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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
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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
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