then such counsel shall have to be acceptable to the City and such fees shall have to be approved by the City as described above. 7. It shall be the duty of the Trustee, on or before the 10th day of each month after the month in which the Bonds are delivered, to file with the City a statement setting forth in respect of the preceding calendar month: (a) the amount withdrawn or transferred by it and the amount deposited with it on account of each fund and account held by it under the provisions of this Ordinance, (b) the amount on deposit with it at the end of such month to the credit of each such fund and account, (c) a brief description of all obligations held by it as an investment of moneys in each such fund and account, 94058962 Ordinance No. 3829 September 20, 1994 Page 34 (d) the amount applied to the purchase or redemption of Bonds under the provisions of this Ordinance and a description of the Bonds or portions of Bonds so purchased or redeemed, and (e) any other information that the City may reasonably request. All records and files pertaining to each such fund and account in the custody of the Trustee hereunder shall be open at all reasonable times to the inspection of the City and its agents and representatives and the City may make copies thereof. 8. The Trustee additionally shall be responsible for the preparation and timely distribution of any and all forms and reports required by law to all Bond holders, the State and the Internal Revenue Service in connection with the payment to the Bond holders of interest on the Bonds. 9. Upon the redemption of any or all of the Bonds, the Trustee shall be responsible for physically collecting and destroying the redeemed Bonds and issuing to the City the Trustee's certificate of such destruction. 10. In case at any time it shall be necessary or desirable for the Trustee to make any investigation respecting any fact preparatory to taking or not taking any action or doing or not doing anything as such Trustee, and in any case in which this Ordinance provides for permitting or taking any action, the Trustee may rely upon any certificate or other instrument required or permitted to be filed with it under the provisions of this Ordinance, and any such instrument shall be evidence of such fact to protect the Trustee in any action that it may or may not take or in respect of anything it may or may not do, in good faith, by reason of the supposed existence of such fact. Except as otherwise provided in this Ordinance, any request, notice, certificate or other instrument from the City to the Trustee shall be deemed to have been signed by the proper party or parties if signed by the Mayor of the City or by any two officers or employees of the City who shall be designated by the City by resolution for such purpose and the Trustee may accept and rely upon a certificate signed by the City Clerk of the City regarding any action taken by the City. 11. Except upon the happening of any default in the payment of the principal of, or premium, if any, or interest on the Bonds or any Parity Indebtedness, the Trustee shall not be obliged to take notice or be deemed to have notice of any event of default hereunder, unless specifically notified in writing of such event of default by the registered owners of not less than ten percent (10%) in aggregate principal amount of the Bonds then outstanding. 94058963 Ordinance No. 3829 September 20, 1994 Page 35 12. The Trustee and its directors, officers, employees or agents may in good faith buy, sell, own, hold and deal in any of the Bonds and may join in any action that any registered owner of the Bonds may be entitled to take. 13. The Trustee shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, in good faith, and in accordance with the terms of this Ordinance, upon any resolution, order, notice, request, consent, waiver, certificate, statement, affidavit, requisition, bond or other paper or document that it shall in good faith believe to be genuine and to have been adopted or signed by the proper board or person or to have been prepared and furnished pursuant to any of the provisions of this Ordinance, or upon the written opinion of an attorney, engineer or accountant believed by the Trustee to be qualified in relation to the subject matter, and the Trustee shall be under no duty to make any investigation or inquiry regarding any statement contained or matters referred to in any such instrument. The Trustee shall not be under any obligation to see to the recording or filing of this Ordinance or otherwise to the giving to any person of notice of the provisions hereof. No permissive right of the Trustee under this Ordinance to take any action shall impose any duty upon the Trustee to take such action, and the Trustee shall not be liable to the registered owners of any Bonds or to the City or any other person for failing to take any such action pursuant to any such permissive right. 14. The Trustee may resign and thereby become discharged from the trusts hereby created, by notice in writing to be given to the City and published once in a daily newspaper of general circulation published in the City and in a daily newspaper of general circulation or a financial journal published in the Borough of Manhattan, City and State of New York, not less than sixty (60) days before such resignation is to take effect, but such resignation shall take effect immediately upon the appointment of a new Trustee hereunder, if such new Trustee shall be appointed before the time limited by such notice and shall then accept the trusts hereof. 15. The Trustee may be removed at any time by an instrument or concurrent instruments in writing, executed by the registered owners of not less than a majority in principal amount of the Bonds then outstanding and filed with the City. A photostatic copy of each such instrument shall be delivered promptly by the City to the Trustee. The Trustee may also be removed at any time for any breach of trust or for acting or proceeding in violation of, or for failing to act or proceed in accordance with, any provision of this Ordinance with respect to the duties and obligations of the Trustee, by any court of competent jurisdiction, upon the application of the City or the registered owners of not less than five percent (5%) in aggregate principal amount of the Bonds then outstanding. 94058964 Ordinance No. 3829 September 20, 1994 Page 36 16. If at any time hereafter the Trustee shall resign, be removed, be dissolved or otherwise become incapable of acting, or the bank or trust company acting as Trustee shall be taken over by any governmental official, agency, department or board, the position of Trustee shall thereupon become vacant. If the position of Trustee shall become vacant for any of the foregoing reasons or for any other reason, the City shall appoint a Trustee to fill such vacancy. The City shall cause a notice of any such appointment by it to be mailed by first-class mail, postage prepaid to all registered owners of the Bonds at their addresses as they appear on the registration books. At any time within one year after any such vacancy shall have occurred, the registered owners of a majority in principal amount of the Bonds then outstanding, by an instrument or concurrent instruments in writing, executed by such owners and filed with the City, may appoint a successor Trustee, which shall supersede any Trustee theretofore appointed by the City. Photostatic copies of each such instrument shall be delivered promptly by the City to the predecessor Trustee and to the Trustee so appointed by such owners. If no appointment of a successor Trustee shall be made pursuant to the foregoing provisions of this subsection, the registered owner of any Bond outstanding hereunder or any retiring Trustee may apply to any court of competent jurisdiction to appoint a successor Trustee. Such court may thereupon, after such notice, if any, as such court may deem proper and prescribe, appoint a successor Trustee. Any Trustee hereafter appointed shall be a bank or trust company in good standing duly authorized to exercise corporate trust powers and subject to examination by federal or State authority and shall maintain a reported capital and surplus aggregating not less than twenty-five million dollars ($25,000,000). 17. Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor, and also the City, an instrument in writing accepting such appointment hereunder, and thereupon such successor Trustee, without any further act, shall become fully vested with all the rights, immunities, powers and trusts, and subject to all the duties and obligations, of its predecessor; but such predecessor shall, nevertheless, on written request of its successor or of the City, and upon payment of the expenses, charges and other disbursements of such predecessor that are payable pursuant to the provisions of this Section, execute and deliver an instrument transferring to such successor Trustee all the rights, immunities, powers and trusts of such predecessor hereunder; and every predecessor Trustee shall deliver all property and moneys held by it hereunder to its successor. Should any instrument in writing from the City be required by any successor Trustee for more fully and certainty vesting in such Trustee the rights, immunities, powers and trusts hereby vested or 94058965 Ordinance No. 3829 September 20, 1994 Page 37 intended to be vested in the predecessor Trustee, any such instrument in writing shall and will, on request, be executed, acknowledged and delivered by the City. Notwithstanding any of the foregoing provisions of this Section, any bank or trust company having power to perform the duties and execute the trusts of this Ordinance and otherwise qualified to act as Trustee hereunder with or into which the bank or trust company acting as Trustee may be merged or consolidated, or to which the assets and business of such bank or trust company may be sold, shall be deemed the successor of the Trustee. Section 21. Sale of Bonds. 1. All actions heretofore taken by the City and its officers, in connection with the offer and sale of the Bonds, including the preparation and distribution of the Preliminary Official Statement and the preparation of the Official Statement, are hereby in all respects ratified and approved. The Official Statement is hereby approved in substantially the form presented to the Council for its consideration and the Mayor of the City is hereby authorized and directed to execute, deliver and permit the distribution of the Official Statement with such changes as he deems advisable in the name of and on behalf of the City, his execution and delivery of the Official Statement to constitute conclusive evidence of his approval of any such changes. 2. The City hereby represents that it reasonably expects that it and all subordinate entities thereof will not issue more than $10,000,000 of tax-exempt obligations (not counting private -activity bonds except for qualified 501(c)(3) bonds as defined in the Code) during calendar year 1994. In addition, the City hereby designates each of the Bonds as a "qualified tax-exempt obligation" for the purposes of the Code. 3. There is hereby authorized and directed the acceptance of the offer by the Purchaser, pursuant to the Bond Purchase Agreement, to purchase the Bonds at a price of $5,425,750 (98.65%) of the principal amount thereof), plus accrued interest thereon from October 1, 1994 to the date of delivery thereof. The Bond Purchase Agreement is hereby approved in substantially the form exhibited at this meeting, and the Mayor of the City is hereby authorized to execute, acknowledge and deliver the Bond Purchase Agreement and the City Clerk of the City is hereby authorized to attest the same and to affix the seal of the City thereto. Any changes to the Bond Purchase Agreement may be approved by any officers of the City executing such document, their execution and delivery to constitute conclusive evidence of such approval. Section 22. Delivery Instructions. 1. When the Bonds have been executed by the facsimile signatures of the Mayor and City Clerk of the City and the seal of the City imprinted thereon, as herein provided, they shall be delivered to the Trustee, which shall authenticate 94058966 Ordinance No. 3829 September 20, 1994 Page 38 them and deliver them to the Purchaser upon the payment of the purchase price, as specified by written instructions of the Mayor or his designee. 2. The proceeds of the Bonds shall be applied as follows: (a) There shall be deposited into the Series 1994 Debt Service Reserve Fund moneys sufficient to equal the Reserve Fund Requirement. (b) There shall be deposited into the Series 1994 Bond Fund the amount of accrued interest on the Bonds paid by the Purchaser. (c) There shall be deposited into the Series 1994 Construction Fund the balance of the Bond proceeds. Section 23. Supplemental Ordinances. 1. The provisions of this Ordinance shall constitute a binding contract among the City and the registered owners of the Bonds issued hereunder. The City will at all times strictly adhere to the terms and provisions hereof and fully discharge all of its obligations hereunder. 2. The City may, without consent of the registered owners of the Bonds, adopt ordinances supplemental hereto as may be necessary or desirable: (a) to cure any ambiguity or formal defect or omission in this Ordinance; (b) to grant to or confer on the registered owners of the Bonds any additional rights, remedies, powers or authority that may lawfully be granted to or conferred on them; (c) to add to the covenants and agreements of the city in this Ordinance other covenants and agreements to be observed by the city; (d) to more precisely identify the revenues pledged under this Ordinance; (e) to pledge additional revenues under this Ordinance; or (f) to provide for the issuance of Parity Indebtedness. 94058967 Ordinance No. 3829 September 20, 1994 Page 39 3. The registered owners of not less than fifty-one percent (51 %) in aggregate principal amount of the Bonds outstanding shall have the right, from time to time, to consent to and approve the adoption by the City of such ordinances supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to, or rescinding, in any particular, any of the terms or provisions contained in this Ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any Bond, (b) a reduction in the principal amount of any Bond or the rate of interest thereof, (c) the creation of a pledge of revenues other than as created or permitted by this Ordinance, (d) a privilege or priority of any Bond or Bonds over any other Bond or Bonds, or (e) a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental ordinance. 4. In the event the City shall adopt any ordinance supplemental to this Ordinance a copy thereof shall be mailed, at least fifteen (15) days prior to adoption, by first class mail postage prepaid, to the registered owner of each Bond outstanding at his or her address appearing in the registration books of the City maintained by the Trustee. Section 24. Publication. The City Clerk of the City is hereby directed to publish this Ordinance once in The Northwest Arkansas Times, which is hereby found and declared to be a newspaper published and of general circulation in the City of Fayetteville, Arkansas. Section 25. Defeasance. 1. If, (a) when the Bonds secured hereby shall have become due and payable in accordance with their terms or shall have been duly called for redemption or (b) irrevocable instructions to call the Bonds for redemption or to pay the Bonds at their respective maturities or to effect some combination of such payment and redemption shall have been given by the City to the Trustee, the whole amount of the principal and the interest and premium, if any, so due and payable upon all of the Bonds then outstanding shall be paid or sufficient moneys, or obligations described in clause (i) of the definition of "Government Obligations" herein ("Defeasance Obligations") the principal of and the interest on which when due will provide sufficient moneys, shall be held by the Trustee for such purpose under the provisions of this Ordinance, and provision shall also be made for paying all other sums payable hereunder by the City, then and in that case the right, title and interest of the Trustee in the Net Revenues, funds and accounts mentioned in this Ordinance shall thereupon cease, determine and become void, and the City shall have no obligation with respect to such Bonds except for the payment of the principal of, redemption premium, if any, and interest thereon solely from the moneys or Defeasance Obligations deposited pursuant to this Section, and the Trustee in such case, on demand of the City, shall release this Ordinance and shall execute such documents to evidence such release as may be reasonably required by the City, and shall turn 94058968 Ordinance No. 3829 September 20, 1994 Page 40 over to the City any surplus in any fund and account in the Bond Fund and all balances remaining in any other funds and accounts other than moneys held for the redemption or payment of Bonds or the interest thereon for application to any lawful purposes of the City as the Council shall determine; otherwise this Ordinance shall be, continue and remain in full force and effect; provided, however, that in the event Defeasance Obligations shall be deposited with and held by the Trustee or other bank, trust company or other appropriate financial institution, as hereinabove provided, and in addition to the requirements regarding redemption set forth in this Ordinance, the Trustee shall within thirty (30) days after such Defeasance Obligations shall have been deposited with it, cause a notice signed by the Trustee to be published once in a daily newspaper of general circulation published in the City, and in a daily newspaper of general circulation or a financial journal published in the Borough of Manhattan, City and State of New York, setting forth (i) the date or dates, if any, designated for the redemption of the Bonds or, if some of the outstanding Bonds are not being redeemed prior to their maturities or mandatory redemption dates, a statement to the effect that such Bonds are being paid at maturity, (ii) a description of the Defeasance Obligations so held by the Trustee or other bank, trust company or other appropriate financial institution, and (iii) that this Ordinance has been released in accordance with the provisions of this Section. 2. All moneys and obligations held by the Trustee or other bank, trust company or other appropriate financial institution, pursuant to this Section shall be held in trust, and the principal of and interest on said obligations when received, and said moneys, applied to the payment, when due, of the principal of, the interest and the premium, if any, on the Bonds payable therefrom. Section 26. Miscellaneous. 1. The Mayor, the City Clerk and other officers of the City are hereby empowered to execute and deliver all documents, certificates and other instruments that may be necessary or appropriate under the terms of the Bond Purchase Agreement or to effect the purposes of this Ordinance. 2. This Ordinance shall not create any right of any kind and no right of any kind shall arise hereunder pursuant to it until the Bonds authorized hereby are issued and delivered. 3. The provisions of this Ordinance are hereby declared to be severable and if any such provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of this Ordinance. 4. All resolutions or ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. 94058969 Gidinance No. 3829 September 20, 1994 Page 41 Section 27. Emergency Clause. It is hereby ascertained and declared that, in order to alleviate immediate hazards to the health, safety, and welfare of the City, its inhabitants, and their property by insuring the continued operation of the System on an adequate and efficient basis, the making of the Improvements must be accomplished and facilitated by the issuance of the Bonds. 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 enforced from and after its adoption. PASSED AND APPROVED this 20th day of September , 1994. APPROVED• By: Fred Hanna, Mayor ATTEST: By: Traci Paul, City Clerk (SEAL) 94058970 SCHEDULE A City of Fayetteville, Arkansas I IC�OFILU Water & Sewer Revenue Bonds ('A' Rating Assumed) ED Series 1994 Coupon Total Year Rate Principal Interest Debt Service 1995 4.05% $315,000 $258,370 $573,370 1996 4.45% 290,000 283,463 573,463 1997 4.70% 305,000 270,557 575,557 1998 4.90% 320,000 256,223 576,223 1999 5.05% 335,000 240,542 575,542 2000 5.15% 350,000 223,625 573,625 2001 5.25% 370,000 205,600 575,600 2002 5.35% 390,000 186,175 576,175 2003 5.45% 410,000 165,310 575,310 2004 5.55% 430,000 142,965 572,965 2005 * 6.00% 455,000 119,100 574,100 2006 * 6.00% 480,000 91,800 571,800 2007 * 6.00% 510,000 63,000 573,000 2008 * 6.00% 540,000 32,400 572,400 $5,500,000 $2,539,130 $8,039,130 Accrued Interest (19,748) (19,748) Total $5,500,000 $2,519,382 $8,019,382 Dated 10/1 /94 with Delivery of 10/25/94 Average Coupon Discount Rate 5.665522 98.65% * Denotes Sinking Fund Maturity \DEBTSERV NOTE SCHEDULE A WAS CORRECTED. WE HAVE REPLACED THE PREVIOUS VERSION WITH THE NEW VERSION, MARKED "MICROFILMED." THE CORRECTED VERSION OF SCHEDULE A HAS NOT BEEN FILED AT THE COURT HOUSE. THE INCORRECT SCHEDULE A, WHICH IS ON FILE WITH THE ORDINANCE AT THE COURT HOUSE, FOLLOWS THIS NOTE. r SCHEDULE A City of Fayetteville, Arkansas Water & Sewer Revenue Bonds ('A' Rating Assumed) Series 1994 Coupon Year Rate 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Accrued Interest Total 4.05% 4.45% 4.70% 4.90% 5.05% 5.15% 5.25% 5.35% 5.45% 5.55% 6.00% 6.00% 6.00% 6.00% Principal $315,000 290,000 305,000 320,000 335,000 350,000 370,000 390,000 410,000 430,000 455,000 480,000 510,000 540,000 $5,500,000 Interest $258,370 283,463 270,558 256,223 240,543 223,625 205,600 186,175 165,310 142,965 119,100 91,800 63,000 32,400 $2,539,130 (19,748) Total Debt Service $573,370 573,463 575,558 576,223 575,543 573,625 575,600 576,175 575,310 572,965 574,100 571,800 573,000 572,400 $8,039,130 (19,748) $5,500,000 $2,519,382 $8,019,382 Dated 10/1/94 with Delivery of 10/25/94 Average Coupon Discount Rate 5.665522 98.65% * Denotes Sinking Fund Maturity 94058971 A �§,frpKoll CircuitClerkanCa.d pffldo Recorder for washington Count sag, do hereby certify that this in- uhument was filed for record in my office m indicated hereon and the same is duly recorded with the acknowledgement atd certificate thereon in Record Book and Page as indicated thereon. hereume IN WRNE55 WHEREOF, I hove at my bond and affixed the seal of sold Cou„ on the data indicated hanca"' Nma Kolln+ayct Ortult Clark and t4f1do Rout" l 9W> STATE OF ARKANSAS .--Li-+p• •'. ' - County of Washington JI r i�� herebycer" ti tify that I sns the publisher of TFIE NOR - § • a newspaper having a second class mailing TNWFST ARKANSAS TAMES, a daily five columns each, published at a feed place of business anilege, and being d at a fixed dail m pages of .-t -'",'°�} °j �,: continuously in the City of Fayetteville, County of Wad n to Y) orervaLt .,F aperiod of twelve months, c rculated and distributed from an established place e of business •. ; .,:. "'`'^' tosubscribersandreadersgeaaallyofallclassesinWeCitymdCountyforadefmitep>;a for each copy, or a fixed price per annum, which price was fixed at what is considered the Y' E value of the publication, based upon the news value and service value it contains, that at —.... ____ 1: „s,,.. least fifty percent of the subscribers thereto have paid cash for Weir subscriptions to We • - newspaper or its agents or through recd gnized news dealer Over a period of at least s• ix months; and that the said DOwsPaPapublishes an averageofmore than forty percent news Matta• I further certify that the legal notice hereto attached in the matter of On Al e _t.. -.., n was published in the regular daily issue of said newspaper for consecutive insertions as follows: The first insertion on the n -dayof .�' 19 _l� the second insertion ou the.d... -e _ - arf:t... as day of t 1� I _ _ ♦ ... ♦ .�yta Y. \Ai, -•,M,e_l, _. ... 19 .....-- • th yy the Child lnaerti0n On WO �"• Y of « tea'-. .vw.. nn� M ..,ya' Raiv- WN' _..... n .•- rF". A3 n 19 . +•>'+r.. ,,:,,;r. and the fourth insertion on the ...<. sz ,.. ay.: ,may. _...,: day of 19 ,r, to �.♦�-a S' i �` itB♦.' .-� .4 :e\:a - a7t r., • ' $rr�s�i �' 9� Y Yx'�r. ,nyµ �'A'F�t',�.• .:Mii''t \ �. � �' � ,✓fJ •:,t +:., q( f`Rl[. a. i.�y `•� i-!�'ISTR u l��. .i\t '♦., ((//�� i•* K i3•. ^'Vat♦ _ ..4_ .- :. ♦1t M i1... a. v Ni�p• dr Ss h lit Publisher / General Manager ,' y u i ft tv a:•K2' Cl L „-_ .%- a :.a.. ♦. F t '-3. , r :;i `♦a♦>.Ci MCI ♦J ':♦ % S� -.. La' • `.,,• .a• • ! : t. V. i`l _ x Sworn to and subscribed before me on this day of .era «w .- .. •Yin Y _ A .. MY Commission Expires: ' - - ,... nq nl -0I I!j ",1, Notary Public Fees forPrinting $ Cost of Proof S �v Total S Report on Operations of the Water and Sewer Systems FOR THE City of Fayetteville, Arkansas 1996 r.. :LAC VEA CH I I H I I [I I [] H H I I I I I I I 0 BLACK & VEATCH �vtICROFILMED 8400 Ward Parkway, P.O. Box No. 8405, Kansas Cry, Missouri 64114, (913)339-2000 August 28, 1996 Honorable Fred Hanna Mayor City of Fayetteville 113 West Mountain Fayetteville, Arkansas 72701 Dear Mayor Hanna: In accordance with our agreement, we are submitting our Report on Operations of the Water and Sewer Systems" for the City of Fayetteville. The report includes the results of an engineering evaluation, financial analysis, and an evaluation of compliance with the provisions of Ordinances Nos. 3638 and 3829, which authorized the Water and Sewer Refunding and Improvement Revenue Bonds, Series 1992 and the Water and Sewer Revenue Bonds, Series 1994, respectively. We appreciate the opportunity to be of service to the City of Fayetteville. lmc Very truly yours, BLACK & VEATCH Blaine W. Bickel I I I I I I I I Historical data presented in this report has been provided by the City of Fayetteville, Arkansas. Black & Veatch has not conducted detailed verification tests of the data. In the preparation of the forecast of future operations summarized in this report, Black & Veatch has made ' certain assumptions with respect to conditions, events and circum- stances which may occur in the future. The methodology utilized in performing the analyses follows generally accepted practices for such forecasts. While Black & Veatch believes the assumptions are reasonable and the methodology valid, actual results may differ materially from those forecast, as influenced by the conditions, events and circumstances which actually occur. I LI J H H I I Contents I I I I I rJ iI H I I I I I I I I Introduction Purpose Scope Engineering Evaluation Introduction Wastewater Treatment City/OMI Relationship Wastewater Collection System Water Distribution System Engineering Findings Financial Analysis - Water Utility Revenue Water Sales Revenue Under Existing Rates Other Water Revenue Water Utility Revenue Requirements Operation and Maintenance Expenses Water Utility Major Capital Improvements Water Utility Minor Capital Expense Water Utility Debt Service Requirements Recommended Water Revenue Adjustments Capital Projects Funding Wastewater Utility Revenue Sewer Sales Revenue Under Existing Rates Other Wastewater Revenue Wastewater Utility Revenue Requirements Operation and Maintenance Expenses Wastewater Utility Major Capital Improvements Wastewater Utility Minor Capital Expense Wastewater Utility Debt Service Requirements Recommended Wastewater Revenue Adjustments Capital Projects Funding Combined Water and Wastewater Utilities Compliance Issuance of Revenue Bonds Establishment of Funds 3 3 3 5 6 8 9 10 10 10 14 14 14 17 17 17 19 20 20 20 24 24 24 27 27 27 29 29 32 32 32 I TC-1 Contents (Continued) Revenue Fund 32 Operation and Maintenance Fund 33 Bond Fund 33 Renewal and Replacement Fund 33 Debt Service Reserve Fund 34 Construction Fund 34 Insurance 34 Other Covenants 34 TC-2 Contents (Continued) List of Tables Page Table W-1 Historical and Projected Number of Accounts Ii Table W-2 Historical and Projected Billed Usage 12 Table W-3 Historical and Projected Revenues 13 Table W-4 Summary of Historical and Projected Operation and Maintenance Expense 15 Table W-5 Proposed Major Capital Improvement Program Expenditures 16 Table W-6 Operating Fund Cash Flow Analysis 18 Table S-1 Historical and Projected Number of Accounts 21 Table S-2 Historical and Projected Billed Usage 22 Table S-3 Historical and Projected Revenues 23 Table S-4 Summary of Historical and Projected Operation and Maintenance Expense 25 Table S-5 Proposed Major Capital Improvement Program Expenditures 26 Table S-6 Operating Fund Cash Flow Analysis 28 Table C- 1 Combined Utility - Operating Fund Cash Flow Analysis 30 Table C-2 Insurance Coverage 36 TC-3 I 7 Introduction 1 The City of Fayetteville issued Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1992, dated August 15, 1992, to refund the City's Water and Sewer Revenue Refunding Bonds, Series 1985 and to provide for improvements to the water and sewer ' system. Ordinance No. 3638, which authorized the refunding and improvement issue, requires that a report on the status of the water and wastewater system's assets and compliance with the ' terms and provisions of the Ordinance be periodically prepared by a Consulting Engineer. The City issued Water and Sewer Revenue Bonds, Series 1994, dated September 20, 1994, as a parity issue to the Series 1992 Bonds. Ordinance 3829 authorized the issuance of the Series 1994 Bonds, and it also requires a periodic Consulting Engineer's report to be completed. I I I I I Purpose The purpose of this report is to present the results of our analysis of the water and wastewater systems of the City of Fayetteville in accordance with the provisions of Ordinance No. 3638 and repeated in Ordinance No. 3829, which states in part: Periodically the City shall cause a Consulting Engineer to prepare a report on the status of the System's assets and compliance with the terms and provisions of the Ordinance. Such report shall be prepared no less frequently than every three (3) years and the first such Consulting Engineer's report shall be prepared prior to September 1, 1993. This report constitutes the second Report on Operations required by the Ordinances. IScope I I I I I This report includes the results of an engineering evaluation, financial analysis, and an evaluation of compliance with the provisions of the bond ordinances. The engineering evaluation consists of onsite surveys of existing above ground or observable water and wastewater facilities, including interviews of operation and maintenance personnel; review of operation and maintenance records and techniques to analyze the effect on facility performance, maintenance, and reliability; and review of the major capital improvement programs for the water and wastewater systems. The financial analysis section includes projection of customers served, water and wastewater volumes, water and wastewater revenues, and water and wastewater revenue requirements. A projected cash flow statement for a five year study period has been prepared to identify any revenue deficiencies, show the timing and magnitude of required revenue [1 1 increases, and determine the optimum combination of cash and debt financing required to meet 1 total revenue requirements. The section on compliance with the bond ordinances includes an evaluation of the 1 adequacy of projected revenues to meet required coverage tests, verification that all funds required by the ordinances have been established and that fund balances are in compliance with requirements, review of insurance coverage, verification that no service is being provided 1 without charge, and review of records and books of accounts for compliance with the bond ordinances. 1 I I I I I I I I I I [1 I 1 2 I I I I I I I I I P1 I Ti I I I I I Engineering Evaluation Introduction In conjunction with other elements of this report on operations for water and wastewater systems of the City of Fayetteville, Black & Veatch has conducted an engineering evaluation of the City's operation and maintenance procedures for the wastewater treatment facilities, the wastewater collection system, the water distribution system, and the water pump stations. The information for this section was obtained from on -site facility inspections conducted on July 16 and July 17, 1996, telephone interviews with representatives from the Beaver Water District, Arkansas Department of Health, and the Environmental Protection Agency; and personal interviews with City employees and Operations Management International, Inc. (OMI) personnel. Wastewater Treatment The City is responsible for treating waste discharged into its sanitary sewer system. The waste must be treated sufficiently to satisfy the National Pollutant Discharge Elimination System (NPDES) permit issued for the City's Paul R. Noland wastewater treatment plant (WWTP). The WWTP is located on 500 acres, which includes a 170 million gallon storage pond. Influent wastewater receives the following unit processes: • Screening • Grease and grit removal • Primary clarification • Aeration and activated sludge treatment • Secondary clarification • Sand filtration • Chlorination The sludge produced at the WWTP is processed in the following manner: • Gravity thickening • Aerobic digestion • Land application Sludge storage basins are also utilized to assist with the treatment process. Sludge is applied to 524 acres of bermuda grass which is harvested and sold on a regular basis. Currently, OMI is contracted to operate the WWTP, lift stations, pretreatment program, odor control equipment, and sludge processing facilities. In addition to wastewater operations, OMI is responsible for operating the Supervisor Control and Data Acquisition (SCADA) system at 12 potable water pump stations and/or storage reservoirs. OMI has continuously operated the 3 I I WWTP since it was constructed in 1988. The original contract has expired and was renewed on ' August 14, 1994 without interruption of service. The current contract expires December 31, 1999, but contains two successive five year renewal options. ' Two outfalls are permitted for discharge by the City. Outfall 1 discharges to the White River, which flows into Beaver Lake. Beaver Lake is used for recreation and as a source of raw drinking water for several communities, including Fayetteville. Outfall 2 discharges into Mud Creek, which flows into the Illinois River, a scenic waterway. Because the WWTP discharges to rivers that have other significant users, public scrutiny surrounds effluent quality. The following sections describe some significant issues associated with the City's wastewater treatment and sludge disposal operations. Odor Management. Historically, odor complaints have been an issue to residents living in the vicinity of the WWTP. The City contracted with a consultant in 1992 to evaluate options and ' recommend an odor control strategy. After consideration and review by the City and OMI, an odor control strategy was initiated and completed in 1996. The result was the installation of aluminum domes over three of the sludge digestors, with an associated chemical odor control system at a cost of approximately $1,000,000. OMI has operated a "Neighborhood Partners" program that involves the community with the odor management strategy. A review of the minutes of the meetings indicate that this community involvement program is effective. The number of odor complaints dropped ' substantially and the odor control system was reported to be operating satisfactorily. The City has taken appropriate action on the odor control situation. Metal Discharges. It was reported that the WWTP has received metal discharges from ' industrial customers. Nickel is the metal most commonly detected in the system, but other metals have also been detected. Metal discharge is generally the result of an industrial operation and is best addressed at the source through the industrial pretreatment program. Metals may impact the treatment process and, if not removed, may result in a permit violation. The City had a violation of suspended solids and ammonia due to excessive metal in October 1994. Another ' concern associated with metals is their impact on land applying sludge, because metals are persistent and remain in the soil. This has caused some operational difficulties, but no long-term ' effects have been reported. OMI has identified an industrial customer who is predominately responsible for metal ' discharges into the system. Appropriate action has been taken, including a cease and desist order that shut -down this industrial customer's operation for a short period of time. OMI personnel stated that metal concerns have abated somewhat due to the stance taken with this particular 1 1 4 IL industrial customer. It appears that the City will be able to address metal concerns through the ' Industrial Pretreatment Program. Plant Capacity. The plant's operating permit is based on a discharge of 12 million gallons per day (mgd). The plant is capable of reliably processing average daily flows of up to 17 mgd. The average monthly flow has historically exceeded the design capacity on a regular basis. Plant flow can be a concern because of hydraulic capacity; however, this parameter is not regulated by the EPA. It is common for wastewater treatment plants to operate above their hydraulic ' capacity if they are able to satisfy the parameters of their NPDES permit. OMI personnel stated that the excessive flow does not create substantial operational difficulties. Plant personnel also ' stated that the plant can accommodate flows larger than those currently experienced. The design biochemical oxygen demand (BOD) loading of the plant is 25,700 pounds per day (ppd). The hydraulic loadings allowed at the plant have historically been exceeded, but the ' maximum design mass loadings have consistently been within regulated limits. This may indicate that infiltration and inflow are a concern. Low BOD loadings indicate that the WWTP ' can accommodate additional organic loading. Fayetteville has expended about $10 million recently to rehabilitate the collection system to eliminate rainfall infiltration. Approximately ' 90 percent of the rainfall overflows have been eliminated. City officials stated that they are in the process of conducting a comprehensive sewer system study. A consultant has been hired to perform this study which focuses on the feasibility ' of several options, two of which are: expanding the current plant or adding an additional plant. Plant personnel stated that the plant currently has sufficient capacity to accommodate existing customers, but the City should expand treatment capacity in the future to accommodate growth. ' Sludge Processing. OMI operates a 670 acre City -owned sludge processing farm, of which. 524 acres are dedicated for hay production. The City's hay farm is similar to ordinary hay farms, except digested sludge is used as fertilizer. Bermuda grass is grown on the hay farm and the farm produces high quality hay which the City sells to local residents for animal food. Sludge management practices are efficient and well managed. OMI operates the land application in accordance with acceptable sludge management practices. Hay produced at the farm is sold at a better than average price because of its high quality. ' One sludge management concern centers around the sludge storage reservoir. It was reported that additional sludge storage capacity would assist in operations. The City is currently reviewing alternatives to increase the sludge reservoir capacity through its study. City/OMI Relationship. The relationship between the City and OMI appears to be well suited ' for proper operation of the Wastewater Treatment Facilities (WWTF). City staff stated that they ' I are pleased with the operation of the WWTF and the on -site inspection by Black & Veatch ' revealed that the WWTF were maintained in accordance with industry standards. To analyze the financial ramifications of contract operations, City staff have informally compared costs of ' contract operations with estimated internal costs for similar work. This informal cost analysis indicates that contract operations are more cost effective than having the City operate the plant. I I I I I I I I I I I Conclusions. Because the WWTP is relatively new, constructed in 1988, major plant rehabilitation is currently not required. However, additional treatment capacity will need to be added in the near future. OMI personnel have maintained the WWTP in a responsible manner. The City has taken an active planning approach to system needs. Environmental compliance continues to be outstanding, with the exception of a TSS violation in April 1996 that resulted from excessively high rainfall. This was only the second such violation in the past six years. The system appears to be maintained at or above industry standards in all categories of operation. Wastewater Collection System As previously stated, OMI is responsible for operating and maintaining wastewater lift stations. City staff is responsible for maintaining the remainder of the wastewater collection system, which consists of approximately 420 miles of sewer lines. The City has experienced substantial overflows from the wastewater system in the past. The number and frequency of overflows have been significantly reduced, as evidenced by the following table of overflows: 1989 545 1990 348 1991 169 1992 164 1993 161 1994 123 1995 99 1996 86* *Extrapolated based year-to-date figures and trends from the previous three years. In addition to the reduction in frequency, the severity of each occurrence has been reduced dramatically. Because the way overflows are reported has changed, overflow reports do not fully reflect the efforts made by the City in this area. The City now reports overflows on more strict criteria. Prior to 1992, the City identified overflows by responding to calls, the City now proactively identifies overflows. The City has made progress in reducing overflows, as evidenced by all administrative orders being lifted and the elimination of approximately I 3 H I H I I I E I I H I L H H H I I 90 percent of the rainfall overflows. City crews perform some of the wastewater rehabilitation and are assisted by outside contractors and consultants. Water Distribution System At present, the City operates approximately 325 miles of mains ranging in size from 2 inches to 42 inches, which provides water service to approximately 21,500 customers. The system includes 6 booster pump stations and treated water storage capacity of approximately 27 million gallons in 12 water storage tanks distributed throughout the system. The system currently consists of 5 pressure planes. Because the City buys its water from the Beaver Water District, the City does not have any water purification facilities. Representatives from the Arkansas Department of Health indicated that the Fayetteville system is one of the best systems in the area. Because the City only operates a transmission and distribution system, they are only regulated by bacteriological parameters and the Lead and Copper Rule. The City has had no water quality violations in the past several years. The next few sections address some of the key issues and projects since the previous Operations Report was completed in 1993. Expanded Transmission Facilities. The City has completed construction on Phase I of water distribution system upgrades. Phase I of the project involved installing a 42 inch treated water supply line to provide redundancy and extra capacity for the existing 36 inch treated water supply line from the Beaver Water District's purification plant. Also, a 36 inch water line has been installed to extend service from the new treated water supply line. These construction projects were finalized in 1994. Phase II of the water distribution system improvements involved continuing the extension of the 36 -inch service lines adding smaller distribution lines to accommodate the additional flow from Phase I and expanding treated water storage by approximately 12,000,000 gallons. Treated water storage was expanded by installing two additional distribution reservoirs. Phase II was completed in 1996 and is reported to be operating as expected. Source of Supply. Black & Veatch conducted a telephone interview with the chief plant operator at the Beaver Water District, the supplier of treated water to the City. The interview indicated that the Beaver Water District has adequate capacity to satisfy the current and future demands of the City. The current capacity of the plant is 80 mgd. The District is currently reviewing alternatives to upgrade the plant to satisfy the future requirements of the Enhanced Surface Water Treatment Rule and Disinfection/Disinfection Byproducts Rule. The District experiences large fluctuations in raw water quality, but is able to maintain the turbidity at its goal H 7 [l I of 0.1 NTU most of the time. This is an outstanding goal because future regulations will, most ' likely, not require treatment below that level. I I I I I H I I I H Supervisory Control and Data Acquisition System. The Supervisory Control and Data Acquisition System (SCADA) is minimally helpful in assisting water operations. Several attempts have been made to improve the reliability of the SCADA system, but no substantial progress has been made to date. Although not currently as helpful as it should be, the SCADA system does not appear to negatively impact the water operations, except for resources spent repairing it. The most recent version of the Water Master Planning Study suggested that the water and wastewater SCADA systems need to be separated. To accomplish the separation, a new SCADA system would need to be purchased. System Water Loss. According to the 1989 Water Master Planning Study, the unmetered and unaccounted -for -water averaged 17.8 percent with a high of 25.4 percent at that time. Although this level of unaccounted -for -water is high, it is not uncommon to find utilities with comparable system water loss. The report stated that the unaccounted -for -water concern is most likely due to non-functional or under reading meters. City representatives stated that a metering plan is in place and the situation should improve in the future. Further, City officials stated that some of the unaccounted -for -water is not metered; therefore, it was estimated that the City can account for all but approximately 10 percent of water production. Metering. The Water and Sewer Services Supervisor was interviewed to determine improvements and concerns in this area. The Meter Division has 16 budgeted positions. Meter readers use hand-held recording devises to read meters. The City is currently investigating methods for "radio read" which will allow meter reading personnel to remain in the truck during a meter read and will substantially improve the effectiveness of the system. This system will be expensive and a detailed cost/benefit analysis is recommended before purchasing and installing any remote reading devises. It was reported in staff interviews that the Meter Division has had difficulty recruiting and retaining qualified personnel. It is recommended that pay scales be reviewed to ensure the Division can be properly staffed. Engineering The Engineering Department currently has 15 employees, four of whom are graduate engineers. The Department is responsible for establishing and prioritizing capital projects, providing design services, and providing land agent services. Land agent services include acquisition of right-of-way and sale of City property. Consulting engineers are utilized when H D in-house resources are not available to complete specific tasks. It was reported in staff ' interviews that approximately 70 percent of the design work is performed by outside consultants. The Department has requested additional staff to complete more design projects internally and ' recently expanded the staff by two employees. The Engineering Department is responsible for drafting and administering the wholesale sewer contract and the four wholesale water contracts. The City provided Computer Aided Design (CAD) capabilities to the Engineering Department in 1989, which is currently used extensively. The City is supportive of the Engineering Department, as exemplified by engineers regularly receiving continuing education reimbursed by the City. Overall, the Department appears to be adequately staffed with competent employees, able to perform assigned tasks. Findings The findings of this report are based on field observations and discussions of operations and maintenance policy and procedures with management personnel. It is concluded that the City meets or exceeds industry standards for comparable utilities in the operation and ' maintenance of its facilities. This investigation of the City's water and wastewater facilities found that the systems ' have been properly operated and maintained. Observation of active construction of water lines, renewals, and replacements demonstrates that the City is actively pursuing its responsibility to t maintain the system in good repair. ' Although the current operation and maintenance policies and procedures are successful, the City needs to continue its efforts for quality improvements in several areas, such as the following: • Review painting policy for water storage tanks and ensure that they are ' properly painted on a regular schedule. • Continue to focus on employee training and to adapt the training programs to changing needs. • Plan for larger loadings at the WWTP, as necessary. • Evaluate the water utility SCADA system and determine if it is cost effective to repair. It most likely will need to be replaced. • Review the sludge storage capacity requirements and determine whether additional sludge storage capacity is currently required. ' • Continue active planning for future growth. • Continue efforts to mitigate overflows from the sewer collection system. ' • Review the specific recommendations presented in the soon to be completed Water Master Planning Study and Sewer Master Planning Study and implement the recommendations that are feasible. ' • Continue with plans to implement a GIS system. • Review pay scales in certain areas, especially the Meter Reading Division. ' I Financial Analysis Water Utility Revenue The principal source of revenue for the water utility to meet annual costs of water service is from charges for service to water customers. Additional revenue is derived from fire protection charges, rental income, interest income, and other miscellaneous sources. Water Sales Revenue Under Existing Rates ' Table W- 1 presents a summary of the historical and projected average number of customer accounts. The residential class includes residential, multi -unit, duplex and non-profit accounts. The commercial class includes all construction, combination, commercial, govern- ment, and irrigation accounts. Customer numbers are projected to increase by approximately 6.4 percent per year through the study period. Table W-2 presents Historical and Projected Billed Usage. It is assumed that water sales per customer will remain constant at a level consistent with the past four years of history. Historical and Projected Revenue from water sales under existing rates, shown in Table W-3, is ' based on the estimated number of accounts and the estimated water sales volumes presented in Tables W- I and W-2, respectively. Projected revenues are based on current rates adopted on January 1, 1994. Revenue from the sale of water is expected to increase an average of 4.6 percent per year due to the estimated increase in customer numbers and associated increase in total water usage. The pace of revenue growth is slower than the growth in customer accounts ' because the majority of the overall customer growth is concentrated in the residential class which has a lower consumption per account relative to other customer classes. ' Other Water Revenue Revenues from fire protection charges are estimated at $200,000 per year, while other operating income is estimated to total $219,000 per year. Included in other income are: water connection fees, rural water taps, and penalty fees. Interest income, calculated at 4 percent of the balances available for investment, is estimated to average approximately $88,100 per year during the study period. 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N en .O 00 .O T N en — N00010 0000 0 CCC C 0000 O T R .O T 00 a' R O .O en T — h N N b O 7 — N — en en fn T 00 R 00 y'1 N .ro O O O can ON. eTn T O I: v N Cl N O R Ii _ u = °OIv gvvvi N 0T In .oNv N en en T ' N C m Cl b O. e- O .O r O I tin N v r en m N T N en .O en - flJ LS .O en T en Cl T A Cl N W M N 00N N t+1 en et -I — K N n ^C — I 0 o Ili N W 1I') VI O OTO N N OO m h CI — f� n Cl r4 Mn vl It N O -0 N N en O 1 — en n -001Vy enIln u v ai O O O C O RT 00'00 c T T N o0 1 to N N h T N I— 00 00 T o0 V 1 — 00 Oo O 0000r0 0 o 1 c 0 T T N W I M O 00 T 00 V O — T O p 0000 O O T T N 00 M en h 000 00 R - It —1I T C' T 0000 SBSO S O T O N 00 en O: 00O OTO It T VI T T N 00 1 M 00 W O m C— — h O. — OC t T N Cl InON. T O O O en h N Cl R T 00 R In VI — h vi Oct — N O b — 00 Cl Cl Cl 1111 00 a T en h .O h O M en 00 ? Cl 000 en Cl — en 00 .O N - - - ' O 00 h N T O T — — — '00 C T — N Cl N O 0 V U, ' LL o 0= L jz H v n " y r_ d A � r r y — H N Ct -C .a — c U y U = u v eC U u 4 d UU — 13 I I.I Water Utility Revenue Requirements I I I [] [1 [1 [1 I II I I I I I I The revenue required to adequately provide for the continued operation of the City's water system must be sufficient to meet the cash requirements of operation and maintenance expenses, principal, interest, and reserve payments on revenue bond indebtedness issued for major capital improvements, recurring minor capital expense. and improvements to the system which are not debt financed. Operation and maintenance expenses include the cost of purchased water, personnel and materials required to operate and maintain the water utility system, plus the costs of metering, billing, collecting, and administrative services. In estimating future costs, historical costs by utility function are projected for the study period recognizing requirements for service and estimated inflationary increases. Capital costs consist of debt service requirements, cash financing of capital improvements, and operating reserves. Operation and Maintenance Expenses Historical and projected operation and maintenance expenses are shown in Table W-4. Major cost items for each program include: personnel services, materials and supplies, service and charges, and maintenance. Projected operation and maintenance expenses are based on budgeted 1996 costs and an analysis of historical expense trends and anticipated future conditions. Estimated increases in operating costs are due to anticipated increases in staffing levels, inflationary increases, and increases in water usage. It is estimated for this study that personnel growth and salaries will increase at 4 percent per year, and all other costs at 3 percent per year. Operations and Administration expenses have been distributed 55 percent to the water utility and 45 percent to the wastewater utility. Water Utility Major Capital Improvements The City has developed a six -year major capital improvement program for the water utility covering its anticipated commitments for the period from 1995 through 2000. A complete listing of capital projects is shown in Table W-5. The approved capital program reflects spent or encumbered monies as well as planned expenditures for each year of the study period. The proposed expenditures are primarily associated with extension of the transmission and distribution system. Projected capital expenditures have been adjusted for inflation and are expected to total $17,374,990. 14 C) V 04 V CV C 0 41 L 4T+ •� V d 67 y It a u L 1 J[.r = T r1 nl _ — b T r N a U, I H N -; ^. N Y C- rO I nr T ^. P — N N N Cu V'1 I J IC, 1)10 C C C O - O Cl CI - Cl Cl T r b e -. U, O U4 I '0 H T 00 00 r'1 U, ^N1 I N �O I YNJ - N ']O - - N N N a C I 'JO ]O L� I O C C C O Q` Q O C Y V1 Vy'1 .O n r Cl b N Cl e'! N V1 a r'1 .1 :i 0N 6d T 00 N a - vt `O !� N JO - O N N N - I o pC '� p S 1 8 C C C !'; 1 O ~ T 1 H ]a0 t^�1 O e C 00 t1 Cl N - O N N N a v - - r N N a N a a N 8 00 Cl N OO V1 N 00 O a - e e a a O O: V 00 ' C o'l - 0 O C-- T 0l en N m " v - rc - - ri a w w o 00 C- N 00 O r0 'O e O '0 a a N 00 m N M 'O ^ Th VW '0 N N a fl CQ O e I m Cl N U en N O 000 — O N c — a N e — ? e m N O 'a x a n O rn N e n N O H s N a b ro a C u n e r o N 00 b — — o en a N W IT N C N — O N Vl W e N - N O e ONO en - u O O C O C O O O O ` S H V C �+ U r o C W V "O C Y yC �d °off W • aJU m A V 0 C �j E�-... L L• .r W E a i U OO S C L Ltn u .' c A c o. W Q E ,y e 6 •^ r C• 00 .C m u m C y 'n r Y .E 'O .� "J' I... a F' Cl`•q'q'1�rn' `u `u `v `u `v l ', E. 3o 0 3 3 i is u N n e rn ro n m a 15 I Eli o o c C a c o T c o c c c C o C o C en 0o r r C N I C o oCcxc—v1c `C -cc o ococ c r%rroocr I oo_cTcvi-cccc.0000vcv+c��n—.-in1 a •: ,�•; �o ao vi o:—000lo-�i aovao e o--aarr-Nc-N.o—vl�o.O ONooa r — en T — N1 r — r 'O --CON T N1 v r Ir g C V N N p r1 O O 8 88 O 00 N C O N rn CM c.l 0 000 0 o OOCv $ o Ina 00 - Q .O W V1 V1 - `0 0 0 00 O oo C O 0 O O C vi In -0 0UO vi N '.C r-0 '0- - N -r- 100 OOOOO ? OOO ON CO 000000 N0000 0 0 C '0 N r 0000 v'� O O O h O 00000 N 00 — .O I O: rcn—O rN 0600p o O �- C, b l o o N Nr. T 0TO N CNM1 V1 en 00 00 Vallo0t-s o vci r to V1 00 O t+1 T 1 00 00 N r 00 N N b 0 OT d e r v H C, GO 0. U i 3 E'_ > u � OOC v a E 1 E 'A VE c .v H y c 00. Ct o .9 u KO 'C v �e ° m c E u atug' E noim'"v ¢Q co=F E °D0 v c c �� `c'• xO.1.c-1 '2 vaa n mmyo3�v�c 1 wm 331 o�da�'v 3�33eofY I ��Av3d'9E� 0< c C c �. d a Y `o yin n 3Qm33N F '4 L L A » �n U �.. '` v N n yU GU 'P�o33� .=.- zomri ma 0 3m3 0 E N t1 T h .O r W a O ' N e�1 T h 10 r a0 a O — N cn T ut `G — — — — — — — — — — N N N N N N N 16 I I I I I I I I Water Utility Minor Capital Expense Minor capital expenses include equipment, system replacements, and system extensions which occur on a recurring basis each year. Projected expenditures for minor capital expense represent an allowance based on budgeted 1996 levels. Water Utility Debt Service Requirements Existing debt service requirements, as shown below, consist of principal and interest on the Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1992, and Water and Sewer System Revenue Bonds, Series 1994. Based on the facilities constructed with these original bond monies totaling $15,500,000, 93.4 percent of the total annual principal and interest on both bond issues is allocated to the water utility. The balance of the debt service is allocated to the wastewater utility. Water Utility Debt Service on Outstanding Bonds Principal Year and Interest 1996 $ (,305,100 ' 1997 1,309,100 1998 1,310,500 ' 1999 1,313,500 2000 1,314,300 I I I I I Recommended Water Revenue Adjustments The pro forma operation statement or cash flow analysis presented in Table W-6 provides a basis for evaluation of the adequacy of revenues under existing rates to meet the projected revenue requirements of the Water Utility for the period 1996 through 2000. The indicated increased revenue levels shown on Lines 3 through 7 of Table W-6 are based on the effective dates and magnitude of required revenue adjustments considered necessary to meet the revenue obligations of the water utility, required revenue bond coverage provisions and City policy objectives. The effective amount of increased revenues shown during the first year of each rate adjustment includes an allowance for the effect of bill proration and billing lag arising from the difference between the effective date of the increase and receipt of the additional revenue. Total revenue from rates is projected to increase from the existing $9,310,800 level in 1996 to $11,763,400, as shown on Line 9 of the table. H 17 Table W-6 Water Utility Operating Fund Cash Flow Analysis Line Description OPERATING ACCOUNT Revenues: I Water Sales - Existing Rates 2 Fire Protection Charges Additional Revenues Required: Billings Months Date of Increase Increase Effective 3 1/1/1996 0.0% 12 4 7/1/1997 3.0% 6 5 1/1/1998 0.0% 12 6 1/1/1999 3.0% 12 7 1/12000 0.0% 12 8 Total Additional Revenues 9 Total Water Sales Revenues 10 Interest Income I I Other Income 12 Total Revenues and Other Income Revenue Requirements: 13 Operating Expense 14 Net Earnings Debt Service 15 Existing Revenue Bonds 16 Proposed Revenue Bonds 17 Total Debt Service 18 Minor Capital Expense 19 Transfer to Capital Project Fund 20 Bond Defeasance/Avoidance Cost 21 Total Revenue Requirements 22 Net Annual Balance 23 Beginning of Year Balance 24 End of Year Balance 25 Required Operating Reserve CAPITAL PROJECTS FUNDING Sources of Funds 26 Funds Available at Beginning of Year 27 Transfer from Operating Fund 28 Sales Tax Revenue 29 Interest Income 30 Total Funds Available for Major Capital Improvements Capital Fund Requirments 31 Major Capital Improvements 32 End of Year Balance Cl) (2) (3) (4) 15) Year Ending December 31 1426 1947 1248 1242 2044 $ $ $ $ $ 9,110.800 9.514.900 9,945.300 10.402.000 10,888,200 200.000 200.000 200,000 200.000 200,000 0 0 0 0 0 132.600 304.400 318.100 332,600 0 0 0 298,100 342,600 0 0 132.600 304.400 616.200 675.200 9,310.800 .9.847.500 10.449.700 11.218.200 11.763.400 117,000 82.200 76.500 76.100 88.700 219.000 219.000 219,000 219.000 219.000 9,646.800 10.148.700 10.745.200 11,513,300 12,071,100 7,393,000 7.742.700 8,215,700 8.724.400 9,272.600 2.253.800 2.406.000 2.529.500 2.788,900 2,798.500 1,305.100 1.309.100 1,310,500 1,313,500 1,314,300 0 0 0 0 0 1,305.100 1.309,100 1,310,500 1.313,500 1,314,300 239.000 246.200 253.500 261,100 269.000 2.600.000 700.000 1,400.000 800.000 1.000.000 0 0 0 0 0 11.537.100 9.998.000 11.179.700 11.099.000 11.855.900 (1,890.300) 150.700 (434.500) 414.300 215,200 3.184.500 1,294.200 1,444.900 1,010.400 1.424,700 1,294,200 1,444.900 1.010.400 1,424.700 1.639,900 1,215,300 1,272,800 1,350,500 1,434,100 1,524,300 1,010.500 937,220 32.820 97,920 45.920 2.600,000 700,000 1,400.000 800,000 1.000.000 862,000 236,500 165,000 462,500 1,187,500 21,700 14,700 0 0 0 4,494,200 1.888.420 1,597.820 1,360,420 2.233.420 3,556.980 1.855,600 1,499,900 1.314,500 1,740,000 937,220 32,820 97,920 45,920 493,420 Debt Service Coverage: 33 Maximum Revenue Bond Debt Service 1,260,400 1.260.400 1,260,400 1.260,400 1,260,400 34 Revenue Bond Debt Service Coverage (Line 14/Line17) 173% 184% 193% 212% 213% E I Operation and maintenance expenses and debt service requirements comprise about ' 74 percent of the water utility's total revenue requirements over the five year planning period. The indicated revenue adjustments are designed to provide a year end balance in the ' operating fund (Line 24) equal to approximately 60 days of operation and maintenance expenses per bond covenant provisions. ' Capital Projects Funding Also shown on Table W-6 is a proposed capital improvement financing plan which ' indicates the sources and application of funds to be used to finance the capital improvement program during the period 1996-2000. Funding sources include the use of operating revenue, sales tax revenue, and interest income from the investment of construction funds. The beginning of year estimated fund balance of $1,010,500 in the Capital Projects Fund ' at January 1, 1996, represents the allocated share to the water utility of the total unencumbered monies available in the Water and Sewer Fund's Capital Projects Fund. This allocation was based on the respective sales revenues generated by the water and sewer utilities in 1995. It is anticipated the City will utilize $6,500,000 in operating revenue and $2,913,500 in City Sales Tax funds to finance capital improvements over the projection period. J I I H H ' 19 Li fl Li Wastewater Utility Revenue I The principal source of revenue for the wastewater utility to meet annual costs of service ' is from charges for service to wastewater customers. Additional revenue is derived from interest income, and other miscellaneous sources. Sewer Sales Revenue Under Existing Rates Table S -I presents a summary of the historical and projected average number of customer accounts. The residential class includes residential, multi -unit, duplex and non-profit accounts. The commercial class includes all construction, combination, commercial, government, and ' irrigation accounts. Increases in the number of customers for the wastewater utility numbers are projected to approximate those for the water utility. Total accounts are expected to increase by ' approximately 6.7 percent per year through the study period. Table S-2 presents Historical and Projected Billed Usage. It is assumed that wastewater consumption per customer will remain constant at a level consistent with the past four years of history. Historical and Projected Revenue from wastewater service under existing rates, shown in Table S-3, is based on the estimated number of accounts and the estimated sewer sales volumes presented in Tables S-1 and S-2, respectively. Projected revenues are based on current rates adopted on January 1, 1994. Revenues from wastewater service are expected to increase an average of 5.1 percent per year due to the estimated increase in customer numbers and associated increase in total billed usage. The pace of revenue growth is slower than the growth ' in customer accounts because the majority of the overall customer growth is concentrated in the residential class which has a lower consumption per account relative to other customer classes. IOther Wastewater Revenue Revenues from other operating income, consisting of sewer connection fees and penalty fees, are estimated to total $148,000 per year. Interest income, calculated at 4 percent of the balances available for investment, is estimated to average approximately $99,000 per year during Ithe study period I Li Li ' 20 I f Cl - N N I '.O OI N JI ('1 N N I a�njrn mo O 00 vl O (NN V)i I - I N N N - y C O - ao — u C rn v amrn1� -- a N r O Q\ N— ? h U) N I N C U ci L n cot- h a N� M O^ 4 I- N N N H I O N� to N �O o r- I O N �y Vf b I ooN— i to Iv, - C — N — IN V/ co I O O N- O\ WWW � N V 1 L� �I, y-ai L. 1 y C h N N- N -- I� I- a C :CO a °o - 'G 'O oC N O _ -rq'O1O' O\ -'O C h a '0 N `o o O O O N T N I N1 V H W W V A C L - W C d N d v A d �Aa A A O LI w a U `" O CJ U `" A 21 N Cl) 47 I- N m DO 5 N, O _ O rim Ov`n n en 00 i vi n 'O •O I O ]O vi 00 I N — n 0000 0000 enN00 00 n 'O Cl r rt o0 000O n nO _ 0000 N 0000 h oal oo N S 0000 T tV 00 O\ T 00 O n 00 r - N Q _ V m b V M OiC O\ -0V n r r rO 0 v, N I . O T N T v) _ rV 00 _ n n O N 00 'no- 0 — 0 o Q — vt b 00 I T vt r m —Cl— O virr\ N jn oTo en N O O O rn n f : C o I r N - i 0 000 m r -O O '000 Fr - 000 0 000 O C- N 'O N 'ON a 000 0 000 O -r-r1 n rnaa:0 0000 V rn T n O 00 — h _ 00 N N N ''C v n h - 00 r vin 'O v 0000 C- C.' Q�Or r n h T en— In n n vi O N N N I r T O Q n r n en 00 O T - M N en 0 0 c 0 � N _ 00 In Cs 00 r N O N L v -C — N - F .A = Cl u= 0 A y 00 n¢ n y W N o > z t` O O D• O" t: C'U� h OLiUU h 3(:d 22 I 1 1 I I I. c I) of Co 20 J N Cl) L d c !0 t0 �v P L O = N m ryry O 2 Vf 0 0 0 1 0 000t0 O t O ^� O nnCI\O Q- ni� T lnMlr -r.D IIn Q r Q r QO 'O O In I N M T r ! 0o M .-- O OOO1O OIO OOO1O O O O I O OO O O M I M M Y1 T M IO Vt r I M— - Q T I vi .-- : —loo o I oo C 20010 OOO1O O O O O OO OO NC '1O1C' C b >, ONO Iv, N 'o g g o g `u S o o w v1 tQ� K Q^ 0 00 O N N - U v I' I > > vu OOO1O OOO1O O O T O r r O N '1 W a R W G M V cn tr�l of O r N N Q t` C I IF': U N � U cn — ff. N�t C n a m "' O d N Q oo .D n r T M 'O u O r Moon N r vi > v pp...•In r T Q M 9 Cf O r N Q 0 U - v = r 'u O M N 'O O T y - o -�m OQ r- Z'p^d O. O. (V - T M T N N I/1 B p U N 00 M h M O\ Q 00 Q r O' A C N M rn • C U c C, E m M n O C.' r��t — 00 00 s o • - - • v I -a.oe 000 o o cn " N Iv, 0- �" n M — \O t W C 3 E u 0i O N N vt r-100 air- m n M a a'0M w a vQt m y oro j L r h N E M - Vl .D C .≤ A s v In c zinc U N U 'O U > 0.. "' L U U C 'u U o 2- ¢ v 'c � U Sp h U C U 'y . .. o t c- s o u u u_ E y A 5 S 0 5€ u o o s 0 F °�� ixu OciuU 3w 23 I Wastewater Utility Revenue Requirements I. The revenue required to adequately provide for the continued operation of the City's ' wastewater system must be sufficient to meet the cash requirements of operation and maintenance expenses, principal, interest, and reserve payments on revenue bond indebtedness ' issued for major capital improvements, recurring minor capital expense. and improvements to the system which are not debt financed. Operation and maintenance expenses include the cost, personnel and materials required to operate and maintain the sewer utility system, plus the costs ' of metering, billing, collecting, and administrative services. In estimating future costs, historical costs by utility function are projected for the study period recognizing requirements for service ' and estimated inflationary increases. Capital costs consist of debt service requirements, cash financing of capital improvements, and operating reserves. Operation and Maintenance Expenses Historical and projected operation and maintenance expenses are shown in Table S-4. Major cost items for each program include: personnel services, materials and supplies, service and charges, and maintenance. Projected operation and maintenance expenses are based on budgeted 1996 costs and an analysis of historical expense trends and anticipated future conditions. Estimated increases in operating costs are due to anticipated increases in staffing ' levels, inflationary increases to the major cost items, and increases in sewer usage. It is estimated for this study that personnel growth and salaries will increase at 4 percent per year, and ' all other costs at 3 percent per year. Contract operation of the City's wastewater treatment plant and lift stations is expected to experience annual 3 percent cost increases. Operations and Administration expenses have been distributed 45 percent to the wastewater utility and 55 percent to the water utility. Wastewater Utility Major Capital Improvements The City has developed a six -year major capital improvement program for the wastewater utility covering its anticipated commitments for the period from 1995 through 2000. A complete listing of capital projects is shown in Table S-5. The approved capital program reflects spent or ' encumbered monies as well as planned expenditures for each year over the study period. The proposed expenditures are primarily associated with extension of the collection system. Projected capital expenditures have been adjusted for inflation in later years and are expected ' to total $21,421,243. C 24 v l fl iG �r r C n — — — N en' Xl JI Cl sy A q 00 T Cl = h = VI • VI — T 6 O L' Sil _ cl in - a Cl n F CI'N ]O _ Cl Cl N fl C C C j I ^.. ' l N I 0 00 '0 V1 C` JO riION '] V'1 W N a ON C N — — - - W uI _ , I p = 0 I V1 .^ O N T in C W yq 00 00 (n a N Cl w T — r T C — enr rn d w C M — en OO 0 ON ((5 m 00 . I vii a v 00 C Vl N N O NiN ,O 0 _ '0 r N' m N Vl C o I Ih f 0 r- r r w ` (4 V C Pl T 9C 'S O\ Q C., c I a d 1 y 2 a U u .T - N N CO r C- M C a a O O m L Ill V O N' N .�.. M W N' N I N N Q O 1 Cow O 00 M 00 VIu .. en b C.. T Cl 0\I Cl Cl - en CM I W 00 r N c lv a (5 oa- _ A (p '' 0 0 0 01 0 Ci 0 V o R S A O U a U) 0 R e m E --t e� E 0. y r V) C C A 'A u n W r. U a a '-% d u u y 0 3 m e U E v ` o E C A c O F ul - V V U y 3 d y V 3 w n yr A a 1 o 3 3 u N In v rn b r ..1 25 Ito d M C a 0 0 0 Q C C a a h M to O O V1 n n M C a N M ON O O Q C O Q C C vat — 00 rao 0 O M M t� n T ao N N 00 O h N O- Ot vi Vi 6 n a O Q N D\ i Q O Vl op O N ;) 00 N �O M N Q N �O Q - - V s 000 O 00000 ' 000 O 0 v In 0 O 0 v9 N '0 as Vt V1 O V1 n (CGVy O N C O In v t - In - pp pON coo o O p000000 o o o o 0 O V C V'� V1 C O O lvi O N O '6 06 vt V'i C v- Q b C o - 01 o vi 0 lit Q C a - - N tL oo 0 ovo.noo 25 E 6 O Vi '6 00 V7 6 O Vl Vi p v1 'c o v a C O - N N- M a) O 000 00 00000 OC coo v1 O O In 0 O ✓J v1 'n - .O 00 -c-c6€1 n M n C n O V IN - N°° - it '— C I— c -' M o 0 0 o O'J o Q M o 0 0 o V'1 V 00 V'1 L 'fl '00000 en00N00000 N 00 C O O C V7 O Iv, y ?? - Vl vt o O a O o c� rn n o V o t�? �n n% - yard eY0 Qy Q [- t -- N 6 01 Vl Vt n C �O Vl Vt (V a - a V'1 Vl O' Cu O 4 O -Vi fin N Q� .-. — n — N Q — lit Q Cq — Q r C � a ' rl O vt M 00 00 — n n C n 00 N O M V 00 cu yy 4\ Q 00 — — a0 N — V1 00 — h DD 00 N VJ V Q 'C V Q M 00 N Vi O - Vi - M - N N 00 Q Ven N Q a V1 6 CS V Y C Y L C Y E O v C (5C c E m n 5 V n d C — A . VC C 6 C m y v O � A�Ya wog n��d O O Y 7 L C E VC y I. i Y .° Y Y r Y UO. Co o a. L L 00 . v O: .. C a z Ay T�g33�U U o u ffi y _ Y Y T c c� o. ti n [' h : p` Y F F- n Ova Q.t= Q v 0 3 :° 3 o In N N N N N 26 I I H 'I I I I I Wastewater Utility Minor Capital Expense Minor capital expenses include equipment. system replacements, and system extensions which occur on a recurring basis each year. Projected expenditures for minor capital expense represent an allowance based on budgeted 1996 levels. Wastewater Utility Debt Service Requirements Existing debt service requirements, as shown below, consist of principal and interest on the Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1992, and Water and Sewer System Revenue Bonds, Series 1994. Based on the facilities constructed with these original bond monies totaling $15,500,000, 6.6 percent of the total annual principal and interest on both bond issues is allocated to the wastewater utility. Sewer Utility Debt Service on Outstanding Bonds ' Principal %[ and Interest 1996 $ 92,300 1997 92,500 ' 1998 92,600 1999 93,100 ' 2000 93,400 H H L L L' I Recommended Wastewater Revenue Adjustments The pro forma operation statement or cash flow analysis presented in Table S-6 provides a basis for evaluation of the adequacy of revenues under existing rates to meet the projected revenue requirements of the wastewater utility for the period 1996 through 2000. The indicated increased revenue levels shown on Lines 2 through 6 of Table S-6 are based on the effective dates and magnitude of required revenue adjustments considered necessary to meet the revenue obligations of the wastewater utility, required revenue bond coverage provisions and City policy objectives. The effective amount of increased revenues shown during the first year of each rate adjustment includes an allowance for the effect of bill proration and billing lag arising from the difference between the effective date of the increase and receipt of the additional revenue. Total revenue from rates is projected to increase from the existing $7,737,600 level in 1996 to $10,001,600, as shown on Line 8 of the table. 27 Table S-6 Wastewater Utility Operating Fund Cash Flow Analysis (I) (2) (3) (4) (5) ' Line Year Ending D cember 3l ND. Description 1996 1241 1338 1292 2000 $ $ $ $ $ OPERATING ACCOUNT ' Revenues: I Sewer Sales - Existing Rates 7,737,600 8.119,200 8,527.600 8.962,700 9,427,500 Additional Revenues Required: Billings Months ' Date of Increase Increase Effective 2 1/1/1996 0.0% 12 0 0 0 0 0 3 7/1/1997 3.0% 6 110.800 255,800 268,900 282,800 4 1/1/1998 0.05E 12 0 0 0 IS 1/1/1999 3.0% 12 252,000 291,300 6 1/12000 0.0% 12 0 7 Total Additional Revenues 0 110,800 255,800 520,900 574,100 I8 Total Sewer Sales Revenues 7,737,600 8,230.000 8.783,400 9,483,600 10.001.600 9 Interest Income 87,400 66,500 94.500 121.900 133.300 10 Other Income 148,000 148,000 148,000 148.000 148,000 ' II Total Revenues and Other Income 7,973,000 8,444,500 9,025,900 9,753,500 10,282.900 Revenue Requirements: 12 Operating Expense 5.706,500 5.903.800 6,108,800 6,322.500 6,545,000 ' 13 Net Earnings 2,266.500 2,540,700 2,917.100 3,431,000 3.737,900 Debt Service ' 14 Existing Revenue Bonds 92.300 92,500 92,600 93.100 93,400 15 Proposed Revenue Bonds 0 0 0 0 0 16 Total Debt Service 92,300 92,500 92,600 93,100 93,400 17 Minor Capital Expense 21,000 21,500 22,100 22,700 23.300 IS Transfer to Capital Project Fund 3,400,000 1.700,000 1,500.000 2.500,000 2.800,000 19 Bond Defeasance/AvoidanceCost 500,000 610,800 755,800 1.020.900 1,074,100 ' 20 Total Revenue Requirements 9,719.800 8,328.600 8,479,300 9,959.200 10.535.800 21 Net Annual Balance (1,746,800) 115,900 546.600 (205,700) (252,900) 22 Beginning of Year Balance 2,691,000 944.200 1,060.100 . 1.606,700 1,401,000 I23 End of YearBalance 944.200 1.060.100 1.606,700 1,401.000 1,148,100 24 Required Operating Reserve 938,100 970.500 1,004,200 1,039,300 1,075,900 CAPITAL PROJECTS FUNDING ' Sources of Funds 25 Funds Available at Beginning of Year 853,900 2.601,244 3.437,544 3,911,244 5.077,744 26 Transfer from Operating Fund 3,400,000 1,700,000 1,500,000 2.500,000 2.800,000 27 Sales Tax Revenue 2,834,000 1,472,500 2,165,000 1,462.500 937,500 ' 28 Interest Income 12,400 91,300 103,700 150,500 213,200 29 Total Funds Available for Major Capital Improvements 7,100,300 5,865,044 7.206,244 8,024,244 9,028,444 ' Capital Fund Requirments 30 Major Capital Improvements 4,499,056 2,427,500 3,295,000 2.946,500 2.507,500 31 End of Year Balance 2,601,244 3,437,544 3,911,244 5,077,744 6,520,944 ' Debt Service Coverage: 32 Maximum Revenue Bond Debt Service 89.600 89,600 89,600 89,600 89.600 33 Revenue Bond Debt Service Coverage (Line 131Line16) 2456% 2747% 3150% 3685% 4002% ' 28 I I Operation and maintenance expenses and debt service requirements comprise about I I I L I] I I I I I I I I I I 65 percent of the wastewater utility's total revenue requirements over the five year planning period. The indicated revenue adjustments are designed to provide a year end balance in the operating fund (Line 23) equal to approximately 60 days of operation and maintenance expenses per bond covenant provisions. Capital Projects Funding Also shown on Table S-6 is a proposed capital improvement financing plan which indicates the sources and application of funds to be used to finance the capital improvement program during the period 1996-2000. Funding sources include the use of operating revenue, Sales Tax revenue, and interest income from the investment of construction funds. The beginning of year estimated fund balance of $853,900 in the Capital Projects Fund at January I, 1996, represents the allocated share to the wastewater utility of the total unencumbered monies available in the Water and Sewer Fund's Capital Projects Fund. This allocation was based on the respective sales revenues generated by the water and wastewater utilities in 1995. It is anticipated the City will utilize $11,900,000 in operating revenue and $8,871,500 in City sales tax funds to finance capital improvements over the projection period. Combined Water and Wastewater Utilities The projected cash flow tables for the water utility (Table W-6) and the wastewater utility (Table S-6) are combined in this section to facilitate conducting the coverage tests required by Bond Ordinance No. 3638 and No. 3829. The combined cash flow statement is shown in Table C -I The bond ordinances state that system gross revenues shall be at least 110 percent of the amount required to pay operating expenses, principal and interest requirements, any registrar and trustee fees, required deposits to the debt service reserve fund, and required deposits to the renewal and replacement fund. As shown on Line 34 in Table C -I, the coverage requirement is met assuming the proposed revenue increases are implemented as indicated. In addition, the bond ordinances require that prior to issuing parity indebtedness net revenues for each of the two fiscal years preceding issuance of additional parity indebtedness must be no less than 120 percent of the maximum principal and interest requirements on all Bonds and any parity indebtedness then outstanding and the proposed parity indebtedness. Net revenues may be adjusted for rate increases adopted before the additional parity I i,] Table C-1 Combined Utility Operating Fund Cash Flow Analysis (l) (2) (3) (4) (5) ' Line Yenr End'Endirm December31 jo. Description 1396 1991 1928 1332 2040 a $ $ $ $ OPERATING ACCOUNT ' Revenues: 1 Water/Sewer Sales - Existing Rates 16,848,400 17,634,100 18,472,900 19,364,700 20,315,700 2 Fire Protection Charges 200,000 200,000 200,000 200,000 200,000 Additional Revenues Required: ' Billings Months Date of nrrete 1ncrense Effective 3 1/1/1996 0.0% 12 0 0 0 0 0 4 7/1/1997 3.0% 6 243,400 560,200 587.000 615.400 5 1/1/1998 0.0% 12 0 0 0 6 1/1/1999 3.0% 12 550,100 633,900 7 1/1/2000 0.0% 12 0 8 Total Additional Revenues 0 243,400 560,200 1,137.100 1,249,300 9 Total Water/Sewer Sales Revenues 17.048.400 18.077.500 19,233,100 20,701.800 21.765,000 10 Interest Income 204,400 148.700 171,000 198,000 222.000 II Other Income 367,000 367,000 367.000 367,000 367,000 ' 12 Total Revenues and Other Income 17,619,800 18,593,200 19,771.100 21,266.800 22,354,000 Revenue Requirements: 13 Operating Expense 13.099,500 13,646,500 14,324,500 15,046,900 15,817.600 14 Net Earnings 4,520.300 4,946,700 5,446,600 6,219,900 6,536,400 Debt Service 15 Existing Revenue Bonds 16 Proposed Revenue Bonds 17 Total Debt Service 18 Minor Capital Expense 19 Transfer to Capital Project Fund 20 Bond Defeasance/Avoidance Cost 21 Total Revenue Requirements 22 Net Annual Balance 23 Beginning of Year Balance 24 End of Year Balance 25 Required Operating Reserve CAPITAL PROJECTS FUNDING Sources of Funds 26 Funds Available at Beginning of Year 24 Transfer from Operating Fund 28 Sales Tax Revenue 29 Interest Income 30 Total Funds Available for Major Capital Improvements 1,397,400 1,401,600 1,403,100 1,406,600 1,407.700 0 0 0 0 0 1,397,400 l,401.600 1,403.100 1,406,600 1,407,700 260,000 267,700 275,600 283,800 292,300 6.000,000 2,400,000 2,900,000 3.300,000 3,800,000 500,000 610,800 755,800 1.020.900 1,074,100 21,256.900 18.326,600 19,659.000 21,058,200 22,391,700 (3,637,100) 266,600 112,100 208,600 (37,700) 5,875.500 2,238,400 2,505,000 2.617,100 2,825.700 2,238.400 2,505,000 2,617,100 2,825,700 2,788.000 2,153,300 2,243,300 2.354,700 2,473,500 2,600,200 1,864,400 3,538,464 3,470,364 4.008,464 5,116,464 6,000.000 2,400,000 2.900,000 3.300,000 3,800,000 3,696,000 1,709,000 2,330,000 1,925,000 2,125.000 34,100 106,000 103,000 144,000 199.700 11.594,500 7,753,464 8,803,364 9,377,464 11,241,164 Capital Fund Requirments 31 Major Capital Improvements 8,056.036 4,283,100 4,794,900 4,261,000 4,247,500 32 End of Year Balance 3,538,464 3.470,364 4,008.464 5,116,464 6,993,664 Debt Service Coverage: 33 Maximum Revenue Bond Debt Service 1,350,000 1,350,000 1,350,000 1,350,000 1,350,000 34 Revenue Bond Debt Service Coverage (Line 14/Linel7) 323% 353% 388% 442% 464% tag, I I indebtedness are issued. Because no parity indebtedness is proposed for either utility during the 1 five year planning period, this coverage requirement test is not required. L; I I I I I I I I I I I I ' 31 I El Compliance I In addition to the annual coverage test discussed in the preceding section of this report, ' the bond ordinances contain provisions for the issuance of revenue bonds, the establishment of certain funds, the City's covenant to maintain adequate insurance on the system facilities, and other requirements to protect the interest of the bond holders. This section of the report examines the City's compliance with the provisions of the bond ordinances. ' Issuance of Revenue Bonds The City is authorized under the constitution and laws of the State of Arkansas, including ' particularly Title 14, Chapter 234, Subchapter 2; Title 14, Chapter 235, Subchapter 2; Title 14, Chapter 164, Subchapter 4; and Title 19, Chapter 9, Subchapter 6 of the Arkansas Code of 1987 ' annotated to acquire, construct, equip, improve, maintain, operate and repair the system and to issue its revenue bonds to finance capital improvements to the system or to refund any ' outstanding bonds issued for the purpose of financing such capital improvements. There are no proposed bonds issued during the projection period. Establishment of Funds The ordinances require the establishment of a Revenue Fund, Operation and Maintenance ' Fund, Bond Fund, Renewal and Replacement Fund, Debt Service Reserve Fund, and Construction Fund. The ordinances also require the establishment of two separate accounts in the Bond Fund designated the "Bond Service Account" and the "Redemption Account." Each of these funds is to be maintained as a segregated fund on the records of the City. Revenue Fund Gross revenues from the operation of the water and wastewater systems are deposited Iinto the Revenue Fund. Each month the City transfers from the Revenue Fund the following amounts: Ii. To the Operation and Maintenance Fund, an amount which will result in a balance equal to the anticipated operating expenses for the next two months. 2. To the Bond Service Account in the Bond Fund, an amount equal to one - sixth of the interest due on the next interest payment date, plus one -twelfth of the principal due on the next principal payment date after taking into account any amounts then held for the credit of the Bond Service Account. 3. To the Redemption Account in the Bond Fund, an amount equal to one - twelfth of the Amortization Requirement with respect to the outstanding 32 I I I I I I I I H I I I C I I I Term Bonds to be satisfied within the next succeeding twelve month period ending on August 14 plus the premium, if any, on the respective principal amount of Term Bonds which would be payable if such principal amount of Term Bonds were to be redeemed during such period from moneys held for the credit of the Redemption Account after taking into account amounts then held in the Redemption Account. 4. To the Debt Service Reserve Fund, an amount at least equal to one -twelfth of any deficiency until the balance in the Debt Service Reserve Fund is equal to the Reserve Fund Requirement. 5. To the Renewal and Replacement Fund, to the extent money is available in the Revenue Fund at least one -twelfth of the amount necessary to increase the balance to $300,000. Any money remaining in the Revenue Fund after the above transfers are made may be used for any lawful purposes by the City. Operation and Maintenance Fund Money in the Operation and Maintenance Fund is to be used solely to pay operating expenses. Operating expenses are defined as all ordinary and necessary expenses of operation, repair, maintenance, and insuring of the system. If in any month the amount transferred to the Operation and Maintenance Fund is less than required, the deficiency is added to the amount required to be transferred the following month. Bond Fund Monthly transfers from the Revenue Fund to the Bond Fund are equal to one -sixth the next interest payment, plus one -twelfth the next principal payment, after taking into account amounts held in the Bond Fund Account for the payment of such principal and interest. From the Bond Fund, the trustee pays the amounts required to meet interest and principal payments on the bonds. If there is insufficient money in the Bond Fund to meet the interest and principal payments, the deficiency is made up first from transfers from the Debt Service Reserve Fund, and second from transfers from the Renewal and Replacement Fund. Renewal and Replacement Fund The Renewal and Replacement Fund requirement of $300,000 was met in entirety from funds on deposit for the security of the refunded series 1985 Bonds. Money in the Renewal and Replacement Fund is to be used to pay the costs of necessary repairs or replacements due to depreciation of the system and the costs of damage caused by unforeseen catastrophes. Li 33 Li II Debt Service Reserve Fund The balance in the Debt Service Reserve Fund is to equal the Reserve Fund Requirement I I I I L I I L I I Money in the Debt Service Reserve Fund is to be used as necessary to meet deficiencies in the Bond Fund. Any money in the Debt Service Reserve Fund which is in excess of the reserve requirement may be transferred back to the Bond Fund. Construction Fund Proceeds of the Series 1992 and Series 1994 bonds in the amount specified in the applicable ordinances shall be deposited to the credit of the Construction Fund created by the ordinance. When improvement work has been completed, the balance in the Construction Fund not reserved by the City for the payment of improvements shall be transferred to the Bond Fund for the payment of principal and interest or retained in the Construction Fund and used to pay the cost of additional capital improvements. Fund Establishment Compliance We have examined the financial statements of the water and wastewater utilities and find that all required funds have been established. Deposits to, and withdrawals from the various funds are in compliance with the bond ordinance. Insurance The City has agreed to insure all properties other than mains and lines for the transmission, distribution, or collection of wastewater, against loss or damage from fire, lightning, tornado, winds, strike, malicious damage, explosion, and other causes customarily insured against by private companies engaged in a similar type of business. Such insurance is to remain in force as long as any of the bonds are outstanding. Table C-2 summarizes the insurance policies now covering the water and wastewater systems. Other Covenants ' The City is to pay the principal and interest on each Bond and all other indebtedness issued at the places, on the dates and in the manner specified. Such principal, interest and premium will be payable solely from the net revenues. ' All payments on the bonds are to be made only through a designated paying agent. The designated paying agent for the 1992 Series Bonds is First Commercial Trust Company, in the ' City of Little Rock, Arkansas. The paying agent for the 1994 Series Bonds is the Bank of Oklahoma, N.A., in the City of Tulsa, Oklahoma. The City is to construct improvements in accordance with plans and specifications approved by the City and required by law. I 34 I All bonds paid or purchased either at or before maturity are to be canceled when payment ' or purchase is made and held by the trustee or the City and are not to be reissued. The system is to be operated on a fiscal year basis beginning January 1 and ending December 31 of each year. Current audited financial statements reflect such a fiscal year. The City is to perform all duties with reference to the system required by the Constitution and laws of the State of Arkansas, including charging and collecting reasonable and sufficient rates for services rendered, segregating gross revenues as provided in the ordinances, and applying net revenues to the respective funds and accounts created by the ordinances. Our I investigations indicate the City is in compliance with these covenants. The City is to maintain the system in good condition and operate it in an efficient manner ' and at a reasonable cost. Maintenance and operation of the system is discussed in detail in the Engineering Evaluation section of this report. While some recommendations have been made regarding maintenance of the system, it is our opinion that the water and wastewater systems.are generally in good working condition. It is also our opinion that the cost of water and wastewater service is reasonable when compared with other cities in the area. No free water service is being provided to any department or agency of the City. The City may not mortgage, pledge, or otherwise dispose of any substantial portion of ' the water or wastewater systems or any gross revenues as long as any of the Series 1992 or Series 1994 Bonds are outstanding. The City has not mortgaged any portion of the water and wastewater systems. The only assets which have been disposed of are those which are regularly ' replaced at the end of their useful service lives. In the event the offices of the Mayor, City Clerk or members of the City Council shall be abolished or a vacancy in any office results, all powers conferred and obligations and duties imposed upon such office shall be performed by the succeeding office or officer. S The City is to prepare a budget of proposed system capital costs and operating expenses for each fiscal year of operation. Budgets have been completed as required. A report on the status of the water and wastewater system's assets and compliance with the terms and provisions of the ordinance is to be prepared by a consulting engineer no less frequently than every three years. A copy of the report is to be delivered to the insurer of the ' bonds. This report constitutes the second triennial Report on Operations. The City is not to take any action which would cause the interest on the Series 1992 or ' Series 1994 Bonds to be subject to federal income taxes. To the best of our knowledge, the City is in compliance with this provision. I H ' 35 I 1 1 1 1 1 1 1 1 Table C-2 Insurance Coverage Line No. Carrier (al I Ramsey, Krug, Farrell & Lensing Water Pump Building 2 Ramsey, Krug, Farrell & Lensing Water Department Equipment Bldg 3 Ramsey, Krug, Farrell & Lensing Water/Sewer Equipment Shed 4 Ramsey, Krug, Farrell & Lensing Water Booster Station 5 Ramsey, Krug, Farrell & Lensing Water/Sewer Maintenance Office 6 Ramsey, Krug, Farrell & Lensing Water Lift Stations 7 Ramsey, Krug, Farrell & Lensing Water/Sewer Warehouse 8 Ramsey, Krug, Farrell & Lensing Wastewater Lift Stations 9 Ramsey, Krug, Farrell & Lensing Wastewater Treatment Plant 10 Ramsey, Krug, Farrell & Lensing Sludge Management Site I I Ramsey, Krug, Farrell & Lensing Water Storage Tanks (a) Hartford Insurance is the underwriter. Amount of Policy Period Coves From Tn 45,000 01/01/96 12/31/96 231,000 01/01/96 12/31/96 62,000 01/01/96 12/31/96 193,000 01/01/96 12/31/96 391,000 01/01/96 12/31/96 192,000 01/01/96 12/31/96 609,000 01/01/96 12/31/96 3,409,000 01/01/96 12/31/96 22,000,000 01/01/96 12/31/96 898,000 01/01/96 12/31/96 4,900,000 01/01/96 12/31/96 36 r O C) STATE OF ARKANSAS 1 I ss. County of Washingto 1, ��� �' L ' � >� hereby cer- tify that I am the publisher of3FHE 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 newspaperpubhishes an average of more than forty percent news matter. I further c rtify 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: The first insertion on the \`'� �' ) l 'r 1 ( day of l9 the second insertion on the day of 19 the third insertion on the day of 19 and the fourth insertion on the day of 19 Publisher / General Manager Sworn to and subscribed before me oil this L i day of c Ago�N.tary My Commission Expires: Fees for Printing $ ( vl S R, 4C', Cost of Proof $ Total $ 25X is the best guarantee of success. 3. BE AVAILABLE. Make it easy for potential buyers to contact you. Stay near your phone or specify the hours you can be reached. 4. CALL TODAY - Don't wait. An advisor will assist you in placing your ad. 442-1700 Person -to -person ads, non commercial items $1000°0 or less. Price must be stated in ad. Prepayment required. 7DAYS$CA60 5 LIN ES I URI yJJU _.: CLASSIFIEDS! 442a179j For jobs wanted; lost and found; and dents for 3 DAYS..............$14.30 sale under $250, Ads will run for 5 days as space allows.:':' : 0. 3 DAYS + Sat. &Sun I. Lillul of S hoes (approximately 20 words), 2. Limit of 4 ads per month, 7 DAYS..............$25.15 per customer. 3. One item per ad. CHARGE CARDS 4. Items for sale -non-commercial items only- WELCOME $250 or less and price must be stated in ad. 6 Pets for sale do not qualify, Yto " •.yuuratu fur etTtl,5 tnnruwI URI it appears, We will not be responsible for.incorrect ads after the FIRST DAY of publication. The publisher assumes no financiu, responsibility for errors or for the omission of copy. Liability of errors shall not exceed the cost of that portion of space occu .:cd L.. such portion -- -r.......... y". by such error. Major claims for adjustments for errors must be made within 30 days of invoice, otherwise such claims will not be considered. CANCELLATIONS: Cancellation numbers will be issued at the time of your cancellation of a classified ad. Ask for your cancellation number. This is your record of cancellation. It's hot, it's new, and it's the only one of its kind in Northwest Arkansas. 00 per day OR 3 days for $ 1200 D Hear Sunday's Garage Sale information on Friday! THE GARAGE SALE HOTLINE WILL OPEN TUESDAYS -SATURDAYS AT 7:00PM "THE BEST GARAGE SALE CONNECTION IN TOWN" ' 5lines of garage sale information in the NWAT Notified ad section t "" only in the NORTHWEST ARKANSAS TL11ES • m 1mation listing in the Garage Sale Hotline 442-1755 Company of Fayetteville, Revenue Code of 1986, as to any gradation within time deposits of any bank, "Not Revenues" means, for Interest Requirements there water transmission line and the Series 1994 Bond 2 -Legal Notices Arkansas (the "Purchaser") now or hereafter amended, such category) by both trust company or and in connection therewith and applicable regulations Moody's and S&P or, upon and loan association �(Inclad, less Operatingo any period, oExpenses ss Revenues for pal Yand be excluded nteesamount n of Treatment Plant e at Lowell, Fund in accordance with ORDINANCE NO. 3829 has prepared and distri- issued or proposed the discontinuance of either ing any investment in pools such AN ORDINANCE PROVID- buted a Preliminary Official thereunder.a provisions n Section 22 or both of such services, of such bankers accep- period, the Bonds y the satisfy Arrof t to the northern ofm this iOrdinance, the re - If the NG FOR THE ISSUANCE Statement, dated Septem- covenants in y rs part of the City in actor- in any other gnationally recog- Lances, certificates poof which "Operating Expenses"eri with moneys tS the Series dance with the recommen- etheBonds will t ofdepositedg proceeds riis OF WATER AND SEWER bar 12, 1994 (the "Prelimin- "Government Obligations" nized rating service or sit or time deposits) which, means, for any period, all 1994 Debt Service Reserve potions in the Water Master the credit of the Series SYSTEM REVENUE ary Official Statement"); means Ii) direct obligations services, to the extent that such obli- ordinary and necessary ex- Fund which may be used Planning Study and the 1994 Construction Fund BONDS, SERIES 1994, IN A and of, or obligations for the PRINCIPAL AMOUNT NOT gations are not insured by passes of operation, repair, for such purpose. "Principal Overall Design Report pre- created by this Ordinance TO EXCEED $5,500,000, WHEREAS, there has been payment the is all fees, Revenues" rates, rentals eans once he Federal rattion,oalt re boar- colla- hemaintenance 5 stem under generally insuring of and Interest Requirements" pared for the City by and applied to pay a portion OF THE CITY OF FAYETTE- submitted to the City a fully guaranteed by, the Un- and charges levied and col- teralized at all times in accepted accounting genrinci- for any as scal year of the McGoodwin, tesintWilliams and of the cost of making the VILLE, ARKANSAS' AU- Bond Purchase Agreement, ited States of America; (iii lected in connection with amounts and by obligations pies except that they shall Parity Indebtedness, means spectively, and as specified P princi- System,aapplied to any Yates in 19an and 1991,specs re- Improvements inclusive of THORIZING THE EXECU- dated September 20, 1994 obligations issued or guar- and all other income and re- as shall be permitted by not include any allowance the sum of the amounts re- in plans and specifications issuance. TION AND DELIVERY OF A (the "Bond Purchase Agree- anteed by any instrumental- ceipts of whatever kind or State law; P the Bonds' cost o f BOND PURCHASE AGREE- ment"), providing for the ity or agency of the United character derived by the for depreciation, any depo- quired by the ordinance pro- for the work prepared by sits or transfers to the cre- viding for the issuance of McGoodwin, Williams and Section 3. Authorization MENT IN CONNECTION purchase of the Bonds by States of America, whether City from the operation of (cl any repurchase, reverse dit of the Bond Fund and such Parity Indebtedness to Yates and McClelland Engi- and Terms of Bonds THEREWITH; PROVIDING the Purchaser; and now existing or hereafter the System. Gross Re- repurchase or investment the Series 1994 Bond Fund pay or to FOR CERTAIN OTHER provide for the nears. This project was Under the authority of the organized, includingsfbut not venues shall be limited to- trust with any bank d or any other fund or ac- payment of the interest on commonly known as Phase constitution and laws o lady iv1ATTERS RELATING WHEREAS, A final Official limited to those of the Fed- elude, but not be limited to, trust company organized count created for the pay- and principal f such Parity I of the Water Transmission State, including nan THERETO AND DECLAR- Statement, dated Septem- eral Financing Bank, the revenues from water sales, under the laws el any state mint of debt service on Indebtedness then out- Line project 1"Phase II. the Authorizing Legislation, ING AN EMERGENCY. bar 20, 1994 Ithe "Official members of the Farm Cre- sewer service charges, fire of the United States or any Parity Indebtedness or sub- standing with respect to Particularly Statement"), has been pre- dit System whether indivi- protection charges and in- national banking association, ordinates indebtedness sec- such fiscal year there is hereby authorized WHEREAS, the City of Fay- pared and will be distri- dually or consolidated, Fed- terest income on Revenue insurance com an or y 2. Now the Council hereby the issuance of revenue etteville, Arkansas (the bated in connection with oral Home Loan Banks, the Fund balances. NReve rs- ernnlent bond dealer report, venues da as pledge of Net Re- determines that it is neces- bonds of the City to be de - "City"), a city of the first the offer and sale of the Export -Import Bank, Govern- tending the foregoing, permitted he- "Reserve Fund Require- sary to construct or other- signated "City of Fayette - owns and operates a Bonds; and 9 g, ing to, trading with, and reunder, the Debt Service ment" means the lesser of wise make additional capital villa Water and Sewer Sys - class, ment National Mortgage As- Gross Revenues shall not recognized as a primary Reserve Fund and the Se- an amount equal to (a) ten improvements to the Sys- tem Revenue Bonds, Series public water and sewer ali)- sociation and the Tonnes- include acreage, front- dealer by the Federal Re- rtes 1994 Debt Service Re - per ity system (which system, WHEREAS, copies of the see Valley Authority; (iii) footage, tap -on, assessment serve Bank of New York serve Fund or any other ceeds e of IthOe Bonds h deter- be financed stin f articb isto1994" toin a principal vl amount together with all capital im- Preliminary Official State- evidences of ownership of and similar fees, charges, and a member of tire Sec- debt service reserve fund mined on the basis of the issuance of the Bonds. The Five Hundred Thousand P by not exceed Five Million provements thereto. is he- ment, Official Statement proportionate interests in contributions or grants de- urity Investors Protection or account created in con- stated principal amount of improvements to be made Dollars ($5,500,0001. The rein collectively called the and Bond Purchase Agree- future interest oryetyin "System"); and mint have been presented payments on obligations tiondwtht the provision corofeor mec. nus securednbyhany one of ree- c Parity Iltndebe Indebh the tedness or mum B annual ( Printhe cipal ond work continuance of the Bonds shall be special obli- to and are before the specified in clause lit of this payment (or capital inn- or more of the securities such subordinated indebted- Interest Requirements on Phase I and completed will tlbeu corn- prinncipal ofthe tandCt a interest WHEREAS, the City is au- Council; definition held by a bank or provements constituting a described in clauses lit. (ii) ness or the Renewal and the Bonds, or Ic) 125 thorized under the constitu- trust company as custodian, part of the System. per- e 11, and known as Section Ir mium anu any Bonds odn hall lion and laws of the State, NOW, THEREFORE, BE IT under which the owner of Government r (iii) of the Obligations of payments Fund, or any cent l Principal of and Interest Transmission , III Line ha Water besecured on the shall particularly Arkansas Code ORDAINED BY THE CITY the investment is the real "Guaranteed Investment provided that thee City has a obligations not payments with respect to annual and and Tank be by a statutory Annotated §§ 14-234-201 at COUNCIL OF THE CITY OF party in interest and has Contract" means invest -9 payable rin Requirements ridson the Project ("Section 1, Section mortgans lienuponand the wa- seq.; Arkansas Code Anno- FAYETTEVILLE, ARKAN- the right to perfected in the est security in- d whole circumstances in serf under oss Bonds. II, & Section pro or nos")- ter mans rtion tdSys- tated §§ 14-235-201, et SAS, AS FOLLOWS: and ndividually cagainste the bank oral ustts company thatwith any stthe City orllaitsraagen tt Revenufrom Gross lively 111e "Improvements"), button portion of the Sys- seq.; Arkansas Code Anno- obligor on the underlying which has long-term obliga- has "S&P" means Standard & Lem and l pledge of and tated §§ 14-164-401 et Section 1. Definitions. In obligations described in tions rated in one of tire teral, and that osu le cotta- "Parity Indebtedness" sion Poor of McGraw's Rating -Hill, Inc. its tth11 Section e construction sI will include payable solely from the Net seq.; and Arkansas Code addition to the terms de- clause (i) of this definition, two highest rating catego- teral is held free and clear means the 1902 Bone and successors and their as- connection "from otwo new this Ordinance. as provided in Annotated §§ 19-9-601 et fined in the preamble to and which underlying obli- ries by Moody's and S&P of claims by third parties; indebtedness of the City signs, and, if "S&P" shall water storage tanks to an shall rank on a aril of seq. (collectively the "Au- this Ordinance the ante. The Bonds following gations are not available to or, upon the discontinuance issued on a parity Ihdrizing Legislation"), to terms shall have the follow- satisfy any claim of the cue- of either or both of such Id) Guaranteed Investment urity with the Bonds in ac- shall no longer parity of sec- be dissolved or liquidated or existing 24 -inch water main, security with t h a acquire, construct, equip, ing meanings: todian or any person claim- services, any other nation- Contracts; and cordance with Section 14 of functions of a securities rat- the hC City Work involved teville,$-0Arkkan Arkansas Water and improve, maintain, operateCity of Fayet- ing through the custodian ally recognized rating sir- this Ordinance. ing agency, "S&P" shall be shall include approximately Sewer System Refunding and repair the System and "Accountant" means a firm or to whom the custodian vice or services, to issue its revenue bonds of independent certified may be obligated; lie) man- let any mutual fundlsr rated deemed to refer to any 3,470 feet of 36 -inch water and Improvement Revenue to finance capital improve- public accountants of recog- icipal obligmior s, the AAA by Moody's or S&P "Principal and Interest Re- other nationally recognized main, 7,367 feet of 30 -inch Bonds, Series 1992 (the mints to the System; and nized national standing mint of the principal of, pay- capittaovemimprovementsmoansto the he coernment tons of Gov- dery g entirelyquiren year of for any eaten- securities rating agency de- water main, 526 feet of "1992 Bonds"I. The princi- selected from time to time terest on and redemption made to the System de- applied of fife System, as signated by the City. 24" water main, and related pal of, the interest and any WHEREAS, the City Council by the City, which may beY to the. Bonds, work. redemption premium on the premium, if any, on which scribed in Section 2 of this "Maximum Principal and In- means the sum of: "Serial Bonds" means the 1"Council") believes that it the firm of accountants that are irrevocably secured by Ordinance, the cost of terest Requirements" Bonds may also be paidasis in the best interest of regularly audits the books obligations described in which is to be financed in means the maximum lal the amount required to stated stowmature hich sin aannll ual construction of two o 121 sin- moneys in the Series the City that the s au- of the provided from other N City. clause (il of this definition part by the issuance of the amount of Principal and In- pay the interest on the installments and are so de- million Y e ies 1994 thorize and issue its Water and which obligations have Bonds and is more fully de- terest Requirements for any bonds then outstanding signated in Schedule A at- age reservoirs, relatedgplod and Service Reserve Fund and Sewer System Re- "Amortization Require- been deposited in an scribed in Section 5 of this fiscalyear of the 5 stem. which isyard and certain other funds venue Bonds. Series 1994, ments" means the amounts escrow account, which is ir- Ordinance. y payable on Febru- [ached hereto. piping, access road and re- created hereby, including dated October 1, 1994, in a required to be deposited in revocably pledged to the lary 15 and on August 15 of laced work. any income received from. principal amount not to ex- the Series 1994 Bond Fund payment of the principal of. "Interest Payment Date" Investors Services a corpus such calendar year, - Arrkansasmean, the State of the investment of moneys_ ceed $5,500,000 and as for the purpose of redeem- interest on and redemption means February 15 and Au- ration organized and exist- Ib) the amount required to lot tio III o will include 6-ideposited in such funds. further described in Section ing prior to their maturity premium, if any, on such gust 15 of eachconstruction i a 36 -inch 3 of this Ordinance Ithe andp 9 9 ry year begin- ing under the laws of the pay the principal of the Ser- g "Term Bonds" means the water transmission distribution main d. The Bonds shall a ( paying rat theirthe maturity pa- ligations al obligations, hub ob- vin Februa 15, 1995. State of Delaware. its sac- al sBonds then outstanding Bonds so designated in and 12 -inch distribution dated October 1. 1994, 'abe Bonds"), to provide funds, the Term Bonds, spa- ligatiissued by any with any other available cific amounts and times of state of the United States; "Investment Obligations" and,cesso if such their assigns. ton 5i of such calendar payable on August Schedule A attached main eonv the west side of interest thereon shall funds, to finance the cost such deposits being set and Ivil municipal oblige- means any of the following, shall be dissolved or liqui- and year hereto. shall include lapproximately pinvolved payable semiannually on of making such capital im- forth in Schedule A at- tions the payment of the to the extent that the same dated or shall no longershall bruary 15 and August 15 G. provements, to establish a cached hereto. principal of and interest on are legal investments for "Trustee" means the Trus- 37,995 feet of 36 -inch we- each year, commencing Fe related debt service reserve which are insured;investment perform the functions of a (c) the Amortization Re- tee serving ase, such under ter main, 5,620 feet of bruary 15 1995. The Bonds and to pay certain expenses "Budget" means the annual however, the obligations dfunds under tmente law; securities rating agency, quirement for the Term this Ordinance, whether or- 12 -inch water main, and re- shall be issued as fully - incidental thereto; and budget of the System described in clauses (v) and d e Moody's" r shall rtobe Bonds then 121 onthg for iginal or successor, laced work. registered bonds, numbered adopted in accordance with Ivi) of this definition shall other n o refer to any the twelve 112) month per- consecutively from R-1 up - WHEREAS, the City has this Ordinance. sal Government Obligations; other nationally g agency zed sod ending on August 14 of Section 2. Financing and 3. After the proceeds of the wards, and shall be in the also be rated in one of the made arrangements for the top two highest rating (b) bankers acceptances, signaledsby tine City ncy de- such calendar year. Construction of the Im- Bonds are applied to the denomination of $5,000 or le sale of the Bonds to Llama "Code" means the Internal categories (without regard certificates of deposit or In calculating Principal and has e constructed aements. 1. T42=rich Debt City nServiceh Reserve Fund thereof. [ Each l Bond [shall C: C bear interest from the n+or_ debts and to pay interest s I - inest payment date next pre- on said Principal Amount tam (they"System'1, which thepprinc plal amount thereof with rlthe interest accrued been incurred, is resent) r ceding the date of authenti- from the Dated Date shown are transferred to the Se- to be redeemed. If any thereon.art ony, the prtion of together the stated amount has ments hereunder shall be Bonds are subject toer call the issuance of Parity Inde- cation thereof unless it is above or from the February ries 1994 Bond Fund estab- Bond is to be redeemed in presently pr orated from the date of for redemption under the btedness moneys received due and payable and consti- the Bonds' issuance), after provisions of this Ordi- therefore pursuant to Sec- authenticated as of an inter- 15 or August 15 next pre- lished by the Ordinance only, totes a charge taking into account amounts nance, except from moneys tions B and 22 of this est payment date, in which ceding the date of authenti- (the "Series 1994 Bond demption shall state also a negotiable instrument bt Cagainst hen Fund r that9e part the notice of re- This bond is declared to be a nstru the Series 1994 held in the Series 1994 other than moneys set Ordinance. event is shall bear interest cation to which interest Fund") in an amount suffi- that on or after the redemp- within the meanie from such date, or unless it shall have been paid, unless cient to pay the principal of, tion date, upon surrender of negotiable instruments law has Bond Fund for the payment aside or deposited for the Q authenticated prior to the such date of authentication interest on and any rode- such Bond, a new Bond or of the State of 9 of the not been paid, of such principal and inter- redemption of Bonds. 2. Moneys credited to the interestest and, for deposit into a Series 1994 Debt Service laj B, payment date, is a February 15 or an Au- mption premium on the Bonds in principal amount under the provisions ref Title filed thwith at there served t upon amount as been separate a is �equiredu to Ibl Bonds which are sub- Reserve Fund shall be QL: which event it shall bear gust 15 to which interest Bonds after providing for equal to the unredeemed 14, Chapter 164, Subchap• the City notice of any lien, make the amount in each mption at par plusaccrued -interest from its date, or shall have been paid, in the t to lect to t rdrode- transferred as tion 1 air)'`��° payment of operation portion of such Bond will ter 4 and is issued with the right to lien or attachment other fund or account interest up tthedae this tOrdinan e, tion provi unless at the time of au- which case from such date, and maintenance expenses be issued, unless ca at interest mon f the interest to the matte, of n the System ten from x such intent that the laws of the upon, or claim affecting the created for the Bonds shall default, in such y hereof being State of Arkansas will gov- right to receive payment ofe- fixed for redemption Ordinance put- for the payment soft on and payable on revenues. The Bonds rank On or before the third (3rd) ern its construction. Payment of, debt service on Parity Inde- steel calledto the Ordinance shall premiuf, interest on and which event it shall bear in- February 15 and August 15 on a parity of security with business day preceding the any of the money payable btedness equal to the be for redemption on terest from the date to in each year, at the Interest the $10,000,000 City of date fixed for redemption No covenant or P premium, if any on the to any of the persons amount then required to be the first Interest Payment Bonds when due. Moneys which interest has been Rate per annum specified Fayetteville, Arkansas Water for any of the Bonds out- contained in this bond or which has not been re- account; P agreement named in such requisition, in such debt service fund or Date for which the required credited to the Series 1994 paid in full, above, until payment of and Sewer System Refund- standing, the City shall de- the Ordinance shall be leased or will not be notice can be given in the Debt Service Reserve Fund said Principal Amount. The ing and Improvement Re- posit money with the Trus• deemed to be a inverse order of their any also be transferred, at 3. The Bonds shall be interest so payable on any venue Bonds, Series 1992. tee to pay the covenant released simultaneously with THIRD: To the Trustee, for maturities. the option of the City, to such interest principal of cr agreement of any past, the payment of such obli- deposit into the Series issued in the principal payment date In the Ordinance, the City and the redemption pre- present or future alderman, gation, andthe Series for t1994 Bond Fund amounts, shall mature, un- will be paid to the person covenants to maintain rates mium, if any, on the Bonds director, officer or em- Fund, uDebt Service in nsehe (c) of this st to the provi- eto provide the payment less sooner redeemed in in whose name this bond for System services suffi- or portions thereof called ployee of the City in his in- beginning inthe the gard of mption, re- of the final maturity Bondsoand the manner set forth in this (or the previous bond or cient to produce annually for redemption as well as dividual capacity, co that such requisition month following month Trustee g redemption, othe principal of the and Ordinance, shall consist of bonds evidencing the same revenues of at least one the interest accruing ficer thereof an executing this contains no item represent- in which a deficiency in the Trustee may call for . redo- the respective interest Serial Bonds and Term debt as that evidenced by hundred ten percent (110%) thereon to the redemption bond shall be liable person. any 9 payment tainage r'th tn hat thenC City Reserve t of Series t Fund DebtService created mption, ain rtn each date r Of on thereon after all other prin- Serial with the Term this bond) is registered at of the amount required for date thereof.which tcipal of and terest on the the close of business on such fiscalpay ally on o this bond or be sub- is entitled to retain at the by a withdrawal, valuation Bonds are subject to bonds has been paid, ex - Bonds having such Amorti- year to (i) j any personal liability date of such requisition. or otherwise, an amount at redemption as provided in zation Requirements as set the record date for such in- Operating Expenses, iii) pay On the date fixed for rode- or accountability by reason ceps as may be otherwise forth herein, and shall bear terest, which shall be the Principal and Interest Re- mption, notice having been of the issuance of this Upon receipt of each re- 11/12th) q of t to the amount this Ordinance such amount provided in connection with interest as set forth in first )1st) day (whether or quirements on all Bonds given in the manner and bond, redemptionof such Bonds as, with the any refunding of the Bonds. -' Schedule A attached hereto not a business day) of the and all Parity Indebtedness under the conditions herei- Sequisition, the Administrative such deficiency until the premium, if (which Schedule is incorpor- calendar month of the inter- then outstanding, the obligations bli Director shall pay Debt Service in the Series r 1994 any, will exhaust the me- 3. Moneys credited to the Pestby viii) pay nabove provided, the Bonds (Form of Assignment) the reset forth in - Debt l then Fund Heys which will be held for Series 1994 Debt Service r ''ate d herein by this payment date, check any Trustee fees, lint make or portions thereof called such requisition out of mo- is equal to the Reserve of reference), mailed to such person at required deposits into any for redemption shall be due FOR VALUE RECEIVED, ney in the Series 1994 Con- Fund Requirement, and, for the credit of the Series Reserve Fund in excess e- his address as it appears on debt service reserve funds and payable at the redemp- the undersigned, strction Fund. q date199aeonearl nd u as may such be; the Reserve Fund Require- _ 4. The Bonds shall be the bond registration books associated with the 1992 Lion price 9 deposit into a separate ac- Y Y meet and investment earn- 4,provided therefor, hereby sells, assigns, and count, such amount as is lass led, however, that no ings on moneys credited to subject to redemption prior of the City maintained by Bonds and the Bonds and plus accrued interest to transfers to maturity in accordance the Trustee. Payment of all Parity Indebtedness out- such date. If moneys suffi- unto 4. When the work consti- required to make the lass than fifty thousand del- the Series 1994 Debt -Ser- the interest on this bond standing, and Iv) make re- cient to y (Please insert luting the Improvements amount in each other debt lars ($50,0001' principal vice Reserve Fund in ex - with the provisions pertain- pay the redemption Social Security or other shall have been completed, service reserve fund or ac- amount of Bonds shall be ing thereto appearing in the shall also be made by wire quired deposits into the Re- price of the Bonds or por- identifying number of asst which fact shall b e count created in connection redemption at any Requirement i the Reserve Fund e transfer to the registered 9• called for redem Requirement may be form of Bond hereinafter gistered newel and Replacement lions thereof, to be re- nee) the within bond and all evidenced by a certificate with the issuance of Parity one time unless a lesser transferred to the Series set forth in this Ordinance. owner of this bond upon Fund. The City shall in- deemed, plus accrued inter- rights thereunder and stating the date of such Indebtedness equal to the amount shall retire all out- 1994 Bond Fund. Bonds shall be redeemed the request of such owner crease System Rates from est thereon to the date hereby irrevocably consti- completion, signed by the amount then required to be standing Bonds. On or be - only from and to the extent is such owner is the regis- time to time, as and when fixed for redemption, are t u t e s and appoints City Engineer, the balance in such debt service re- fore the third (3rd) business funds on deposit in the Se- tared owner of $1,000,000 necessary, to product Gross held by the Trustee in trust attorno to register in the Series 1994 Con- serve fund or account; andday preceding each rode- s, Moneys credited ntwith to a or more in principal B Y 9 recede, separate caccount re- ries 1994 Bond Fund are amount Revenues in the amount for the registered owners the transfer of said bond on struction Fund not reserved mption date, the Trustee available and sufficient for of the bonds of the series specified above. of bonds or portions thereof the books kept for registra- by the City for the payment FOURTH: For deposit into shall withdraw from the Se- seed to a debt service rat such purpose. of which this bond is one. P serve fund or account to be redeemed, interest on tion thereof, with full power of any remaining part of the the Renewal and Replace- ries 1994 Bond Fund and created in connection with The Bonds are further sec- the Bonds or portions of substitution in the cost of the Improvements meet Fund, to the extent set aside in separate ac- the issuance of Parity Inde- 5. The Bonds shall be This bond is one of a series ured by amounts main- thereof so called for redo- premises, shall be transferred, in the moneys are available in the counts the respective payable, with respect to of bonds, designated "City tamed in the Series 1994 mption shall cease to amounts required btedness shall be trans - of Fayetteville Water and Debt Service Reserve Fund accrue, such Bonds ordiscretion of the City, to Revenue Fund, the amount for paying forted by the Trustee in ad - principal, premium, if any, Y per- Dated: the credit of the Series necessary to cause the the interest on, the princi- cordance with the terms of and interest, in any coin or Sewer System Revenue established by the Ordi- lions thereof shall cease to 1994 Bond Fund for pay- amount therein to equal pal of and redemption pre- currency of the United Bonds, Series 1994" and nance (the "Series 1994 be entitled to any benefits q the ordinance providing vfor meet of principal of and r in- $30the 1 9 vas finance), by r mium of, the Bonds so the issuance of such Parity States of America that at aggregating in a principal Debt Service Reserve or security under the Ordi- terest on the Bonds or for the 1992 Ordinance), or called for redemption. Indebtedness. the time of payment is amount not to exceed Five Fund"l, Moneys in the Se- nance or to be deemed out- the extraordinary redemp such • legal tender for the pay- Million Five Hundred Thou- ries 1994 Debt Service Re- standing, and the registered NOTICE: The signatures) to tion of Bonds t par plus City may todeterm ner amoint e from Upon any the bpurchase ofdSection 11. Investment of 'ment of public and private sand Dollars have 0been serve Fund may be used owners of such Bonds or this assignment must cor- accrued interest in actor- time to time to be appropri- Bonds by purchase or redo- Moneys. 1. At the direc- •debts. The principal of and The Bonds have been only for the payment of portions thereof shall have respond with the names ap- dance with the Ordinance ate, provided that the mption the Trustee shall file tion of the City or absent any redemption premium issued for the purpose of principal of and interest on no rights in respect thereof peering upon the face of or retained in the Series amount to be transferred with the City Clerk a state- such direction, the Trustee on each Bond shall be pay- financing a portion of the the Bonds in the event me- except to receive payment the within bond in every 1994 Construction Fund to from the Revenue Fund and mont briefly describing such shall invest moneys in • • able to the registered cost of making certain capi- neys in the Series 1994 of the redemption price particular, without alteration pay the cost of additional deposited into such fund in Bonds and setting forth the funds or accounts in Invest - Owner thereof or his regis- tal improvements to the Bond Fund are insufficient thereof, plus accrued inter- or enl.rgement or any capital improvements, any month need not exceed date of their purchase or re- ment Obligations with me- tered assigns or legal rep- System of the City, funding for such purposes or to pay e s t to the date of change whatever, within the meaning of the one -twelfth (1/12th) of the demption, the amount of resentative at the corporate a debt service reserve and the final maturity of and the redemption. the u turity or redemption dates paying certain exbeen a Ordinance, which have amount then required to be purchase price or the consistent with the times at • • trust office of the Trustee expenses in- s respective interest on the Signature Guaranteed: been approved by the City. held for the credit of such redemption price of such which said moneys will be upon the presentation and cidental thereto. The Bonds Bonds. If a portion of a Bond shall fund. Bonds and the amount paid required for the purposes surrender thereof as the have been issued pursuant be selected for redemption, Section 6. Rate Coven- as interest thereon. The provided in this Ordinance. same shall become due and to and in full compliance Under certain circum- the registered owner ants. The City covenants 3. If in any month there Trustee shall cancel said Moneys in separate funds payable. Payment of the in- with the constitution and stances moneys in the Re- thereof or his attorney or NOTICE: Signaturesls) must that: shall be a failure to transfer Bonds in which event they or accounts may be corn- terest on each Bond shall laws of the State of Arkan- newel and Replacement legal representative shalt be guaranteed by a mom- required amount into any of will no longer be deemed be made by the Trustee on sas, including particularly Fund established by Ordi- present and surrender such bar firm of the New York (al It will continue in ef- the funds or accounts as outstanding obligations of mingled for the purpose of each interest payment date Arkansas Code Annotated nance Number 3638 and Bond to the Trustee for Stock Exchange or a com- fact the the City. The expenses in investment. • to the person appearing on §§ 14-234-201. at. seq.; adopted b the City on Au- g present schedules described above, then the p P by payment of the principal mere ial bank or a trust of rates for water and amount of any deficiency connection with the dutch- 2. Obligations purchased •. the registration books of Arkansas Code Annotated gust 18. 1992, may also be amount thereof so called company, sewer services established shall be added to the use or redemption of any as an investment of mo- the City as maintained by §§ 14-235-201, at seq.; Ark- used to pay principal of and for redemption and the re- by Ordinance No. 3491, amount otherwise required Bonds shall be paid by the apses Code Annotated §§ interest on the Bonds if demption pbyCity y q City crea in any fund orOrdinance account the Trustee hereinafter pro- p premium, if any, Section 6. Series 1994 adopted the on Jul to be transferred into said or the Trustee from created by this vided for as the registered 14-164-401, at seq.; and moneys in the Series 1994 on such principal amount, Construction Fund. 1. 17, 1990, and by Ordinance funds or accounts in the Revenues after the applica- shall be deemed at all owner of such Bond • (or Arkansas Code Annotated Bond Fund and Series 1994 and the Trustee shall au- The City hereby creates and No. 3637 adopted by the next succeedin month. tion of the Revenues as re- times to be a part of such previous Bond or Bonds §§ 19-9-601, et seq. and Debt Service Reserve Fund thenticate and deliver to or establishes the Series 1994 City on August 18, 1992 g quired by subsections 2 and times to be a part of such pursuant to Ordinance No. are insufficient for such upon the order of such re- Construction Fund, which (which ordinances are incor- 4. Any moneys remaining 3 of Section 8 hereof, fund or loss due and any in - evidencing the same debt p as that evidenced by such 3829 of the City adopted by purposes. gistered owner or his legal shall be maintained by the y st or n loss to l be the City Council of the City once a herein by this are in the Revenue owiFund imme- vestment thereof hshall be Bond) at the close of bust• representative, without City as a segregated funG once and which rates are diately following the trans- 5. All moneys that the charged to the resperrt?"c, ness on the record date for on September 20 1994 (the The Bonds may be re- charge therefor, for the un- and to the credit of which herein collectively called the fers required by the 1992 Trustee shall have with- fund or account for ✓vhich such interest, which shall "Ordinance"). The Ordi- deemed from surplus funds redeemed portion of the there shall be deposited "System Rates"). Ordinance and this Ordi- drawn from the Series 1994 the investment was made be the first (1st) day nance permits the City to remaining in the Series principal amount of the proceeds of the Bonds as nance, and before additional Bond Fund or shall have re- except as otherwise pro- (whether or not a business issue, under certain circum- 1994 Construction Fund of- Bond so surrendered, a directed in this Ordinance. Ib) Application of the Sys- deposits of Gross Revenues calved from any other vided in this Ordinance, day) of the calendar month stances, Parity Indebted- ter completion of the Im- new Bond or Bonds of the tam Rates will produce dur- are made into the Revenue source and deposited with C of such interest payment ness (as defined in the Or- provements, in inverse or- same maturity, of any au- 2. The cost of the Im- ing each fiscal year of the Fund, may be used, at the the Trustee for the ouroose 3. Investments in any -date, by check mailed to dinance) that may be on a der of maturity, on the first thorized denominations and provements shall be paid System Gross Revenues of option of the City, for any of paying any of the Bonds fund or account shall be such person at his address parity of security with the interest payment date for bearing inter4st at the from the Series 1994 Con- at least one hundred ten lawful purposes, hereby secured, either at evaluated at least annual) as it appears on such re- Bonds and subordinated in- which the required notice same rate. struction Fund as herein percent (110%) of the the maturity thereof or y gistration books. Payment debtedness payable from can be given at a price of provided, For the purposes required upon call or redemption,aby the s may City appropriate. the Trustee, y amount for such 5. On or before the third P or y of determining For f the interest ay the Net Revenues subordinate par plus accrued interest to The Bonds ore issuable in of this Section, the cost of fiscal year to Ii) pay Operat- (3rd) business day prated- for the purpose of paying the purpose of determining -'�.tt to the Bonds and Parity In- the date fixed for fully registered form in the the Improvements shall in' ing Expenses, fill pay Princi- ing each redemption date any interest or redemption ends shall also be made g P the amount in any fund r •���.-� .y wire transfer to the re- debtedness. Reference is redemption. denomination of $5,000 or elude, without intending pal and Interest Require- for any Bonds called for re- Premium on any of the hereby made to the Ordi- an integral multiple thereby Bonds hereb account, the City • 'gistered owner o - nance and to all ordinances The Bonds maturing on or thereof. Upon surrender strict or o limit or to re- meets on the Bonds and all demption prior to maturity, r secured, shall Trustee shall value a. $1,000,000 or more in prin- Pto extend any Parity Indebtedness then the City shall transfer to be held in trust for the re- vestment Obligations tidal amount of the Bonds supplemental thereto for after August 15, 2005, are thereof at the corporate proper definition of such outstanding, (Iii) pay any the Trustee for deposit into spective registered owners dited to such fund or ac - upon the request of such the provisions, amoung subject to redemption prior trust office of the Trustee cost under the provisions of Trustee fees, (Iv) make re- the Series 1994 Bond Fund of such Bonds. But any mo- count at the price at which owner, others, with respect to the to maturity, at the option, of together with an assign- this Ordinance, the quired deposits into any from any available funds of neys that shall be so set such Investment Oblige - nature and extent of the the City, on and after Au- mont duly executed by the following: debt service reserve funds the City an amount suffi- aside or deposited by the 6. The Bonds shall beer security, the rights, duties gust 15, 2004, from funds registered owner or his at- associated with the 1992 cient, o ether with any Trustee and that shall re- floes are redeemable hbye the and obligations of the City, 9 holders or owners thereof the facsimile signatures of g from any source, in whole torney or legal represents- (a) obligations incurred for Bonds and the Bonds and other funds in the Series main unclaimed by the re- at their option if so re- the Mayor and City CIetk of the Trustee appointed or in part at any time, et tive in such form as shall labor and materials and to all Parity Indebtedness out- 1994 Bond Fund available gistered owners of such deemeble, or, if not so re - the City and a facsimile of under the Ordinance and par plus accrued Interest to be satisfactory to the Trus- contractors, builders and standing, and (v) make re- for such purpose, to pay Bonds for the . period of deen,able, at the tosser of Ythree 131 years after _tea (;the opal,: of such Invest-,. ,, - the osle i seat of the City the' regBonds. an owners of the date fixed for tee, Bonds may, at the op. with th )men in r connection n quired deposits Into the Rs- the interest on, the princi- _._.. - . y- shall ba imprintetlthoreon. the Bonds, end the terms redemption. tion of the re'•'•t-••-•----•--- ` - •-�---•--� �--...- ---gistered with the construction of en-. newel + nd �R 1 win n •may .-._- .� �f1 dy -- e - e. debtedness. Reference Is redem tion. denominaoo.. _ wire transfer to the o f P n ur= rnter,dmc—P=:—a �.r• hereby made to the Oral- any in egret multiple to limit or to re- t a onda an a damp on prior $ I Ste red owner o f 9 P thereby menu on the Bones end an the City ht r maturity, to benhs hfi in trust secured steel ; Truf stee shall value a `-1-' $1,000,000 or more in prin- nance and to all ordinances The Bonds maturing on or thereof. Upon surrender strict or to extend. any Parity Indebtedness then the City shall transfer to be held in trfor the re vestment, Obligations': cipal amount of the Bonds supplemental thereto for after August 15, 2005. are thereof at the corporate proper definition of such outstanding. (III) pay any the Trustee for deposit into spective registered' owners dited to such fund or so - upon the request of such the provisions, emoung subject to redemption prior trust office of the Trustee cost under the provisions of Trustee fees, (iv) make re- the Series 1994 Bond Fund of such Bonds. But any mc- count at the price at whichothers, with Oblige - owner, nature and extent t to the to of the themCiuri on atthe after option, me tther with an dul executed by assign- followinOrdinance , the quired deposits into any from any available funds of neys that shall be so set such Investment Oblige - security, the rights, duties gust 15, 2004, from funds registered owner or his at- g• debt service reserve funds the City an amount suffi- aside or deposited by the lions are redeemable by the 6. The Bonds shall bearassociated with the 1992 clent, together with any Trustee end that shall re- holders or owners thereof the facsimile signatures of and obligations of the City, from any source, in whole torney or legal represents- (a) obligations incurred for Bonds and the Bonds and other funds in the Series main unclaimed by the re- at their option if so re - the Mayor and City Cl%k of the Trustee appointed or in part at any time, at tive in such form as shall labor and materials and to all Parity Indebtedness out- 1994 Bond Fund available gistered owners of such deemable, or, if not so re- the City and a facsimile of under the Ordinance and par plus accrued interest to be satisfactory to the Trus- contractors, builders and standing, and Iv) make re- for such purpose, to pay Bonds for the period of deemable, at the lesser of the seal of the City the registered redd owners tenee rsrm of he date fixed for teen Bonds onthe say, at the op- materialmen in connection quired deposits into the Re- the interest on, the princi- three (3) years after the tit the cost of such invest - the be official wanted thereon.B._redemption.registered with the construction of. en- newel and Replacement pal.of and any premium on date. on which.sucfP Bonds, ment Obligations minus the pro - In 'case any officer a facsl- upon"wmlcn-Boons"are owner thereof, be ex- largements, improvements Fund. The City shall in- the Bonds to be redeemed the interest or any reiiern ...�.offi �:.... .....e issued and secured. A copy Bonds maturing on Auqust changed for an equal acorn- a_ nr_i nxt.?nsinns or other c.,etem .. _ _ amortizationany pre- _?; of "' ••••'"" '" of the Ordinance is on file 15 in the ears 1995 to principal -• -lease Rctcc from p,.r'ua"t t., 'mac" man, tic.. mium or plus the amortize - shall appear on any of` the years gate rinci al amount of work, for machinery and time to time, as and when 1 have become due and pay- tion of any discount thereon Bonds shall cease to be at the corporate trust office 2004, inclusive, are desig- Bonds of the same matur- equipment, and for the re- necessary, to produce Section 9. Operation and able shall be remitted to and (ii) the market value of o such officer before the of the Trustee and, by the nated Serial Bonds. Bonds ity, of any authorized de- storation of property do- Gross Revenues in the Maintenance Fund. 1. The the State Treasurer or to such Investment Oblige - Bonds shall have been de- acceptance of this bond, maturing on August 15 in nominations and bearing in- maged or destroyed in con- amount specified above. City shall deposit to the such other officer, board or the registered owner hereof the years 2005 and 2008 terest at the same rate. nection therewith;en-lions, provided that invest - livered, credit of the cFund Operation and body as may then be the tech Obligations Debt ..: livered, such Bonds may, assents to all of the provi- are designated Terms titled by law to receive the nevertheless, be delivered Section Other Funds. Maintenance Fund moneys the Series 1994 Debt as herein provided and may sions of the Ordinance. Bonds. The Term Bonds The Trustee shall keep at Ib) all direct costs of the 1. The City hereby incorpo- received therefor pursuant same, and thereafter the re- Service Reserve Fund, if be issued as if the person mature August 15, 2008, its corporate trust office the Improvements described in rates by reference City Or- to Section 6 of this Ordi- gistered owners of such not so redeemable, shall be whose facsimile signature The Bonds are special obli- and are subject to mandat- books of the City for the the plans and specifications dinance No. 3638, passed nance and the 1992 Ordi- Bonds shall look only to the valued at the cost the pears on such Bonds had gallons of the City and the cry redemption in part by registration of transfer of for the improvements; on August 18, 1992 (the nance. State Treasurer or to such principal of, interest on and lot on any August 15 on Bonds. The transfer of this "1992 Ordinance"), which other officer, board or body, minus the amortiz plus t ceased to hold such of- g Y any premium or plus ice. Any Bonds may bear any redemption premium and after August 15, 2005, bond may be registered (c) the cost of acquiring authorized the issuance of 2. Moneys in the Opera- as the case may be, for amortization of any discount the facsimile signatures of on the Bonds are secured at the principal amount only upon such books upon by purchase, if such purch- the 1992 Bonds, and estab- lion and Maintenance Fund payment and then only to thereon. such persons who at the by a statutory mortgage lien thereof plus accrued inter- the surrender hereof to the ase shall be deemed expe- lished and created the fol- shall be solely for the par- the extent of the amounts time of the execution of upon the water transmis- ested to the date of redo- Trustee together with an dient, and the amount of lowing funds: pose of paying Operating so received without any in- Section 14. Parity Inde. such Bonds shall be duly sion and distribution portion mption, from sinking fund assignment duly executed any award or final judgment Expenses. terest thereon, and the btedness, 1. The City authorized or hold the of the System and a pledge installments which are re- by the registered owner he- in any proceeding to ac- (a) Construction Fund Trustee shall have no re- of and payable solely quired shall be entitled to issue . proper office in the City P Y from to be made in reof or his attorney or legal quire by condemnation, (b) Revenue Fund Section 10. Series 1994 sponsibility with respect to and incur indebtedness sec - though at the date of the the Net Revenues (as do- amounts sufficient to re- representative in such form such land, property rights, (c) Operation and Mainte- Bond Fund. 1. The Trus- such moneys. ured on a parity with the Bonds such persons may fined in the Ordinance) of deem on August 15, of as shall be satisfactory to rights -of -way, franchises, once Fund tee shall deposit to the cre- the City's water and sewer each principal p any PBonds to refund any out- -, have been of author- y ty particularly year the rinci al the Trustee. on sfsuch easements, and other inter- (d) Bond Fund dit of the Series 1994 Bond 6. If there shall be insuffi- standing Bonds or Parity In- -• ized or have held such system, as more amount of such Bonds registration of transfer, the ass in lands as may be le) Debt Service Fund and any separate ac- eient moneys in the Series debtednessor to finance office, described in the Ordinance, specified for each of the Trustee shall deliver in ex- deemed necessary or con- Reserve Fund count with respect to a 1994 Bond Fund, after all the cost of construction any In no event shall the Bonds years shown below: change for this bond a new venient in connection with (f) Renewal and Replace- debt service fund or ac- required transfers thereto future extensions, hotter - 7. The Bonds may be ex- constitute an indebtedness Bond or Bonds, registered the improvements, and the meet Fund count created in connection have been made, to pay in meets or improvements to r changed and registered and of the City within the YEAR AMOUNT in the name of the transfe• amount of any damages in- with the issuance of Parity full interest on, principal of f ri transfers of the Bonds may meaning of any constitu- lee, of any authorized de- cident thereto; The City hereby creates and indebtedness moneys re- and any premium due on the System InThd amount s be registered in accordance tional or statutory debt urn- 2005 $455,000 nominations, in an aggro- establishes the following ceived therefore yany ovd for theun funding ng ..with theprovisions itation or restriction. 2006 $480,000 pursuant r inipal payment date may provide for the pertain- gate principal amount equal (d) expenses of admi- funds: to Section 8 of this or principal payment date of interest for such period • ing thereto appearing in the 2007 $510,000 to the unredeemed principal nistration properly charge- Ordinance. the Trustee shall, on the as the City may determine, form of Bond hereinafter THE TERMS AND PROVI- 2008 $540,000 amount of this bond, of the able to the work constitut- (a) Series 1994 Bond Fund second (2nd) business day the funding of a debt ser- '`set forth in this Ordinance. SIONS OF THIS BOND ARE same maturity and bearing ing the Improvements, (b) Series 1994 Debt 2. On or before the third prior to such date, with- vice reserve in such CONTINUED ON THE RE- If less than all of the Bonds interest at the same rate, legal, architectural and engi- Service Reserve Fund (3rd) business day preced- draw from the Series 1994 amount as the City may de - 8. No Bond shall be valid VERSE HEREOF AND of any one maturity shall be nearing expenses and fees, (c) Series 1994 Construction ing each interest payment Debt Service Reserve Fund termine and the payment of or become obligatory for SUCH CONTINUED TERMS called for redemption, the in all cases in which Bonds cost of audits and of pre- Fund date or redemption date for and deposit in immediately certain expenses in connec- any purpose or be entitled AND PROVISIONS SHALL particular Bonds or portions shall be exchanged or the paring and issuing the any of the Bonds outstand- available funds an amount lion with the issuance of ,,. to any benefit or security FOR ALL PURPOSES HAVE of Bonds of such maturity transfer of Bonds shall be bonds, fees and expenses The Construction Fund, Re- ing, the Trustee shall with- equal to such deficiency. such Parity Indebtedness. under this Ordinance until it THE SAME EFFECT AS IF to be redeemed shall be registered as provided of consultants, financing venue Fund, Operation and draw from the Series 1994 '..shall have been authenti- SET FORTH AT THIS selected by lot by the Trus- above, the Trustee shall au- charges, taxes or other gov- Maintenance Fund, Re- Bond Fund and deposit in 7. If there shall still be 2. Prior to issuing Parity cated by the execution by PLACE, tee in such manner as the thenticate and deliver at the ernmental charges lawfully newel and Replacement trust in immediately avail- insufficient moneys on de- Indebtedness the City shall _,. the Trustee of the cenifi- Trustee in its discretion earliest practicable time assessed during such work, Fund, and Series 1994 Con- able funds an amount suffi- posit with the Trustee, after obtain an Accountant's or sate of authentication en- IT IS HEREBY CERTIFIED, may determine; provided, Bonds in accordance with premiums on insurance in struction Fund shall be cient to enable the Trustee all required deposits thereto Consulting Engineer's certi- dorsed thereon. RECITED AND DECLARED however, that the portion of such provisions. All Bonds connection with such work, maintained by the City as to remit by mail or wire have been made as pro- ficate to the effect that Net that all acts, conditions and any Bond to be redeemed surrendered in any such ex- premiums' for bond insur- segregated funds. The Se- transfer, as the case may sided above in this Section Revenues for each of the Section 4. Bond Form, things required to exist, shall be in the principal change or registration of once, initial set-up fees and lies 1994 Bond Fund and be, to the registered own- to pay in full the interest two fiscal years preceding The Bonds and the en- happen and be performed amount of $5,000 or some transfer shall forthwith be annual fees for letters of Series 1994 Debt Service ers of the Bonds the on, principal of any pre- the year in which such in- dorsements thereon shall precedent to and in the is- multiple thereof and that, in cancelled by the Trustee. credit, lines of credit, Reserve fund shall be main- amounts required to pay in- mium due on any interest debtedness is proposed to be in substantially the tot- suance of this bond do ex- selecting Bonds for reds- The City or the Trustee standby bond purchase tamed by the Trustee as se- terest on the Bonds due on payment date or principal be issued were not less lowing form and the Mayor ist, have happened and mption, the Trustee shall may make a charge for agreements or other similar gregated funds, such date and Trustee fees, payment date or redemp- than one hundred twenty and City Clerk of the City have been performed in treat each Bond as repro- shipping and out-of-pocket credit enhancement or liq- and such amount shall be lion date the City shall im- percent (120%) of the Max - are hereby authorized and due time, form and manner senting that number of costs for every such ex- uidity enhancement devices Moneys deposited in each so applied, mediately withdraw from imum 'Principal and Interest directed to make all recitals as required by law and that Bonds which is obtained by change or registration of and all other items of ex- of such funds shall be ex- the Renewal and Replace- Requirements on all Bonds contained therein: the indebtedness repre- dividing the principal transfer of Bonds sufficient pense not elsewhere in this pended only as set forth in 3. On or before the third ment Fund and deposit in and any Parity Indebtedness sented by the Bonds, amount of such Bond by to reimburse it for any tax Section specified, incident this Ordinance. )3rd) business day preced- trust with the Trustee in then outstanding and the UNITED STATES OF together with all other obli- $5,000. If less than all of or other governmental to the work constituting the ing each principal or sinking immediately available funds proposed Parity Indebted - AMERICA, STATE OF gations of the City, does the Bonds stated to mature charge required to be paid Improvements and the plat- 2. The City may, in con- fund redemption payment an amount equal to such ness. In addition, the City ARKANSAS, COUNTY OF not exceed any constitu- on different dates shall be with respect to such ex- ing of the same in opera- nection with the issuance date for any of the Bonds deficiency. may issue Parity Indebted - WASHINGTON tional or statutory limitation, called for redemption, the change or registration of lion; and of Parity Indebtedness, cre- outstanding, the Trustee ness to refund any out - particular Bonds or portions transfer, but no other ate other funds under this shall withdraw from the Se- 8. Moneys credited to a standing Bonds or Parity in' No. R-_ $ This bond shall not be valid thereof to be redeemed charge shall be made for (e) any obligation or ex- Ordinance as may be ries 1994 Bond Fund and separate account with re- debtedness without obtain - until the Certificate of Au- shall be called in inverse or- exchanging or registering pense hereafter incurred by necessary or convenient, deposit in trust in immedi- specs to a debt service ing such certificate if the CITY OF FAYETTEVILLE thentication endorsed he- der of their maturities, the transfer of Bonds. The the City for any of the fore- ately available funds the fund or account created in average annual Principal and WATER AND SEWER SYS- reon shall have been signed Trustee shall not be re- going purposes, including Section 8. Revenue Fund, amount required to pay connection with the is- Interest Requirements until TEM by the Trustee. Not more than sixty (60) quired to exchange or regis- the cost of materials, sup- 1. The City shall cause all principal of the Bonds due suance of Parity Indebted- final maturity for the Parity REVENUE BOND, SERIES nor less than thirty (30) ter the transfer of any Bond plies or equipment Turn- Gross Revenues to be on such date and Trustee ness shall be transferred by Indebtedness proposed to 1994 IN WITNESS WHEREOF, days before the redemption during a period beginning at ished by the City in connec- promptly deposited to the fees, and such amount shall the Trustee in accordance be issued are not greater the City of Fayetteville, Ark- date of any Bonds to be re- the opening of business fif- tion with the work consti- credit of the Revenue Fund. be so applied. with the terms of the ordi- than the average annual Rate of Interest: ansas, has caused this bond deemed, whether such re- teen (15) days before the tuting the Improvements nance providing for the is- Principal and Interest Re - to bear the facsimile signs- demption be in whole or in day of the mailing of a no- and paid for by the City out 2. Commencing on the 4. Additional moneys held suance of such Parity quirements until final matur- Maturity Date: lures of its Mayor and its part, the City shall cause a tice of redemption of Bonds of funds other than moneys day following the delivery in the Series 1994 Bond Indebtedness. ity for the Bonds or the City Clerk, thereunto duly notice of such redemption or any portion thereof and in the Series 1994 Con- of the Bonds and thereafter Fund may be applied at the Parity Indebtedness prop - Dated authorized, and its official to be filed with the Trustee ending at the close of busi- struction Fund, not later than the fifth (5th) option of the City as a cre- Section 11, Renewal and osed to be refunded. Date: October 1, 1994 seal to be imprinted he- and the Trustee shall mail, ness on the day of such business day preceding the nit toward the required pay- Replacement Fund. 1. In reon, all as of the Dated postage prepaid, such no- mailing or of any Bond 3. Before any such pay- fifteenth (15th) day of each ments into the Series 1994 accordance with the provi- Net Revenues may be ad- CUSIP: Date. tice to the registered owner called for redemption in ment shall be made, there month, the City shall trans- Bond Fund pursuant to Sec- sions of the 1992 Ordi- justed for the purpose of of each Bond to be re- whole or in part pursuant to shall be filed with the Ad- far from the Revenue Fund Lion 8 hereof or at the op- nance, if deductions are the test described above by Registered Owner: CITY OF FAYETTEVILLE. deemed in whole or in part the Ordinance. ministrative Services Direc- to the following funds, in tion of the City to the re- made therefrom, the Re- including a Consulting Engi- ARKANSAS at his address appearing for of the City or one or the order indicated, the tirement of the Bonds as newal and Replacement neer's estimate of addi- '•P r i n c i p a I Amount: upon the registration books The registered owner of more other officers or em- amounts set forth below: follows: Fund shall be replenished in tional Net Revenues to be 'Dollars (facsimile cionati r l of the City. Such notice this Bond is required to ployees of the City desig- accordance with the provi- derived from existing cus- Mayor may also be given to such give the Trustee written no- nated for such purpose by FIRST: As required by Or- (a) At the direction of the sions of the 1 9 9 2 tomers of the System ( or THE CITY OF FAYETTE- national depositaries and tice of ownership hereof the City (collectively the dinance No. 3638, a deposit City the Trustee shall en- Ordinance. existing customers of any VILLE, ARKANSAS (the (facsimile sinnahurel wire services used to distri- and of the address to "Administrative Services Di- into the Operation and deavor to purchase any facilities to be acquired in City Clerk bute information relating to which interest City"), a city of the first payments rector") a requisition, Maintenance Fund of the Bonds secured hereby and 2. Subject to the provi- connection with any exten- class, duly created under municipal bonds in such are to be mailed. The City signed by the City Engineer amount necessary to cause then outstanding, whether sions of Section 10 of this sion, betterment or im- the laws of the State of manner and at such time as and the Trustee may deem or one or more other offic- moneys therein to equal or not the bonds shall then Ordinance, moneys in the provement to the System Arkansas. for value re- (SEAL) the Trustee may deem ap- and treat the person in ers or employees of the the System's anticipated be subject to redemption, Renewal and Replacement described in clause iii) of ceived, promises to pay to propriate. Failure so to mail whose name this bond is City designated for such Operating Expenses, as on the most advantageous Fund shall be used solely this paragraph) resulting the Registered Owner CERTIFICATE OF or give such notice or any registered as the absolute purpose by the City (collet- shown by the Budget of terms obtainable with lea- for the purpose of paying from (i) System Rate in - shown above, or registered AUTHENTICATION defect therein shall not af- owner hereof (whether or lively the "City Engineer"), proposed operating ex- sonable diligence, the price the cost of necessary re- creases adopted before the assigns or legal represents- fact the validity of the pro- not this bond shall be over- stating: penses adopted by the City not to exceed the principal pairs or replacements due Parity Indebtedness is _, tive, upon presentation and This bond is one of the City ceedings for such redemp- due) for the purpose of re- for the then current fiscal of and interest on the to the depreciation of the issued and (ii) contemplated surrender of this bond at of Fayetteville, Arkansas Lion as regards registered ceiving payment of, or on (a) the item number of year, for the next succeed- Bonds plus the amount of System and not paid for extensions, betterments, the corporate trust office of Water and Sewer System owners to whom such no- account of, principal hereof such payment, ing two months; the redemption premium, if with moneys in the Opera- and improvements to the Bank of Oklahoma, N,A. Revenue Bonds, Series tice was given as required. and interest due hereon any, which might on the tion and Maintenance Fund System to be finance in �- '(the "Trustee"1, in the city 1994 described herein. Each such notice shall set and for all other purposes, Ib) the name of the person SECOND: To the Trustee, next redemption date be and costs of damage whole or in part with the--. "1f Tulsa, Oklahoma, the Bank of Oklahoma, N.A., forth the date designated and neither the City nor the to whom such payment is for deposit into the Series paid to the registered own- caused to the System by proceeds of the Parity In \ L'rincipal Amount shown Trustee for redemption, the rede- Trustee shall be affected by due, 1994 Bond Fund. an ers of the Bonds under the unforeseen catastrophes. btedness proposed to •_Iubove on the Maturity Date By:_________________________mption price to be paid, the any notice to the contrary. amount equal to one -sixth provisions of this Ordinance issued or to be construct shown above (unless this Authorized Signatory maturities of the bonds to (c) the amount to be paid (1/6th) of the interest due regarding redemption if the Section 12. Series 1994 during the then current or bond shall have been called be redeemed and, if less In certain events, on the including any applicable on the outstanding Bonds Bonds should be called for Debt Service Reserve next succeeding fiscal year for prior redemption, in Date of authentication: than all of the Bonds of any conditions, in the manner sales tax, on the next Interest Pay- redemption on the date Fund. 1. The Trustee with any other available which case on the redemp- one maturity then outstand- and with the effect set ment Date plus one -twelfth from moneys in the Bond shall deposit to the credit funds of the City (as if Lion date), in such coin or (REVERSE OF BOND) ing shall be called for rede- forth in the Ordinance, the (d) the purpose by general ()/12th) of the principal due Fund. However, no such of the Series 1994 Debt completed and placed in currency of the United mption, the distinctive cam- principal of all the Bonds classification for which the on the outstanding Bonds purchase shall be made by Service Reserve Fund and service). States of America as at the The Bonds are special obli- bars and letters, if any, of then outstanding under the obligation to be paid was on the next principal or the Trustee within the per- any separate account with • time of payment shall be gations of the City payable such Bonds to be re- Ordinance may become or incerrod, sinking fund redemption iod of forty-five (45) days respect to a debt service 3. Nothing in this Ordi- legal tender for the solely from the revenues of deemed and, in the case of may be declared due andPp g, Y reserve fund or account nance shally g vat' payment date ( rrst ay- next nt Datn nn Interest prohibit or rin City ment of public and private the City's water and sewer any Bond to be redeemed payable before the stated (e) that the' obligation in however, that the first pay- Payment Date on which the created in connection with from issuing or incurring in- debtedness secured by the or instrumentality and shall ences but no such rescis- the trusts harnhy created or ;. •+ in ice provisions of this such dinstrument shall be price of $5 425.750 principal 7p l trustee in the Net He- this institution, nl be l to ••�• „�•a„�o� ririhhaie be paid for as the charges lion or annulment shall in the enforcement of any Ordinance, to the Bonds andanyParity accrue, except as hereina- extend to or affect any sub- rights and powers hereun- delivered promptly e. the 198.65%1 of the principal venues, funds and accounts this Section shall be held in Indebtedness. Bove otherwise provided. sequent default or impair der, until it shall be inde- Ib) City to the Trustee. The amount thereof), plus mentioned in this Ordinance trust, and the principal of the amount on deposit Trustee may also be re- accrued interest thereon shall thereupon cease, de- and interest on said oblige. The revenues so received any right consequent there- mnified to its satisfaction with it at the end of such moved at any time for any from October 1, 1994, to (ermine and become void, tions when received, and Section 15. Insurance shall be deemed to be on. against any and all costs month to the credit of each breach of trust or for acting the date of delivery thereof, and the City shall have no said moneys, applied to the While any Bonds are out- Gross Revenues and shall and expenses, outlays and such fund and account, or proceeding standing, the City coven- be used and accounted for Section 19. Enforcement counsel fees and other rea- oP gin violation of The Bond Purchase Agree- obligation Bwith respect to payment, when due, of the ants and agrees to insure in the same manner as the of Remedies. 1. Upon the sonable disbursements, and (cl c for failing r act or nth, sub t is hereby approved in - such nt Bonds ri for the principal prel of, the interest d a brief description of teed in accordance with, substantially the form exhi- payment of the principal, of the premium, if any, and at all times keep in- other Gross Revenues, happening and continuance against all liability; the Trus- all obligations held by it as any provision of this Ordi• bites at this meeting, and redemption premium, if any Bonds payable therefr '?j ,r sured, in the amount of the of any event of default tee may, nevertheless, be- an investment of moneys in nance with respect to the the Mayor of the City is and interest thereon solely actual value thereof, by a (hl So long as any Bonds specified in Section 18 he- gin suit, or appear in and each such fund and duties and obligations of hereby authorized to axe- from the moneys or Defea- Section 26. Miscellaneous. responsible insurance com- or Parity Indebtedness is reof, then and in every defend suit, or do anything account, the Trustee, by any court of cute, acknowledge and de- sance Obligations deposited 1. The Mayor, the City pany or companies author- outstanding, the City will such case the Trustee may else in its judgment proper competent jurisdiction, liver the Bond Purchase pursuant to this Section, Clerk and other officers of iced and qualified under the not mortgage, pledge or and upon the written re- to be done by it as such (d) the amount applied to upon the application of the Agreement and the City and the Trustee in such the City are hereby empow- laws of the State to as- otherwise encumber the quest of the registered Trustee, without indemnity, the purchase or redemption City or the registered own- Clerk of the City is hereby case, on demand of the ered to execute and deliver sume the risk thereof, all System or any Gross Re- owners of not less than ten and in such case the City of Bonds under the provi- ers of not less than five authorized to attest the City, shall release this Ordi- all documents, certificates properties of the System venues and will not sell, percent 110%l in aggregate shall reimburse the Trustee sions of this Ordinance and percent 15%) in aggregate same and affix the seal of nance and shall execute and other instruments that other than water storage lease or otherwise dispose principal amount of the for all costs and expenses, a description of the Bonds principal amount of the the City thereto. Any such documents to evi. may be necessary or appro- tanks, mains and lines for of all or any substantial por- Bonds then outstanding outlays and counsel fees or portions of Bonds so Bonds then outstanding, changes to the Bond Parch- Bence such release as may priate under the terms of the transmission, distribu- tion of the same except as shall, proceed to protect and other reasonable dis- purchased or redeemed, use Agreement may be ap- be reasonably required by the Bond Purchase Agree- tion or collection of water provided in Section 14 of and enforce the rights of bursements properly in- and 16. If at any time hereaf- proved by any officers of the City, and shall turn over ment or to effect the pur- or wastewater against loss this Ordinance and except the registered owners of tarred in connection there- ter the Trustee shall resign, the City executing such do- to the City any surplus in poses of this Ordinance. or damage from fire, light- for such replacements, sub- the Bonds under the Au- with, provided that the 1e) any other information be removed, be dissolved cument, their execution and any fund and account in the ping, tornado, winds, strike, stitutions or other disposi- thorizing Legislation or Trustee will inform the City that the City may reason- or otherwise become incap• delivery to constitute con- Bond Fund and all balances 2. This Ordinance shall malicious damage, explo- tions of properties of the other applicable State law of any such action that ably request, able of acting, or the bank clusive evidence of such remaining in any other not create any right of any sion, and against loss or System as shall be neces- and this Ordinance by such might require the City to or trust company acting as approval. funds and accounts other kind and no right of any damage from any other sary or incidental to the ef- suits, actions or special pro- reimburse the Trustee be- All records and files pertain- Trustee shall be taken over than moneys held for the kind shall arise hereunder causes customarily insured ficient operation of the Sys- ceedings in equity or at fore commencing such ac- ing to each such fund and by any governmental offi- Section 22. Delivery In- redemption or payment of pursuant to it until the against by private compa- tern as a revenue producing law, either for the specific tion and that such reim- account in the custody of cial, agency, department or struction. 1. When the Bonds or the interest Bonds authorized hereby nies engaged in a similar enterprise, performance of any coven- bursement shall be subject the Trustee hereunder shall board, the position of Trus- Bonds have been executed thereon for application to are issued and delivered, type of business. In the ant or agreement contained to the provisions of the be open at all reasonable tee shall thereupon become by the facsimile signatures any lawful event of loss, the proceeds (i) In the event the offices herein or in aid or execu- second paragraph of sub- times to the inspection of vacant. If theg purposes of the of such insurance shall be of the Mayor, City Clerk or lion of any position vac- - of the Mayor and City Clerk City as the Council shall Or- 3.Ordinance The provisions yf tec- power f rce- thctiCi 6 of l a Secti m. a rep Ciry and ss nad thents City antTrufoe nyall become of the City pan tde heal n, (ermine; hall be, ton Oe etare hereby bland if applied solely toward the Alderman of the City Court- granted or for the enforce- the City shall fail to make representatives and the City ant for any of the foregoing the City imprinted thereon, dinance shall be, continue tared to be severable if reconstruction, replacement, cis shall be abolished, or ment of any proper legal or such reimbursement, the may make copies thereof. reasons or for any other as herein provided, they and remain in full force and any such provision shall for or repair of the System, any two or more of such equitable remedy, as the Trustee may reimburse it- reason, the City shall ap- shall be delivered to the effect; provided, however, any reason be held illegal or and in such event the City offices shall be merged or Trustee, being advised by self from any moneys in its 8. The Trustee additionally point a Trustee to fill such Trustee, which shall authen- that in the event Defea- invalid, such holding shall shall, with reasonable consolidated, or in the counsel, shall deem most possession under the provi- shall be responsible for the vacancy. The City shall ticate them and deliver sance Obligations shall be not effect the validity of the promptness, cause to be event the duties of a parti- effectual to protect and en- sions of this Ordinance and preparation and timely dis- cause a notice of any such them to the Purchaser upon deposited with and held by remainder of t h is commenced and completed cular office shall be trans- force such rights, shall be entitled to a prefer- tribution of any and all appointment by it to be the payment of the pur- the Trustee or other bank, Ordinance. the reconstruction, replace- ferred to another office or ence therefore over any of forms and reports required mailed by first-class mail, chase price, as specified by trust company or other ap- ment, and repair work. If officer, or in the event of a 2. Among such remedies the Bonds outstanding by law to all Bond holders, postage prepaid to all regis- written instructions of the propriate financial institu- 4. All resolutions or ordi- such proceeds are more vacancy in any such office the Trustee may, and upon hereunder. the State and the Internal (ered owners of the Bonds Mayor or his designee, tion, as hereinabove pro- nancos and than sufficient for such pur- by reason of death, resigna- the written request of the Revenue Service in connec- at their addresses as they parts thereof in poses, the balance remain- tion, removal from office, or registered owners of not 4. The Trustee shall be tion with the payment to appear requirements r and in addition regarding to the repealed liherewith are hereby f no shall be deposited to otherwise, or in the event less than ten percent (10%) under no obligation to ef- the Bond holders of interest bookson the registration B2. The proceeds ie the mtionset r this such coto s the extent of the credit of the Series any such officer shall be- in aggregate Bands shall be applied as Ordinance, forth in conflict. 1994 Construction Fund, if come incapable of tprincipal sthen feet or maintain insurance licies on the Bonds. follows: within thirty the Trustee shall e p perform- amount of the Bonds or to renew any policies of At any time within one year within thirty 130) days after Section 27. Emergency needed, or the Series 1994 ing the duties of his office outstanding shall, appl;r in insurance or to inquire into 9. Upon the redemption after any such vacancy shall la) There shall be depo- such Defeasance Obliga- Clause. It is hereby ascer- Bond Fund and, if such pro- by reason of sickness, air the proper action to a court the sufficiency of any poli- of any or all of the Bonds, have occurred, the regis- sited into the Series 1994 tions shall have been depo- tained and declared that, in coeds shall be insufficient sence from the City, or of competent jurisdiction for ties of insurance carried by the Trustee shall be respon- tered owners of a majority Debt Service Reserve Fund sited with it, cause a notice order to alleviate immediate for such purposes, the defi- otherwise, all powers con- the appointment of a re- the City or to report, or sible for physically collect- in principal amount of the moneys sufficient to equal signed by the Trustee to be hazards to the health, chancy shall be supplied, ferred and all obligations ceiver to administer the make or file claims or proof ing and destroying the re- Bonds then outstanding, by the Reserve Fund published once in a daily safety, and welfare of the first, from moneys in the and duties imposed upon System on behalf of the of loss for, any loss or deemed Bonds and issuing an instrument or concurrent Requirement, newspaper of general circu- City, its inhabitants, and Renewal and Replacement such office or officer or City and the registered damage insured against or to the City the Trustee's instruments in writing, eve- and, second, from any body shall belotion published in the City their continued npy insuring performed erorbody by owners owof the Bonds, with which may occur, or to certificate (on.o f such curds with such hown may and Ibisited There shall be depo- and in a daily newspaper of the operation to available moneys in the Re- the office or officer ri power to charge and collect keep itself informed or ad- destruction. filed the City, ap- into the Series 1994 general circulation or a fi- the System on an adequatof e venue Fund pursuant to succeeding to the principal for by mandatory injunction vised of the payment of point a successor Trustee, Bond Fund the amount of nancial journal subsection 4 of Section 8 function thereof, or by the or otherwise to cause to be any taxes or assessments, 10. In case at any time it which shall supersede any accrued interest on the the Borough of p Mlanhatan, makingishein and efficient of the Improve - hereof. office or officer or body charged and collected) rates or to require any such pay- shall be necessary or desir- Trustee theretofore ap- Bonds upon whom such powers, sufficient to provide for the ment to be made. The able for the Trustee toby. opaid by the City and State of New le or ments emust be aby Section 16. Records. The obligations and duties shallttic the Photo- Purchaser. dates, forth y 1designated he dale or plished andof facilitated he by paymentto of Operating inip Es- Trustee shall have sno make any investigation facp at- instrument stic copies of each such dates, if any, for the issuance the Bolds. City shall keep o cause to be imposed by law. senses, a pay principal of responsibility in respect of spatting any fact preparat- shall be deliv- 0) There shall be depo- the redemption of the It is, therefore, declared be kept proper books of ac- and interest on the Bonds the validity or sufficiency of ory to taking or not taking ered promptly by the City sited into the Series 1994 Bonds or, if some of the that en emergency exists counts and records Isepa- Ij) The City shall cause a and Parity Indebtedness this Ordinance or the due any action or doing or not to the predecessor Trustee Construction Fund the bal- outstanding Bonds are not and this Ordinance being rate from all other records Budget of proposed System outstanding, and to apply execution or acknowledg- doing anything as such and to the Trustee so ap- ante of the Bond proceeds. being redeemed prior to necessary for the immedi- and accounts of the City) in capital costs and Operating the Gross Revenues in con- meat thereof, or in respect Trustee, and in any case in pointed by such owners, which complete and correct Expenses to be prepared fortuity with the provisions of the validity of the Bonds which this Ordinance pro -their redemption or mes. a ate public peace, health, of and entries shall be made of all for each fiscal year of spar- of the Authorizing Legisla- or the due execution or vides for permitting or tak- If no appointment Ordinances. 23. Supplemental sty effect that a peace, and transactions relating to the ation. The Budget for any lion and this Ordinance. issuance thereof. The ing any action, the Trustee, cessor Trustee shall s be sions sia of sthis Ordinance such Bonds o are being psafety shall take and and operation of the System fiscal year shall be com- When all defaults in princi- Trustee shall may rely I upon n made Pain be doptced from and after and its revenues. Such plated no later than Febru-pal, y Y r pursuant vion to the fore- shall constitute a e City at the (ill a description Olie- its adoption. premium, and interest be under no obligation to any certificate or other in- going provisions of this sub- contract among the City of the Defeasance Obliga- books shall be available for ary 1 of said fiscal year and payments have been cured, see that any duties herein strument required or per' section, the registered and the registered owners tions so held by the Trus- PASSED AND APPROVED inspection by any registered shall be available for inspec- the custody and operation imposed upon the City, any milted to be filed with it owner of any Bond out- of the Bonds issued he- tee or other bank, trust this 20th day of September, owner of the Bonds at rea- tion by the registered of the System shall revert Trustee or any party other under the provisions of this standing hereunder or any rounder. The City will at all company or other appropri- 1994. sortable times and under owner of any of the Bonds to the City. than itself, or any coven- Ordinance, and any such in- retiring Trustee may apply times strictly adhere to the ate financial institution, and reasonable circumstances, outstandingants herein contained on strument shall be evidence to any court of competent terms and provisions hereof (iii) that this Ordinance has APPROVED: The City agrees to have 3. It is hereby declared the part of any party other of such fact to protect the jurisdiction to appoint these records audited by an Ik) Periodically the Ciry and intended that no one or than itself to be performed, Trustee in any action that it censor Trusteea Such court obligationnut- anfulldischarge s hereunder, s of its dbreleased dance with the provisions BY. Fred Hanna, Mayor Accountant at least annu- shall cause a Consulting En- more registered owners of shall be done or performed, may or may not take or in may thereupon, after such ally, and a copy of the audit gineer to prepare a re- the Bonds shall have any and the Trustee shall be respect of anything it may notice, if any, as such court 2. The City may, without of this Section. ATTEST: Traci shall be delivered to any re- port on the status of the right in any manner what- under no obligation for fai- or may not do. in good may deem proper andBy: Traci Paul gistered owner of the System's assets and com- ever by his, her or their lure to see that any such faith, by reason of the sup- scribe, a P Pror consent of the B registered dopt 2. All moneys and obligor City Clerk Bonds who shall request pliance with the terms and action to affect, disturb, or duties or covenants are so posed existence of such Trustee. appoint a successor owners the Bonds, adopt (ions held by the Trustee or the same in writing and provisions of this Ordinance preju-dice the security of done or performed. fact. Except as otherwise hereto has es supplementaleessary other bank, trust company (Soap finan- reimburse the City a rea- and the 1992 Ordinance. this Ordinance, or to enforcerera may be necessary or other appropriate sonable amount for the Such report shall be provided nyin this Ordinance, pointed Trustee hereafter aor or desirable: P pre- any right hereunder except 5. The Trustee shall not any request, notice, certifi- shall be a bank or SCHEDULE cost thereof. pared no less frequently in the manner herein provid- be liable or responsible be- cate or other instrument t... st company in good (a) to cure any ambiguity than every three (3) years. ed, that all proceedings at cause of the failure of the from the City to the Trus• standing duly authorized to or formal defect or owls- Clip of FaYa5arl9e, Nkaneu Section 17. Other Coven- The next such report shall law or in equity shall be City or of any of its employ- tee shall be deemed to exercise corporate trust Sion in this Ordinance; Water Is Sinew Rrren5e60nee Arkansas Assumed) ants. The City hereby co- be prepared prior to Sep- instituted, had, and main- ees or agents to make any have been signed by the powers and subject to ex- Serlei 1994 venants that: tember 1, 1996. tained in the manner herein collections or deposits or to p proper party or parties if Stte amination t by federal or IbIon to grant to or confer provided and for the benefit perform any act herein re. signed by the Mayor of the State authority and shall on the registered owners of (al The City will promptly ill The City covenants that of all registered owners of quires of the City or be- City or by any two officers maintain a reported capital the Bonds any additional Year Opeten Total pay or cause to be paid the it will not, and it will direct the outstanding Bonds, and cause of the loss of any or employees of the City and surplus aggregating not rights, remedies, powers or P0hM0tl Inl4rat pe019en1n principal of and the interest the Trustee not to, take any that any individual rights of moneys arising through the who shall be designated by less than twenty-five million authority that may lawfully 1995 4.05% 4313000 4255,370 n each and every Bond action that will, or fail to ac-tion or other right given insolvency or the act or de- the City by resolution for dollars 1$25,000,00). be granted to or conferred 1995 4.45% 290,000 4573,47 i,` f41 all other indebtedness take any action, that failure to one or more of such fault or omission of any such purpose and the Trus. 573,45 on them; 1997. 4.70% 305,000 270,555 57S,SSe'� 1 blued or incurred under will, cause the interest on owners by law are restricted other depository in which tee may accept and rely 17. Every successor Trus- 1995 4.90% 320,00D 255.224 575,224 ;.. a provisions of this Ordi- Bonds to be includable in by this Ordinance to the such moneys shall have upon a certificate signed by tee appointed hereunder (c) to add to the coven- 573,025 I�9 5.05% 33S.000 240,543 575,543 nance at the places, on the the gross income of the re- rights and remedies herein been deposited under the the City Clerk of the City shall execute, acknowledge ants and agreements of the 2000 5.25% 370,o90 224,525 dates and in the manner gistered owners thereof for provided, provisions of this Ordi- regarding any action taken and deliver to its predeces- City in this Ordinance other 2002 5.85% 350. 105,1176 1.758051 specified herein and in the federal income tax nance. The Trustee shall by the City. nor, and also the City, en covenants and agreements 2003 5.45% 410,000 105,350 575,175 u Bonds and such indebted- purposes. 4. No remedy conferred not be responsible for the instrument in writing ac- to be observed by the City; 2004 5.55% 440,000 142,955 535.310 y, ness premium required for upon or reserved to the application of any of the 11. Except upon the hap- cepting such a ointment 2005• 0.00% 572185'' the retirement of the Bonds Section 18. Event of De- Trustee or to the registered proceeds of the Bonds or pening of any default in the hereunder, and pthereupon (d) to more precisely idea- 2008 455,000 119,100 574,100. 5.00% 450,000 91.500 571.500)• and such indebtedness by fault and Acceleration of owners of the Bonds is in- any other moneys depo- payment of the principal of, such successor Trustee, tify the revenues pledged 7e 0'00% SI0.00p 53,0co :573,0001 purchase or redemption, ac- Maturities. If there be any tended to be exclusive of sited with it and paid out, or premium, if any or Inter- without any further act, under this Ordinance; 2008, 5.00%,, - 540.000 32.400 572.400!' cording to the true intent default in the payment of any other remedy or reme- withdrawn ,r or transferred eat on the Bonds or any shall become fully vested M and meaning thereof. Such the nrinrinal of nr pro- reia� n..rr ee..e, e...t e..e.., r.e.e....d... .. .,,r. _...,::__ r,__:... ,_.,-�._-____ .... ... .. . .. •_ as ou ,,,,•.. ���,�� pence dates specil Bond: ness the re and s purchr cordin princip mium from I the I hereby ment and on tf other n a Ii ou 6 a Ner .an L_ ness manna herel specil The h pay teres the inde the hart pal con of me /ued or Incurred under will, cause "the "Interest on - owners by law are restrictea orner oepoa,tory .,,..., ,er _-.•-o,., .e..._,,, 7ne provisions of this Ordl- Bonds to be Includable in by this Ordinance to the such moneys shall have -' 16 re " ----nance at theplaces, on the the p Y upon Clark o signed by tea e g g •-•-•-•,v51-- .. ,,•„ ,,•,• appointed hereunder (c) to add to the :: 4900 6tS" '°•'' gross Income of the re- rights and remedies herein been deposited under the the City Clerk of the City shell execute, acknowledge ants and agreements of the 350566 443,020 •n70Axs dates and in the manner gistered owners thereof for4001 5..5" - 370500 405 A specified herein and in the federal income tax provided. provisions ance. The Trustee Ordi- b regarding Ci any action taken and deliver a to the s predates- City onIthis nddina ree ants 2003 5.35" 390000 165 575, p e P by ty inssorand also City, an covenants and agreements 2003 - 5.4516 430500 150 t0 575,310 Bonds end such Indebted- purposes. 4. No remedy conferred not be responsible for the instrument in writing ac- to be observed by the City; 2004 635" 430AW 142965 572XSF ness premium required for upon or reserved to the application of any of the 11. Except upon the hap- cepting such appointment 2(105• 5.00" 455,000 119,100 .574100. the retirement of the Bonds Section 18. Event of De- Trustee or to the registered proceeds of the Bonds or pening of any default in the hereunder, and thereupon (d) to more precisely iden- 2005• 6.00% 450A09 91,000 571,000t' and such indebtedness by fault and Acceleration of owners of the Bonds is in- any other moneys depo- payment of the principal of, such successor Trustee, tify the revenues pledged 2007' 6.0016 51DA0o 63.400 :573,600* 2005 • 5.00% 540.000 32.400 574.4071 " purchase or redemption, ac- Maturities. If there be any [ended to be exclusive of sited with it and paid out, or premium, if any, or inter- without any further act, under this Ordinance; cording to the true intent' default in the payment of any other remedy or reme- withdrawn or transferred est on the Bonds or any shall henmmp hilt), .,voted • .__._ $5,500,000 .92,509,130 35,039,130 ... pd:..,,,�...,,,e .-me,�er. o...,.. _.,,•�, p,,,•o,Pe,,. o,,C_o, .Pre_. me;—epd neon -and -every -hereunder If such' applies- Parity Indebtedness, the with all the rights, immunf (e) ' to' pledge additional Accrued lniemt r:- ." -- [0745 f19.7451� principal, interest and pre- mium, if any, or interest on, such remedy shall be cumu- tion. payment, withdrawal Trustee shall not be obliged ties, powers and trusts and revenues under this Ordi- w mium will be payable solely any Bonds or Parity Inde- lative and shall be in or transfer shall be made in to take notice or be subject to all the duties and nance; or Total sI2,5t362 ee;ot93e2;. from the Net Revenues and btedness, or if the City de- addition to every other re- accordance with the provi- deemed to have notice of obligations, of its predeces- Deted10/1N4Mdt DaNwyd 10/25/94 the Net Revenues are faults in the performance of medy given hereunder or sions of this Ordinance. The any event of default he- sor; but such predecessor Ifl to provide for the is- hereby pledged to the pay- any of its other covenants hereafter existing or avail- immunities and exemptions rounder, unless specifically shall, nevertheless, on writ- s u a n c e of Parity Average Coupon 5355022 ment of such principal of or agreements contained in able at law or in equity. from liability of the Trustee notified in writing of such ten request of its successor Indebtedness. Dtawunt Bete 95.55" and interest and premium this Ordinance and such de- hereunder shall extend to event of default by the re- or of the City and upon on the Bonds and such fault shall continue for thirty 5. No delay or omission its directors, officers, em- gistered owners of not less payment of the expenses, 3. The registered owners ' Dental Slntiing Fund Maturity 1' other indebtedness secured (30) days after written no- of the Trustee or any regis- ployees and agents, than ten percent (10%) in charges and other disburse- of not less than fifty-one n a parity with the Bonds tice specifying such default tered owners of the Bonds aggregate principal amount ments of such predecessor percent (51 %) in aggregate '•ough the pledge of Net and requiring the same to to exercise any right or 6. Subject to the following o f the Bonds then that are payable pursuant to principal amount of the acvenues hereunder, and be remedied shall have power accrued upon any paragraph, the City shall, outstanding. the provisions of this Sec- Bonds outstanding shall .an such other indebted- been given to the City by default shall impair any from moneys lawful) avail- tion, execute and deliver an have the right, from time to ''mess not so secured in the the Trstee, or if there shall such right orpower or shall able therefor, y 9 / 9 pay to the 12. The Trustees and its instrument transferring to time, to consent to and ap- manner and to the extent be filed by the City a peti- be construed to be a waiver Trustee reasonable compen- directors, officers, employ- such successor Trustee all prove the adoption by the hereinabove particularly tion in bankruptcy, then of any such default or an sation for all services per- ees or agents may in good the rights, immunities, pow- City of such ordinances specified, upon the continuance of acquiescence therein; and formed hereunder and also faith buy, sell own, hold ers and trusts of such pre- supplemental hereto as 2•legal Notices 52•Employment Wanted any such event (an "event every power and remedy gi- all its reasonable expenses, and deal in any of the decessor hereunder; and shall be necessary or desir- The City is not obligated to of default") the Trustee von by this Ordinance to charges and other disburse- Bonds and may join in any every predecessor Trustee able for the purpose of NOTICE OF FILING APPLI- GRAPHIC DESIGNER/ pay the principal of end in- may, and upon the written the Trustee or the regis- meats and those of its at- action that any registered shall deliver all property and modifying, altering, amend- CATION FOR PERMITS TO TYPESETTER skilled in serest and any premium on request of the registered tared owners of the bonds torneys, agents and em- owner of the bonds may be moneys held by it hereun- ing, adding to, or rescind- SELL WINE AND BEER IN Quark XPress, photoshop;•& the Bonds and such other owners of not less than may be exercised from ployees incurred in and ab- entitled to take. der to its successor. Should ing, in any particular, any of CAFE OR RESTAURANT Macintosh exp. Print shops indebtedness except from twenty percent (20%) in ag- time to time and as often out the administration and any instrument in writing the terms or provisions con- Notice is hereby given that & a d v e r ii s i n . the Net Revenues pledged gregate principal amount of as may be deemed execution of the trusts 13. The Trustee shall be from the City be required tained in this Ordinance or the undersigned has filed 501-424-4301, willing to hereunder, and such princi- the Bonds then outstanding expedient, hereby created and the per- protected and shall incur no by any successor Trustee in any supplemental ordi- with the Alcoholic Beverage relocate.' pal and interest shall not shall, by a notice in writing formance of its powers and liability in acting or proceed• for more fully and certainty nance; provided, however, Control Division of the Constitute en indebtedness to the City. declare'the prin- 6. The Trustee may, and duties hereunder and, to ing, or in not acting or not vesting in such Trustee the that nothing herein con- State of Arkansas for per- 56•Help Wanted of the City within the cipal of all of the Bonds upon the written request of the extent permitted by law proceeding, in good faith, rights, immunities, powers tained shall permit or be mits to sell and serve wine meaning of any constitu- then outstanding the registered owners of and from moneys lawfully and in accordance with the and trusts hereby vested or construed as permitting (al and beer with food on the General tional or statutory debt (if not then due and pay- not less than fifty percent available therefor, shall in- terms of this Ordinance, intended to be vested in an extension of the matur- premises described as fol. _ limitation. able) to be due and payable (50%) in principal amount of demnify and save the Trus- upon any resolution, order, the predecessor Trustee, ity of the principal of or the lows: 1120 N. Lindell, Pay - immediately, and upon such the Bonds then outstanding tee harmless against any notice, request, consent, any such instrument in writ- interest on any Bond, (b) a etteville, Washington MANPOW® (b) The City will construct declaration the same shall shall, waive any default that liabilities which it may incur waiver, certificate, state- ing shall and will, on re- reduction in the principal county. TEMPORARY SERVICES the Improvements in accor- become and be immedi• shall have been remedied in the exercise and perfor- meat, affidavit, requisition, quest, be executed, ack- amount of any Bond or the The undersigned states that dance with plans and speci- ately due and payable, any- before the entry of final mance of its powers and bond or other paper or do- nowledged and delivered by rate of interest thereof, (c) he/she is a resident of Ark- fications theretofore ap- thing contained in the judgment or decree in any duties hereunder. If the City cument that it shall in good the City. the creation of a pledge of ansas, of good moral char- 2 EXPERIENCED MACHIN- proved by the City and Bonds or this Ordinance to suit, action, or proceeding shall fail to make any pay- faith believe to be genuine revenues other than as actor; that he/she has never IST, choice company - in otherwise as required by the contrary notwithstand- instituted under the provi- meat required by this sub- and to have been adopted Notwithstanding any of the created or permitted by this been convicted of a felony Springdale. Top moneyl Call law. The City further coven- ing; provided, however, that sions of this Ordinance or section, the Trustee may or signed by the proper foregoing provisions of this Ordinance, (d) a privilege or or other crime involving MANPOWER 756.6830 or ants that any contract with if at any time after the prin- before the completion of make such payment from board or person or to have Section, any bank or trust priority of any Bond or moral turpitude; that no 636-0732. No fee. EOE. any person for any work cipal of the Bonds shall the enforcement of any any moneys in its posses- boon prepared and furn- company having power to Bonds over any other Bond license to sell alcoholic be - constituting a part of the have been so declared to other remedy, but no such sion under the provisions of ished pursuant to any of perform the duties and axe- or Bonds, or (e) a reduction verages by the undersigned A C Services - Improvements shall provide be due and payable, and waiver shall extend to or of- this Ordinance and shall be the provisions of this Ordi- cute the trusts of this Ordi- in the aggregate principal has been revoked within "l.eopfng for such performance and before the entry of final fact any other existing or entitled to a preference nonce, or upon the written nance and otherwise quail- amount of the Bonds re- five (5) years last past; and, to Service" payment bonds or security judgement or decree in any any subsequent default or therefor over any of the opinion of an attorney, engi- fled to act as Trustee he- quired for consent to such that the undersigned has Nationwide in lieu thereof and for such suit, action or proceeding defaults or impair any rights Bonds outstanding hareun- near or accountant believed reunder with or into which supplemental ordinance, never been convicted of vi- retainages as shall be in instituted on account of or remedies consequent der. The City shall not be by the Trustee to be quail- the bank or trust company compliance with the laws such event of default, or thereon, required to indemnify the fied in relation to the sub- acting as Trustee may be 4. In the event the City Stating the other h of this 3RD SHIFT positions av area of the State and the nor- before the completion of State, or any con- able in the nual area Trustee es against any t liebili- may shaect matter, ader the Trustee to merged or consolidated, shall p adopt any ordinance relative e the s. p con- in the Light Industrial field, molly established practices the enforcement of any Section 20. Trustee. 1, ties which the Trustee may shall be under no duty to to wlich the assets and supplemental to this Ordi- trolled beverages. Applica- Starts $5.50 - $6.00Rir. of the City from time to other remedy under this Or- Bank of Oklahoma, N.A., in incur as a result of negli- make any investigation or business of such bank or nance a copy thereof shall tion is for permits to be Apply today, work tomor- time in effect. dinance, moneys shall have the City of Tulsa, Okla- gent or wrongful acts or inquiry regarding any state- trust company may be sold, be mailed, at least fifteen issued for operation begin- row with A&C Services, accumulated in the Series home, is hereby appointed omissions of the Trustee, meat contained or matters shall be deemed the sac- (15) days prior to adoption, ning the 19th day of Oc- 2045 W. Sunset, Spring- (c) All Bonds paid or pur- 1994 Bond Fund and each as Trustee under this Ordi- referred to in any such in- cessor of the Trustee. b first class mail postage chased either at or before fund or account created for nance. The Trustee shall file The City shallby P 9 sober. 1994, and to expire dale. No fee. EOE. maturity shall be cancelled the pay to the not be eau The Trustee lion prepaid, to the registered on the 30th day of June, payment of debt sor- with the city a written ac- Trustee compensation for not under any obligation Section 21. Sale of Bonds. owner of each Bond out- 1995. A & C Services' when such payment or vice or Parity Indebtedness ceptance of the duties and its services as described in to see the recording or fil- 1. All actions heretofore standing at his or her ad- G. Hugh Smith purchase is made and held sufficient to pay the princi- obligations and agreement this subsection in accor- ing of this Ordinance or taken by the City and its dress appearing "Seeing by the Trustee or the City pal of all matured Bonds to execute the trusts im- dance with a separate otherwise to the giving to officers, in connection with gistrationbooksof the City Gumbo Joe's Cajun Grill & to Service" and shall not be reissued. and Parity Indebtedness and posed upon it by this Ordi- agreement between the any person of notice of the the offer and sale of the maintained by the Trustee. Nationwide all arrears of interest, if any, nance, but only upon the City and the Trustee, pro- provisions hereof. No Subscribed and sworn so per- e Bonds, including the propa- before feemem on this 99 , 21st day IdI The System shall be upon all of the Bonds an terms and conditions set vided that such compensa- missive right of the Trustee ration and distribution of Section 24. Publication. of September, 1994. 4 DAYS a week, 10 hours operated on a fiscal year Parity Indebtedness then forth in this Section and tion, together with all ex- under this Ordinance to the Preliminary Official The City Clerk of the City is days. 1st & 2nd shift pod - basis beginning January 1 o u t s t a n d I n g subject to the provisions of penses, charges and other take any action shall im- Statement and the prepare- hereby directed to publish 4•Announcements tions available now in the and ending December 31 of )except the principal of any this Ordinance, to all of disbursements of the Trus- pose any duty upon the tion of the Official State- this Ordinance once in the Rogers area in the Industrial each year. Bonds and Parity Indebted- which the registered own- tee and its attorneys, Trustee to take such action, ment, are herby in all re- Northwest Arkansas Times, Field. Temp to perm osi- ness not then due and pay- ers of the Bonds agree. Un- agents and employees and and the Trustee shall not spects ratified and ap- which is hereby found and VOTE!! tions with P (e) The City will faithfully able by their terms and the less an event of default of all reimbursements to the be liable to the registered FOR MARY DENHAM great benefits. g proved, The Official declared to be a newspaper WARD 4 POSITION 2 Starts at $ to $5.50/kir- an punctually perform all interest accrued on such which the Trustee shall Trustee for all costs and owners of any Bonds or to Statement is hereby ap- published and of general Apply today, work vices, duties with reference to Bonds and Parity Indebted• have notice pursuant to the other disbursements as de- the City or any other per- proved in substantially the circulation in the City of FAVETT COUNCIL row with A&C Services, the System required by ness since the last interest provisions of this Ordinance scribed in subsection 3 of son for failing to take any form presented to the Fayetteville, Arkansas, CITY 2045 W. Sunset, Spring - the constitution and laws of payment date), and the has occurred and is continu- this Section, shall not ex- such action pursuant to any Council for its consideration Advertisement paid for by dale. No Fee. BOB, the State, including the charges, compensation, ex- ing, the Trustee shall not ceed $2,200 annually with- such permissive right, and the Mayor of the City Section 25. Defeasance, 1, Mary Denham, 2167 N. Per - and collecting of penses, disbursements, ad- be responsible except for out the prior written so- is hereby authorized and di- If, (a) when the Bonds ter Rd. Fayetteville, AR MANPOWER reasonable and sufficient vances and liabilities of the the performance of those prove) of the City, which 14. The Trustee may res- rected to execute, deliver secured hereby shall have 72704' R®' rates lawfully established for Trustee and all other duties that are expressly approval shall not be unrea- ign and thereby become and permit the distribution become due and payable in TEMPORARY SERVICES. services rendered by the amounts then payable by set forth in this Ordinance, sonably withheld. If the discharged from the trusts of the Official Statement accordance with their terms 36•Lost & Found System, the segregating of the City hereunder shall and no implied covenant or Trustee wishes to consult hereby created, by notice in with such changes as he or shall have been duly FOUND ADULT male cat. ASSEMBLY WORKER. the Gross Revenues as have been paid or a sum duty shall be read into this with or retain counsel for writing to be given to the deems advisable in the called for redemption or Ib) Orange, very Iovin If notDaisy herein required, and the sufficient to pay the same Ordinance against the any purpose hereunder City and published once in name of and on behalf of irrevocable instructions to g. MFG. Co. in Rogers a p p I y I n g shall have been deposited Trustee, whose anticipated fees, a daily newspaper of gee- the City his execution and call the Bonds for redem claimed, we will give to area. 1st - $6.50, 2nd. - of Net Revenues to the re- with the Trustee, and every together with all other corn- eral circulation published in delivery of the Official lion or to pay the Bonds at $6.75, 3rd - $7.65. Call good home. 443.3361. spective funds and ec- other event of default 2. The Trustee shall be pensation, disbursements the City and in a daily Statement to constitute their respective maturities • MANPOWER 758 -6830 -pr counts herein created and known to the Trustee in the responsible for the registra- and reimbursements of the newspaper of general circu• conclusive evidence of his or to effect some combine- FOUND CAT, orange Tabby. 636.0732. No fee, EOE. referred to. observance or performance tion, registration of transfer Trustee and its attorneys, lation or a financial journal approval of any such lion of such payment and Morris type, male. No col - of any covenant, condition, and exchange of Bonds agents and employees to published in the Borough of changes. redemption shall have been tar. 521.6070.• (f) The City will maintain agreement or provision con- within a reasonable time ac- be paid by the City hereun- Manhattan, City and State the Citto the the System in good condi- tained in the Bonds or this cording to then current der, shall exceed $12,200 of New York. not less than 2. The City hereby repre. Tgiven rustee, ythe whole amount FOUND IN ROGERS AREA. lion and operate the same Ordinance (other than a de' commercial standards for annually, then such counsel sixty (60) days before such sents that it reasonable ex• of the principal and the in- Male, sable and white in an efficient manner and fault in the payment of the the timely payment of prin- shall have to be acceptable resignation is to take effect, pacts that it and all subordi- serest and premium, if any, Shelly. Must identify. Call at reasonable cost. principal of such Bonds and cipal, interest and any rede- to the City and but such resignation shall Hate entities thereof will so due and payable upon all 442-0361.• Parity Indebtedness then mption premium with re- such fees shall have to be take effect immediately not issue more than of the Bonds then outstand- FOUND LARGE BLACK, Ig) Except for water sor- due and payable only be- spect to the Bonds. The approved by the City as de- upon the appointment of a $10,000,000 of tax-exempt ing shall be paid or suffi- ASSISTANT MANAGER vice for the purposes of cause of a declaration Trustee such shall keep the scribed above. new Trustee hereunder, if obligations (not counting cient moneys, or obligations male Lab. Hwy 45E area. 40 hr. week. Must be street washing and fire under this Section) shall books of the City for the Needs his home, friendly, people oriented. fighting, none of the facili• have been remedied to the registration, registration of 7. It shall be the duty of appointed new Trustee shall be private -activity bonds except described in clause (i) of ties or services afforded by satisfaction of the Trustee, transfer, exchange andlimited before the time for qualified 501(c)(3) bonds the definition of "Govern- 442-2834.• Apply in person at The Cob - g pay -as the Trustee, of month by such notice and in defined in t the Code) dur- ment Obligations" herein LOST Senegal Parrot kie Company, NWq Mallf. 3 shheed System shaall be fube-rn- then and in every such meat in the Bonds ce pro- the 10th dayn each month shall then accept the trusts ing calendar year 1994. In ("Defeasance Obligations") - ATTENTION NOW HIRING= 3 shed without a charge the case the Trustee may, and vided in this Ordinance. after the month in which hereof. addition, the City hereby the principal of and the in- green w/orange yellow , "Rag made therefore. In e the upon the written request of FT & PT morning & evenij the Bonds are delivered, to designates each of the serest on which when due chest. If found, please call event that the City or any the registered owners of 3. The Trustee shall be file with the City a state- 15. The Trustee may be Bonds as a "qualified tax- will provide sufficient me- 582-5928.• kitchen & counter hei department, agency, or in- not less than twenty per- under no obligation to insti- ment setting forth in re- removed at any time by an exempt obligation" for the neys, shall be held by the Apply in person, the Fayet- strumitself ty thereof shall cent 120%l in aggregate tute any suit, or to take any spect of the preceding instrument or concurrent in- purposes of the Code. Trustee for such 44Serviees Offered teville Mercantile. 2750 avail itself of the facilities principal amount of the remedial proceeding under calendar month: purpose and services afforded by Bonds not then due and this Ordinance, or to enter strums by in writing, axe- under the provisions of this Mission Blvd. System, the reasonable payable by their terms and any appearance cured by the registered 3. There is hereby author- Ordinance, and provision CHILD CARE day/evening/ AVON needs FT & PT per - the or in any (a) the amount withdrawn owners of not less than a ized and directed the accep• shall also be made for pay- nightjweekenrf shifts. Exp. sonnet for Christmas sales. value of the service or facil- then outstanding shall, by way defend in any suit in or transferred by it and the majority in principal amount lance of the offer by the ing all other sums payable mother. Licensed, CPR ter -'Sale 3 different ways:territ- ities so afforded shall be written notice to the City, which it may be made de- amount deposited with it of the Bonds then outstand- Purchaser, pursuant to the hereunder by the City, then cry, family & friends, & charged against the City or rescind and annul such de- fondant, or to take any on account of each fund ing and filed with the City. Bond Purchase Agreement, and in that case the right, tified. USDA Food prog. cai Earn up to 50% such department, agency, duration and its consequ- steps in the execution of and account held by it A photostatic copy of each topurchase the Bonds at a title and interest of the Refs. 575-0372 for apps. on sales. 442-5932. r f -y