1270
000:1.1)8
ORDINANCE NO. 1270 (#3 - 06)
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AN ORDINANCE AUTHORIZING THE MAYOR AND CITY CLERK OF THE
CITY OF JACKSONVILLE, ARKANSAS, TO EXECUTE ALL APPROPIUATE
DOCUMENTS REQUIRED ON BEHALF OF THE JACKSONVILLE
WASTEWATER UTILITY'S EFFORTS TO OBTAIN INTERIM FINANCING
FOR EXTENSIVE COLLECTION SYSTEM REHABILITATION; AND, FOR
OTHER PURPOSES.
WHEREAS, the Jacksonville Wastewater Utility (JWU) is desirous of
obtaining interim financing for extensive rehabilitation of the East Pump Station
and Collection System throughout the North quadrant of the City, all of which is
required to continue the Utility's ongoing rehabilitation work throughout its
system;
WHEREAS, after publication for Request for Proposals, JWU has obtained
a favorable loan proposal and rate from Community Bank to secure interim
financing of no more than Five Million Two Hundred Thousand Dollars
($5,200,000.00) for this portion of the project. Said funds are being made
available pursuant to Amendment 78 and Act 1808 of 2001; and,
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WHEREAS, the Jacksonville Sewer Commission has agreed to pledge the
general revenues of JWU to provide payment of the interim financing obligations.
The Commission continues to research the most advantageous long-term
financing options available to satisfy all costs associated with the Utility's
extensive rehabilitation efforts, both scheduled and anticipated.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF JACKSONVILLE, ARKANSAS, THAT:
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SECTION ONE: The Jacksonville Wastewater Utility (JWU) is desirous
of obtaining a loan for extensive rehabilitation of the East Pump Station and
Collection System throughout the North quadrant of the City, all of which is
required to continue the Utility's ongoing commitment to needed rehabilitation
work throughout its system. As such, the Jacksonville Sewer Commission passed
Commission Resolution #100 (#1 - 06), a copy of which is attached hereto and
made a part hereof.
SECTION TWO: In response to JWU's Request for Proposals of interim
financing options to pay the costs associated with said system rehabilitation
project, Community Bank submitted and has agreed to provide a favorable fixed
rate Twenty-four (24) month loan of up to Five Million Two Hundred Thousand
Dollars ($5,200,000.00) at Four and 19/100 Percent (4.19%) APR. Said loan
terms and conditions are based on issuance of this loan pursuant to Amendment
78 and Act 1808 of 2001 as tax exempt. The Commission's agreement with
Community Bank provides for JWU's general revenues to be pledged as security
to pay said loan upon demand of payment, and in no manner shall payment of
this loan be extended beyond a period of five (5) years.
SECTION THREE: The Mayor and the City Clerk are hereby authorized
to execute all necessary certificates and documents required to satisfy the
requirements and conditions of Amendment 78 and Act 1808 of 2001.
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ORDINANCE NO. 1270 (#3 - 06)
Page Two
SECTION FOUR: The proceeds from said loan shall fund, partially or
wholly, extensive, and needed rehabilitation of JWU's collection system in the
North quadrant of the City. The loan amount does not exceed five percent (50/0)
of the assessed value of taxable property within the City of Jacksonville, and
security for and payment of said loan proceeds shall be by and through the
general revenues of JWU.
SECTION FIVE: All Ordinances or parts of Ordinances in conflict
herewith are hereby repealed to the extent of such conflict.
SECTION SIX: This Ordinance shall take effect immediately upon
passage and publication, as provided by and subject to the requirements of
applicable law.
APPROVED AND ADOPTED THIS JL, Y\\.. DAY OF FEBRUARY, 2006.
CITY OF JACKSONVILLE, ARKANSAS
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TOMMY SWAIM, AYOR
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