0002 •
RESOLIJTION N0. 2
6
C ‘rt Rs
A RESOLUTION AUTHORIZING THE EXECUTION )F AN AGREEMENT
I TERMI ATI G AP EYISTING LSE OF ;,.TER AHD SEVER PROPERTIES
AND T' P OF MATER AND SEtER PROPERRTIES BY TIC CITY
OF JACKSONVILLE NO" CANED BY JACKSONVILI.S ''TER COMPANY;
AUTHORIZING THE ISSUANCE OF RATER ■ORES AND SEVER REFUND-
ING AND IMPROVEMENT REVENUE BONUS BY THE CITY OF JACKSON-
VILLE. ARKANSAS FOR THE PURPOSE OF REFINANCING CERTAIN
OUTSTANDING 'MATER" iORKS AMID SEER REVENUE PONDS NERETOFGRE
ISSUED AIM FOP IMPROVING AND EXTENDING THE JACKSONVILLE
"ATER'"ORKS ^.ND SE":ER SYSTEMS; SETTING UP CERTAIN FUNDS
FOR THEIR PAYmENI; PRESCRIBING OTHER MATTERS RELATING
THERETO; AND DECLARING AN EMERGENCY
`. "EEREAS, the City of Jacksonville, Arkansas, now owns a waterworks system and a sewer system, which
were acquired by the issuance of combined waterworks and sewer revenue bonds in the principal amount of
$100,000.00 with interest at the rate'of 3% per annum, under the authority of Acts Nos. 131 and 132 of the
Acts of the Geneaal.Assembly of the State of Arkansas of 1933, as amended, said bonds being dated {l l
January 1, 1947 and issued under Ordinance No. 27 of said City of Jacksonville, and of which issue there
are now outstanding bonds in the principal amount of $52,000.00; and
WHEREAS, the said waterworks and sewer systems are not being operated by J. V. Satterfield and R.
Redding Stevenson, d /b /a Jacksonville Water Company, under lease from said City of Jacksonville; and
WHEREAS, during the course of the operation of said systems by the said lessees, the latter have
made certain improvements and extensions to said systems, a brief description of such being the con-
struction of certain water distribution lines, including meters, sewer collection lines and the accumulation
of certain necessary automotive equipment and supplies such as pipe, fittings, etc., used in the servicing
and maintenance of said systems; and
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1 WHEREAS. the present municipally owned waterworks and sewer systems are wholly inadequate for the needs
of the inhabitants of the City, but that the acquisition of the improvements, extensions, properties and
equipment now owned by the said lessees, and the making of other needed improvements would sufficiently
improve and extend the said systems to adequately serve the needs of said City and the inhabitants thereof;
and
WHEREAS. the City Council has determined that it would be to the best interests of the said City and
the inhabitants thereof if said lease were terminated and said improvements, extensions, properties and
equipment owned by the said lessees be acquired by the said City, and other needed improvements made; end
WHEREAS, pursuant to said determination the said City has entered into negotiations with the said
lessees, which negotiations have resulted in a proposed agreement of purchase, which proposed agreement.
calling for a purchase price of $39.049.36 for all of said improvements, extensions, properties and
ecuipment, has been read, presented to and considered by the City Council of the said City of Jacksonville,
and a copy thereof is attached to the minutes of the meeting of. the City Council; and
WHEREAS. the City does not have the money to pay cash for said improvements and extensions, the City
Council had determined that it would be in the best interests of the City and the inhabitants thereof to
accomplish the necessary financing by issuing revenue bonds payable solely out of the net revenues derived
from the operation of the waterworks and sewer systems; and
WHEREAS, the City can refund the said $52,000.00 in outstanding bonds of the above mentioned, January 1,
1 947, issue of Combined Waterworks and Sewer Revenue Bonds, and accomplish the above described improvements
and extensions by the issuance of revenue bonds in the total principal amount of $115,000.00, and the City
Council has determined that it would be in the best interests of the City and the inhabitants thereof to
refund said outstanding bonds and accomplish said improvements and extensions by a single issue of revenue
bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF JACKSONVILLE, ARKANSAS:
Section 1. That it is the considered judgment of the members of the City Council that the said agreement
calling for the termination of the said lease and for the purchase by the City of the improvements,
extensions, properties and equipment of J. V. Satterfield and R. Redding Stevenson, d/b Jacksonville Water
Company, is a fair one and provides for a fair price, and, therefore, said contract is hereby approved and
Weyer and City Recorder are hereby authorized to execute said contract for and on behalf of the City
of Jacksonville.
Section 2. That under the authority of the constitution and laws of the State of Arkansas, particularly
Act No. 297 of 1937. as amended, Combined Waterworks and Sewer Refunding and Improvement Revenue Benda of
the City of Jacksonville, Arkansas, are hereby authorized and ordered issued in the total amount of One
Hundred Fifteen Thousand Dollars ($115,000.00) for the purpose of refunding the $52,000.00 in outstanding
bonds of the said January 1, 1947 issue of Combined Waterworks and Sewer Revenue Bonds of said City, and for
the purpose of financing the above set forth improvements and extentions to the waterworks and sewer systems ,
of said Town. Said bonds shall be dated December 1, 1952, and $52.000.00 of said bonds shall bear interest
at the rate of 3% per annum and *63,000.00 of said bonds shall bear interest at the rate of 3.880 per annum
from December 1, 1952, payable semi annually on the first day of June and December of each year, with the
firet interest pay:rent due on June 1, 1953, shall mature serially on December 1 of each year as reflected
in the Notice of Sale, the form of which is hereinafter set forth in Section 3, and shall be subject to the
conversion privileges and are callable as hereinafter set forth.
Section 3. That the bonds herein authorized and ordered issued shall be sold at publio sale with auction
bids. and the tiny, place and terms of the sale shall be as set forth in the following form of notice, which
notice shall be given by the Mayor by publishing the same, in substantially the form as hereinafter set forth.
in a daily paper having a general circulation in the City of Jacksonville, Arkansas.
1
3s "
NOTICE OF SALE OF BONDS
I -- The City of Jacksonville. Arkansas, hereby gives notice that it will sett to the highest bidder for
cash its proposed issue of $115.000.00 of Combined Waterworks and Sewer Refunding and Improvement Revenue
Bonds, to be dated December 1, 1952, $52.000.00 of bonds bearing interest at 3% per annum and $63,000.00
of bonds bearing interest at 3.886% per annum. payable semi- annually on the first day of June and December
of each year, the first interest payment on June 1, 1953. The bonds mature serially on December 1 of each
year as follows, but are callable as hereinafter set forth;
$2.000.00 in each of the years 1953. 1954, 1955 1956 and 1957
$2,500.00 in each of the years 1958, 1959. 1960, 1961 and 1962
$3,000.00 in each of the years, 1963. 19 1965 and 1966
$3 in 1967
$4,000.00 in each of the years 1968, 1969 and 1970
$4,500.00 in each of the years 1971, 1972 and 1973
$5,000.00 in each of the years 1974, 1975 and 1976
15,500.00 in each of the years 1977, 1978 and 1979
$6,000.00 in 1980
$6,500.00 in 1981
$7,500.00 in 1982
The bonds are issued for the purpose of refunding $52,000.00 of outstanding Combined Waterworks and
Sewer Revenue Bonds issued by the City and Dated January 1. 1947, and for the purpose of financing certain
improvements and extensions to the City's Waterworks and Sewer Systems. Said bonds are payable solely from
and secured by a pledge of the revenues of the Waterworks and Sewer Systems.
The purchaser shall have the right to convert the bonds into an issue of bonds bearing a lower rate or
rates of interest in accordance with the Universal Bond Values Tables upon such terms that the City will
receive no less and pay no more than it would receive and pay if the bonds were not converted.
The expenses of the issue, including the printing of the bonds, the Trustee's fee, the printing and
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publication expense. and the fee of Mehaffy, Smith & Williams, upon .hose approving opinion the bonds
`-' will be issued, will be furnished to the purchaser.
The bonds shall be callable for payment prior to maturity in inverse numerical order from surplus
waterworks and sewer revenues, at par and accrued interest, on any interest paying date. They shall be
callable on or after December 1, 1957, in inverse numerical order, at par and accrued inter4st, on any
interest paying date with funds derived from any source. Notice of the call for redemption shall be
published by the City Recorder once a week for two weeks before the date for such redemption 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, the first publication
to be at least fifteen days prior to the redemption date, and after the date fixed for redemption, each
bond so called shall pease to bear interest, provided funds for its payment are on deposit with the
paying agent at that time.
The sale will be held upon auction bids at 2 o'clock P.M. on the 10th day of November. 1952
in the City Hall in Jacksonville. Arkansas. Eachbidder will be required to file a certified cheok in
the amouny of $2,300.00 on a bank that is a member of the Federal Deposit Insurance Corporation. payable 19
to the City, to be kept as liquidated damages if the bidder is awarded the sale of the bonds and fails to
complete the purchase. Checks of unsuccessful bidders x111 be promptly returned.
The City reserves the right to reject any and all bids.
For further information, address the undersigned.
Given this -day of November, 1952.
CITY OF JACKSONVILLE, ARKANSAS
•
BY Y.! ..t n ..
T ,•
Section 4. The terms of the sale of the bonds and the conversion thereof, if any, shall be submitted
to an aped by the City Council. After approval by the Council, the bonds of the issue so approved
shall be executed on behalf of the City by the duly chosen, qualified, and acting Mayor and City Recorder
of Said City at the time of such execution, and shall have impressed thereon the seal of the City.
interest coupons attached to each of said bonds may have the facsimile signature of the Mayor lithographed
or printed thereon, which signature shall have the same force and effect as if he had personally signed
each of said coupons. The bonds and coupons shall be payable in such funds as at the time of the respective
payments are legal tender for the payment of debts due the United States of America at the office of the
union National Bank of Little Rodk, Arkansas. Tie bonds, together with interest thereon. shall be payable
solely out of the Waterworks and Sewer Revenue Bond Fund as hereinafter defined, and stall be a valid claim
of the holders thereof only against said fund. and shall not constitute an indebyedness of the City within
any constitutional or statutory limitation. The revenues pledged to the said fund are hereby specifically
pledged to the equal and ratable payment of the bonds issued hereunder and shall be used for no other
purpose than to pay the prinoapal and interest of said bonds, except as herein specifically provided.
Section 5. The bonds and coupons shall be in substantially the following form, and the said Mayor
and City Recorder are hereby expressly authorized and directed to make all recitals contained therein:
UNITED STATES OF AMERICA
I STATE OF ARKANSAS •
COUNTY OF PULASKI
CITY OF JACKSONVILLE
That the City of Jacksonville, in the County of Pulaski, and State of Arkansas, hereinafter termed
i City. hereby acknowledges itself to owe, and for value received promises to pay to bearer, solely out
of the special fund provided. as hereinafter set forth. the sum of
_ DOLLARS
in lawful money of the United States of America on the first day of December, 19 s and to pay solely
from said special fund, interest hereon from date until paid at the rate of
per centum ( %) per annum, payable semi- annually on the first day of June and December of each year.
commencing JUT on presentation and surrender of the annexed interest coupons as they severally
become due. Both principal and interest of this revenue bond shall be payable at the office of The Union
National Bank of Little Rock, Little Rock, Arkansas.
This is one of a series of ( ) revenue bonds
aggregating Dollars ($ ), numbered from
one (1) to ( ), inclusive, all of like tenor and effect except as to number,
denomination, rate of interest and maturity, and are issued for the purpose of refinancing legally binding
outstanding bonds of said City, and for the purpose of financing improvements and extensions to the
waterworks and sewer systems of said City.
This bond and the series of which it forms a part are issued pursuant to and in accordance with the
constitution and laws of the State of Arkansas, including particularly Act No. 297 of 1937, as emended,
and pursuant to resolutions and proceedings of the City Countil duly passed, and do not constitute an
indebtedness of the City within any constitutional or statutory limitation. Said bonds are not general
obligations of the City, but are special obligations payable solely and only from a fixed amount of the
net revenues derived by the City from the operation of its water works and sever systems, which amount
shall be sufficient to pay the principal of and interest on the bonds as the save become due and payable.
This amount has been duly set aside and pledged as a special fund for that purpose and identified as the
"Waterworks and Sewer Revenue Bond Fund ", created by Resolution No. 2, adopted by the City Council of said
City of Jacksonville. Arkansas on the 30th day of October. 1992, and in said resolution the said City
of Jacksonville has covenanted and agreed to fix and maintain rates for water and sewer services whidh
shall be sufficient at all times to provide for the payment of the reasonable expenses of operation
and maintenance of said systems, to provide for the payment of the principal of and interest on said bonds
as the same become due and payable, and to provide for the depreciation of said systems.
This bond is expressly made negotiable under said Act. No. 297 of 1937. as amended, and is issued with
the intent that the laws of the State of Arkansas shall overn the construction thereof.
The bonds of this issue shall be callable for payment prior to maturity in inverse numerical order
from surplus funds, at par and accrued interest, on any interest paying date. They shall be callable on
or after Deoember 1. 1957, in inverse numerical order, at par and accrued interest, on any interest paying
date with funds derived from any source. Notice of the call for redemption shall be published once a week for
two weeks 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, the first
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.
This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly
signed by The Union National Bank of Little Rock, Little Rock, Arkansas.
IT I5 HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions, and things required by the
Constitution and laws of the State of Arkansas 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, and that sufficient of the income and revenue which is deemed to be derived from the
operation of said waterworks and sewer systems has been pledged to and will be set aside into said special .t
fund for the payment of the principal of and interest on said bonds; and that the indebtedness represented
by this bond and the issue of which it forms a part does not exceed any constitutional or statutory limit-
ation.
IN WITNESS "HEREOF, the City of Jacksonville, Arkansas, by its City Council has caused this bond to
be signed by the Mayor and City Recorder thereof, and sealed with the corporate seal of said City of
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Jacksonville, and caused the coupons hereto attached to be executed by the facsimile signature of said
Mayor, all as of the first day of December, 1952.
CITY OF JACKSONVILLE. ARKANSAS
51 ).EJ' �.ti�
Y
ATTE
CITY REC.'.
(SEAL)
I I
37
-
(FORM OF COUPON)
No. $
June
On the first day of December, 19 , the City of Jacksonville. Pulaski County, Arkansas, unless the
bond to which this coupon is attached paid prior thereto. hereby promises to pay to bearer, solely out
of the special fund specified in the bond to which this coupon appertains,
Dollars ($ ) in lawful money of the United States of America
at the office of The Union National Bank of Little Rock, Little Rock, Arkansas. being interest then due
on its Waterworks and Sewer Refunding and Improvement Revenue Bond dated December 1, 1952, and numbered
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CITY OF JACKSONVILLE, ARKANSAS
BY
Ii lf l "h1X
MAYOR
On the baok of each of said bonds shall appear the following:
CERTIFICATE
The undersigned hereby certifies that this is one of a series of bonds, described herein, aggregating
$ . numbered from 1 to inclusive, all of like tenor and effect. exoept as to
number, denomination, rat of interest and maturity.
THE UNION NATIONAL BANK OF LITTLE ROCK,
LITTLE ROCK, ARKANSAS
BY
Little Rock, Arkansas
, 19
Section 6. That the rates and charges for services furnished by the waterworks and sewer systems,
heretofore fixed by the Council after due notice required by law, shall continue to be and are hereby
declared to be the rates and charges to be maintained and collected for services of said systems, and the
City hereby covenants and agrees with the holders of these bonds and the coupons appertaining thereto
that it will at all times maintain and collect such rates and charges for said services as will always
produce a $tinimam income sufficient to pay all proper and reasonable expenses of operation and maintenance
of said systems, to pay the principal of and interest on the outstanding bonds and the service charges in
connection therewith, and to- provide for the depreciation of said systems. In the event that the rates
and charges in effect at any time while any of these bonds are outstanding do not provide sufficient
revenue for the above set forth requirements, the City covenants and agrees to increase such rates and
charges to the extent necessary to provide sufficient revenue for such purposes.
No free service of any nature shall be rendered by the waterworks and sewer systems nor shall any
preferential rates be established for users of the same class. In the event the City or any department,
agency, instrumentality, officer or employee thereof, shall avail themselves of the facilities or services
provided by the said systems, the reasonable value of the services or facilities of the systems so
provided shall be paid by the City department, agency, or instrumentality thereof. The revenue so received
shall be deemed to be revenue derived from the operation of the said systems and shall be deposited and
accounted for in the same manner as other revenues from the said systems.
( Section 7. That the City Treasurer shall be the custodian of the gross revenues derived from the
waterworks and sewer systems and shall give bond for the faithful discharge of his duties as such custodian.
Such bond shall be in the amount of $10,000 and shall be approved by the Trustee. All moneys received by
-- the City Treasurer shall be deposited by him in such depository or depositories for the City as may be
lawfully designated from time to time, subject, however, to the giving of security by such depository as
mower hereafter may be required by law. All deposits made by the City Treasurer shall be in the name
of the City.
From and after delivery of any bonds issued under the provisions of this resolution, the City's r,
waterworks system and sewer system shall be continuously operated as revenue - producing undertakings, and
the income and revenues from such operation shall be set aside by the City Treasurer as and when collected `.
into a separate and special fund hereby created and designated "Waterworks and Sewer Revenue Fund ". and
shall be used and apportioned as hereinafter provided. 1
Section 8. Waterworks and Sewer Operation and Maintenance Fund. There is hereby created a special
fund to be known as the ' and Sewer Operation and Maintenance Fund, into which the City Treasurer
shall transfer and pay from the Waterworks and Sewer Revenue Fund on the first business day of each month
after the bones are delivered an amount sufficient to pay all reasonable and proper expenses of operation,
repair and maintenance of the system for such month and from which disbursements shall be made only for
that purpose. If in any month for any reason there be a failure to tran =fer and pay the required amm
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into said fund, then the amount of any deficiency shall be added to the amount otherwise required to be
transferred and pair into said nand in the next suoeeedi ; month. Fixed annual charges, such as insurance
and the cost of major repair and maintenance expenses, ray be coruuted and set Inc on an annual basis and
one - twelfth of the amount thereof may be accumulated in said operation and maintenance fund each month.
If any surplus shall be accunmlated in the Waterworks and Sewer Operation and Maintenance Fund over -
and above the mmount necessary to meet the requirements thereof during the remainder of the then current
_ fiscal year and the next ensuing fiscal year, suoh surplus may be transferred to the Waterworks and Sewer
Revenue Bond Fund; provided, however, that such transfer shall be in addition to all other payments
hereinafter required to be made into said Waterworks and Sewer Revenue Bond Fund.
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3
Section 9. Waterworks and Sever Revenue Bond Fund. (1) After making the monthly deposit in the
Waterworks and Sever Operation and Maintenance Fund, as hereinabove provided, the City Treasurer shall
transfer and pay from the Waterworks and Sewer Revenue Fund into a spacial fund which is hereby created
and designated 'waterworks and Sewer Revenue Bond Fund" the funds in the amounts /and at the time herein -
I after set forth in sub- section (2) for the purpose of providing funds for the payment of the principal
of and interest on the bonds herein authorized as they nature according to a schedule to be set up and
approved by the City Council after the terms of the sale of the bonds and the conversion, if any, have been
approved by the City Council, and ss a reserve for contingencies.
(2) There shall be paid by the City Treasurer from the Waterworks and Sewer Revenue Fund into the
Waterworks and Sewer Revenue Bond Fund, beginning on the first business day of each month after the bonds
are delivered and continuing on the first business day of each month thereafter until all outstanding bonds
authorized and ordered issued hereunder have been paid in full, or provision made for such payment, a sum
equal to one -fifth (1/5) of the next installment of interest and the paying agent's fee, and one tenth (1/10)
of the next installment of principal. and the paying agent's fee, until a total reserve of $7,500.00 has
been accumulated. When the required reserve has been accumulated the monthly payments into the Waterworks
and Sewer Revenue Bond Fund may be reduced to one - sixth (1/6) of the next installment of interest and the
paying agent's fee and one - twelfth (1/12) of the next installment of principal and the paying agent's fee;
but if the reserve become impaired, the payments of one -fifth (1/5) and one -tenth (1/10), respectively,
shall be resumed until the impairment is cured. The reserve may be invested in United States Government
obligations having maturity dates not exceeding ten (10) years from the date of purchase.
(3) If the revenues of the Rgterworks and Sewer Systems are insufficient to make the required payment
on the first business day of the following month into the Waterworks and Sewer Revenue Bond Fund, then the
amount of any such deficiency in the payment made shall be added to the amount otherwise required to be
paid into the waterworks and Sewer Revenue Bond Fund on the first business day of the next month. When the
moneys held in the Waterworks and Sever Revenue Bond Fund, including the reserve for contingencies, shall be
and remain sufficient to pay the principal of and interest on all of the then outstanding bonds of the issue
herein authorized, the Treasurer shall not be obligated to make any further payments into the Waterworks
and Sewer Revenue Bond Fund. If for any reason the Treasurer shall fail at any time to make any of such
payments into the Waterworks and Sewer Revenue Bond Fund, any sums than held as a reserve for contingencies
shall be used to the extent necessary in the payment of interest on and the prinoipal of all of the outstand-
ing bonds, but such reserve shall be reimbursed from the Waterworks and Sewer Revenue Fund from the first
revenues available for that purpose. All moneys in the Waterworks and Sewer Revenue Bond Fund shall be
used solely for the purpose of paying the interest on and principal of the bonds issued hereunder and the
paying agent's fees.
(4) It shall be the duty of the City Treasurer to withdraw from the Waterworks and Sewer Revenues
Bond Fund at least fifteen (15) days before the maturity date of any bond or interest coupon issued here-
_ under and to deposit with the Union National Bank of Little Rock, Little Rock, Arkansas, the paying agent,
an amount equal to the amount of such bond or coupon for the sole purpose of paying the same, together
with the paying agent's fee of one -eight (1 /8) of one percent (1 %) on prinoipal and one- fourth (1 /4) of
one peroent (1 %)on interest; and no withdrawal of funds from said Waterworks and Sewer Revenue Bond Fund
shall be made for any other purpose. Such deposit shall be at the sole risk of the City and shall not
operate as a payment of the bonds or coupons until so g plied.
Section 10. Waterworks and Sewer Depreciation Fund.
After payments have been made into the Waterworks and Sewer Operation and Maintenance Fund and the
Waterworks and Sewer Revenue Bond Fund, hereinabove provided for, the city Treasurer shall transfer and
pay from the Waterworks and Sewer Revenue Fund into a special fund which is hereby created and designated
"Waterworks and Sewer Depreciation Fund" on the first business day of each month a sum equal to three
per centum (3%) of the gross revenues of the waterworks and sewer systems. Moneys in the Waterworks and
Sewer Depreciation Fund shall be used solely for the purpose of paying the cast of replacements made
necessary by the depreciation of the said systems.
If any surplus shall be accumulated in the Waterworks and Sever Depreciation Fund over and above the
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amount which shall be necessary to defray the costa of the probable replacements during the then fiscal
year and the next ensuing fiscal year, such surplus may be transferred and paid into the Waterworks and
Sewer Revenue Bond Fund; provided, however, that such transfer into the Waterworks and Sewer Revenue Bond
Fund shall be in addition to all other payments hereinabove required to be made into said Waterworks and
Sewer Revenue Bond Fund.
Section 11. Payments from all funds created by this resolution shall be made by check or voucher
signed by two duly authorized persons and drawn on the depository with which the money in said fund shall
have been deposited. Each such check or voucher shall briefly specify the purpose of the expenditure.
C S ection 12. If any surplus shall be accumulated in the Tlatervmrka and Sewer Revenue Fund over and
above the amount which shall be necessary to service the different funds hereinabove created, such
surplus may be used to call the bonds of this issue prior to maturity in inverse numerical order as herein
set out, or for the payment of such additional bonds as are authorized to be iasued under and in accordance
with the provisions of this resolution hereinafter set forth in Section 15.,
Section 13. All bonds paid or paid or purchased, either at or before maturity. shall be cancelled when
such payment or purchase is made, together with all unmatured coupons appertaining thereto, and held by the
City Treasurer. All unpaid interest coupons maturing on or prior to the date of such payment or purchase
shall continue to be payable to the respective bearers thereof.
Section 14. The bonds authorized hereby shall be callable for payment prior to maturity according to
the terms se out in the bond form.
Section 15. As long as any of the bonds issued hereunder are outstanding, the City shall not issue any
bonds with a prior lien on the revenues of the waterworks and sewer systems, including the herein authorized
and any and all future improvements and extensions thereto.
- U`
Nothing in this resolution shall be construed to prevent the issuance by the City of additional bonds
to finance or pay the costa of betterments, improve ants and extensions to the said systems; provided, however,
the City shall not authorize or issue any such additional bonds ranking on a parity with the outstanding bonds
of this issue unless and until twe.o vua n �_._ a__ ... ._ _
of the maximum amount that will become due in any year for principal, interest and service charges on the
bonds then outstanding and the bonds then proposed to be issued.
The additional bonds, the issuance of which is restricted and conditioned by this section, shall be
understood to mean bonds payable from the income and revenues of the said systems on a parity with the
I bonds herein specifically authorized, and shall not be deemed to include other obligations the security
and source of payment of which are subordinate and subject to the priority of the bonds herein authorized
to be issued.
Section 16. The said waterworks and sewer systems shall be operated on a fiscal year basis beginning
December 1 and ending November 30.
Section 17. It is hereby covenattd and agreed by the City vrith the holder or holders of the bonds
herein authorized to be issued that it will perform all duties with reference to the said systems required
by the Constitution and laws of the State of Arkansas, and the City hereby irrevocably covenants, binds
((( obligates itself not to pledge, mortgage or otherwise encumber the said systems or any part thereof,
IC or any revenues derived from the operation of the said systems or any part thereof, except in the manner
herein specifically set forth, and that it will not sell, lease or otherwise dispose of the said systems
or any part thereof, except in the manner herein specifioally set forth, and that it will not sell, lease
r otherwise dispose of the said systems or any part thereof, unless and until the principal of and interest
on all of the bonds issued hereunder shall be paid in full, or unless and until provision shall have been
made for the payment of all of said bonds and the interest thereon in full, and the City further covenants
and agrees with the holder or holders of the bonds to maintain the said systems in a satisfactory condition
and to operate the same continously in an efficient and economioal er tIn order that the payment of the principal of and interest on the bonds shall be adequately secured,
the City and its proper officers, agents and employees, are hereby directed, and it shall be mandatory
upon them, at all times to perform the duties specified in Section 12 of Act 297 of 1937, pursuant to which
the bonds are issued, the performance of which duties is hereby declared to be of the essence of the contract
between the City and the holder or holders of the bonds and the coupons appertaining thereto and to be of
the same force and effect as if set forth in full herein. Provided, however, this section shall not prohibit'
the City from selling or otherwise disposing of said systems, or any portion thereof, if said sale or
disposition does not render insecure the payment of the principal and interest of all outstanding bonds
of this issue and said sale or disposition is at a fair and reasonable price and all of the proceeds of
_, said sale or disposition are applied to the retirement of the outstanding bonds of this issue. The moneys
received for any such sale or disposition shall be considered as surplus revenues within the provisions of
this resolution relating to the call of bonds prior to maturity. )
Section 18. In the event the City defaults in the payment of any bond or interest on any of the bonds
issued hereunder and such default shall continue for a period of thirty (30) days, or in the event the City,
its Council or its officers, agents, or employees shall fail or refuse to comply with the provisions of the
Act, or any provision oontained'in this resolution, any holder or holders of any of the bonds then outstand0
ing shall have the right in accordance with the provisions of said Act, to apply in an appropriate judicial
proceeding to any court of competent jurisdiction for the appointment of a receiver f or the said systems, to
perform such acts end in the manner as provided by the Act; provided, however, that no receiver shall have
any power to sell, assign mortgage or otherwise dispose of any assets of vhatever kind or character belong-
ing to the municipality and useful to the said systems, the authority of any such receiver being limited to
the operation and maintenance of the said systems.
Section 19. No remedy conferred by this resolution upon any holder or holders of the bonds ie intended
to be exc usive of any other remedy, but each such remedy is cumulative and in addition to every other
remedy and may be exercised without exhausting and without regard to any other remedy conferred by this
resolution or said Act, or by any other law. No waiver of any default or breach of duty or contract by any
holder of the bonds shall extend to or shall affect any subsequent default or breach of duty or contract or
shall impair any rights or remedies thereon. No delay or omission of any bondholder to exercise any right
or power accrued upon any default shall impair any such right or power or shall be construed to be a waiver
of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the
holder of the refunding bonds may be enforced and exercised from time to time and as often as may be deemed
expedient. In case any suit, action or proceed+.n to enforce any ri „ht or exercise any remedy shall be
bray, ht or taken and t n discontinued or abandoned, or shill be determined adversely to the holder or
holders of the refunding bonds, then and in every such case the City and such holder or holders shall be
restored to their former s - 'tions and rights and remedies as if no such suit, action or proceedings had
been brought or taken.
Section 20. The City covenants and agrees that it will maintain and operate the systems in an efficient
manner and at a reasonable cost. So long as any of the bonds are outstanding, the City agrees to maintain
fire, lightning and tornado insurance on the said systems in an amount which normally would be carried by a
private company engaged in a similar type of business. These insurance policies are to taken with companies
approved by the Trustee, are to carry a clause raking them payable to the Trustee as its interest may appear,
are to be kept continuously in force, and are to be placed in the custody of the Trustee. In the event of '
loss, the proceeds of such insurance shall be applied solely towards the reconstruction, replacement or repair
of the system. In such event, the City will, with reasonable promptness, cause to be commenced and completed
the reconstruction, replacement and repair. Nothing herein shall be construed as requiring the City to
expend any funds for premiums on its insurance which are derived from sources other than the operation of the
systems, but nothing herein shall be construed as preventing the City from doing so.
Section 21. The City shall keep proper books sf eccounts and records (separate from ell other records
and accounts ) in which complete and correct entries shall be made of all transactions relating to the
operation of the " and Setter Systems and such books shall be available for inspection by the holder
of any of the bonds at reasonable times and under reasonable circumstances. The City- agrees to have these
records audited by an independent certified accountant at least once each year, and a Dopy of the audit
shall be delivered to the Trustee and to the original purchaser of the bonds and made available to inter-
ested bondholders. In the event the City fails or refuses to make the audit, the Trustee, or any holder
of the bonds may have the audit made, and the cost thereof shall be charged against the operation and
Maintenance Fund of the said systems.
-- Section 22. ihenever the word "Trustee " is used in this resolution, it shall refer to the Union
National Bank of Little Rock, Arkansas. The Trustee shall be responsible only for wilful wrong in the
execution of its trust. The recitals in this resolution 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
v,
it shall have been notified in .1 +;,,, e-A _T_„ . _ -
- a�`_I
Section 23. The City hereby expressly reserves the right to create a commission for the purpose
of operating and managing said systems, and in the event that it elects to create such a commission, then
the control and management of the Works shall be lodged ins aid commission from and after its creation.
Section 24. After the bonds herein authorized to be issued have been executed by the Mayor and City
Recorder and the seal of the City impressed, as herein provided, they shall be delivered to The Union
National Bank of Little Rock, Arkansas, Trustee, which shall authenticate them and deliver them to the
— purchaser upon delivery to said Trustee of all the outstanding Combined Waterworks and Selmer Revenue 3%
Bonds, dated January 1, 1947, issued by the said City of Jacksonville (at the time of issuance the said
City was an Incorporated Town), with all interest coupons appertaining thereto attached maturing on and
after January 1, 1953, or an escrow deposit made with the Trustee for the redemption of all of said outstand-
ing bonds on January 1, 1953, the next interest paying date on said issue, and the payment of the balance
of the purchase price to the Trustee, plus accrued interest from December 1, 1952. When said outstanding
bonds of the January 1, 1947 issue are delivered to the Trustee, or obtained by redemption under the said
escrow deposit, the Trustee shall mark said .bonds and the coupons thereto attaohed "Refunded and Canceled ",
and forward the same to the City Recordet to be. held by him subject to the Airther orders of the Council.
The Trustee shall remit, from the said balance of the purchase price, the amount of the purchase price
of the improvements, extensions, properties and equipment of J. V. Satterfield and R. Redding Stevenson,
d/b /a Jacksonville Rater Company, to the said J. V. Satterfield and R. Reddinr, Stevenson, or their order.
The exact amount to he so remitted shall be set forth in Letter of Instructions to be subsequently furnished
the Trustee by the City.
The Trustee shall remit the balance of the purchase price and the accrued interest to the City Treasurer,
and the City Treasurer shall deposit the accrued interest in the Waterworks and Sewer Revenue Bond Fund and
shall deposit the remainder in trust in a Bank that is a member of the Federal Deposit Insurance Corporation,
which shall be used for the additional improvements to the said systems. ilthdrawals from s aid deposit
shall be as herein specified for withdrawals from the 9arious funds herein above created. The holders of
the bonds shall not be responsible for the use of proceeds by the City.
Section 25. All ordinances or Resolutions, or parts thereof, in conflict herewith are hereby repealed.
Section 26. If any section, paragraph, clause or proviso of this Resolution shall be held invalid,
the invalidity of said section, paragraph, clause or proviso shall not affect any of the remaining provisions
-- of this Resolution.
Section 27. It is hereby ascertained and declared that the herein authorized improvements and exten-
sions to the Waterworks and Sewer Systems of the City of Jacksonville, Arkansas must be made immediately
in order to adequately protect the health and lives of the inhabitants thereof and their property and that
it is to the immediate advantae of said City and its inhabitants that its outstanding Combined Waterworks
and Sewer Revenue 3% Bonds be refunded. It is, therefore, declared that an emergency exists, that this
Resolution is necessary for the immediate preservation of the public peace, health and safety, and that
this Resolution shall take effect and be in force from and after its passage.
ADOPTED: OCTOBER 30 , 1952.
APPROVED: . e _ _ _ „"
W. F. CRAizn (SIBSED)
MAYOR
i
ATTEST:
RIII /�
D 'J. ADAMS (SITTER)
p)
CITY RECORDER - -
I SEAL
1