Loading...
0152 / .• '' • • 1 . ORDINANCE NO. /,5'2- AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM OF THE CITY OF JACKSONVILLE, ARKANSAS; AUTHORIZING THE ISSUANCE OF WATERWORKS AND SEWER REVENUE BONDS; PRESCRIBING OTHER NATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS the City Council of the City of Jacksonville, Arkansas (called "City ") has determined that extensions, betterments and improvements should be constructed to the Waterworks and Sewer System (the Waterworks and Sewer facilities are operated as one system and. will be herein called "System "), in order to make the facilities of the System adequate for the needs of the City and its inhabitants; and WHEREAS the City has had plans and estimates prepared by Marian L. Crist & Associates, Consulting Engineers,. Little Rock, Arkansas, which describe the proposed extensions, betterments and improvements (herein called "improvements "), and a copy of which are on file in the office of the City Clerk, where it may be inspected by any interested person; and WHEREAS in connection with financing the costa the improve- ments the City has determined to refund all of the outstanding bonds of an issue of the City designated "Waterworks and Sewer Refunding and Improvement Revenue Bonds ", dated December 1, 1952, and to accom- plish said refunding and to pay the cost to the City of the improve- ments (a grant is being obtained from an agency of the Government of the United States of America which will be used in addition to the proceeds of bonds to finance the improvements), the City proposes to issue a total of Seven Hundred Thirty Thousand Dollars ($730,000) Page 2 in Waterworks and Sewer Revenue Bonds, in two series, designated Series A and Series B, as hereafter set forth; and WHEREAS the City has duly advertised the public sale of Waterworks and Sewer Revenue Bonds, Series A, in the principal amount of $469,000 (called "Series A Bonds ") for the purpose of accom- i ! plishing the refunding of said December 1, 1952 Bonds and paying a portion of the cost of the improvements to the City, and has duly offered for public sale Waterworks and Sewer Revenue Bonds, Series B, in the principal amount of $261,000 (called "Series B Bonds ") for the purpose of financing the remaining cost to the City of said im- p provements; and WHEREAS Stephens, Inc., of Little Rock, Arkansas, submitted the best bid for the Series A Bonds and the best bid for the Series B Bonds at said public sale, which in the case of the Series A Bonds was a bid of par and accrued interest for bonds bearing interest at the ratesof 2 3/4% per annum, 37. per annum, and 4 1/4% per annum; and which in the case of the Series B Bonds was a bid of par and accrued interest for bonds bearing interest at the rate of 4 1/4% per annum; and WHEREAS pursuant to the right set forth in the notice of the public sale of the bonds the said purchaser" has elected to con- vert the Series A'Bonds to an issue in the principal amount of $499,500 bearing interest at the rates of 2 3/4% per annum, 3% per annum, 3 1/47. per annum, 3 1/2% per annum, 3 3/4% per annum and 47. per annum, and has elected to convert the Series B Bonds to an issue in the principal amount of $281,500 bearing interest at the rates of 1 Page 3 37. per annum, 3 1/4% per annum, 3 1/2% per annum, 3 3/47. per annum and 47. per annum, which conversions have been examined by the City Council and have been found to be proper and by virtue of which the City will pay no more and receive no less than it would have paid and received had the bonds of each series not been converted; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL of the City of Jacksonville, Arkansas: Section 1. That the improvements be constructed. Section 2. That the sale of the Series A Bonds and the Series B Bonds to the purchaser and for the price set forth in the preambles hereof and the conversion of the Series A Bonds and of the Series B Bonds, as set forth in the preambles hereof, be,and the same hereby are, authorized, approved and confirmed. Section 3. That there are hereby authorized and ordered issued bonds of the City as follows: (a) City of Jacksonville, Arkansas Waterworks and Sewer Revenue Bonds, Series A, in the principal amount of $499,500, dated June 1, 1964, bearing interest at the rates hereafter set forth, with the interest payable semiannually on June 1 and December 1 of each year, commencing December 1, 1964, in the denomination of $1,000 each, except Bond No. 46, which is in the denomination of $500, numbered consecutively from one (1) to five hundred (500), inclusive, and maturing on June 1 in each of the years 1965 to 1994, inclusive, as hereafter set forth. The Series A Bonds shall bear interest as follows: Bonds Nos. 1 to 27, inclusive, being the bonds maturing in the years 1965 to 1967, inclusive, shall bear interest at the rate 1 Page 4 of 2 3/4% per annum; Bonds Nos. 28 to 102,inclusive, being the bonds maturing in the years 1968 to 1974, inclusive, shall bear interest at the rate of 3% per annum; Bonds Nos. 103 to 139, inclusive, being the bonds maturing in the years 1975 to 1977,; inclusive, shall bear interest at the rate of 3 1/4% per annum; Bonds Nos. 140 to 184, inclusive, being the bonds maturing in the years 1978 to 1980, inclusive, shall bear interest at the rate of 3 1/2% per annum; Bonds Nos. 185 to 318, inclusive, being the bonds maturing in the years 1981 to 1987, inclusive, shall bear interest at the rate of 3 3/4% per annum; and Bonds Nos. 319 to 500, inclusive, being the bonds maturing in the years 1988 to 1994, inclusive, shall bear interest at the rate of 4% per annum. (b) City of Jacksonville, Arkansas Waterworks and Sewer Revenue Bonds, Series B, in the principal amount of $281,500, dated June 1, 1964, bearing interest at the rates hereafter set forth, with interest payable semiannually on June 1 and December 1 of each year, in the denomination of $1,000 each, except Bond No. 5, which is in the denomination of $500, numbered consecutively from one (1) to two hundred eighty -two (282), inclusive, and maturing on June 1 in each of the years 1965 to 1994, inclusive, as hereafter set forth. The Series 8 Bonds shall bear interest as follows: Bonds Nos. 1 to 53, inclusive, being the bonds matur- ing in the years 1965 to 1974, inclusive, shall bear interest at the rate of 37. per annum; Bonds Nos. 54 to 74, inclusive, being the bonds maturing in the years 1975 to 1977, inclusive, shall bear interest at the rate of 3 1/4% per annum; Bonds Nos. 75 to Page 5 99, inclusive, being the bonds maturing in the years 1978 to 1980, inclusive, shall bear interest at the rate of 3 1/2% per annum; Bonds Nos. 100 to 177, inclusive, being the bonds maturing in years 1981 to 1987, inclusive, shall bear interest at the rate of 3 3/4% per annum; and Bonds Nos. 178 to 282, inclusive, being the bonds maturing in the years 1988 to 1994, inclusive, shall bear interest at the rate of 4% per annum. Whenever the unqualified word "bonds" appears in this Ordinance, the reference shall be to both the Series A Bonds and the Series B Bonds. The bonds are issued under the authority of the Constitution and laws of the State of Arkansas, including par- ' ticularly Act 131 of the Acts of Arkansas for the year 1933, as amended, Act 132 of the Acts of Arkansas for the year 1933, as amended, and Act 297 of the Acts of Arkansas for the year 1937, as amended, and the decision of the Supreme Court of the State of Arkansas in the cave of City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d 12. The bonds shall be negotiable coupon bonds, payable to bearer, and the interest shall be evidenced by interest coupons. Principal and interest shall be payable in lawful money of the United States of America upon presentation of the bond or proper coupon at the office of Union Planters National Bank, Memphis, Tennessee. 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 bonds and the interest coupons may be executed by the facsimile signature of the Mayor lithographed or printed thereon, which facsimile signature, if used, shall have the same force and Page 6 effect as if the Mayor had personally signed each of said bonds and coupons, but the bonds must be executed by the manual signature of the City Clerk. Section 4. The principal of and interest on the bonds shall be payable out of the "Waterworks and Sewer Revenue Bond Fund" created by Section 9 of Resolution No. 2, passed and approved on October 30, 1952, and presently being maintained, and shall be a valid claim of the holders thereof only against such fund and the amount of revenues pledged to such Fund. The bonds are not general obligations of the City and do not constitute an indebtedness of the City within any constitutional or statutory limitation. The bonds are special obligations payable solely from revenues derived from the operation of the Waterworks and Sewer System. When issued" and delivered the Series A Bonds and the Series B Bonds (except as here- after provided in the case of the Series B Bonds) are to rank on a parity of security with the outstanding Waterworks and Sewer Revenue Bonds of the City dated May 1, 1957, the outstanding Waterworks and Sewer Revenue Bonds of the City dated January 1, 1960, and the out- standing Waterworks and Sewer Revenue Bonds of the City dated June 1, 1961. Section 5. That the bonds and coupons shall be in sub- stantially the following form, and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals con- tained therein, with necessary insertions in the bond form to reflect the details of the particular series (that is, Series A or Series B): Page 7 UNITED STATES OF AMERIC& STATE OF ARKANSAS COUNTY OF PULASKI CITY OF JACKSONVILLE WATERWORKS AND SEWER REVENUE BOND, SERIES No. $ KNOW ALL MEN BY THESE PRESENTS: That the City of Jacksonville, County of Pulaski and State of Arkansas, acknowledges itself to owe, and, for value received, hereby promises to pay to bearer solely from the special fund provided as hereafter set forth the principal sum of DOLLARS in lawful money of the United States of America on the first day of June, 19 , and to pay solely from said special fund interest hereon at the rate of per centum ( 7.) per annum, from date until paid, semiannually on June 1 and December 1 of each year, com- mencing December 1, 1964, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this bond are hereby made payable at Union Planters National Bank, Memphis, Tennessee (the "Trustee" and the "Paying Agent "). This bond is one of a series of ( ) bonds, aggregating Dollars ($ ), dated June 1, 1964,numbered consecutively from one (1) to ( ), inclusive, all of like tenor and effect except as to number, denomination, rate of interest, maturity and right of prior redemption, and are issued for the purpose of (refunding all of the outstanding Page 8 bonds of an issue of Waterworks and Sewer Revenue Bonds of the City dated December 1, 1952 and) financing a portion of the cost of constructing extensions, betterments and improvements to the Waterworks and Sewer System of the City (the Waterworks and Sewer facilities are operated as one system and are referred to herein as the "System "). The remainder of the cost of financing the exten- sions, betterments and improvements to the System is being obtained by the issuance of a series of Waterworks and Sewer Revenue Bonds, designated Series —, and by a grant from an agency of the Govern- ment of the United States of America. This bond and the series of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, particularly Act 131 of the ,Acts of Arkansas for the year 1933, as amended, Act 132 of the Acts of Ark- ansas for the year 1933, as amended, and Act 297 of the Acts of Arkansas for the year 1937, as amended, and the decision of the Supreme Court of the State of Arkansas in the case of City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d 12, and pursuant to an ordinance of the City Council of the City duly adopted and approved, 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 revenues derived from the operation of the System. The charge and lien of the bonds of this series is on a parity with the charge and lien of the series of bonds issued by the City under even date herewith, designated Series , and on a parity with the charge and lien of the Waterworks and Sewer Revenue Bonds of the City dated May 1, 1957 and issued under Page 9 Ordinance No. 89 of the ordinances of the City, the outstanding Waterworks and Sewer Revenue Bonds of the City dated January 1, 1960 and issued under Ordinance No. 103 of the ordinances of the City, and the outstanding Waterworks and Sewer Revenue Bonds of the City dated June 1, 1961 and issued under Ordinance No. 121 of the ordinances of the City. References in this bond to the unqualified word "bond" or "bonds" shall mean the bonds of this series (being Series ), and the bonds of the series of even date herewith designated Series _ The bonds are authorized by and issued under Ordinance No, of the ordinances of the City, duly passed and approved on the day of , 1964, to which ordinance reference may be made for a detailed statement of the terms and conditions upon which the bonds are issued, of the restrictions and conditions for the issuance of parity bonds, of the nature and extent of the security, and of the rights and obligations of the City, the Trustee and the bondholders. Provision has been made in said ordinance for a suffi- cient amount to be paid into the special fund presently being main- tained by the City, designated "Waterworks and Sewer Revenue Bond Fund" (which special Fund was created by Section 9 of Resolution No. 2, passed and approved October 30, 1952) out of the revenues of the System to provide for the payment of the principal of, interest on and Paying Agent's fees in connection with the bonds as the same become due. The City has fixed and has covenanted to maintain rates for the services and facilities of the System which shall be suffi- cient at all times to produce revenues adequate in amount for the proper and reasonable expenses of operation and maintenance of the Page 10 System, to comply with all covenants concerning the maintenance of rates at specified levels made in connection with the issuance of the above referred to May 1, 1957 Bonds, January 1, 1960 Bonds and June 1, 1960 Bonds, and to provide for the payment of the principal of, interest on and Paying Agent's fees in connection with these bonds. There is a statutory mortgage lien upon the extensions, betterments and improvements to the waterworks facilities constructed from the proceeds of the bonds, which shall exist in favor of the holders of the bonds, and each of them, and to and in favor of the holders of the coupons attached to the bonds, and such extensions, betterments and improvements shall remain subject to said statutory mortgage lien until payment in full of the principal of, and interest on the bonds, provided, however, that such statutory mortgage lien shall be interpreted according to the decision of the Supreme Court of the State of Arkansas in City of Harrison v. Braswell, supra. The bonds are expressly made negotiable under the laws of the State of Arkansas and are issued with the intent that the laws of the State of Arkansas shall govern the construction thereof. The bonds will be callable for payment prior to maturity, at the option of the City, in whole or in part, in inverse numerical order at a price of par and accrued interest as follows: from surplus proceeds of the sale of the bonds not needed for constructing the extensions, betterments and improvements and accomplishing the re- funding of the bonds being refunded and from surplus waterworks and sewer revenues (as defined in the ordinance authorizing the bonds, Page 11 referred to above) on any interest paying date; from funds from any source on any interest paying date on and after June 1, 1972. 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 Baying Agent at that time. This bond shall not be valid until it shall have been authenticated by the Certificate hereon duly signed by the Trustee. IT 1S HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and be per- formed, precedent to and in the issuance of the bonds, have existed, have happened and have been performed in due time, form and manner, as required by law; that the indebtedness represented by the bonds does not exceed any constitutional or statutory limitation; and that suf- ficient of the income and revenue which is deemed to be derived from the operation of the System has been pledged to and will be set aside . into said special Fund for the payment of the'principal of and interest on the bonds. ' IN WITNESS WHEREOF, the City of Jacksonville, Arkansas, by its City Council, has caused this bond to be signed by the Mayor and City Clerk thereof and sealed with the corporate seal of the City, Page 12 with either the manual or facsimile signature of the Mayor, but with the manual signature of the City Cle±, and has caused the coupons hereto attached to be executed by the facsimile signature of the Mayor, all as of the first day of June, 1964. CITY 0 JA 0 , ARBOOBAS _ l yo Cit Clerk (SEAL) Page 13 (Fora 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 is paid prior thereto, hereby promises to pay to bearer, solely out of the special fund specified in the bond to which this coupon is attached, DOLLARS in lawful money of the United States of America at the office of Union Planters National Bank, Memphis, Tennessee, being six (6) months' interest then due on its Waterworks and Sewer Revenue Bond, Series , dated June 1, 1964 and numbered . CITY OF JACKSONVILLE, ARKANSAS By (facsimile signature) Mayor On each bond shall appear the following: CERTIFICATE Union Planters National Bank, Memphis, Tennessee hereby HeY certifies that this is one of a series of bonds described herein re designated Series , aggregating $ numbered consecu- g tively from 1 to , , inclusive, all of like tenor and effect except as to number, denomination, rate of interest, maturity and right of prior redemption. UNION PLANTERS NATIONAL BANK MEMPHIS, TENNESSEE By (Authorized Signature) Page 14 Section 6. That the provisions, covenants, undert and stipulations for the operation of the System and for the imposi- tion, collection and application of the revenues from such operation as set forth in Resolution No. 2, passed and approved October 30, 1952, and Resolution No. 3, passed and approved November 11, 1952, in Ordinance No. 89, passed and approved April 18, 1957, in Ordinance No. 103, passed and approved January 4, 1960, and in Ordinance No. 121, passed and approved June 8, 1961, as said ordinances may have been heretofore or may be hereafter amended, shall inure and apper- tain to the bonds hereby authorized to the same extent and with like force and effect as if herein set out in full, except only insofar as the same may be inconsistent with the provisions of this Ordinance. In this regard, it is understood that the bonds dated December 1, 1952 issued under Resolution No. 2 and Resolution No. 3, referred to above, are being refunded by the bonds of this issue, and it is possible that the bonds dated May 1, 1957, issued under Ordinance No. 89, the bonds dated January 1, 1960, issued under Ordinance No. 103, and the bonds dated June 1, 1961, issued under Ordinance No. 121, may be paid and retired prior to the payment of the out- standing bonds of this issue, but that nevertheless the said appli- cable 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 said resolutions and ordinances shall continue in force and effect and shall inure and appertain to the bonds hereby authorized until their payment as above set forth. Page 15 Section 7. That the required monthly deposits into the Waterworks and Sewer Revenue Bond Fund, created by Section 9 of said Resolution No. 2, and presently being maintained, shall be increased in an amount necessary to provide funds for the payment of the principal of and interest on the Series A Bonds and the Series B Bonds as they mature, according to the following schedules, and to increase the amount in the reserve for contingencies to the total amount of $ 71,000.00 . Page 16 SERIES A SCHEDULE YEAR BOND NOS. PRINCIPAL INTEREST TOTAL. JUNE 1 DECEMBER 1 1964 $ $ $9,030.00 $ 9,030.00 1965 1 - 9 9,000 9,030.00 8,906.25 26,936.251 1966 10 - 18 9,000 8,906.25 8,782.50 26,688.75 1967 19 - 27 9,000 8,782.50 8,658.75 26,441.25 1968 28 - 36 9,000 8,658.75 8,523.75 26,182.50 1969 37 - 46 9,500 8,523.75 8,381.25 26,405.00 1970 47 - 56 10,000 8,381.25 8,231.25 26,612.50 1971 57 - 67 11,000 8,231.25 8,066.25 27,297.50 1972 68 - 78 11,000 8,066.25 7,901.25 26,967.50 1973 79 - 90 12,000 7,901.25 7,721.25 27,622.50 1974 91 - 102 12,000 7,721.25 7,541.25 27,262.50 1975 103 - 114 12,000 7,541.25 7,346.25 26,887.50 1976 115 - 126 12,000 7,346.25 7,151.25 26,497.50 1977 127 - 139 13,000 7,151.25 6,940.00 27,091.25 1978 140 - 153 14,000 6,940.00 6,695.00 27,635.00 1979 154 - 168 15,000 6,695.00 6,432.50 28,127.50 1980 169 - 184 16,000 6,432.50 6,152.50 28,585.00 1981 185 - 201 17,000 6,152.50 5,833.75 28,986.25 1982 202 - 218 17,000 5,833.75 5,515.00 28,348.75 1983 219 - 236 18,000 5,515.00 5,177.50 28,692.50 1984 237 - 255 19,000 5,177.50 4,821.25 28,998.75 1985 256 - 275 20,000 4,821.25 4,446.25 29,267.50 1986 276 - 296 21,000 4,446.25 4,052.50 29,498.75 1987 297 - 318 22,000 4,052.50 3,640.00 29,692.50 1988 319 - 341 23,000 3,640.00 3,180.00 29,820.00 1989 342 - 365 24,000 3,180.00 2,700.00 29,880.00 1990 366 - 390 25,000 2,700.00 2,200.00 29,900.00 1991 391 - 416 26,000 2,200.00 1,680.00 29,880.00 1992 417 - 443 27,000 1,680.00 1,140.00 29,820.00 1993 444 - 471 28,000 1,140.00 580.00 29,720.00 1994 472 - 500 29,000 580.00 29,580.00 Page 17 SERIES B SCHEDULE YEAR BOND NOS. PRINCIPAL INTEREST TOTAL JUNE 1 DECEMBER 1 1965 1 - 5 $4,500 $10,257.50 $5,061.25 $19,818.75 1966 6 - 10 5,000 5,061.25 4,986.25 15,047.50 1967 11 - 15 5,000 4,986.25 4,911.25 14,897.50 1968 16 - 20 5,000 4,911.25 4,836.25 14,747.50 1969 21 - 25 5,000 4,836.25 4,761.25 14,597.50 1970 26 - 30 5,000 4,761.25 4,686.25 14,447.50 1971 31 - 35 5,000 4,686.25 4,611.25 14,297.50 1972 36 - 41 6,000 4,611.25 4,521.25 15,132.50 1973 42 - 47 6,000 4,521.25 4,431.25 14,952.50 1974 48 - 53 6,000 4,431.25 4,341.25 14,772.50 1975 54 - 60 7,000 4,341.25 4,227.50 15,568.75 1976 61 - 67 7,000 4,227.50 4,113.75 15,341.25 1977 68 - 74 7,000 4,113.75 4,000.00 15,113.75 1978 75 - 82 8,000 4,000.00 3,860.00 15,860.00 1979 83 - 90 8,000 3,860.00 3,720.00 15,580.00 1980 91 - 99 9,000 3,720.00 3,562.50 16,282.50 1981 100 - 108 9,000 3,562.50 3,393.75 15,956.25 1982 109 - 118 10,000 3,393.75 3,206.25 16,600.00 1983 119 - 129 11,000 3,206.25 3,000.00 17,206.25 1984 130 - 140 11,000 3,000.00 2,793.75 16,793.75 1985 141 - 152 12,000 2,793.75 2,568.75 17,362.50 1986 153 - 164 12,000 2,568.75 2,343.75 16,912.50 1987 165 - 177 13,000 2,343.75 2,100.00 17,443.75 1988 178 - 190 13,000 2,100.00 1,840.00 16,940.00 1989 191 - 204 14,000 1,840. 00 1,560.00 17,400.00 1990 205 - 218 14,000 1,560.00 1,280.00 16,840.00 1991 219 - 233 15,000 1,280.00 980.00 17,260.00 1992 234 - 249 16,000 980.00 660.00 17,640.00 1993 250 - 265 16,000 660.00 340.00 17,000.00 1994 266 - 282 17,000 340.00 17,340.00 Page 18 To this end the additional monthly deposit shall be one -fifth (1 /5) of the next installment of interest and one -tenth (1/10) of the next installment of principal, plus an amount sufficient to provide for the Paying Agent's fees, on all outstanding Series A Bonds and Series B Bonds until the reserve for contingencies has been increased to the sum of $ 71,000.00, and thereafter the required additional monthly deposit shall be one -sixth (1/6) of the next installment of interest and one - twelfth (1/12) of the next install- ment of principal, plus an ammount sufficient to provide for the Paying Agent's fees, on all outstanding Series A Bonds and Series B Bonds issued hereunder. The City Treasurer is directed to withdraw from the Waterworks and Sewer Revenue Bond Fund a sufficient time ahead of each interest and principal payment date the amount necessary to cover interest, principal and Paying Agent's fees requirements and deposit said funds with the Paying Agent for the purpose of paying the same. Section 8. (1) That the City has heretofore fixed rates to be charged for the services of the System by Ordinance No. 149, adopted and approved on the 24th day of February, 1964, to which reference is hereby made for the applicable rates and other provisions pertaining thereto, which schedule of rates and provisions are hereby ratified, confirmed and continued. The City hereby covenants and agrees with the holders of the bonds and the coupons that said rates for the services and facilities of the System shall be sufficient at all times to provide for the proper and reasonable expenses of opera- tion and maintenance of the System, fully comply with all covenants Page 19 concerning the maintenance of rates at specified levels made with reference to the outstanding May 1, 1957 Bonds, January 1, 1960 Bonds and June 1, 1961 Bonds and provide for the payment of the principal of, interest on and Paying Agent's fees in connection with these bonds as the same become due, and the City covenants and agrees that said rates shall, if and as often as necessary, be increased in an amount sufficient to promptly provide total revenues to meet the above specified purposes. References herein to the phrase "said rates" shall include not only the schedule of rates referred to above but all outstanding contracts covering special uses, including, without limitation, a contract with the United States Government covering services of the System furnished the Air Force Base near the City, which provisions of said special contracts are incorporated herein by reference. (2) That the City covenants and agrees with the holders b of the bonds and coupons that none of the servi ces afforded by the System shall be furnished without a charge being made therefor. In the event that the City or any department, agency or instrumentality thereof shall avail itself of the facilities and services afforded by the System, the reasonable value of the services or facilities so afforded shall be charged against the City or such department, agency or instrumentality and shall be paid for as the charges therefor accrue. The revenues so received shall be deemed to be revenues derived from the operation of the System and shall be used and accounted for in the same manner as the other revenues derived from the operation of the System; provided, however, that nothing herein Page 20 shall be construed as requiring the City or any department, agency or instrumentality thereof to avail itself of the facilities or services afforded by the System. Section 9. Except as hereafter expressly provided in this Section, the Series A Bonds and the Series B Bonds shall rank on a parity of security with each other, and the bonds of both series shall rank on a parity of security with the above referred to out- standing May 1, 1957 Bonds, January 1, 1960 Bonds and June 1, 1961 Bonds. In this regard, there has been prepared and filed with the City a statement by an Independent Certified Public Accountant which reflects that the revenues of the System for the last fiscal year were sufficient in amount to meet the requirements of said above referred to Resolution No. 2, Ordinance No. 89, Ordinance No. 103, and Ordinance No. 121 for the issuance of parity bonds, which state- ment is on file with the City Clerk and may be examined by any interested person, and the City hereby determines and declares that said requirements for the issuance of parity bonds have been fully satisfied and complied'with insofar as the Series A Bonds are con- cerned. In this regard, it is contemplated that the Series A Bonds only will be immediately issued and delivered and that the Series B Bonds will be subsequently issued and delivered. Therefore, there must be obtained and filed with the City Clerk and with the Trustee a copy of the required statement by the Independent Certified Public Accountant that the revenues for the then preceding fiscal year have been sufficient to meet the provisions for the Series B Bonds to rank on a parity with the Series A Bonds and all of said previously issued and outstanding Waterworks and Sewer Revenue Bonds. If said Page 21 statement by the Independent Certified Public Accountant is filed with the City Clerk and with the Trustee so certifying, the Trustee shall be entitled to rely thereon and shall authenticate and deliver the Series B Bonds to the purchaser, and said Series B Bonds shall rank on a parity of security as aforesaid. If said statement is not filed and the Trustee is directed to deliver the Series B Bonds, then the Series B Bonds and the lien and charge of the Series B Bonds on the revenues of the System shall be subordinate and inferior to the lien and charge on the revenues of the System in favor of the Series A Bonds and said previously issued Waterworks and Sewer Revenue Bonds, and, in that event, appropriate changes shall be made in the bond form applicable to the Series B Bonds to reflect said subordinate and inferior position. Section 10. That the bonds issued hereunder shall be callable for payment prior to maturity in accordance with the terms set out in the bond form. Section 11. That the requirements for parity bonds shall be the same as set forth in Section 15 of said Resolution No. 2, with the reference to "outstanding bonds of this issue" to include all outstanding parity bonds at the time. Provided, however, if the Series B Bonds are not issued as parity bonds (see the provisions of the preceding Section).. then the City covenants and agrees that so long as any of the Series B Bonds are outstanding and unpaid, it will not issue or attempt to issue any bonds ranking on a parity with the outstanding Series A Bonds and the previously issued Water - Works and Sewer Revenue Bonds (being the 1957 Bonds, the 1960 Bonds Page 22 and the 1961 Bonds, all described above),and the requirements for bonds to rank on a parity with the Series B Bonds shall be the same as set forth in said Section 15 of Resolution No. 2, with the reference to "outstanding bonds of this issue" to mean the Series B Bonds. Section 12. That in addition to the remedies conferred upon the bondholders by the said Resolutions and Ordinances author- ! izing the issuance of previous bonds,which are incorporated herein.by reference, the City Covenants that: (1) The bonds issued hereunder shall have the protection of the provisions of Section 13 of Act 132 of the Acts of Arkansas for the year 1933, as amended, and the City agrees to bring fore- closure suits for past due service charges. (2) The holder or holders of any of the bonds authorized and issued hereunder may enforce any remedies set forth in Act 131 of the Acts of Arkansas for the year 1933, as amended, Act 132 of the Acts of Arkansas for the year 1933, as amended, and Act 297 of the Acts of Arkansas for the year 1937, as amended. (3) There.shall be a statutory mortgage lien upon the improvements constructed from the proceeds of the bonds issued here- under, which shall exist in favor of the holders of the bonds, and each of them, and in favor of the holders of the coupons attached to the bonds, and each of then, and such extensions, betterments and improvements shall remain subject to such statutory mortgage lien until payment in full of the principal of and interest on the bonds, provided, however, that such statutory mortgage lien shall be inter- preted according to the decision of the Supreme Court of the State of Page 23 Arkansas in City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d 12. (4) No remedy referred to herein or in said Resolutions and Ordinances incorporated herein by reference is intended to be exclusive 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 Ordinance, by said outstanding Resolutions and Ordinances incorpora- ted herein by reference, by said Act 131 of 1933, as amended, by said Act 132 of 1933, as amended, by said Act 297 of 1937, as amended, or by any other applicable law. Section 13. That the Trustee of the bonds issued hereunder shall be Union Planters National Bank, Memphis, Tennessee. Section 14. That when the bonds of either Series A or Series B 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. The bonds of the particular series shall be held by the Trustee and delivered in accordance with the instructions of the City embodied in a Letter of Instructions signed by the Mayor, and the Trustee shall be entitled to rely upon said Letter of Instructions as constituting full author- ity for the action directed therein. It is contemplated, as stated above, that the Series A Bonds will be issued and delivered imme- diately and that the Series B Bonds may be issued anddelivered at a subsequent date. However, when delivered, the Trustee must receive the purchase price for the bonds to be delivered plus accrued Page 24 interest from the date of the bonds to the date of delivery, unless for any reason the delivery date of any of the bonds is after a coupon maturity date, in which event the coupon involved shall be clipped, and the accrued interest shall date from the date of the last coupon maturity date until the date of delivery. The Trustee, if so directed in the Letter of Instructions, shall deposit the accrued interest in the Bond Fund and shall remit the remainder of the proceeds to the City Treasurer, and the City Treasurer shall deposit said amount in a trust fund designated "Construction Fund" in the name of the City with a depository, desig- nated by the Mayor in said above referred to Letter of Instructions. This depository must hold membership in the Federal Deposit Insurance Corporation, and the moneys in the Construction Fund shall be con- tinuously secured by bonds or other direct or fully guaranteed obliga- tions of the United States of America. The moneys in the Construction Fund shall be disbursed solely in payment of the cost of the construction of the herein authorized extensions, betterments and improvements to the System, including engineering, legal and other necessary expenses incidental to the construction and to the issuance of the bonds. For each disbursement, there shall be prepared a requisition signed by the City Treasurer and one other person designated by the City Council stating in respect of each such payment the name of the person, firm or corporation to whom payment is due, the amount to be paid, and the purpose of general classifications for which the obligation to be paid was incurred; and in the case of all construction ex- pense over which the Consulting Engineer shall exercise supervision Page 25 (which shall include all expenses except engineering fees, legal fees and expenses pertaining to the issuance of the bonds), said requisition shall be accompanied by a certificate signed by the Consulting Engineer certifying his approval thereof. One copy of said requisition with accompanying certificate, if any, shall be filed with the depository with which the Construction Fund is deposited, one copy shall be filed with the managing. officer of the System, and one copy shall be filed with the City Treasurer. Upon receipt of each requisition the depository shall issue its check upon the Construction Fund payable to the person, firm or corporation designated in the requisition. When the construction of the improvements shall have been completed, this fact shall beevidenced 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 the managing officer of the System, which certificate shall state the date of such com- pletion and shall state that all obligations which are payable from the Construction Fund have been discharged. 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 City Treasurer and the other person designated by the City, and any such remaining balance may be used by the City for the purpose of calling bonds of this issue for payment prior to maturity, or may be transferred to the Waterworks and Sewer Revenue Fund, the Waterworks and Sewer Operation and Main- tenance Fund, the Waterworks and Sewer Revenue Bond Fund, or the Waterworks and Sewer Depreciation Fund, as the City may at the time determine. Page 26 Section 15. That the Mayor is hereby directed to publish for one insertion in News - Progress, which is hereby found and declared to be a newspaper having a general circulation in the City of Jacksonville, Arkansas, this ordinance, to which shall be attached a notice signed by him in substantially the following form: Page 27 N O T I C E Notice is hereby given that the City Council of the City of Jacksonville, Arkansas has adopted the ordinance hereinafter set out; that the City contemplates the issuance of the Waterworks and Sewer Revenue Bonds described in the ordinance; that any person interested may appear before the Council on the' of , , 1964, at (r: ;• o'clock 1 at the usual meeting place of the Council in Jacksonville, Arkansas, and present protests. At such hearing all objec- tions and suggestions will be heard, and the Council will take such action as is deemed proper in the premises. Dated this I `` ( day of, � .� , 1964. l // y ( <-71 aa aiss. May r Page 28 Section 16. 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 authorized by this Ordinance shall be issued and delivered. Section 17. That if any provision of this Ordinance shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of the ordinance. Section 18. That all resolutions and ordinances, or parts thereof, in conflict herewith are hereby repealed to the extent of such conflict. Section 19. That it is hereby ascertained and declared that the lack of adequate Waterworks and Sewer facilities for the City of Jacksonville greatly endangers the life, health, welfare and property of the inhabitants thereof, and that the needed ex- tensions, betterments and improvements can be constructed 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: .. // , 1964. APPROVED: / / • i Ma•or ATTEST: Ci • Clerk (SEAL)