HomeMy WebLinkAbout1948-10-29 MinutesUL1�
The Council of the City of Fayetteville in the County of Washington,State of Akansas
met pursuant to adjournment from its regular session of October 25#1948,at 5 O'Cloct# P.M.
on the 28th day of October,1948.
Present: Mayor G.T.Sanders,City Clerk J.W.McGehee#and Aldermen; Hale and Feathers.
Absence of a quorum was noted and Alderman Hale made a motion that the Council adjourn til
19 O'Clocks A.M., October 29,1948, this motion was seconded by Alderman Feathers, and was
passed unanimously, and the Mayor declared the Council -adjourned till 10 O'Clock, A.M.,
October 29# 1948.
The Council of the City of Fayetteville in the'County of ryashington# State of Arkanm
met pursuant to adjournment from its adjourned meeting of October 28,1948, at 10 O'Clock,
AIM., on the 29th day of October, 1948.
The meeting was called to order by the Mayor,and the roll being called, there were:
Present :G.T.Sanders# Mayor, in the chair, and the following named aldermen:
Hale, Feathers, Harlan,Bohe, Williams, Wgitfield# White and Grayand City Attorney Brice
Dickson and City Clerk J.W.McGehee #and City Engineer E.T.Brpwn. Absent :None.
The Mayor stated that consideration should be ddrected by said Council to the
_.estion o the passage and adoption of an ordinance to refund outstanding indebtedness
of the waterworks system and for the construction -of betterments and improvements to the
waterworks system for the City of Fayetteville, Arkansas*
After discussion by said Council, Alderman Bohe introduced in writing an
ordinance entitled: " AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF BETTERMENTS AND
IMPROVEMENTS TO THE WATERWORKS SYSTEM OWNED AND OPERATED BY THE CITY OF FAYETTEVILLE#
ARKANSAS; PROVIDING FOR THE -ISSUANCE OF WATERWORKS REVENUE REFUNDING AND IMPROVEMENT BONDS
AND FIXING THE RATES FOR SERVICE TO BE FURNISHED BY THE WATERWORKS SYSTEM, "'and moved that
the same be read in full. The motion being seconded by Alderman Whitfield, the question wa
put by the Mayor on the adoption of said motion, and the roll being called, the following
voted:
Aye: Hale#FeAthers, Harlan, Bohe, Williams# Whitfield, White and Gray. Nay:None.
W ereupon the Mayor declared the motion duly passed and ordered that said ordinance be res
Said ordinance was then read in full by J.W.McGehee# City Clerk#
Alderman Hale then moved that the rule requiring an ordinance or resolution be
read in full.on three different days -be -suspended and that said ordinance be placed on its
second readings seconded by Alderman Whitfield, and thereafter the Mayor put the question
on the adoption of said motions and the roll being called, the following noted:
Aye: Hales Feathers, Harlan# Bohes Williams, Whitfield, White and Gray. Nay:None.
PJ�ereupon, the Mayor declared the motion duly passed and said ordinance placed on its
second reading. The ordinance was then read by J.W.McGehee# City Clerk.
Alderman Whitfield moved that the rules be further suspended and the ordinance be
placed on its third and final reading. This motion was seconded by Alderman Gray, and
thereafter the Mayor put the question on the admption of said motion, and the roll being
called, the following voted:
Aye: Hale# Feathers* Harlan# Bohe# Williams, Whitfiedd# White and Grays Nay None.
Whereupon, the Mayor declared the motion duly carried.
Said ordinance was read in full by Alderman Bohe, who moved its adoption, and
after due consideration thereof by said Council# the Mayor put the question upon the adop
tion of said motion and upon the passage of said ordinance, and the roll being called#
tte following voted:
Aye: Hale, 10eathers# Harlan, Bohes Williams, Whitfield, White and Gray. NaysNon
Whereupon the Mayor declared said motion duly adopted and said ordinance duly passed, and
signed his approval to said ordinance, same attested by the City Clerk and impressed with
the seal of said City.
Alderman Williams then moved that said ordinance go into immediate operation
and become effective without delay because of the emergency declared in the final section
of said ordinance, which section was read in full, seconded by Alderman Hale. The Mayor
put the question on the adoption of said motion, and the roll being called# the following
voted:
Aye: Hale, Feathers, Harlan, Bohes Williams, Whitfield, White and Grays Nay No
Whereupon the Mayor declared said motion duly passed*
ORDINANCE'NO. 943.
AN ORDINANCE PROVIDING FOR THE CONSTRUCYION OF BETTERMENTS AND IMPROVEMENTS
TO THE WATERWORKS SYSTEM OWNEDAND OPERATED BY THE CITY OF FAYETTEVILLE# ARKANSAS;
PP OVIDING FOR THE ISSUANCE OF WATERWORKS REVENUE, REFUNDING AND IMPROVEMENT BONDS; AND
FIXING THE RATES FOR SERVICE TO BE FURNISHED BY THE WATERWORKS SYSTEM.
WHEREAS, the City Council of the City of Fayetteville, Arkansas #(hereinafter
sometimes called "Council")# has determined to construct necessary betterments and im-
pI ovements to the Waterworks System now owned and operated by the City of Fayetteville#
Arkansas, under the provisions of Act No. 131 of the Acts of the General Assembly of the
Spate of Arkansas of 1933, as amended (hereinafter sometimes collectively called "Act No.
1131 of 1933s as amended")* and
WHEREAS, the Council has caused to be made by a duly qualified engineer
estimates of the costs of construction of betterments and improvements to such Waterworks
System, consisting of the acquisition of a new and more adequate source of supply,
i'rcluding treatment plant facilities, additional pumping units and transmission lines,
and the construction of additions to the existing distributing system including feeder
dines and a storage reservoir, and including engineering, legal and other expenses
incidental thereto, and interest to six months after the estimated date of completion of
the construction which is December 1 -,,194 9 which the Council finds to be a total
of $765,6nn; and
WHEREAS, the City of Fayetteville, Arkansas, by ordinance duly passed on the
:2
2211d day of February, 1932, authorized the issuance of 360 bonds, numbered from 1 to 36n,
iniPlusivep to be executed by the Board of Managers df the Waterworks Plant of Water Improve
District Number One of the City of Fayetteville.. Arkansas, or the Commissioners of said iml
meet district and called "City of Fayetteville Water Improvement District Number One of the
City of Fayetteville, Washington County, Arkansas Veterans' Hospital' Bonds",' to be payable
from the revenues of the Waterworks System and the surplus in the general revenue fund of t
City of Fayetteville, each year, after the payment of the costs and expenses of operating 1
Cit Government, not exceeding, however, the sum of $3,250 per annum, in the principal am(
of1;l7n9nO0, dated.June 15, 1952`2 and maturing serially on June 15 in each of the years 19:
1952, inclusive, and bearing interest at the rate of Five Per Cent (5%) per annum, which rs
interest was by agreement on June 159 1939, reduced on the bonds of, the issue then remainii
to Four Per Cen,t�(4%), for the purpose of developing, improving, and extending the Waterwo;
of the City of Fayetteville; and
WHER MS,,�there are noW outstanding and unmatured $34940n principal amount of said
numbered 257 .40 270, inclusive; 272 to 2999 inclusive; 363 to 32n inclusive; 338 and 339;
and 349 and 35n and maturing serially on June 15 in each of the ,years 1949 to 1952, inclu:
interest having been paid in full to June 15, 1948, but callable for payment before maturil
an ual interest paying date upon thirty days' notice published in a newspaper published in
ofjFayetteville, Arkansas;,and
WHEREAS, -in order to provide for the payment of the costs of extending and enlarg:
said Waterworks System immediately required but forming a part of the plans and .estimates
above described, the City of Fayetteville, Arkansas caused to be issued $lnn,nnn of Four P
(4%) Waterworks Bonds, dated as of September 10, 1948, with monthly payments due thereon of
Day of each month beginning February In, 1949, and extending through April In, 1951, but ;
call for prior redemption upon one weeks notice before the date set for redemption publish
newspaper of general circulation published in the City of Pa yetteville, Arkansas; and
WHEREAS, in order to raise the money to finance the said Construction and to refui
$314,4no of Four Per Cent (4%) bonds and the $100,noO of Four Per. Cent Waterworks Revenue B,
Council has determiped to issue.Watbrworks Revenue Refunding and Improvement Bonds hereina:
authorized, to be payable solely from the revenues of the Waterworks System; and
. WHEREAS, the Council has sold to W. R. Stephens Investment Company, Inc. and T. J
Sons, of Little Rock, Arkansas, $8nn,nnn of negotiable bonds at the price of par for bonds
interest at the rate of 3.20% per annum and accrued interest to date of delkery, payhble,s
the revenues of the Waterworks System, dated December 1, 1948 and maturing serially on Dec
ieach of the years 1949 to -1978, inclusive, the purchasers to pav the costs of printing
Arid one-half of the fee' of the attorneys, who are to approve the bonds, with the privilege
said bonds into an issrne of bonds, bearing a lower 'rate of interest for which the City will
ceive substantially the same as upon the 3.20% bonds at the price bid; and
WHEREAS, the said purchasers have elected to convert the said $8nn,nnn of 3.2n%
ar� issue of $827,nnn, $2n4,nnn bearing Two and One-half Per Cent(2-,k%) interest and $623,0^
THree Per Cent (3%) interest and more fully described hereinafter, by which conversion the
,finds that the City will pay.and receive substantially the same as upon the 3.20% bonds at
bid: and
N
E
a
e
e
b
E
c
t
m;
to
of
unpaid
System
44 and 345;
ive, the
y at any
the City
ng the
f costs
r Cent
the Tenth
object to
d in a
the said
s , the
Raney &
bearing
lely from
mber 1,
he bonds
f converting
pay and re-
onds tch
bearin
Council
the pric
WHEREAS, the Cou_ncil.has caused to be made an estimate of the present value of the existing
terworks system now owned and operated by the said City, and an estimate of the value of the Water-
rks System after the contemplated construction of said betterments and improvements;
NOW, THEHEFuRE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYF.TTEVIILLE&
QECTION 1. That the action of the City Council of the City of Falretteville, Ar
brua ry 22, 1932, in the issuance of the said $17n,nnn Five Per Cent Bonds be and it is
tified and confirmed and that the 'said outstanding and unmatured.$340.4nn.nn principal
id bonds be and they are hereby ratif ied and confirmed as a valid and legally binding
the Waterworks System of the City of Fayetteville, Arkansas, payable solely from the
e" said Waterworks System.
SECTION 2. That the present value of the Waterworks System now owned and operat
ty of Fayetteville, Arkansas, is found and declared to be the sum of $935,7nn and,that
lue of said dsaterworks System after such proposed improvements and betterments have be
e sum of $1,7n1,31*100 and consequently that the value of such improvements and bettermen
m of .11,765,6nn; and the proportion of the value of said improvements and betterments to
stem, when the said improvements and betterments have been provided, will be forty-five
ARSAS:
as, of
ebg
nt of
btedness
nues of
by said
total
made is
is the
e entire
rcent.
SECTION 3. That the City exercise its option to call for prior redemption the ogIIstanding and
matured $34,4nn principal amount of Four Per Cent bonds and the ot:tstanding and unmature, $lnn,nnn
incipal amount of Four Per Cent Waterworks Revenue Bonds and that notice therefore be given in
cordance with the provisions of the respective issues.
SECTION 4. That under the authority of Act No. 131 of 1933, as amended, 'haterwoi
funding and Improvement Bonds of the City (hereinafter called "Bonds") be issued in the
ount of Eight Hundred Twenty -Seven Thousand Dollars ($827,Onn), the proceeds of the sale
sue are necessary to provide sufficient fu•ds to pay the cost of the construction of the
d improvements to the Waterworks System.described herein, incl•lding engineering, legal s
penses incidental thereto and to the issiie of the bonds, and interest to six months afti
timated date of completion of the construction, which is December 1 , 194 9 ; that :
designated "City of Fayetteville 2z% (and 3%) Waterworks evtT enue Re -iin3ing a`nImprovet
nds", be dated December 1, 19481 be of the denomination of $1,00n, numbered from 1 to 8'4
usive, and mature in numerical order on the first day of December in each of the follos
ars and the following amounts, respectively, but callable as le reinafter set forth;
d Numbers Denomination Amount Year
1 "•
s Revenue
otal
of which
betterments
d other
the
id bonds
nts
, ino
ng
205)
Bond Numbers Denomination Amount Year
1-18 $l ,nnn $18,nnn 1949
196 ),nnn 18,nnn 195n
37-55 l,nnn 19,nnn 1951
56-74 l,n m 19 nnn I1g
75-94 ),nnnn'� nt'nn 1953
95-115 ),nnn 21,0nn 1954
116-136 l,nnn 21,nnn 1955
137-158 ),nnn 22,nrim 1956
159-181 l,nnn 83,nnn 1957
182-20_4_ —_-- _ -- -),nnn_ - - - -- 23,nnn -- - -- 1958
2n5-228 ),nnn 24,0nn 1959
229-252 l,n m 24,nnn 196n
253-277 ),nnn 25,nnn 1961
278-3n3 ),nnn 26,nnn 1962
3()4-329 ),nnn 26,nnn 1963"
33n-356 ),nnn 27 ;nnn 1964
357-384 l,nnn 28,nnn 1965
385-41.3 ),nnn 29,nnn 1966
414-442 ),nnn 290nnn 1967
443-472 11 nnn 3n,nnn 1968
473-5n3 ),nnn 31,nnn 1979
5n4-535 l,nnn 32,nnn 191n
536-568 i,nnn 33,nonn 1971
569-6n2 ),nnn 34,nnn 1972
603-637 l,nnn 35,nnn ' 1973
638-673 1, nnn 36,nnn 1974
674-71n ),nnn 37,nnn 1975--
711-746
975-.711-748 $,nnn 38,nnn 1976
749-787 ),nnn 39,nnn 1977
788-827 1, non 4n, nnn 1978
that $2n4,nnn.nn of bonds bear interest at the rate of two and one-half per -cent (2A,%) per annum from
date to maturity and that $62390nn of bonds bear interest at the rate of three per cent (3,%) per annum
from date to maturity, payable' -on June 1, 1949, and semi-annually thereafter on the first days of June
and December bf each year; that the bonds be signed by the Mayor and City Clerk and sealed with the
corporate sea of the City, and that the interest upon the bonds be evidenced by coupons thereto
attached, #hecoupons to be signed by said Mayor and City Clerk by their facsimile signatures; that
said Mayor and City Clerk shall by the execution of the bonds adopt as and for their own proper
signatures tb�eir facsimile signatures appearing on said coupons; that the bonds and coupons be payabl
in such funds as at the time of the reppecti%/e payments are legal tender for the payment of debts)
due the United States of America, at the office of The Commercial National Bank 6f'Little Rock,
Little Rock, Rrkansas.
The bonds, together with interest thereon, shall be payable solely out of the Waterworks Re-
venue Bond Fund as hereinafter defined, and shall be a valid claim of the holder thereof only against
such Fund and the amount of the revenues pledged to such Fund, which amount of said revenues is hereby,
pledged and mortgaged for the equal and ratable payment of the bonds 'as they severally mature and shah
be used for nl other purpose than to pay the principal of and interest on the bonds.
No. I SF.CTI05. That said bonds and coupons be in substantially the #following form:
United States of America
STATE OF' ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
WATERWORKS REVENUE REFUNDING AND IMPROVEMENT BOND
KNON! ALT., MF.N,.iBY THES5 PRESFPTTS:
That the City of Fayetteville, -in the County of Washington and State of Arkansas, for value
rece�ived, herby promises to pay to bearer, solely from the special fund provided thereforas here-
inafter set Porth, the principal sum of
DOLIA RS
on the first day of December, 19 , and to pay, sole y fran said special fund, interest hereon
at the rate of two and one-half per cent (2-21%) per annum from date, semi-annually on the first days
of.June and December in each year, beginning June 1,,1949, upon presentation and surrender of the
annexed coupons as they severally become due. Both prdrncipal hereof and interest hereon shall be
payable in sch funds as at the time of the respective payments are legal tender for the payment of
debts due the United States of America, at the office of The Commercial National Bank of Little Rock
2n the City of Little Rock, Arkansas.
This bond is one of a series of eight hundred and twenty-seven bonds, aggregating, Fight Hundre
Twenty -Seven Thousand Dollard ($827,Onn), dated December 1, 1948, numbered from 1 to 827, both
inclusive, all) of like tenor and effect, except as to interest rates and maturity,•and issued for the
pusp;ose of priovid Ing for the payment of the cost of the construction oi' betterments and improvements
to the waterworks system of the City of Fayetteville, Arkansas, (hereinafter called.the "Waterworks
System"), ana refunding valid and legally binding indebtedness incurred in the construction of better
merits and improvements to the Waterworks System of the City of Fayetteville, Arkansas,
This Bond and the series of which it forms a part are issued pursuant to and in full compliant
with the Consltitution and laws of the State of Arkansas, particularly Act No. 131 of the regular
session of the General Assembly of the State of Arkansas for the year 1933, as amended, and pursuant
to an ordinance of the City Council of the City of Fayetteville, duly adopted; and do not constitute
an indebtedness of said City of Fayetteville within any constitutional or statutory limitation. Said
bonds are payable solely from a fixed amount of the gross revenues from the waterworks system, which
amount shall he suffiecient to pay the principal of and interest on the bonds as the same become due
and payable. Said amount has been duly set aside and pledged as a special fund for that purpose and
identified 9,43 duly adopted by the City Coundil of the said City of Fayetteville on the 29 day of
Fbond6as
9 punder which this bond is authorized to be issued, and in said ordinance the said City
vil.�le has fixed and has covenanted and agreed to maintain rates for water services which
fficient at all times to provide for the Ia yment of the principal of and interest on the
e same become due and payable, to provide for the creation of separa#e depreciation funds
r,i replacements to said waterworks system, and to provide for the payment of the reasonabl,
as the Waterworks Revenue Bond Fund", created by Ordinance No.
06
of operation and maintenance of said waterworks system.
This bond is expressly made negotiable under sA>id Act No. 131 and is issued with the
that the laws of the State of Arkansas shall govern the construction thereof.
By virtue of the authority of said Act No. 131 of the General Assembly of the State
forthe year 1933, there is granted and created a statutory mobtgage lien on the betterment
imp ovements to said waterworks system to and in favor of the holders of said bonds and e9c
and1to and in favor of the holders of each of the coupons evidencing the interest on said b
said betterments and improvements to said waterworks system shall remain subject to such at
mortgage lien until the payment in full of all of said bands, both principal and interest,
have been made.
I The City, -k its option, may call for redemption before maturity, in lawful funds of
States of America, in inverse numerical order, at par and accrued interest, any bond or bon
issue, at any interest paying date, only out of the unexpended proceeds from the sale of th
this issue or out of any surplus revenues derived from the operation of the waterworks syst
Wat'rworks Revenue Bond Fund in excess of the amount.required to maintain the said Fund, a
aftgr December 1, 1953, from any available funds. Notice of the call for the redemption s
published by the City Clerk once a week for two weeks before the date of such redemption in
of general circulation published in the City of Little Rock, Arkansas, and having a general
throughout the State of Arkansas, and after the date mentioned in said call, the bond or bo
will cease to bear interest; provided funds for the payment are on deposit at that time.
1
ent
Arkansas
and
of them,
ds; and
utory
hall
he United
of this
bonds of
in the
on and
11 be
newspaper
irculation
s so called
IT IS HEREBY CERTIFIED, RECITED, ATND DECLARED that all acts, conditions, and things required to
exist, happen, and be performed precedent to and in the issuance of this bond have existed,�have happened
and have been performed in due time, form and manner, as ,required by law; that the indebtedness re.
presented by this bond and the issue of which it forms a part does not exceed any constitutional or
statutory limitations; and that sufficient of the income and revenue which is deemed to be derived from
the operation of said waterworks system has been pledged to and will be set aside into said special
fun[ for the payment of the principal of"and interest on said bonds.,
This bond shall not be valid until it shall have been authenticated by the certificate hereon,
duly signed by The Commercial. National Bank of Little Rock, Little Rock, Arkansas.
I IN WITNESS WHEREOF, the City of Fayetteville, Arkansas, by its City Council, has caused this bond
toa signed by the Mayor and City Cbrk thereof and sealed with the corporate seal of said deity, and
hasicaused the coupons hereto attached to be executed by the facsimile signatures of said Mayor and City
Clexk, al -1 as of the first day of December, 1948.
110
prc
so :
Con
tin
be'
da;
so(
PQ
(FORM OF COUPON)
, Arkansas
or
On the back of said bonds is to appear the follov ing:
CERTIFICATE
This is one of the bonds aggregating $827,Onn described herein.
Little Rock, Arkansas
1948
The Commercial National Bank of Little
am
SECTION 6. That the following.monthly rates be fixed as rates to be charged for water to
bylthe Waterworks System, (both before and after the completion of said betterments and i
which the Council finds are reasonable and necessary minimum rates to be charged:
First 190nn gallons,
June
Next
29,nnn gallons
$
l,nnn
gallons
On the first day
of December,
19 ,
the City
of Fayetteville, Washington
Countylp
Arkansas,
wises to pay to bearer
the sum of
617¢ per
l,nnn
Dolly rs ($
1)
)1y out of the fund specified
in the
bond to
w c
[scoupon apper a ns, at the
office
of The
aercial National Bank of
Little Rock
in the
City of
Little Rock, Arkansas, in such
funds
as at the
i of payment hereof are
legal tender
for the
payment
of debts due the United States
of America,
per Month
ig interbst then due on.
its 2—,,% Waterworks Revenue
Meter
Refunding and Improvement Bond
dated
the first
of December, 1948, and
numbered
;
unless
the bond to which this coupon
appertains
is
ier cafor payment.
Meter
7.50
0101lled
For
4 "
or
On the back of said bonds is to appear the follov ing:
CERTIFICATE
This is one of the bonds aggregating $827,Onn described herein.
Little Rock, Arkansas
1948
The Commercial National Bank of Little
am
SECTION 6. That the following.monthly rates be fixed as rates to be charged for water to
bylthe Waterworks System, (both before and after the completion of said betterments and i
which the Council finds are reasonable and necessary minimum rates to be charged:
First 190nn gallons,
or fraction thereof, $1.nn
Next
29,nnn gallons
@52�er
l,nnn
gallons
Next
27n,nnn
gallons
638�per
1,pn0
gallons
Over
3nn,nnn
gallons
617¢ per
l,nnn
gallons
Meter Service
Charge
For
5/8"
Meter
.75
per Month
For
3/4"
Meter
1.13
per Month
For
1 "
Meter.
1.5n
per Month
For
112"
Meter
2.25
per Month
For
2 "
Meter
3.75
per Month
For
3 "
Meter
7.50
per Month
For
4 "
Meter
11.25
per Month
For
6 "
Meter
22.5m
per Month
The Meter Service Charge is additional to the monthly charge for rates based on
consumption.
furnished
vements),
609
♦1
■,
2Q
Gross bills will be subject to a discount of Fifteen Per.Cent (15%) if paid on or before the
tenth Day of to Month following the date of the last meter reading,
Minimu amount per full month: $I.On
Minimum amount per fractional month: $ ,5n
And ths Coimcil further finds and declares that such rates as above set out will produce a
total revenue sufficient to pay the total operation and maintenance expense of the waterworks system
as so improve , and to provide for the payment of the bonds herein authorized to be issued, both
principal and interest, as the same fall due and are payable, and to create all funds .herein provided.
Said rates shall never be reduced until all bonds herein authorized and all coupons thereto
attached have been paid in full and shall, when necessary, be increased in an amount sufficient to
urovid a for the maintenance of the f>lnds hereinafter described.,
SECTIO
furnished wit
or instrument
system, the r
City or such
The revenues
waterworks sa
from the oper
as requiring
facilities or
SECTIO
the City Trea
applie d to th
SECTIO
waterworks sy
(the amount o
SECTIO'
which there s
system, Such
under and sec
works! system
7. None of the facilities or services afforded by the Waterworks System shall be
out a charge being made therefor. In the event that the City or any department, agency
lity thereof shall avail itself of the facilities or services afforded by the waterworks
asonable value of the services and facilities so afforded shall be charged against the
apartment, ageney, or instrumentality and shall be Raid: for as the charges therefor accru
a received from the City shall' be deemed to be'revenues derived from the operation of th
tem, and shall be used and accounted for in the same manner as any other revenues derive
tion of the waterworks system, provided, however, that nothing herein shall be construed
ne City oP any department, agency, or instrumentality thereof to avail itself of the
services afforded by the Waterworks System.
8. All moneys paid as accrued interest on the bonds issued hereuinder shall be paid to
rer and by him placed in the Waterworks Revenue Bond Fund (hereinafter created), and
payment of interest payable on such bonds on the next interest payment date.
9. The Treasurer of the City shall be the custodian, of the revenues• derived from the
tem, and shall give bond for the faithful discharge of all duties as such custodian
such bond to be fixed and such bond to be approved by this -Council).
10. Waterworks Fund. A fund is hereby created and designated•Waterworks Fund, into
all be placed as received all revenues derived from the operation of the waterworks
revenues are hereby pledged and shall be applied to the payment of all bonds issued here
red hereby and the interest thereon, and to the operation and maintenance of the water-
nd•to providing an adequate depreciation fund, In the manner hereinafter provided,
SECTION 11. Waterworks Revenue Bond Fund, (1) There shall be paid by the City Treasurer from
the Waterworks Fund into a fund which is hereby created and designated Waterworks Revenue Bond Fund
the sums in the amounts and at the times hereinafter stated in subsection (2) for the purpose of
providing funds for the payment of the principal of and interest on the bonds as they mature according
to tole following schedule, and as a reserve for contingencies:
YEAR COUPdN BOND BOND INTEREST TOTAL
RATE PRINCIPAL June 1 December 1
1949 2� $ 18,nnn $ 11,895.00 $ 119895.nn # 41,791)'.nn
1950 21% 18,nnn 11,67none) 11,67n,nn 41,34n,nn
1951 2Yp 19,000 11,445.nn 111445.nn 41,89n,nn
1952 2 19,n� 11 2n 5 11 ,2n_L, 43:475.00
1953 21% 9-6 nnn 0,970,00 ln,97n,nn 41•,94p.nn
1954 2 21,nnn 1n,72n.nn In,720*on 42,44n.nn
1955 2 210non 1n0457.5n in,457,5n 41,915,nn
1956 2 22,nnn ln,195,nn ln,195,on 42939n,nn
1957 2 23,nnn 9,92n.nn 9,92n,nn 42,84n90n
1958 2�% 23,nnn 99632.5n 9,632,50 42,265.nn
1959 3 24,nnn 9,345,nn 9,345,nn 42,69n.nn
196n 324,nnn 80985.nn 8,985,nn 41,97n,.nn
1961 325,nnn 8,625,nn 80625,nn 42,25n,nn
1g3,% 26,ner 8,25nonn 8,25nann 4295nn,nn
1963 3261non 7286n,nn 7,86n,nn 41972n,nn
1964 3% 27,0 m 7,47n,nn 7,47n.nn 41,94n.nn
1965 3% 28,nrn 7,n65.nn 7,n65.nn 42,131.nn
1966 3% 29,nnn 6,645,nn 86,645,nn 42,291.nn
1967 3% 29,nnn. 6,21n,nn 6,21n,nn 41,42n,nn
1968 3% 3n,nnn 5,775one) 55775.nn 41,55n.nn
1969 3% 31,0 m. 5,325.nn 59325.nn 41,650.00
197n 3% 32,nrr 4,86n,nn 4,86n.nn 41,720,nn
1971 3% 33,nnn 4,380,n0 4,38n.nn 41,76n.nn
1972 3% 34,nnn :: .885 nn 3,885,nn 41977n,nn
1973 3% 350nnn 3,375,nn 3,375,nn 41,750,nn
1974 3,%36,nnn 2,85n,nn 2,85n.no 41,7nn.nn
1975 3,% 37,nno 2,31n.nn 2,3In,nn 41,62n.nn
1976 338,nnn 1,755.nn 1,7.55.nn 41,5ln.nn
1977 339,nnn 1,185 -.nn 1,185.nn 4107^.nn
1978 3,% 4n,nnn 6nn,nn .6nn,rnn 41,2nn,nn
(2) There shall be paid by the City Treasurer from the Waterworks Fund into the Waterworks
Revenue Bond Fund, in substantially equal monthly payments, beginning on the first business day of
the month after the delivery of the bonds and continuing on the first business day of each month
thereafter until all the bonds with interest issued under this ordinance have been paid in full, or
provision made for such payment, a sum equal to one-fifth (1/5) of the next installment of interest
andlone-tenth (1/10) of the next installment of principal of the bonds and the paving agent's fees;
provided, however, that when in any fiscal year no principal or interest of the bonds is in default
andithe amount in said Waterworks Revenue Bond Fund equals the total amount required for making all
principal and interest payments on the bonds during the succeeding twelve months, the amount so
payable eachlmonth into said Fund shall equal one-sixth (1/6) of the next installment of interest
andthe paying agent's fees, and one -twelfth (1/12) of the next installment of principal and the
paying agent's fees.
(3) The amount required to be paid in each month from the Waterworks fund into the Water-
works Revenue Bond Fund shall be paid before any of the revenues of the waterworks system received
in the preceding month shall be used for any other purpose. If the revenues of the waterworks system
in any month are insufficient to make the required payment on the first day of the following month
r208
int the Waterworks Revenue Bond Fund, then the amount of any deficiency in the payment made shall
be dded to the amount otherwise required to be paid into the Waterworks Revenue Bond Fund on the
first day of the next month. The amount by which payments in any fiscal .year exceed the aggregate
amount of interest and principal payable in the next succeeding fiscal year, shall be held in
said Waterworks Revenue Bond Fund as a reserve for contingencies and used solely as herein ;irovided;
probided, however, that when the moneys held in the Waterworks Revenue Bond Fund, ihcludinglthe
reserve.for contingencies, shall be and remain sufficient to pay the principal of and interest on
alllthe bonds then outstanding, the City Treasurer shall not be obliged to make any further payments
into the Waterworks Revenue Bond Fund, any sums then held as a reserve for contingencies shall
be used to the extent necessary in the payment of the interest on and the principal of the bonds,
butlsuch reserve shall be reimbursed from the Waterworks Fund before any of the moneys in salid
Waterworks Fund shall be used for any other purpose except for making the payments hereinabove
required to be made into the Waterworks Revenue Bond ]Fund. All moneys in the Waterworks Revenue Bond
Fund shall be used solely f or the purpose of paying the interest on and the principal -of the bonds
iss.ed under this ordinance, and.the paying agent's fees.
(4) If -a surplus shall existin the Waterworks Revenue Bond Fund over and above the amount
regyaired for making all principal and interest payments during the succeeding twelve months Ion account
of the bonds issued under this ordinance and then outstanding and.over and above the reserve for
contingencies, such surplus shall be applied by the Council only for the purpose of prior payment
of the bonds issued under this ordinance or for the construction of betterments and improvements to
thelWaterworks System.
SECTION 12. It shall be the duty of the City Treasurer to withdraw from the Waterworks
Revenue Bond Fund at least five days before the maturity date of any bond or interest coupon) issued
hereunder, and to deposit with The Commercial National Bank of Little Rock, Little4Rock, Arlt nsas, the
paying agent, an amount equal.to the amount of such bond or coupon for the sole purpose of paying
thelsame, together with the pa ying agent's fee of 12V for eachlOn par value of bonds andI25A for
each $le)n par value of coupons; and no withdrawal of funds from said Waterworks Revenue Bond Fund
shall be made for any other purpose except as otherwise authorized in this ordinance. Such deposit
shall be at the sole risk of the City and shall not operate as a payment of the bonds or coupons
until so applied.
SECTIUN.13. Waterworks System Depreciation Fund.. There shall be paid.by the City Treasurer
from the Waterworks Fund into a fund which is hereby created and designated Waterworks System Depre-
ciation Fund on the first business day of each month, after making the payments hereinabove required
to e made into the Waterworks Revenue Bond Fund, the sum of $50n until there shall have been
accumulated in the said Waterworks System Depreciation, Fund the sun of $42,nnO. Moneys in the Water-
works System Depreciation Fund shall be used solely, for the purpose of paying the cost of replacements
made necessary by the depreciation of the waterworks system; provided,however, that when any payments
are made from the Waterworks System Depreciation Fund, such funds shdll be reimbursed at the rate of
$5nm a month from the Waterworks Fund before any of the moneys in said Waterworks Fund shall be used
forlany other purpose except for making the payments hereinabove required to be made into thWater-
worls Revenue Bond Fund. I Is
Payments from the Waterworks System Depreciation Fund shall be made by check or voucher
signed by the Superintendent or Manager of the Waterworks System and by the City Treasurer alrd
drawn on the depository with which the moneys in said fund shall have been deposited. And e�ch
sucA.check or voucher shall briefly specify the purpose of the expenditure.
SECTION 14, Water System Operation and Maintenance Fund. There shall be paid by the City
Treasurer from the Waterworks Fund into a fund which is hereby created and des ignateT Waterworks
System Operation and Maintenance Fund on the first business day of each month while any of the bonds
issued under and secured by this ordinance shall be outstanding, the moneys remaining in the lWater-
works Fund after making the payments hereinabove required to be made to the Waterworks Reven)ae Bond
Fund and to the Waterworks -System Depreciation 'Fund. Moneys in the Waterworks System Operation and
Maintenance Fund shall be used solely for the purpose of pRying the cost -of operation and maintenance
of the Waterworks System.
Payments from the Waterworks System Operation and Maintenance Fund shall be made by check
or voucher signed by.the Superintendent or Manager of the Waterworks System and the City Treosurer,
and drawn on the depository with which the moneys -in said Fund shall have been deposited. And each
such check or voucher shall briefly specify the purpose of the expenditure.
If any surplus shall be accumulated in the Waterworks System Operation and Maintenance Fund
over.and above the amount which shall be necessary -to defray the cost of maintaining and operating
thelPlaterworks System during the remainder of the then current fiscal year and the next ensuing fiscal
,year,, such surplus or excess may be transferred by the Council and paid into the Waterworks Revenue
Bond Fund; provided, however, that shch transfer or payment into the Waterworks Revenue BondFund shall K
be in addition to all other payments hereinabove required to be made into said Waterworks Revenue Bond
Fund.
SECTION 15. All bonds paid, either at or -before maturity, shall be canceled when s)ach payment
Is Jade, together with all.unmatured coupons appertaining thereto, and held by the City Treasurer. All
um id interest coupons maturing on or prior to the date of such payment shall continue to b', payable
to the respective bearers thereof.
SECTION 16. The City# at its option, may•ca ll for redemption before maturity, in lawful
funds of the United States of Aimerica, in inverse numerical order, at par and accrued interest
any bond or bonds of this issue, at anyinterest paying date, only out of the unexpended proc,eeds from
the sale of the bonds of this issue or out of any surplus revenues derived Nfrom the operation of the
Waterworks System in the Waterworks Revenue Bond Fund in excess of the amouni,required to maintain
the said fund, and on and after December 1, 1953, from any available funds. Notice of the call for
the (redemption shall be published by the City Clerk once a week for two weeks before the date of such
redemption in a newspaper of general circulation published in the City of Little Hock, Arkanjas,
and having a general circulation throughout the State of Arkansas, and after the date mentioed in
said call, the bond or bonds so called will cease to bear interest; provided, funds for the yment
are on deposit at that tune .
SECTION 17. The bonds, together with interest thereon, shall be payable solely out of the
Wate works Revenue Bond Fund as hereinbefore defined and shall be a valid claim of the holders thereof
only against said Fund, and the amount of the revenues pledged to said Fund, which amount oflsaid revenue
is bareby pledged for the equal and ratable payment, of the bonds and shall be used for no other purpose
than to pay the principal of and interest on the bonds as the same accrue.
SECTION 18. All waterworks. revenues received by the City Treasurer shall be deposited by him
■'V
i
...
in such depositbry or depositories as may be lawfully
to the giving of security by such depository as now or
deposits made by the Treasurer shall be in the name of
the particular fund to which the revenues belmng.
SECTIO
the City of add
maturity dates
to finance or p
system; provide
bonds, the City
if. at the t ime
Arkans s of the
of thewaterwor
provements),.th
systeml less the
termined by a c
year in which s
average gnnual
additional reve
SEC
1949, and en
or any
works
col.lec
works
create
same i
the C i
norma 1
loss,
or rep
to be
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wa terw
recora
to the
time o
close
system
close
,year,
the nu
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by a c
Little
herein
Act No
to and
remain
of the
the bo
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upon t
may by
sa id A
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may ap
and co
paymen
this'c
20
designated from time to,time, subject, however,
as hereafter may be required by law. All 1
the City and be so designated as to indicater4r
19. Nothing herein shall be construed in such manner as preventing the issuance by
tional revenue bonds on a parity with the bonds hereinaauthorized to be issued but with
ubsequent to the maturity date of the last unpaid bonds herein authorized to be issued
y the cost of constructing any future betterments and improvements to the waterworks
however', that in order to insure the payment of the interest on and principal 6f the
shall issue such additional revenue bonds while any of the bonds remain outstanding onl
of the passage of an ordinance as provided in Section 2 of Act 1109 178 of the Acts of
,year 1943 (in which the Council of the City shall provide, find, and declare'the value
s system as then existing and the value of the then contemplated betterments and im-
net revenues (in this paragraph defined as the gross revenues of the waterworks
cost of depreciation and of operation and maintenance of the waterworks system as de-
rtified public accountant) in any two out of the three ,years immediately preceding the
ch additional revenue bonds may be issued equal one and six tenths (1.6) times the
rincipal and interest requirements of the bonds herein authorized to be issued and the
us bonds to be issued.
20.
The waterworks shall be
operated upon a fiscal year basis,
beginning
January 1,
on
December 31 in each year.
SECTION 21. It is covenanted and agreed by the City with the holder or h®lders of the bonds,
of themd.that it will faithfully and punctually perform all duties with reference to the water-
ystem required by the Constitution and Statutes of the State of Arkansas, including making and
ing of reasonable and sufficient rates lawfully established for services•• rendered by the water-
vstem, segregating the revenue of the system and its application to the respective funds herein
SECTION 22, The City will maintain the waterworks system in good condition and operate the
an efficient manner and at a reasonable cost. So long as any of the bonds are outstanding,
y agreeslto maintain fire, lightning and tornado insurance on the waterworks in an amount whach
y would be carried by a private company engaged in a similar type of business. In the event of
he proceeds of such insurance shall be applied solely towards..the reconstruction, replacement
irs of the waterworks system. In such event, the City will, with reasonable promptness, cause
ommencedland completed the reconstr_uction,replacement, or repairs. Nothing herein shall be
ed as regiiir,irig theeC•ity:;torexpend--ariyafunds for maintenance and operation of the waterworks
or for premiums on its insurance which are derived from sources other than the operation of the
rks system, but nothing herein shall be construed as preventing the City from doing so.
SECTION 23. So long as any of the bonds are outstanding, the City will not mortgage, pledge,
rwise encumber the waterworks system or any part thereof or any revenues therefrom, except
in proviied, and will not sell, lease, or otherwise dispose of any substantial portion of the
SECTION 24. The City will keep proper books of records and accounts (separate from all other
and accounts) in which complete and correct entries shall be made of any transactions relating
waterworks system.' The City will furnish to any holder or purchaser of any of the bonds at.the
tstanding at the written request of such holder or purchaser, not more than thirty days after th
f each six months' fiscal period, complete operating and income statements of the waterworks
in reasonable detail covering such six months' period, and not more than sixty days after the
f each fiscal ,year, complete financial statement of the waterworks system covering such fiscal
ertifiedlby a certified public.accountant. The said annual financial statement shall also recit
ber of wpter meter connections at the beginning and at the close of the period covered by the
nt. A 6bpy of the financial statement of the waterworks system for each fiscal year, so certifi
rtified public accountant, will be deposited with The Commercial National Bank of Little Rock,
Rock, Arkansas.
SECTION 25. There shall be a statutory mortgage lien upon the betterments and improvements
efore referred to, including the real property,on which they are situated, as provided in said
131, as�amended, which shall exist in favor of the holder of the bonds and each of them, and
in favor of the holder of the coupons attached to the bonds and the waterworks system shall
subject to such statutory mortgage lien until payment in full of the interest on and principal
bonds. !If there be any default in the payment of either the interest on or principal of any of
ds, and such default stall continue for thirty days thereafter, and if default shall be made in
and punctual performance of any of the other covenants and agreements contained in'the bonds
his ordinance, the holder or holders of any of the bonds may enforce the statutory mortgage lien
e waterworks system in accordance with the provisions of Section 7 of said Act. No. 131, and
proper suit compel the performance of the duties of the officials of the City, as set forth in
t. If there be default in the payment of the principal of or interest on the bonds, and such
shall continue for thirty days thereafter, any court having jurisdiction in any proper action
oint a receiver to administer the waterworks system on behalf of the City, with power to charge
lect rates sufficient to provide for the payment of.the bonds and interest thereon and for the
of the operating expenses and to apply the income and revenues in conformity with said Act and
dinance 'providing for the issuance of said bonds.
SECTION 26, After the bonds herein authorized to be issued have been executed by the Mayor
and City Clerk as herein provided, they shall be delivered by the Mayor to The Commercial National Bank
of Little Rock,ILittle Rock, Arkansas, which shall authenticate and deliver them to the purchasers, on
payment in cash of} 80n,nnn.and accrued interest to date of delivery. Contemporaneously with such
delivery and payment, the said bank shall apply the proceeds of the sale of the bonds as follows:
(1) 1t shall use sufficient of the proceeds to pay the principal of the said outstanding "Cit
of FayettevillelWater Improvement District Number One of the City of Payetteville, Washington, County,
Arkansas, Veterans Hospital Bonds" dated June 15, 1932, and numbered from I to 360 , inclusive,`and
accrued interest thereon to December 15, 1948, and shall see to it that ale of th�onds so paid and'al
interest coupons appertaining thereto maturing after June 15, 1948, are marked "Refunded and Canceled"
and forwarded tI the City Clerk to be held by him subject to the further orders of the Council.
(2) It shall use sufficient of the proceeds to pay the principal of the outstanding $lOn,nnn
City of Fayetteville Four Per Cent Waterworks Revenue Bonds, dated September ln, 1948s and accrued inte
to the ldate pryided in the notice of call therefor, and shall see to it that;all of the bonds so paid
are marked ti"rRefunded and Canceled and forwarded to the City Clerk to be held by him subject to the fur
orders of the Council.
(3) The amount paid for accrued interest and interest to six months after the estimated date
A
of OQmpletion of the construction which is December 1 , 19 490 shall be paid to the City Treasurer
for Ithe account of the City to be deposited by him in WaTerworks Revenue Bond Fund.
(4) After making the payments set out in.subsections (1),(2), and'(3), the remaind
proc ads shall be deposited in substantially equal amounts in McIlroy Bank and First Nations
bothrof Fayetteville, Arkansas, in trust, secured as their other trust funds are secured, an
by them solely in payment of the costs of the construction of the betterments and improvemen
waterworks system, including engineering, legal and other expenses incidental to the constru
issuance of the bonds, but only on warrants or vouchers signed by the Mayor and the City Tre
briefly specifying the disbursement or expenditure, accompanied by a certificate signed by t
sultng engineer of such construction that an obligation in a stated amount has been incurre
acco nt of the costs of construction, and to whom such obligation is, owed, except that no su
certificate shall be required for payment of the engineering, legal and other incidental exp
unexpended balance remaining after the final completion of the construction shall be paid to
Treapurer and deposited by him in the Waberworks Revenue Bond Fund hereinabove defined.
r of the
Bank,
deposited
s to the
tion and
surer
e con -
on
es. Any
e C ity
When the bonds are delivered�to the said The Commercial National Bank of Little Rock, Little
Rock, Arkansas, they shall be accompanied by a certified copy of this ordinance and the Mayor shall
take from the said bank its receipt and an agreement to deliver the bonds and apply the procIeds as
authprized in this Section 26. •--
SECTION 27. The Mayor is hereby directed to publish for one insertion in the Northwest
Arlin psas Times, which is hereby found and declared to be a n%wspaper published in Fayet ev e
an o genera circulation in the City of Fayetteville, Arkansas, this ordinance, o w c s
attaohed a notice signed by him in substantially the following form:
"NOTICE
Notice is hereby given that the City Council of the City of Fayetteville, Arkansas; has
adop ed the ordinance hereinafter -set out; and that said City contemplates the issuance of.b nds
described in said ordinance; that any person interested may appear before the Council on the 16
day of November, 1948s at 7:3n P .M., at the usual place of meeting at the City Hall, and
pres6 t protests. At such hearing al objections and suggestions will be heard•and the said Council
willltake such action as is deemed proper in the premises. ,
SECTION 3n, It is ascertained and declared that the lack of an adequate Waterworks System
for the City of Fayetteville, Arkansas, greatly endangers the life, health•and property of t e in-
habitants of the City of Fayetteville, Arlin nsas; that it is necessary that the City of Fayetteville,
Arkansas, immediately construct betterments and improvements to the waterworks system to protect
and preserve the life, health and property of its inhabitants. It is therefore declared tha an
emergency exists that this ordinance is necessary for the immediate preservation of the public peace,
health and safety, and that this ordinance shall take effect and be in force from and after its
passage.
om
APPROVED:
I �
ATTEST:
CoCity Clerk
Thhere being no further business, Alderman Whitfield moved to adjourn till 1:3n,P.M.,
Tuesday, Aovember 2, 1948, this motion was seconded by Alderman Hale and was passed unan=
imously by the Counsil, and the Mayor declared the Counoil adjourned till 1:3n P.M.,
Tuesday, November 21, 19459
Approved
. aye.
Attest
U4ty Grerico.
M 'I
Dated.this 29 day of October, 1948*
Zc�
Mayor o1* FEryettev e, Ar ansas
Attest:
Ifty am'�
y. rk •
SECTION 28. If any provision of this ordinance shall for any reason be held illegal
or
invalid,
it shall not affect the validity of the remainder of the ordinance.
SECTION 29. All ordinances or parts of ordinances in conflict herewith are hereby repealed.
SECTION 3n, It is ascertained and declared that the lack of an adequate Waterworks System
for the City of Fayetteville, Arkansas, greatly endangers the life, health•and property of t e in-
habitants of the City of Fayetteville, Arlin nsas; that it is necessary that the City of Fayetteville,
Arkansas, immediately construct betterments and improvements to the waterworks system to protect
and preserve the life, health and property of its inhabitants. It is therefore declared tha an
emergency exists that this ordinance is necessary for the immediate preservation of the public peace,
health and safety, and that this ordinance shall take effect and be in force from and after its
passage.
om
APPROVED:
I �
ATTEST:
CoCity Clerk
Thhere being no further business, Alderman Whitfield moved to adjourn till 1:3n,P.M.,
Tuesday, Aovember 2, 1948, this motion was seconded by Alderman Hale and was passed unan=
imously by the Counsil, and the Mayor declared the Counoil adjourned till 1:3n P.M.,
Tuesday, November 21, 19459
Approved
. aye.
Attest
U4ty Grerico.
M 'I