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ORDINANCE NO. n47
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF WATER
AND SEWER REVENUE BONDS BY THE CITY OF JACKSONVILLE,
ARKANSAS FOR THE PURPOSE OF FINANCING A PORTION OF
THE COSTS OF CONSTRUCTING EXTENSIONS, BETTERMENTS
AND IMPROVEMENTS TO THE WATER AND SEWER SYSTEM;
PROVIDING FOR THE PAYMENT 01' THE PRINCIPAL OF AND
INTEREST ON THE BONDS; PRESCRIBING OTHER MATTERS
RELATING THERETO; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Jacksonville, Arkansas (the "City ") owns and
operates a municipal Water and Sewer System (the "System "); and
WHEREAS, the City has outstanding an issue of Waterworks and
Sewer Revenue Bonds, dated May 1, 1957, in the original principal amount
of $340,000 of which $205,000 in principal amount are now outstanding,
issued under and secured by the provisions of Ordinance No. 89 ( "Ordinance
No. 89 ") of the Ordinances of the City, adopted and approved on April 18,
1957 (the "1957 Bonds "); and
WHEREAS, the City has outstanding an issue of Waterworks and
Sewer Revenue Bonds, dated January 1, 1960, in the on inal principal amount
of $130,000 of which $86,000 in principal amount are now outstanding, issued
under and secured by the provisions of Ordinance No. 103 ( "Ordinance No.
103 ") of the Ordinances of the City, adopted and approved on January 4, 1960
(the "1960 Bonds "); and
WHEREAS, the City has outstanding an issue of Waterworks and
Sewer Revenue Bonds, dated June 1, 1961, in the original principal amount of
$71,750 of which $47,000 in principal amount are now outstanding, issued
under and secured by the provisions of Ordinance No. 131 ( "Ordinance No.
131 ") of the Ordinances of the City, adopted and approved on June 8, 1961
(the "1961 Bonds "); and
WHEREAS, the City has outstanding an issue of Waterworks and
Sewer Revenue Bonds, Series A, dated June 1, 1964, in the original principal
ORD. BOOK # Pnnr -4 _ __ _
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amount of $499,500 of which $422,000 in principal amount are now outstanding,
and an issue of Waterworks and Sewer Revenue Bonds, Series B, dated June 1,
1964, in the original principal amount of $281,500 of which $241,000 are now
outstanding, issued under and secured by the provisions of Ordinance No. 152
( "Ordinance No. 152 ") of the Ordinances of the City, adopted and approved
on June 11, 1964 (collectively referred to as the "1964 Bonds "); and
WHEREAS, it is necessary that the City construct extensions, betterments
and improvements to the System (the "improvements "); and
WHEREAS, there has been prepared by a duly qualified consulting
engineer a preliminary report and estimates covering the improvements, which
have been studied by the City Council and a copy filed in the office of the City
Clerk, to which reference may be made by any interested party; and
WHEREAS, the financing of the improvements can be obtained by the
issuance of revenue bonds (the "bonds "); and
WHEREAS, the estimated cost to the City of the improvements and
of authorizing and issuing bonds is $1,900,000, with the balance of the costs
to be obtained from an agency or agencies of the United States of America; and
WHEREAS, the City has entered into a contract with Stephens, Inc.,
Little Rock, Arkansas (the "purchaser "), for the purchase of $1,900,000 Water
and Sewer Revenue Bonds at a price of par and accrued interest for bonds bearing
interest at the rate of 5 -3/4% per annum, with the privilege of conversion to
an issue bearing different rates of interest with the conversion to be upon such
terms that the City receive no less and pay no more than it would receive and
pay if the bonds were not converted;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
Jacksonville, Arkansas:
ORD. BOOK # PAGE I. c9
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Section 1. That the improvements be accomplished.
Section 2. That the sale of the bonds to the purchaser, with the privilege
of conversion be, and the same is hereby, approved and confirmed.
Section 3. That under the authority of the Constitution and laws of
the State of Arkansas, including particularly Act No. 131 of the Acts of Arkansas
of 1933, as amended, Act No. 132 of the Acts of Arkansas of 1933, as amended,
and applicable decisions of the Supreme Court of the State of Arkansas, including
particularly City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d 12 (1946),
City of Jacksonville, Arkansas Water and Sewer Revenue Bonds are hereby
authorized and ordered sold in the unconverted principal amount of $1,900,000
for the purpose of financing a portion of the costs of the improvements and paying
the expenses of issuing the bonds. The bonds shall be dated April 1, 1973,
interest shall be payable semiannually on April 1 and October 1 of each year,
commencing October 1, 1973, and shall mature serially on April 1 in each of
the years 1974 to 1993, inclusive. The bonds shall be numbered consecutively
from 1 upwards, and shall be in the denomination of $5,000 each, so far as
possible. In this regard, after the purchaser has converted the bonds, the
City shall adopt a resolution which shall set forth the details of the bonds as
converted, including numbering, denominations, maturity schedule, interest
rates and the Trustee and Paying Agent (the purchaser has the privilege of
designating the Trustee and Paying Agent). The bonds shall be negotiable
coupon bonds payable to bearer but shall be subject to registration as to
principal or as to principal and interest. Principal and interest are payable
at the principal office of the Trustee and Paying Agent. Payment of interest
when registered as to interest may be by check or draft mailed to the registered
owner at the address shown on the registration book of the City maintained by
the Trustee. The bonds shall be subject to redemption prior to maturity as
hereinafter set forth.
ORD. BOOK
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Section 4. The bonds shall be executed on behalf of the City by
the Mayor and City Clerk and shall have impressed thereon the seal of the
City. The principal of and interest on the bonds shall be payable solely out
of the 1973 Water and Sewer Revenue Bond Fund (hereinafter created and re-
ferred to as the "Bond Fund ") and shall be a valid claim of the bondholders
only against the Bond Fund and the revenues pledged to the Bond Fund. The
lien, pledge and security of the bonds are subordinate to the lien, pledge and
security of the 1957 Bonds, the 1960 Bonds, the 1961 Bonds and the 1964 Bonds.
The bonds shall not constitute an indebtedness of the City within any con-
stitutional or statutory limitation.
Section 5. That the bonds shall be in substantially the following
form and the Mayor and City Clerk are hereby authorized and directed to make
all recitals contained therein:
:ORD. BOOK
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UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF JACKSONVILLE
% WATER AND SEWER REVENUE BONDS
No. $
KNOW ALL MEN BY THESE PRESENTS:
That the City of Jacksonville, Pulaski County, State of Arkansas (the
"City "), acknowledges itself to owe and for value received, hereby promises
to pay to bearer, or if this bond be registered, to the registered owner hereof,
solely from the special fund provided as hereinafter set forth the principal sum of
DOLLARS
in lawful money of the United States of America on the first day of April, 19,
and to pay interest thereon at the rate of percent ( %) per annum,
from the date hereof until paid. Interest is payable semiannually on April 1 and
October 1 of each year, commencing October 1, 1973. Principal and interest
shall be payable at the principal office of
(the "Trustee" and "Paying Agent "). Payment of interest,
when registered as to interest, may be by check or draft mailed to the registered
owner at his address reflected on the registration book of the City maintained
by the Trustee.
The bond is one of an issue of Water and Sewer Revenue Bonds, aggre-
gating Dollars ($ ) .
dated April 1, 1973, numbered from 1 to _, inclusive, all of like tenor and
effect except as to number, rate of interest, denomination, maturity and right of
prior redemption (the "bonds ") , issued for the purpose of financing a portion of
the costs of constructing extensions, betterments and improvements to the Water
and Sewer System (the "System ") , with the balance of the costs to be obtained
from an agency or agencies of the United States of America.
ORD. BOOK # PAGE # ��
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The bonds 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, as amended, and the decision of the Supreme Court of the State of
Arkansas in City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d 12 (1946),
and pursuant to Ordinance No. of the City, duly adopted and approved
on the day of , 1973, and an implementing resolution
(collectively referred to as the "Authorizing Ordinance "), and do not constitute
an indebtedness of the City within any constitutional or statutory limitation.
The bonds are not general obligations of the City, but are special obligations
payable solely from and secured by a pledge of the net revenues derived from
the operation of the System, a sufficient amount of which has been duly set
aside as a special fund for that purpose and identified as the "1973 Water and
Sewer Revenue Bond Fund" created by the Authorizing Ordinance. The lien,
pledge and security of the bonds are subordinate to the lien, pledge and
security of Waterworks and Sewer Revenue Bonds of the City described in the
Authorizing Ordinance and referred to as the 1957 Bonds, the 1960 Bonds, the
1961 Bonds and the 1964 Bonds. Reference is hereby made to the Authorizing
Ordinance for a detailed statement of the nature and extent of the security, the
rights and obligations of the City, the Trustee and the holders and registered
owners of the bonds and the terms and conditions upon which the bonds are
issued. The City has fixed and has covenanted and agreed to maintain rates
for water and sewer services which shall be sufficient at all times to provide
for the proper and reasonable expenses of operation and maintenance of the
System, to provide for the payment of the principal of and interest on the 1957
Bonds, the 1960 Bonds, the 1961 Bonds, the 1964 Bonds and these bonds as
they mature, and the Trustee's and Paying Agent's fees, to make adequate pro-
vision for the depreciation of the System and to maintain all funds at required
levels.
ORD. BOOK #
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This bond may be registered as to principal or as to principal and
interest and may be discharged from such registration in the manner, with the
effect, and subject to the terms and conditions endorsed hereon. Subject to
the provisions for registration endorsed hereon, nothing contained in the bond
or in the Authorizing Ordinance shall affect or impair the negotiability of this
bond, and this bond shall be deemed a negotiable instrument under the laws of
the State of Arkansas and is issued with the intent that the laws of the State of
Arkansas will govern its construction.
The bonds shall be subject to redemption prior to maturity, in whole or
in part, in inverse numerical order, as follows: From surplus proceeds of the
sale of the bonds not needed to accomplish the improvements and from surplus
revenues derived from the operation of the System on any interest payment date
at a redemption price of the principal amount being redeemed plus accrued
interest; from funds from any other source on any interest payment date on and
after April 1, 1983, at a redemption price of the principal amount being refunded
plus accrued interest and plus a premium of 3% of the principal amount being
refunded.
Notice of the call for redemption shall be published one time in a
newspaper published in the City of Little Rock, Arkansas, and having a general
circulation throughout the State of Arkansas, giving the number and maturity of
each bond being called, with the 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 interest, provided funds for its payment are on
deposit with the Paying Agent at that time. In addition, notice shall be given
by first class mail, mailed fifteen (15) days prior to the redemption date, to the
registered owner of each bond registered as to principal or as to principal and
interest at the address of such owner reflected on the bond registration book of
the bond registrar and if all outstanding bonds shall be registered as to principal
and interest, then notice by first class mail to the registered owners thereof
shall be sufficient, and it shall not be necessary to publish notice of the call.
DRD. BOOK # CD PACE # `- 9
Page 8
This bond shall not be valid until it shall have been authenticated by
the certificate hereon duly signed by the Trustee.
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, as required by law; that the
indebtedness represented by this bond does not exceed any constitutional or
statutory limitation; and that sufficient revenues have been pledged to and will
be set aside into the special fund provided for in the Authorizing Ordinance for
the purpose of paying the principal and interest on the bonds.
IN WITNESS WHEREOF, the City of Jacksonville, Arkansas, has caused
this bond to be executed by the facsimile signature of the Mayor, the manual
signature of the City Clerk, and its corporate seal of the City to be affixed,
and has caused the interest coupons attached hereto to be executed by the fac-
simile signature of its Mayor, all as of the first day of April, 1973.
CITY OF JACKSONVILLE, ARKANSAS
ATTEST:
BY (facsimile signature)
Mayor
City Clerk
(SEAL)
nrn nnn!, u oprr a 59
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Page 9
(Form of Coupon)
No. $
April,
On the first clay of October, 19_, the City of Jacksonville, Pulaski
County, Arkansas, unless the bond to which this coupon is attached is paid
prior thereto or unless the bond is registered as to interest in accordance with
the provisions pertaining thereto set forth in the bond, hereby promises to pay
to bearer, solely from the special fund referred to in the bond,
DOLLARS
in lawful money of the United States of America at the principal office of
, being six (6) months interest
then due on its Water and Sewer Revenue Bond, dated April 1, 1973, and
numbered
CITY OF JACKSONVILLE, ARKANSAS
BY (facsimile signature)
Mayor
On each bond shall appear the following:
CERTIFICATE
This is one of the bonds of the City of Jacksonville, Arkansas Water
and Sewer Revenue Bonds, dated April 1, 1973.
BY
Authorized Signature
pRD. BOOK
PROVISIONS FOR REGISTRATION AND RECONVERSION
This bond may be registered as to principal alone on books of the
City, kept by the Trustee as bond registrar, ' upon presentation hereof to the
bond registrar, which shall make mention of such registration in the registration
blank below, and this bond may thereafter be transferred only upon an assignment
duly executed by the registered owner or his attorney or legal representative in
such fonn as shall be satisfactory to the bond registrar, such transfer to be made
on such books and endorsed hereon by the bond registrar. Such transfer may be
to bearer, and thereafter transferability by deliver' shall be restored, but this
bond shall again be subject to successive registrations and transfers as before.
The principal of this bond, if registered, unless registered to bearer, shall be
payable only to or upon the order of the registered owner or his legal representative.
Interest accruing on this bond, will be paid only on presentation and surrender of
the attached interest coupons as they respectively become due, and notwithstanding
the registration of this bond as to principal, the appurtenant interest coupons
shall remain payable to bearer and shall continue to be transferable by delivery;
provided, that if upon registration of this bond, or at any time thereafter while
this bond is registered in the name of the owner, the unmatured coupons attached
evidencing interest to be thereafter paid hereon shall be surrendered to said bond
registrar a statement to that effect will be endorsed hereon by the bond registrar and
thereafter interest evidenced by such surrendered coupons may be paid by check
or draft at the times provided herein to the registered owner of this bond by
mail to the address shown on the registration books. This bond when so
converted into a bond registered as to both principal and interest may be
reconverted into a coupon bond at the written request of the registered owner and
ORD. 3oOK
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upon presentation at the office of said bond registrar. Upon such reconversion
the coupons representing the interest to become due thereafter to the date of
maturity will again be attached to this bond and a statement will be endorsed
ereon by the bond registrar in the registration blank below whether it is then
registered as to principal or payable to bearer.
1
$2,008,000
Jacksonville Water & Sewer Revenue
Dated: April 1, 1973 Duet April 1
INTEREST
YEAR RATE PRINCIPAL APRIL 1 OCTOBER 1 TOTAL
1973 49,321.75 49,321.75
1974 3.70 58,000 49,321.75 48,248.75 155,570.50
1975 3.95 60,000 48,248.75 47,063.75 155,312.50
1976 3.95 65,000 47,063.75 45,780.00 157,843.75
1977 4.20 65,000 45,780.00 44,415.00 155,195.00
1978 4.20 70,000 44,415.00 42,945.00 157.360.00
1979 4.30 70,000 42,945.00 41,440.00 154,385.00
1980 4.40 75,000 41,440.00 39,790.00 156,230.00
1981 4.50 80,000 39,790.00 37,990.00 157,780.00
. 1982 4.60 85,000 37,990.00 36,035.00 159,025.00
1983 4.70 90,000 36,035.00 33,920.00 159,955.00
1984 4.80 95,000 33,920.00 31,640.00 160,560.00
1985 4.90 100,000 31,640.00 29,190.00 160,830.00
1986 5.00 110,000 29,190.00 26,440.00 165,630.00
1987 5.10 115,000 26,440.00 23,507.50 164,947.50
1988 5.20 120,000 23,507.50 20,387.50 163,895.00
1989 5.30 130,000 20,387.50 16,942.50 167,330.00
1990 5.40 140,000 16,942.50 13,162.50 170,105.00
1991 5.45 150,000 13,162.50 9,075.00 172,237.50
1992 5.50 160,000 9,075.00 4,675.00 173,750.00
1993 5.50 170,000 4,675.00 - - 174.675.00
2,008,000 641,969.25 641,969.25 3,291,938.50
Trustee and Paying Agent: Citizens Bank, Jonesboro, Arkansas
nRD_ !,G 4 59
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Section 6. That the rates to be charged for services rendered by the
System heretofore fixed by Ordinance No. 268, adopted and approved on July 27,
1972, are hereby ratified and confirmed.
That the City hereby covenants and agrees that there will be imposed
and collected such charges for the use of the System as will at all times pro-
duce sufficient revenues to provide for the operation, maintenance and repair
of the System, to provide for the payment of the principal of and interest on
all outstanding bonds to the payment of which System revenues are pledged,
including the 1957 Bonds, the 1960 Bonds, the 1961 Bonds, the 1964 Bonds
and these bonds, as the same become due, to provide for Trustee and Paying
Agent's fees, make required deposits into the Depreciation Fund and to main-
tain all Funds at required levels, all as provided in ordinances and resolutions
authorizing and securing such bonds. This covenant shall include the agreement
and obligation to increase the charges from time to time as and to the extent
necessary to produce sufficient revenues to meet the above requirements..'
Section 7. That the provisions, covenants, undertakings, stipulations
and obligations of the City set forth in Resolution No. 2, passed and approved
October 30, 1952, and Resolution No. 3, passed and approved November 11,
1952 (which Resolutions authorized the issuance of Combined Waterworks and
Sewer Refunding and Improvement Revenue Bonds, dated December 1, 1952
(the "1952 Bonds ") and which 1952 Bonds have been refunded), Ordinance No.
89, Ordinance No. 103, Ordinance No. 121 and Ordinance No. 152, pursuant
to which the 1957 Bonds, the 1960 Bonds, the 1961 Bonds and the 1964 Bonds
were issued and secured and are presently outstanding, as such Ordinances
may, at any time, be amended, shall inure and appertain to the bonds of this
issue to the same extent and with like force and effect as if set forth herein
in full, except only insofar as the same may be expressly inconsistent with
the provisions of this Ordinance. In this regard, it is understood that the 1952
Bonds have been refunded, and it is possible that the 1957 Bonds, the 1960 Bonds,
the 1961 Bonds and the 1964 Bonds may be paid and retired prior to the payment
ORD. BOOK #_PAGE # L.19
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of the outstanding bonds of this issue, but that nevertheless the applicable
provisions, covenants, undertakings and stipulations for the operation of
the System and for the imposition, collection and application of the revenues
from such operation as set forth in the Resolutions and Ordinances referred to
above shall continue in force and effect and shall inure and appertain to the
bonds hereby authorized until their payment as above set forth.
Section 8. 1973 Water and Sewer Revenue Bond Fund. (a) There is
hereby established with a bank, holding membership in the Federal Deposit
Insurance Corporation, to be designated by the City, a special fund in the
name of the City designated "1973 Water and Sewer Revenue Bond Fund" (the
"Bond Fund ") which shall be maintained as long as any of the bonds are out-
standing and unpaid, and into which there shall be paid the sums in the amounts
and at the times hereinafter set forth in Subsection (b) for the purpose of pro-
viding funds for the payment of the principal of, interest on and Trustee's and
Paying Agent's fees in connection with the bonds, according to the schedule
to be set up and approved by the City Council after the terms of the conversion
of the bonds shall have been approved by the City Council, and as a debt
service reserve.
(b) There shall be deposited in the Bond Fund on the first business
day of each month until all outstanding bonds, principal and interest, have
been paid, or adequate provison 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 install-
ment of principal, and an amount sufficient to provide for the Trustee's and
Paying Agent's fees, on all outstanding bonds as they become due; provided,
however, that when there shall have been accumulated in the Bond Fund a debt
ORD. BOOK # a PAGE # ( 5 9
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for the redemption of bonds prior to maturity in the manner and pursuant to the
provisions hereof pertaining to redemption prior to maturity or for any other
lawful purpose.
(g) There shall be withdrawn from the Bond Fund at least five (5)
days before the maturity date of any principal or interest payment and deposited
with the Paying Agent an amount equal to the principal and interest becoming
due for the sole purpose of paying principal and interest, together with the re-
quired amount of Trustee's and Paying Agent's fees, and no withdrawals of
funds from the Bond Fund shall be made for any other purpose except in the
case of an accumulated surplus as specified in (f) above.
(h) The bonds shall be specifically secured by a pledge of all revenue
• required by this Ordinance to be placed into the Bond Fund. The pledge in favor
of the bonds is hereby irrevocably made according to the terms of this Ordinance,
and the City and officers and employees of the City shall execute, perform and
carry out the terms thereof in strict conformity with the provisions of this
Ordinance.
Section 9. That the bonds shall be subject to redemption prior to
maturity in accordance with the provisions in the bond form appearing in
Section 5 hereof.
Section 10. That the recitals in this Ordinance 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 notified
in writing and shall have been indemnified to its satisfaction against any loss,
damage, or expense on account of the taking of such action. 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 and registered owners of the bonds at any time
ORD. BOOK # & PAGE #-
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may, with or without cause, remove the Trustee. Upon the resignation or removal
of a Trustee, the majority in value of the holders of the bonds may name a new
Trustee, but if such holders do not name a new Trustee within thirty (30) days
after a vacancy occurs, the City shall forthwith name a new Trustee. The
appointment of a new Trustee shall be evidenced by a written instrument filed
in the office of the City Clerk. Any successor Trustee shall have all the powers
herein granted to the original Trustee.
Section 11. That after the bonds have been executed by the Mayor and
City Clerk and the seal of the City impressed as herein provided, they shall be
delivered to the Trustee which shall authenticate them and deliver them to the
purchaser upon receipt of the purchase price of par, plus accrued interest from
April 1, 1973, to date of delivery ( "total sale proceeds ") . The total sale pro-
ceeds shall be disbursed as follows:
(1) The accrued interest shall be deposited in the Bond Fund.
(2) The balance of the total sale proceeds shall be deposited in a special
account designated "1973 Water and Sewer Construction Fund (the "Construction
Fund') in a bank to be designated by the City that is a member of the Federal
Deposit Insurance Corporation, the 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. The Construction Fund shall be disbursed
solely in payment of the cost of constructing the improvements to the System, including
engineering, legal and other necessary expenses incidental 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 expenditure, and
accompanied by a certificate signed by the engineer for such construction 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. The depository of the Construction
Fund shall execute an agreement to comply with the provisions of this Subsection.
U u. bLun t5 r,,ut_ # c59
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When the construction of the improvements 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 certificate signed by the City Treasurer
and by the consulting engineer. Upon receipt of the above described certificate
the depository with which the Construction Fund is deposited shall pay or transfer
any remaining balance pursuant to the written 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 such remaining balance may be used for the calling of the bonds for
payment prior to maturity or may be transferred to the Bond Fund.
Section 12. (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 unconditionally guaranteed by, the United States Government, or in bank certificates
of deposit, which shall mature, or which shall be subject to redemption by the holder
thereof, at the option of such holder, not later than the date the moneys will be needed.
(b) Moneys held for the credit of the debt service reserve in the Bond Fund
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 redemption 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 principal of and interest on which, are unconditionally 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 the date or dates when
the moneys held for the credit of the particular fund will be required for the purposes
intended.
of/D. BOOK PAGE #_—� "�
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(d) Obigations 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.
(e) Moneys so invested need not be secured by the depository bank.
Section 13. The City covenants that it will take no action or suffer
or permit any action to be taken or condition to exist which causes or may cause
the interest payable on the bonds to be subject to federal income taxation. With-
out limiting the generality of the foregoing, the City and the Trustee covenant
that the proceeds of the sale of the bonds will not be used directly or indirectly
in such manner as to cause the bonds to be treated as "arbitrage bonds" within
the meaning of Section 103(d) of the Internal Revenue Code.
Section 1.4. That the Mayor is hereby directed to publish for one
insertion in , which is hereby found and declared 'to
be a newspaper published in Jacksonville, Arkansas, and of general circulation
therein, this Ordinance, to which shall be attached a notice signed by him in
substantially the following form:
9110. BOOK #_ PAc-E #,S--1_2-
NOTICE
Notice is hereby given that the City Council of the City of Jacksonville,
Arkansas, has adopted the Ordinance hereinafter set out; that the City con-
templates the issuance of Water and Sewer Revenue Bonds described in the
Ordinance; that any person interested may appear before the Council on the
r
day of Al , 1973, at 7:30 o'clock _p.m., at the usual
meeting place of the Council held in Jacksonville, Arkansas, 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 ,Y day of A- e --- K..,1973,
l Mayor
ORD. BOCK #- ,PAGE #'� =—,1_.
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Section 15. That this Ordinance shall not create any right of any
kind, and no right of any kind shall arise hereunder pursuant to it until the
bonds shall be issued and delivered.
Section 16. That the provisions of this Ordinance are hereby de-
clared to be separable and if any provisions shall for any reason be held
illegal or invalid, such holding shall not affect the validity of the remain-
der of the Ordinance.
Section 17. That all ordinances, resolutions and parts thereof in
conflict herewith are hereby repealed to the extent of such conflict.
Section 18. That it is hereby ascertained and declared that the
present water and sewer facilities are inadequate and by reason thereof there
exists a hazard to the life, property and welfare of the inhabitants of the City.
The herein authorized improvements are immediately necessary to alleviate
the hazard and can be accomplished only by the issuance of the bonds
herein authorized. 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: �7)cnc� , 1973.
APPROVED:
ATTEST:
, -
I 1 e k�L
Mayor
City Clerk
(SEAL)
DRD. BOok #_ PAOE LS 9
March 8, 1973
Mayor and City Council
Jacksonville, Arkansas
Gentlemen:
This contract will confirm our agreement reached in Jacksonville, Arkansas
on Thursday, the 8th day of March, 1973.
The City of Jacksonville, Arkansas needs to finance various extensions and
improvements to their water system. We understand that it is necessary for the
City to have a firm financial commitment for this financing. Accordingly,
Stephens, Inc. agrees to purchase $1,900,000 City of Jacksonville, Arkansas
Water and Sewer Second Lien Revenue Bonds at a price of par plus accrued interest,
said bonds to be dated at a date mutually agreed on, maturing and bearing interest
at a rate of 5 3/4 %.
The pre- converted schedule of the $1,900,000 issue at 5 3/4% is shown on the
attached sheet. The bonds shall be convertible at our option under the following
terms and conditions. The conversion shall be in accordance with the Universal
Bond Tables in such a way that the total principal and interest requirements on
the converted schedule shall not exceed the total principal and interest re-
quirements on the non - converted schedule.
The bonds will be non - callable for the first ten years and will be callable
thereafter at the principal amount of the bonds being called, plus accrued
interest to the redemption date, plus a premium of 3 %.
We agree to cooperate with Smith, Williams, Friday, Eldridge and Clark,
Bond Counsel, Little Rock, Arkansas, upon whose approving opinion these bonds
will be issued, in the preparation and handling of all necessary legal instruments
involved in the issuance of the bonds and the security for their payment.
We reserve the right to name the trustee and paying agent on this issue as
well as making provision for the temporary investment of funds derived from the
bond issue, said investments to be in certificates of deposit. Said investment
will be made in accordance with a draw -down maturity schedule provided us by
the engineers on the project.
The expenses of the issue, including the trustees' authenticating fee, the
printing of the bonds, and attorneys fees, are to be paid by us.
The City will fully cooperate with us with the end in view of the bonds being
issued and delivered as soon as necessary legal steps preliminary to their
authorization and issuance can be reasonably taken, with bonds being issued and
delivered within 90 days from the date of this contract or thereafter at our
option for 90 days.
If the agreement set forth herein is acceptable, please execute in the space
below.
Respectfully submitted,
STEPHENS, INC.
By
ACCEPTED this the 8th day of March, 1973, b e Ci of Jac.' v.11e, Ark leas.
/,
A2L� ,S 4I/
yor
4 -eCr) 4:11
peretary
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$1,900,000
Jacksonville Water & Sewer Revenue
5 3/47
Dated: April 1, 1973 Due: April 1
INTEREST
YEAR PRINCIPAL APRIL 1 OCTOBER 1 TOTAL
1973 54,625.00 54,625.00
1974 45,000 54,625.00 53,331.25 152,956.25
1975 45,000 53,331.25 52,037.50 150,368.75
1976 50,000 52,037.50 50,600.00 152,637.50
1977 55,000 50,600.00 49,018.75 154,618.75
1978 55,000 49,018.75 47,437.50 151,456.25
1979 60,000 47,437.50 45,712.50 153,150.00
1980 65,000 45,712.50 43,843.75 154,556.25
1981 70,000 43,843.75 41,831.25 155,675.00
1982 80,000 41,831.25 39,531.25 161,362.50
1983 85,000 39,531.25 37,087.50 161,618.75
1984 95,000 37,087.50 34,356.25 166,443.75
1985 100,000 34,356.25 31,481.25 165,837.50
1986 110,000 31,481.25 28,318.75 169,800.00
1987 115,000 28,318.75 25,012.50 168,331.25
1988 120,000 25,012.50 21,562.50 166,575.00
1989 130,000 21,562.50 17,825.00 169,387.50
1990 140,000 17,825.00 13,800.00 171,625.00
1991 150,000 13,800.00 9,487.50 173,287.50
1992 160,000 9,487.50 4,887.50 174,375.00
1993 170,000 4,887.50 - 174,887.50
1,900,000 701,787.50 701,787.50 3,303,575.00
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