1272
GCOl14
ORDINANCE NO. 1272 (#5 - 06)
I
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF A SERIES
OF LIBRARY CONSTRUCTION AND IMPROVEMENT BONDS FOR THE
PURPOSE OF FUNDING THE CONSTRUCTION AND CAPITAL
IMPROVEMENTS TO THE PUBUC LIBRARY OF THE CITY; PLEDGING TAX
REVENUES SUFFICIENT TO PA Y THE PRINCIPAL OF AND INTEREST ON
THE BONDS; AUTHORIZING THE EXECUTION AND DEUVERY OF A TRUST
INDENTURE FOR THE BONDS; AUTHORIZING THE ACCOMPUSHMENT OF
THE PROJECT; APPROVING AN OFFICIAL STATEMENT; PRESCRIBING
OTHER MA7TERS RELATING THERETO; AND DECLARING AN EMERGENCY.
--------------------------------------------------
--------------------------------------------------
WHEREAS, at the Special Election held July 5, 2005, there was submitted to
the voters of the City of Jacksonville, Arkansas (the "City''), the question of issuing
bonds of the City (the "Bonds'') in the maximum principal amount of Two Million Five
Hundred Thousand Dollars ($2,500,000) to finance the costs of acquiring, constructing
and equipping land and additional capital improvements for the public library (the
"Project'') operated by the City and the Central Arkansas Library System ("CALS'') to
be payable from a continuing annual ad valorem property tax to be levied at a
continuing rate of 1.0 mill on the dollar of the assessed valuation of taxable real and
personal property in the City;
I
WHEREAS, the voters approved the issuance of the Bonds by a vote of 616
votes FOR and 288 votes AGAINST;
WHEREAS, the City and CALS intend to fund the Project improvements with the
proceeds of the Bonds;
WHEREAS, the estimated costs of the Project, including costs of issuing the
Bonds, will not exceed Two Million Five Hundred Thousand Dollars ($2,500,000);
WHEREAS, the City Council levied in 2005 for collection in 2006 and covenants
to levy in subsequent years an ad valorem property tax at the rate of 1.0 mill on the
dollar of the assessed valuation of taxable real and personal property in the City,
together with all penalties and interest payable with respect thereto (the "Library
Tax''), to be used to pay debt service on the Bonds;
WHEREAS, the City will receive its allocable portion of the One-Half Percent
(.5%) statewide sales and use tax implemented pursuant to Amendment No. 79 to
the Arkansas Constitution C'Amendment 79''), which is intended to offset any
decrease in collections resulting from the homestead exemption also implemented
pursuant to Amendment 79 (the "Special Tax Collections'');
I
WHEREAS, the City will covenant to pledge the Library Tax and the Special Tax
Collection to pay the debt service on the Bonds; and
WHEREAS, in order to serve and fulfill the purposes for which it has been
created and to provide funds for the financing of the Project, the City desires to adopt
this Ordinance authorizing the issuance and sale of the City of Jacksonville Library
Construction and Improvement Bonds, Series 2006 (the "Bonds") in the aggregate
principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000) and
other matters pertaining thereto.
0001.1.S
ORDINANCE NO. 1272 (#5 - 06)
PAGE TWO
I
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF JACKSONVILLE, ARKANSAS, THAT:
I
SECTION ONE. The Project shall be accomplished. The Mayor City
Clerk/Treasurer, and Director of Finance are hereby authorized to take or cause to be
taken all action necessary to accomplish the acquisition, construction, and equipping
of the Project and to execute all required documents.
SECTION TWO. Under the authority of the Constitution and laws of the
State of Arkansas, including particularly Amendment No. 30 to the Constitution of the
State of Arkansas, as amended by Amendment No. 72 to the Arkansas Constitution,
and Arkansas Code Annotated ~~14-142-201 through 222 (Act 920 of the Acts of
Arkansas of 1993), the City of Jacksonville, Arkansas Library Construction and
Improvement Bonds, Series 2006, are hereby authorized and ordered issued in the
total aggregate principal amount of not to exceed Two Million Five Hundred Thousand
Dollars ($2,500,000), for the term and at the interest rates set forth in Exhibit "A"
attached hereto and incorporated herein by this reference. The Bonds shall not be
general obligations of the City, but shall be special obligations payable solely from the
proceeds of the Library Tax, the Special Tax Collections, and other moneys, funds,
and amounts, more specifically identified in the Indenture, (identified hereinafter).
The City hereby pledges the Library Tax, the Special Tax Collections, and other
moneys, funds, and amounts available therefor pursuant to the Indenture to secure
payment of the Bonds.
SECTION THREE. In order to pay the principal of and interest on the Bonds
as they mature and are called for redemption prior to maturity, together with fees and
costs incidental thereto, there are hereby appropriated out of the proceeds of the
Library Tax and the Special Tax Collections the sums necessary to pay the same in
accordance with the schedule of principal and interest attached hereto as Exhibit "A"
and made a part hereof.
SECTION FOUR. The proceeds of the Bonds, together with investment
earnings thereon, shall be used: (i) to finance the Project; and, (ii) to pay the costs
of issuance of the Bonds. The Bonds will mature, bear interest, and be subject to
redemption in accordance with the provisions of the Indenture (identified hereinafter).
I
SECTION FIVE. All actions heretofore taken by the Mayor City
Clerk/Treasurer, and Director of Finance in connection with the offering of the Bonds,
including the preparation and distribution of the Preliminary Official Statement,
preparation of the Official Statement, and preparation of this Ordinance (the
"Authorizing Ordinance''), are hereby in all respects ratified and approved. The
Official Statement is deemed a final Official Statement for purposes of the Securities
and Exchange Commission Rule 15( c) 2-12. The Official Statement of the City in the
form presented at this meeting with such changes, omissions, insertions, and
revisions as the Mayor City Clerk/Treasurer, and Director of Finance shall deem
advisable is hereby authorized and approved, and the Mayor shall sign and deliver
such final Official Statement to the Underwriter for distribution to the owners of the
bonds and other interested persons.
SECTION SIX. The appointment of First Arkansas Bank & Trust
("Trustee'') as Trustee for the Bonds is hereby approved.
000:L16
ORDINANCE NO. 1272 (#5 - 06)
PAGE THREE
I
SECTION SEVEN. To prescribe the terms and conditions upon which the
Bonds authorized by the voters at the July 5, 2005 Special Election are to be
executed, issued, accepted, held, and secured, the Mayor is hereby authorized and
directed to execute and acknowledge a Trust Indenture between the City and the
Trustee, and the City Clerk[Treasurer is hereby authorized and directed to execute
and acknowledge the Trust Indenture and to affix the seal of the City thereto. The
Mayor and City Clerk{Treasurer are hereby authorized and directed to cause the Trust
Indenture to be accepted, executed, and acknowledged by the Trustee, and the Trust
Indenture is hereby approved in substantially the form submitted for this meeting.
I
SECTION EIGHT. The Mayor, the City Clerk[Treasurer, the Director of
Finance, and CALS, for and on behalf of the City, are authorized and directed to do
any and all things necessary to effect the execution and delivery of the Trust
Indenture, the performance of all obligations of the City under the Trust Indenture,
the issuance, execution, sale, and delivery of the Bonds, including the execution of
a Bond Purchase Agreement between the City and the Underwriter in the form
presented for approval at this meeting, and the performance of all acts of whatever
nature necessary to effect and carry out the authority conferred by this Ordinance.
The Mayor City Clerk[Treasurer, and CALS are further authorized and directed, for
and on behalf of the City, to execute all papers, documents, certificates, and other
instruments that may be required for the carrying out of such authority or to evidence
the exercise thereof.
SECTION NINE. The appointments of Wright, Lindsey & Jennings LLP as
Bond Counsel and of Crews & Associates, Inc. as Underwriter, respectively, are hereby
approved and ratified, and all actions of Bond Counsel and the Underwriter performed
in connection with the offering and sale of the Bonds, including the preparation of the
Preliminary Official Statement, the Official Statement, and the Ordinance are hereby
in all respects approved and ratified.
SECTION TEN. Emergency. It is hereby found and declared that an
immediate need exists for the accomplishment of the Project in order to achieve the
most cost effective financing for the City's public library. It is, therefore, declared that
an emergency exists. 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 date of passage.
APPROVED AND ADOPTED THIS ~Y'O~ DAY OF MARCH, 2006.
CITY OF JACKSONVILLE, ARKANSAS
I ~A~A~ ~~.
TOMMY SWAI , MAYOR -
EXHIBIT "A"
I
Series 2006 Bonds
Term Bonds*
$190,000** 3.625% Term Bond due March 1, 2011 @100.000°/o
$280,000** 4.000% Term Bond due March 1, 2016 @100.000°/o
$350,000** 4.300% Term Bond due March 1, 2021 @100.000°/o
$435,000** 4.500% Term Bond due March 1, 2026 @100.000°/o
$550,000** 4.700% Term Bond due March 1,2031 @100.000°/o
$815,000** 4.500% Term Bond due March 1, 2036 @ 99.183%
(Accrued interest from date of Bonds to be added)
*Term Bonds. sublect to mandatory sinking fund redemotion.
I
I
G(~ U -l..~,-.;
, ., ~" .-", " ;.
ul.~u_......:.lL1
CERTIFICATE
I
STATE OF ARKANSAS )
COUNTY OF PULASKI ) SS
CITY OF JACKSONVILLE )
I, Susan Davitt, City Clerk/Treasurer within and for the City
aforesaid, do hereby certify that the foregoing is a true and correct copy
of Ordinance No. 1272 (#5-06) of the City of Jacksonville, Arkansas,
entitled: "AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF A
SERIES OF LIBRARY CONSTRUCTION AND IMPROVEMENT BONDS FOR THE
PURPOSE OF FUNDING THE CONSTRUCTION AND CAPITAL IMPROVEMENTS TO
THE PUBLIC LIBRARY OF THE CITY; PLEDGING TAX REVENUES SUFFICIENT TO
PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS; AUTHORIZING THE
EXECUTION AND DELIVERY OF A TRUST INDENTURE FOR THE BONDS;
AUTHORIZING THE ACCOMPLISHMENT OF THE PROJECT; APPROVING AN
OFFICIAL STATEMENT; PRESCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY"; adopted by the Jacksonville City Council of
said City on March 2, 2006, said Ordinance now appearing of record in this
office.
I
IN WITNESS WHEREOF, I have hereunto set my hand and seal of
office on this ~nd day of March, 2006.
~-v
=~
~f'>" i
. ~'~<.}f:
'- ; ~,"~ j
:--:. ~~7i
-: ~ ,-. --:~ '
<:'
:~~ ,'"
~;~"i' ',,\,:;,~,/:/,
..... ~'br
,~'y'
~--
r
~
I