Loading...
HomeMy WebLinkAbout1958-04-18 Minutes,So / The City Council of Fayetteville, Arkansas, met in special session on Friday, April 18, 1958, at 7:30 P. Special Present: Mayor J. Austin Parish „ City Clerk George J. Davis, City Attorney A. D. McAllister Jr., City Session Engineer W. C. Smith, and Aldermen: Ralph Barnhart, Lynn Smith, Ellis Burgin, Bruce Lunsford, Webb Willi; Herbert Hatfield, Dale Kent, and Bryan Walker. Absent: None, The Mayor announced that the purpose of the meeting was to consider, to hold a public hearing, and take urposedof appropriate action on an ordinance fixing water and sewer rates, which ordinance had been heretofore int. tinge:.. duced and read in full the firsttime, nctice of a hearing thereon duly published as required by law, and the date for the hearing fixed for April 18, 1958, and to consider the adoption of a proposed bond ordi— nance; also to set a time for a hearing on the bond ordinance. Thereafter Alderman Lunsford, seconded by "lderman'Talker, moved that the ordinance entitled: Rate Ord. "AN ORDINANCE FIXING RATES FOR iiATER FURNISHED BY THE WATERWORKS SYSTEM OF THE CITY OF FAYETTEVIL on second ARKANSAS, AND RATES FOR SERVICES FURNISHED BY THE SEWER SYSTEM OF THE CITY OF FAYETTEVILLE) ARKA reading. SAS, AND PRESCRIBING OTHER MATTERS RELATING THERETO" be place on its second reading. Upon roll call the following vote was recorded: "Aye" Barnhart, Smith, Burgin, Lunsford, Williams, Hatfi Kent, and Walker. "Nay" None. There being ei0i "Ayes" and no "Nays", the Mayor declared the motion passed. The City Attorney then read the ordinance in its entirety for the second time. Public The Mayor then called upon anyone who desired to present objections or suggestions to the proposed water Hearing. and sewer rates. A full and open discussion of the proposed rate ordinance was had. WHEREAS, the City Council has determined that the System should be improved and extended and has had prepared by duly qualified consulting engineers preliminary reports and estimates of cost of the need extensions, betterments and improvements, which reports are on file with the City Clerk and to which reference may be made by any interested person, and which in general call for the following extensions, betterments and improvements: Construction of a dam or. the White River, a pumping station, a 20" or large pipe line from the dam, and additions to the filter plant; extensions, betterments and improvements to th water distribution system; and extensions, betterments,and improvements to the sewage collection system and the sewage treatment facilities (which will be hereinafter referred to as the "improvements"), all at an estimated cost of $4, 150,000, including engineering, legal and otheynecessary expenses incidental to the construction of the improvements and to the issuance of revenue bonds; and WHEREAS, the City does not have funds available to undertake and complete the improvements, but can obtain the same by the issuance of revenue bonds; and WHEREAS, in connection vrith the financing of the cost of the improvemee•nts, it will be necessary for the City lk0 refund the outstanding bonds of an issue of Sewer Revenue Bonds dated January 1, 1946, there being $73,COO in principal amount of said bonds outstanding, an issue of Water Revenue Bonds dated December 1, 1948, there being $646,000 in principal amount of said bonds outstanding, and an issue of VLA, Water Revenue Bonds dated December 1, 1952, there being $431,000 in principal amount of said bonds outstanding; and WHEREAS, as the initial step in said undertaking, it is necessary for the City to establish rates to be charged for the services of the System; NOW, THEREFORE, BE IT ORDAINED By the City Council of the City of Fayetteville, Arkansas: Section 1. That the -following monthly rates be, and they are hereby, fixed as rates to be charged for water furnished by the Waterworks System of the City of Fayetteville, Arkansas, whidh rates the Council finds and declares to be reasonable and necessary minimum rates to be charged: Following a brief recess, Alderman Smith, seconded by Alderman Lunsford, moved that the rule requiring the reading of an ordinance in full an three different days be suspended and that the ordinance be placed Rate Ord, on its third and final reading. passed and Upon roll call the following vote was recorded: "Aye" Barnhart, Smith, Burgin, Lunsford, Williams, given I Hatfield, Kent, and Walker. "Nay" None, There being eight "Ayes" and no "Nays", the Mayor declared the No. 11165 motion passed, and the rule suspended. The City Attorney then read the ordinance for the third and last time. The Mayor then declared the ordinance open for discussion. There being no further disscussion, the Mayor as�ed the question, "Shall the Ordinance pass"? Upon roll call the following vote was recorded, "Aye" Barnhart, Smith, Burgin, Lunsford, Williams, Hatfie Kent, and talker. "Nay" None. There being eight "Ayes" andnollNays", the Mayor dedlared the ordinance passed, The tlayor_then.signed_{"the y brdinance,whichywt's attested ti the_ City.!Clerk]andt,impressedc.with-'the seal of the City. The Ordinance, was given No. 1165, ORDINANCE NO. 1165 AN ORDINANCE FIXING RATES FOR WATER FURNISHED BY THE WATERWORKS SYSTEM CF THE CITv OF FAYETTEViLLE, ARKANSAS, AND RATES FOR SERVICES FURNISHED BY THE SvrTER SYSTEM OF' THE CITY OF FA=. ..EVILLE, ARKANSAS AND Rate Ordinance. PRESCRIBING OTHER MATTERS RELATING THERETO. No, 1165 WHEREAS, the Waterworks and Sewer Systems presently serving the City of Fayetteville, Arkansas (which are and are to be operated gas one systbm and which will be hereinafter referred to as the "System) are inadequate for the needs of the inhabitants of the City; and WHEREAS, the City Council has determined that the System should be improved and extended and has had prepared by duly qualified consulting engineers preliminary reports and estimates of cost of the need extensions, betterments and improvements, which reports are on file with the City Clerk and to which reference may be made by any interested person, and which in general call for the following extensions, betterments and improvements: Construction of a dam or. the White River, a pumping station, a 20" or large pipe line from the dam, and additions to the filter plant; extensions, betterments and improvements to th water distribution system; and extensions, betterments,and improvements to the sewage collection system and the sewage treatment facilities (which will be hereinafter referred to as the "improvements"), all at an estimated cost of $4, 150,000, including engineering, legal and otheynecessary expenses incidental to the construction of the improvements and to the issuance of revenue bonds; and WHEREAS, the City does not have funds available to undertake and complete the improvements, but can obtain the same by the issuance of revenue bonds; and WHEREAS, in connection vrith the financing of the cost of the improvemee•nts, it will be necessary for the City lk0 refund the outstanding bonds of an issue of Sewer Revenue Bonds dated January 1, 1946, there being $73,COO in principal amount of said bonds outstanding, an issue of Water Revenue Bonds dated December 1, 1948, there being $646,000 in principal amount of said bonds outstanding, and an issue of VLA, Water Revenue Bonds dated December 1, 1952, there being $431,000 in principal amount of said bonds outstanding; and WHEREAS, as the initial step in said undertaking, it is necessary for the City to establish rates to be charged for the services of the System; NOW, THEREFORE, BE IT ORDAINED By the City Council of the City of Fayetteville, Arkansas: Section 1. That the -following monthly rates be, and they are hereby, fixed as rates to be charged for water furnished by the Waterworks System of the City of Fayetteville, Arkansas, whidh rates the Council finds and declares to be reasonable and necessary minimum rates to be charged: W Monthly Treated Water Rates-.(ScheduleaA) The Water•usage of each customer shall he determined each month by meter measurement and the amount to be paid for water usage b.T each customer shall be computed on the basis of the following schedule of rates: For the first 1,000 gallons of water consumption per month or portion thereof For the next 29.,000 gallons. _ .r of water consumption per month For the next 270,000 gallons of water consumption per month For b�ke-aexi 300,000 gallons of water consumption per month $1.65 L0.75 per 1,000 gallons 0.55 per 1y000 gallons 0.25 per 1,000 gallons In addition to the above, each customer shall pay a monthly meter service charge in accordance with the following schedule: Monthly Meter3Service Charge (Schedule B) Inside City Outside City Limtso Limits 5/811 Meter $ None $ 1.00 3/4" Meter 0.75 1.75 1" Meter 1.50 2.50 1 1/4" Meter •2.25 3.25 1 1/2" Meter 3.00 4.00 2" ••' Meter 6.00 7.00 2 1/211. Meter 11.00 12.00 3" " Meter 14.00 151500 4" Meter 22.00 23.00 6"'•'Meter 45.`•00 46.00 8" Meter 70.00 71.00 10" Meter 95.00 96.00 The meter service charge shall be applied to both City and privately owned meters. The City shall operate and maintain all meters. All bills shall be computed by adding the applicable meter service charge to the amount determined to be due for water usage under the above set forth schedule. The monthly minimum charge shall be $1.65 plus the applicable meter service charge. Sales tax shall be added to the billlsoccomputed. Monthly Raw-*ater RateR (Schedule C) Raw watet may be sold from force mains when metered. The rates shall be 25¢ per 1,000 gallons or fraction thereof. The above set forth monthly meter service charges shall he applicable to raw water customers and all bills shall be computed by adding the applicable meter service charge to the amount determined to be due for raw water usage pursuant to the rate charged for raw water herein specified. The monthly minimum for raw water, including the applicable meter service charge, shall be $1.50. Monthly Stand -By Fire Protection Service Charge (Schedule D) Charges for unmetered service connections for stand-by fire protection shall be equal to the meter service charge applicable to the stand-by line size. Nonthky Fire Hydrant Charge (Schedule E) Charges for fire hydrants pressured by the City distribution system shall be $2.00 per month Section 2. (a) That inasmuch as the use of the sewer is directly related to the use of water by a partidular customer served by bothewater and sewer, it is hereby determined that rates for sewer services are more equitable and economical to the customer and the City when based upon the water consumption of a particular customer. • (b) That the following monthly rates he, and they are hereby, fixed as rates to be charged for sewer services, which rates the Council finds and hereby declares to bernaasonable and necessary minimum rates to be charged: All monthly sewer charges shall be based upon'water bills. All customers shall be classified .as ei (1) domestic or (2) commercial and industrial customers, depending upon whether the water consumption of the individual customer is used for domestic or commercial or industrial purposes. (1) In the case of domestic customers, the average monthly water consumption for the preceding m months of December, January,and February shall be computed seperately for each customer, and a uniform monthly charge for each customer shall be determined byyapplying the following schedule of rates to said average monthly water consumption. The sewer service charges for domestic customers shall be computed annually for a twelve (12) months' period beginning with the billing for the month of the year 1958 when the rates fixed hereby go into effect as hereinafter provided and beginning with the billing for the month of April of each year thereafter. In the case of a domestic user for which a uniform monthly char has been established who shall move to a new location the some uniform monthly charge shall apply at the nen ocation. In the case of New domestic users, the following schedule of rates shall be applied to monthly water usage until an average monthly water consumption has been established in the manner above specified. • • OM 303 (2) In the case of commercial and industrial customers, the monthly sewer charge shall be determined by applying the following schedule of rates to the monthly water usage of such customers; except that in the case of a commercial or industrial customer where an appreciable percentage of total water consumption is so used that it does not reach the sanitary sewer, then a determination shall be made by the Water and Sewer Superintendent of the percentage of total water consumption which does reach the ssn- itary sewer, and the following schedule of rates shall be applied to that percentage only. Schedule of Sewer Rates Class 1. All domestic and commercial and industrial customers which are now being served by t e existing sewer system or which, if connected,. will be served by the ex- isting sewer system, shall be billed 50% of the amount that would be paid by applic- ation of the monthly water rates heretofore set forth in Section 1 of this ordinance to the water consumption of each customer as above determined (it being understood that the monthly meter service charges and fire protection service charges shall not be app- licable). Class 2. All domestic and commercial and industrial cust®me,:s which will,be ser by°the extension to be oonstructe'd-to'the* existing' sewer"s1ystem shall be billed 100% - of th'e amount that would be paid by application of the monthly water rates heretofore set forth in Section 1 of this ordinance to the water consumption of each customer as above determined (it being understood that the monthly meter service charges and fire protection service charges shall not be applicable). 1. Seperate classes ave b on fx�d �lowin�^reaspn�,��the Con h found (after complete nves gaon an consi�ra ion o a r inenC us iiica ion for the classifications made: The customers and the predecessor property owners in Class 1 have theretofore paid the cost of construction of the existing sewer system, either by improvement district or otherwise, whereas the customers in Class 2 have contributed nothing to the cost of the existing system and in addition to receiving benefits from the use of the existing system will receive the maximum benefits from the proposed extensions to the system. In view of this, the Council has determined a higher charge should be mede to the customers to be served exclusively by the pro- posed extensions. Section 3. That meters shall be installed at each water connection and all bills for wa e� r services shall be rendered in the net amount due. Water bills are due and payable on or before the tenth day of the month immediately following the date of the last meter realing and/or services rendered. Water bills not paid on or before the due date shall be considered delinquent and an additional charge of 10% of the total bill shall be added, and if any bill is not paid within thirty dEys after the bill'shall be due, service shall be disconnected. Section 4. That all bills for sewer service shall be rendered monthly. Under the provisions of Ark. Stats. 19-4113, a lien is fixed upon the land .for any unpaid sewer charge, even though the use of the sewer system is by a tenant or lessee instead of the owner. Sewer bills are due and payable on or before the tenth day of the month immediately following the date of the last water meter reading and/or services rendered. Sewer bills not paid on or before the due date shall be considered delinquent and an additional charge of 10% of the total bill shall be added, and if any bill is not paid within thirty days after the bill shall be due, suit shall be brought to enforce the lien and collect the amount due together with the expenses of collection and a reason- able attorney's fee. Section 5. That in the event Waterworks and Sewer Revenue Bonds to refund the outstanding Sewer and outstanding Water Revenue Bonds of the City and to construct the improvements are issued, the City covenants and agrees that the rate -herein established shall never be reduced, while any Waterworks and Sewer Revenue Bonds are outstanding, unless there is obtained from an independent certified public accountant a certificate that the net revenue s -of the System for each of the two preceding fiscal years (net revenues being defined as gross .revenues less the reasonable expenses of oneration and maintanance of the System, including all expense items properly attributable to oper- ation and maintenance under generally accepted accounting practices applicable to muni- cipal waterworks and sewer systems) were equal to the amount required to be set aside for a depreciation fund by the.ordinance authorizing the issuance of "Naterworks and Sevier Revenue Bonds plus at least 150% of the maximum amount that will become due in any year for principal, interest and service charges on all Waterworks and Sewer Revenue Bonds then outstanding, together with a written opinion from said independent certified public accountant that the proposed new rates will produce sufficient net revenue, as above defined, to make the required deposit into the said depreciation fund and to leave a balance equal to at least 150% of the maximum amount that will become due in any ,year for principal, interest and service charges on all Waterworks and Sewer Revenue Bonds then outstanding. Section 6. That the provisions of this ordinance are separable and if a section, phrase or provision shall be declared invalid, such declaration shall not affect the validity of the remainder of the ordinance. Section 7. That all ordinances and resolutions and parts thereof in conflict rewith are hereby repealed to the extent of such conflict. Section 8. That the rates fixed by this ordinance shall go into effect on the first day of July, 1958 so that the first bills will be submitted and will be due and payable between August 1 and August 10, 1958. Passed: this 18th day of April , 1958. Approved 304 d Ord. cussed �1 J The Mayor then announced that attention should now be given to an ordinance authorizing the issuance of Waterworks and Sewer Revenue Bonds for the purpose of refunding certain outstanding Water Revenue Bonds and Sewer Revenue Bonds, and for financing the cost of constructing extensions, betterments and improvements to the Waterworks and Sewer Syster Alderman Lunsford moved that the proposed Waterworks and Sewer Revenue Bond Ordinance be placed on the first reading. The motion wasseconded by Alderman Burgin and passed unanimously. The City Attorney then read a proposed ordinance entitled, "AN ORDINANCE AUTHORIZING THE ISSUANCE OF WATERWORKS AND SEWER REVENUE:BONDS BY THE CITY OF FAYETTEVILLE,' ARKANSAS, FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING SERVER REVENUE BONDS AND ':NATER REVENUE BONDS AND FOR THE PURPOSE OF CONSTRUCTING EXTENSIONS, BETTERMENTS AND IMPROVEM,EAITS TO THE WATERWORKS AND SEWER SYSTEM; MAKING PLEDGES AND COVENANTS TO INSURE THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AAT EMERGENCY", Alderman Burgin moved that the rule requiring the reading of an ordinance in full on three differnet days be suspended and that the ordinance be placed on its second readi The motion was seconded by Alderman Smith and passed unanimously, whereupon the Mayor declared the motion passed and the rule suspended. The City Attorney then read the ordinance for its second time. Alderman Williams, seconded by Alderman Lunsford, moved that the rule requireing the reading of an ordinance in full on three differ.entdays be again suspended and that the ordinance be placed on its third and final reading. The Mayor put the question on the adoption of the motion and the following vote was recorded: "Aye" Barnhart, Smith, Burgin, Lunsford, Williams, Hatfield, Kent, and Walke: "Nay" None. The Mayor declared that at least two-thirds of all members elected to the Council havin voted in favor of the motion to suspend the rule, the motion was carried and the rule suspended. The City Attorney then read the ordinance for the third and last time. ThecMayor;thern declared the ordinance open for duscussion. After a brief discussion, the Mayor asked the question, "Shall the Ordinance pass"? Upon roll call the following vote was -recorded, "Aye" Barnhart, Smith, Burgin, Lunsford.; Williams, Hatfield, Kent, and Walker. "Nay" None. There being(e:ight "Ayest° and no "Nays"', the Mayor declared the Ordinance passed Alderman Williams moved that the emergency clause The motion wasseconded by Alderman Smith and upon recorded, "Aye" Barnhart, Smith, Burgin, Lunsford, Nay" None. There beino eight "Ayes" and no "Nays", the Mayor The Mayor signed the ordinance which was attested the seal of the City. The Ordinance was given No. be adopted . roll call the following vote was Williams, Hatfield, Kent, and Walker, declared the emergency clause adopted, by the City Clerk and impressed with 1166. J ORDINANCE N0. 1166 Bond rdinance AN ORDINA NCE AUTIiOi3IZING THE ISSUANCE OF WATERWORKS AND SEWER REVENUE or p BONDS BY THE CITY OF rFAYETTEVILLE, ARKANSAS FOR THE PURPOSE OF REFUNDING rd. No. CERTAIN OUTSTANDING SEWER REVENUE BONDS AND FOR THE PURPOSE OF CONSTRUCTING 116bEXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM; �1 MAKING PLEDGES AND COVENANTS TO INSURE THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS the Waterworks and Sewer Systems presently serving the City of Fayettevil Arkansas (udhich are and are to be operated as,one system and which will be hereipafter referred to as the "System") are inadequate for the needs of the inhabitants of the Ci and NVHEREAS the City Council has determined that the System should be improved and ex- tended and has had prepared by duly oualified consulting engineers preliminary reports and estimates of cost of the needed extensions, betterments and improvements, which re- ports are on file with the City Clerk and to which reference may be made by any inter- ested person, and which in general call for the following extensions, betterments and improvements: Construction of a dam on the White River, a pumping station, 20" or ],arger pipe line from d n ad i io o e fii1 e la • e tens'o b t e •ments and improvements Lo e e 3.o sewage ea me ities (which will be hereinafter referred to as the "improvements"), all at an estimate, cost of $4,150,000, including engineering, legal and other necessary espenses incidenta: to the construction of the improvements and to the issuance of revenue bonds; and WHEREAS the City does not have funds available to undertake and complete the imp- rovements, but can obtain the same by the issuance of revenue bonds; and WHEREAS in connection with the financing of the cost of the improvements, it will be necessary for the City to refund the outstanding bonds of an issue of Sewer Revenue Bonds dated January 1, 1946, there being $73,000 in principal amount of said bonds out- standing,an.issue of Water Revenue Bonds dated December 1, 19480 there being $646,000 in principal amount of said bonds outstanding, and an issue of Water Revenue Bonds dated December 1, 1952, there being $$431,000 in principal amount of said bonds outstand ing; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas: Section 1. That the necessary steps be taken to refund the outstanding bonds of the Sewer -nue Bond Issue dated January 10 1946, the outstanding bonds of the ?Nater Revenue Bond Issue dated December 1, 1948, and the outstanding bonds of the Water Revenue Bond Issue dated December 19 1952, and that the above described improve- ments to the System be constructed. Section 2. That the City.Counell hereby finds and declares that the period of useful ness of the System after the completion of the improvements will be more than forty (40) •years, erhich is longer than the term of the proposed revenue bonds. • ■ Ordinan i 11 • 305 No. Section 3. That under the authority of the Constitution and laws of the State of Arkansas, particularly Act NQ• 131 of the Acts of Arkansas of 1933, as amended, Act No. 132 of the Actsodf Arkansasodf 1933, and Act N4. 297 of the Acts of Arkansas of 1937, as amended, and the decision of the Supreme Court�of the State of Arkansas in the case of City of Harrison v. Braswell, 209 Ark. 1094, Waterworks and Sewer Refunding and C'onstrucTion7evenue Bonds of Ehe City of Fayetteville, Arkansas are hereby authorized and ordered sold in the total principal amount of $5,300,000, the proceeds of the sale of vhich are necessary to provide funds to refund the outstanding bonds of the City's Sewer Revenue Bond Issue dated January 1, 1946, the City's Water Revenue Bond Issue dated December 1, 1948, and the City's Water Revenue Bond Issue dated December 1, 1952, and to pay the cost of constructing the improvements, including engineering, legao and other necessary expenses incidental thereto and to the issuance of the bonds and includ ing a sum for interest during the construction period. The bonds shall be sold at public sale, shall be dated June 1, 1958, Ohall bear interest at such rate or rates as are fixed in the bid accepted at the sale, with the interest on that portion of the principal amount of said bonds issued for the purpose of refunding the outstanding January 1,'1946, December 1, 1948 and. December 1, 1952 bonds not to exceed the interest borne by said outstanding bonds., with the interest to be payable semi-annually on June 1 and December 1 of each year commencing December 1, 1958. The interest shall be evi- denced by interest coupons and the principal and interest shall be payable in lawful money of the United States of America upon presentation of the bond or proper coupon at the office of the Paying Agent designated by the purchaser. The bonds shall be ne- gotiable coupon bonds payable to bearer and shall mature on December 1 of each year as follows, but shall be callable for payment prior to maturity as hereinafter set forth: YEAR AMOUNT 1959 $ 80,000 1960 811000 1961 83,000 1962 862000 1963 89,000 1964 91,000 1965 94,000 1966_ 97,000 1967 1002000 1968 103,000 1969 107,000 1970 111,000 1971 115,000 1972 120,000 1973 126,000 1974 132,000 1975 1382000 1976 144,000 1977 151,000 1978 158,000 1979 1653000 1980 172,000 1981 1809000 1982 188,000 1983 197,000 1984 206,000 1985 216,000 1986 225,000 1987 2362000 1988 247,000 1989 258,000 1990 269,000 1991 2822000 1992 253,000 The Mayor shall prepare or cause to be prepared a notice of public sale of the bonds and shall publish the same in such newspaper or other publications in and out- side of the State of Arkansas as shall be determined by him to be in the best interest of the City. In addition to the usual provisions, the notice shall provide that the purchaser may name the Trustee and Paying Agent and that all expenses of the issue, including, but not limited to, the printing of the bonds, the Trustee's fee and the fee of Bond counsel, will be paid by the City's fiscal agent; that the purchaser shall have the privilege of converting the bonds to an issue bearing a lower rate or rates of interest, with the conversion to be in accordance with the Universal Bond Values Tables and upon such terms that the City receive no less and pay no more than it m uld receive andpay if the bonds were not converted, and upon such terms that the average rate of th converted bonds is not more than 3/4 of 1% less than the average ratio set forth in the cannot be shortened by more than reservesthe right to reject any bid of the purchaser, and that the average maturity 12 months; and the Mayor shall specify that the City and all bids. Section 4. That the terms of the sale of the bonds, the conversion thereof, if any, and the designation of the Trustee and Paying Agent shall be submitted to the City Council for approval. The bonds, so far as possible, shall be in the denomination of $1,000 each, shall be numbered consecutively beginning with No. 1 M d in its reso- lution.the City Council shall set forth a schedule reflecting the maturity of the bonds in numerical order on December 1 of each of the years 1959 to 1992, inclusive, wh ich schedule shall reflect the yearly principal maturities, the semi-annual interest requirements and the total requirements. Thereafter thebonds of the issue so approved shall be executed on behalf of the City by the Mayor and(.City Clerk and ch all have im- pressed thereon the seal of the City. Interest coupons attached to each of said bonds may have the facsimile signature of the Mayor lithographed"or printed thereon, which signature shall have the sane force and effect as if he had personally signed each of said coupons. The bonds, together with interest thereon, shall be payable solely out of the Waterworks and Sewer Revenue Bond Fund, as hereinafter set forth, and shall be a valid claim of the holders thereof only against such fund, and the amount of revenues pledged to such fund, which amount of said revenues is hereby pledged and mortgaged for the equal and ratable payment of the bonds of this Issue and shall be used for no other purpose than to pay the principal of and interest on said bonds and the Paying Agent's fees, except as hereinafter specifically provided. The bonds and interest x306 .1166 thereon shall not constitute an indebtednesscof the City wtthin any constitutional or nt, statutory limitation. Section 5. That the bonds and coupons shall be in substantially the following form and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: _ UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE f WATERWORKS AND SEINER REFUNDING AND CONSTRUCTION REVENUE BOND No. KNOW ALL MEN BY THESE PRESENTS: That the City of Fayetteville, County of Washington, and State of Arkansas, ack- nowledges itself to owe and for value 'received hereby promises to pay to bearer solely from the special fund provided as hereinafter set forth the principal sum of DOLLARS in lawful money of the United States of 7Ferica on the first day of December, 19 , and to pay solely from said special fund interest hereon at the rate of per cent ( %) per annum, from date, semi-annually on the first days of June and December, commencing December 1, 1958, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this revenue bond are made payable at This bond is one of a series of ( ) revenue bonds, aggregating TF— ), dated June 1, 1958, numbered from one 1 to —T—T inclusive, all of like tenor and effect, except as to number, denominat on, rate of interest and maturity, and are issued for the purpose of refunding the outstanding Sewer Revenue Bonds of an issue of the City dated January 1, 1946, Water Revenue Bonds of an issue of the City dated December 1, 1948, Water Revenue Bonds of an issue of the City dated December 11 1952, and for the purpose of providing for the payment of the cost of constructing extensions, betterments and improvements to the Watervo rks and Sewer Systems (which are and are to be operated as one system and which will be here- inafter referred to as the "System"), This bond and the series of vdzich it forms a part are issued pursuant to and in full compliance with the.Constitution and laws of the State of Arkansas, particularly Act.No. 131 of the Acts of Arkansas of 1933, as amended, Act No. 132 of the Acts of Arkansas of 1933, Act No. 297 of the Acts of Arkansas of 1937, as amended, and the de- cision of the Supreme Court of the .State of Arkansas in City of Harrison v. Braswell, 209 Ark. 1094, and pursuant to an ordinance of the City Council oi'7F`siT'y o aye teville Arkansas duly adopted and approved, and do not constitute an indebtedness of the City . of Fayetteville, Withineanys.con'stitutiornaltor statutory'limitati'on. -Said'bonds-''aremnot. general-'obligationsr.ofithe City of Fayetteville, but are special obligations payable solely from an amount of the revenues derived from the operation of the System, which amount has-been:duly,.setAide and:pledged as..A special fund�for that purpose and id- entified as the Waterworks and Sewer Revenue Bond Fund, created by Ordinance No. of the City of Fayetteville, Arkansas duly passed on the day of , 19580 under which this bond is authorized to be issued. The City of Fayettevi le as fixed and has covenanted and agreed to maintain rates for water and sewer services rich shall be sufficient at all times to provide for the proper and reasonable expenses of operat- ion and maintenance of the System, for the payment of the principal of and interest on the bonds as they mature, and the Paying Agent's fees, and to make adequate provision for the depreciation of the System. There is a statutory mortgage lien upon the Waterworks, which shall exist in favor of the holders of the bonds, and each of them, and in favor of the holdersof the coupon attached to the bonds, and the Waterworks shall remain subject to such statutory Mort- gage lien until payment in full of the interest on and principal of the bonds, provided however, that such statutory mortgage lien shall be interpreted according to the decis- ion of the Supreme Court of the State of Arkansas in City of Harrison v. Braswell, supr This bond is expressly made negotiable under the laws of the State of Arkansas andl is issued with the intent that the laws of the State of Arkansas shall govern the Const- ruction thereof. The bonds of this issue shall be callable for payment prior to maturity in inverse numerical order at par and accrued interest on an y interest paying paying date from the proceeds of the sale of the bonds not required for the completion of the improve- ments and from surplus.revenues derived from the operation of the System. After June 1, 1963, the bonds shall be callable for payment prior to maturity in inverse numerical order on any interest paying date with funds from any source at the principal amount_ of the bonds to be redeemed, together with accrued interest thereon to the date of re- demption, plus a premium of 22 7o if redeemed on or rior to June 1, 19642 2% if red- ,pey�nd tt}�§y�f 'N*, f% yfr' r u here, 1965, 12/ if redeemed thereafter and on or d � pr r rie 1, , a if re e Med hereafter and on or prior to June 1, 1968, and no premium if redeemed thereafter. Notice of the call for redemption shall be pub- lished once a week for two weeks before the date for such redemption in a newspaper published in the City of Little Rock, Arkansas and having a general circulation through- out the State of Arkansas, giving the number and maturity of each bond being called, the first publication to be at least fifteen (15) days prior to the redemption date, and after the date fixed for redemption, each bond so called shall cease to bear inter- est, provided funds for its payment are on deposit with the Paying Agent at that time. • This bond shall not be valid until it shall have been authenticated by the certi- ficate hereon duly signed by 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, have existed, have happened and have been performed in due time, form and manner, 307 as required by law; that the indebtedness represented by this.bond and the issue of • Ordina ce which it forms a part does not exceed any constitutional or statutory limitation; and No. 1166 that sufficient of the income and revenue which is deemed to be derived from the op - (Conti.) eration of the System has been pledged to and will be set aside :into said special fund for the payment of the principal of.and interest on said bonds. IN WITNESS WHEREOF, the City of Fayetteville, Arkansas, by its City Council, has caused this bond to be signed by the Mayor and City Clerk thereof and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be executed by the facsimile signature of said Mayor, all as of the first day of June, 1958. (/'City Clerk (SEAL) (Form of Coupon) No. June On the first'day of December, 19 , the City Arkansas, unless the bond to which this coupon is promises to pay to bearer, solely out of the funds coupon is attached CITY /OFF.. FAAYYETTTE//VILLE, ARKANSAS BY iF! / Y . O /mss_ _ , e7 a of Fayetteville, Washington County, attached is paid prior thereto, hereb specified in the bond to which this DOLLARS in lawful money of the United States of America at the office of , being six (6) months' interest then due on its Waterworks and Sewer Refunding and Construction Revenue Bond, dated June 1, 1958, and numbered CITY OF FAYET.TEVILLE, ARKANSAS Lan On each bond shall appear the following CERTIFICATE hereby certifies that this is one of a series of bonds described herein aggregating , numbered from 1 to , inclusive, all of like tenor and effect except as to number, denomination, rate of interest and maturity. By 1958 Section 6. (a) That the City has heretofore fixed rates to be charged for the ser- vices o77TTeFTystem by Ordinance No. 1165 passed and approved on the lath day of April, 1958, to which reference is hereby made �`or the said rates and other provisions of said ordinance pertaining thereto, which schedule of rates and provisions are hereby confirm ed and continued. (b) That in the event Waterworks and Sewer Revenue Bonds to refund the outstandin Sewer and outstanding Water Revenue Bonds of the City and to construct the improvements are issued, the City covenants and agrees that the rates establisheed by said Ordinance No. 1165 shall never be reduced, while any Watervo rks and Sewer Revenue Bonds are out- standing, unless there is obtained from an independent certified public accountant a certificate that the net revenues of the System for each of the two preceding fiscal years (net revenues being defined as gross revenues less the reasonable expenses of op- eration and maintenance of the System, including all expense items properly attribut- able to operation and maintenance under generally accepted accounting practices appli- cable to municipal waterworks and sewer systems) were equal to the amount required to be set aside for a depreciation fund by the ordinance authorizing the issuance of Water works and Sewer Revenue Bonds plus at least 150% of the maximum amount that will become due in any year for principal, interest and service charges on all Water vo rks and Sewe Revenue Bonds then outstanding, together vd th a written opinion from said indenendent certified public accountant that the proposed new rates will produce sufficient net revenue, as above defined, to make the required deposit into the said depreciation fund and to leave a balance equal to at least 150% of the maximum amount that will become due in any year for principal, interest and service charges on all Waterworks and Sewer Revenue Bonds then outstanding, And, the City covenants and agrees that said rates she when necessary, from time to time be increased in an amount sufficient to provide total revenues for the hereinabove set forth requirements and to maintain all funds provided for herein. Section 7. That none of the facilities or services afforded by the System shall b • furnisT7e'T w'=out a charge being made therefor. In the event that the City or and dep- artment, atrency or instrumentality thereof shall avail itself of the facilities and ser vices afforded by the System, the reasonable value of the services or facilities so U 3.08 - Mrd. afforded shall be charged against the City or such department, agency or instrumentalit' :). 1166 and shall be paid for as the charges therefor accrue. The revenue so received shall be � (Cont.) deemed to be revenue derived from the operation of the System and shall be used and Seel • ounted for in the same manner as any other revenue derived from the operation of the sa'd System, provided, however, that nothing herein shall be construed as requiring the City or any department, agency or instrumentality thereof to avail itself of the facilities or services afforded by the System. Section S. That the City Treasurer shall be custodian of the gross revenues der- eved from the operation of the System and shall give bond for the faithful discharge of his duties as such custodian. The amount of the bond shall be $25,000.00 and shall be approved by the Trustee. From and after the delivery of any bonds issued under the pro visions of this ordinance the System shall be continuously operated as a revenue prod- ucing undertaking. All moneys received by the Treasurer shall be deposited by him in such depository or depositories for the City as may be lawfully designated from time to time by the City Council, subiect, however, to the giving of security as now or as here after may be required by law, and provided that such depository or depositories shall hold membership in the Federal Deposit Insurance Corporation. All deposits shall be in the name of the City and shall be so designated as to indicate the particular fund to which the revenues belong. Any deposit in excess of the amount secured by.the Federal Deposit Insurance Corporation shall be secured by bond .or other direct or fully guarant eed obligations of the United States. Section 9. Waterworks and Sewer Fund. All revenues derived from the operation of the System,nclud ng the herein authorized extensions, betterments and improvements after their completion, shall be paid into a special fund, which is hereby created and designated "Waterworks and Sewer Fund". Such revenues so deposited in the Waterworks and Sewer Fund are hereby pledged and shall be applied to the payment of the reasonable and necessary expenses of operation and maintenance.of the System, to the payment of th principal of and interest on the bonds of this issue, and to the providing of an adequa depreciation fund, and such other funds as are hereinafter set forth. Section 10. Waterworks and Sewer Operation and Maintenance Fund. There shall be paid by the Treasurer from the !`aterworks and Sewer Fund into a fund which is hereby created and designated "i'Psterworks and Sewer Operation and Maintenance Fund", beginning on the first business day of the month immediately following the month„in which the bon are delivered and continuing on the first business day of each month thereafter'while any of the bonds of this issue shall be outstanding, an amount sufficient to pay the reasonable and necessary monthly expenses of operation, repair and maintenance of the System for such month and from which disbursements shall be made only for those purpose Fixed annual charges such as insurance premiums and the cost of major repair and main- tenance expenses may be computed and set up on an annual basis and one -twelfth (1/12) of the amount thereof may be paid into the Waterworks and Sewer Operation and Mainten- ance Fund each month. If in any month for any reason there shall be a failure to transfer and pay the required amount into said fund, the amount of any deficiency shall be added to the am- ount otherwise required to be transferred and paid into .said fund in the next succeeding month. If in any fiscal year a surplus shall be accumulated in the Waterworks and Sawa Operation and Maintenance Fund over and above the amount which shall be necessary to defray the reasonable and necessary cost of operation, repair and maintenance of the System during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred and deposited in the Watervo rks and Sewer Revenue Bond Fund (hereinafter created) or to the Waterworks and Sewer Depreciation Fund (hereinafter created) as the City may designate; provided, however, that any such tran- sfer into the Waterworks and Sewer Revenue Bond Fund shall be in addition to all other payments required to be made into said fund. Section 11. Waterworks and Sewer Revenue Bond Fund. (a) After ma ing he monthly deposit in the Waterworks and Sewer Operation and Maintenance Fund, the Treasurer shall transfer and pay from the Waterworks and Sewer Fund into a special fund, which is hereby created and designated "Waterworks and Sever Revenue Bond Fund” the sums in the amounts and at the times hereinafter stated in sub- section (b) for the purpose of providing funds for the payment of the principal of and interest on the bonds herein authorized and the Paying Agent's fees, as they mature acc- ording to a schedule to be set up and approved by the City Council after the terms of the sale of the bonds and the convers on thereof, i.# any, have been approved by the City Council, and as a reserve for Conti"gencies. (b) That there shall be paid by the Treasurer from the Waterworks and Sewer Fund into the Waterworks and Sewer Revenue Bond Fund, beginning on the first business day of the month immediately following the month in which the bonds are delivered, and contin- uing on the first business day of each month thereafter until all outstanding bonds of this issue with interest thereon 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 and one- tenth (1/10) of the next installment of principal, and an amount sufficient to pro- vide for the Paying Agent's fees, on all othstanding bonds; provided, however, that when there shall have been accumulated in said Waterworks and -Sewer Revenue Bond Fund a reserve for contingencies in the amount of $300,000, so long as said reserve for contin� gencies is maintaincd'in that amount the monthly payments maybe reduced to one-sixth (1/6) of the next installment of interest and one -twelfth (1/12) of the next installment of principal, and an amount sufficient to provide for the Paying Agent's fees, on all outstanding bonds. (c) If the revenues of the Waterworks and Sewer System are insufficient to make the required payment on the first business day of the following month into the Waterwor and Sewer Revenue Bond Fund, then the amount of any such deficiency in the payment made shall be added to the amount otherwise required to be paid into the Waterworks and Sewe Revenue Bond Fund on the first business day of the next month. (d) If for any reason the Treasurer shall fail at any time to make any of the re- quired payments into the Waterworks and Sewer Revenue Bond Fund, any sums then held as' • a reserve for contingencies shall be used to the extent necessary in the payment of the principal of and interest on the bonds, but such reserve shall be reimbursed from the Waterworks and Sewer Fund before any of the moneys in the Waterworks and Sewer Fund shall be used for any other purpose except for making the payments hereinabove required to bel made into the Waterworks and Sewer Operation and Maintenance Fund and into the Waterworks and Sewer Revenue Bond Fund. Said reserve for contingencies shall be used solely as herein provided. 309' ordinance No. 1166 (e) When the moneys held in the Watervo rks and Sewer Revenue Bond Fund, including (Conti.) the reserve for contingencies, shall be and remain sufficient to pay the principal of • and interest on all the bonds then outstanding, and the Paying Agents fees, the Treasurer shall not be obliged to make any further payments into the said Waterworks and Sewer Revenue Bond Fund. (f) All moneys in the Waterworks and Sewer Revenue Bond Fund shall be used solely for the purpose of paying the principal of and interest on the bonds of this issue and the Paying Agents fees, except as herein specifically provided. If a surplus shall exist in the Waterworks and Sewer Revenue Bond Fund over and above the amount required for making all principal and interest payments durin[r the succeeding twelve (12) months on all outstanding bonds and the Paying Agent's fees:and over and above the reserve for contingencies, such surplus may be applied only to the payment of the principal of and interest on any bonds that may be called for redemption prior to maturity or for the construction of extensions, betterments and improvements to the System. (g) It shall be the duty if the Treasurer to withdraw from the Watervo rks and Sewer Revenue Bond Fund at least ten (10) days before the maturity date of any bond or interest coupon issued hereunder and to deposit with the Paying Agent an amount equal to the amount of such bond or coupon for the sole purpose of paying the same, together with the Paving Agents fee, and no withdrawal of funds from said Waterworks and Sewer 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 oper- ate as a payment of the bonds or coupons until so applied. (h) The bonds of this issue shall be specifically secured by a pledge of all the revenues required to be placed into the Watervo rks and Sewer Revenue Bond Fund. Said pledge in favor of the bonds is hereby irrevocably made according to the terms of this ordinance, and the City and its officers and employees shall execute, perform and carry out the terms thereof in strict conformity with the provisions of this ordinance. Section 12. Waterwo rks and Sewer Depreciation Fund. After making the required payments into the Waterworks and Sewer Operation and Maintenance Fund and the Waterworks and Sewer Revenue Bond Fund, there shall be paid by the Treasurer from. the 'Natervorks and Sewer Fund into a fund, which is hereby created and designated "Watervo rks and Sewer Depreciation Fund", on the first business day of the month immediately following the month in vhiich the bonds are delivered and continuing on the first business day of each month thereafter while any of the bonds of this issue are outstanding, 30 of the revenues of the Waterworks and Sewer System ivrich remain after the required payment into the Waterworks and Sewer Operation and Maintenance Fund has been made. The moneys in the Waterworks and Sewer Depreciation Fund shall be used solely for the purpose of payir the cost of replacements made necessary by the depreciation of the Waterworks and Sewer System. If In any fiscal year a surplus shall be accumulated in the Waterworks and Sevier Depreciation Fund over and above the amount necessary to defray the cost of the probab replacements during the then current fiscal year, and the next ensuing fiscal year, su surplus may be transferred and paid into the Waterworks and Sewer Revenue Bond Fund; provided however, that such payments into the Waterworks and Sevier Revenue Bond Fund shall be in addition to all other payments hereinbefore required to be made into the said Waterworks and Sewer Revenue Bond Fund, Section 13. That any surplus in the Watervo rks and Sewer Fund after making full proviioTsn for the other funds herein provided shall be used as follows: (a) There shall be paid from the Waterworks and Sewer Fund into a special account which is hereby created and designated "Waterworks and Sewer Emergency Account", beginn- ing on the first• business day of'Nthe month immediately following -the month in which the bonds are delivered and continuing on the first business day of each -month thereafter , the sum of $1,250.00, which deposits shall continue until the principal amount in the said Emergency Account shall equal $15O,00O.00. If in any month for any reason there shall be a failure to transfer.and pay the required amount into said Emergency Account, the amount of the deficiency shall be added to the amount otherwise required to be .transferred and paid into said Emergency Account in the next succeeding month. Moneys in the Emergency Account shall be used to the extent necessary to meet any emergency arising out of or affecting the continuous operation of the System as a revenue producii undertaking for which there are no other funds available or for the preventing of a de- fault in the payment of principal and interest or performing any covenant of the City herein contained for which there are no other funds available. However, in the event of any such use, the said Emergency Account shall be reimbursed from the Watervo rks and Sewer Fund from the first moneys therein available therefor. The said Emergency Account shall be maintained in at'least the amount of 41150,000.00 while any bonds of this issue .are outstanding. Any surplus in excess of the 0150,000.O0 may be transferred to the Waterworks and Sewer Revenue Bond Fund,.but any such transfer shall be in addition to all other payments required to be made into said Waterworks and Sewer Revenue Bond Fund, (b) After complying fully with the provisions of sub -paragraph (a) of this Sectiol 13, the remaining revenues may only be used, at the option of the City," -'or calling bon( for payment prior to maturity in accordance with the provisions herein set forth for ca: and payment prior to maturity or for making extensions, betterments and improvements to the System. , Section 14. That payments from all funds except the Waterworks and Sewer Operaltioi and MaintY enance Fund shall be made by check or ry'oucher signed ty the Treasurer and the Mayor, and xa yments from the Waterworks and Sewer Operation and Maintenance Fund shall be made by check or voucher signed ty the Treasurer and the Waterworks and Sewer Superintendent. The checks or vouchers shall be drawn on the depository with which the moneys in the particular fund shall have been deposited and each such check or voucher shall briefly specify the purpose of the expenditure. • Section 15. That the City hereby agreesithat all payments on the bonds and intere; shall be made only through the Paying Agent. All bonds paid or purchased either at or before maturity shall be cancelled when such payment or purchase is made, together with 310 1166 t.) all unmatured coupons appertaining thereto, and held by the Treasurer and shall not be reissued.. All unpaid interest coupons maturing'on or prior to the date of such payment or purchase shall continue to be payable to the respective bearers thereof. Section 16. That the 'System shall be operated on a fiscal year basis beginning the first day of January and ending the thirty-first day of December. Section 17. That the bonds authorized hereby and issued hereunder shall be call- able for payment prior to.maturity in accordance with the terms set out in the bond form. Section 18. That as long as any of the bonds authorized hereby are outstanding, the C ty�l not issue or attempt to issue any bonds claimed to be entitled to a priority of lien on the revenues of the System over the lien securing the bonds of this issue, including the herein authorized and any and all future extensions, betterments and improvements. Nothing in this ordinance shall be construed to prevent the issuance by the.City of Fayetteville of additional bonds to finance or pay the cost of constructing any futu3 extensions, betterments or improvements to the System; provided, however, the City shall not authorize or issue any such additional bonds ranking on a parity vi th the outstand- ing bonds of this issue, unless and until there shall have been procured and filed with the Trustee a statement by an independent certified public accountant not in the regular employ of the City reciting the opinion based upon necessary investigation that net revenues (in this paragraph defined as the gross revenues of the System less the require depreciation tables and the operation and maintenance expenses as determined by the independent certified public accountant) in any two of the three fiscal years immediate] preceding the fiscal year in which it is proposed to issue such additional bonds shall equal 150% of the maximum amount that will become due in any year thereafter for princ- ipal, interest and service charges on the bonds then outstanding and the bonds then pro- posed to be issued. Section 19. That it is covenanted and agreed by the City with the holder or hold- ers of the bonds, or any'of them, that it will faithfully, and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Arkansas, including making and collecting of reasonable and sufficient rates lawfull: established for services rendered by the System, segregating the revenues of the System and applying them to the respective funds herein created. 0 y P�Section 20. That the City will keep proper books of accounts and records (separate from all other records and accounts) in which complete and correct entries shall be mad, of all transactions relating to the operation of the System, and such books shall be available for inspection by the holder of any of the bonds at reasonable times and under reasonable circumstances. The City agrees to have these records audited by an indepen- dent certified publ!6 accountant at least once each year, and a copy of the audit shall be delivered to the Trustee and to the original purchaser of the bonds and made avail- able to interested bondholders. In the event the City fails or refuses to make the audit, the Trustee, or any holder of the bonds may have the audit made, and the cost thereof shall be charged against the Waterworks and Sewer Operation and Maintenance Fund. Section 21. That the City covenants and agrees that it will maintain the System in good condition and operate the same in an efficient manner and at reasonable cost. While any Revenue Bonds are outstanding, the City agrees that it will insure and at all times keep insured, in the amount,of the actual value thereof, in a responsible insuranc company or companies authorized and qualified under the laws of the State of Arkansas to assume the risk thereof, all properties of the System against loss or damage thereto from fire, lightning, tornado, winds, riot, strike, civil commotion, 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. The insurance policies are to be taken with companiesapproved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, and are either to be placed in the custody of the Trustee or satisfactory evidence of said insurance shall be filed with the Trustee. In the 'event of loss, the proceeds of such insurance shall be applied sole ly toward the reconstruction, replacement or repair of the System, and in such event the City will, with reasonable promptness, cause to be commenced and completed the re- construction, 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 Water- works and Sewer Fund and if such proceeds shall be insufficient for such purposes the deficiency shall be supplied, first, from moneys in the Waterworks and Sewer Depreciatic Fund, and second, frcm moneys in the Waterworks and Sewer Operation and Maintenance Func and third, from available moneys in the Watervo rks and Sewer Fund, and fourth, from moneys in the Waterworks and Sewer Emergency Account. Nothing herein shall be constru- ,,£ed as requiring the City to expend any funds for operation and maintenance of the System or for premiums on its insurance which are derived from sources other than the operation of the System, but nothing heroin shall be construed as preventing the City from doing so. Section 22. That so long as any of the bonds are outstanding, the City covenants and agrees that it will not mortgage, pledge, or otherwise encumber the System or any part thereof, including any and all betterments and improvements thereto or any revenue; therefrom, except as herein provided, and will not sell, lease, or otherwise dispose of any substantial portion of the same. To the end that a record of the pledge of the revenues and of the agreement not to mortgage the System may be preserved, the City Cle: is hereby authorized and directed to file with the Recorder of Washington County, Arkansas -a copy of this ordinance duly certified, with instructions that the same be recorded in the office of said County Recorder as in the case of deeds and mortgages. Section 23. That the owner or owners of all improved prooerty lying within the area that will be served by the Sewer System, after the proposed improvements and ex- tensions have been made, are hereby directed and required to connect all toilet and waste v✓ater facilities of such improved property with said Sewer System as soon -,as t'he!"i6r.vice.Ss available; and the owners of property that is improved after the com- pletion of the improvements and extensions to the said Sewer System shall immediately connect the toilet and waste water facilities of such property with the Sewer System, Section 24. That the City shall send or cause to be sent .a written notice to any ownerofd proved property that can be served by the Sewer System but is not connected to make such connection within thirty (30) days from the date of said notice. If, E z x • • t P •Ord. No, 1Tg6 (Continued) 311: after said notice, the property owner fails to make such connection the City agrees to institute appropriate action in court of competent jurisdiction to compel such connect- ion. Furthermore, any property owner who fails or refuses to connect his improved prop• erty with the Sewer System after being notified to do so shall be guilty of a misdemeanc and upon conviction shall be fined in any sum not less than Two Dollars (22.00) and not more than Ten Dollars ($10.00), .and each day's failure or refusal,_after the expiration of the time fixed in the notice to make the connection 'shall be a separate offense; provided; however, that the provisions of this sentence shall be effective to make such failure a misdemeanor only in the event the City Health Officer, or other duly desig- nated.individual or board, hal found and determined that such failure on the nart of any particular property owner constitutes a hazard to the public health and safety of the inhabitants of the City. Section 25. That there shall be a statutory mortgage lien upon.the Waterworks, whichsha1 exist in favor of the holders of the bonds, and each of them, and in favor of the holders of the coupons attached to the bonds, and the Waterworks shall remain subject to such statutory mortgage.lien until payment in full of the interest on and principal.of the bonds, provided, however, that such statutory mortgage lien shall be interpreted according to the decision of the Supreme Court of the State of Arkansas in City of Harrison v.'Braswell, supra. Section 26. (a)• That the City covenants and agrees that the holders of the Waterwor s and Sewer Revenue Bonds shall have the protection of the provisions of Sec- tion 13 of Act 132 of the Acts of Arkansas of 1933 (Ark. Stats. 19-4113), and that the City will diligently proceed to enforce the lien of unpaid sewer charges against the premises.served by the System and to collect the amount due together with the penalty and expenses authorized by said Act 132. And, if the City shall fail to.proceed within thirty (30) days after written request shall have been filed by the Trustee, the Trustee may, and upon the written request of the holders of not less than ten per cent (10 iri principal amount of the Waterworks and Sewer Revenue Bonds then outstanding shall, proceed to enforce said lien in accordance with and pursuant to the authorization of said Act 132. (b) That if there bf any default in the payment of the principal of or interest on any Waterworks and Sewer Revenue Bond, or if the City defaults in any Waterworks and Sewer Revenue Bond Fund requirement or in the performance of any of the other covenants contained and set forth in this ordinance, the Trustee may, and upon the written request of the holders of not less than ten per cent (10%) in principal amount of Waterworks and Sewer Revenue Bonds then outstanding shall, by proper.suit compel the performance of the duties of the officials of the City as set forth in Act 131 of the Acts of Arkansas of 1933, as amended, Act 132 of the Acts of Arkansas of 1933 and Act 297 of the Acts of Arkansas.of 1937, as amended. And, in the case of aidefault in the payment of the principal of and interest on any of the outstanding Waterworks and Sewer Revenue Bonds, or if the City fails to complete any other obligation which it herein assumes, and such default shall continue for thirty (30) days thereafter, the Trustee may, and upon the written request of holders of not less than ten per cent (10%) in principal amount of the Waterworks and. Sewer Revenue Bonds then outstanding shall, apply in a 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 bondholders with power to charge and collect (or by mandatory injunction or otherwise to cause to be charged and collecte rates sufficient to provide for the payment of the expenses of operation, repair and maintenance and to pay any bonds and interest outstanding and to apply the revenue in conformity with the provisions of said Act 131 of 1933, as amended, Act 132 of 1933, an( Act 297. of 1937, as amended,.and with this ordinance: When all defaults in principal and interest payments have been cured, the custody and operation.of the System shall revert to the City. (c) No holder of any of the outstanding Waterworks and Sewer Revenue Bonds shall have any right to institute.any suit, action, mandamus or other proceeding in equity or in law for the protection or enforcement of any right under this ordinance or under sail Act 131 of 1933, as amended, Act 132 of 1933, and Act 297 of 1937, as amended, unless such holder previously shall have given to the Trustee written notice of the default on account of which such suit, action or proceeding is to be taken, and unless the holders of not less than ten per cent (10%) in principal amount of the Waterworks and Sewer Revenue Bonds then outstanding shall have made written request of the Trustee after the right to exercise such powers or right of action, as the case may be, shall have accrues and shall have afforded the Trustee a reasonable opportunity either to proceed to exer- cise the powers herein granted or granted by said Act 131 of 1933, as amended, Act 132 of 1933, and Act,297 of 1937, as amended, or by the laws of the State of Arkansas, or to institute such action, suit or proceeding in its name, and unless, also, there shall have been offered to the Trustee reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby and the Trustee shall have refused or neglected to comply with such request within a reasonable time, and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers ans trusts of this ordinance or to any other remedy hereunder. It is understood and intende that no one or more holders of the bonds hereby secured shall have any right in any manner whatever by his 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 holders of the outstanding bonds and coupons, and that any individual rights of action or other right given to one or more of such holders by law are restricted by this ordinance to the rights and remedies here- in provided. ' (d) That all rights of action under this ordinance or under any of the bonds sec- ured hereby, enforcible by the Trustee, may be enforced by it without the possession of any of the bonds or coupons appertaining thereto, and any such suit, action or proceedi instituted by the Trustee shall be brought in its name for the benefit of all the holde of such bonds and coupons, subject 'to the provisions of this ordinance. • (e) That no remedy conferred upon or reserved to the Trustee. or to the holders of the bonds is intended to be exclusive of any other remedy or remedies, and each and eve. such remedy shall be cumulative and shall be in addition to every other remedy given hereunder. 1312 (g) That the Trustee may, and upon the written request of the holders of not less than ten per cent (10%) in principal amount of Waterworks and Sewer Revenue Bonds then outstanding shall, waive any default which shall have been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted under the pro- visions of thus ordinance or before the completion of the enforcement of any other rem- edy, 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 27. That the Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execution of its trust, The recitals in this or- dinance and in the face of the bonds are the recitals of the City and not of the Trustee The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders of not less than ten per cent (10%) in principal amount of the Waterworks and Sewer Revenue Bonds then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10) days' notice in writing to the City and the majority in value of the holders of the outstanding Waterworks and Sewer Revenue Bonds,at any time, with or without cause may remove the Trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in value of the holders of the outstanding Waterworks and Sewer Revenue Bonds may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. If the maj- ority in value of the holders of the outstanding Watervo rks and Sewer Revenue Bonds shall fail to fill a vacancy within thirty (30) days after the'same shall occur, then th City shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. The original Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trust imposed upon it or them by this ordinance, but only upon the terms and conditions set forth in this ordinance and subject to the. provisions of this ordinance, to all of which the respective holders of the bonds agree, Such written acceptance shall be filed with the City Clerk and a copy thereof shall be placed in the bond transcript. Any successor Trustee shall have all the powers herein granted to the original Trustee. Section 28. That when the bonds herein authorized to be issued have been executed by the Mayor and City Clerk and the seal of the City impressed, as herein provided, the' shall be delivered to the Trustee, which shall authenticate them and deliver them to th purchaser upon delivery to the Trustee of the outstanding bonds of the January 1, 1946 issue, the December 1, 1948 issue and the December 1, 1952 issue with all unmatured cou• pons attached thereto, or' the making of an escrow deposit with the Trustee sufficient t( pay the principal and interest and all other charges necessary to fully pay and discharl said outstanding bonds with 'interest at the next interest paying date and said outstand� ing bonds are duly called for payment prior to maturity at their said next interest pay: date, and the payment of the balance of the purchase price and accrued interest from June 1, 1958. A sum suffici.enttopay the first six (6) months' interest shall be remitted to the Treasurer for deposit in the Waterworks and. Sewer Revenue Bond Fund and the balance shall be remitted to the Treasurer and deposited in trust with a bank that is a member of the Federal' Deposit Insurance Corporation, said deposit to be secured by bonds or other direct or fully guaranteed obligations of the United States of America, or by a corporate surety bond satisfactory to the Trustee, and said deposit shall be disbursed solely in payment of the cost of constructing the extensions, betterments and improve- ments of the System, including engineering, legal and other necessary expenses incident thereto, but only on warrants, checks or vouchers -signed by the Treasurer and one other person designated by the City briefly specifying the nature of the disbursement or ex- penditure, and -accompanied by a certificate signed by the engineer for such constructio that an obligation in a stated amount has been incurred and to whom such obligation is owed, except that no such certificate shall be required before payment of engineering fees, legal fees and the expenses of issuing the bonds. When the construction of the herein authorized extensions, betterments and improve- ments to the System -has been completed, this fact shall be evidenced by the filing with the Trustee and with the depository in which the construction fund is deposited of a cer ti£icate signed by the City Treasurer and by the engineer in charge of the construction. Upon receipt bf the above described certificate, the depository with which the construct ion fund is denosited shall pay or transfer any remaining balance pursuant to the writte direction or check signed by the Treasurer and the one other person designated by the City for signing checks on the construction fund, and any euch remaining balance may be used for the calling of the bonds of this issue for payment prior to maturity or may be transferred to the Waterworks and Sewer Revenue Bond Fund. Section 29. (a) That moneys held for the credit of the Construction Fund shall, as nearly as may be practicable, be continuously invested and reinvested by the City in direct obligations of or obligations, the principal of and interest on which, are uncon- ditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than six (6) months after the date of such investment. (b) Moneys held for the credit of the reserve for contingencies in the Waterworks and Sewer Revenue Bond Fund and moneys in the Waterworks and Sewer Emergency Account shall be continuously invested and reinvested by the City in direct obligations of, or obligations, the.principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemptic by the holder thereof, at the option of such holder, not later than twelve (12) years after the date of such investment. (c) Moneys Ord. (f) That no delay.or omission of the Trustee or of any holders of the bonds to No.1166 any other exercise any right or power accrued upon any default ahall impair any such right or pow< (Cont.) option of the or shall be construed to be a waiver of any such -default or an acquiescence therein; an( be invested and reinvested every power and remedy given by this ordinance to the Trustee and to the holders of the the City in direct bonds, respectively, may be exercised from time to time and as often as may be deemed of, or obligations, expedient. (g) That the Trustee may, and upon the written request of the holders of not less than ten per cent (10%) in principal amount of Waterworks and Sewer Revenue Bonds then outstanding shall, waive any default which shall have been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted under the pro- visions of thus ordinance or before the completion of the enforcement of any other rem- edy, 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 27. That the Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execution of its trust, The recitals in this or- dinance and in the face of the bonds are the recitals of the City and not of the Trustee The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders of not less than ten per cent (10%) in principal amount of the Waterworks and Sewer Revenue Bonds then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10) days' notice in writing to the City and the majority in value of the holders of the outstanding Waterworks and Sewer Revenue Bonds,at any time, with or without cause may remove the Trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in value of the holders of the outstanding Waterworks and Sewer Revenue Bonds may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. If the maj- ority in value of the holders of the outstanding Watervo rks and Sewer Revenue Bonds shall fail to fill a vacancy within thirty (30) days after the'same shall occur, then th City shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. The original Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trust imposed upon it or them by this ordinance, but only upon the terms and conditions set forth in this ordinance and subject to the. provisions of this ordinance, to all of which the respective holders of the bonds agree, Such written acceptance shall be filed with the City Clerk and a copy thereof shall be placed in the bond transcript. Any successor Trustee shall have all the powers herein granted to the original Trustee. Section 28. That when the bonds herein authorized to be issued have been executed by the Mayor and City Clerk and the seal of the City impressed, as herein provided, the' shall be delivered to the Trustee, which shall authenticate them and deliver them to th purchaser upon delivery to the Trustee of the outstanding bonds of the January 1, 1946 issue, the December 1, 1948 issue and the December 1, 1952 issue with all unmatured cou• pons attached thereto, or' the making of an escrow deposit with the Trustee sufficient t( pay the principal and interest and all other charges necessary to fully pay and discharl said outstanding bonds with 'interest at the next interest paying date and said outstand� ing bonds are duly called for payment prior to maturity at their said next interest pay: date, and the payment of the balance of the purchase price and accrued interest from June 1, 1958. A sum suffici.enttopay the first six (6) months' interest shall be remitted to the Treasurer for deposit in the Waterworks and. Sewer Revenue Bond Fund and the balance shall be remitted to the Treasurer and deposited in trust with a bank that is a member of the Federal' Deposit Insurance Corporation, said deposit to be secured by bonds or other direct or fully guaranteed obligations of the United States of America, or by a corporate surety bond satisfactory to the Trustee, and said deposit shall be disbursed solely in payment of the cost of constructing the extensions, betterments and improve- ments of the System, including engineering, legal and other necessary expenses incident thereto, but only on warrants, checks or vouchers -signed by the Treasurer and one other person designated by the City briefly specifying the nature of the disbursement or ex- penditure, and -accompanied by a certificate signed by the engineer for such constructio that an obligation in a stated amount has been incurred and to whom such obligation is owed, except that no such certificate shall be required before payment of engineering fees, legal fees and the expenses of issuing the bonds. When the construction of the herein authorized extensions, betterments and improve- ments to the System -has been completed, this fact shall be evidenced by the filing with the Trustee and with the depository in which the construction fund is deposited of a cer ti£icate signed by the City Treasurer and by the engineer in charge of the construction. Upon receipt bf the above described certificate, the depository with which the construct ion fund is denosited shall pay or transfer any remaining balance pursuant to the writte direction or check signed by the Treasurer and the one other person designated by the City for signing checks on the construction fund, and any euch remaining balance may be used for the calling of the bonds of this issue for payment prior to maturity or may be transferred to the Waterworks and Sewer Revenue Bond Fund. Section 29. (a) That moneys held for the credit of the Construction Fund shall, as nearly as may be practicable, be continuously invested and reinvested by the City in direct obligations of or obligations, the principal of and interest on which, are uncon- ditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than six (6) months after the date of such investment. (b) Moneys held for the credit of the reserve for contingencies in the Waterworks and Sewer Revenue Bond Fund and moneys in the Waterworks and Sewer Emergency Account shall be continuously invested and reinvested by the City in direct obligations of, or obligations, the.principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemptic by the holder thereof, at the option of such holder, not later than twelve (12) years after the date of such investment. (c) Moneys held for the credit of any other Fund may, at the option of the City, be invested and reinvested by the City in direct obligations of, or obligations, the • • • 313 nrincipal of and interest on which, are unconditionally guaranteed by; the Unites State Ordin ce Government; which shall mature, or VAhich shall be subject to redemption by the holder No. 1166 thereof, at the option of such holder, not later than the date or dates when the moneys Continued. held for the credit of the particular fund will be required for the purposes intended. (d) Obligations so purchased as an investment of moneys in any such fund shall. be placed in the custody of the City Treasurer and shall be deemed at all times to be a part of such fund and the interest accruing thereon and any profit realized from such investment shall be credited to such fund, and any loss resulting from such investment shall be charged to such fund. Meeting f public he on Bond Ordinance n �J Specia Session called immediate followin other sp meeting. Section 30. That in the event the office of Mayor, City Clerk, City Treasurer or City�ouncil 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 -)r officer, or in the event of a vacancy in .-.ny such office by reason of death, resignation, removal from office or otherwise, or in the event any such offic 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 shall be performed by the office or officer succeed ing to the principal functions thereof, or by the office or officer upon whom such powe obligations and duties shall be imposed by law. Section 31. That the Mayor is hereby directed to publish for one insertion in The Nor lei w��rkansas im, which is hereby found and declared to be a newspaper published in aye tev llTe,esArkansas and of general circulation therein, this ordinance, to which shall be attached a notice signed by him in substantially the following form: N 0 T I C E Notice is hereby given that the City Council of the City of Fayetteville, Arkansas had adopted the ordinance hereinafter set out; that the City contemplates the issuance of the Waterworks and Sewer Refunding and Con- struction Revenue Bonds described in the ordinance; that any person inter- ested may appear before the;Council on the 1st day of May, 1958 at 7:30 o'clock p.m. at the usual meeting place of the Council held in Cites_ Administra ion Building and present protests. At such hearing all objections and suggestions will be heard, and the Council will take such action as is deemed proper in the premises. Dated this 21 day of April , 1958. Section 32. That this ordinance shall not create right ocean nd shall arise hereunder pursuant to it this ordinance shall be issued and delivered. Mayor any right of any kind and no'. until the bonds authorized by Section 33. That the provisions of this ordinance are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, it not affect the validity of the ramainder of the ordinance. Section 34. That all ordinances and resolutions and parts thereof in conflict herewitirf are hereby repealed to the extent of such conflict. Section 35. That it is hereby ascertained and declared that the Waterworks and Sewer System serving the City of Fayetteville, Arkansas is vh olly inadequate for the needs of the City and the inhabitants thereof, thus endangering the life, health and safety of the inhabitants and their property, and that the extensions, betterments and improvements required to alleviate said hazards can be obtained only by the issuance of the revenue bonds authorized hereby. 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 in force from and after Its passage. Passed: the 18th day of April , 1958. APPROVED: . AUSYIN PARISH,'MAYOR ATTEST: L�S� GEOR DAVIS, CITY CLERK r Alderman Burgin moved that the Council meet at 7:30 o'clock P.M: on the lst day of May, ring 1958, at its usual meeting place, for a public hearing on said Ordinance No. 1566, and that the Mayor give the required statutory notice. The motion was seconded by Alderman Lunsford and upon roll call the following vote was recorded: "Aye" Smith, Burgin, Lunsford, Williams, Hatfield, Kent, and Walker. "Nay" Barnhart. There being seven "Ayes" and only one "Nay", the Mayor declared the motion passed. The purpose of this meeting having been accomplished, Alderman Smith moved to adjourn. The motion was seconded by Alderman Williams and passed unanimously, whereupon the Mayor declared the meeting adjourned. ^ /� APPROVED: PARISH, The Mayor called the City Council of Fayetteville, Arkansas, into special session immediately following the adjourning of the special session at which a public hearing ial on the Water and Sewer Rate Ordinanpe as heli �nddl�rion,l8, 1958, to consider matter cd' closing certain streets and alleys.in 1estwoo , eEe5ENT: AlAJ O/? s'Rusriv PliRiS/f, e./rJ4CA eRK GeeRee T•Oyd%S, di7J.9TTyh{O.Mr. irJ' 4-N6, Wee. SMi rH." J} c pEi�'iNEN,' BliRNNHiQT .TMirA; 8G�/P6iN, Ll�NSF�RD n/i# CiAMs/ F, J� I