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HomeMy WebLinkAboutOrdinance 4880 ORDINANCE NO, 4880 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $4,000,000 OF THE CITY' S GENERAL OBLIGATION BONDS, SERIES 2006A, FOR THE PURPOSE OF FINANCING ALL OR A PORTION OF THE COST OF FIRE STATION FACILITY IMPROVEMENTS; AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE PURSUANT TO WHICH THE BONDS WILL BE ISSUED AND SECURED; AUTHORIZING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT PURSUANT TO WHICH THE BONDS WILL BE OFFERED; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT PROVIDING FOR THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AND PRESCRIBING OTHER MATTERS RELATING THERETO. WHEREAS, the City Council of the City of Fayetteville, Arkansas (the "City") has determined that there is a great need for a source of funds to finance the costs of acquisition, construction and equipping of additional fire station facilities (i) at Routh Park (near the intersection of Crossover and Old Wire Roads) and (ii) at the former Tyson Complex (near the intersection of Huntsville and Happy Hollow Roads) (collectively, the "Project"); and WHEREAS, the City is authorized and empowered under the provisions of the Constitution and laws of the State of Arkansas, including particularly Amendment 78 to the Constitution of the State of Arkansas ("Amendment 78") and the Local Government Short-Term Financing Obligations Act of 2001 , codified as Arkansas Code Annotated (2005 Supp.) Sections 14-78- 101 et seq. (as from time to time amended, the "Act"), to issue and sell its short-term financing obligations (as defined in the Act) to finance the costs of acquiring, constructing and installing real property or tangible personal property having an expected useful life of more than one year, which short-term financing obligations shall be secured by and payable from the general revenues of the City; and WHEREAS, as authorized under the provisions of Amendment 78 and the Act, the City has now determined to issue and sell its General Obligation Bonds, Series 2006A, in the 'aggregate principal amount of not to exceed $4,000,000 (the "Bonds"), in order to provide funding for the Project; and WHEREAS, the City has made arrangements for the sale of the Bonds to Crews & Associates, Inc., Little Rock, Arkansas (the "Underwriter"), pursuant to the terms of a Bond Purchase Agreement between the City and the Underwriter (the "Bond Purchase Agreement") in substantially the form presented to and before this meeting. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . Under the authority of the Constitution and laws of the State of Arkansas, including particularly Amendment 78 to the Constitution of the State of Arkansas and the Act, there is hereby authorized the issuance of bonds of the City to be designated as "General Obligation Bonds, Series 2006A" (the "Bonds"). The Bonds shall be issued in the original aggregate principal amount of not to exceed Four Million Dollars ($4,000,000), shall mature on July 1 in the years 2007 through 2011 , inclusive, and shall bear interest at rates as shall be specified in the Bond Purchase Agreement. The true interest cost of the Bonds to the City, including the interest rates borne by the Bonds and the costs of issuance funded with proceeds of the Bonds, will not exceed 4.75% per annum, and no Bond will bear a coupon interest rate in excess of 4.50% per annum. The proceeds of the Bonds will be utilized (i) to finance all or a portion of the costs of the acquisition, construction and equipping of the Project, and (ii) to pay printing, underwriting, legal and other expenses incidental to the issuance of the Bonds. The Bonds shall be issued in the forms and denominations, shall be dated, shall be numbered, shall mature, shall be subject to redemption prior to maturity, and shall contain such other terms, covenants and conditions, all as set forth in that certain Trust Indenture dated as of July 15, 2006 (the "Indenture"), by and between the City and a bank or other financial institution to be named and having corporate trust powers (the "Trustee"), to be entered into by the City and the Trustee in substantially the form submitted to this meeting. The Mayor is hereby authorized and directed to execute and deliver the Bonds in substantially the form thereof contained in the Indenture submitted to this meeting, and the City Clerk is hereby authorized and directed to execute and deliver the Bonds and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Bonds to be accepted and authenticated by the Trustee. The Mayor is hereby authorized to confer with the Trustee, the Underwriter and Kutak Rock LLP, Little Rock, Arkansas ("Bond Counsel"), in order to complete the Bonds in substantially the form thereof contained in the Indenture submitted to this meeting, with such changes as shall be approved by such persons executing the Bonds, their execution to constitute conclusive evidence of such approval. Section 2. It is affirmed that, pursuant to Amendment 78 and the Act, the debt service obligations of the City with respect to the Bonds shall constitute general obligations of the City, and the total annual payments owed by the City pursuant to the Bonds in each of the City's fiscal years shall be charged against and paid from the general revenues of the City for such fiscal years. As required by Amendment 78 and the Act, the City hereby finds and determines that: (a) Each of the Project components to be financed with proceeds of the Bonds has an average useful life in excess of one year; and (b) The aggregate nominal principal amount of all obligations of the City under Amendment 78 and the Act, including the Bonds, will at no time exceed five percent (5%) of the assessed value of the taxable real and personal property located within the City, as determined by the last tax assessment completed prior to the date hereof. Section 3 . To prescribe the terms and conditions upon which the Bonds are to be executed, authenticated, issued, accepted, held and secured, the Mayor is hereby authorized and directed to execute and acknowledge the Indenture, and the City Clerk is hereby authorized and directed to execute and acknowledge the Indenture and to affix the seal of the City thereto, and the Mayor and the City Clerk are hereby authorized and directed to cause the Indenture to be accepted, executed and acknowledged by the Trustee. The Indenture is hereby approved in substantially the form submitted to this meeting, including, without limitation, the provisions thereof pertaining to the terms of the Bonds. The Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Indenture in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Indenture, their execution to constitute conclusive evidence of such approval . (Advice is given that a copy of the Indenture in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 4. There is hereby authorized and approved a Preliminary Official Statement of the City, including the cover page and appendices attached thereto, relating to the Bonds. The Preliminary Official Statement is hereby "deemed final" by the City within the meaning of U.S. Securities and Exchange Commission Rule 15c2- 12. The distribution of the Preliminary Official Statement is hereby approved. The Preliminary Official Statement, as amended to conform to the terms of the Bond Purchase Agreement, including Exhibit A thereto, and with such other changes and amendments as are mutually agreed to by the City and the Underwriter, is herein referred to as the "Official Statement," and the Mayor is hereby authorized to execute the Official Statement for and on behalf of the City. The Official Statement is hereby approved in substantially the form of the Preliminary Official Statement submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Official Statement in substantially the form of the Preliminary Official Statement submitted to this meeting, with such changes as shall be approved by such persons, the Mayor's execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Preliminary Official Statement is on file with the City Clerk and is available for inspection by any interested person.) Section 5 . In order to prescribe the terms and conditions upon which the Bonds are to be sold to the Underwriter, the Mayor is hereby authorized and directed to execute a Bond Purchase Agreement on behalf of the City, to be dated as of the date of its execution (the "Bond Purchase Agreement"), by and between the City and the Underwriter, and the Bond Purchase Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Underwriter and Bond Counsel in order to complete the Bond Purchase Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Bond Purchase Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Bond Purchase Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 6. In order to provide for continuing disclosure of certain financial and operating information with respect to the City in compliance with the provisions of Rule 15c2- 12 of the U. S. Securities and Exchange Commission, the Mayor is hereby authorized and directed to execute a Continuing Disclosure Agreement to be dated as of the date of its execution (the "Continuing Disclosure Agreement"), by and between the City and the Trustee, and the Mayor is hereby authorized and directed to cause the Continuing Disclosure Agreement to be executed by the Trustee. The Continuing Disclosure Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Continuing Disclosure Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Continuing Disclosure Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Continuing Disclosure Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 7. The Mayor and City Clerk, for and on behalf of the City, are hereby authorized and directed to do any and all things necessary to effect the issuance, sale, execution and delivery of the Bonds and to effect the execution and delivery of the Indenture, the Bond Purchase Agreement, the Official Statement, the Continuing Disclosure Agreement and a Tax Regulatory Agreement relating to the tax exemption of interest on the Bonds, and to perform all of the obligations of the City under and pursuant thereto. The Mayor and the City Clerk are further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof. Section 8. Kutak Rock LLP, Little Rock, Arkansas, is hereby appointed to act as Bond Counsel on behalf of the City in connection with the issuance and sale of the Bonds. Section 9. The provisions of this Ordinance are hereby declared to be severable, and if any section, phrase or provision shall for any reason be declared to be illegal or invalid, such declaration shall not affect the validity of the remainder of the sections, phrases or provisions of this Ordinance. Page 5 Ord. No. 4880 p,unrrrrrq PASSED and APPROVED this 6t' day of June, 2006. ;\���;•"G\SY OF • Gp'; _ C • APPROVED: ATTEST: - ; FAYETTEVILLE ; wee �yj Osseo * (3 By: By: DAN COODY, Mayor SONDRA SMITH, Ci y lerk Arkansas Democrat (i$azette REZZIEZEEMMIMI Northwest Arkansas Times Benton County Daily Record P. O. BOX 1607 FAYETTEVILLE, AR 72702 PHONE: 479-571 -6415 AFFIDAVIT OF PUBLICATION I , Maria Attaway, do solemnly swear that I am Legal Clerk of the Arkansas Democrat Gazette newspaper. Printed and published in Benton County Arkansas, (Lowell) and that from my own personal knowledge and reference to the files of said publication , the advertisement of: Ordinance 4880 Was inserted in the Regular Editions: June 9, 2006 Publication Charge : $429 . 24 Subscribed an sworn to before me K This/qday of , 2006 . Notary Public �( k e KJ (�Fene . Williams Notary Public State of Arkansas My Commission Expires: My Commission Expires October 18, 2014 **NOTE** Please do not pay from Affidavit. Invoice will be sent. RECEIVED JUN 2 � HE CITY OF FAYE rrEVILLL CITY CLERK'S OFFICE ORDINANCE NO. 4ftb ZING-THO— �� 4: • 0 -.r r AN- SALEOFNOGNANCE TOEXC EXCEED THE ISSUANCE ANDS4LENERAL OB EXCEED& BONDS, OF THE wet �]T T� CRY& GENERAL OBLIGATION BONDS, SERIES QYG GV A POR, FOR THE PURPOSE OF IRE STATION TA IO ALL OR APORTION OF THEVEMENT : ATOF HORIZIGTHE EXECILLU. i�: , . ,. ARKANSAS°-' • ITY IMPROVEMENTS: AUTHORIZING THE INDENTURE TION AND DELIVERY OF A TRUST INDENTURE CII 1p ! � PURSUANT TO WHICH THE BONDS WILL BE ISSUED AND SECURED; ALFHORIZING.THE EXE= CURON AND DELIVERY OF AN OFFICIAL STATEMENT PURSUANT TO WHICH THE BONDS WILL BE OFFERED; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREE- MENT PROVIDING FOR THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELN- ERY OF .A CONTINUING DISCLOSURE AGREEMENT; AND PRESCRIBING OTHER MATTERS RELATING THERETO. of of ') as x dth 4 WHEREAS,, the Oclf Council W the funds of finance Fayetteville,e, Arkansas (the 'City-) hes tion determined that �j there is agreat al fire ra source Oftes (I) tooRouth Park coals of the ition construction Of Crossover and Old f equip- ping of additional(nit) station facilities (i) at Routh Park (near Ibe intersection of Crossover antl Old ) Wire Roads) end lie ti the former Tyson Complex (near the Intersection of Huntsville and Happy HWlow Roetls1 (co11ectively,the.Project); and a' S� !]_ •T7. t j WHEREAS, the City is authon`zed and empowered under the provisions of the Constitution and laws of the State of Arkansas, including particularly Amendment 78 to the Constitution of the State of Arkansas ("Amendment 78-) and the Local Government Shpt-Term Financing Obligations Act of 2001, codified as Aeneas Cade Annotated (2005 Supp.) Sections 14-78.101 at seq. (as from time to time amended, the 'Act'), to issue and sell its short-term financing obligations (as defined In the I Act) to finance the costs of acquiring, consimcling and Installing real property or tangible personal property having an expected useful life of more than one year, which shat-term financing obligations shall be secured by and payable trom'the general revenues of.the City; and i WHEREAS, as authorized under the provisions of Amendment 78 and the Act, the City has now i detemined to issue and sell its General Obligation Bonds, Series 2005A,'M the aggregate principal amount of not to exceed $4,000,000 (the 'Bonds ), in order to provide funding for.ihe Project; and 1 it WHEREAS,ane City has made arrangements for the sale of the Bonds to Crews d AsSoclates, Inc., ' Little Rock, Arkansas (the 'Under-mien: ms), pursuant to me terof a Bond Purchase Agreement between the City andthe Underwriter hhe 'Bmd Purchase Agreemem-)in substantially the fern pre- j r rented to and before this meeting. 1. i NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ' FAYETTEVILLE, ARKANSAS: _ •f l ' . ) .� Section 1. Under Me authority of the Consmu ion and Wvrs of the Slate of Arkansas, Including par- tioulady Amendment 78 to the Constitution of the State of Arks us and gra Act, there Is hereby 7 authorized the issuance of bonds 01 the Wo be designated as General Obligation Bonds, Series 20D8A',(me08onds'). The Batas shall be issued in the original aggregate principal amount of rpt I to exceed Four Million Dollars (54,000,OW), shall mature on July 1 In the years 2007 Mrough 2011, !1 inclusive, and shall bear interest at rates as shall be specified in the Bond Purchase Agreement. The t two Interest cost of the Bonds to the City, including the Interest rates bane by the Balls and the costs of issuance funded with proceeds of the Bonds. will not exceed 4:75% per annum, and no Bond will bear a Oaxacan interest rate in excess of 4.50% per annum. The proceeds w the Bonds viol be utilized (i) to finance all w a portion of the costs of the acquishion, construction and equip- ping of the IrMew, and (ii) to pay prinfing, underwriting, legal and other expenses incidental to the 1 Issuance of the Bonds. The Bonds shall be issued in the forms and cl n lnallons, shall be Salad. j shall be numbered, shall mature, shall be subject to redemption prior to maturity, and $Kali contain such other terms, covenants'and conditions. all as set forth in that certain Trust Indenture dated as of July 15, 2008 (the 'IbeenNre'), by and belwaen the City and a bank or whet financial Institution to be named and having corporate trust powers (the 'Trustee"), to be entered Into by the City and 1 the Trustee In substantially the form Submitted to this meeting. ^ * 4 The Mayor Is hereby authorized and directed to execute and deliver the Bonds"ln substantially the i form thereof contained in the Indenture submitted to this meeting, and the City Clerk is hereby r authorized and directed to execute and deliver the Bonds and to affix the Goal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Bonds to be accept., and authenticated by the Trustee. The Mayor is hereby authorized to cower with the Trustee, the Undarwriler and Kutak Rock LLP, URIs Rack, Arkansas ("Bond Counsel'), in order to comp a the Bonds In substantially the form thereof contained In the Indenture Submitted to this mewing, with such changes as shall be approved by such persons executing the Bonds, their execution to con- stituta conclusive evidence of such.appreval. Sectlan21t Is affirmed that, pursuant to Amendment 78 and the An, the debt service obligations of - i the City with respect to the Bonds shall constitute general obligations of the City, and the total annu- al payments owed by the City pursuant to the Bondsin each of the City's fiscal years shall be charged against and paid frau the general revenues of the City for such fiscal years.As required by - Amendment 78 and the Act, the City hereby finds end detomanes that: • ' ' i ' (a) Each of the Project components to be financed with proceeds of me Bands has an average use- ful life In excess of one year; and (b) The aggregate nominal principal amount of all obligations of the City under Amendment 78 and ' the Act, including the Bontls, will at no time exceed five percent (5%) of Me assessed value of the taxable feat and,personal.property-Ixated wiftun.Me.Cdy,as.deterrkned.by-the law.tax assessment, 1 completed prier to Me dare hereof. -r d, - - 1 1 Section$,To prescribe the terms and conditions upon which Me Bonds ere to be executed, authery - ' acated, issued, accepted, held and Secured, the Mayor is hereby authorized and directed to exe- cute and acknowledge the Indenture, and the City Cleric is hereby authorized and directed to exe- - " '-- cute and acknoMedge the Indenture and to affix the seal of the City thereto. and the Mayor and tre City Cleric are hereby authorized and directed to cause the Indenture to be accepted, executed and acknowedged by Me Trustee. The Indenture is hereby approved in substantially the torm.suMnk. tell to this meeting, including, without limitalmn, the provisions thereof pertaining to the terms of the Bods. The Mayor is hereby authorized to confer with the Trustee: Ihe Undervmter end Bond Counsel In order to complete the Indenture in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Indenture, their execution to carte le conclusive evidence of'such approval. r (Advice Is given mat a copy of the Indenture in substantially the form euthorrzed to be execwetl is 1 on file Mth the City Clerk and is availableforInspection by any Interested Seolim A. re is erey au orae an WM a Pre immary Icial !element of the City. ) Including the cover page and appendices attached thereto, relating to the Bonds. The Preliminary Official Statement is hereby 'deemed final' by the City Wihin the meaning of U.S. Securities and Exchange Commission Rule 15c2-12. The dislnbution of the Preliminary Official Statement is there- by approved. The Preliminary Official Statement, as amended to conform to the terms of the Bond Purchase Agreement, including Exhibit A thereto, and weh such other changes and amendments as are mutually agreed to by the City and the Underwriter, is herein referred to as the *Official Statement; and the Mayor is hereby authorized to execute the Official Statement for and on behalf - of the City. The Official Statement is hereby approved in substantially the tam of the Preliminary Official Statement submitted to this meeting, and the Maya is hereby authorized to confer with the Trustee, Rte Underwriter and Bond Counsel in order to complete the Oficial Statement In substan- tially the farm of the Preliminary Official Statement submitted to this meeting, with such changes as Shall be approved by such persons, the Mayors execution to constitute concWsive evidence of sucli approval. (Advice is given Nat a copy of the Preliminary Official Statement is on file with the City Clerk and Is available for inspection by any interested person.) Sect on 5 In order to prescribe the terms and conditions upon which the Bonds are io be sold to the Underwdtee the Maya is hereby allhcdzed and directed to execute a Bond Purchase Agreement on behalf of the City, to be dated as of the date of Its execution (the '9ond Purchase Agreement-), by and -between the City and Me 'Undenwd[ec and the Bond Purchase Agreement Is hereby approved In substamieily the form submitted to this meeting, and the Mayor Is hereby authorized to confer with the Underwriter and Bond Counsel in order to complete the Band Purchase Agreement In substantially the tam submitted to this meeting, with such changes as shall be approved by such persons executing the Bond Purchase Agreement, their execution to constilule conclusive evidence of such approval. 0 . t • { i ! tit (Advice is given that a copy of the Bond Purchase Agreement in substantially the form authorized to be executed Is on file with the City Clerk and Is available for Inspection by any interested person.) Section 6. In order to provide for continuing dI sdosure of certain financial Sure! operating Incr merlon with respect to the City in compliance Will the provisions of Rule 15c212 of the U. S. Securetes and Exchange Commission, the Mayor is hereby authorized and directed to execute a Continuing Disclosure Agreement to be dated as of the date of Its execution (the 'Continuing Disclosure Agreement'), by and between the City and the Trustee, and the Mayor.is hereby authorized and directed to cause the Continuing Disclosure Agreement to be executed by the Trustee. The Confining Disclosure Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorizetl to confer with the Trustee, the Underwriter and Bond Counsel In order to complete the Continuing Disclosure Agreement in substantially the form submit- ted to this meeting, with such changes as shall be approved by such persons executing the Continuing Disclosure Agreement, their execution to constitute conclusive evidence of such approval. (Ativice is given final a copy of the Continuing Disclosure Agreement in substantially the ram author- mad to be executed is on file with the City Clerk and is available for inspection by any interested per. eon.) Best lso7. The Mayor and City Clerk, for and on behalf of the City, are hereby authorized and direct- 1 ed to do any and all things necessary to effect the issuance, sale, execution and delivery 61 the Bands and to oflact the execulion and delivery of the Indenture, me Bond Purchase Agreement, the Oficial Statement, the Confining Disclosure Agreement and a Tax Regula((ory Agreement relating M the tax exemption of Interest on the Bands, and to perform all of the obAgations of the City under and pursuant thereto. The Mayor and the City Clerk are lumber authorized and directed;for and on behalf of the City, to execute act papers, documrents, certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof, - Section 8 Kutak Rock LLP, tittle Rock, Arkansas, is hereby appointed to act as Bond Counsel on behalf of the City in connection vAlh the Issuance and sale of the Bonds. Section 9�The provisions of this Ordinance are hereby declared to be severable, and If any section, phrase or provision shall for any reason be declared to be Illegal or invalid, such declaration shall not affect the validityof the remainder of the sections, phrases or provisions of this Ordinance, PASSED and APPROVED this 6th day of June, 2006. APPROVED: PflOVEDM ATTEST. w. D1M GOODY, Wyor - - SONORA ITR, City CNek�(, �� i Of �, y s r?o City of Fayetteville Staff Review Form City Council Agenda Items or r Contracts 6/6/2006 City Council Meeting Date Marsha Farthing Accounting and Audit Finance & Internal Services Submitted By Division Department Action Required: Action Required: Approval of the issuance of Amendment 78 five year bonds in the amount of $3, 165,000 to fund the costs of the relocation of Fire Station #5 to Crossover and Old Wire Road and to construct a new fire station (#3) at the Tyson complex at Huntsville and Happy Hollow Road. $3, 1651000 $ Cost of this request Category / Project Budget Program Category / Project Name 4470-9470-5500-00 $ Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached Previous Ordinance or Resolution # Department Directo Date Original Contract Date: ZZ - OC Original Contract Number: City Att ney Date Received inUIR Office Finance and Internal Service Direct Date Received in Mayor's Office 3�G Mayor Date Comments: ORDINANCE NO. AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED THREE MILLION FIVE HUNDRED THOUSAND DOLLARS ($3,5003000.00) OF THE CITY'S GENERAL OBLIGATION BONDS, SERIES 2006A, FOR THE PURPOSE OF FINANCING ALL OR A PORTION OF THE COST OF FIRE STATION FACILITY IMPROVEMENTS; AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE PURSUANT TO WHICH THE BONDS WILL BE ISSUED AND SECURED; AUTHORIZING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT PURSUANT TO WHICH THE BONDS WILL BE OFFERED; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT PROVIDING FOR THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AND PRESCRIBING OTHER MATTERS RELATING THERETO. WHEREAS, the City Council of the City of Fayetteville, Arkansas (the "City") has determined that there is a great need for a source of funds to finance the costs of acquisition, construction and equipping of additional fire station facilities (i) at Routh Park (near the intersection of Crossover and Old Wire Roads) and (ii) at the former Tyson Complex (near the intersection of Huntsville and Happy Hollow Roads) (collective the "Project'); and WHEREAS, the City is authorized and empowered under the provisions of the Constitution and laws of the State of Arkansas, including particularly Amendment 78 to the Constitution of the State of Arkansas ("Amendment 78") and the Local Government Short-Term Financing Obligations Act of 2001 , codified as Arkansas Code Annotated (2005 Supp.) Sections 14-78- 101 et seg. (as from time to time amended, the "Act'), to issue and sell its short-term financing obligations (as defined in the Act) to finance the costs of acquiring, constructing and installing real property or tangible personal property having an expected useful life of more than one year, which short-term financing obligations shall be secured by and payable from the general revenues of the City; and WHEREAS, as authorized under the provisions of Amendment 78 and the Act, the City has now determined to issue and sell its General Obligation Bonds, Series 2006A, in the aggregate principal amount of not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) (the "Bonds"), in order to provide funding for the Project; and WHEREAS, the City has made arrangements for the sale of the Bonds to Crews & Associates, Inc., Little Rock, Arkansas (the "Underwriter"), pursuant to the terms of a Bond Purchase Agreement between the City and the Underwriter (the "Bond Purchase Agreement") in substantially the form presented to and before this meeting; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . Under the authority of the Constitution and laws of the State of Arkansas, including particularly Amendment 78 to the Constitution of the State of Arkansas and the Act, there is hereby authorized the issuance of bonds of the City to be designated as "General Obligation Bonds, Series 2006A" (the "Bonds"). The Bonds shall be issued in the original aggregate principal amount of not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000), shall mature on July 1 in the years 2007 through 2011 , inclusive, and shall , bear interest at rates as shall be specified in the Bond Purchase Agreement. The true interest cost of the Bonds to the City, including the interest rates borne by the Bonds and the costs of issuance funded with proceeds of the Bonds, will not exceed % per annum, and no Bond will bear a coupon interest rate in excess of % per annum. The proceeds of the Bonds will be utilized (i) to finance all or a portion of the costs of the acquisition, construction and equipping of the Project, and (ii) to pay printing, underwriting, legal and other expenses incidental to the issuance of the Bonds. The Bonds shall be issued in the forms and denominations, shall be dated, shall be numbered, shall mature, shall be subject to redemption prior to maturity, and shall contain such other terms, covenants and conditions, all as set forth in that certain Trust Indenture dated as of July 15, 2006 (the "Indenture"), by and between the City and , as trustee (the "Trustee"), to be entered into by the City and the Trustee in substantially the form submitted to this meeting. The Mayor is hereby authorized and directed to execute and deliver the Bonds in substantially the form thereof contained in the Indenture submitted to this meeting, and the City Clerk is hereby authorized and directed to execute and deliver the Bonds and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Bonds to be accepted and authenticated by the Trustee. The Mayor is hereby authorized to confer with the Trustee, the Underwriter and Kutak Rock LLP, Little Rock, Arkansas ("Bond Counsel"), in order to complete the Bonds in substantially the form thereof contained in the Indenture submitted to this meeting, with such changes as shall be approved by such persons executing the Bonds, their execution to constitute conclusive evidence of such approval. Section 2. It is affirmed that, pursuant to Amendment 78 and the Act, the debt service obligations of the City with respect to the Bonds shall constitute general obligations of the City, and the total annual payments owed by the City pursuant to the Bonds in each of the City's fiscal years shall be charged against and paid from the general revenues of the City for such fiscal years. As required by Amendment 78 and the Act, the City hereby finds and determines that: (a) Each of the Project components to be financed with proceeds of the Bonds has an average useful life in excess of one year; and (b) The aggregate nominal principal amount of all obligations of the City under Amendment 78 and the Act, including the Bonds, will at no time exceed five percent (5%) of the assessed value of the taxable real and personal property located within the City, as determined by the last tax assessment completed prior to the date hereof. Section 3. To prescribe the terms and conditions upon which the Bonds are to be executed, authenticated, issued, accepted, held and secured, the Mayor is hereby authorized and directed to execute and acknowledge the Indenture, and the City Clerk is hereby authorized and directed to execute and acknowledge the Indenture and to affix the seal of the City thereto, and the Mayor and the City Clerk are hereby authorized and directed to cause the Indenture to be accepted, executed and acknowledged by the Trustee. The Indenture is hereby approved in substantially the form submitted to this meeting, including, without limitation, the provisions thereof pertaining to the terms of the Bonds. The Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Indenture in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Indenture, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Indenture in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 4. There is hereby authorized and approved a Preliminary Official Statement of the City, including the cover page and appendices attached thereto, relating to the Bonds. The Preliminary Official Statement is hereby "deemed final" by the City within the meaning of U.S. Securities and Exchange Commission Rule 15c2- 12. The distribution of the Preliminary Official Statement is hereby approved. The Preliminary Official Statement, as amended to conform to the terms of the Bond Purchase Agreement, including Exhibit A thereto, and with such other changes and amendments as are mutually agreed to by the City and the Underwriter, is herein referred to as the "Official Statement," and the Mayor is hereby authorized to execute the Official Statement for and on behalf of the City. The Official Statement is hereby approved in substantially the form of the Preliminary Official Statement submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Official Statement in substantially the form of the Preliminary Official Statement submitted to this meeting, with such changes as shall be approved by such persons, the Mayor' s execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Preliminary Official Statement is on file with the City Clerk and is available for inspection by any interested person.) Section 5. In order to prescribe the terms and conditions upon which the Bonds are to be sold to the Underwriter, the Mayor is hereby authorized and directed to execute a Bond Purchase Agreement on behalf of the City, to be dated as of the date of its execution (the "Bond Purchase Agreement"), by and between the City and the Underwriter, and the Bond Purchase Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Underwriter and Bond Counsel in order to complete the Bond Purchase Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Bond Purchase Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Bond Purchase Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 6. In order to provide for continuing disclosure of certain financial and operating information with respect to the City in compliance with the provisions of Rule 15c2- 12 of the U. S. Securities and Exchange Commission, the Mayor is hereby authorized and directed to execute a 3