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1334 a ORDINANCE NO. 1334 (#1 - 08) AN ORDINANCE AUTHORIZING THE MAYOR AND CITY CLERK OF THE CITY OF JACKSONVILLE, ARKANSAS, TO EXECUTE ALL APPROPRIATE DOCUMENTS REQUIRED ON BEHALF OF THE JACKSONVILLE WASTEWATER UTILITY'S EFFORTS TO OBTAIN AN EXTENSION OF INTERIM FINANCING FOR EXTENSIVE COLLECTION SYSTEM REHABILITATION; AND, FOR OTHER PURPOSES. WHEREAS, the Jacksonville Wastewater Utility (JWU) is desirous of obtaining an extensive of interim financing for extensive rehabilitation of the East Pump Station and Collection System throughout the City, all of which is required to continue the Utility's ongoing rehabilitation work throughout its system; WHEREAS, after Request for Proposals, JWU obtained an extension of the 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 project. Said funds are being made available pursuant to Amendment 78 and Act 1808 of 2001; and, WHEREAS, the Jacksonville Sewer Commission has agreed to continue its pledge of 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: SECTION ONE: The Jacksonville Wastewater Utility (JWU) is desirous of obtaining an extension of its interim financing for extensive rehabilitation of the East Pump Station and Collection System throughout 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 #102 ( #1 — 08), a copy of which is attached hereto and made a part hereof. SECTION TWO: In response to JWU's Request for 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 extending its existing loan for an additional Twenty-four (24) months up to Five Million Two Hundred Thousand Dollars ($5,200,000.00) at no more than Four and 19/100 Percent (4.19 %) APR. Said loan terms and conditions are based on issuance of this loan extension 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 new 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. ORDINANCE NO. 1334 (#1 — 08) Page Two SECTION FOUR: The proceeds from said loan extension shall fund, partially or wholly, extensive and needed rehabilitation of JWU's collection system throughout the City. The loan amount does not exceed Five Percent (5 %) of the assessed value of taxable property within the City of Jacksonville, and security for and a ment of said loan proceeds shall be by and through the PY P Y 9 general revenues of the Jacksonville Wastewater Utility. No general funds of the City shall be utilized as payment of this loan or obligation thereof. 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 21 st DAY OF FEBRUARY, 2008. CITY OF JACKSONVILLE, ARKANSAS TOMMY SWAIM MAYOR ATTEST: )11a • VITT, CITY ERK p a... zY— • . .,.. , D AS T• �' J Y �\ 41 \j tom- -- ••r• ■ l ' ROBE'•T E. B s p • �