HomeMy WebLinkAbout07-63 RESOLUTION4
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A UUSOLUTIOf PROVIDEG FOn TEE REFUNDIDni fl OUT-
STAroIr 3 ummuOZ$ AIR') SEVER REFUEDILS ADD CO3STIWC-
RIO:i nonsuit toms 07 THE CITY 07 FAYETTEVILLtE,
AESADISAS; FOn THE ISSUALca 07 U& URLOMS AZtD sauna
um= REFUND= Dos MU _ , OR ;' RUPBALI&9 RESOLUTION
CO. 6-63 07 TOEDE$OLUTIO:3'02 Tri CITY 07 FAYETTEVILLU,
ADOPTED IMARCE 14, 1963; D?CLARUE Alt tCEGBtCY; ADD
FOn OTTER PIERPOSBS
moms, of the $5,710,000 principal ,mount of U'atorvorka
and Sans Rofunding end Construction flcvcnuo Bonds issued by tho
City of Payottovillo, Arkansan, dated Juno 1, 1958, end bearing;
interact at tho rated of 1$0, 20, 3%, 300, 30, 3-3/4%, and 4%
per cusum, for the purpoco of refunding outatcnding Sewer Revenue
tondo end outotending Gator Revcaae tondo of tho City of Fayette -
villa, and for the purpose of constructing austensionc, betterments,
and improvements to the vatorwor4sc and nectar cyctas of tho City,
which bonds =aro ianued under tho authority of Act ro. 131 of the
Acts of the General AnneMbly of Arkenoao for tho year 1933, an =tend-
ed, Act to. 132 of the Acta of the amoral Ascerbly of Artaacan for
the year 1933, and Ac t Do. 297 of the Acts of the General Acce=bly
of Arkcnoas for the year 1937, ac waded, those are now outstanding
and =matured $5,313,000 principal count of paid bonds, with inter-
est paid thereon through Death= 1, 1962; and
MMUAS, the said bonds aro callable for payment prior to
maturity aftor Juno 1, 1963, with funds from any =urea, at par plus
a premium of 20 if rodc:sd on or prior to Juno 1,1964; at 2% if
redeemed thereafter and on or prior to Juno 1, 1965; at 10 if ro-
deemed thereafter and on or prior to Juno 1, 1966; at 1% if redeems
cd thereafter end on or prior to Juno 1, 1967; at 1/2% if rodoe d
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thcroafter and on or prior'to Juno 1, 1968; and at par without a
premium if redeod_ after June 1, 1968, :and tho.City Council finds
that the City tan 'refund tho caid•Q5,313,000 principal comet of
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outottnAjtg bonds from the proceeds of the solo of tho bonds
horoinaftcr authorised to be Brined, that by co doing the City
can cavo a groat amount of interest in the payment of the said
bonds and free itsolf from certain unnecessary liens on tho water-
works eyatea and from certain restriction° on the use of too funds
of the City, and that it is to the advantage of tho City to refund
thesaid outstanding bonds; and
UMEREAS, the City is authorised undor Act Co. 297 of the
Ata of tho General Assembly of Arkansas of the year 1937, as
emended, to iccuo and soil revenue bonds for the purpose of
refunding the acid outstanding bonds; and
ED=EREAS, toaedure`the m nay to refund the said $5,313,000
of Waterworks end Senor Rofunding and Construction Ravenna Bondo,
the Council baa determined to iacuo tho Waterworks and Sourer
Ravenna Refunding Bonds bcroinaftor cuthoriced, to be payablo solely
from tho revenue° of both a#oma; and
MAMAS, the Council hap cold to Rsuacher, Pierce 6 Co., Inc.,
Dallas, Texas, at 100 conte on the dollar and accrued interact,
05,313,000 principal amount of bonds, $893,000 bearing interest at
tho tato of 32 per annum from. date, $725,000 bearing interact at
tho rate of 342 per annum from data, $680,000 bearing interact at
tho rata of 34% por cnnum from data, $1,215,000 bearing intorest at
the rate of 3-3/42 per annum from dato, and $1,800,000 boaring inter-
act at the rata of 3.702 per annum frac date, dated June 1, 1963,
and maturing serially on Juno 1 in each of the wars 1964 to
1990, inclusive, the purchaccr to pay the coat of printing tho
bonds, tho foo of tho attorney° mho aro to cpprove thea, the coat
of authenticating the bonds, and tho costa of the Escrow Agent under
en escrow egrce2nt to provide for the rotirea nt of tho paid act -
standing 05,313,000 of Waterwork° and Sccsr Refunding and Construction
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Rovcnuo Donde am theynatura December 1, 1963 and for poyeont prior
to eaturity on December 1, 1963 together with the costa incidental
to occuring such !trending,. cnd the purchaoor to have tho privilege
of nrming the paying agent and.thcAEscrou Agent in tho said eecroa
agroco„-nt; and
LEMBEAS, the:Council finds that tho maturity data of the
oaid bonds will not =aced the poriodfof uoofulueno of tho utter -
=mho end soar oyctrsa3
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Eta, THEREVOnu, ER IT acSOLVJ BY THE CITY COIJgCIL 07 TDB
CITY OV VAYETTBVILLB, AmtAMS:
Section 1. That the oaid Uatorvorka end Soenr Refunding.
and Construction Movenuo Bonds in tho principal amount of $5,313,000,
bearing interact at tho ratan of 3%, 34%, 34%, 3-3/4%, end 4%,
dated Awe 1, 1950, be rafundod from tho proceeds of tho sale of
the refunding bonds heroin cuthortccd to be iaeuod and that all
otepo necaoaary therefor bo tckon.
Station 2. That negotiable coupon bonds of thn City of
Payatteviillo, Arkcnaas (horoinaftor comntines called "Bonds"), be
iooucd in tho total principal =aunt of Vivo tlillion Throe Hundred
Thirteen Thousand Doliars ($5,313,000) payablo solety from tho
rovcnues of the Uatere orko system and Sir cyotcm oented and oporat-
ed by tho City, co hereinafter provided, for tho purpoco of refund-
ing the $5,313,000 principal amount of said outstanding Wntoreorks
end Sauer Refunding and Construction favcnuo Benda of tho City,
dated Juno 1, 1958; that tho said bonds bo designated "City of
Vayottcviilo 3% (3d, 34%, 3-3/4%, and 3.7053) natoraarko and San
Revenue Refunding Donde", bo dated as of Juno 1, 1963, $893,000
bear intcroot at the rain of 3% per annum from data, $725,000 boar
intcroat at the rate of 342 por annum from data, $680,000 boar
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interest at the rate of 3$% per annum from date, $1,215,000 boar
interest at the rate of 3-3/42 per imus from date, and $1,800,000
bear interest at the rate of 3.702 par annum from date, payable
semiannually on the first day of December and Juno in each year,
beginning December 1, 1963, evidenced by coupons attached thereto,
be in the denominations, numbered, and maturing on June 1 in
the amounts and years, respectively, as follows, but subject to
redemption before maturity on the conditions hereinafter set out:
EOND
All
1
4
44
86
129
155
182
209
237
266
296
327
359
392
427
463
500
538
378
619
NUMBERS DENOMINATION - NATI OF INTEREST AMOUNT MATURITY
Inclusive) 2 June 1
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- 43
- 85
- 128
- 154
- 181
- 208
- 236
- 265
295
- 326
- 358
- 391
- 426
- 462
- 499
- 537
- 577
- 618
- 661
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$1,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
3.. P/:• $
203,000 1964
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210,000 1965
213,000 1966
130,000 1967
135,000 1968
135,000 1969
rt140,000 1970
145,000 1971
150,000 1972
155,000 1973
3b% .160,000 1974
165,000 1975
175,000 1976
180,000 1977
3-3/41 185,000 1978
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190,000 1979
200,000 1980
205,000 1981
215,000 1982
DOD cis
Ali Iasluaivo)
662 - 705
706 - 751
752 - 799
800 - 849
050 - 900
901 - 953
954 - 1008
1009 - 1065
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DIMMT115:1 RAZE 01 =ST rAtuazn
June 1
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
3-3/47 220,000
3.70% 230,000
240,000
250,000
255,000
265,000
275,000
285,000
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1983
1984
1985
1986
1987
1988
1989
1990
that tho bonds coy have the Cecsiceilo (signature of tho tlayor of the
City lithographed or printed thereon and ba sited by the City Clerk
end coaled with tho corporate seal of the City, and that the intar-
oat upon tho bond° bo evidenced by coupons thoroto ettcshcd, tho
coupon° to bo tinned by oaid Mayor by hip fccoinilo °Stone ro; that
tho paid facsimile signature° on the bonds and coupons dhoti have
tho demo forest cod affect op if said bondo and coupon° caro porton-
ally oicncd by tho Myer of the City; that tho bonds end coupons
bo paycble in lawful coney of tho United Staten of erica at the
offico of Union Plantar° national Donk, in Lphia, Tc nncopco; and
that octh bond contain a recital that it io Lamed purcuent to
said Let no. 297 of tho Cc al. 4ccctbly of !Snow of the year
1937, ea mended by Act Co. 96 of said Gomorra Aaembly of the year
1941 end Act CO 291 of paid Cetera Accembly of tho yoar 1943.
!ha boat, together vith;intoreste tiecresa, shall. ,bo payable
coldly out of the Catorearb° and Cm= Seven= Cofundin3 Dana hued
as horoinafter dofined, cd;cbail.bo a valid cicti of tho holder
thereof only egainct cant iftn!, and tho roust of the =tonnes
pledged and cortgc;cd for the equal end ratable paycant of the bond°
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and shall be used for no other purpose than to pay the principal
of and interest on the bonds.
Section 3. That said bonds and coupons be in substanti-
ally the following forms:
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Utzwb ; sthzns OP =mud*
nap or =aims
cauurr w UASEiiDOT0iI
CITY 07°FAYEn
3$ ` .`ASS AO SE[:*SIt DEVOUR UUFIJZDICD
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UCO I ALL =I DY THUD Pf 3SffTS :
That tho City of Fayetteville (heroin called the "City"),
in the County of Uachincton, end State of Arkanaao, hereby =knows
lode= itoolf to eras, and for valuo received pronieoo to pay to
boaror, solely out of tho ravauoo received fro the waterworks
and actor orate= ovr*cd by said City, the principal cum of
DOLLARS
on the firot day of June, 19�-, cad to pcy, sololy out of said
revenues, interest horcon at tho rata of thrco per ccntua (38) par
cnnum from Juno 1, 1963, payablo ceattnnually on tho firot days
of December end Juno of ecch year, upon precentation end ourrcnd-
cr of the =noted interest coupons co thoy severally beteg duo.
Each principal hereof cad interest horcon shall bo paycblo in lwful
roomy of tho United Staten of t-arica et the office of Union Plentero
Cational Dens, in temphio, Tcnnooeco. The City io not obit/ata
to pay thio bond or tho interest thereon except from tho cpccial
fund provided fres tho rovenuos of the watorrorks end actor 'vote=
owned by tho City, horoinaftor called "Syctcmo", as hereinafter
oat forth.
This bond is ono of a duly cuthoriccd Dories of ono thou-
sand sixty-fivo (1,065) bonds, aStreaatin3 Five Hinton Three Rnndred
Thirteen Thouoend Dollatn` ($5,313,tOO• MO) •dated Juno 1, 1963,
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nueberod from 1 to 1,065, inclusive, all of like dato and tenor
except as to denomination,, intnreat rata, maturity, and right of
prior redemption, issued for the purpoao of rofunding legally out -
°tending uatcrworka end Soaor Refunding and Construction • Ravenna
Ronda of tho City, dated June 1, 1958, which tore iacuod for tho
purpose of refunding outstanding Senor Revenue Ronda and outstand-
ing Hater Ravenna Rondo of the City and for conotruoting extensions,
betterconta, and ieprovcxnto to the waterworks and occar systems
of tho City.
This bond and the oerica of which it forma a part aro towed
under and pursuant to and in full compliance with the Constitution
and lava of tho Stato of Arkansas, including particularly Act Co.
297 of tho regular motion of the General A seMbly of the State of
Artznsas for tho year 1937, as emendod by let Ro. 96 of the regular
*canton of said Gonorai Aoscably of the year 1941 and Act to.
291 of the regular coacion of said Gcnoral Aoacebly of tho year
1943, and pursuant tosaeolutiona and proceeding° of the City
Council duly patted, and do not conotituto an indobtcdna°s of the
°aid City within °cry constitutional or statutory limitations.
Doth principal of and interost on said bonds aro payable
solely from a fixed Mount of the net rovdnues derived from the
operation° of tho Syatcma remaining after tho payment only of tho
reaconablo and proper coots) of operation and naintoncncO of the
Systems, Which amount °hall be cufficicat to pay tho principal of
end interest on the bonds as) tho soo beta= duo and payable Thi°
amount bas been duly cot acids and plodgad ac a cpccial fund for
the pnrpoao and'idcntified'as thin "Hatascmrka and Scwor novenuo Refunding
Sand ptind" created by
iLosolution Co. cdoptod by tho City Count
cii of sold City of Payottevillo on tho day of :
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1963, end in said Resolution tho said City of Payottcvillo has
covenanted and agreed to fix end maintain ratan for actor and
actor acre coir thich shall bo sufficient at all titan to provide
for tho paytsnt cfthc reasonable expenses of oporatioa and ciain-
tcnanco of said.Systems and to provide for tha palm -ant of tho
principal of and interest on the bond° as the ccs bccot duo
and payable.
Thin bond is acproaaly coda nogotiabla under °aid Act Co.
297 end is ioaued with the intent that the leto of tha State of
Arkansas °halt govern the construction thereof.
Bonds of this caries aro subject to rcdc ption before
maturity, at tho option of the City, in lawful funds of tho United
States of /erica, in inverse =tortcai order, on any interest
payc3nt data, on and aftor Juno 1, 1983, at par end accrued inter -
oat, from curplua rovenuos darivcdfrontho operation of the paid
Systems in exccsa of. tho most rcquircd to be paid into tiro
Uatareorka end Samar Ravenna Refunding Bond Vaud and to ointain
a reserve, as defined in paid Resolution Do. , and from any
other availtbin funds. McBee of tho Ball for the redemption Shall
ba publichcd' by the City Clark of tho City for onto insertion pro
than thirty (30) days bafora'tho datolof ouch rcdeption in a
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ncuapapor of gyral circulation pnbliahad in tho City of Little
Rock, Arkansas, and having a gcnoral circulation throughout tho
State of Arkansan, and in a financial journal published in tho
Borough of Manhattan, City of Um York, and after tho dato can-
tioncd in said call, the bond or bond's so called sill ccaco to boar
interact; provided funds for their payment aro on deposit at that
tics.
IT IS HEREBY CERTIFIED, RECITED, AZTD DXLMUW that all
tato, conditions and thing° roquirad by tha Constitution end lava
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of the State of Arkansas to exist, happen and be performed prece-
dent to and in the issuance of this bond have existed, have
happened, and have been performed in due time, fora and manner,
as required by law, and that sufficient of the income and revenue
which is deemed to be derived from the operation of said Systems
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;
and that the total amount of the bonds issued by tis City, in-
cluding this bond, does not exceed any constitutional or statutory
limitation.
This bond shall not be valid until it shall have been
authenticated by the certificate hereon, duly signed by Union
Planters National Bank, in Memphis, Tennessee.
IN WITNESS WHEREOF, the City of Fayetteville, by its City
Council, has caused this bond to be executed by the facsimile
signature of the Mayor thereof and to be signed by the City Clerk
thereof, and sealed with the corporate seal of said City, and has
caused the coupons hereto attached to be executed by the fac-
simile signature of its Mayor, all as of the first day of June,
1963.
ATTEST:
City Clerk
(SEAL)
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CITY 97 BATETTEVILLE, ARKANSAS
By.
Mayor
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(FORM OF COUPON)
No. 0
December,
On the first day of 19, the City of Fayetteville,
April,
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Washington County, Arkansas, promises to pay to bearer the sun of
Dollars ($ ) solely out of
the spacial fund specified in the bond to which this coupon
appertains, at the office of Union Planters National Sank, in
Sophia, Tennessee, in lawful money of the United States of America,
being six months' interest then due on its 3% Waterworks and
Sewer Revenue Refunding Sone, dated the first day of June, 1963,
and membered , unless the bond to which it appertains is sooner
called for payment.
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CITY 0? FAYETTEVILLE, £UANSAS
Mayor
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(The signature of the Mayor may be lithographed or
engraved.)
On the back of said bonds is to appear the following:
CERTIFICATE
This is one of the bonds aggregating $5,313,000.00 des-
crdbsd within.
Memphis, Tennessee
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UNION PLANTERS NATIONAL SANE
BY:
Authorized Signature
Section 4. That the City Treasurer shall becustodian of
the gross revenues derived from the operation of the waterworks and
sewer cystesas and shall give bond for the faithful diccharge of his
duties as such custodian. The amountof the bond shall bo $25,000
end shall be approved by the City Council. From and after the de-
livery of any bonds issued under:thd provisions of this Aeeolution
the waterworks and sever systems shall be continuously operated ao
a revenue producing undertaking. All coneys reeai edby the Treasurer
shall be deposited by him in such depository or depositories for the
City ds may be lawfully designated from time to time by the City
Council, subject,however, to the giving of security as now or as
hereafter any be required by law, end provided that such depository
or depositories shall hold membership in the Federal Deposit Insur-
ante Corporation. All deposits shall bo in the name of tho City and
shall bo to 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 bo secured by
bondo or other direct or fully guaranteed obligations of the United
States.
Section 5. So long as may of the principal of and interest
on any of the bonds herein authorised to be issued are outstanding,
the entire incase and revenues of the Systems shall be set aside,
as collected, and deposited in a special fund, hereby croetcd, b
be known as the "Waterworks and Seater Fund", end disbursements there-
from shall be uredo as hereinafter provided for, in the following
order of priority:
(1) There shall be disbursed therefrom each month
ouch onus ao are roeoonablo and proper for the coat of operation
end =intonanee of the Systems.
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(2) There shall be set aside and deposited on the
first business day of each month into a separate fund, hereby
created, to be known as the "Waterworks and Sewer Revenue Refund-
ing Bond fund", in equal monthly installments, the amounts here-
inafter stated in sub -sections (a) and (b) for the purpose of pro-
viding funds for payment of principal of and interest on the brands
as they mature, according to the following schedule, Which amounts
are hereby irrevocably pledged for said purposest
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DATE PRINCIPAL
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1983
1986
1987
1988
1989
1990
$203,000
210,000
215,000
130,000
135,000
135,000
140,000
145,000
150,000
155,000
160,000
165,000
175,000
180,000
185,000
190,000
';200,000
205,000
215,000
220,000
230,000
240,000
250,000
255,000
265,000
275,000
285,000
ate.
INTEREST
1 December 1
$93,157.50
90,112.50
86,962.50
83,737.50
81,787.50
79,762.50
77,568.75
75,293.73
72,937.50
70,500.00
67,981.25
65,181.25
62,293.75
59,231.25
56,081.25.
52,612.50
49,050.00
45;300.00
41,456.25
37,425.00
33,300.00
29,043.00
24,605.00
19,980.00
15,262.50
10,360.00
5,272.50
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TOTAL
$93,157.50 $ 93,157 50
90,112.
86,962.
83,737.
81,787.
79,762.
77,568.
75,293.
72,937.
70,500.
67,981.
65,181
62,293
59,231
56,081
52,612
49,050
45,300.
41,436
$7,425
33,300
29,045
24,605
19,980
15,262
10,360
5,272
50 386,270.00
50 387,075.00
50 385,700.00
50 295,525.00
50 296,550.00
75 292,331.25
75 292,862.50
50 293,231.25
00 293,437.50
25 293,481 25
.25 293,162.50
. 75 292,475.00
296,525.00
295,312.50
293,693.75
291,662.50
294,350.00
. 25 291,756.25
.00 293,881.25
.00 290,725.00
.00 292,345.00
.00 293,650.00
.00 294,585.00
. 50 290,242.50
. 00 290,622.50
. 50 290,632.50
290,272.50
. 23
.25
. 50
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(a) Ono -Sixth of the aggregate runt of
Interest beeping duo end payable on
the bonds during the neat succeeding
aim (6) conthe;
(b) One-tuolfth of tho cggrcgate vaunt of
principal of 'the .bonds. 'becoming duo and
payable during the nomt aucoeeding evolve
(12) eantha;
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together °Pith the paying agent's foot as hereinafter provided.
Co further paymentc;necd bo nada' into the Watarrorks and
Sever Revenues Refunding Dond Fund when the,eoumt contained there -
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in is at least equal to the'aggpprogato principal count of the bonds
than outstanding, plus the amount of interest then duo or there-
after to become due an ell of the bond.. If for any reason the
City Shall fail to cake the payytcnts into the tJotereorhn and
Bator Revenue Refunding Dond Fuad required by cub-acction (2) of
this section in any eonth, the amount of such deficiency (shall bo
added to the +counts required to be paid into the Watercorke and
Senor Uovenuo Refunding Dond Fund in each cuceocaivo tenth, until
such deficiencies Shall have been sande up. All coney paid into
the Wntertorks and Senor Revenue Refunding Dond Ftmd &hall be hold
by tho City in trust for the holder or holders of the bonds and
the coupons tpportaining thereto, end the City cballnot have any
beneficial interest or rightin ouch coney.
All coney deposited in tho Waterworks and Sauer Revenue
Refunding Bond Find shall be ucod solely for the purpose of paying
intermit on and the principal of the bondo herein authorized, to -
gather with the paying menu's foes, and for no other purpose.
(3) Any revenues remaining in the Watoreorks raid Sever
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Fund after payment of the reasonable coot of operettas and cain-
tainint the Systems and making tranafosa to the Uateruorks and
Smear Revenue Rofunding Bond Fund required by cub cectiona (1) end
(2) above, and rains my transfers to maintain tho Uatorrorka and
Sour Revenue Bends Reserve Fund en provided in Section 6 of thio
Resolution and to maintain tho Waterworks and Sewer Contineoncy
Reserve an provided in Section 7 of thin Resolution, chat be tot
aside and dcpoeitcd into a separate fund, hereby created, to bo
know ao the "Unbarred= and Sensor Surplus Revenue Fund", and
may bo used to call bonds for redemption on tho conditions hero-
in cot out or for tho construction of tcprovement° and better -
cents to the Syatctrs.
Section 6. tlatermark° end Sever Revenue Refunding 'Donde
Reserve Fund. Upon tho execution cad delivery of the Watermarks
end Seer Revenue Refunding Bonds heroin authorized to be tamed,
tho City Treasurer is directed to transfer fro eny available funds
hold in the several Water anal Sewer Duado of the City into a fund
aids to hereby created end designated "Watertarks and Sewer Revenue
Refunding Donde Reserve Fund" the cum of 0300,000 which said fiend
shall be maintained at thesaid figure end °hall bo mod for no
purpeao other than to prevent a dofeult in the payment of the prin-
cipal of and interest on tho bond° herein authorised to bo issued
as tho said principal and interact mature°, end in tie event coney°
from the said Reserve Duand aro expended for too purpose of prevcnt-
ing a defeult in the payment of principal of and interest on the
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bends heroin euthorined to bo locuod,.the-fund shall be restored
to 0300,000 fray. the firot oroneyc available from the Watermarks end
Server fund.
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Section 7. Waterterko ced Sewer Contingency Rocervo. Upon
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the execution end delivery of the Watoruorka end Sour Revenue
Refunding Donde, heroin authorizedto bo lamed, the City Treasurer
ie directed to transfer frac eny available fund° held in tho novena
%latcrvorta end Senor Funds of tho City into a fund vbiah is hereby
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created end designated "UJAtortorbs and Sear Contingency Rocarro"
tho ru:n of 4100,000, thick avid Contingency Re°arve °hall be main-
tained at'the paid figure end shall be need only to the extent
necessary to cot any emergency arising out of or affecting the con-
tinuous eporatica of the vateraorks`hoz °cnor systems as a revenue
producing undertakiaag fer which them arra no other tends availebio
or for preventing the dafcult in the payment of principal of or
interest on the bonds herein authorized to be iecued, or performing
eny covenant of the City heroin contained for thigh there aro no
other fund° availabia, end in the event money° from the said Con-
tingency Reserve aro expended for the mid purpose, or eny of thea,
tho Contingency Reserve eballba reetorcd to 4100,000 free the first
funds available from the Uatercorke and Sewer Fuad.
Section 8. t'ntervozka and Scoot Repair end 2'teplrcetont
Fund. Upon execution end delivery of the Waterworks end Sower
Revenue Refunding Donde heroin euthorisod to be iccued, the City
treasurer is directed to trcnafcr from eny available funds hold in
the several Wattervoorka and Sewer Funds of the City into a fund ehich
is hereby created and designated "Watermark° and Sever Repair and
Replesc t Fund" the tum of 450,000. Tha coney in the said Uo-
plecceent Fund shalt be need colely for the purpose of paying the
coot° of rcplecco nts nada necessary by the depreciation end/or
obcoloccenee of the =atarxorka and acber rya= end gun bo main-
tained from paycente ae providod_in Section 5 (1) of this Resolution,
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in at c=ount sufficient for the said purpose not to exceed the
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said cum of $50,000.
Section 9. It.shall be the duty of the City Treaeur= to
vithdrea fro± tho t'atermarke end Seer Revenue Refunding Bond Pond
at loaat five days before the maturity data of my bond or interact
coupon tamed hereunder, maid Co deposit with Union Planters fationai
Data, in i* his, Tennoscco. tho paying agent, an atzount equal to
the count of ouch bond or coupon for the nolo purpoco of paying
the sae; end no withdrawal of funds from said Watermarks end Sumer
Ravenna Refunding Bond Ptnd shall be made for cny other purpose.
except es otherwise authorised in thin Resolution. Such deposit
shall be at the nolo risk of tho City end shall not operato co a
payment of the bonds or coupons until so cpplied. At the time of
e ach payment tho Troasuror Shall rem it to the paying agent a fee of
124 cents for each $100 par value of bondo end 5 aceto for etch
coupon.
Suction 10. So long as any of the bonds heroin.euthor-
iccd or coupons appertaining theroto shall remain outstanding
end unpaid, the City Shall and hereby covenants card camas with
tho holder or holders of the bonds end the eoupono cpportnining
thoroto that:
(1) it will at all times establish, maintain and
collect ratan and charges for cervices furnished by the Sync=
sufficient to provide for tho payment of proper end reaoonabia
oupentco of oporation end naintcncnco of the Syetaee, such ea
coy bo necoaaary to preserve the coo in good corking order,
e nd for the payment of tho ouachoreinabovo in Section 5 ro-
quired to be paid into tho patorworko dnd Sewer Syatco Revenue
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Fund, and for the payascnt of any other charges required by thio
Resolution. Tho City chail make ouch provisions for tho rendering
of monthly billo as gill insurer an-erdorly administration of the
collection of cuch rated cad'ehargos,'end shall make such provi-
aion for diccontinucnce of the servicoc afforded by the Systems,
or either of them, in the event of non -pages of such renter or
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Seder billy endo dunk charged to.cover theexpense of etch
diccontinuemeo and recu 'tion of cervices as shall insure the
proper end current parent of tch bi11d."
(2) Co free service of cny eeturo shall bo rendered
by thea gyotcme, nor Shall my preferential rates bo established
for ucaro of the same clays.
(3) In tho event the City or eny deperteent, agency,
instrumentality, officer of ctployco thereof, shall avail theme-
colvea of the facilities or eorvicos provided by the Sycter.v,
the reeconabie value of the corvicea or facilities of the spotema
co provided shall be paid by the City, department, agency, or
instrumentality thereof, at the rata established by the City for
pmt in other casco. The revenues so received Shall be deemed
to be revenues derived from tho operation of the Systems and
shall bo deposited and eccounted for in the acme manner as other
revenues of the Systems.
(4) The City Council hereby epprovon, ratifies and
confirms the voter and seder ratea heretofore adopted by the Coun-
cil, by Ordinance Co. 1165 peaacd end epprovod on the 18th day of
April, 1958, ea emended by Ordinance No. 1323 passed end epprovcd •
on the ith day of Llovcmbor, 1962. Tho said rates shall never bo
reduced co long as eny of the t ateri:orke end Seder Revenue Refund-
ing Dent heroin euthorised to be issued aro outstanding, unless
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there is obtained from an independent certified public cecountant a
certificate that the not revenues of the Systema for the,preteding
fiscal year, or the preceding twelve months' period (not revenues being
defined as groat revenuesills the reasonable expenses of operation
and maintenance of the Systems, including all expense items pro-
perly attributable to operation and maintenance under generally
tempted recounting prcctieee applicable to municipal waterworks
and ocuor syatcas) were equal at 'tact to 133-1/31 of the tat an-
nual debt service charges necessary toservice tho.Water and Scorer Re-
vonua Refunding Bonds herein authorised to be lamed and than out-
standing and the tins necessary to maintain the Waterworks and Sewer
ttov+enuo Rounding Ronda Reaervo Fund endtho Waterworks end Sower
Contingency Reserve herein provided, together with a written opinion
from said independent certified public eccountant that the proposed
nen rates will produce net revenues, as above defined, sufficient to
equal at least 133-1/3% of the maximus annual debt cervico charges
required to service the said bonds bene in authorized to be issued
end than outstanding end to maintain the said Reserve Lund, Con-
tingency Reserve, end fEpleccaent Fund herein provided. The City
further covenants end agrees that said rates shall, then necessary,
from time to time be increased en an cmomt sufficient to provide
total revenues for the heroin chime sot forth rcquironts end to
maintain all funds provided for heroin.
Section 11. That it is hereby covenanted end agreed by
the City with the holder or holders of the bonds heroin =thin -
iced to be issued that it wi11 perform all duties with reference
to the Systems required by the Constitution end laws of the State
of Arkansas, and the City hereby irrevocably covenants, binds,
and obligate', itself not to pledge, mortgage or ',thermion encuMbor
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